CSMS Message: 01-000057

TO: ALL ABI BROKERS.

FROM: SHAWN FILION

SUBJECT: NAFTA DUTY DEFERRAL INSTR

DATE: 01/04/2001

DECEMBER 20, 2000

ENT-10 FO:TP:IA:TA SF

TO: DIRECTORS, FIELD OPERATIONS
PORT DIRECTORS
ASSISTANT PORT DIRECTORS, TRADE

FROM: EXECUTIVE DIRECTOR, TRADE PROGRAMS

PASS TO: ENTRY SPECIALISTS, ENTRY OFFICERS, IMPORT SPECIALISTS,
INSPECTORS, BROKERS, IMPORTERS AND OTHER
INTERESTED PARTIES

SUBJECT: NAFTA DUTY DEFERRAL INSTRUCTIONS: IMPLEMENTATION
PROCEDURES FOR EXPORTATIONS INTO MEXICO EFFECTIVE
JANUARY 1, 2001

THIS MEMORANDUM PROVIDES DETAILED POLICY AND PROCEDURES FOR
IMPLEMENTING THE NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
DUTY DEFERRAL PROGRAM, INCORPORATING THE REGULATORY REQUIREMENTS
IN 19 CFR 181.53. THESE INSTRUCTIONS ARE FOR IMPLEMENTING THE
NAFTA DUTY DEFERRAL PROGRAM AS IT PERTAINS TO MEXICO.

IN ACCORDANCE WITH THE ATTACHED PROCEDURES, CUSTOMS WILL REQUIRE
THE FILING OF THE NAFTA DUTY DEFERRAL ENTRY TYPE "08" AND WILL
COLLECT, REFUND, WAIVE OR REDUCE ANY ASSESSED REGULAR CUSTOMS
DUTIES FOR WITHDRAWALS FROM THE AFFECTED DUTY DEFERRAL PROGRAMS
FOR SUBSEQUENT EXPORTATIONS TO MEXICO. CUSTOMS WILL ALSO
COLLECT ANTIDUMPING DUTIES, COUNTERVAILING DUTIES, AGRICULTURAL
FEES, AND MERCHANDISE PROCESSING FEES. HOWEVER, THERE WILL BE
NO REFUND, WAIVER OR REDUCTION OF ANTIDUMPING OR COUNTERVAILING
DUTIES OR ANY APPLICABLE FEES.

AUTOMATED COMMERCIAL SYSTEM (ACS) PROGRAMMING FOR EXPORTS TO
MEXICO SUBJECT TO NAFTA DUTY DEFERRAL WILL BE COMPLETED BY
JANUARY 1, 2001. ABI PROGRAMMING SPECIFICATIONS CAN BE FOUND IN
ADMINISTRATIVE MESSAGE ID# 00-1176 ENTITLED "ABI NAFTA DUTY
DEFERRAL FOR MEXICO".

PLEASE DIRECT ALL QUESTIONS REGARDING THESE PROCEDURES TO SHAWN
FILION, TRADE AGREEMENTSBUFFALO AT (716) 551-3053, EXTENSION
313.

\S\
ELIZABETH G. DURANT

ATTACHMENT

CC: EXECUTIVE DIRECTOR, FIELD OPERATIONS

MEMO ATTACHMENT

NAFTA DUTY DEFERRAL 19 CFR 181.53

WHAT IS NAFTA DUTY DEFERRAL?

THE NAFTA DUTY DEFERRAL PROVISIONS AS SET FORTH IN 19 CFR 181.53
APPLY TO FOREIGN MERCHANDISE IMPORTED INTO THE U.S. USING ANY OF
THE THREE AFFECTED DUTY DEFERRAL PROGRAMS, I.E., FOREIGN TRADE
ZONE, BONDED WAREHOUSE, AND TEMPORARY IMPORTATION UNDER BOND.
IF THE MERCHANDISE IS MANUFACTURED OR CHANGED IN CONDITION AND
SUBSEQUENTLY EXPORTED TO CANADA OR MEXICO, THEN UNDER THE NAFTA
DUTY DEFERRAL PROVISIONS THESE WITHDRAWALS FOR EXPORTATION ARE
TREATED AS IF ENTERED FOR CONSUMPTION FOR PURPOSES OF ASSESSING
DUTIES AND FEES. THESE PROVISIONS BECAME EFFECTIVE FOR
WITHDRAWALS FOR EXPORTATION TO CANADA ON JANUARY 1, 1996, AND
WILL BE EFFECTIVE FOR WITHDRAWALS TO MEXICO ON JANUARY 1, 2001.

