What is Recon? Is Recon required? Reconciliation 101 — CASAS U

Resources

U.S. CBP — Reconciliation

U.S. CBP — ACE Reconciliation External Guidance, look for PDF on site

What is Reconciliation?

Reconciliation is a process that allows importers to file entries using the best available information they have on file and electronically "flag" these entries with the mutual understanding that CBP will receive the accurate information at a later date.

Reconciliation is also the name for the entry type that is used to then provide the corrected information for the amended entries.

After it's submitted, the Reconciliation entry is then reviewed by customs and ultimately liquidated. During this period of review the entry may be rejected to correct any element of the transmission, either by Customs or by request of the Importer.

As it happens with all other entry types, upon Liquidation the Reconciliation entry may trigger additional duties, refund, or liquidate as filed (No Change Liquidation).

You may reconcile the following:

• Value (Assists, Royalties, etc.)
• HTS 9802
• Classification*
• 520(d): USMCA/FTA and certain other eligible Free Trade Agreements

* Because classification is linked to the admissibility of merchandise, reconciliation of classification will be limited to certain situations.

How It Works

Reconciliation is the exclusive means to reconcile entries. Customs has designed the following approach Reconciliation:

• Notifying Customs: Entry summaries may be flagged individually or via a blanket application. The blanket application results in the automatic flagging of all entry summaries for a specified time method. Flagging entries provides Customs with a "notice of intent" to file a Reconciliation. The importer is obligated to use reasonable care in filing entry summaries, even when they are subject to Reconciliation. For example, importer must provide their best estimates in declared value, rather than using values which bear no relation to the reality of the transaction. Please note that entries cannot be flagged after they are filed, nor are all entry types eligible for flagging.

• Entry Summary Eligibility: The following entry types are eligible for Reconciliation under this prototype:

1. Entry type 01: Free and dutiable formal consumption entries
2. Entry type 02: Quota/ Visa consumption entries
3. Entry type 06: Foreign Trade Zone (FTZ) consumption entries

• Filing the Reconciliation: The Reconciliation entry may be filed with data showing Entry-by-Entry adjustments to duties, taxes, and fees, or with Aggregate data showing only the adjustment without entry-level detail. A single Reconciliation entry can cover up to 9,999 records and is due within 12 months of the earliest entry import date for FTA Reconciliation, or within 21 months of the earliest entry summary date for all other issues. When the Reconciliation is filed, the payment of additional duties, taxes, fees, and interest (or claim for refund) is made. The Reconciliation is treated like any other Customs entry for purposes of liquidated

Is Reconciliation required?

Although not required, Reconciliation is highly recommended by importers who would benefit from the program.

All importers are eligible to flag their entry summaries for Reconciliation as long as they have a valid continuous bond and a rider.

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