(Sung to the tune of: Where Have All the Flowers Gone? With apologies to Pete Seeger.)

Importer: Where have all the entries gone?

Broker: You don’t need them!

Importer: Where have all the entries gone?

Broker: They’re not required?

Importer: Where have all the entries gone?

Broker: Gone to data everyone.

Importer: When will they ever learn?
The (a)(1)(A) list really burns!
When will they ever learn?

There he goes again! What’s your beef this time, John?

My beef, as you call it, has to do with a common misconception regarding record retention of the Entry Form. The entry commonly is referred to by the term, ID, for Immediate Delivery, or often by its form number, 3461.

As you might surmise by the title of this article, it seems importers are failing to maintain this document within their files or perhaps not receiving it from their brokers.

What do you mean? I get a copy of my broker’s invoice along with the invoice, packing list, bill of lading and the entry, right?

Perhaps you do. Look closely however. What you think is the entry form may be U.S. Customs and Border Protection (CBP) Form 7501 or the Entry Summary. This is a necessary form as well. Indeed the regulations require the importer to maintain any document that was needed for the entry of merchandise into the United States:

The Tariff Act of 1930, […], requires the production, within a reasonable time after demand by the Customs Service is made […] if ‘‘such record is required by law or regulation for the entry of the merchandise (whether or not the Customs Service required its presentation at the time of entry).’’ […] the Tariff Act of 1930, as amended […] requires the Customs Service to identify and publish a list of the records and entry information that is required to be maintained and produced under subsection [“the Tariff Act”]. This list is commonly referred to as ‘‘the (a)(1)(A) list.’’ (Excerpted from the Appendix to CFR 19 §163.)

So, John, I still don’t understand your concern. The 7501 has all of the same data on it that is on the 3461, right?

Yes and no. While there is data overlap between the two documents, the Entry Form 3461 and the Entry Summary Form 7501 play different roles in the import process. The 3461 is, in essence, your permission slip to bring your products into the United States. Your broker submits this form via data transmission and Customs responds in kind with an electronic signature permitting your product to proceed into the U.S.

On occasion CBP may request that your broker print the form and submit it with supporting documents (invoice, packing list, bill of lading, etc.) for review by an import specialist. The import specialist may make notes on the document and will sign it as approved for entry once s/he is satisfied that it accurately represents the cargo.

As an importer I would want to have proof that my broker had received the appropriate release from Customs before arranging final delivery into the U.S. The release should be shown on the Entry by either an electronic, human or other mechanical signature. Typically the Entry will have a statement on the bottom detailing electronic release and a date.

The Entry Summary Form 7501, on the other hand, documents payment to the government of duties, fees and taxes. In essence it is receipt.

Why does my broker tell me I don’t need a copy of the Entry form 3461?

1. Perhaps your broker is mistaken.

In the above citation from the regulations 19CFR §163 is a reference to the (a)(1)(A) list. This list clearly mentions the requirement to maintain the Entry Form 3461.

2. Perhaps your broker is confused.

Most brokers have automated their entry processes so that, to the individual clerk, the entry appears to be a one-step process. What the clerk may not realize is that behind the scenes their system is performing a two-step consumption entry that submits both the Entry and Entry Summary data to CBP at the appropriate times.

3. Perhaps your broker is right! (Ouch, it hurt to admit that!)

There are types of entries that do not use the 3461. An example of such an entry would be the one-step or so-called “live” entry. In this instance the entry is made using the 7501 as both entry and entry summary. An example of a one-step entry would be a warehouse entry.

Most importers, however, are submitting two-step consumption entries. If the entry type in block 2 of the 7501 states 01 for consumption entry and there is no further initial “L” or the word “Live” following, you can be reasonably certain you should also have a 3461 within your file

4. Perhaps you have an EDI exchange with your broker?

Some larger importers have initiated steps to obtain data files from their brokers. In that case, there simply might not be a paper document. These importers maintain alternate recordkeeping systems approved by Customs. When requested, they must still be able to generate the appropriate form.

Bottom-line it for me, John!

There must be a sizeable penalty involved if you are spending so much time on this little issue. As a matter of fact there is. Simple negligence penalties for failure to maintain and retrieve records start at $10,000 or 40% of the appraised value, whichever is lower, for each entry. If the failure to comply is a result of the willful failure of the importer to maintain or retrieve records, the importer may be subject to a penalty of $100,000 or 75% of the appraised value of the merchandise, whichever amount is less, for each entry.

Oh. Sorry I asked!