NCBFAA/ACE SOFTWARE VENDOR SESSION Entry …

1 Monica crockett , Director, Entry summary Accounts & Revenue ACE Business Office NCBFAA/ACE SOFTWARE VENDOR SESSION Entry summary Validations February 25, 2014 Overview Increment 1: HMF Validations There is no tolerance for this comparison calculation The validations are using the value of goods amount (whole dollar amounts) from the 50-records on the AE to perform the comparison calculation Increment 2: Classification Validations Applies to ACE Entry Summaries with 1 or 2 HTSs on the line If there are more than 2 HTSs on the line, ACE will accept the classification provided the line passes all other validations Increment 3: Simple Duty Calculation Validations Applies to ACE Entry Summaries with 1 HTS on the line If there are 2 or more HTSs on the line, ACE will accept the duty submitted provided the line passes all other validations Increment 4: Complex Duty Calculation Validations and MPF Validations Applies to ACE Entry Summaries with 2 HTSs on the line If there are 3 or more HTSs on the line, ACE will accept the duty submitted provided the line passes all other validations.

2 MPF validations will apply to both formal and informal ACE Entry summaries. Increment 5: Informal Restrictions, Taxes, Other Fees, and Charges Restrictions Duty Calculation Process Flow Start Evaluation Pre-Evaluation Determination Conditions Found? End YES How many HTSs? Determine Duty Method Conventional Duty Calculation and Comparison to submitted duty Derived Duty Calculation and Comparison Additional Duty Calculation and Comparison Replacement Duty Calculation and Comparison End (notify filer) 1 HTS 2 HTS More than 2 HTS NO Duty Method Examples Replacement Duty Example: Temporary rates CO: AU (AUSTRALIA) HTS 1: (AU FTA,2103204020>=$.756 KG) HTS 2: (OTHR TOMATO SAUCES < KG) Replacement duty rates comes from the 9913 number. Additional Duty Example: Watch CO: KR (KOREA) HTS 1: (OTH WATCH CASE OTH, 8-17 JWLS) HTS 2: (OTH WATCH ST, BAND/BR OTH,8-17J) Both duty rates are used; results are added together.

3 Derived Duty Example: Textile ensemble CO: MY (MALAYSIA) HTS 1: (ENSEMBL,SKIRT/DIV S,ART F, W/G) HTS 2: (SKIRT/DIV,ARTFCL FB,OTHR,WOMEN) Rate of the 2nd HTS used and then multiplied by the 1st HTS number s factor (%). Error Condition Codes NOTE: For Deployment B, error condition code #628 applied to ACE Entry summary lines with 2 or more HTSs on the line. For Deployment C, error condition code #628 will apply to ACE Entry summary lines with 3 or more HTSs on the line. Error (Condition Code) Narrative Text Explanation 622 Duty Accepted; "X" Duty Comp Code Informational message. 623 Duty Accepted; Unsupported Formula Informational message. 624 Est Duty/Calc d Duty Mismatch - Line If a "Duty Free" Trade Agreement/Special Program Claim Code is reported in the 40-record, positions 25-26 for this line and accepted, no duty must be reported in the 50-record for this line. The duty calculated for the Entry summary line item does not match the estimated duty as reported on the line.

4 Each line on the Entry summary should reflect the exact duty amount due based on the duty rate applicable to the tariff number. However, CBP systems allow a difference per Entry summary line of up to $ between the calculated duty and the amount reported by the filer. 625 Duty Not Allowed - Set Component If the line item details as reported in the 40-record indicate that the line is a set component, that is, the article set indicator reported in position 8 = "V", then duty cannot be reported on this line - only on the set header (if duty applies). 626 Duty Accepted; HTS or Other Exception Informational message. 627 Est Duty/Calc d Duty Mismatch - Total Each line on the Entry summary should reflect the exact duty amount due based on the duty rate applicable to the tariff number. However, CBP systems allow a difference per Entry summary line of up to $ between the calculated duty and the amount reported by the filer.

5 The $ difference also applies to the Entry summary as a whole. Individual lines may be discrepant up to $ , however, the Entry summary will be rejected if the estimated total duty amount as reported in the 90-record, positions 3-13 is $ more than or less than the amount calculated by CBP systems for all lines on the Entry summary . 628 Duty Accepted; Complex Line Informational message. Merchandise Processing Fee Validations Take the following into account: oEntry Type oReporting Requirements oReporting Restrictions oExemption Determination oException Line Determination oFree Trade Agreements oPreferential Trade Legislation oMin/Max Determination oLine MPF Amount Comparison oTotal MPF Amount Comparison Error Condition Codes Error (Condition Code) Narrative Text Explanation 629 Formal MPF Not Allowed - Set Component If a formal class code '499' fee has been submitted for the line but the line is a 'set component' type (pos 8 of the 40-Record = 'V'), this error will result.

