Protests and Post Summary Adjustments

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Protests and Post Summary Adjustments
Columbus Importers Brokers Association
Meeting February 6, 2008
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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.

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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.

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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.

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LIQ DATE REQUIRED
POST ENTRY AMENDMENT (PEA) TEST PROGRAM
WHERED THE NON_REVENUE SIL BOX GO?
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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.

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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

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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.

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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

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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!

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

• WHAT WAS NEEDED?
• A sample (it doesnt get any better than that)
• A schematic drawing
• A photograph
• A picture from the importers web site
• The size
• Hows it used?
• Detailed description

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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, companieseverything
  is the same on the invoices except the shipment
  value
• Will CBP approve your protest with just a
  corrected invoice? No. Denied, no substantiation

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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

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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, theres an
  invoice that states 5 (five) Textile
  Preparation Machines.
• Will I approve your NAFTA Claim? No. Denied, no
  substantiation.

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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, its a
  machine)
• A detailed photograph and/or a picture from the
  importers web site, along with information on
  how the machine operates.

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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?

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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

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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.

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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.

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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.