New CBP FAQ's on Instruments of International Traffic with Residue

U.S. Customs & Border Protection (CBP) has posted an update to their Frequently Asked Questions (FAQs) on Instruments of International Traffic Imported into the United States with Residue. This document continues to be updated by CBP. The most recent version of this letter is February 8, 2011. It can be accessed at: http://www.cbp.gov/xp/cgov/trade/trade_outreach/advance_info/

Effective July 17, 2011 residue contained in an 'Instruments of International Traffic (IIT)' must be reported to CBP. The residue must be manifested, classified and entered in accordance with statutes and regulations enforced by CBP.

Commodities imported as residue may be subject to other Federal agency license, permit, and/or restrictions (e.g. Department of Transportation, Environmental Protection Agency Toxic Substance Control Act, Food & Drug Administration Prior Notice).

CBP will require an International Carrier's Bond (type 3A) from the entity requesting release of the residue (19 CFR 113.66). In addition to the International Carrier's Bond, an Importer bond (type 1) may also be required, depending on the value of the residue. Our offices may be able to assist our clients in obtaining the correct bond(s) to handle residue importations.

Please check the FAQ's to answer specific questions such as:
o Who will make the entry (exporter, carrier, or importer)?
o How will estimates for residue cargo be determined?
o How should industry measure 'heel' residue remaining in a tank after unloading?
o How does the importer determine the value of the residue?
o How will the entries be processed (Section 321, Informal or Formal entries)?
o How will an IIT completely devoid of residue be entered?
o If the container is cleaned prior to return to the USA, will CBP demand proof of cleaning?
o Who is considered the 'shipper' and the 'importer' for IIT arriving with residue?

Carriers will be responsible for transmitting advanced electronic cargo information for the residue cargo, including a detailed cargo description, estimated quantity (and updates if more precise information is available at a later date) and adhering to applicable regulations and other agency requirements.

This is a significant change in handling containers with residue and we urge you to read the FAQ's. Please contact your local UPS Supply Chain Solutions office if you have further questions.

UPS Supply Chain Solutions®

Source: U.S. Customs & Border Protection

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