JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

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JAS USA Compliance Insights

Helpful Tips

JAS USA Compliance Insights on the Impact of COVID-19

Helpful Tips - Due Diligence
May 2, 2022
Helpful Tips May 2022

Ahead of the upcoming guidance on the Uyghur Forced Labor Prevention Act (UFLPA), it is strongly recommended that all importers review their supply chain to ensure that their goods are not being made with forced labor. CBP has a FAQ section for the Xinjiang Uyghur Autonomous Region that covers Withhold Release Orders, proof of admissibility, and best practices. The Due Diligence/Best Practices section has extensive resources that you can apply when reviewing your supply chain. The UFLPA will be going into effect on June 21st, so be sure to do your due diligence as soon as possible.

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Helpful Tips – AD/CVD
March 3, 2022

AD/CVD (Anti-dumping and countervailing duty) is a hot topic in the trade world these days.  Determining whether AD/CVD applies to products is imperative to understand the costs of imported goods.  Applicability of AD/CVD is typically based on the description of the item as it relates to the scope of the AD/CVD order.  HTS codes are part of AD/CVD scopes but are not the deciding factor.  

Using case numbers, The US Customs & Border Protection system for AD/CVD search AD/CVD search can provide information on specific cases including scope and other background related to individual cases.  Simply enter a case number in the search field and the results will appear.  Users can sort by date, status, type and much more.  

Find out more
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Import Document Retention
February 1, 2022

US importers are responsible for keeping all records related to imporations into the United States for the legal retention period.  In general records must be kept for 5 years from the date of entry, or 5 years from the date of the activity which required the creation of the record.  Failure to produce entry records upon lawful demand can result in significant consequences.  Check out CBP’s informed compliance publication on “Recordkeeping” in the link below to learn more.

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Helpful Tips! January 2022
January 4, 2022

Flagging for reconciliation allows importers to file their entry summaries using the best available information they have on file and electronically “flag” estimated elements, with the mutual understanding that CBP will receive the actual information at a later date.  Importers can then provide the corrected information on a new type of entry called a Reconciliation.  To read more about reconciliation, check out the link below.

Learn More
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CBP Liquidation Search
December 2, 2021

CBP’s website (linked below) for “Official Notice of Extension, Suspension and Liquidation” can be used to determine the status of entries.  Entries must have a status of extension, suspension, or liquidated to produce any results.  Some of the information returned includes Posted date, Liquidation date, Action (meaning change increase or no change, etc.), Port of Entry, Entry date, Entry Type, and the CEE Team designation.

Users can search by entry number along with combinations of filer code and importer of record numbers.  This can be a useful quick check tool to see the status of entries!

CBP Website
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Schedule B Search Engine
November 1, 2021

The US Census Bureau’s Schedule B search engine is another useful tool for getting started finding HTS codes and or Schedule B numbers.  Schedule B numbers follow a similar pattern to US HTS codes (although there’s less Schedule B numbers).  The numbering system is like the harmonized system.  

Using the Schedule B Search Engine simply requires answering a few key questions about the commodity being reviewed.  Then a potential Schedule B is displayed on the screen.  This can be useful for imports if the item being classified is not very familiar to the classifier.  

Check out the Schedule B Search engine at the link below.

Check out the Schedule B Search engine
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Helpful Tips October 2021
October 1, 2021

Free Trade Agreements are a great way to reduce costs through the reduction or elimination of duties on qualified items.  Free Trade Agreement items are often qualified for the agreement through numerous rules centered around the rules of origin.  Did you know that many finished goods may qualify for a free trade agreement even though it has material from countries that are not part of the agreement?  The rules of origin can be daunting but rewarding if applied effectively.  Check out the listing of free trade agreements in the US in the link below.  Need help?  Contact JAS Forwarding USA Inc. Compliance today!

Official listing of free trade agreements in the US
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Helpful Tips September 2021
August 31, 2021

CBP has published numerous “Informed Compliance Publications.”  These articles offer extensive commentary onvarious topics from how to classify apparel and sets to rules of origin andmuch more.  The full list of informed compliancepublications can be found at the link below:

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CSMS #48659796 - Implementation of Sewing Thread Chapter Rule requirement for apparel goods of Chapters 61 and 62 of the Harmonized Tariff Schedule of the United States (HTSUS) for apparel importations claiming preference under USMCA
August 2, 2021

Effective July 1, 2021, the United States-Mexico-Canada Free Trade Agreement (USMCA) will implement the sewing thread requirement.

