CSMS Message: 98-000563

TO : ALL ABI BROKERS.

FROM : LYNN RODRIGUEZ

SUBJECT : ENT- INFORMAL ENTRIES

DATE : 07/08/1998

TO : ALL PORT DIRECTORS
ALL CMC DIRECTORS
FROM : DIRECTOR
TRADE COMPLIANCE
PASS TO: TRADE COMPLIANCE PROCESS OWNERS, CARGO INSPECTORS,
ENTRY SPECIALISTS, ENTRY OFFICERS, NATIONAL AND FIELD IMPORT
SPECIALISTS, AND OTHER INTERESTED PARTIES
SUBJECT: BOND REQUIREMENTS FOR INFORMAL ENTRIES (REVISED)
BACKGROUND:
THE FINAL RULE INCREASING THE MAXIMUM AMOUNT FOR INFORMAL ENTRIES
TO $2,000 WAS PUBLISHED IN THE FEDERAL REGISTER ON APRIL 3, 1998
(TD 98-28). THE EFFECTIVE DATE FOR THE FINAL RULE WILL BE
JULY 2, 1998.
SEVERAL OF THE PUBLIC COMMENTS SUBMITTED AS A RESULT OF THE
NOTICE OF PROPOSED RULEMAKING EXPRESSED CONCERN OVER THE FACT
THAT THE INCREASE IN THE INFORMAL ENTRY LIMIT WOULD LEAD TO
PRODUCTS REGULATED BY OTHER AGENCIES, FOR EXAMPLE, FOOD AND
MEDICAL DEVICES REGULATED BY THE FOOD AND DRUG ADMINISTRATION
(FDA), BEING MORE READILY ADMITTED IF THEY ARE, IN FACT, UNSAFE.
THE COMMENTERS FURTHER EXPRESSED THAT AN INCREASE IN THE INFORMAL
ENTRY LIMIT WOULD ALLOW MORE IMPORTATIONS TO BE MADE WITHOUT A
BOND BEING FILED, THEREBY MAKING IT MORE DIFFICULT FOR CUSTOMS TO
PROTECT THE REVENUE OR TO DEMAND REDELIVERY, ESPECIALLY IN THE
CASE OF UNSAFE FOOD AND MEDICAL DEVICES.
IN RESPONSE TO THE CONCERNS EXPRESSED, THE FINAL RULE INDICATES
THAT THERE ARE SAFEGUARDS IN PLACE IN THAT CUSTOMS CAN REQUIRE A
FORMAL ENTRY, REGARDLESS OF VALUE. THIS IS PROVIDED FOR IN
19 CFR 143.22. IN ADDITION, CUSTOMS HAS DETERMINED THAT MOST OF
THE IMPORTATIONS INVOLVING FDA-CONTROLLED GOODS ARE COMMERCIAL
TRANSACTIONS WHICH ARE HANDLED THROUGH THE AUTOMATED BROKER
INTERFACE (ABI) AND ARE THUS COVERED BY A CUSTOMS BOND EVEN IF
INFORMALLY ENTERED.
ACTION:
EFFECTIVE DATE
THE $2,000 MAXIMUM LIMIT AMOUNT FOR INFORMAL ENTRIES WILL BE
1EFFECTIVE FOR MERCHANDISE ENTERED OR RELEASED ON OR AFTER JULY 2, 1998.
FDA RESTRICTED MERCHANDISE
ALL CUSTOMS OFFICES SHOULD CONTINUE TO COORDINATE WITH LOCAL FDA
OFFICIALS TO ENSURE THAT:
1) UNSAFE MERCHANDISE IS NOT ADMITTED, AND
2) FORMAL ENTRIES ARE REQUIRED FOR THOSE ENTRIES WHERE FDA
SAMPLING OR OTHER RESTRICTIONS APPLY.
BOND REQUIREMENTS
ADDITIONALLY, ALL CUSTOMS OFFICES WILL CONTINUE TO ENSURE THAT:
1. AS PER 19 CFR 142.4 AND 19 CFR 142.21, MERCHANDISE SHALL NOT
BE RELEASED FROM CUSTOMS CUSTODY AT THE TIME CUSTOMS
RECEIVES THE ENTRY DOCUMENTATION OR THE ENTRY SUMMARY
DOCUMENTATION WHICH SERVES AS BOTH THE ENTRY AND THE ENTRY
SUMMARY, UNLESS A SINGLE ENTRY OR CONTINUOUS BOND IS ON FILE.
THEREFORE, A BOND WILL BE REQUIRED FOR ALL INFORMAL
ENTRIES THAT ARE RELEASED VIA CF 3461 AND DUTIES ARE
SUBSEQUENTLY PAID TEN WORKING DAYS AFTER RELEASE AT THE TIME OF
ENTRY SUMMARY (CF 7501) FILING. IF A CF 3461 AND CF 7501
ARE PRESENTED SIMULTANEOUSLY IN ORDER TO EFFECT RELEASE OF
AN INFORMAL ENTRY, AND ALL DUTIES, TAXES AND FEES ARE PAID
PRIOR TO RELEASE OF THE MERCHANDISE (I.E., LIVE ENTRY), A
BOND WILL NOT BE REQUIRED.
2. UNLESS STATEMENT PROCESSING AND ACH ARE USED PURSUANT TO
19 CFR 24.25, THE ESTIMATED DUTIES AND TAXES, IF ANY, MUST
BE DEPOSITED AT THE TIME THE INFORMAL ENTRY IS PRESENTED AND
ACCEPTED BY A CUSTOMS OFFICER (19 CFR 143.28). THEREFORE, IF AN
INFORMAL ENTRY IS RELEASED PRIOR TO PAYMENT OF DUTIES, TAXES AND
FEES, THE ONLY METHOD OF PAYMENT ALLOWABLE WILL BE ACH (AUTOMATED
CLEARINGHOUSE).
3. A CONTINUOUS OR SINGLE ENTRY BOND WILL NOT BE REQUIRED FOR
INFORMAL ENTRIES WHEN:
A. A CUSTOMS OFFICER HAS DETERMINED THAT THE MERCHANDISE
IS ELIGIBLE FOR INFORMAL ENTRY (19 CFR 143.21), AND
B. THE PROPER DOCUMENTATION HAS BEEN FILED AS PER
19 CFR 143.23, AND
C. PAYMENT OF DUTIES, TAXES AND FEES IS MADE PRIOR TO THE
RELEASE OF THE MERCHANDISE.
QUESTIONS REGARDING THIS NOTICE CAN BE ADDRESSED TO BYRON KISSANE
AT (202) 927-2148.
1 /S/ THOMAS P. BANNER, FOR