| Title: | INTEREST CALCULATION FOR RECON |
|---|---|
| Date: | 1998-09-25 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : MARIA NAVARRETE
SUBJECT : INTEREST CALCULATION FOR RECON
CITE : 09/24/1998
TO: ALL BROKERS
FROM: MARIA NAVARRETE
CATEGORY: ENT
TO: TRADE COMPLIANCE PROCESS OWNERS
ACCOUNT MANAGERS
FROM: DIRECTOR
TRADE COMPLIANCE
CC: STC DIRECTORS, CMC DIRECTORS, PORT DIRECTORS
PASS
TO: IMPORT SPECIALISTS, ENTRY PERSONNEL, AUDITORS
IMPORTERS, BROKERS, OTHER INTERESTED PARTIES
RE: INTEREST CALCULATION FOR RECONCILIATION
IN THE FEDERAL REGISTER OF AUGUST 18, 1998, CUSTOMS PUBLISHED
AN INFORMATIONAL NOTICE ON THE ACS RECONCILIATION PROTOTYPE,
WHICH STARTS ON OCTOBER 1, 1998.
ONE OF THE ISSUES ADDRESSED WAS INTEREST APPLIED TO MONETARY
CHANGES REPORTED ON A RECONCILIATION. CURRENT LAW REQUIRES
THAT INTEREST BE CALCULATED IN ACCORDANCE WITH CHANGES MADE
TO INDIVIDUAL ENTRY SUMMARIES.
CUSTOMS SOUGHT A STATUTORY AMENDMENT TO 19 U.S.C. 1505 TO
ALLOW ALTERNATE METHODS OF INTEREST CALCULATION, SUCH AS
USING THE MID-POINT DATE OF A RECONCILIATION PERIOD FOR
THE ENTIRE ADJUSTMENT.
A STATUTORY CHANGE THAT WOULD HAVE PERMITTED THIS OPTION WAS
REJECTED BY THE HOUSE WAYS AND MEANS AND SENATE FINANCE
COMMITTEES. THEREFORE, AS STATED IN THE FEDERAL REGISTER
NOTICE, CUSTOMS MUST NOW REQUIRE IMPORTERS TO DETERMINE THE
APPROPRIATE AMOUNT OF INTEREST DUE FOR EACH RECONCILED ENTRY
SUMMARY, AND REPORT SUCH ADJUSTMENT FOR EACH SUMMARY,
EITHER VIA THE ASSOCIATION FILE FOR ENTRY-BY-ENTRY
RECONCILIATIONS OR AS A TOTAL AMOUNT OF INTEREST DUE
FOR AGGREGATE RECONCILIATIONS.
CUSTOMS RECOGNIZES THAT THIS REQUIREMENT UNDERMINES SOME OF
THE BENEFITS OF THE AGGREGATE RECONCILIATION OPTION. THIS
IS NOT THE OUTCOME THAT CUSTOMS DESIRED. UNLESS THE LAW
IS CHANGED, HOWEVER, THERE IS NO LEGAL ALTERNATIVE.
IF STATUTORY AMENDMENT OCCURS TO ALLOW MID-POINT INTEREST
CALCULATION FOR RECONCILIATION, CUSTOMS WOULD CHANGE THE
RECONCILIATION FILING FORMAT TO THE SIMPLER MID-POINT
METHOD, APPLICABLE FOR ANY RECONCILIATION FILED AFTER
THE LEGISLATIVE CHANGE WERE TO TAKE EFFECT.
QUESTIONS REGARDING THIS POLICY, OR RECONCILIATION IN
GENERAL, MAY BE DIRECTED TO DON LUTHER AT (202) 927-0915,
OR ERIC BATT AT (202) 927-1106.
PHILIP METZGER