Sewing thread of headings 5204, 5401, 5508, or yarn of heading 5402 (used as sewing thread) and used in apparel products of Chapters 61 and 62 of the Harmonized Tariff Schedule of the United States, will only be considered originating if the thread is both formed and finished in the territory of one or more USMCA parties.

Sewing thread is considered formed and finished in one or more USMCA countries, if all production processes and finishing operations, starting with the extrusion of filaments, strips, film or sheets, and including slitting of a film or sheet into strips, or the spinning of all fibers into yarn, or both, and ending with the finished single or plied thread ready for use for sewing without further processing. (Non- originating fiber maybe used in the production of sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread.)

See General note 11(o), Chapter 61, Rule 3 and Chapter 62, Rule 4 of the HTSUS on the USITC’s website at the following link
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International Trade Commission Anti-Dumping Notices
July 2, 2021

Is your product being investigated for possible antidumping or countervailing duties?  Do you know how to find if it is before a formalized case has published?  The International Trade Commission (USITC) publishes public notices regarding investigations, solicitations, public comments, and questionnaires.  Click HERE to go to the USITC webpage for public notices.

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Don't Let this Happen to You!
June 3, 2021

The new version of the publication “Don’t Let This Happen to You” is now available!  This publication is an introduction to the consequences of violating U.S. Export Control laws.  It includes actual investigations, export control and antiboycott violations published by the Bureau of Industry Security.  

To read the access the latest version, CLICK HERE.

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HMF Exemptions
May 6, 2021

Did you know that Harbor Maintenance Fees (HMF) are exempt on an Entry Summary line (when MOT 10 vessel non-containerized, 11 vessel containerized, or 12 barge) when the article is classified under some HTS chapter 98 provisions?  Chapter 9808 has been added to that list. The HTS chapter 98 provisions that exempt the HMF are now 9804, 9805, 9806, 9807, 9808, and 9809.

Read the CSMS message on HMF Exemptions
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First Rule of Sale
April 1, 2021

On March 1, 2021, the U.S. Court of International Trade (CIT) issued a decision with important ramifications for any company that uses “first sale” to reduce customs duty liability for goods imported into the United States.  All companies relying on first sale should review their first sale programs to evaluate the impact of this ruling and take adequate precautions.

Download the First Sale Rule (PDF)
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Do you have questions about whether your shipment is subject to antidumping or countervailing duties?
March 3, 2021

Are you unsure if your shipment is subject to antidumping or countervailing duties?  Do you need a better understanding of which government agencies are involved and enforce the regulations?  Do you need a better understanding of preliminary case determinations or what happens when there is a final determination?  Click HERE to review the most frequently asked questions published by US Customs to answer a lot of questions as it relates to antidumping and countervailing duties.

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Is it Real or is it Counterfeit?
February 3, 2021

The Office of the United States Trade Representative (USTR) today released the findings of its 2020 Review of Notorious Markets for Counterfeiting and Piracy (the Notorious Markets List), which highlights online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting and copyright piracy.

See the Full List
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Schedule B 2021 Release
January 5, 2021

The export statistics are initially collected and compiled in terms of approximately 8,000 commodity classifications in Schedule B: Statistical Classification of Domestic and Foreign Commodities Exported from the United States.  The 2021 Schedule B has been released and is available online!

The new the 2021 Edition of the Schedule B
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Rules of Origin
December 2, 2020

The country of origin for imported goods has always been important; however, it has become increasingly more important. It has long been important for country of origin marking and free trade agreement eligibility. Now with Antidumping and Countervailing duties and Section 232 and 301 duties it has taken on new significance. Be sure to review the Rules of Origin in CFR19 Part 102by CLICKING HERE to ensure the correct Rule of Origin is being reported!

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Commercial Invoice Requirements
November 4, 2020

Customs and Border Protection require a minimum of 16 data elements on a commercial invoice for entry processing.  Please review the commercial invoice requirements for a full detailed description.

Please review the commercial invoice requirements for a full detailed description.‍
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Forced Labor Reasonable Care
October 1, 2020

Are you practicing reasonable care to ensure importedgoods are not produced wholly or in part with convict labor, forced laborand/or indentured labor?  CBP haspublished a reasonable care checklist that includes questions to help importersavoid forced labor of imported goods.  

Access the Checklist
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China Tariffs vs Hong Kong Products Based on the New Rule
September 1, 2020

Are there questions about what is subject to China tariffs for products from Hong Kong since the new rule has been published?  CBP has provided a list of frequently asked questions available on their website.  To see the list of questions and answers, click HERE!

