CBP Announces Changes For its NCAP Test of the Periodic Monthly Payment Statement Process

Extended Time Period for Payment of Estimated Duties and Fees

CBP is implementing a change, effective August 8, 2005, to the time period allowed for the payment of estimated duties and fees in order to comply with the Miscellaneous Trade and Technical Corrections Act of 2004 (Public Law (P.L.) 108-429), which extended the time of payment from the 15th calendar day to the 15th working day of the month following the month in which the goods are either entered or released.

(CBP notes that for purposes of its NCAP test, the term "working day" is synonymous with the term "business day" which is defined in 19 CFR 101.1 and 101.6(a).)

Removal of an Entry from Periodic Daily Statement after Expiration of the 10-Working Day Period after Release of the Entry

Another change adopted by CBP, effective August 8, 2005, is that entries removed from a Periodic Daily Statement, after expiration of a 10-working day period after release, may be subject to a claim for liquidated damages for late payment of estimated duties.

CBP explains that it will exercise its discretion whether to establish a claim for liquidated damages and will consider the timeliness of the submission of the entry information to CBP in making its decision.

(Prior to this change, if participants removed an entry from a Periodic Daily Statement as described above, the entry would be automatically subject to a claim for liquidated damages for late payment of estimated duties.)

CBP adds that entries removed from a Periodic Monthly Statement after expiration of a 10-working day period after release, will still be subject to an automatic claim for liquidated damages for late payment of estimated duties.

Entries with Census Errors May be Placed on a Periodic Daily Statement

CBP states that, effective August 1, 2005, it will allow entries containing Census errors to be placed on a Periodic Daily Statement and designated for monthly payment.

(This means that CBP will allow all entries currently eligible for placement on a daily statement to be placed on a Periodic Daily Statement, with the exception of reconciliation entries, NAFTA duty deferral entries, and entries requiring the payment of excise taxes.)

(See today's ITT, 05080850 1, for BP summary of a CBP administrative message on this change.)

Monthly Payment Procedures

CBP states that incorporating the changes regarding the extended time for payment of estimated duties and fees, and the removal of entries from the Periodic Daily Statement after expiration of the 10-working day period after release, as announced in this general notice, entries for monthly payment will be processed as follows:

(a) As entries are filed with CBP, the importer or its designated broker schedules them for monthly payment;

(b) Those entries scheduled for monthly payment will appear on the Preliminary Periodic Daily Statement;

(c) The importer or its designated broker processes entry summary presentation transactions for Periodic Daily Statements within 10 working days of the date of entry (this is not changed from CBP's previous notice);

(d) After summary information has been filed, the scheduled entries will appear on the Final Periodic Daily Statement;

(e) Periodic Daily Statements scheduled for monthly payment will appear on the Preliminary Periodic Monthly Statement; CBP will generate the Preliminary Periodic Monthly Statement on the 11th working day of the month (changed from the 11th calendar day) following the month in which the merchandise is either entered or released, whichever comes first, unless the importer or designated broker selects an earlier date;

(f) On the 15th working day of the month, for Automated Clearing House (ACH) debit participants, CBP will transmit the debit authorizations for the periodic daily statements to the financial institution and the periodic monthly statement will be marked paid. The Final Periodic Monthly Statement will be generated by CBP and be transmitted to the importer or his designated broker. ACH Debit participants must ensure that the money amount identified on the Preliminary Monthly Statement is, in fact, available in their bank account by the 15th working day of the month;

(g) ACH credit participants must initiate payment no later than the 14th working day of the month. CBP must receive the settlement for the credit by the 15th working day in order to have the periodic monthly statement marked paid and treated as a timely payment. The Final Periodic Monthly Statement will be generated by CBP and be transmitted to the importer or his designated broker.

CBP notes that for both ACH Credit and ACH Debit participants, CBP will generate the Final Periodic Monthly Statement on the night that payment is processed.

CBP states that participants should note that if they voluntarily remove an entry from a Periodic Daily Statement before expiration of the 10-working day period after release, the entry may be placed on another Periodic Daily Statement falling within the same 10-working day period.

(See ITT's Online Archives or 02/05/04 and 02/06/04 news, 04020505 and 04020605, for BP summaries of CBP's February 4, 2004 general notice on the NCAP test of the ACE Periodic Monthly Statement.)

CBP general notice (FR Pub 08/08/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-15571.pdf.