MERCHANDISE IMPORTED INTO ONE OF THE DUTY DEFERRAL PROGRAMS THAT
IS SUBJECT TO NAFTA DUTY DEFERRAL IS DEFINED AS A "GOOD THAT IS
SUBJECT TO NAFTA DRAWBACK" WITHIN THE MEANING OF 19 U.S.C. 3333
AND WHICH IS NOT DESCRIBED IN 19 CFR 181.45. FOR PURPOSES OF
NAFTA DUTY DEFERRAL, NAFTA ORIGINATING GOODS ARE NOT SUBJECT TO
NAFTA DUTY DEFERRAL.

ANY WITHDRAWALS FROM THE AFFECTED DUTY DEFERRAL PROGRAMS
SUBJECT TO THE NAFTA DUTY DEFERRAL PROVISIONS ^19 CFR
181.53| FOR EXPORTATION TO CANADA OR MEXICO WILL REQUIRE
THE FILING OF A NAFTA DUTY DEFERRAL ENTRY, ENTRY TYPE
"08".

THE WITHDRAWAL AND EXPORTATION OF THE GOODS TO CANADA OR MEXICO
WILL CONTINUE TO BE SUBJECT TO THE EXPORT REQUIREMENTS AND
PROCEDURES FOR EACH OF THE AFFECTED DUTY DEFERRAL PROGRAMS. THE
REQUIREMENT OF A NAFTA DUTY DEFERRAL ENTRY FOR WITHDRAWALS FOR
EXPORT TO CANADA OR MEXICO DOES NOT REPLACE OR CANCEL REGULATORY
EXPORT REQUIREMENTS.

SOME OF THE PRIMARY REGULATORY AND OPERATIONAL REQUIREMENTS THAT
APPLY TO THE NAFTA DUTY DEFERRAL ENTRIES ARE LISTED BELOW.

THE NAFTA DUTY DEFERRAL ENTRY:

1. IS CONSIDERED "CUSTOMS BUSINESS" AS SET FORTH IN 641 OF
THE TARIFF ACT OF 1930.

2. REQUIRES AN ACTIVITY CODE "1", BASIC IMPORTATION AND
ENTRY BOND. THE BOND CONDITIONS SET FORTH IN 19 CFR
113.62 HAVE BEEN EXPANDED IN THE INTERIM REGULATIONS FOR
NAFTA DUTY DEFERRAL TO COVER PROGRAM REQUIREMENTS.

3. IS SUBJECT TO THE ASSESSMENT OF LIQUIDATED DAMAGES FOR:

(A) DUTY OWED, NEVER REPORTED AND PAID, AS REQUIRED BY THE
NAFTA DUTY DEFERRAL PROGRAM, AND
(B) LATE FILING OF THE NAFTA DUTY DEFERRAL ENTRY,
ENTRY TYPE "08".

4. IS SUBJECT TO THE ASSESSMENT OF ANY FEE THAT WOULD HAVE
BEEN ASSESSED PURSUANT TO SECTION 22 OF THE U.S.
AGRICULTURAL ADJUSTMENT ACT.

5. IS SUBJECT TO THE ASSESSMENT OF MERCHANDISE PROCESSING
FEES (MPF).

6. IS NOT SUBJECT TO THE ASSESSMENT OF HARBOR MAINTENANCE
FEES. HARBOR MAINTENANCE FEES ARE ASSESSED ON THE
ORIGINAL IMPORTATION, I.E., THE WAREHOUSE ENTRY OR A
TEMPORARY IMPORTATION UNDER BOND ENTRY AND ARE ASSESSED
AND PAID QUARTERLY ON ADMISSIONS INTO A FOREIGN TRADE
ZONE.

