In the most current edition of the Customs Bulletin (Vol. 47, January 09, 2013, No. 3, pages 1 through 5 - CBP Decision 13-1), CBP published an important revision to its mitigation guidelines applicable to untimely petitions of liquidated damages ("LD") claims. The guideline revisions became effective on the date of publication. A brief FAQ document was also prepared, although it may be subject to modification at a later date.
The revisions do not affect the basic calculation of either gross liquidated damages assessments as specified in the Customs Regulations, standard/initial Option 1 calculations, or the calculation of mitigated amounts in circumstances where the petition for relief is filed timely. However, they do result in dramatic increases in mitigated amounts if petitions are filed untimely - if indeed the port FP&F Office involved agrees to accept an untimely petition at all. Furthermore, with certain more serious types of LD assessments, port FP&F authority to accept petitions more than 180 days late has been entirely withdrawn.
Significant as the increases are, they are less harsh than per an initial guideline change that was published (internally only) by CBP in June of 2011. As a result of the efforts of NCBFAA, the International Trade Surety Association, COAC, the Customs Surety Executive Committee, and other trade groups, a significant relaxation of demands in the instance of late petitions on late payment of estimated duties/late filing of 7501s was achieved. Nevertheless, even these types of claims will become noticeably more expensive to settle than in the past under the revised guidelines. Hence, it is more important than ever for customs brokers and importers to have safeguards in place in their procedures to ensure that petitions on LD are filed within the 60 day period specified in the Regulations.
Please note two other recent developments at CBP:
ISF Enforcement
For many months, CBP has been indicating to the international trade community that ISF enforcement via LD would not commence prior to publication of the ISF Final Rule in the Federal Register. However, during a December 7 NCBFAA ISF Subcommittee teleconference, CBP stated that commencement of ISF enforcement will not be dependent upon publication of the final rule. CBP does continue to maintain that a 30 day heads-up on enforcement will be published via CSMS. The date of actual final rule publication remains uncertain. It has appeared with a status of "Final Action" on each and every Unified Agenda of Federal Regulatory and Deregulatory Actions since the publication of the interim final rule on November 25, 2008.
Informal Entry Changes
As reported in many sources, effective January 7, the general value limit on informal entries was increased from $2,000 to $2,500. Also, certain obsolete restrictions to the use of informals were eliminated. So long as duties/taxes/fees are paid at time of release, no bond is required on informal entries.
Roanoke Trade is continuously active in advocating for the international and domestic trade community and finding solutions for our clients to work more effectively. If you have any questions regarding this notice, or any other related subject, please contact us via email or call 1-800-ROANOKE to speak with a service representative.
