NCBFAA Says CBP Commercial Invoice Requirements Differ From Actual Practice

CBP's information collection for commercial invoices “indicates that there is a transaction with a price already agreed upon that the foreign seller and U.S. buyer will pay,” but that's not always true, the National Customs Brokers & Forwarders Association of America said in comments to CBP on a proposed extension of the information collection (see 2009290038). “There often are shipments that are consigned, leased, etc. where the parties have not established a price to be paid and other commercial invoice information may not be available,” the association said. NCBFAA suggested that CBP's regulations should instead “require all the information normally provided on a commercial invoice on an as needed basis and when appropriate to the transaction.”

The agency should also “require a commercial invoice whenever possible, but alternatively a document with the required information needed for value, classification and admissibility could be provided,” NCBFAA said. “If such document is provided, the commercial invoice should be considered waived unless the Director of the Center of Excellence and Expertise determines that a commercial invoice is needed.”

The trade group also suggested that CBP adjust the timing requirements for the commercial invoice collection. The regulations require presenting the invoice for each shipment at the time of entry, but, while “customs brokers obtain and maintain such invoices in the ordinary course of business they do not typically transmit or present them at the time of entry,” the NCBFAA said. CBP should “clarify that an importer be required [to] possess a commercial invoice and provide one to its customs broker, where available and appropriate, and make it available upon request by CBP,” the association said. “This would more accurately reflect the current commercial reality and practice not only on the part of customs brokers and importers but also on the part of CBP who as a matter of policy does not require or expect a commercial invoice to accompany each transaction.”

Another possible improvement is the addition of an Automated Invoice Interface in ACE, NCBFAA said. It pointed out that this was available in the Automated Commercial System that predated ACE. “Although the customs brokerage industry had requested it, the ACE system still lacks such functionality,” it said. “The NCBFAA highly recommends that CBP take action to procure the necessary funding to develop AII in the ACE system.”

NCBFAA also said CBP's estimated time requirement of a minute per response is too low.