Issue 448, August 24, 2004
U.S. Customs has always had a requirement that stated that entry and release documentation must indicate the identification number of the ultimate consignee in the United States. However, in the interest of facilitating trade, Customs has developed ways to work around the by identifying other parties in the transaction or by reporting an encrypted number to be replaced by the correct number after the shipment has been released by Customs. With the onset of advanced manifest requirements and prior notice Customs has determined that these alternative methods of reporting no longer meet Customs' requirements for accurate information.

Customs now defines the Ultimate Consignee as the party in the United States to whom the overseas shipper sold the imported merchandise. If the goods have not been sold to an U.S. party at the time of entry or release then the Ultimate Consignee is the party to whom the goods have been consigned. If the merchandise has not been sold or consigned to a U.S. party, the Ultimate Consignee is the proprietor of the U.S. premises to which the merchandise is to be delivered.

Effective October 1, 2004, Customs will only accept these parties as the ultimate consignee identified on entries or immediate releases for formal entries. If the correct Ultimate Consignee identification number has not been provided to Customs at time of entry or release, entry of the shipment will not be allowed.

For consolidated shipments that have multiple ultimate consignees arriving at the border on a single conveyance, the Ultimate Consignee for each portion of the shipment must be reported with the appropriate identification number. Customs has identified the Ultimate Consignee identification number as either the IRS Employer Identification Number or, in the case of an individual, a Social Security Number. Customs' electronic system will be modified to edit for these number formats and will reject any other. Failure to supply Customs with these identification numbers will result in denial of entry.

It now falls upon the importer to insure that the Ultimate Consignee's IRS Employer Identification Number is reported at the time of entry or immediate release. Without this information entry of these shipments will be denied by U.S. Customs.

Our contributing writer, Karl Krueger, is the Technical Advisor for DHL Danzas Air & Ocean in Port Huron, Michigan. If you have any questions or require further information, please contact Mr. Krueger at Karl.Krueger@dhl.com or 810 987 0567.

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