ACS Not Programmed for KORUS Entry Summary Claims Yet, but Alternatives Exist

March 14, 2012 by Marie Rapport|Top News

U.S. Customs and Border Protection has not yet completed its programming to allow entry summary claims for Korea Free Trade Agreement (KFTA or KORUS) duty benefits to be filed using the ACS Automated Broker Interface (ABI). In the meantime, CBP sources and the agency's KFTA instructions list several alternatives to use for entry, and well as a post importation claim option (and form). KFTA takes effect for qualifying goods entered or withdrawn from warehouse for consumption on or after March 15, 2012.

(CBP had earlier advised the trade of the ACS ABI system requirements for filing KFTA entry summary claims, and had stated that it would send out another message when CBP had completed its own summary claims' programming. CBP officials had also stated at that time that once ACS programming is completed, the trade would additionally be able to file such entry summary claims in ACE. See ITT's Online Archives 12022807 for summary.)

According to CBP's KFTA implementation instructions and CBP sources:

Claims Made UsingACS

After ACS ABI programming changes for KFTA entry summaries are completed (and CBP has uploaded the KFTA tariff numbers into its system), claims for KFTA preference may be made at time of entry summary by prefacing the HTS number of the applicable good with the Special Program Indicator (SPI "KR").

Until CBP's ACS ABI programming for KFTA entry summaries is completed, filers may make a KFTA entry summary claim by either:

transmitting the CBP Form 3461 (entry) data via ABI and filing a non-ABI paper CBP Form 7501 (entry summary) making the preference claim, or
filing a non-ABI paper CBP Form 3461 (entry) and a non-ABI paper CBP Form 7501 (entry summary) making the preference claim.

Claims Made Using ACE

CBP sources also state that there are two Automated Commercial Environment (ACE) options for filers to use. Filers can:

file the CBP 3461 release information in ACS ABI and then the CBP 7501 entry summary information (with the KFTA claim) in ACE ABI, or
use ACE to "file for release via entry summary" by filing a combined 3461/7501, and the system will send the 3461 information to ACS ABI for the release and keep the entry summary information (with the KFTA claim) in ACE.

(Note that CBP sources have stated that ACE AE (entry summary) has no edits in place. See ITT's Online Archives 12022319 for summary stating that CBP is still looking at how to fix the ACE "edits" problems; many brokers and importers have said that such a fix is a prerequisite in their decision to use ACE.)

1520(d) Post Importation Claims

Importers may make a KFTA post-importation claim in accordance with 19 USC 1520(d), within one year of importation. In this paper process, the importer submits a claim in writing to the port of entry, to include:

A written declaration stating that the good qualified as an originating good at the time of importation and the number and date of the entry or entries covering the good;
A copy of a certification containing the required data elements (see attachment A (here) at end of CBP's instructions) demonstrating that the good originated at importation;
A statement indicating whether the entry summary or equivalent documentation was provided to any other person;
A statement indicating whether a protest, petition, or request for reliquidation has been filed relating to the good and identification of such filing(s).

If CBP finds the certification is illegible or defective, or that the post-importation claim otherwise does not comply with the requirements, the post-importation claim will be rejected with a statement specifying the deficiencies. CBP will process the resubmission of a post-importation claim as long as all deficiencies have been addressed prior to the expiration of the one-year-from-importation period.

(CBP also states that it reserves the right to verify the originating status of the goods and to deny preference where the claim was inadequately substantiated or the goods otherwise failed to meet the terms of the KFTA.

See ITT's Online Archives 12031323 for initial summary of CBP's KORUS implementation instructions, which did not detail the claim filing process. See ITT's Online Archives 11110327 for summary stating that 520(d) post-importation preference claims do not require a Post Entry Amendment (PEA), a Post Summary Correction (PSC) or a 19 USC 1514 protest.)

*Summary edited on 03/15/12 to correctly indicate that ACE can only be used for KFTA entry summary claims once ACS is programmed for the KFTA, as ACE has to make a change in its system to accept KFTA claims.