Monica Crockett, Director,

Entry Summary Accounts & Revenue

ACE Business Office

NCBFAA/ACE SOFTWARE VENDOR SESSION

Entry Summary Validations

February 25, 2014

Overview Increment 1: HMF Validations

There is no tolerance for this comparison calculation

The validations are using the value of goods amount (whole dollar amounts) from the

50-records on the AE to perform the comparison calculation

Increment 2: Classification Validations

Applies to ACE Entry Summaries with 1 or 2 HTSs on the line

If there are more than 2 HTSs on the line, ACE will accept the classification

provided the line passes all other validations

Increment 3: Simple Duty Calculation Validations

Applies to ACE Entry Summaries with 1 HTS on the line

If there are 2 or more HTSs on the line, ACE will accept the duty submitted

provided the line passes all other validations

Increment 4: Complex Duty Calculation Validations and MPF Validations

Applies to ACE Entry Summaries with 2 HTSs on the line

If there are 3 or more HTSs on the line, ACE will accept the duty submitted

provided the line passes all other validations.

MPF validations will apply to both formal and informal ACE entry summaries.

Increment 5: Informal Restrictions, Taxes, Other Fees, and Charges Restrictions

Duty Calculation Process Flow

Start

Evaluation

Pre-Evaluation

Determination

Conditions

Found?

End YES

How many

HTSs?

Determine

Duty Method

Conventional Duty Calculation and Comparison to submitted duty

Derived Duty Calculation and

Comparison

Additional Duty Calculation and

Comparison

Replacement Duty

Calculation and Comparison

End (notify filer)

1 HTS

2 HTS

More than 2 HTS

NO

Duty Method Examples

Replacement Duty Example:

Temporary rates

CO: AU (AUSTRALIA)

HTS 1: 9913.96.61 (AU FTA,2103204020>=$.756 KG)

HTS 2: 2103.20.4020 (OTHR TOMATO SAUCES < 1.4 KG)

Replacement duty rates comes from the 9913 number.

Additional Duty Example:

Watch

CO: KR (KOREA)

HTS 1: 9101.29.3020 (OTH WATCH CASE OTH, 8-17 JWLS)

HTS 2: 9101.29.3030 (OTH WATCH ST, BAND/BR OTH,8-17J)

Both duty rates are used; results are added together.

Derived Duty Example:

Textile ensemble

CO: MY (MALAYSIA)

HTS 1: 6204.29.2015 (ENSEMBL,SKIRT/DIV S,ART F, W/G)

HTS 2: 6204.59.3010 (SKIRT/DIV,ARTFCL FB,OTHR,WOMEN)

Rate of the 2nd HTS used and then multiplied by the 1st HTS number’s factor (%).

Error Condition Codes

NOTE: For Deployment B, error condition code #628 applied to ACE Entry Summary lines with 2 or

more HTSs on the line. For Deployment C, error condition code #628 will apply to ACE Entry

Summary lines with 3 or more HTSs on the line.

Error

(Condition

Code)

Narrative Text Explanation

622 Duty Accepted; "X" Duty Comp Code Informational message.

623 Duty Accepted; Unsupported Formula Informational message.

624 Est Duty/Calc’d Duty Mismatch - Line If a "Duty Free" Trade Agreement/Special Program Claim Code is reported in the 40-record,

positions 25-26 for this line and accepted, no duty must be reported in the 50-record for this

line.

The duty calculated for the entry summary line item does not match the estimated duty as

reported on the line. Each line on the entry summary should reflect the exact duty amount due

based on the duty rate applicable to the tariff number. However, CBP systems allow a

difference per entry summary line of up to $2.99 between the calculated duty and the amount

reported by the filer.

625 Duty Not Allowed - Set Component If the line item details as reported in the 40-record indicate that the line is a set component, that

is, the article set indicator reported in position 8 = "V", then duty cannot be reported on this line

- only on the set header (if duty applies).

626 Duty Accepted; HTS or Other Exception Informational message.

627 Est Duty/Calc’d Duty Mismatch - Total Each line on the entry summary should reflect the exact duty amount due based on the duty

rate applicable to the tariff number. However, CBP systems allow a difference per entry

summary line of up to $2.99 between the calculated duty and the amount reported by the filer.

The $2.99 difference also applies to the entry summary as a whole. Individual lines may be

discrepant up to $2.99, however, the entry summary will be rejected if the estimated total duty

amount as reported in the 90-record, positions 3-13 is $2.99 more than or less than the amount

calculated by CBP systems for all lines on the entry summary.

628 Duty Accepted; Complex Line Informational message.

Merchandise Processing Fee

Validations Take the following into account:

o Entry Type

o Reporting Requirements

o Reporting Restrictions

o Exemption Determination

o Exception Line Determination

o Free Trade Agreements

o Preferential Trade Legislation

o Min/Max Determination

o Line MPF Amount Comparison

o Total MPF Amount Comparison

Error Condition Codes Error

(Condition

Code)

Narrative Text Explanation

629 Formal MPF Not Allowed - Set Component If a formal class code '499' fee has been submitted for the line but the line is a 'set component'

type (pos 8 of the 40-Record = 'V'), this error will result.

630 Formal MPF Not Allowed - Infrml Summary If a formal class code '499' fee has been submitted for the line but the Entry Type is an informal

type (e.g., '11'), this error will result.

