Identifying Information Required on Entry Documents

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