| Title: | PROPER FREIGHT CHARGES REQUIRED AT E/S |
|---|---|
| Date: | 1999-08-17 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : SHARI MCCANN
SUBJECT : PROPER FREIGHT CHARGES REQUIRED AT ENTRY SUMMARY
DATE : 08/17/1999
AUGUST 12, 1999
CATEGORY: ENT FO:TP:CC:SM DL
TO : ASSISTANT PORT DIRECTORS, TRADE OPERATIONS
ACCOUNT MANAGERS
FROM : DIRECTOR
TRADE PROGRAMS
CC : STC DIRECTORS, DIRECTORS OF FIELD OPERATIONS, PORT
DIRECTORS
PASS
TO : IMPORT SPECIALISTS, ENTRY PERSONNEL, AUDITORS,
IMPORTERS, BROKERS, OTHER INTERESTED PARTIES
RE : PROPER FREIGHT CHARGES REQUIRED AT ENTRY SUMMARY;
OCEAN SHIPPING REFORM ACT
THIS MESSAGE IS TO ADVISE CUSTOMS OFFICERS AND OTHER
INTERESTED PARTIES THAT WHERE FREIGHT CHARGES ARE REQUIRED
TO BE REPORTED TO CUSTOMS ON ENTRY SUMMARIES, ACCURATE AND
TIMELY INFORMATION IS REQUIRED. THE OCEAN SHIPPING REFORM
ACT DOES NOT CHANGE THESE REQUIREMENTS. OTHER METHODS FOR
COLLECTING THE FREIGHT DATA, INCLUDING THE RECONCILIATION
PROTOTYPE, HAVE BEEN SUGGESTED, BUT ARE NOT TO BE USED FOR
THIS PURPOSE.
THE OCEAN SHIPPING REFORM ACT (OSRA) BECAME EFFECTIVE ON MAY
1, 1999. ONE PROVISION OF OSRA IS THE CONFIDENTIAL
TREATMENT OF FREIGHT RATES THAT CAN NOW BE FREELY NEGOTIATED
BETWEEN SHIPPERS AND SHIPPING LINES.
THERE NOW EXISTS THE POTENTIAL FOR CONFLICT BETWEEN
CONFIDENTIALITY AND THE REPORTING REQUIREMENTS OF CUSTOMS
AND CENSUS. THIS IS PARTICULARLY TRUE WHEN CHARGES ARE
DECLARED THROUGH A THIRD PARTY (SUCH AS A CUSTOMHOUSE
BROKER) WHO MAY HAVE INTERESTS IN THE MATTER, AS A CUSTOMER
OR COMPETITOR OF THE SHIPPING LINE.
THE CURRENT REPORTING REQUIREMENTS DO NOT ANTICIPATE THE
CHANGES BROUGHT ABOUT BY OSRA, BUT THE REQUIREMENTS DO EXIST
NONETHELESS.
THE STATISTICS COLLECTED BY CUSTOMS AND COMPILED AND
DISSEMINATED BY CENSUS HAVE A VARIETY OF USERS. THE BUREAU
OF ECONOMIC ANALYSIS (BEA) USES DATA FROM INTERNATIONAL
TRANSACTIONS TO PREPARE ITS WIDELY PUBLISHED AND CLOSELY
SCRUTINIZED ESTIMATES OF THE NATION'S INTERNATIONAL TRADE
ACCOUNTS, WHICH IN TURN FEED DIRECTLY INTO BEA'S ESTIMATES
OF THE U.S. GROSS DOMESTIC PRODUCT (GDP). THE DATA ARE ALSO
USED BY A MYRIAD OF OTHER PUBLIC AND PRIVATE CONCERNS.
UNDER 13 U.S.C. 301, THE DEPARTMENT OF COMMERCE IS REQUIRED
TO COMPILE AND PUBLISH DATA ON IMPORT CHARGES. UNDER
SECTION 303, THE DEPARTMENT OF TREASURY IS CHARGED WITH
COLLECTING THE INFORMATION REQUIRED BY THE DEPARTMENT OF
COMMERCE IN PREPARING OUR NATION'S TRADE STATISTICS. WHILE
THERE MAY BE A POTENTIAL CONFLICT BETWEEN THIS LAW AND OSRA,
CUSTOMS CANNOT IGNORE THE RESPONSIBILITIES SPECIFICALLY
PROVIDED IN SECTION 303.
SOME IN THE TRADE COMMUNITY HAVE SUGGESTED ALTERNATIVE
METHODS FOR THE RELEVANT DATA TO BE GIVEN TO CUSTOMS. MANY
OF THESE SUGGESTED METHODS RELY ON MANUAL PROCESSING, WHICH
IS IMPRACTICAL DUE TO THE VOLUME OF ACTIVITY INVOLVED.
MANUAL PROCESSING IS ALSO INCOMPATIBLE WITH THE AUTOMATED
ENVIRONMENT IN WHICH CUSTOMS AND CENSUS OPERATE, AND WOULD
DELAY THE COLLECTION OF TIME-SENSITIVE STATISTICS.
THE ACS RECONCILIATION PROTOTYPE HAS ALSO BEEN SUGGESTED AS
A POSSIBLE SOLUTION TO THE PROBLEM. HOWEVER, RECONCILIATION
AS PROVIDED FOR BY THE CUSTOMS MODERNIZATION ACT IS ONLY
ALLOWED FOR INFORMATION THAT IS UNDETERMINABLE AT THE TIME
OF ENTRY SUMMARY, WHICH IS NOT THE CASE WITH THE FREIGHT
RATES WE ARE DISCUSSING. MOREOVER, AS THE RECONCILIATION
CONCEPT HAS BEGUN TO EVOLVE AWAY FROM PER-ENTRY PROCESSING
AND TOWARD AN ACCOUNT-BASED APPROACH, THE STRUCTURE OF THE
PROTOTYPE WOULD NOT SUPPORT THE COLLECTION OF FREIGHT RATE
DATA, WHICH IS REQUIRED AT THE ENTRY SUMMARY LINE LEVEL.
WITHIN THE CONSTRAINTS OF CURRENT LAW AND AUTOMATED SYSTEM
LIMITATIONS, CUSTOMS HAS NO CHOICE BUT TO REQUIRE ACCURATE
DATA SUCH AS FREIGHT CHARGES AT THE TIME THE ENTRY SUMMARY
IS FILED, AND TO ASSIST THE BUREAU OF CENSUS IN ENSURING
THAT THE DATA PROVIDED ARE ACCURATE.
WE BELIEVE THAT THE ISSUES HERE MAY BE LARGER IN SCOPE THAN
THIS SPECIFIC REPORTING REQUIREMENT CONFLICT. DEREGULATION
HAS OPENED THIS PARTICULAR ISSUE, AND WHILE THE INDUSTRY IN
GENERAL WILL BENEFIT FROM DEREGULATION, IT CHANGES THE
WORKING ENVIRONMENT IN WHICH THE INDUSTRY FUNCTIONS. THIS
IS ESPECIALLY TRUE OF THE SPECIFIC ROLES AND RELATIONSHIPS
OF DIFFERENT PARTIES IN THE INDUSTRY. THIS ISSUE, AS
OTHERS, MAY BE AN INDUSTRY ISSUE BEST ADDRESSED BY AN
INDUSTRY SOLUTION.
QUESTIONS REGARDING THIS MEMO, OR THE ACS RECONCILIATION
PROTOTYPE, MAY BE DIRECTED TO DON LUTHER AT (202) 927-0915.
ELIZABETH G. DURANT