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Customs Entry Type 86
August 5, 2020

Entry Type 86 is a fairly new entry type intended to help Customs and Border Protection (CBP) manage the flow of goods by creating greater visibility for low-value shipments entering the U.S. while improving border protection, import security, and safety. As of September 2019, imports to the U.S. with a de minimus value of less than $800 can be classified under type 86.  Do you have questions about how or when this entry type can be used?  Please see the list of FAQ’s on Customs website regarding entry type 86.

See the list of FAQ’s on Customs website
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Have Questions About the U.S. Australia Free Trade Agreement?
July 7, 2020

CBP has published a list of frequently asked questions regarding the U.S. Australia Free Trade Agreement.  The FAQ’s answers questions related to claims of preferential tariff treatment, certification of origin, documentation, verification and more!  Click HERE to read more!

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Need help with FDA question on specific products?
June 2, 2020

Registrar Corp’s Regulatory Advisors are available 24-hours a day seven days a week to assist with U.S. Food and Drug Administration (FDA) regulations. They have a live chat that is managed by global staff to help assist with questions regarding labeling requirements, FDA registration, detained shipments and more.  

Please visit their website for further information!

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USMCA Implementation Instructions
May 1, 2020

The new USMCA Trade Agreement will be entering into force in just a few months! CBP has published an interim implementation instructions guide.

Download USMCA Interim Guide
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The U.S. and Japan have reached an agreement to adjust the Section 232 tariffs on Japanese steel imports. This new agreement sets a quota for Japanese steel, allowing for up to 1.25 million tons to be imported without any Section 232 duties imposed. This plan is similar to a resolution passed last year easing EU steel and aluminum tariffs, though this agreement only affects Japanese steel imports.  These multinational agreements are part of a larger strategy to fight China’s anti-competitive trade practices, as well as creating a greener steel trade industry.

The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing a final rule to adjust certain civil monetary penalties (CMP) for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. OFAC imposes CMPs pursuant to the penalty authority in five statutes: The Trading With the Enemy Act; the International Emergency Economic Powers Act ; the Antiterrorism and Effective Death Penalty Act of 1996; the Foreign Narcotics Kingpin Designation Act; and the Clean Diamond Trade Act . The new rule went into effect February 9th.

AD/CVD (Anti-dumping and countervailing duty) is a hot topic in the trade world these days.  Determining whether AD/CVD applies to products is imperative to understand the costs of imported goods.  Applicability of AD/CVD is typically based on the description of the item as it relates to the scope of the AD/CVD order.  HTS codes are part of AD/CVD scopes but are not the deciding factor.  

Using case numbers, The US Customs & Border Protection system for AD/CVD search AD/CVD search can provide information on specific cases including scope and other background related to individual cases.  Simply enter a case number in the search field and the results will appear.  Users can sort by date, status, type and much more.  

  • While it is often attributed to him, Ben Franklin actually did not come up with daylight saving time as we know it today, but he did pen the idea of adjusting schedules to the available sunlight in an unpublished satirical letter from 1784. In the letter he calculated the money that Parisians could save on candles if they woke with the sun instead of lazily waking at noon.
  • The actual name is Daylight Saving, not Daylight Savings, as it is often called.
  • Daylight Savings was not enacted officially in the US until March 1918. This was later repealed, then enacted again during WWII. After the war, states were allowed to choose whether they wanted to utilize DST or not. This resulted in massive travel issues for citizens crossing multiple state lines.
  • Modern use of DST was established in 1966, when the government passed the Uniform Time Act, creating a standard for daylight savings across the country (minus a few holdout states).
  • Hawaii, Arizona, and most US Territories do not observe DST.
  • There is much debate over whether DST has positive or negative effects on regions that use it, and whether it is necessary at all. Polls indicate that over 60% of Americans generally support the idea of eliminating DST permanently.
  • Studies show that the second Monday in March (the day we “lose an hour” every year) there are noticeable spikes in workplace accidents, traffic accidents, losses of productivity and slight increases in health issues such as heart attacks and strokes.

In early January, US Customs and Border Protection released their annual statistics for Fiscal Year 2021. Among the data provided was information on the ongoing efforts to protect consumers from products made using forced labor. In the last fiscal year, CBP has prevented almost $500 million worth of goods manufactured using forced labor from entering the US. Trade seizures were also up from last year, with over 83,000 shipments siezed over alleged trade violations. CBP also noted a record year in imports, collecting almost $94 billion in duties and taxes.

