SCBPO Farrah McCrillis Welcome Cargo Exam Process Workshop Wednesday, Sept 28, 2016 Speakers:  SCBPO Farrah McCrillis SCBPAS Thomas Sherman CBPO Greg Starr CBPO Larry Wong

About CBP With more than 60,000 employees, CBP is one of the world's largest law enforcement organizations and is charged with keeping terrorists and their weapons out of the U.S. while facilitating lawful international travel and trade. As the world's first full-service border entity, CBP takes a comprehensive approach to border management and control, combining customs, immigration, border security, and agricultural protection into one coordinated and supportive activity. The men and women of CBP are responsible for enforcing hundreds of U.S. laws and regulations. On a typical day, CBP welcomes nearly 1 million visitors, screens more than 67,000 cargo containers, arrests more than 1,100 individuals and seizes nearly 6 tons of illicit drugs.

Cargo Security and Examinations Each year, more than 11 million maritime containers arrive at our seaports. At land borders, another 11 million arrive by truck and 2.7 million by rail. We are responsible for knowing what is inside, whether it poses a risk to the American people, and ensuring that all proper revenues are collected. Working with the trade community, programs like the Container Security Initiative and the Customs-Trade Partnership Against Terrorism help to increase security and safeguard the world's trade industry.

Does CBP Charge for Exams? Under Title 19, section 1467, of the United States Code (19 U.S.C. 1467), CBP has a right to examine any shipment imported into the United States and it is important to know that you, the importer, must bear the cost of such cargo exams. Per the CBP regulations, it is the responsibility of the importer to make the goods available for examination-- "The importer shall bear any expense involved in preparing the merchandise for CBP examination and in the closing of packages" (19 C.F.R. 151.6). Household effects are not exempt. No distinction is made between commercial and personal shipments.

Does CBP Charge for Exams? In the course of normal operations, CBP does not charge for cargo examinations. However, there may still be costs involved for the importer. For example, if your shipment is selected for examination, it will generally be moved to a Centralized Examination Station (CES) for the CBP exam to take place. A CES is a privately operated facility where merchandise is made available to CBP officers for physical examination. The CES facility will unload (devan) your shipment from its shipping container and will reload it after the exam. The CES will bill you for their services. There are also costs associated with moving the cargo to and from the exam site and with storage. Rates will vary across the country and a complete devanning may cost several hundred dollars. The CES facility fulfills the needs of both CBP and the importer by providing an efficient means to conduct exams in a timely manner. CES facilities are discussed in part 118 of the Customs Regulations.

Types of Exams Anti Terrorism Contraband Enforcement Team (ATCET) Inbound/outbound interdiction of terrorism, narcotics, contraband, currency, and weapons. In-Bond Enforcement Exam (IBET) This is the work unit charged with intercepting high-risk shipments that are moving in-bond through the commerce of the U.S. for IPR, smuggling and other trade violations. Agriculture Exams

Types of Exams Merchandise Enforcement Team Exams (MET) The Merchandise Enforcement Team (MET) is a work unit responsible for the examination, detention, release or seizure of inbound cargo. This process includes, but is not limited to, commercial cargo examinations at CES locations, at vessel terminals, or at other warehouses. Other Government Agency Exams EPA/FDA/CPSC…

Public Bulletin LA14-013 ACE is the official means of issuing electronic notifications for movement of containers to any Centralized Examination Stations (CES). Manifest Holds and Transfer for Exam notifications take precedence over any other release documents or movement authorizations until the CBP hold is removed. Transfer for Exam permits will post a 1X disposition code in ACE for an ATCET, Trade, and Agriculture exams. Please take note of “1M” messages that are used to further clarify CBP’s examination requirements.

