IMPORTANT NOTICE – Follow-Up to Previous Advisories Regarding ACE Manifests and Customs Release Verification

Dear Valued Clients,

Good morning.

As a follow-up to the multiple notices and advisories we have previously issued regarding this matter, we would like to reiterate the importance of strengthening customs compliance and verification procedures for shipments entering the United States, particularly those involving multiple importers or multiple Customs Entries transported on the same truck.

The recurrence of these types of discrepancies, despite our previous advisories, makes it necessary to once again emphasize the importance of implementing and strictly adhering to these preventive measures. Our objective is to avoid customs violations, significant monetary penalties, and potential consequences that could negatively impact our clients’ import operations.

U.S. Customs and Border Protection (CBP) continues to closely scrutinize discrepancies between the merchandise physically transported and the information declared on electronic ACE manifests. Such discrepancies may result in substantial penalties, cargo holds, and potential consequences involving importers’ Customs Bonds.

Accordingly, we strongly recommend reinforcing the following preventive measures:

1. CARRIER RESPONSIBILITIES – ELECTRONIC ACE MANIFESTS

Each transportation company is responsible for ensuring that all merchandise physically loaded onto its truck is accurately and completely declared on its electronic ACE manifest, including all applicable Customs Entries associated with each importer.

To accomplish this, carriers must:

• Physically and administratively verify the merchandise being transported.
• Cross-reference and reconcile the information declared on their ACE manifests against the Shipping Manifests, Commercial Invoices, Packing Lists, and all other shipping documentation provided at origin.
• Confirm that all Customs Entries corresponding to the merchandise physically loaded onto the truck are properly included in the electronic ACE manifest before arriving at the U.S. border.
• Exercise extreme caution when transporting consolidated or combined shipments involving multiple importers, ensuring that no Customs Entries are inadvertently omitted.
• If any discrepancy is identified, immediately suspend the border crossing process until the information has been corrected and properly verified.

It is extremely important to emphasize that the transportation company is directly responsible for the accuracy and completeness of the information transmitted on its electronic ACE manifest and for ensuring that the declaration accurately reflects all merchandise physically transported.

The preparation and electronic transmission of a Customs Entry by our brokerage firm does not replace, eliminate, or relieve the carrier of its independent responsibility to properly declare the merchandise on its ACE manifest.

2. RESPONSIBILITIES OF U.S. DISTRIBUTORS AND WAREHOUSES – CUSTOMS RELEASE VERIFICATION

Equally important, we request that all importers communicate and reinforce these procedures with their U.S. distributors, warehouses, and distribution facilities.

UNDER NO CIRCUMSTANCES SHOULD MERCHANDISE BE RELEASED, LOADED FOR DISTRIBUTION, OR ALLOWED TO LEAVE A WAREHOUSE WITHOUT FIRST VERIFYING THAT THE CORRESPONDING CUSTOMS ENTRY HAS RECEIVED ELECTRONIC RELEASE AUTHORIZATION FROM CBP.

To ensure compliance, warehouses and distributors must:

• Access our online Tracking System and verify that each Customs Entry associated with the merchandise received reflects a confirmed CBP release.
• For combined or consolidated shipments, individually verify the release status of every Customs Entry before authorizing the merchandise to leave the facility.
• Never assume that the release of one Customs Entry automatically means that all merchandise transported on the same truck has been released by CBP.
• If any Customs Entry does not reflect a confirmed release in our Tracking System, immediately suspend the release or distribution of the affected merchandise and contact our office to verify its customs status.
• Do not rely solely on verbal confirmation from the transportation company that the merchandise has been released. Release authorization must be independently verified through our Tracking System or expressly confirmed by our office.

These verification procedures are essential because they allow potential electronic transmission errors, documentation discrepancies, or omissions from ACE manifests to be identified before merchandise leaves the warehouse.

Identifying these situations while the merchandise remains at the distribution facility allows our office to intervene with CBP, determine the appropriate corrective actions, and potentially minimize exposure to customs penalties.

3. POTENTIAL CONSEQUENCES OF NONCOMPLIANCE

We want to emphasize that omissions or inaccurate declarations on electronic ACE manifests may result in serious consequences, including:

• Significant customs penalties which, depending on the circumstances and applicable statutory provisions, may reach up to three times the commercial value of the merchandise.
• Cargo holds, customs examinations, and operational delays.
• Potential claims against importers’ Customs Bonds.
• Increased risk assessments for importers and transportation companies, potentially resulting in heightened CBP scrutiny, additional inspections, and delays on future shipments.

It is important to understand that an omission or discrepancy on a carrier’s electronic ACE manifest may have financial and operational consequences not only for the transportation company but also for the importer associated with the merchandise involved.

4. IMPORTANCE OF COORDINATION AMONG ALL PARTIES

Effective implementation of these preventive measures requires clear communication and coordination among exporters, importers, Mexican customs brokers, transportation companies, U.S. distributors, and warehouse operators.

Therefore, we respectfully request that this notice be distributed to all individuals and companies involved in your logistics and transportation operations, ensuring that each party fully understands its respective responsibilities and the importance of immediately implementing these verification procedures.

We also strongly recommend that importers formally instruct their transportation companies and distribution facilities to establish internal verification protocols designed to prevent these types of discrepancies.

At K&K International Logistics, LLC, we remain committed to assisting our clients with customs compliance and helping prevent situations that could negatively impact their import operations.

However, it is essential that every participant in the supply chain fulfill its respective obligations and implement the necessary internal controls to prevent errors that may result in customs penalties and other adverse consequences for importers.

We reiterate that this notice serves as a follow-up to the multiple warnings and recommendations previously communicated by our office. Our intention is to emphasize that these preventive measures must be implemented consistently as part of standard operating procedures, rather than solely in response to individual incidents.

We sincerely appreciate your attention, cooperation, and commitment to maintaining compliant and efficient import operations.

Best regards,

K&K International Logistics, LLC