7. IS SUBJECT TO THE ASSESSMENT OF ANY APPLICABLE
ANTIDUMPING AND\OR COUNTERVAILING DUTIES THAT WOULD HAVE
BEEN ASSESSED UPON IMPORTATION INTO THE UNITED STATES.

NOTE: ANTIDUMPING\COUNTERVAILING DUTIES AND FEES
COLLECTED MAY NOT BE REFUNDED, WAIVED OR REDUCED
ON CONDITION OF EXPORT.

8. NAFTA DUTY DEFERRAL ENTRIES ARE PROTESTABLE UNDER
19 USC 1514(A)(3),19 CFR 174.11(C). (EXCEPTION:
PRESENTATION OF SATISFACTORY EVIDENCE AFTER THE
60 DAY CALENDAR PERIOD, IN ORDER TO WAIVE OR REDUCE
U.S. DUTY OWED, IS NOT PROTESTABLE.)

MERCHANDISE NOT SUBJECT TO NAFTA DUTY DEFERRAL

THE TERM "GOODS SUBJECT TO NAFTA DRAWBACK", AS SET FORTH IN 19
USC 3333, MEANS ANY IMPORTED GOOD OTHER THAN THE FOLLOWING:

1. A GOOD ENTERED UNDER BOND FOR TRANSPORTATION AND
EXPORTATION TO A NAFTA COUNTRY;

2. A GOOD EXPORTED TO A NAFTA COUNTRY IN THE SAME CONDITION
AS IMPORTED INTO THE U.S.;

3. A GOOD THAT IS EXPORTED FROM THE U.S. USED AS A MATERIAL
IN THE PRODUCTION OF ANOTHER GOOD AND THAT IS DELIVERED
TO A DUTY-FREE SHOP, FOR SHIP'S STORES OR SUPPLIES FOR
SHIPS OR AIRCRAFT, OR FOR USE IN A PROJECT UNDERTAKEN
JOINTLY BY THE U.S. AND A NAFTA COUNTRY AND DESTINED TO
BECOME THE PROPERTY OF THE U.S.;

4. A GOOD EXPORTED TO A NAFTA COUNTRY FOR WHICH A REFUND OF
CUSTOMS DUTIES IS GRANTED BY REASON OF THE FAILURE TO
CONFORM TO SAMPLE OR SPECIFICATION, OR THE SHIPMENT OF
THE GOOD WITHOUT THE CONSENT OF THE CONSIGNEE;

5. A GOOD THAT QUALIFIES FOR NAFTA UNDER THE RULES OF ORIGIN
SET OUT IN ARTICLE 401 THAT IS USED AS A MATERIAL IN THE
PRODUCTION OF ANOTHER GOOD AND EXPORTED TO A NAFTA
COUNTRY;

6. A GOOD PROVIDED FOR IN SUBHEADING 1701.11.02 OF THE HTS
THAT IS USED AS A MATERIAL IN THE PRODUCTION OF A GOOD
PROVIDED FOR IN EXISTING CANADIAN TARIFF ITEM 1701.99.00
OR EXISTING MEXICAN TARIFF ITEM 1701.99.01 OR 1701.99.99;

7. A CITRUS PRODUCT THAT IS EXPORTED TO CANADA, OR

8. A GOOD USED AS A MATERIAL IN THE PRODUCTION OF
APPAREL, OR A GOOD PROVIDED FOR IN SUBHEADING 6307.90.99,
5811.00.20, 5811.00.30 OF THE HTS, THAT IS EXPORTED TO
CANADA AND THAT IS SUBJECT TO CANADA'S
MOST-FAVORED-NATION RATE OF DUTY UPON IMPORTATION INTO
CANADA.

