Category: Supply Chain, Customs, Import, Customs Broker
What is Reconciliation? When an importer is filing an entry with U.S. Customs there are multiple elements to each transaction, including classification, country or origin, and valuation. Some information may be undeterminable at the time of entry. For example, an importer may have a shipment with assists (equipment or products provided by an importer to a seller at a free or reduced cost to aid in production of merchandise) and the final value is undeterminable until the close of an accounting period, so the final value of the merchandise is not known until then. Assists are dutiable and must be included in the value of the imported goods. Reconciliation allows an importer to file entry summaries with CBP by providing the best available information at the time of entry, with mutual understanding that certain elements remain outstanding. The importer files a Reconciliation at a later date, when the specifics have been determined. The Reconciliation is then liquidated, with a single bill or refund. Importers can flag an entry for Reconciliation, which notifies Customs that the final value is undeterminable, and the importer will pay the estimated duties at the time of entry. When the importer has the final value, they will provide Customs with a reconciliation statement. Through the ACE Reconciliation program, importers are automatically eligible for participation with a continuous bond and a Reconciliation Bond Rider. If an importer is assigned to a Center, then that Center will work the Reconciliation. If the importer is not assigned to a Center, the Reconciliation should be transmitted to the local port of entry for routing. CBP no longer offers “blanket flagging,” only entry-by-entry flagging. FTA entries flagged for reconciliation must be reconciled within 12 months, all other entries flagged for reconciliation (value, classification & 9802) must be reconciled within 21 months. Entry types eligible for reconciliation include 01, 02 and 06. If you have any questions or would like more information regarding CBP’s Reconciliation program through ACE, please feel free to contact your Krieger Worldwide representative.
How to Use ACE for Reconciliation
October 17, 2019 Posted by Tanya Krieger