Issue 280, November 28, 2000
On November 28, Customs released the final Post Entry Amendment Test Procedure to commence on December 28 and to run for one year.

Changes from the prior proposals severely limit the usefulness of the quarterly reporting. In the original proposals, Customs stated that it was raising the administrative limit for bills and automatic refunds from $20 to $50. That has been abandoned. In addition, all changes resulting in the underpayment or overpayment in duties taxes or fees of $20 or more can not be reported quarterly.

Customs procedure requires that INDIVIDUAL ENTRY amendment letters be filed for, among other things:

Changes that result in either: (1) an overpayment or underpayment of duties, taxes, and or fees of $20 or more (?revenue errors?), or (2) any amount of antidumping or countervailing duties;

Almost all non-revenue changes relating to quota merchandise (e.g., apparel, selected food products, sugar, chocolate, etc.) and relating to Antidumping Duties, Countervailing Duties or Voluntary Restraint Agreements except non-revenue changes in value or other charges when the difference between the entered and correct values is $10,000 or more;

Any change that involves a systemic change (i.e., systemic omission of assist values, misclassifications, etc. regardless of value).

The quarterly tracking report can only be used to report: (1) Revenue related changes that result in either an overpayment or underpayment of duties, taxes, and or fees of less than $20 and (2) non-revenue related changes below the amounts indicated above.

It is important to note that the test procedure has no effect on Customs? enforcement authority. If an importer uncovers significant errors, it would be wise to assure that any Post-entry amendment meet the requirements for a "Prior Disclosure" under Customs? regulations. Absent a valid prior disclosure, an importer could be subject to significant penalties even where the importer has voluntarily made amendments according to this procedure or by a Supplemental Information Letter.

Importers may comment on the proposal prior to December 28.

Our contributing writer, David M. Murphy, Esq., is a partner with the firm Grunfeld, Desiderio, Lebowitz, Silverman and Klestadt in New York and can be reached at dmurphy@gdlsk.com.

Please note that due to the complex nature of the subject matter, Danzas AEI cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with Danzas AEI.