THE TERM "SAME CONDITION", AS DEFINED IN 19 CFR 181.45(B)(1),
INCLUDES A GOOD THAT HAS BEEN SUBJECTED TO ANY OF THE FOLLOWING
OPERATIONS PROVIDED THAT THE OPERATION DOES NOT MATERIALLY ALTER
THE CHARACTERISTICS OF THE GOOD:

1. MERE DILUTION WITH WATER OR ANOTHER SUBSTANCE;
2. CLEANING, INCLUDING REMOVAL OF RUST, GREASE, PAINT OR
OTHER COATINGS;
3. APPLICATION OF PRESERVATIVE, INCLUDING LUBRICANTS,
PROTECTIVE ENCAPSULATION, OR PRESERVATION PAINT;
4. TRIMMING, SLITTING, FILING OR CUTTING;
5. PUTTING UP IN MEASURED DOSES, OR PACKING, REPACKING,
PACKAGING OR REPACKAGING; OR
6. TESTING, MARKING, LABELING, SORTING OR GRADING.

AFFECTED DUTY DEFERRAL PROGRAMS

FOREIGN TRADE ZONES - 19 CFR 181.53(B)(4)-
MERCHANDISE THAT IS MANUFACTURED OR CHANGED IN CONDITION IN A
FOREIGN TRADE ZONE AND THEN WITHDRAWN FROM THE ZONE FOR
EXPORTATION TO CANADA OR MEXICO IS SUBJECT TO NAFTA DUTY
DEFERRAL.

ALL MERCHANDISE IMPORTED AND ADMITTED INTO A ZONE IS GIVEN A
"ZONE" STATUS. THE FOLLOWING ARE THE VARIOUS TYPES OF ZONE
STATUS: NONPRIVILEGED FOREIGN, PRIVILEGED FOREIGN, DOMESTIC AND
ZONE RESTRICTED. FOR THE DUTY DEFERRAL PROGRAM, CUSTOMS IS
MAINLY CONCERNED WITH MERCHANDISE PUT INTO NONPRIVILEGED FOREIGN
AND PRIVILEGED FOREIGN STATUS.

DOMESTIC ZONE STATUS -
MERCHANDISE PLACED IN AN FTZ IN DOMESTIC STATUS IS NOT SUBJECT
TO NAFTA DUTY DEFERRAL IF THE GOODS ARE OF U.S. ORIGIN OR IF
U.S. DUTY HAS BEEN PAID PRIOR TO ADMISSION INTO THE ZONE.

RESTRICTED ZONE STATUS -
MERCHANDISE ADMITTED INTO THE ZONE TO SATISFY BOND CANCELLATION
REQUIREMENTS FOR A TIB, ENTERED UNDER HTS 9813.00.05, IS NOT
SUBJECT TO NAFTA DUTY DEFERRAL UNTIL ACTUAL WITHDRAWAL FROM THE
ZONE FOR EXPORTATION TO A NAFTA COUNTRY.

BONDED WAREHOUSES 19 CFR 181.53(B)(1)(2)(3) -
MERCHANDISE THAT IS ENTERED INTO A BONDED WAREHOUSE FOR
MANUFACTURING, SMELTING, REFINING (CLASSES 6 & 7) AND\OR
MANIPULATION (CLASS 8) AND WITHDRAWN FOR EXPORTATION TO A NAFTA
COUNTRY IS SUBJECT TO NAFTA DUTY DEFERRAL.

TEMPORARY IMPORTATION UNDER BOND 19 CFR 181.53(B)(5) -
MERCHANDISE ENTERED UNDER HTS SUBHEADING 9813.00.05 FOR REPAIR,
ALTERATION AND PROCESSING IS SUBJECT TO NAFTA DUTY DEFERRAL UPON
EXPORTATION TO CANADA OR MEXICO.

NAFTA DUTY DEFERRAL ENTRY SUMMARY

PERSONS REQUIRED TO FILE DUTY DEFERRAL ENTRY
19 CFR 181.53(A)(2)(III)

THE FOLLOWING PERSONS ARE RESPONSIBLE FOR FILING DUTY DEFERRAL
ENTRIES:

FTZ - THE PERSON WITH THE RIGHT TO MAKE ENTRY INTO THE ZONE,
BONDED WAREHOUSE - THE PERSON WITH THE RIGHT TO WITHDRAW FROM
THE WAREHOUSE, AND
TIB - THE IMPORTER OF RECORD.

