CBP Lists its Common Reasons for Detaining, Seizing Exports

U.S. Customs and Border Protection has posted the presentation from its June 10, 2010 webinar on outbound issues, such as CBP’s role in export enforcement, the filing of electronic export information, etc. During its webinar, CBP officials addressed the issue of detaining and seizing exports, highlights of which include:

Five Step Detention and Seizure Process

CBP’s presentation outlines its five step process for the detention and seizure of exports as follows:

• Port inspection and detention -- examine export documents
• Referral to the appropriate Regulatory Agency -- CBP officer forwards the relevant shipment information to the appropriate regulatory office for review and a licensing determination
• Licensing determination made -- the regulatory agency makes a determination on the detained merchandise and provides CBP with the information.
• The port is notified with the necessary information concerning the licensing determination.
• Release or seize -- the CBP officer then notifies the exporter of the determination and either releases or seizes the merchandise.

Common Reasons for Detentions/Seizures Include Late AES Filings by 3rd Party “Batchers”

CBP’s presentation also listed a number of common reasons for detentions and seizures, including:

• The absence or late filing of the Electronic Export Information (EEI) in the Automated Export System (AES). Late filing of AES commodity data subjects the shipment to seizure. CBP has found that many times the USPPI has submitted the information to a third party for completion of the AES transmission. The third party, in turn, “batches” the transactions and they are filed on a daily basis. This process causes the AES filing to be either not in the system or late.
• If the commodity has been declared as under $2500 and invoicing or other documents show that it clearly is over $2500, the cargo is subject to seizure.
• Exporters who fraudulently declare cargo as under $2500 in order to avoid completing AES filing will be referred to fraud investigators for criminal prosecution.
• Claiming an ITAR exemption rather than getting a Department of State License.
• Failure to file AES on USML goods.
• Failing to obtain DSP-61 licenses for USML in-transit movements through the U.S.
• Paperwork for a licensed commodity is not transmitted within the correct time frame and the commodity is at the dock.
• Failure to claim a license or license exemption.
• Parties to the movement of the cargo not listed on the license.
• Indicating a license on the EEI that has nothing to do with the shipment.
• For licensable cargo, using a forwarder that is not an approved freight forwarder.
• Exporters using the ITAR exemptions in situations where they do not apply.
• Using the AES Canadian exemption on CCL/USML exports.
• Failing the submit AES filing on DSP 61/73 exports.
• Failing to submit ECCN # on AES submissions.
• Submitting the wrong mode of transportation.

(See ITT’s Online Archives or 06/16/10 news, 10061682, for previous BP summary on CBP’s outbound issues webinar during which CBP officials stated that they had is during which CBP officials stated that they had issued 1,300 penalties for EEI filings in the last six months.)