This document provides information about increased scrutiny on customs entries in the new ACE environment. It discusses what ACE is and how it allows for greater scrutiny of entry data by customs. This may result in importers receiving Requests for Information (CF-28) and Notices of Action (CF-29) about classification, valuation, or other issues. The document provides examples of a CF-28 and CF-29 and tips for importers, such as reviewing classifications and having a clear plan for responding to CF-28s.

1. How to Prepare for Increased Scrutiny on Your Entries
PART 2: CUSTOMS IN THE NEW
ACE ENVIRONMENT

2. Nick Esposito
Marketing Executive
Bozeman, Montana
Trade Risk Guaranty Brokerage Services, LLC
nick.esposito@traderiskguaranty.com
1st

3. Gregg Cummings
Managing Partner, LCB, CCS
Bozeman, Montana
Strix Full Service Brokerage & Self-Filing Software
gregg@strixsmart.com
1st

4. • Located in Beautiful Bozeman Montana
• Established in 1991
• Direct-to-Importer Business Model
• Serving the entire International Trade community
STRIX & TRADE RISK GUARANTY

5. ON YOUTUBE
TRADE RISK GUARANTY - TRG

6. TODAY’S WEBINAR TOPICS
ACE Overview Recap
Introduction to CF-28 & CF-29
Key Takeaways & Tips from the Experts

7. ACE OVERVIEW RECAP

8. WHAT IS ACE?
A.C.E - Automated Commercial Environment
• A Single Window system that all imports and exports are
processed through.
• Manual processes are streamlined and automated, and paper
is being eliminated.
• Allows the trade community to more easily and efficiently
comply with U.S. laws and regulations.

9. INFORMED COMPLIANCE
1994 – Mod Act
“Informed compliance is a shared responsibility between CBP and
the import community wherein CBP effectively communicates its
requirements to the trade, and the people and businesses subject to
those requirements conduct their regulated activities in accordance
with U.S. laws and regulations. A key component of informed
compliance is that the importer is expected to exercise reasonable
care in his or her importing operations.”
- Customs and Border Protection

10. THE CURRENT STATE OF ACE
• After 18 years and more than $4B of our taxpayer dollars; ACE is
nearing full deployment
• For CBP purposes it is fully deployed
• Waiting on some Partnering Government Agencies (PGA’s) to
complete their programming
• International Trade Data System (ITDS) will become the “single
window” that all International trade data passes through

11. HOW THIS AFFECTS IMPORTERS
• With access to more in-depth data, CBP can accurately target
mistakes and inconsistencies in an importer’s entry data.
• This results in greater scrutiny by Customs Import Specialists
during the liquidation process.
• One thing that comes out of greater scrutiny are emails, phone
calls, Requests for Information (CF-28), and Notices of Action
(CF-29).

12. INTRODUCTION TO
CF-28s & CF-29s

13. REASONS YOU RECEIVE A CF-28 & CF-29
• HTS Codes Classification
• Intellectual Property Rights (Trade Names, Copyright, etc.)
• Valuation
• Related Parties
• Antidumping

14. HTS CLASSIFICATION PROCESS
• HTS Codes are used to determine tariff classifications for goods.
• Classification is determined based on name, use, and material
used for construction.
• Typical process of classification:
• Internal Team determines HTS codes for each imported item
• Allows Customs Broker to determine HTS codes

15. WHAT IS CF-28?
• CF-28 stands for ‘Customs Form 28’ and it
is a ‘Request for Information’
• If Customs finds that the information given
to them during the entry process is
incomplete, inaccurate, or insufficient
whereby CBP cannot make a decision,
they may give the importer an opportunity
to add additional information, clarify what
was provided, or provide a sample of the
imported product.

16. WHAT IS CF-28?
• An importer has 30 days after the issue date to respond, in writing,
to Customs.
• If a response is not received within the timeframe, Customs will
make a determination with the information available.
• Oftentimes, Customs presumes the least favorable interpretation
of the facts, leaving the importer in a financial disadvantage.

17. EXAMPLE CF-28

18. EXAMPLE CF-28

19. THE PROCESS OF RECEIVING A CF-28
• At the time of the entry or shortly thereafter, if Customs believes
the entry has been misclassified or is uncertain of other details, it
will issue a CF-28 requesting additional information.
• If Customs does not receive the information timely or the
information is marginal or incomplete, they will make a
determination and issue a CF-29 informing the importer of the
action that will be taken.
• Depending on what the CF-29 states, a Supplemental Duty Bill
may be issued.

20. WHAT IS CF-29?
• CF-29 stands for ‘Customs Form 29’ and it
is a ‘Notice of Action’
• When Customs believes that there should
be a change in classification or an increase
in duty they issue a “Notice of Action”.
• Signifies Customs intentions to change the
way the current entry is classified, valued,
etc. and dictates how future shipments will
be treated.

21. WHAT IS CF-29?
• The notice will provide the importer with two possible Customs
actions; “Action Taken” or “Action Proposed”
• Action Taken : Customs is indicating that Action has been
taken. This could be an increase or decrease in the duties
owed. Any increase can only be addressed via protest or 520
claim.
• Action Proposed : When Customs indicates Action proposed,
the importer is given 20 days to convince Customs that the
increase or change in classification is unfounded.

22. EXAMPLE CF-29

23. EXAMPLE CF-29

24. TIPS FROM
THE EXPERTS

25. TIPS FROM THE EXPERTS
Review Your Current HTS Classifications at Ensure Accuracy
• Now is the time to roll up your sleeves and check the
accuracy of your products’ classification.
• Never let a foreign supplier classify your goods.

26. TIPS FROM THE EXPERTS
Have a Clear Action Plan For When a CF-28 Is Received
• What is your Standard Operating Protocol?
• Know what it is and have a clear action plan within your
business.
• CF-28s & CF-29s are date specific

27. TIPS FROM THE EXPERTS
Audit Your Broker
• Not all 28s and 29s are centered around classification
• It’s important to ensure your broker is submitting accurate
information.
• Make sure they have the accurate information and are
reporting it.

28. COVERED IN TODAY’S WEBINAR
ACE Overview Recap
Introduction to CF-28 & CF-29
Key Takeaways & Tips from the Experts

29. SUBMIT YOUR QUESTIONS
AND/OR FEEDBACK

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International Trade Professionals - TRG
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