U.S. CUSTOMS PROPOSES NEW RULES FOR SPLIT SHIPMENTS

U.S. CUSTOMS PROPOSES NEW RULES FOR SPLIT SHIPMENTS    The U.S. Customs has proposed new rules that would allow importers to submit a single entry to cover multiple portions of a single shipment which has been split by the carrier and arrives separately in the United States.
   While split shipments can be found in the ocean and land transport environments, it has historically been a problem in the air transport industry. Split shipments often occur as a result of limited space, the need to balance weight, and offloading concerns of planes.
   “Occasionally a shipment may leave the exporting country as one shipment, but be offloaded in a second country, and then be reladen onto more than one conveyance for transport to the United States,” Customs said.
   Under the current regulations, Customs requires that all merchandise arriving on one conveyance and consigned to one consignee be included on one entry. There is no provision currently in Customs regulations that allows the filing of a single entry to cover split shipments.
   The proposed single entry for split shipments is permitted under the Tariff Suspension and Trade Act of 2000. This is how the proposed split shipment process would work:
   * A shipment is delivered and accepted intact by the carrier in the export country under a single bill of lading or waybill to be shipped in its entirety.
   * The shipment is split by the carrier, acting on its own.
   * The split portions of the shipment remain consigned to the same importer in the United States, which is named on the original bill of lading or waybill.
   * Those portions of the split shipment that could be covered under the entry arrive directly from abroad at the same port of entry in the United States within 10 calendar days of the date that first portions arrived.
   Customs said the Tariff Suspension and Trade Act “leaves open the question of whether the various portions of the shipment may be released as they arrive, or whether their release must be delayed until the entire shipment is reunited.” The proposed rules would provide either option to the importer.
   Either way, however, the importer would be required to file Customs Form (CF) 3461 or CF 3461 alternative (CF 3461 ALT), or an electronic equivalent, to cover the merchandise “enumerated” on the invoice to secure its release. This data must also show the total number of pieces and their value on the invoice.
   The agency said importers, however, may continue to file a separate entry for each portion of a split shipment as it arrives in the United States, if they choose. Customs also retains the right to stop individual shipments from the split load for examination.
   Customs will take comments from the industry regarding its proposed split shipment rules through Jan. 15, 2002. For more information, contact Keith Fleming, of Customs’ Office of Field Operations, at 202-927-1049, or Larry Burton of Customs’ Office of Regulations and Rulings, at 202-927-1287.