CSMS Message: 00-001180

TO: ALL DIRECTORS, FIELD OPERATIONS
ALL PORT DIRECTORS

FROM: DIRECTOR, TRADE PROGRAMS

PASS TO: ASSISTANT PORT DIRECTORS, TRADE, IMPORT SPECIALISTS,
INSPECTORS, ENTRY OFFICERS, BROKERS, IMPORTERS AND OTHER
INTERESTED PARTIES

DATE: OCTOBER 6, 2000

SUBJECT: UPDATE ON THE TRADE AND DEVELOPMENT ACT OF 2000: AFRICAN
GROWTH AND OPPORTUNITY (AGOA) / CARIBBEAN BASIN TRADE
PARTNERSHIP ACT (CBTPA)

BACKGROUND:

THE TRADE AND DEVELOPMENT ACT OF 2000 PROVIDES DUTY AND QUOTA FREE
TREATMENT FOR CERTAIN TEXTILES AND APPAREL ARTICLES MADE FROM U.S. AND
REGIONAL FABRICS. IN ADDITION TO TEXTILES, CERTAIN OTHER BENEFITS ARE
BESTOWED UPON ARTICLES ORIGINATING IN BENEFICIARY COUNTRIES OF
SUB-SAHARAN AFRICA OR THE CARIBBEAN BASIN. UNDER AGOA, THESE INCLUDE
"ENHANCED GENERALIZED SYSTEM OF PREFERENCES (GSP)" TREATMENT WITH NEW
RULES OF ORIGIN FOR APPROXIMATELY 2,000 HARMONIZED TARIFF SCHEDULE (HTS)
ITEM NUMBERS. UNDER CBTPA, "NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
PARITY" WILL BE GRANTED FOR APPROXIMATELY 170 HTS ITEM NUMBERS THAT ARE
CURRENTLY EXCLUDED FROM PREFERENTIAL TREATMENT UNDER THE CARIBBEAN BASIN
ECONOMIC RECOVERY ACT (CBERA). ON SEPTEMBER 13, 2000, THIS OFFICE
ISSUED INSTRUCTIONS ADVISING U.S. CUSTOMS OFFICERS NOT TO ACCEPT CLAIMS
FOR PREFERENTIAL TREATMENT UNDER AGOA OR CBTPA UNTIL FURTHER NOTICE.

INFORMATION:

FIVE ACTIONS MUST TAKE PLACE BEFORE PREFERENTIAL TREATMENT CAN BE
GRANTED UNDER EITHER THE AGOA OR THE CBTPA. FIRST, THE PRESIDENT MUST
DESIGNATE ELIGIBLE BENEFICIARY COUNTRIES AND HTS ITEM NUMBERS. SECOND,
THE UNITED STATES TRADE REPRESENTATIVE (USTR) MUST DETERMINE THAT
BENEFICIARY COUNTRIES HAVE IMPLEMENTED AND FOLLOW, OR HAVE TAKEN
APPROPRIATE STEPS TOWARD IMPLEMENTING AND FOLLOWING, CUSTOMS PROCEDURES
DESCRIBED IN THE RESPECTIVE ACTS. NEXT, CUSTOMS REGULATIONS MUST BE
PUBLISHED CONCERNING THE PROCESSES AND PROCEDURES FOR FILING CLAIMS
UNDER EACH ACT. FOR HTS ITEMS 9819.11.09 AND 9820.11.09, SUBJECT TO
TARIFF PREFERENCE LIMITATIONS, CUSTOMS MUST RECEIVE CONVERSION FACTORS
FOR THE VARIOUS UNITS OF MEASURE ASSOCIATED WITH CERTAIN APPAREL ITEM
NUMBERS IN CHAPTERS 61, 62, 64 AND 65, HTS. FINALLY, INSTRUCTIONS TO
CUSTOMS FIELD LOCATIONS AND THE TRADE COMMUNITY MUST BE ISSUED.

