Resolution:
In the out-of-box CatalogAction.xsd, the Date element comes after the MasterCatalog element which causes parsing errors as the Date element comes before the MasterCatalog element in the mlXML message. To correct this in the CatalogAction.xsd, CatalogActionHeader element needs to be modified as follows:
&ltxs:complexType name="CatalogActionHeader">
        &ltxs:annotation>
            &ltxs:documentation>
            Date
                    Catalog Dates.
            Supplier:
                    Partner information
            Buyer:
                    Partner information
            Contact:
                    Order contact information like shipping contact, receiving contact
            Reference:
                    Other reference documents associated with this document, e.g. Contract etc.
            Instructions:
                    Any comments or any header level instructions
            Attachment:
                    Information about one or more files associated with the order (xCBL)
            The Order of the next elements is important.
                Extension - To extend the description of other elements
                PackageData - Head node of where to store package Data.
                CatalogActionHeaderAck - Acknowledgement Information for Header.
        </xs:documentation>
        </xs:annotation>
        &ltxs:sequence>
            &ltxs:element ref="EventInfo" minOccurs="0"/>
            &ltxs:element ref="ThisDocID" minOccurs="0"/>
            &ltxs:element ref="ActionCode" minOccurs="0" maxOccurs="unbounded"/>

            <!-- Date is not needed here
            &ltxs:element ref="Date" minOccurs="0" maxOccurs="unbounded"/> -->
            &ltxs:element ref="Supplier" minOccurs="0"/>
            &ltxs:element ref="DataSource" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="Date" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="MasterCatalog" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="Action" minOccurs="0"/>
            &ltxs:element ref="ClassificationScheme" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="BuyerCatalogHeader" minOccurs="0"/>
            &ltxs:element ref="CatalogReference" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="Buyer" minOccurs="0"/>
            &ltxs:element ref="Contact" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="Reference" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="ResponseList" minOccurs="0"/>
            &ltxs:element ref="URL" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="URIInfo" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="Instructions" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="Extension" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="PackageData" minOccurs="0" maxOccurs="unbounded"/>
            &ltxs:element ref="CatalogActionHeaderAck" minOccurs="0"/>
        </xs:sequence>
</xs:complexType>