[Federal Register Volume 59, Number 71 (Wednesday, April 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8809]
[[Page Unknown]]
[Federal Register: April 13, 1994]
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DEPARTMENT OF THE TREASURY
19 CFR Part 142
[T.D. 94-39]
Identifying Information Required on Entry Documents
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Final interpretive rule.
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SUMMARY: This document sets forth examples that correctly identify the
party in the U.S. to whom imported merchandise is sold or consigned, or
the premises in the U.S. to which it is delivered. This information is
required by regulation to be shown on Customs entry or release
documents for the merchandise.
EFFECTIVE DATE: April 13, 1994.
FOR FURTHER INFORMATION CONTACT: Lou Samenfink, Office of Cargo
Enforcement and Facilitation, (202-927-0510).
SUPPLEMENTARY INFORMATION:
Background
Merchandise imported and entered for consumption must be supported
by Customs entry and entry summary documentation. Briefly stated, this
entry documentation is detailed in Sec. 142.3, Customs Regulations (19
CFR 142.3), and consists of the information which must be filed with
Customs to secure the release of imported merchandise from Customs
custody (19 CFR 141.0a(a)); entry summary documentation is that which
must be filed in order to enable Customs to assess duties, and collect
statistics with respect to the merchandise, and to determine whether
other requirements of law or regulation are met (19 CFR 141.0a(b)).
In addition, in certain circumstances as enumerated in Sec. 142.21,
Customs Regulations (19 CFR 142.21), merchandise may be initially
released under a special permit for immediate delivery, in accordance
with Sec. 448(b), Tariff Act of 1930, as amended (19 U.S.C. 1448(b)),
and in these circumstances as well, the information required by
Sec. 142.3 must be provided, except that a commercial invoice need not
be submitted at such time (see 19 CFR 142.22(a)).
Customs capability to identify fully all parties involved with
imported merchandise being entered or released is essential in order to
support investigative efficiency. Information concerning the party in
the U.S. to whom such merchandise is sold or consigned represents one
of several elements which Customs considers in the process of assessing
the risks associated with the transaction and determining the
appropriate level of examination to be accorded the merchandise
involved. This process is known generally as ``cargo selectivity''.
In this latter regard, principally to correct a problem on the
Northern Border, Sec. 142.3 was amended by T.D. 90-92, 55 FR 49879, to
add a new paragraph (a)(6), in order to specifically require that entry
or release documents set forth the identity, including the importer
identification number, of the party in the U.S. to whom the imported
merchandise is sold or consigned, or if this is unknown at the time of
entry or release, the premises in the U.S. to which the merchandise is
delivered.
Under Sec. 142.3(a)(6), the required information, including the
appropriate importer identification number or numbers, must be provided
for each entry of imported merchandise processed through cargo
selectivity, whether the entry is electronically or manually
transmitted to Customs.
In particular, for a consolidated entry, where the entry is made
listing one broker or freight forwarder as consignee, the required
information must be submitted for each separate and distinct shipment
within the consolidated shipment.
The notice of proposed rulemaking which led to the final rule
adopting Sec. 142.3(a)(6) set forth seven examples which were designed
and intended to illustrate the application of the identification
requirement contained in this regulation (55 FR 2528, 2529). These
examples, however, were dropped from the final rule because they
created confusion on the part of the brokerage community as to which
party should be identified in some of the more complex import
transactions (T.D. 90-92, 55 FR 49879, 49883). However, it was noted in
the final rule that examples meeting the needs of both Customs and the
trade would be developed and issued separately (ibid.).
Accordingly, after working with the trade community in this
endeavor, Customs published a notice of clarification in the Federal
Register on July 29, 1992 (57 FR 33463), proposing, and asking for
public comment on, a number of examples intended to effectively
illustrate the correct application of Sec. 142.3(a)(6).
A total of twelve commenters responded during the public comment
period. A number of the comments made were outside the scope of the
notice, inasmuch as they did not address or concern the examples
themselves. A description of the specific issues that were raised with
respect to these examples, together with Customs response, is set forth
below.
Discussion of Comments
Comment: One commenter requested an explanation of the procedures
for including the ultimate consignee on the entry documents when there
are multiple ultimate consignees (both electronically via the Automated
Commercial System and on the paperwork).
Response: While this comment is beyond the scope of this notice, as
a result of the passage of the Customs modernization portion of the
North American Free Trade Agreement Implementation Act (Pub. L. 103-
182, Title VI), Customs will be undertaking a broad-based review of its
regulations. This comment would be more appropriately addressed at that
time.
Comment: One commenter wanted to know what would happen if a
``customer'' refuses to give his ultimate consignee number or power of
attorney to his broker.
Response: If the ultimate consignee number is not provided on the
required entry documents, the documentation shall not be considered to
be filed in proper form and shall be returned to the importer for
correction pursuant to Sec. 141.64, Customs Regulations (19 CFR
141.64).
Comment: Examples 2, 5 and 11 (now 10) are cited as situations
where the Canadian shipper should be listed as the ultimate consignee.
