CBP Proposes Rule to Make Remote Location Filing Permanent (Number of RLF Ports to Also Expand) (Part II - Final)

CBP states that RLF allows approved participants to electronically file entries from a location within the U.S. other than the port of arrival or the district designated in the entry for examination, to an RLF-operational CBP location.

This is Part II of a two-part series of BP summaries of this proposed rule and covers proposed Subpart E (RLF), which consists of 19 CFR 143.41 - 143.45, and a proposed amendment to 19 CFR 141.18. (See ITT's Online Archives or 03/30/07 news, 07033005, for Part I.)

Highlights of proposed subpart E on RLF and the proposed amendment to 19 CFR 141.18 include:

RLF Applicability

Proposed 19 CFR 143.41 would state that Subpart E sets forth the general requirements and procedures for RLF. In addition, RLF entries would remain subject to the documentation, document retention, and document retrieval requirements of 19 CFR, as well as the general entry requirements in 19 CFR Parts 141, 142 ,and 143. Proposed 143.41 would further provide that participation in the RLF system is voluntary and at the option of the filer.

Definitions Proposed for RLF and RLF Location, Etc.

Proposed 19 CFR 143.42 would set forth the following two definitions for purposes of proposed subpart E and provides that the definitions set forth in 19 CFR 143.32 also apply to proposed subpart E:

Remote Location Filing would be defined as an elective method of making entry by which a customs broker with a national permit electronically transmits all data information associated with an entry that CBP can process in a completely electronic data interchange system to a RLF-operational CBP location from a remote location other than where the goods are being entered. (Importers filing on their own behalf may file electronically in any port, subject to Automated Broker Interface (ABI) filing requirements.)

RLF-operational CBP location would mean a CBP location within the customs territory of the U.S. that is staffed with CBP personnel who have been trained in RLF procedures and who have operational experience with the Electronic Invoice Program (EIP).

Proposed Eligibility Requirements

Proposed 19 CFR 143.43 would set forth the eligibility criteria for participation in RLF. To be eligible for RLF, a licensed customs broker would need to:

be operational on: (a) the Automated Broker Interface (ABI, see 19 CFR part 143, subpart A), (b) the EIP prior to applying for RLF, and (c) the Automated Clearinghouse (ACH) (or any other CBP-approved method of electronic payment), for purposes of directing the electronic payment of duties, taxes and fees (see 19 CFR 24.25), 30 days before transmitting a RLF entry;

hold a valid national permit (see 19 CFR 111.19(f));

secure a RLF entry with a continuous bond.

Proposed Procedural Requirements

Proposed 19 CFR 143.44 would set forth the procedures for RLF that would be required to be followed for RLF transactions:

EIP. Customs brokers must transmit electronically, using EIP, any invoice data required by CBP;

Electronic payment. Customs brokers must direct the electronic payment of duties, taxes and fees through the ACH (see 19 CFR 24.25) or any other method of electronic payment authorized by CBP;

EDI system. Automation requirements must be met such that only those entries and entry summaries that CBP processes completely in an electronic data interchange system will be accepted for RLF;

Combined entry/entry summary. A Customs broker must submit to CBP, through ABI or any other electronic interface authorized by CBP, a complete and error-free electronic data transmission constituting the entry summary that serves as both the entry and entry summary;

No line release or ID procedures. There can be no line release or immediate delivery entries. Line release (see 19 CFR, Part 142, Subpart D) or immediate delivery procedures may not be combined with RLF transactions.

Error free. Only data that are complete and error free will be accepted by CBP. If electronic invoice or additional electronic documentation is required, CBP will so notify the RLF filer. If no documentation is required to be filed, CBP will so notify the RLF filer. If CBP accepts the RLF entry (including invoice data) under 19 CFR 143.34-143.36, the RLF entry will be deemed to satisfy all filing requirements under Part 142 and the merchandise may be released.

Liquidation. The entry summary will be scheduled for liquidation once payment is made under statement processing (see 19 CFR 24.25).

Filing of Additional Entry Information

Proposed 19 CFR 143.45 would state that when filing from a remote location:

A RLF filer must electronically file all additional information required by CBP to be presented with the entry and entry summary information (including facsimile transmissions) that CBP can accept electronically. If CBP cannot accept additional information electronically, the RLF filer must file the additional information in a paper format at the CBP port of entry where the goods arrived.

Entry by Nonresident Corporation

CBP is proposing to amend 19 CFR 141.18 (entry by nonresident corporation) to read as follows (proposed additional text is denoted by ):

A nonresident corporation (i.e., one which is not incorporated within the Customs territory of the U.S. or in the Virgin Islands of the U.S.) shall not enter merchandise for consumption unless it:

a) has a resident agent in the State where the port of entry is located who is authorized to accept service of process against such corporation or, in the case of an entry filed from a remote location pursuant to subpart E of 19 CFR 143, has a resident agent authorized to accept service of process against that corporation either in the State where the port of entry is located or in the State from which the remote location filing originates; and

b) files a bond on Customs Form 301, containing the bond conditions set forth in 19 CFR 113.62 having a resident corporate surety to secure the payment of any increased and additional duties which may be found due.

A list of all RFL-operational locations is available for viewing on CBP's Web site at (http://www.cbp.gov/xp/cgov/import/cargo_summary/remote_location_filing/).

- comments must be received on or before May 22, 2007

CBP proposed rule (D/N USCBP-2006-0001, FR Pub 03/23/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-1330.pdf