CSMS # 64859298 - Pipeline Monthly Entry Process Is Limited to Nondutiable Merchandise

U.S. Customs and Border Protection sent this bulletin at 04/25/2025 02:37 PM EDT

Cargo Systems Messaging Service

CSMS # 64859298 - Pipeline Monthly Entry Process Is Limited to Nondutiable Merchandise

This CSMS is intended to remind the trading community that use of the monthly entry process for pipeline-borne crude oil and natural gas is limited to nondutiable merchandise and that any entry for consumption occurring on or after March 4, 2025, and prior to March 7, 2025, is dutiable under heading 9903.01.13 of the Harmonized Tariff Schedule of the United States (HTSUS), for crude oil and natural gas products of Canada, or heading 9903.01.01, HTSUS, for such products of Mexico.

Pursuant to 19 C.F.R. § 141.1(a), duties accrue upon imported merchandise “at the time of arrival within the Customs territory of the United States if the merchandise arrives otherwise than by vessel.” Crude oil from a continuous stream pipeline arrives within the U.S. Customs territory daily, such that it is imported and duties accrue each day. See HQ H272806 (May 14, 2024). Pursuant to 19 C.F.R. § 141.4(a), all imported merchandise is required to be entered unless specifically excepted. For imports of crude oil and natural gas by pipeline, CBP has determined that importers can file a single consolidated monthly entry covering multiple nondutiable daily importations. HQ H272806 (May 14, 2024); HQ W231489 (May 19, 2008).

Although it is common practice for pipelines to use the monthly consolidated entry process, pursuant to Circular ENT-1-AC, issued July 1, 1970, this monthly entry process is limited to nondutiable merchandise. CBP has described the monthly entry process as “a modification of the exiting immediate delivery system to provide for the optional filing of monthly entries to cover high volume, repetitive shipments of nondutiable merchandise.” CBP.gov, Monthly Consolidated Entry of Nondutiable Merchandise (last updated March 6, 2024); see also CBP.gov, Monthly Entry for Pipeline (last updated March 6, 2024). In HQ H256573, dated May 1, 2015, CBP also explained that the monthly entry process established by Circular ENT-1-AC “was only to be applied to ‘free and conditionally free merchandise, consigned from one shipper to one importer thru [sic] one port’” (quoting Circular ENT-1-AC).

Given that the monthly entry program is only applicable to nondutiable merchandise, any imported crude oil or natural gas that is subject to duties, such as duties due under heading 9903.01.13 for crude oil and natural gas products of Canada or heading 9903.01.01 for such products of Mexico, is ineligible for the monthly entry process. Crude oil and natural gas imports subject to duties are thus required to make entry for each daily importation in accordance with all applicable regulations. The “general requirements and procedures for the entry of imported merchandise” appear in Part 141 of CBP Regulations, and include the time of entry provisions appearing in 19 C.F.R. § 141.68. The rate of duty applicable to the entered merchandise shall be the rate in effect at the time of entry. 19 C.F.R § 141.69.

Pursuant to Executive Orders 14193 and 14194 of February 1, 2025, as subsequently amended, articles that are products of Canada or Mexico, respectively, are subject to additional duties under heading 9903.01.10 for products of Canada and heading 9903.01.01 for products of Mexico, unless an exception applies. See 90 Fed. Reg. 11,423 (March 6, 2025); 90 Fed. Reg. 11,429 (March 6, 2025). Crude oil and natural gas products of Canada are subject to a separate additional duty rate under heading 9903.01.13, unless a further exception applies. See 90 Fed. Reg. 11,423. Such additional duties for crude oil and natural gas generally apply to merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 4, 2025. 90 Fed. Reg. 11,423; 90 Fed. Reg. 11,429. However, pursuant to Executive Orders 14231 and 14232 of March 6, 2025, products of Canada and Mexico that qualify as originating under the United States-Mexico-Canada Agreement (USMCA) (General Note 11 of the HTSUS) are excepted from the additional duties, effective for such merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025. For purposes of this USMCA exception, originating crude oil and natural gas products must be entered for consumption under heading 9903.01.14 for crude oil and natural gas products of Canada, or heading 9903.01.04 for such products of Mexico. See 90 Fed. Reg. 11,743 (March 11, 2025); 90 Fed. Reg. 11,746 (March 11, 2025).

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