Manifest Holds HOLD TYPE DISPOSITION Non Intrusive Inspection (X-Ray) 7H NII Exam Ordered Importer Security Filing Hold 2O ISF Hold CBP Agriculture Examination 71 CBPA Intensive Hold placed at the port of discharge CBP Examination 1H CBP hold placed at the port of discharge This includes ATCET, IBET, and MET

How to Distinguish what type of exam? Please pay attention to the public remarks that are posted against the hold. ENFCES are designated to the ATCET CES and drayed by the ATCET CES proprietor’s truck drivers. TECES are designated to the IBET CES and drayed by the IBET proprietor’s truck drivers. TCCES and AQCES are designated to any one of the trade CESs selected by the broker and/or importer. The only authorized CESs for the LA/LB Seaport are Price Transfer W344, FCL Logistics W493, and Cal Cartage W517.

ACE Cargo Release Entry Holds Three types of holds: Bill holds Not Released (Bill/Manifest Hold): This status indicates a manifest hold on a BOL associated with an entry. Document Required As a general rule, this status indicates document(s) are required to release an entry. Trade users should submit documents via the Document Imaging System (DIS) Intensive This status indicates an intensive exam is required on an entry.

ACE Selectivity Entry Exam Process At the time of entry, is there a release? Pending, Admissible, Not Released, Document Required, or Intensive. Please take note of the Variable Release Window timeframes and check SO messaging. Upload documents onto DIS. 3461 is not required. For Intensive exams, once Documents are uploaded onto DIS, CBP can issue the transfer for exam (1X). Note: a transfer for exam will be issued for full containers only. LCL shipments will only have an intensive status and will be directly referred over to MET CES once documents are uploaded onto DIS. For full containers, please allow up to 72 hours for a transfer for exam to be issued after documents have been uploaded onto DIS. Intensive Exam information is forwarded to MET CES.

ACE Cargo Release (ACR) Entries from Selectivity to MET CES MET uses an internal CBP database to capture ACR referrals or entry records that were previously completed by Selectivity. They are then sorted by firms codes for each selected exam site and submitted to each CES Proprietors the same day. This is excluding the A-TCET CES at Price Transfer (Wilmington) and the IBET Team at California Cartage Company Once ACR entries have been sorted by each CES, the list is then exported to an excel file and CBP conducts a final review for accuracy. This process is to ensure that all fields (Entry #, MBL, Container #, Cargo Configuration, Commodity, Quantity, Importer Name and Importer Number, Date Referred, and C-TPAT status) have been filled out by the referring officers The formats are the same for each trade CES (i.e. W344 - Price Transfer Dominguez, W493 - FCL, W517 – California Cartage Company)

ACE Cargo Release (ACR) Entries from CBP MET to CES cont. These lists are then electronically submitted promptly by email to the corresponding CES so that tracker numbers can be issued – ACRMET@Calcartage.com FCL Logistics <fclexams@fcllogistics.com> Dominguez Dominguez@pricetransfer.com Once received by each CES, tracker numbers are generated for each entry, then - Brokers coordinate with Terminals and CES for container movement of FCL cargo , or Brokers coordinate with CFS and CES for freight movement of LCL shipments

ACE Cargo Release (ACR) Entries with Missing Documents in DIS CBP MET Officers contact brokers prior to the exam if required documents (e.g. invoice, packing list, BOL, etc.) are missing in the Document Image System (DIS), via – Telephone or email if contact information are listed in the ACE Portal, CBP Broker/Filer Code List, or simply Google Utilize the “NOTE” function in the CBP ACR GUI system Issue of “no” DOCs in CBP DIS – causes delays in the exam process

ACE Cargo Release (ACR) Entries with Missing Documents in DIS cont. Example of adding a “NOTE” for the brokers in the CBP ACR GUI system – Public Notes are sent to the trade through the ABI Example message - “Upload invoice, packing list, and bill of lading in DIS, contact MET CBPO McCrillis @ 310-763-0601 (or email) for any questions.”

