The Mystery of Express Couriers and Missing Entries in ACE

Polsinelli
Contact

Polsinelli

A little known fact to a lot of importers is how the big three express couriers (FedEx, UPS and DHL) typically file their import entries.  In order to expedite clearances, they use a fuzzy interpretation of the import regulations that allows them to file import entries listing themselves as the IOR.  This has two negative consequences for importers: 1) because the entries aren't filed under the actual importer's EIN, they do not pull up in the importer's ACE reports, and 2) with control of the entry in the hands of the courier, coupled with the lack of visibility to the import data, importers can be taking on risk from filing errors they don't even know about.  To make matters worse, because the express couriers are geared for mass quantity and speed, trying to fix this problem can be an ongoing nightmare.  The steps to do this largely depend on the complexity of your inbound supply chain, your companies willingness to withstand additional clearance cost and delays, and the bandwidth of your compliance organization.  With that said, here are two things you can do: 1) explore a "broker select" option with your courier/s account rep, and 2) issue and enforce Ts&Cs with your vendors and suppliers that include, among other things, specific brokerage instructions.  Although neither of these things will entirely alleviate this problem, it will get you stepping in the right direction.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Polsinelli | Attorney Advertising

Written by:

Polsinelli
Contact
more
less

Polsinelli on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide