Come October 1, 2016, CBP’s entry reconciliation program is scheduled to transition to the Automated Commercial Environment (ACE) from the Automated Commercial System (ACS), and with it, there will be an important change to the program.

CBP will no longer be applying blanket flags to entry summaries. Under the current process, when an importer applies for participation in the reconciliation program, you must indicate on the application whether you would like to blanket flag or use the entry-by-entry method. When an importer blanket flags, all entry summaries that are transmitted to CBP are automatically flagged for whichever issue(s) the importer indicated at the time of application. According to CBP’s Office of Trade, Trade Processing Branch, beginning October 1, 2016, CBP will no longer automatically apply those flags to entry summaries. Rather, the importer will have to arrange blanket flagging with their broker. Additionally, if the importer is using multiple brokers, the importer will have to contact each one to ensure that they are blanket flagging.

CBP’s reconciliation program is the primary means by which importers may file post entry summary changes in areas such as valuation, 9802, and Free Trade Agreement claims. Under the program, an importer/broker places a “flag” on the entry summary at the time it is filed and makes payment of estimated duties, taxes, and fees. The importer then has up to 21 months to file a reconciled entry summary (12 months for certain FTA claims). Blanket flagging covered all entries for a given importer, and under ACS, was performed by CBP at the request of the importer. Once the type 09 reconciliation entry is transitioned to ACE, importers will have to implement blanket flagging directly with their respective fliers/brokers.

For additional information on the ACS to ACE reconciliation transition, interested parties should listen to CBP’s upcoming Reconciliation Business Webinar, scheduled for 12:30 p.m. EDT, on Friday, August 19th. If you have not already registered, please visit:

https://cbp.adobeconnect.com/recontrade/event/registration.html