CBP addresses effects of hurricanes | KPMG | US

CBP addresses effects of hurricanes on U.S. trade entries

CBP addresses effects of hurricanes

U.S. Customs and Border Protection (CBP) today announced that it is continuing to monitor Hurricane Irma as well as the effects on trade caused by Hurricane Harvey.

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The CBP release—CSMS# 17-000543 (September 7, 2017)—provides that with respect to a weekly estimated entry that is filed after the fact, due to system downtime caused by the hurricanes and when an error message is received about an elected entry date being greater than seven days from the filing date, “…it may be best to adjust the elected date to match the current filing date and notify the port about the change as required.” The release provides that trade partners and CBP need to note in their records that this occurred so as to avoid post-audit problems at a later time.

Also, according to the release, CBP is to exercise due diligence when issuing liquidated damage claims because of a late filing of an entry summary during these hurricanes and related events. Filers are directed to notify CBP of any issues to avoid additional work and expense.  

Background

A related CBP release—CSMS# 17-000540 (September 6, 2017)—explains that CBP recognized that the situation created by Hurricane Irma may cause many ocean vessels to divert from their intended port of unlading to other port locations for discharge purposes. To provide for “smooth processing of bills and associated status notifications” in the new port of unlading, CBP reminded the carriers that they need to amend the manifest to reflect the new port of unlading. As such, the automated terminals at the new port of discharge will receive the appropriate notifications. 

Entries that have already been filed will not usually need to be amended. The following scenarios have been identified as most likely diversion scenarios:

  • Scenario 1: At the time of the diversion, both the entry and summary have already been filed at the original port—nothing needs to be done with either the entry or summary.
  • Scenario 2: At the time of the diversion, a certified summary had already been filed at the original port—nothing needs to be done with the certified summary.
  • Scenario 3: At the time of the diversion, the entry had already been filed at the original port, but the summary had not been filed. In this situation, it is recommended to file the summary using the same entry port as the entry was filed.
  • Scenario 4: At the time of the diversion, neither the entry nor summary had been filed at the original port. In this scenario, both the entry and summary will be filed at the new (diverted) port. 
  • Scenario 5: In lieu of diversion to a domestic port, the cargo is offloaded at ports in Mexico or Canada for routing into the United States via rail or truck. In this scenario, manifests will need to be provided by border carriers in the appropriate systems; and original entries destined for original U.S. ports will need to canceled and refiled for the new land border port or an in-bond move will need to be requested to move the cargo to the port of entry.  

FDA prior notice filings

The CBP release also provides that because of port closures due to Hurricane Harvey and Hurricane Irma, the Food and Drug Administration (FDA) will be extending the expiration dates for stand-alone prior notice filings for shipments going to those ports subject to closure.

  • If the cargo is diverted to another U.S. port of unlading, there is no need for a new prior notice.
  • If the cargo diverts and discharges in a foreign country for transit to the United States, this will be considered a new shipment that requires a new prior notice. 

 

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich | +1 (312) 665-1022 | dzuvich@kpmg.com

Andrew Siciliano | +1 (631) 425-6057 | asiciliano@kpmg.com

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