6 630 Formal MPF Not Allowed - Infrml summary If a formal class code '499' fee has been submitted for the line but the Entry Type is an informal type ( , '11'), this error will result. 631 Line Not Evaluated for MPF Exemption This information condition may be generated in a scenario where a line's MPF exempt status cannot be determined. 632 Formal MPF Not Allowed - Article Exempt If a formal class code '499' fee has been submitted for the line of a formal summary but the article is MPF exempt, this error will result. 633 Formal MPF Required - Article Not Exempt If a formal class code '499' fee has not been submitted for the line of a formal summary but the article is not MPF exempt, this error will result. 634 Est MPF/Calc'd MPF Mismatch - Line If a formal class code '499' fee has been submitted for the non-exempt line of a formal summary but the amount is the incorrect product of 'value times rate', this error will result.

7 635 Infrml MPF Not Allowed- summary Exempt If an informal class code '311' fee has been submitted for an informal summary but the summary is MPF exempt, this error will result. 636 Infrml MPF Required- summary Not Exempt If an informal class code '311' fee has not been submitted for an informal summary but the summary is not MPF exempt, this error will result. 637 Infrml MPF Not Allowed-Formal summary If an informal class code '311' fee has been submitted for the summary but the Entry Type is a formal type ( , '01'), this error will result. 638 Infrml MPF Fixed Amount Incorrect If an informal class code '311' fee has been submitted for a non-exempt informal summary but the amount is not the fixed amount, this error will result. (Note amount exceptions for consolidating summaries and fixed transport shipments.) 639 Formal MPF Minimum Amount Required If the system computed amount of MPF for the summary is less than or equal to the minimum MPF amount owed and if a formal class code '499' total fee has been submitted in the 89-Record but is not this minimum amount, this error will result.

8 640 Formal MPF Maximum Amount Required If the system computed amount of MPF for the summary is equal to or greater than the maximum MPF amount owed and if a formal class code '499' total fee has been submitted in the 89-Record but is not this maximum amount, this error will result. 641 Est MPF/Calc'd MPF Mismatch - Total If the system computed amount of MPF owed on the summary falls in between the minimum and maximum and if a formal class code '499' total fee has been submitted in the 89-Record, but is not this amount (within a tolerance), this error will result. 642 ESV Failure <reason description> This information condition may be generated in a scenario where an internal system problem has been encountered. Note that the text may include a detailed reason. Wait a few minutes and retry/retransmit the transaction. It is possible that a system resource was temporarily unavailable.

9 Informal Entry summary Filing Restrictions Validations Take the following into account: Entry Type Personal Shipment Restrictions Commercial Sample Shipment Restrictions Commercial Sample Article Co-Mingling Restriction Commercial Sample Exception Article Total Value Restriction Regular Shipment Restrictions Total Value Acceptance Allowance Total Value Restrictions Error Condition Codes Error (Condition Code) Narrative Text Severity 644 USAGE NOT ALLOWED FOR CNSL SUMM F 645 HTS / SHIPMENT USAGE REQS FORMAL Entry F 646 ARTCL VALUE EXCEEDS INFRML LIMIT FOR HTS F 647 COMMRCL SAMPLE ARTICLE COMBO NOT ALLOWED F 648 TOTAL VALUE EXCEEDS INFRML LIMIT F Internal Revenue Tax and Agriculture Management Service Fees Validations Take the following into account: Line Type Reporting Restriction Port Reporting Restriction HTS Reporting Restriction HTS Reporting Requirement Line Amount Comparison Total Amount Comparison Note: Excludes Cotton Fee (Any 053 cotton fee/amount will be accepted until addressed.)

10 Error (Condition Code) Narrative Text Severity 649 IR TAX NOT ALLOWED - SET HEADER F 650 AG FEE NOT ALLOWED - SET HEADER F 651 IR TAX NOT ALLOWED - EXEMPT PORT F 652 AG FEE NOT ALLOWED - EXEMPT PORT F 653 IR TAX NOT ALLOWED FOR ARTICLE F 654 AG FEE NOT ALLOWED FOR ARTICLE F 655 IR TAX REQUIRED FOR ARTICLE F 656 AG FEE REQUIRED FOR ARTICLE F 657 IR TAX ACCEPTED; 'X' COMP CODE I 658 AG FEE ACCEPTED; 'X' COMP CODE I 659 EST TAX/CALC D TAX MISMATCH - LINE F 660 EST FEE/CALC D FEE MISMATCH - LINE F 661 EST TAX/CALC D TAX MISMATCH - TOTAL F 662 EST FEE/CALC D FEE MISMATCH - TOTAL F Error Condition Codes Shipping Charges Filing Restrictions Validations Take the following into account: Zero Charges Reporting Allowance Zero Charges Reporting Restriction Entry summary Validations Completed in Increments 1-4: Maintenance Fee (HMF) Calculation (Simple and Complex) Processing Fee (MPF) Planned for in Increment 5: Restrictions Fees Restrictions Remaining Validations: , Permits, Certificates Usage Restrictions *Quota Restrictions