Johnson Consolidated Freight, Inc. (JCF) is the nominal consignee for a shipment of empty glass bottles, consigned to IPA (USA), Inc. (IPA), a beer brewer. JCF has an appropriate power of attorney with IPA. JCF contracts with Knowledgeable Customs Brokers, LLC (Knowledgeable) for Knowledgeable to file the entry and entry summary as the importer of record for the shipment. Knowledgeable obtains power of attorney from IPA and files the entry and entry summary with itself as the importer of record and obligates its basic importation and entry bond. Which one of the steps below is NOT one of the steps Knowledgeable will take to be relieved of liability for increased and additional duties owed under the facts above?
How to get there
A nominal consignee (JCF) can't make entry itself, but it can designate a broker, who then must appear as importer of record (Right to Make Entry Directive 5.1.3). That leaves Knowledgeable liable for any increased duties unless it follows the relief procedure in § 141.20:
19 CFR 141.20(a)(1)–(2)(1) … to be relieved from statutory liability for the payment of increased and additional duties [the consignee] shall declare at the time of the filing of the entry summary … that he is not the actual owner of the merchandise, furnish the name and address of the owner, and file with CBP … within 90 days from the time of entry … a declaration of the actual owner … acknowledging that the actual owner will pay all additional and increased duties. … (2) … to be relieved from contractual liability … under his continuous bond … he shall file a bond of the actual owner on Customs Form 301, containing the bond conditions set forth in § 113.62 … within 90 days from the time of entry.
Steps A, C and D are all in the regulation. B, producing the POA documents to prove the right to make entry, isn't part of the relief procedure. The answer is B.
Why the other choices are wrong (they ARE required steps)
A) The owner's declaration and § 113.62 bond within 90 days: both are required by § 141.20(a)(1)–(2).
C) Declare at filing that it's not the actual owner: required by § 141.20(a)(1), at the time of filing.
D) Give the actual owner's name and address at filing: required by § 141.20(a)(1).
TipRelief has two halves. At filing: "not the owner" plus the owner's name and address. Within 90 days: the owner's declaration (statutory liability) and the owner's bond (contractual liability on the consignee's bond). Both must be executed by the actual owner and filed by the nominal consignee (§ 141.20(b)). A nonresident owner's declaration also needs a bond with a resident corporate surety (§ 141.20(c)).
Sources: 19 CFR 141.20; 141.19 (eCFR); CBP Directive 3530-002A, § 5.1.3.
CBP answer key: Answer B · Right to Make Entry Directive (CD 3530-002A) Section 5.1.3; 19 CFR 141.19; 19 CFR 141.20Source: CBP past exams ↗