Response: It would not be possible for the foreign shipper to be
listed as the consignee or ultimate consignee on entry documents at the
time of immediate delivery, entry or release. The notice of
clarification indicated the party in the United States to whom
merchandise is sold or consigned. It is this party who is required to
be identified in the entry documents.
Comment: Example 9 is cited as a case where a Canadian company is
listed on the entry documents as the buyer. The merchandise is shipped
to a trucking company in the United States, presumably for shipment to
the buyer in Canada. It is suggested that the Canadian buyer be listed
as the ultimate consignee on U.S. entry documents.
Response: The U.S. trucking company is properly listed as the
ultimate consignee in this situation. Customs Regulations call for
using the premises to which the merchandise is to be delivered in the
United States as the effective ultimate consignee on the entry, when
there is no known U.S. buyer at the time of immediate delivery, entry
or release.
Comment: It was requested that a new example be issued for entries
filed on merchandise that arrives by pipeline.
Response: The examples do not cover this because the mode of
transportation is not a factor in identifying the ultimate consignee.
Comment: One commenter gave examples where the consignee or
premises could change after the entry has been processed.
Response: It is the party to whom the merchandise is sold or
consigned, or the premises to which it is to be delivered, at the time
of entry or release, which must be listed in the Customs entry or
release documents.
Comment: One commenter wanted to know who the consignee would be if
an importer was shipping merchandise from Canada ``directly'' to
Mexico, through the United States, and chose to make a consumption
entry. The commenter pointed out that the merchandise might be free of
duty and both the client and the carrier might not want the shipment to
move in-bond.
Response: A situation where a shipment moves from the point of
entry to exportation from the United States is outside the scope of
Sec. 142.3(a)(6). Consequently, Customs will establish a procedure to
accommodate importers who wish to file a consumption entry for
merchandise that will transit the United States.
Conclusion
After careful consideration of the comments received and further
review of the matter, Customs has determined to adopt the examples
without substantive change, with the exception of one example (Example
10 in the notice of clarification) which is removed because the special
steel invoice the subject thereof is no longer being used. The
succeeding examples are renumbered accordingly. In addition, the
following two typographical errors are corrected: in Example 5, the
reference to ``Example 4'' is changed to ``Example 3''; and in Example
9, the second sentence beginning with ``Acme shops'' is changed to
``Acme ships''.
Examples
Example 1. ABC Company, a distributor of telephone equipment
located in Seattle, Washington, places an order with Canadian Bell
Limited of Vancouver, Canada, and arranges for the importing carrier to
deliver the goods directly to several customers of ABC Company in the
U.S.
ABC Company is the ultimate consignee for Customs purposes, since
that is the party which purchased the merchandise from the Canadian
shipper.
Example 2. XYZ Limited is a Canadian company which produces and
delivers baked goods to twenty retail food stores in the U.S. on a
daily basis.
Since the baked goods are ordered/purchased separately from the
Canadian supplier by the individual stores in the U.S., each of these
stores is the ultimate consignee for Customs purposes.
Example 3. Montreal Furniture Company, a Canadian manufacturer of
office furniture, leases storage space at the Champlain Warehouse
Service in Champlain, New York. As orders are received from customers
in the U.S., delivery is made from the Champlain storage facility.
The Champlain Warehouse Service should be shown on the entry or
release documents in accordance with Sec. 142.3(a)(6), since there is
no known buyer of the merchandise at the time of its importation and
those are the premises in the U.S. to which the imported goods are
being delivered.
Example 4. Calgary Instruments Limited ships a small parcel
containing a medical instrument to the UPS (United Parcel Service) hub
in Sweetgrass, Montana, for subsequent delivery to Memorial Hospital in
Great Falls, Montana. Reliable Broker is the importer of record for
this shipment.
Memorial Hospital is the ultimate consignee for this shipment,
since it is the purchasing party, and UPS is merely a nominal consignee
in the transaction.
Example 5. An employee of Ontario Jewelry Sales Limited of
Mississauga, Canada, imports in her personal baggage a collection of
diamonds for display and possible sale at a jewelry exhibition taking
place at the Intercontinental Hotel in Manhattan, New York.
As in Example 3, since this shipment is not being imported subject
to a contract of purchase or delivery at the time of importation, the
Intercontinental Hotel should be shown on the entry or release
documents in accordance with Sec. 142.3(a)(6), since that is the place
to which the diamonds are being delivered.
Example 6. The Wilkins Fur Company, Limited, of Toronto, ships
twenty mink coats to the Williamson Exposition Company of Boston, which
is handling the arrangements for a trade fair on behalf of the National
Association of Fur Garment Wholesalers to be held at the Plaza Hotel in
New York City.
Since there is no known buyer at the time of importation of the
mink coats, the Williamson Exposition Company of Boston should be shown
on the entry or release documents in accordance with Sec. 142.3(a)(6),
since that is the entity to which the coats are consigned.