The International Trade Commission (ITC) has opened an AD/CVD investigation to determine whether there is a reasonable indication that an industry in the United States is materially injured or threatened with material injury, by reason of imports of steel nails, provided for in subheadings 7317.00.55, 7317.00.65, and 7317.00.75 of the Harmonized Tariff Schedule of the United States, that are alleged to be sold in the United States at less than fair value from India, Sri Lanka, Thailand, and Turkey and alleged to be subsidized by the Governments of India, Oman, Sri Lanka, Thailand, and Turkey. Unless the Department of Commerce (“Commerce”) extends the time for initiation, the Commission must reach a preliminary determination in antidumping and countervailing duty investigations in 45 days, or in this case by February 14, 2022. The Commission's views must be transmitted to Commerce within five business days thereafter, or by February 22, 2022.

Investigation Nos. 701-TA-673-677 and 731-TA-1580-1583 (Preliminary)

On January 24th, the Department of Homeland Security announced that they are seeking public comment on the Uyghur Forced Labor Prevention Act. These comments are intended to help shape the way the act will be implemented and enforced. Included in the notice are instructions on how to submit a comment, and a series of questions to help ensure DHS gets the information they need. The commenting period is open now and will close March 10th at midnight. For further information on the bill or details on how to submit a comment, please see the below links.

New legislation has been introduced to the House that aims to reduce exploitation of the Section 321 de minimis threshold. Section 321 de minimis currently allows goods from foreign countries to be imported duty-free and tax-free as long as the value of the goods is under $800. Over the past several years, the amount of packages arriving in the US under Section 321 has expanded exponentially, currently averaging over 2 million packages per day. There are major concerns that this is reducing the competitiveness of US businesses, and allows bad actors in the industry to exploit the lack of oversight on these lower-value shipments. The Import Security and Fairness Act is intended to close this loophole and provide additional oversight to the de minimis import process. The Act also will require CBP to collect information on all de minimis shipments in order to prevent further abuse of the rule, as well as ensuring de minimis is not being used to bring in goods made with forced labor.

Starting January 22nd, DHS will begin enforcing a requirement for all non-US citizens traveling to the United States via land port of entry or ferry terminals to be fully vaccinated against COVID-19. This new requirement is part of a series of changes to Non-Citizen entry into the US that was created in October of last year in order to fight the ongoing spread of COVID-19.  As of January 22nd, any non-US individuals entering the US - regardless of their reasoning for entry – will need to verbally state their vaccination status and provide proof of a CDC-approved COVID-19 vaccination, along with the usual documents required to cross into the United States.

US importers are responsible for keeping all records related to imporations into the United States for the legal retention period.  In general records must be kept for 5 years from the date of entry, or 5 years from the date of the activity which required the creation of the record.  Failure to produce entry records upon lawful demand can result in significant consequences.  Check out CBP’s informed compliance publication on “Recordkeeping” in the link below to learn more.

Valentine’s Day is just around the corner! Sweep your partner off their feet with these fun Valentine’s facts.

  • In 1875, a Swiss inventor Daniel Peter combined cocoa and condensed milk to create the first Milk Chocolate, which is now the most widely consumed chocolate across the globe. The milk condensation process had been created by Henri Nestlé, who's last name may sound very familiar! These men would go on to create Nestlé, one of the largest food and confectionary companies in existence today.
  • The United States is the biggest importer of chocolate in the world! In 2020, the United States imported $2.9 billion worth of chocolate.
  • Projections for 2022 show that Americans will likely spend over $27 billion on their Valentines. This is an increase of over $5 billion compared to last year!
  • Nothing says “I Love You” like a new diamond bracelet! Lovers all across the United States spent a whopping $5.8 billion on jewelry for their significant others in 2021.  
  • Conversation Hearts (also called Sweethearts), while not exactly considered the best-tasting Valentine’s candy, have become a holiday staple since their creation in 1901 by the famous confectionary company Necco. Approximately 8 billion conversation hearts are made every year!

First Sale Valuation and Reducing Section 301 Tariffs

February 10, 2022

2:00 PM ET- 3:00 PM ET

Sandler Travis & Rosenberg

The Census Bureau is proposing to amend its regulations to reflect new export reporting requirements related to the country of origin.  Specially, the Census Bureau is proposing to add a conditional data element, country of origin, when foreign origin is selected in the Foreign/Domestic Origin Indicator field in the Automated Export System (AES).  In addition to the new export reporting requirement, the proposed rule would make remedial changes to the FTR to improve clarity and to correct errors.

 Written comments are requested and must be received on or before February 14, 2022.

