CSMS Message: 99-000816

TO : ALL ABI BROKERS.

FROM : DON LUTHER

SUBJECT : RECONCILIATION DEADLINES

DATE : 09/22/1999

SEPTEMBER 21, 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

RE : RECONCILIATION PROTOTYPE: DEADLINES AND LIQUIDATED
DAMAGES

THIS MESSAGE SERVES TO REMIND ALL INTERESTED PARTIES OF THE
REQUIREMENT TO FILE RECONCILIATIONS TIMELY, AND THE LIQUIDATED
DAMAGES IMPLICATIONS OF NOT DOING SO.

THE ACS RECONCILIATION PROTOTYPE STARTED ON OCTOBER 1, 1998.
THE PROTOTYPE WORKS BY ALLOWING IMPORTERS TO FLAG CERTAIN ISSUES
ON ENTRY SUMMARIES AS OUTSTANDING, AND PROVIDE CORRECT
INFORMATION LATER ON A TYPE '09' RECONCILIATION.
RECONCILIATIONS ADDRESSING THE ISSUE OF NAFTA ELIGIBILITY ARE
REQUIRED WITHIN TWELVE MONTHS OF THE IMPORT DATE OF THE ENTRY
SUMMARY. RECONCILIATIONS ADDRESSING THE OTHER THREE ISSUES
(VALUE, 9802, AND CLASSIFICATION) ARE DUE WITHIN FIFTEEN MONTHS
OF ENTRY SUMMARY DATE.

FAILURE TO FILE RECONCILIATIONS TIMELY SUBJECTS THE IMPORTER TO
LIQUIDATED DAMAGES CLAIMS. THE FIRST RECONCILIATIONS ARE DUE
DURING THE MONTH OF OCTOBER, 1999. BECAUSE NO INFORMATION HAS
YET BEEN PUBLISHED ON LIQUIDATED DAMAGES AMOUNTS OR PROCEDURES,
CUSTOMS WILL NOT PURSUE LIQUIDATED DAMAGES FOR NON-FILING OR
LATE-FILING FOR RECONCILIATIONS DUE PRIOR TO JANUARY 1, 2000.
THE ONLY RECONCILIATIONS DUE DURING THIS TIME FRAME ARE FOR THE
ISSUE OF NAFTA ELIGIBILITY, WHICH, IF NOT RECONCILED, MEANS ONLY
THAT NO NAFTA CLAIM WILL BE MADE. THIS IS IN CONTRAST TO THE
OTHER RECONCILABLE ISSUES, WHICH TRULY REPRESENT INFORMATION
MISSING FROM THE ENTRY SUMMARY.

FLAGGED ENTRIES WITH DUE DATES ON OR AFTER JANUARY 1, 2000 WILL
BE SUBJECT TO LIQUIDATED DAMAGES CLAIMS IF NOT RECONCILED
TIMELY.

AFTER AN ENTRY SUMMARY'S NAFTA RECONCILIATION DUE DATE HAS
PASSED, NO CLAIM FOR NAFTA ELIGIBILITY MAY BE MADE, VIA
RECONCILIATION OR ANY OTHER MEANS.

IMPORTERS AND FILERS ARE REMINDED THAT NO DRAWBACK CLAIMS WILL
BE ACCEPTED AGAINST FLAGGED ENTRIES UNTIL THE FLAGGED ISSUES ARE
CLOSED OUT VIA A RECONCILIATION. RECONCILIATIONS FILED LATE
SOLELY TO CLOSE THE FLAGGED ISSUES AND ENABLE DRAWBACK WILL ONLY
BE ACCEPTED UP TO 90 DAYS AFTER THEIR DUE DATES.

A NEW FEDERAL REGISTER NOTICE WILL SOON BE PUBLISHED, DEFINING
THE PARAMETERS FOR LIQUIDATED DAMAGES CLAIMS RELATING TO THE ACS
RECONCILIATION PROTOTYPE. THIS NOTICE WILL INCLUDE SPECIFIC
DETAILS REGARDING DOLLAR AMOUNTS, PROCEDURES FOR MITIGATION, AND
THE LIKE. THE NOTICE MAY ALSO INCLUDE FURTHER CHANGES TO THE
PROTOTYPE THAT INCREASE FLEXIBILITY.

INTERESTED PARTIES MAY BE ASSURED THAT AFTER JANUARY 1, 2000,
ASSESSMENT OF LIQUIDATED DAMAGES WILL BE DONE, IN ACCORDANCE
WITH THE UPCOMING FEDERAL REGISTER NOTICE. THE LIQUIDATED
DAMAGES DESCRIBED HERE FOR LATE- AND NON- FILING OF
RECONCILIATIONS SHOULD NOT BE CONFUSED WITH PENALTY ACTIONS FOR
FRAUD OR MISCONDUCT THAT MAY BE ASSESSED AGAINST THE IMPORTER OR
BROKER, IF WARRANTED.

THIS MESSAGE SHOULD BE MADE AVAILABLE TO IMPORTERS, BROKERS, AND
OTHER INTERESTED PARTIES.

QUESTIONS ON THE POLICIES DESCRIBED HEREIN, OR RECONCILIATION IN
GENERAL, MAY BE DIRECTED TO DON LUTHER AT (202) 927-0915, OR
SHARI MCCANN AT (202) 927-1106. INFORMATION IS ALSO AVAILABLE
VIA THE CUSTOMS INTERNET WEB SITE FOR RECONCILIATION, AT:

WWW.CUSTOMS.GOV/RECON

/S/
ELIZABETH G. DURANT