CBP has initiated a review
Customs and Border Protection (“CBP”) has recently initiated a review, via CF 28 Requests for Information (“Requests”) to Charter clients, in connection with entries for crude oil imported via pipeline and aimed specifically at evaluating the MPF calculation appropriate for these entries. This CBP initiative is indicative of a new position regarding certain (primarily continuous flow) pipelines, namely that entries for these pipelines should be filed under the permissible monthly consolidated entry requirements. The effect for importers is that entries which should be subject to a maximum of $485 MPF per entry are being liquidated with MPF calculated using a maximum of $400 per day. Primary targets for the review appear to be entries that meter over more than one day and entries that clear a larger than usual quantity (i.e., 100,000+ bbls).
Charter maintains that none of the entries flagged merits treatment as a monthly consolidated entry – and we note that the monthly consolidated entry pilot program was meant to be optional for filers. We are very concerned, for our clients’ sake, that CBP actions to advance the MPF owed can result in bills of up to $12,400 per entry.
We continue to work with all levels of CBP to produce a better outcome and are cautiously optimistic, yet we are aware it may be some time before this issue reaches a final resolution. In the meantime, Charter is available to respond to (or assist with) these Requests and any resultant action by CBP. We do want to advise that protesting a MPF rate advance does not alleviate the obligation to pay the additional MPF plus interest calculated from the date of entry summary.
Please reach out to any of us at Compliance@charterbrokerage.net if you have questions or concerns in connection with this ongoing CBP initiative.