CBP Extends Window to Reject ADD/CVD Entry Summaries

On April 23, 2018, CBP announced a modification to its entry summary rejection policy via CSMS 18-000301 as it pertains to entries subject to ADD/CVD, to special tariffs imposed under Sections 201 and 301 of the Trade Act of 1974, and to special tariffs imposed under Section 232 of the Trade Expansion Act of 1962. (For more details on these special tariffs, see the April 2nd blog posting. CBP now has nearly 10 months to identify and reject such entry summaries.

CBP Directive 3550-067 sets forth its policy on acceptance and rejection of entry summaries. Presently, an entry summary subject to ADD/CVD could be rejected by CBP within 60 days of the filing of the entry summary (90 days with supervisory approval). CBP is changing the 90 day window to 300 days with supervisory approval.

In general, an importer has 10 working days from the date of cargo release to file an entry summary. A rejected entry summary must be resubmitted within 2 working days of the date of reject (10 working days if the error involves ADD/CVD). This 2 or 10 day grace period allows for the timely resubmission. If it is missed, these days count in the calculation of how late the entry summary is.

When an entry summary is rejected, the filer must cure the problem timely. In the case of ADD/CVD this would require the importer to pay any estimated ADD/CVD within the 10-day window, and update/amend the entry summary filing (e.g., change the entry type to “03” and include relevant ADD/CVD case number(s)). The failure to do this timely will create additional costs and expenses in the form of liquidated damages for a failure to file the entry summary or the untimely filing of the entry summary.

This has the greatest impact on entries subject to an ADD/CVD investigation’s retroactive provisional measures that relate to Critical Circumstances (a 90-day retroactive application of the suspension of liquidation and the requirement to deposit estimated ADD/CVD). Prior to this change, CBP was often caught off guard to properly/timely comply with Commerce’s instructions entries subject to critical circumstances periods. CBP could not compel an importer to deposit money if the entry summary rejection deadline had passed.  Now, that deadline is a lot more CBP-friendly.

Should you need further information, contact your Roanoke Trade Bond Service Team or call us at 1.800.ROANOKE.