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You have choices when it comes to the VPN, just make your choice well before the September 30th deadline As many of you know by now, U. S. Customs is giving those who file their duty drawback claims through ABI until September 30 th to switch over to VPN. VPN (Virtual Private Network) is replacing the dial-up method of ABI. So, if you are currently filing your own drawback claims ABI, the clock is ticking. The options are few but one should fit the bill for your drawback program. Your first option would entail submitting a “MQ/VPN Communications Request Form” to Customs asking for the privilege to file drawback claims through VPN. You are then required to choose from a handful of communication software packages Customs has approved for transmitting data to the Customs Data Center. The package Dutycalc chose is known as “MQ Client” using software from Cisco Systems and Websphere from IBM. It was quite a daunting experience when we ourselves began the process however we have streamlined the process and now can offer clients and non-clients our assistance in VPN set-up. What was taking too many days to count is now taking just a small number of hours to have VPN up and communicating with Customs. For more information about our pricing of the VPN Assistance Program please contact carolyn@dutycalc.com . One can always attempt the process themselves or better yet, choose to use Dutycalc’s ABI Service Bureau. This would be the simplest route to take in fulfilling the requirement to be filing drawback claims through VPN by September 30th. All that is required is a brief “Letter of Intent”. Approval usually comes within a few weeks time. Once you’re approved, you can begin sending your claim files to Dutycalc for submission. If you are a Dutycalc System user, your claim files should be in the correct format and should not require any file manipulation whereas non-Drawback.NET clients, there may be file manipulation required (file layout for ABI drawback_module) in order to submit a claim in the proper format. For more information about Dutycalc’s ABI Service Bureau please contact Dutycalc, carolyn@dutycalc.com. |
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There are many forms of POA granting authority for a variety of reasons in our daily lives, but the one that we commonly deal with in our industry is the one that grants authority from the grantor (typically an importer) to the grantee (typically the Customs House Broker). This properly executed and granted document is the sole authority under which a Customs Broker transacts business before Customs on behalf of his customer, the principle. There may be other documents concerning the relationship, such as a performance contract, but it is only the POA that the law requires a Broker to have on file. While the POA is often granted on a form, the CBP 5291, the actual POA can have any format as long as it contains the language required by the Customs Regulations. Many bad things can happen if the POA is defective such as penalties from Customs to the Broker (ouch!) but also a surety can deny a claim under bond if the POA is defective. We strongly suggest that both the Principle and Agent make the execution of the POA a top priority as it is possible and in some cases easy to make an error in this most important document. Here are some suggestions to consider…and oh, by the way, none of us are lawyers, so you might also be well advised to consult counsel if you think you have a larger or more insidious problem with this. I once performed an audit where every POA the Broker had was invalid because they had been using an old form..no kidding. Make sure the form used is current and contains all the language required as it pertains to the agreement between parties. However, if the importer wants to limit the relationship to make entry, but not protest, for example, the POA can be so modified. Make sure the full legal name is used in all places. Abbreviations should not be used. Name changes can in some cases mean a new POA required. This is often overlooked. Be sure the POA is signed and dated. Keep in mind generally, only an officer of the grantors firm can legally sign the POA. I have actually seen a POA signed by an “assistance maintenance engineer”. Yes…a janitor….no kidding. If the corporate structure undergoes a change, most likely a new POA will be needed. A fax copy or an imaged copy of a POA is generally accepted, but we hold a long standing belief that an originally signed POA carries the burden of evidence better. The author is not aware of any penalty ever being issued for holding only a fax copy, but the author here is also well aware what happens when we “assume”. Subagent POAs, Nonresident POAs, Broker mergers and consolidations, centralized recordkeeping, revocation procedures, business with freight forwarders are all subjects of great interest and should be reviewed carefully with knowledgeable parties. A Customs house Broker or Attorney who specializes in trade matters would be the best source of specific information and should be consulted when any of these or more complex issues arise. Contributed by: Ronald E Jacobsen of Northstar Drawback Consultants |
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EXPORT – SMECKSPORT – SHEESH, WHAT’S THE BIG DEAL?
The definitive moment in the life of a drawback claim isn’t receiving the treasury check, depositing it, or even spending it, rather it is that moment when a claimant is challenged by Customs to prove that the export took place. How and why is this so important, you might ask? Well, it goes to the definition of export; the severance of a thing from the commerce of one county into the commerce of another…and that one of the keys to drawback is the export event. Over the years, this Proof of Export (POE) issue has continually presented itself as a challenge to claimants in that what is perfectly acceptable to one branch of Customs is not acceptable to the Drawback unit. The export folks understand about AES, express or paperless bills of lading and filing of manifests electronically. Drawback POE, on the other hand relies on none of these technological advances, rather it is a throwback to days of old, when knights in armor rode on white horses protecting the kingdom. Well, you might view that as an obvious exaggeration, but not really. To gain access to a castle, one must have had some document proving that (s)he had business and the “gate keepers” sole job was to ensure that access was limited to those with a legitimate need, whatever that was. Customs is the veritable “gate keeper” to the duty refund vault deep within the recesses of the dark and mysterious castle who have the ability to morph not law, but practices and policies governing procedures in an ever advancing environment of technology. However, as of this writing, the “proof” that Customs requires that goods were actually exported is, in the author’s opinion, rather draconian and somewhat myopic with respect to automation. We all understand that it is imperative that prior to issuing refunds that drawback claims are verified of course and an instrumental issue is proving that goods were exported. But the difference between a consolidator and freight forwarder blurs when you discover that one is authorized to certify a bill of lading and the other is not. Failure to provide what Customs wants in terms of POE can be fatal to a drawback claim or program. Therefore, we recommend in somewhat terse terms perhaps, that all drawback claimants and filers be aware of what is required or minimally acceptable to Customs concerning POE, and take a preemptive posture to ensure all parties involved do actually have what is needed and have a program of compliance in place. Keep in mind that it is Customs policy that Drawback is a privilege, not a right. In our next installment, we will be explaining what is required for various types of export, such as truck, air, ocean, hand carried and couriers. When the Star Trek “beaming thing” is finally figured out, we will also cover that. In the interim, should you have any questions about this pivotal subject, please feel free to call our office. |
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