CBP - New process for defense contract management agency (DCMA) entry summaries 

July 18:  The U.S. Customs and Border Protection (CBP) today announced changes to the review requirements under its new process for defense contract management agency (DCMA) entry summaries. CSMS #13-000356 (July 18, 2103)

Read the CBP release.

Provisions of the Harmonized Tariff Schedule of the United States (HTSUS) allow duty-free treatment for articles for military departments when the materials are certified the CBP Commissioner.

Prior to this week, there was a 100% review requirement for these entries because the duty-free certificate had to be reviewed against the entry summary. CBP has reduced the review requirement from 100% to a percentage that reflects effective risk management.

Also, under the new process, receipt of a duty-free certificate (if one is received when there was no “initial documents required” message) is to be returned with a note stating that the documentation is to be maintained and provided if requested by the CBP.

CBP will no longer have a paper entry against which to match the certificate.

For those validation activities opened prior to July 18 (i.e., the date of the CBP release), review of the DCMA duty-free certificate against the entry summary will continue as well as other appropriate actions and liquidation of the entry summary.

The change does not affect processing of “P99 entries” and is strictly in reference to the HTSUS 9808 merchandise heading concerning a military contractor.

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich

(312) 665-1022

Andrew Siciliano

(631) 425-6057

John L. McLoughlin

(267) 256-2614

Todd R. Smith

(949) 885-5617

Luis A. Abad

(212) 954-3094

Amie Ahanchian

(202) 533-3247

Or your local KPMG Trade & Customs professional.

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