631 Line Not Evaluated for MPF Exemption This information condition may be generated in a scenario where a line's MPF exempt status

cannot be determined.

632 Formal MPF Not Allowed - Article Exempt If a formal class code '499' fee has been submitted for the line of a formal summary but the article

is MPF exempt, this error will result.

633 Formal MPF Required - Article Not Exempt If a formal class code '499' fee has not been submitted for the line of a formal summary but the

article is not MPF exempt, this error will result.

634 Est MPF/Calc'd MPF Mismatch - Line If a formal class code '499' fee has been submitted for the non-exempt line of a formal summary

but the amount is the incorrect product of 'value times rate', this error will result.

635 Infrml MPF Not Allowed-Summary Exempt If an informal class code '311' fee has been submitted for an informal summary but the summary

is MPF exempt, this error will result.

636 Infrml MPF Required-Summary Not Exempt If an informal class code '311' fee has not been submitted for an informal summary but the

summary is not MPF exempt, this error will result.

637 Infrml MPF Not Allowed-Formal Summary If an informal class code '311' fee has been submitted for the summary but the Entry Type is a

formal type (e.g., '01'), this error will result.

638 Infrml MPF Fixed Amount Incorrect If an informal class code '311' fee has been submitted for a non-exempt informal summary but the

amount is not the fixed amount, this error will result. (Note amount exceptions for consolidating

summaries and fixed transport shipments.)

639 Formal MPF Minimum Amount Required If the system computed amount of MPF for the summary is less than or equal to the minimum

MPF amount owed and if a formal class code '499' total fee has been submitted in the 89-Record

but is not this minimum amount, this error will result.

640 Formal MPF Maximum Amount Required If the system computed amount of MPF for the summary is equal to or greater than the maximum

MPF amount owed and if a formal class code '499' total fee has been submitted in the 89-Record

but is not this maximum amount, this error will result.

641 Est MPF/Calc'd MPF Mismatch - Total If the system computed amount of MPF owed on the summary falls in between the minimum and

maximum and if a formal class code '499' total fee has been submitted in the 89-Record, but is not

this amount (within a tolerance), this error will result.

642 ESV Failure <reason description> This information condition may be generated in a scenario where an internal system problem has

been encountered. Note that the text may include a detailed reason. Wait a few minutes and

retry/retransmit the transaction. It is possible that a system resource was temporarily unavailable.

Informal Entry Summary Filing

Restrictions Validations

Take the following into account:

Entry Type

Personal Shipment Restrictions

Commercial Sample Shipment Restrictions

Commercial Sample Article Co-Mingling Restriction

Commercial Sample Exception Article Total Value Restriction

Regular Shipment Restrictions

Total Value Acceptance Allowance

Total Value Restrictions

Error Condition Codes

Error

(Condition

Code) Narrative Text Severity

644 USAGE NOT ALLOWED FOR CNSL SUMM F

645 HTS / SHIPMENT USAGE REQS FORMAL ENTRY F

646 ARTCL VALUE EXCEEDS INFRML LIMIT FOR HTS F

647 COMMRCL SAMPLE ARTICLE COMBO NOT ALLOWED F

648 TOTAL VALUE EXCEEDS INFRML LIMIT F

Internal Revenue Tax and Agriculture

Management Service Fees

Validations

Take the following into account:

Line Type Reporting Restriction

Port Reporting Restriction

HTS Reporting Restriction

HTS Reporting Requirement

Line Amount Comparison

Total Amount Comparison

Note: Excludes Cotton Fee (Any 053 cotton fee/amount will be accepted until addressed.)

Error

(Condition

Code) Narrative Text Severity

649 IR TAX NOT ALLOWED - SET HEADER F

650 AG FEE NOT ALLOWED - SET HEADER F

651 IR TAX NOT ALLOWED - EXEMPT PORT F

652 AG FEE NOT ALLOWED - EXEMPT PORT F

653 IR TAX NOT ALLOWED FOR ARTICLE F

654 AG FEE NOT ALLOWED FOR ARTICLE F

655 IR TAX REQUIRED FOR ARTICLE F

656 AG FEE REQUIRED FOR ARTICLE F

657 IR TAX ACCEPTED; 'X' COMP CODE I

658 AG FEE ACCEPTED; 'X' COMP CODE I

659 EST TAX/CALC’D TAX MISMATCH - LINE F

660 EST FEE/CALC’D FEE MISMATCH - LINE F

661 EST TAX/CALC’D TAX MISMATCH - TOTAL F

662 EST FEE/CALC’D FEE MISMATCH - TOTAL F

Error Condition Codes

Shipping Charges Filing

Restrictions Validations

Take the following into account:

Zero Charges Reporting Allowance

Zero Charges Reporting Restriction

Entry Summary Validations

Completed in Increments 1-4:

1. Harbor Maintenance Fee (HMF)

2. Classification

3. Duty Calculation (Simple and Complex)

4. Merchandise Processing Fee (MPF)

Planned for in Increment 5:

5. Informal Restrictions

6. Taxes

7. Other Fees

8. Charges Restrictions

Remaining Validations:

9. Licenses, Permits, Certificates

10. Tariff Usage Restrictions

*Quota Restrictions