Example 7. Manitoba Auto Supply of Winnipeg ships ignition kits to
the U.S. The buyer shown on the invoice is Minneapolis Auto Specialties
of 2800 Hennepin, Minneapolis, Minnesota. Marty's Car Parts in Racine,
Wisconsin, is shown as the ``ship to'' party.
As in Example 1, the ultimate consignee for Customs purposes is
Minneapolis Auto Specialties, since that is the party which purchased
the merchandise from the Canadian shipper.
Example 8. Manitoba Auto Supply ships ignition kits to Minneapolis
Auto Specialties in Duluth, Minnesota. The buyer shown on the invoice
is Minneapolis Auto Specialties located at 2800 Hennepin in
Minneapolis, Minnesota.
As in Example 7, Minneapolis Auto Specialties in Minneapolis is the
ultimate consignee since that is the party in the U.S. which purchased
the merchandise.
Example 9. Acme Compressor Company, Limited, of Edmonton, Alberta,
buys an air compressor from the Trucking Supply Company of Regina,
Saskatchewan, and is listed as the buyer on the invoice. Acme ships the
compressor to the Lindquist Trucking Company in Ambrose, North Dakota.
The Lindquist Trucking Company should be shown on the entry or
release documents in accordance with Sec. 142.3(a)(6), since that is
the place in the U.S. to which the goods are being delivered.
Example 10. Beauty Limited of Montreal, Quebec, sells a shipment of
cosmetics to Total Woman, Inc. (a U.S. company) in care of (c/o) Unique
Image of Albany, New York. There is no address listed on the invoice
for the buyer, Total Woman, Inc.
The ultimate consignee in this case is Total Woman, Inc., which is
the buyer in this transaction. Its name and address must therefore be
included on the Customs entry or release documents.
Example 11. Spring Water Company of Los Angeles purchases a load of
bottled water from Healthy Water Limited of Calgary, Alberta. The
address of Spring Water Company is listed as a post office box in Los
Angeles. The water is shipped to Ralph's Grocery Store on Sepulveda
Boulevard in Los Angeles.
The ultimate consignee is Spring Water Company of Los Angeles as
the U.S. buyer of the water, regardless of the fact that its address
shows a post office box.
Example 12. FTX Company in Mexico City ships a load of door knobs
to the Rio Company in El Paso, Texas. There are no other parties
located in the U.S. shown on the invoice.
The Rio Company should be shown on the entry or release documents
in accordance with Sec. 142.3(a)(6) since there is no known buyer of
the merchandise at the time of its importation and those are the
premises in the U.S. to which the imported goods are being delivered.
However, if there is a known buyer that name must be used.
Example 13. ABC Garments of Edmonton, Alberta, manufactures
children's clothing and sells to small boutiques in the U.S. These
boutiques place orders (usually small) with ABC Garments which will
accumulate a number of orders before sending them as a consolidated
shipment with their customhouse broker listed as consignee.
Although Sec. 141.51, Customs Regulations (19 CFR 141.51), allows
all merchandise arriving on one vessel and consigned to one consignee
(in this case, the broker) to be included in one entry, the ultimate
consignee (i.e., the person to whom the merchandise is sold) for each
shipment in the consolidated entry must be provided to Customs in
accordance with Secs. 141.86(a)(2) and 142.3(a)(6), Customs Regulations
(19 CFR 141.86(a)(2) and 142.3(a)(6)). Furthermore, pursuant to
Secs. 24.5(a) and 142.3(a)(6), Customs Regulations (19 CFR 24.5(a) and
142.3(a)(6)), a Customs Form 5106 would also have to be filed for each
ultimate consignee for which entry is made.
Example 14. Through Quicksilver Delivery, an international courier
company, Just Fabrics, Limited, of Montreal, ships a parcel of fabric
cuttings to Dresses-Are-Us in London, England. Dresses-Are-Us is listed
as the destination party on the invoice. After Customs clearance, the
parcel is forwarded to England by A-1 Freight Forwarders of Buffalo,
New York.
Because there is no known buyer in the U.S., A-1 Freight Forwarders
in Buffalo, New York, should be shown on the entry or release documents
in accordance with Sec. 142.3(a)(6), since theirs are the premises in
the U.S. to which the merchandise is to be delivered before being
forwarded to England.
Example 15. Top Hat, Ltd., ships twenty orders of clothing
accessories on individual bills of lading to various consignees. The
entire shipment is included on a master bill of lading designating a
customs broker as consignee.
One entry would be filed in this situation in accordance with
Sec. 141.51, Customs Regulations (19 CFR 141.51). Although the broker
listed as consignee on the master bill of lading may be the importer of
record, tariff-line items would designate the individual ultimate
consignees. Ultimately, all twenty ultimate consignees would be listed
on the entry. Some line items may be repeated for more than one
ultimate consignee.
Drafting Information
The principal author of this document was Russell Berger,
Regulations Branch, U.S. Customs Service. However, personnel from other
offices participated in its development.
George J. Weise,
Commissioner of Customs.
Approved: March 29, 1994.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-8809 Filed 4-12-94; 8:45 am]
BILLING CODE 4820-02-P