CSMS #48501903 - Drawback: Merchandise Processing Fee (MPF) Apportionment on Exempt Merchandise

U.S. Customs and Border Protection sent this bulletin at 06/15/2021 12:08 PM EDT

Cargo Systems Messaging Service

CSMS #48501903 - Drawback: Merchandise Processing Fee (MPF) Apportionment on Exempt Merchandise

CBP is aware of an ACE programming error that affects MPF apportionment calculations. This error prevents the claimant from correctly apportioning MPF drawback per 19CFR190.51(b)(2) when the designated entry includes merchandise not subject to MPF.

Until a fix has been deployed, claimants that receive error code F555 ‘EXCESS MPF CLAIMED’ as a result of this specific programming error should take the following steps to file their claim:

1. All fatal transmission errors other than error F555 must be corrected by the filer. For troubleshooting transmission errors, filers should refer to the following:

a. ACE Business Rules (ABR) section 14.5

b. Drawback Error Dictionary found on CBP.gov

c. CSMS #44097386 for revenue errors

2. Designated entries that do not fail the validations should be filed normally.

3. Designated entries that receive the subject MPF error should be filed accordingly:

a. Submit the claim with MPF apportioned across the entry lines that are subject to the fee;

b. Retain a copy of the ACE rejection message that’s limited to fatal error code F555;

c. Resubmit the claim without the MPF subject to the error.

Upon deployment of the programming fix, eligible claims may be amended (see ABR section 14.13) and the MPF corrected. Claims outside the amendment period may use the copy of the ACE rejection as evidence the MPF drawback claim was filed timely, but rejected in error by CBP; in such cases, CBP will allow the MPF to be amended on the merchandise subject to the programming error.

A follow-up CSMS will be issued when the programming fix referenced above has been deployed.

Questions regarding this update may be directed to OTDRAWBACK@cbp.dhs.gov

Drawback Website: https://www.cbp.gov/trade/programs-administration/entry-summary/drawback-overview

Related Message: CSMS#44097386

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