ACE Cargo Release ACR or DIS Inquiries and Issues CBP provides brokers with the following information when required shipping documents have not been submitted through DIS or issues with uploads through the DIS – For questions or issues related to your ACE portal account or DIS upload issues, please coordinate with your client representative or email/call the ACE Service Desk at ACE.Support@cbp.dhs.gov or (866) 530-4172. General ACE questions -  askace@cbp.dhs.gov For questions related to EDI filing, contact your assigned client representative.  If you don't have a client representative, you can call 571-468-5500 to be assigned one Additional questions can be sent to our AskACE mailbox or askace@cbp.dhs.gov Please visit our Frequently Asked Questions page in our CBP website or contact one of the support options below: Please upload entry docs to DIS for MET EXAM and include your Elected Exam Site.  Pending documents may result in a delay in the exam process and release of the cargo You may e-mail entry docs to docs@cbp.dhs.gov for email submission to DIS. The latest instructions for DIS email can be found here: https://www.cbp.gov/document/forms/dis-implementation-guide See Example next page, Appendix B of the DIS Implementation Guide as of May 2016-

ACE Cargo Release ACR or DIS Inquiries and Issues cont.

Cargo Arrives at Exam Site, CES Notifies CBP MET CBP MET is notified by the CES when freight is ready on floor for examination – Providing CBP with a copy of their Control Doc. Sheet which indicates the basic entry information and where the freight is staged for exam CES logs these entries for their record and provides CBP with the Time and Location on Floor, etc. Entries are then assigned to the MET CBP Officers for examination CBP Determines - Release Detention OGA (CPSC, EPA, DOC, DOT, etc.) Seizure of freight

Agriculture Processing In ACE Agriculture Mission Documents in the DIS Agriculture Hold types Agriculture Exam types

AGRICULTURE MISSION To protect American Agriculture from any invasive species, plant disease, soil, and federal noxious weeds Agriculture Specialists check containers for compliance and/or smuggled agricultural products Packaging materials may contain invasive species that could harm our agriculture and environment

REVIEW DOCUMENTS IN THE DIS Agriculture Specialists require the master bill, invoice, packing list, and any other document that is required for regulation Phytosanitary certificates, foreign government veterinary certificates, USDA veterinary permits, CITES documents, PPQ 203, and FSIS forms All docs should be put into the Document Imaging System (DIS), even the ones that are required to be filed in their original form

REVIEW DOCUMENTS IN THE DIS Some of the documents may be returned to the broker after CBPAS have reviewed them CBPAS will message in DIS notes for additional information or rejection

Filing Original Documents Dedicated bin in selectivity on the 8th floor for all paper documents required to be filed Please do not use the formal entry bins for DIS requested documents (documents will take longer to process)

Public Bulletin LA 16-004 on March 17-2016 Used when paper documents are required for regulation Must have a cover sheet with the entry number, bill of lading number, broker name, broker contact information, and broker box number. Please do not submit packing list, invoices, bill of ladings, and other documents. Only the ORIGINAL document is needed.

DIS Messages Sent from CBP Documents required Select exam site Documents do not match the documents submitted Pending original permits or certificates Send originals Upload documents to DIS

Agriculture Hold Types ADOC - documents are required for the shipment. May lead to an exam or may be released on document review. Please select CES. AQCES - documents are required for the shipment. Please select exam site. AIBET - no documents are required for this shipment. Documents will be required upon request. The exams may take place at the terminals or be directed to the warehouse.

Exam Site – Select When Entry is Filed W344 Price Dominquez W493 FCL W517 Cal Cartage

Agriculture Exam Types on Cargo Three CESs and terminal exams Exam rates vary based on commodity and risk USDA has policy oversight on exam protocols

Contacts Selectivity/Trade Interface Unit (TIU) – Permit to Transfer, In-Bond, Entry Release/Holds Email: LALB-TIU@CBP.DHS.GOV ISF Holds Please contact ATU Email: LALBATU@CBP.DHS.GOV NII/ATCET Holds Please contact ATCET Email: LALB-ATCET-WAREHOUSE@CBP.DHS.GOV IBET Exam Email: LALBIBET@CBP.DHS.GOV Email: LALB.IBETAG@CBP.DHS.GOV MET Exam Please contact the CES https://www.cbp.gov/contact/ports/los-angeleslong-beach-seaport

Questions?