Protests and Post Summary Adjustments

Columbus Importers & Brokers Association Meeting

February 6, 2008

2Presenter’s Name June 17, 2003

Post Summary Adjustments

Became effective September 30, 2007

Replaced the Supplemental Information Letter (SIL) as the sole means of amending entry summaries prior to liquidation.

The elimination of the SIL procedure is in accordance with the general notice document published in the Federal Register on November 28, 2000.

3Presenter’s Name June 17, 2003

Post Summary Adjustments

THREE CHANGES TO THE PSA TEST PROGRAM:

The elimination of the supplemental information letter.

All PSAs must be submitted at least 20 working days before the scheduled liquidation date.

The PSA test program will be extended for another year.

4Presenter’s Name June 17, 2003

Post Summary Adjustments SINGLE PSAs

Once again, must be submitted at least 20 days prior to the scheduled liquidation date of the entry summary.

Single PSAs submitted after the 20th day will be marked untimely and rejected back to the filer.

The PSA coversheet contains two changes

1. The non-revenue SIL box has been removed

2. A liquidation date box has been added

Filer must provide scheduled liquidation date.

Only one entry summary may be submitted with each coversheet.

5Presenter’s Name June 17, 2003

POST ENTRY AMENDMENT (PEA) TEST PROGRAM

WHERE’D THE NON_REVENUE SIL BOX GO?

LIQ DATE REQUIRED

6Presenter’s Name June 17, 2003

Post Summary Adjustments All other aspects of the PSA process, including “Reason

Codes”, remains the same as outlined in the memorandum “Post Entry Amendment Test Modification”, dated July 1, 2003.

Informal entries cannot be processed under the PEA program.

Entry deletion and cancellation requests cannot be submitted using a PSA.

Ensure the coversheet is filled out correctly. An error on the coversheet will result in disagreeing with your PEA.

If you are submitting a PEA to inform CBP that a line on a standard consumption entry should have been subject to AD/CVD, do not ask to be billed. Submit the check with the PSA.

7Presenter’s Name June 17, 2003

Post Summary Adjustments

QUARTERLY TRACKING REPORTING ONLY FOR: Non-revenue PSAs

PSAs with a bill or refund under $20.00 and a value below $10,000

Submitted on a spreadsheet containing the same elements that are on the PSA coversheet, with an additional element indicating the quarter the error was discovered.

Report must be submitted fifteen calendar days from the last day of the quarter.

Submit the spreadsheet in electronic format when possible – disk or via email

8Presenter’s Name June 17, 2003

Post Summary Adjustments

TECHNICAL CORRECTION TO BE PUBLISHED IN THE FEDERAL REGESTER

To eliminate the provision in the Federal Register that states, “PSAs that are submitted timely but are not unset or processed by the scheduled liquidation date may be treated as protests under 19 USC 1514.”

CBP may reliquidate the entry under19 USC 1501 within 90 days of the original liquidation but the submissions at issues are not to be treated as protests.

9Presenter’s Name June 17, 2003

Changes to Protests/Petitions

December 2004 – protest law was changed Elimination of 520(c)s

Extension of period to file a 514 to 180 days

Aspects that did not change: Can only file one protest for the same issue

Cannot use the 180 day period to submit additional claims for the same issue – or use that time to amend a protest after a decision was issued on the original protest

10Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments

THE SCENARIO: A PSA is filed.

The remarks section of the PEA reads: Per importer the classification for line 1 should be 7318.15.4000/Free.

The invoice states: P/N MS13452, Screws

The HTS number on the original 7501 is 7318.12.0000/12.5%

The substantiation? Nothing but the remarks section.

Remedy? Disagree, no substantiation for claim!

11Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments

WHAT WAS NEEDED? A sample (it doesn’t get any better than that)

A schematic drawing

A photograph

A picture from the importer’s web site

The size

How’s it used?

Detailed description

12Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments

SCENARIO: A 514 Protest is filed

The CF-19 states: The value of line 1 was incorrect as the rater keyed in the wrong invoice. The correct value is $28,112, not $54,328 as stated on the original 7501

The substantiation? Two invoices, both with the same invoice number, date, companies…everything is the same on the invoices except the shipment value

Will CBP approve your protest with just a corrected invoice? No. Denied, no substantiation

13Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments

WHAT WAS NEEDED? A copy of the wire transfer

A copy of the bank draft

A copy of the cancelled check

Something that shows the amount of money paid to the seller from the buyer

14Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments SCENARIO:

A 520(d) NAFTA claim is filed.

The letter states: “The merchandise on line 1 is originating from Canada and is therefore eligible for NAFTA. In addition, we are requesting a classification change from 8445.11.0000/free to 8445.19.0040, as the imported item is a cotton gin, not a carding machine. We are requesting a refund of MPF in the amount of $480.00”.

The substantiation? A NAFTA Certificate of Origin stating, “see attachment.” The attachment contains over 50 different tariff numbers, including the newly requested number. The original HTS number is not part of the Certificate of Origin. In addition, there’s an invoice that states: 5 (five) Textile Preparation Machines.

Will I approve your NAFTA Claim? No. Denied, no substantiation.

15Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments WHAT WAS NEEDED?

Any information to substantiate the change in classification.

A sample would be nice in most cases, but unlikely in this situation (after all, it’s a machine)

A detailed photograph and/or a picture from the importer’s web site, along with information on how the machine operates.

16Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments

• Imagine you are the person making the decision whether to approve, deny, agree or disagree with the petition.

• Then, ask yourself, “Is the information I am providing to CBP to validate the claim adequate?”

17Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments

Check CBP rulings prior to submitting the petition. The item in question may truly be misclassified, but the revised HTS number you requested may be incorrect. Providing a ruling with the petition will help to speed up the process!

Reasonable Care

18Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments

When a protest is denied, any samples provided will be held by CBP until the expiration of the 180 day period, regardless of the fact that the protestant requested their immediate return. If the protestant does request the return of the samples, CBP will return the samples after the expiration of the 180 days.

19Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments

19 CFR 141.89- Additional information for certain classes of merchandise Requesting classification changes of certain commodities may

require additional information:

metals, textile materials and items of textile material including wearing apparel, bearings, chemicals, footwear, watches, printed matter, etc.

*Failure to provide required information will result in denial of the claim.

20Presenter’s Name June 17, 2003

Substantiation for Protests, 520(d)s and Post Summary Adjustments

If at all possible, please provide a contact phone number somewhere in the petition package. If additional information is needed to approve your claim, a phone call to you is the quickest remedy.

If you have questions, contact the Import Specialist Team who is responsible for the commodity or you can contact Entry at 440-891-3833.