Earlier this year, the Uyghur Forced Labor Prevention Act was introduced to the Senate. The bill includes measures to restrict certain goods imported from the Xinjiang Uyghur Autonomous Region due to alleged human rights violations and forced labor being used to manufacture exported goods. The only exceptions for imported goods from this region will be if CBP can establish proof that the goods were not made through exploitive or forced labor practices. The bill will also empower the current administration to impose and enforce sanctions against any businesses or individuals supporting any forced labor practices within the region. This bill was passed in the House on December 8th, and the Senate on December 16.  The bill was signed by the President on December 23, 2021.

On December 13th, Chris Magnus was sworn in as the Commissioner of the United States Customs and Border Protection agency.  The new Commissioner will lead the United States’ largest law enforcement agency, with nearly 65,000 people. Magnus brings with him over 40 years of experience in law enforcement leadership from across the US and has served as police chief in several cities. Magnus has stated that he wants to work together with Congress to address the most pressing issues for the CBP.

On December 23, 2021, the White House issued a proclamation to modify the Harmonized Tariff Schedule of the United States.  The White House Press Release says “Section 1205(a) of the Omnibus Trade and Competitiveness Act of 1988 (the “1988 Act”)…directs the United States International Trade Commission (the “Commission”) to keep the Harmonized Tariff Schedule of the United States (HTS) under continuous review and periodically recommend to the President such modifications to the HTS as the Commission considers necessary or appropriate to accomplish the purposes set forth in that subsection.”  On December 28, 2021 the Presidential proclamation was published in the Federal Register and the new changes will be in effect 30 days later (January 27, 2022).

Flagging for reconciliation allows importers to file their entry summaries using the best available information they have on file and electronically “flag” estimated elements, with the mutual understanding that CBP will receive the actual information at a later date.  Importers can then provide the corrected information on a new type of entry called a Reconciliation.  To read more about reconciliation, check out the link below.

January is National Meat Month, and what better way to celebrate than with the perfect steak dinner! Of course, you’ll need some quality ingredients to serve your protein-rich meal, but where did all these ingredients come from? It may surprise you to find that old traditional steak dinner requires foods and goods from all over the globe to come together on your dinner plate. The package label may say ‘New York Strip Steak’ but there is a fair chance that steak was imported from Canada, Mexico, or New Zealand. Once you get the steak going, you can add some flavor by topping it with some shiitake mushrooms, fresh from South Korea! Next, you’ll want a side for the meal, so scallop some Canadian potatoes and top it with some American cheddar cheese. Of course, you’ll need some greens to balance out the meal - time to toss a salad! Take a big pile of leafy lettuce and ripe tomatoes (both imported from Mexico) and top with some fancy cheese and dressing, both Italian! Considering all the countries that had to come together to plate this one meal, maybe we should call it International Meat Month?

New Product Classifications Under HTSUS 2022

January 11, 2022

2:00 PM ET – 3:30 PM ET

Sandler Travis & Rosenberg

The US Chamber of Commerce has sent a letter to Congress encouraging Congress to take action on renewing GSP (Generalized System of Preferences) and the MTB (Miscellaneous Tariff Bill), both of which expired in December of 2020.  The Chamber pointed out the impact to US business and urged Congress urgently approve this legislation before the end of the year.

On October 1st, APHIS (USDA Animal and Plant Health Inspection Service) began implementing Phase VI of the Lacey Act enforcement scheduled. Last year, APHIS solicited comments on Phase VI and received numerous concerns that trade could be delayed or disrupted if certain products were added to HTS 4415 and required import declarations.  Phase VI now includes rules that benefit shippers by not requiring import declarations on crates, pallets, and other Wood Packaging Materials used to ship goods.  Only new products categorized under HTS 4415 will require declarations upon import.

For further details and a list of all affected products, pleasesee the official statement here  

Starting January 1, 2022 the current tariffs on imports of EU steel (25%) and aluminum (10%) will be replaced with a Tariff-Rate Quota. All steel and aluminum products within-quota will not have any Section 232 duty applied, whereas any steel or aluminum imports that arrive above-quota will be charged their respective Section 232 duty rate. The TRQ will be reviewed annually and recalculated regularly in order to keep up with demand.

Customs Audits 101: What to Expect

December 7, 2021

2:00 PM ET- 3:00 PM ET

1 CCS Credit

Sandler, Travis and Rosenberg

CBP’s website (linked below) for “Official Notice of Extension, Suspension and Liquidation” can be used to determine the status of entries.  Entries must have a status of extension, suspension, or liquidated to produce any results.  Some of the information returned includes Posted date, Liquidation date, Action (meaning change increase or no change, etc.), Port of Entry, Entry date, Entry Type, and the CEE Team designation.

Users can search by entry number along with combinations of filer code and importer of record numbers.  This can be a useful quick check tool to see the status of entries!

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