FOR PURPOSES OF THE AGOA, PRESIDENTIAL PROCLAMATION 7350, PUBLISHED IN
THE FEDERAL REGISTER OF OCTOBER 2, 2000 (65 FR 59321), DESIGNATED AGOA
BENEFICIARY COUNTRIES. CUSTOMS REGULATIONS FOR THE AGOA WERE PUBLISHED
IN THE FEDERAL REGISTER OF OCTOBER 3, 2000 (65 FR 59668). INSTRUCTIONS
CONCERNING THE AGOA HAVE NOT YET BEEN ISSUED TO CUSTOMS FIELD OFFICES
AND THE TRADE COMMUNITY. THESE INSTRUCTIONS WILL BE ISSUED SHORTLY.
THE USTR HAS NOT YET DETERMINED THAT AGOA BENEFICIARY COUNTRIES HAVE
IMPLEMENTED AND FOLLOW, OR HAVE TAKEN APPROPRIATE STEPS TOWARD
IMPLEMENTING AND FOLLOWING, THE CUSTOMS PROCEDURES DESCRIBED IN THE
AGOA. CUSTOMS HAS NOT RECEIVED THE REQUISITE CONVERSION FACTORS TO
ACCEPT CLAIMS UNDER ITEM NUMBER 9819.11.09, HTS. NO NON-TEXTILE HTS
NUMBERS HAVE BEEN DESIGNATED AS ELIGIBLE FOR THE ENHANCED GSP BENEFITS.
UNTIL THESE ACTIONS HAVE BEEN TAKEN, NO CLAIMS FOR PREFERENTIAL
TREATMENT UNDER THE AGOA MAY BE MADE.

FOR PURPOSES OF THE CBTPA, PRESIDENTIAL PROCLAMATION 7351, PUBLISHED IN
THE FEDERAL REGISTER OF OCTOBER 2, 2000 (65 FR 59329), DESIGNATED CBTPA
BENEFICIARY COUNTRIES AND ELIGIBLE HTS ITEM NUMBERS. ON OCTOBER 4,
2000, THE USTR DETERMINED THAT 10 CBTPA BENEFICIARY COUNTRIES HAVE
IMPLEMENTED AND FOLLOW, OR HAVE TAKEN APPROPRIATE STEPS TOWARD
IMPLEMENTING AND FOLLOWING, THE CUSTOMS PROCEDURES DESCRIBED IN THE
CBTPA. THIS DETERMINATION WILL SOON BE PUBLISHED IN THE FEDERAL
REGISTER. CUSTOMS REGULATIONS FOR THE CBTPA WERE PUBLISHED IN THE
FEDERAL REGISTER OF OCTOBER 4, 2000 (65 FR 59650). CUSTOMS HAS NOT
RECEIVED THE REQUISITE CONVERSION FACTORS TO ACCEPT CLAIMS UNDER ITEM
NUMBER 9820.11.09, HTS. INSTRUCTIONS CONCERNING THE CBTPA HAVE NOT YET
BEEN ISSUED TO CUSTOMS FIELD OFFICES AND THE TRADE COMMUNITY. THESE
INSTRUCTIONS WILL BE ISSUED SHORTLY.

CLAIMS FOR PREFERENTIAL TREATMENT UNDER THE CBTPA FOR QUALIFIED
ORIGINATING GOODS FROM THE 10 COUNTRIES INCLUDED IN THE USTR
DETERMINATION CANNOT BE ACCEPTED UNTIL THE INSTRUCTIONS ARE ISSUED. FOR
MERCHANDISE CLASSIFIED AT 9820.11.09, CLAIMS CANNOT BE ACCEPTED UNTIL
CUSTOMS RECEIVES THE REQUISITE CONVERSION FACTORS. HOWEVER, ONCE THE
INSTRUCTIONS ARE ISSUED AND THE CONVERSION FACTORS ARE RECEIVED,
IMPORTERS MAY AVAIL THEMSELVES OF ALL AVAILABLE POST-ENTRY PROCEDURES,
WITH THE EXCEPTION OF NAFTA 520(D) CLAIMS, TO RECEIVE A REFUND OF DUTIES
FOR THOSE GOODS ENTERED, OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION, ON
OR AFTER OCTOBER 2, 2000, THAT WOULD HAVE BEEN ELIGIBLE FOR PREFERENTIAL
TREATMENT IF THE INSTRUCTIONS HAD BEEN ISSUED.

ACTION:

UNTIL THE ACTIONS DESCRIBED IN THE ABOVE PARAGRAPHS HAVE BEEN TAKEN, NO
CLAIMS FOR PREFERENTIAL TREATMENT UNDER THE AGOA OR CBTPA CAN BE FILED.
THE FIELD IS NOT TO ACCEPT CLAIMS FOR PREFERENTIAL TREATMENT UNDER THESE
ACTS WITHOUT FURTHER NOTICE FROM CUSTOMS HEADQUARTERS.

QUESTIONS ON THESE PROGRAMS SHOULD BE DIRECTED TO CATHY SAUCEDA, CHIEF,
TRADE AGREEMENTS BRANCH, AT 202-927-4198.

/S/
PAUL K. SCHWARTZ, FOR
ELIZABETH G. DURANT

CC: EXECUTIVE DIRECTOR, FIELD OPERATIONS