| Title: | RECONCILIATION - POLICY UPDATE |
|---|---|
| Date: | 1999-01-11 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : DON LUTHER
SUBJECT : RECONCILIATION - POLICY UPDATE
DATE : 01/04/1999
DECEMBER 28, 1998
FO:TC:I:CC DL
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 : CLARIFICATION OF ACS RECONCILIATION PROTOTYPE POLICIES
THIS MESSAGE IS TO ADDRESS SOME MISCONCEPTIONS ABOUT THE ACS
RECONCILIATION PROTOTYPE.
THE ACS RECONCILIATION PROTOTYPE STARTED ON OCTOBER 1, 1998. A
GOAL OF THIS PROTOTYPE IS TO PROVIDE A LEGAL, FISCALLY SOUND
MECHANISM FOR MAKING CERTAIN POST-SUMMARY ADJUSTMENTS TO ENTRIES.
GENERAL INFORMATION ON THIS PROTOTYPE WAS PUT OUT IN MEMOS FROM
THIS OFFICE IN MAY, 1998 (GENERAL INTRODUCTION), AND SEPTEMBER,
1998 (GRANDFATHER CLAUSE POLICY). THESE MEMOS AND OTHER
INFORMATION ARE AVAILABLE AT THE RECONCILIATION PAGE OF THE
CUSTOMS INTERNET SITE.
CUSTOMS MUST END PRACTICES SUCH AS BLOCK LIQUIDATIONS (E.G.
APPLYING ADJUSTMENTS THAT PERTAIN TO MANY ENTRIES AGAINST A
SINGLE ENTRY), THIS IS THE BASIS FOR THE POSITION THAT THE ACS
RECONCILIATION PROTOTYPE WILL BE THE EXCLUSIVE MEANS TO MAKE
VALUE ADJUSTMENTS TO MANY ENTRY SUMMARIES WITH ONE SUBMISSION.
AS THIS IS A NEW AND COMPLEX PROGRAM, VARIOUS MISCONCEPTIONS HAVE
ARISEN ABOUT WHAT SHOULD AND SHOULDN'T BE SUBJECT TO
RECONCILIATION. BELOW ARE SOME STATEMENTS WHICH SHOULD HELP TO
CLEAR THINGS UP.
RECONCILIATION IS NOT MANDATORY. IMPORTERS MAY STILL MAKE
PRIOR DISCLOSURES, FILE PROTESTS, INDIVIDUAL CLAIMS UNDER
SECTION 520, REQUEST WITHHOLDING OF LIQUIDATION, AND MAKE
CHANGES TO INDIVIDUAL ENTRY SUMMARIES ON A PER-ENTRY BASIS.
THE EXCLUSIVE MEANS POLICY ONLY APPLIES TO VALUE & 9802
ISSUES, NOT TO CLASSIFICATION OR NAFTA ELIGIBILITY.
RECONCILIATION DOES NOT CHANGE ANY OF THE EXISTING VALUE
LAWS. IT'S ONLY A NEW MECHANISM TO REPORT CHANGES AFTER
SUMMARY FILING.
IF AT THE TIME OF FILING, THE IMPORTER HAS A SOLID, LEGALLY
DETERMINED VALUE WHICH THEY ARE WILLING TO STAND BY, THE
ENTRY DOES NOT NEED TO BE FLAGGED FOR RECONCILIATION. THIS
IS TRUE WHETHER OR NOT THERE IS A RELATED PARTY TRANSACTION,
OR PRICES BASED ON OTHER THAN 402(B) APPRAISEMENT.
THE MERE PRESENCE OF ASSISTS DOES NOT MAKE RECONCILIATION
REQUIRED. EXISTING OPTIONS TO DECLARE ASSISTS PRO RATA OR
ON THE FIRST ENTRY ARE STILL AVAILABLE, SUBJECT TO ALL
EXISTING LAWS, REGULATIONS, AND RULINGS. OF COURSE, IF THE
EXACT VALUE OF THE ASSIST IS NOT KNOWN, RECONCILIATION IS A
PERFECT AVENUE TO SHOW REASONABLE CARE AND REPORT THE ASSIST
AS ITS VALUE BECOMES KNOWN.
AS RECONCILIATION IS A MOD ACT INITIATIVE, IT IS ONLY
AVAILABLE TO ABI ENTRIES.
CORRECTIONS MADE TO ENTRY SUMMARIES OUTSIDE OF THE ACS
RECONCILIATION PROTOTYPE MUST BE MADE ON A PER-ENTRY BASIS,
WITH SUPPORTING DATA PROVIDED AT THE ENTRY SUMMARY LINE
LEVEL.
CUSTOMS PORT DIRECTORS MAY REQUIRE SUCH SUBMISSIONS OF
CORRECTIVE DATA AT SIX MONTHS, IN ACCORDANCE WITH CUSTOMS
REGULATIONS.
ENTRIES FLAGGED FOR RECONCILIATION MUST BE RECONCILED EVEN
IF THERE IS NO CHANGE IN DUTIES. (FOR EXAMPLE, A CHANGE IN
THE MERCHANDISE VALUE CHANGES ON A GROUP OF DUTY-FREE
ENTRIES MUST STILL BE RECONCILED.)
RECONCILIATION IS A NATIONWIDE PROTOTYPE. ALTHOUGH THE TYPE
'09' RECONCILIATION ENTRIES ARE FILED AND PROCESSED AT
CERTAIN PORTS, THE ENTRIES THEY COVER MAY BE FILED ANYWHERE
IN THE U.S. INDIVIDUAL PORTS MAY NOT OPT OUT OF THE
PROTOTYPE, AND ENTRIES FILED THERE ARE NOT EXEMPT FROM THE
PROCESS.
QUESTIONS REGARDING THE ACS RECONCILIATION PROTOTYPE MAY BE
DIRECTED TO DON LUTHER AT (202) 927-0915, OR SHARI MCCANN AT
(202) 927-1106.
/S/
PHILIP METZGER