Remote Location Filing and District Permits

The Final Rule, which can be found at 74 FR 69015, sets forth the final changes to the Customs regulations that govern RLF, which went into effect on January 29, 2010.

I have found myself thinking about the particulars regarding district permit requirements for Customs Brokers, and with the effective date having kicked in on Jan. 29, 2010 for the "Remote Location Filing" Final Rule, I figured I would explore this a bit in the blog.

Remote location filing (RLF) allows a customs broker holding a national permit to file entries for merchandise from a location other than where the goods arrive. This means that a broker in New York can file an entry in the port of Long Beach despite not having a district permit there.

Generally, with certain exceptions (listed below), a district permit must be obtained by a customs broker for each district in which it intends to conduct customs business. [19 CFR 111.19(b)]  An applicant for a district permit must have a place of business at the port where an application is filed and must exercise responsible supervision and control over it once a permit has been granted. [19 CFR 111.19(d)]  Thus, subject to the exceptions below, a permit will be required where customs business in not conducted electronically.

Per 19 CFR 111.2(b)(2)(i)(C), "A broker may electronically file entries for merchandise from a remote location, pursuant to the terms set forth in Subpart E to Part 143 of this chapter, and may electronically transact other customs business even though the entry is filed, or other customs business is transacted, within a district for which the broker does not have a district permit."
 
Exceptions to the District Permit Rule applies to brokers who have a national permit [issued under 19 CFR 111.19(f)], which allows them to act in another district without obtaining a district permit when: [19 CFR 111.2(b)(2)(A-D)]
 
1) An employee of the broker is placed in the facility of a client for whom it conducts customs business for
2) Filing electronic drawback claims
3) Electronically filing entries from a remote location pursuant to Subpart E (i.e., 19 CFR 141.61 through 141.69)
4) The importer of record appoints a broker to represent it on any issue arising out of an entry (that was accepted by Customs) which does not possess a permit in which the representations are made
 
Some of the benefits to RLF include:
1) No restriction to either the port of arrival or port of filing for a physical exam
2) Allowing for an exam to occur at the port nearest the cargo's final destination
3) The electronic management and control of Customs cargo data by the filer, and
4) The accurate electronic tracking of cargo

Keep in mind however, that pursuant to 19 CFR §143.45, “[w]hen filing from a remote location, an RLF filer must electronically file all additional information required by CBP to be presented with the entry and entry summary information (including facsimile transmissions) that CBP can accept electronically. If CBP cannot accept additional information electronically, the RLF filer must file the additional information in a paper format at the CBP port of entry where the goods arrived.” [19 CFR §143.45]

In addition, while there are currently more than 250 participating RLF ports, not all ports are equipped to handle RLF procedures, however, Customs is in the process of evaluating additional ports and welcomes recommendations for further ports to be directed to the Customs RLF Program Manager at remote.filing@dhs.gov. For a current list of RLF operational ports, and additional RLF information, click here.