| Title: | LINE RELEASE CHANGES |
|---|---|
| Date: | 1996-06-05 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : MICHAEL S ZZ-CRAIG
SUBJECT : LINE RELEASE CHANGES
DATE : 06/05/96
FO:TC:C:C MC
JUNE 4, 1996
TO : ALL CUSTOMS PORT DIRECTORS
ALL LINE RELEASE PARTICIPANTS
ALL ENTRY FILERS
FROM : DIRECTOR,
OFFICE OF TRADE COMPLIANCE
SUBJECT : IMMEDIATE CHANGE TO THE LINE RELEASE
APPLICATION PROCESS
THE MESSAGE IS TO NOTIFY THE TRADE COMMUNITY THAT CUSTOMS MUST
TAKE IMMEDIATE ACTION TO RECTIFY A PROBLEM WITH THE CURRENT LINE
RELEASE APPLICATION PROCESS. THESE CHANGES ARE BEING MADE PARTLY
TO RESPOND TO NEW REQUIREMENTS BEING IMMEDIATELY IMPLEMENTED AS
PART OF THE U.S.-CANADIAN SOFTWOOD LUMBER AGREEMENT OF 1996,
DATED MAY 29, 1996. HOWEVER, THIS TRANSITION PROCESS HAS
EXACERBATED A SITUATION WHICH WE CAN NO LONGER ALLOW TO EXIST.
MAJOR BACKLOGS ARE OCCURRING IN THE APPLICATION PROCESS WHEN
ENTRY FILERS ARE SUBMITTING LINE RELEASE APPLICATIONS ON A
SPECULATION BASIS. IT HAS BECOME A COMMON PRACTICE FOR ENTRY
FILERS TO APPLY FOR LINE RELEASE PRIVILEGES ON A BORDER-WIDE
BASIS ON THE PROSPECT OF OBTAINING AN IMPORTER'S BUSINESS.
FIRST, WE BELIEVE THAT THESE TYPES OF APPLICATIONS ARE NOT
CONSISTENT WITH "CUSTOMS BUSINESS" AS DEFINED IN 19 CFR 111.1,
SINCE THEY ARE BASED ON A SPECULATIVE, NOT ACTUAL BUSINESS
RELATIONSHIP BETWEEN THE ENTRY FILER AND THE IMPORTER. SINCE NO
BUSINESS RELATIONSHIP EXISTS, ACTUAL INVOICES ARE NOT AVAILABLE.
THESE APPLICATIONS ARE OFTEN SUBMITTED WITH PRO FORMA INVOICES.
SECONDLY, CUSTOMS PERFORMS AN EXTENSIVE BATTERY OF RESEARCH
QUERIES ON THESE APPLICATIONS TO VERIFY THE CORRECTNESS AND
APPROPRIATENESS OF THE COMMODITIES, SHIPPERS, AND IMPORTERS
BEFORE THE APPLICATION IS ISSUED A C4 CODE. CUSTOMS CANNOT
CONTINUE TO PROCESS LINE RELEASE APPLICATIONS BASED ON
SPECULATIVE RELATIONSHIPS, OR THE PROSPECT THAT SOME SHIPMENT MAY
BE IMPORTED AT SOME PORT, SOMETIME IN THE FUTURE. WE MUST
DEDICATE OUR RESOURCES TO PROCESSING LEGITIMATE REQUESTS FOR
SERVICES WHERE THERE IS A DEMONSTRATED RELATIONSHIP BETWEEN THE
IMPORTER AND THE ENTRY FILER.
EFFECTIVE JUNE 5, 1996, CUSOTMS WILL INSTITUTE THE FOLLOWING
CHANGES TO THE LINE RELEASE APPLICATION PROCESS TO ENSURE THAT WE
ARE DELIVERING THE BEST POSSIBLE SERVICE:
1) EACH NEW LINE RELEASE APPLICATION MUST BE ACCOMPANIED
BY A "REPRESENTATIVE SAMPLE OF AN ACTUAL COMMERCIAL
INVOICE" CONTAINING THE FULL NAME AND ADDRESS OF THE SHIPPER.
AS PER 19 CFR 142.42. IF THE APPLICATION IS FOR CANADIAN SOFTWOOD
LUMBER THE INVOICE MUST ALSO SHOW THE APPROPRIATE PROVINCIAL CODE FOR
THE PROVINCE OF MANUFACTURE.
2) APPLICATIONS WILL ONLY BE ACCEPTED FROM IMPORTERS, OR
THEIR AUTHORIZED AGENTS.
3) PRO FORMA INVOICES WILL NOT BE ACCEPTED.
THESE CHANGES WILL APPLY TO BOTH NORTHERN AND SOUTHERN BORDER
OPERATIONS.
WE APOLOGIZE FOR THE URGENCY OF THESE CHANGES. THE SUDDEN
RECEIPT OF THOUSANDS OF NEW APPLICATIONS FOR CANADIAN SOFTWOOD
LUMBER HAS NECESSITATED THAT WE MAKE THIS CHANGE. WE HOPE THAT
THESE CHANGES WILL HELP TO SPEED UP THE LINE RELEASE APPLICATION
PROCESS FOR THOSE LEGITIMATE TRANSACTIONS WHICH REALLY WARRANT
EVERYONE'S ATTENTION.
SHOULD YOU HAVE ANY QUESTIONS, PLEASE CONTACT YOUR LOCAL CUSTOMS
PORT DIRECTOR, TRADE COMPLIANCE OWNER OR THE OFFICE OF CARGO
CONTROL AT (202) 927-0510.