Residue Reporting

Current Status

Delay of Test Concerning Manifesting and Entry of Residue
11/18/2013

ACE Portal Accounts

After further consultation with the international trade community, U.S. Customs and Border Protection (CBP) has decided to delay the launch of the Test Concerning Manifesting and Entry of Residue found in Instruments of International Traffic (IITs). This test was announced in the Federal Register Notice (FR Doc. 2013-20878) on August 27, 2013.

The test was to commence on November 25th which is 90 days after the publication of the Federal Register Notice. CBP will work to address remaining trade concerns related to this matter and announce a future test date after further consultation with the trade community.

  • On August 27, 2013 U.S. Customs and Border Protection (CBP) published a Federal Register Notice announcing a test concerning Manifesting and Entry of Residue.
  • That Federal Register Notice specifies that CBP will begin enforcement of the requirement to manifest and enter residual cargo beginning November 25, 2013. The test will commence on that date and will run for a period of one year, which may be extended. CBP will begin an evaluation of the test approximately 90 days after commencement.
  • All residue reporting must be done in CBP’s new Automated Commercial Environment platform (called ACE). Union Pacific began functioning in the ACE system on Monday, May 7, 2012.
  • The rail industry has reached agreement on the EDI transmittal formats, etc. for residue.
  • Seven percent or less is the amount which will be considered residue.
  • Value of residue must be less than or equal to $200 to qualify as Section 321 shipment.
  • Residue shipments will be billed as empties and the receiving U.S. carrier will transmit the customs information to CBP as a load. Therefore no changes to internal rail systems or between railroads will be required-only changes to CBP transmittals.
  • Weight of residue will be required.
  • No broker involvement required for shipments containing seven percent or less.
  • From the input side, there is agreement on how to electronically provide the data to customs.
  • This ruling only applies to residue entering the U.S. and does not apply to movements of residue moving from the U.S. to either Mexico or Canada.

History

U.S. Customs and Border Protection (CBP) has advised that rail cars and intermodal equipment entering the U.S. with residual product must be manifested and reported to CBP prior to border arrival.

U.S. Customs Bulletin, Vol. 43, No. 28 dated July 17, 2009 modified a ruling (HQ 113129), dated July 12, 1994, which allowed rail cars and intermodal containers meeting the requirements of 19 U.S.C. 1322(a) and 19 CFR 10.41a to be identified as instruments of international traffic (IITs) when containing residual products and to be entered into the U.S. as "empty" equipment. In the new ruling the allowance is withdrawn, for all residue, and equipment entering the U.S. containing any residue in any rail car type must begin to be manifested as residue with a load status indicator.

CBP has advised rail carriers that they must be ready to comply with the new manifest reporting requirement for empty equipment containing residue product (19 CFR Part 177) in the future, and the manifest filed for this residue must be made electronically. A residue manifest is required when residue is present in the equipment and the amount of residue is 7% or less of the capacity of the equipment. Any rail car containing product in excess of 7% of the equipment capacity will be considered as a loaded conveyance and current CBP loaded manifest and entry requirements will apply.

Processes

  • Rail cars with residue released in Mexico or Canada will need to be identified as containing residue.
  • Rail carriers serving unloading locations will have their own procedures on how residue empty reporting will be done. Please contact your serving carrier for more information.
  • Canadian or Mexican rail carriers will forward an empty EDI 417 to the connecting carriers showing that this is an empty residue rail car returning to the U.S.
  • Importing carrier will send CBP an EDI notification of residue as a load identifying the empty residue.
  • Rail cars with residue of more than seven percent will require a broker for entry.

Railroad Contact Personnel

Railroad Contact Email Phone
Union Pacific Steve Jensen skjensen@up.com 402-544-9124
KCSM Carmen E. Tellez ctellez@kcsouthern.com.mx 011-52-8183057829
KCSM Tania Garza tgarzagonzalez@kcsouthern.com.mx
KCS Antonio Robles arobles@kcsouthern.com 816-983-1966
FXE Arturo Gonzalez fgonzalez@ferromex.com.mx  
FXE Victor Lopez vlopez@ferromex.com.mx  
FXE Alfredo Torres jtorresr@ferromex.com.mx  
CP Customer Service Team   888-333-8111
CN CN Transborder Group   800-267-9779
CN CN eBusiness   800-361-0198