Important update for those who import shipments into the US via the US border

[hlmacdon]

If you are currently crossing the US border to import customer shipments for reshipment via a US carrier/USPS there are changes to the requirements. Previously shipments that qualified as Section 321 informal entries (essentially goods to a consignee that are under the de minimis) was exempt for emanifest requirements and you could simply use a paper form and show up at the border with that and supporting paperwork.

If you cross now you should start receiving a handout with information, but the gist is starting November 26 if you haven't filed electronic manifests you'll be referred to secondary for processing. Starting January 1st of next year, the penalty will be $5000 for first attempt at not complying with electronic manifest requirements, then $10,000 for subsequent. In order to file electronic manifests you'll need to apply for a SCAC code, which is $75 USD/year via the NMFTA.  You will also need to apple for ACE Portal access, which is the US government's free solution for filing. There are third party providers but their pricing models are not really targeted at lower volume individuals/small businesses. ACE Portal access approval can take several weeks so you may want to start looking into this sooner rather than later.

TLDR everything crossing the US border now has to be filed electronically. If you weren't following proper procedures before and not declaring your packages, get on board with official procedures or expect a very expensive trip if you cross next year.

[anewleafresale]

Which crossing location?

[a52split]

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@anewleafresale wrote:

Which crossing location?

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Point Roberts WA.

[anewleafresale]

Thanks for so much helpful info.  I've finally been able to set up my ACE account and I'm attempting my first manifest.  When I try and save the manifest, it sends an error saying I do not have a DOT code.  Can anyone help me with this?  Do I need to apply for this??

[ichopshop]

Just use 999999.  I think it will let yo submit even with that error though.

Ian

[hlmacdon]

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@anewleafresale wrote:

Thanks for so much helpful info.  I've finally been able to set up my ACE account and I'm attempting my first manifest.  When I try and save the manifest, it sends an error saying I do not have a DOT code.  Can anyone help me with this?  Do I need to apply for this??

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I've not come across that error before. You do not need a DOT code. If it persists call the ACE support line and they can help explain why you may be getting that.

As a side note anyone without an emanifest was being hauled into secondary at the border crossing today. 

[ichopshop]

When setting up the account for Carrier information, if you don't put a DOT number in you'll get that error (as I did).  The "Welcome to ACE setup guide says to use 999999 as your DOT # if you don't have one.

Ian

[a52split]

Has anyone heard of any $5000 fines yet?

Is anyone still able to use the old forms and method?

[rose-dee]

Many thanks for posting these warnings (and the details).  You've done a real public service to Canadian eBay sellers.   Even though I'm personally not in a position to have to deal with this (I live nowhere near the border), it will be essential information for many who do. 

As an aside, I'm wondering whether the current U.S. government shutdown will affect customs and border crossing generally from Canada?  Are the U.S. border agents involved?  If so, perhaps they're considered "essential" so will be working without pay, meaning Canada Post flow over the border will continue more or less as usual?  I'm curious whether anyone has heard any news on this.  

[recped]

US Customs & Border Protection are working (but not getting a pay cheque).

I haven't heard of any reports that they are calling in sick as some of the TSA people are.

[tryubik-useonlyasdirected]

Amazingly helpful thread.  Thank you everyone!  This is the most help I have been able to find since the government shut-down started and Amy Hatfield has not been available for contact.  And by far the most replete.

Does anyone know if Form 7523 (for completely Duty Free objects) can still be supplied with a paper manifest? Is it a supplementary with eManifest for S321 items? Or do under $800 items duty free qualify for an eManifest as well as dutiable items?

* * runs off to file for a SCAC no. - shall return **

[tryubik-useonlyasdirected]

Yes, some of Customs is affected. The point of contact for people looking to apply for the new eManifest guidelines is now "not available due to the current shut-down". She was very helpful in providing information during this process. Once she was shut-down it has been crickets. I'd be nowhere if it wasn't for the help in this forum.

Speaking of which:

People at the Ace help line have not answered my question.

Can someone here answer a question regarding the field in Section A, "Account Fiscal End Date". Is this the fiscal end date of your company? Or is this a field that only applies if you already have an account?

Any help in this matter would be greatly appreciated.

[hlmacdon]

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@rose-dee wrote:

Many thanks for posting these warnings (and the details).  You've done a real public service to Canadian eBay sellers.   Even though I'm personally not in a position to have to deal with this (I live nowhere near the border), it will be essential information for many who do. 

As an aside, I'm wondering whether the current U.S. government shutdown will affect customs and border crossing generally from Canada?  Are the U.S. border agents involved?  If so, perhaps they're considered "essential" so will be working without pay, meaning Canada Post flow over the border will continue more or less as usual?  I'm curious whether anyone has heard any news on this.   

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The more everyone shares their experiences here (as others in this thread!) the more it helps everyone. Operations at the border are continuing as normal and unaffected, at least from an end user point of view.

[hlmacdon]

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@tryubik-useonlyasdirected wrote:

Does anyone know if Form 7523 (for completely Duty Free objects) can still be supplied with a paper manifest? Is it a supplementary with eManifest for S321 items? Or do under $800 items duty free qualify for an eManifest as well as dutiable items?

* * runs off to file for a SCAC no. - shall return **

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At the border crossing I use they are still working through the education process with individuals crossing without emanifests. I seem them hauled in on a regular basis but have no idea if they are turning people around or letting them through after a stern warning. Call ahead and ask. Everything is to be on an emanifest. Totals under $2500 (USD) are an informal entry, anything over that need to have bonds posted so would typically be done through a broker/bonded carrier. Anything under the de minimus is a section 321 entry and you do not require the paper form to accompany/supplement an emanifest, the emanifest replaces that. 

[momcqueen]

This thread follows an area that I know absolutely nothing about so it’s all new material to me. Thank you for keeping us posted; it’s very valuable recon and intel.

[tryubik-useonlyasdirected]

It will be a relief once this shut-down debacle is resolved and everyone can be back to work with pay proper.

The last eMail I received from Hatfield stated that any entry under $2500 that has no duty when levied against the tariff code can still be placed as a Form 7523. "The paper form 7523 is an exempt manifest based on CBP regulations (specifically 19 CFR 123.92)."

Unfortunately she's unavailable and this is NOT verified. But when she comes back I'll check into it more as this may save a lot of people the hassle of worrying about the S321 application procedures. As long as you are CERTAIN there is no duty on any item your bringing over.

I was more wondering if there was an electronic version of the 7523 if having to go through all the hassle for S321's anyway. And if anyone knew if they were manifested separately. The ACE system is completely foreign and I'm yet to gain access (applying today 24hrs after receiving a SCAC).

Does anyone know a good HTS duty calculator? At the moment I use a mix between Freightos, Canada Post & the HST Code directory on the CBP website. But I'm always paranoid about getting the correct code (especially when over $800).

Knowing all the trade rules is impossible. I know Antiques, Numeristics, Non CITIES etc Historicals, and Original Artworks are considered Duty Free up to $2500. But vintage items are variable. And ITALY is a red flag for duty officers. But knowing the difference could help if you make sales over $800 as they can still cross using the 7523. (Just to find out if it is a paper 7523 or a digital one.)

[hlmacdon]

I'd definitely reconfirm that, but more to the point I would ask if the border staff are aware of the differentiation. From all recent conversations at the crossing they are still telling crossers in private vehicles (ie the paper form crowd) everything needs to be in the ACE system. The communication hasn't been great but that is bureaucracies for you.

At this point I have emanifests down to a very short procedure (most of my customer base are repeat buyers so you can just used stored addresses) and it makes crossings as quick and easy as can be as everything is prescreened before arrival. I cross regularly so for the small annual renewal fee it is more than justified in the time saved going back and forth over the usual Q&A.

From what I understand all of the ACE support staff are off while the shutdown continues. The only time they are being staffed is when there is a system outage. Thankfully so far I haven't encountered any service disruptions but I usually file the day prior to avoid surprises. 

As far as correct codes, brokers are your friends (for a fee) there or if you sell in a consistent category of products you can contact CBP for a classification determination. Determining the right code to use can be a royal pain as the lists are really outdated in some of the categories and several could potential apply at varying rates. 

[tryubik-useonlyasdirected]

Update on Shipping:

Crossed yesterday with 1st attempt under the new ACE eManifest system. @hlmacdon is correct - it is quirky. Save the form at every chance you get! If you are using different eForms try and submit them in order. (ie. all s321's first then any 7523s).

Be prepared to be pulled over. They appear to be checking new users to make sure they have their physical paperwork ready and in order. Bring all your invoices over and have the corresponding unique shipment code marked clearly on each invoice and on each package. Have the invoices in the same order as on the eManifest. And if using an electronic 7523 have a paper version attached to the beginning of all 7523 invoices. For 7523's make sure to include the 2-Digit Country Code in the eManifest description.

There appears to be some confusion regarding 7523s, two different officers gave us two different answers. One wanted a paper 7523 to be handed in with the Cover Sheet and the other wanted a digital submission & physical version only included with corresponding paperwork. Hatfield suggested paper only and stated officers tend to prefer the ACE version (I'll clarify with her and post back because the confusion seems to extend into the ACE). My advice: if you can use s321 just keep it on the same form.

Other than my paperwork not having a physical 7523 the eManifest submission was correct (thank you @hlmacdon). And they were very helpful in guiding me through the method they preferred.

FYI: They wanted HTSUS codes (luckily only for the 7523's). While the eManifest process doesn't ask for HTSUS codes know them else the officers may make you find them MANUALLY using the giant book of HTSUS codes. Luckily I happened to know where to find ours. Possibly include them in the eDescription behind the country code?

For a seller who has few repeat buyers and lots of unique ones - ACE is a lot of paperwork.

[tryubik-useonlyasdirected]

Curious what method others use for the unique shipment numbers in ACE?

As they need to be unique we use the date and the sale number (ie. 0001 if its the first sale of the year). Does anyone use the eBay item no. (these are unique, correct)?

This way the number is already on the invoice and only requires writing on the box.

[ichopshop]

Why not just use the ebay record number for each shipment?  That's what I do.

Ian

[tryubik-useonlyasdirected]

In addendum: Duty Free Form 7523 is still paper only. This means paintings and antiques can be transported over the border the usual way - paper form only with commercial toll.

This was both verified by the point of contact and successfully carried out on our last trip.

Additionally any electronic 7523 flags the system and you will be called to the warehouse for "inspection". The inspection process requires checking of the paper form.

Therefore, it is easiest to submit de minimus s321s on the eManifest with an additional paper only 7523s to the officer at the gate.