New Ultimate Consignee Reporting Requirements Have Taken Effect

As a direct result of the aftermath of the terrorist attacks of September 11, 2001, the Bureau of Customs and Border Protection (CPB) has amended the requirements concerning identification of the ultimate consignee for merchandise being imported into the United States. An ultimate consignee is defined as:

The party in the U.S. to whom a shipper has sold merchandise (i.e., the U.S. buyer);

If the merchandise has not been sold at the time of entry or release, the party to whom the shipper consigned the merchandise (i.e., the U.S. consignee);

If the merchandise has not been sold or consigned to a U.S. party, the proprietor of the U.S. premises to which the merchandise has been delivered.

As of October 1, 2004 a formal entry of merchandise will not be permitted entry into the U.S. unless CPB is provided with the ultimate consignee's Internal Revenue Service (IRS) number, Employer Identification Number (EIN), or Social Security Number (SSN).

For informal entries Customs will accept the ultimate consignee's name and address although the entry will not be afforded paperless status which will likely result in a delayed release.

For consolidated entries which are single entries containing multiple consignees, an IRS, EIN or SSN is required for portions of the shipment valued $2,000 or more while the name and address of the ultimate consignee will be accepted for portions of the shipment valued under $2,000.

Merchandise required to be entered under cover of a formal entry and destined for an ultimate consignee based in the U.S. will not be permitted entry unless the ultimate consignee has provided either an IRS, EIN or SSN number.

Merchandise required to be entered under cover of a formal entry and destined for a foreign-based ultimate consignee will not be permitted entry unless the ultimate consignee has obtained an Ultimate Consignee number issued by CBP.

DCWILLIAMS&ASSOCIATES advises importers to be cognizant of these new entry requirements and ensure that the appropriate information appears on commercial invoices and/or is provided to the customs brokers prior to entry in order to avoid costly and easily avoidable delays.

We are available to assist importers and other companies engaged in the international trade of goods and services with regard to this and all other related trade and customs issues.

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