The Split Shipment and the Missing Certificate
An importer receives a shipment of ceramic tiles in two consignments arriving three weeks apart from the same supplier under one purchase order. The commercial invoice covers the full order, but the certificate of origin provided covers only the first consignment. The importer's broker files the first entry with a preferential claim and files the second entry at the MFN rate to avoid delay. The second consignment's value is $85,000 and the preference would have saved $6,800. The importer now asks the broker to amend the second entry retroactively and claim the preference, arguing the goods are identical to the first consignment and the certificate simply lists a partial quantity. The broker has ten days before the liquidation period closes on the second entry.
1. Can the broker amend the second entry to claim preference? Identify the conditions and risks.
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Amendment is possible only if a valid origin document actually covers the second consignment. The certificate on file covers only the first consignment, and a certificate listing a partial quantity does not, by itself, establish origin for goods it does not describe. The broker should first obtain a corrected or replacement certificate covering the second consignment, or a separate certificate, issued in accordance with the agreement's rules.
If a valid document is obtained before liquidation, a post-entry amendment or protest may be available, subject to the agreement's and national law's time limits. The identical nature of the goods helps substantiate origin but does not substitute for the required documentation.
Risks include denial of the claim, assessment of the $6,800 duty plus interest, and penalty exposure if the amendment is filed without adequate support. Filing an unsupported claim to capture the saving would be a compliance violation. The broker should also confirm whether the first entry's claim remains valid, since a defective certificate could put that claim at risk too.
2. What should the broker advise the importer to do within the ten-day window?
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The broker should advise a two-track approach. First, immediately request a corrected certificate or a new certificate from the supplier covering the second consignment, with a clear description, quantity, and shipment reference. Second, prepare the amendment or protest package so it can be filed as soon as the document arrives, while confirming the exact liquidation and protest deadlines.
If the document cannot be obtained in time, the broker should not file a preference claim on speculation. The importer should preserve the right to protest if a later valid document becomes available within the protest period, and should document the supplier's failure so that any recovery against the supplier is preserved.
The broker should also review why the certificate was issued for a partial quantity, since this may indicate a recurring supplier documentation problem affecting other entries. A written instruction to the importer explaining the options, the deadlines, and the risk of denial protects both parties and demonstrates the broker's diligence.