DATE OF EXPORTATION 19 CFR 181.53(A)(I)

THE "DATE OF EXPORT" IS DEFINED AS THE DATE OF IMPORTATION INTO
CANADA OR MEXICO. THIS "DATE OF EXPORT" EQUATES TO THE "DATE OF
ENTRY" AS FOUND IN BLOCK 4 ON THE CF 7501.

THE DATE OF EXPORT UNDER THE DUTY DEFERRAL PROVISIONS STARTS THE
FILING PERIOD FOR:

1. THE NAFTA DUTY DEFERRAL ENTRY - PART I AND
THE NAFTA DUTY DEFERRAL CLAIM - PART II

2. THE TIME FOR PAYMENT OF DUTIES AND FEES OWED TO THE U.S. UPON
EXPORT OF THE GOODS TO CANADA OR MEXICO.

FILING OF THE DUTY DEFERRAL ENTRY PART I & DUTY DEFERRAL CLAIM
PART II -

THE NAFTA DUTY DEFERRAL ENTRY AND CLAIM ARE DESIGNATED AS ENTRY
TYPE CODE "08" AND ARE AUTOMATED FOR USE WITHIN THE AUTOMATED
BROKER INTERFACE (ABI) AND THE AUTOMATED COMMERCIAL SYSTEM
(ACS).

THE NAFTA DUTY DEFERRAL ENTRY SUMMARY CONSISTS OF TWO PARTS.
THE ENTRY (PART I), WHICH IS MANDATORY, CONSISTS OF THE U.S.
IMPORT\EXPORT INFORMATION SETTING FORTH THE FILER'S OBLIGATION
FOR U.S. DUTIES DUE AND PAYABLE. THE CLAIM (PART II), WHICH IS
OPTIONAL, CONSISTS OF THE REQUIRED SATISFACTORY EVIDENCE, I.E.,
THE CANADIAN OR MEXICAN ENTRY INFORMATION, SUBMITTED TO CLAIM A
WAIVER OR REDUCTION OF U.S. DUTIES OWED ALONG WITH ANY PAYMENT
OF ANY DUTIES AND FEES. THE NAFTA DUTY DEFERRAL ENTRY AND CLAIM
MUST BE REPORTED ON A CF 7501 AS SET FORTH IN 19 CFR 181.53
(A)(2)(III)(B). THE YELLOW STATISTICAL COPY OF THE CF 7501 WILL
NOT BE REQUIRED. STATISTICAL INFORMATION FOR EXPORTATIONS TO
CANADA WILL CONTINUE TO BE REPORTED TO THE BUREAU OF CENSUS FROM
THE CANADIAN STATISTICAL AGENCY, STATISTICS CANADA. STATISTICAL
INFORMATION FOR EXPORTATIONS TO MEXICO WILL BE CAPTURED ON THE
SHIPPER'S EXPORT DECLARATION, DEPARTMENT OF COMMERCE FORM
7525-V. THE ENTRY SUMMARY REQUIRES A CF 301, ACTIVITY CODE "1"
BASIC IMPORTATION AND ENTRY BOND, AS SET FORTH IN 19 CFR 113.62.

PART I - NAFTA DUTY DEFERRAL ENTRY:

THE NAFTA DUTY DEFERRAL ENTRY MUST BE FILED ON A CF 7501 WITHIN
10 WORKING DAYS AFTER THE DATE OF EXPORT. THE ENTRY FILER MUST
REPORT THE HTS CLASSIFICATION OF THE FOREIGN GOOD, RATE OF DUTY
AND U.S. DUTY OWED. THE HTS CLASSIFICATION OF THE FINISHED GOOD
IN ITS CONDITION AT THE TIME OF EXPORT MUST ALSO BE REPORTED.

THERE IS NO "RELEASE" PROCEDURE WITH THIS PROCESS. THE DUTY
DEFERRAL ENTRY SUMMARY PROCEDURES DO NOT REPLACE THE USUAL
PROCESSING PROCEDURES REQUIRED FOR EXPORTATION OF MERCHANDISE
WHICH IS COVERED BY THE AFFECTED DUTY DEFERRAL PROGRAMS, I.E.,
FOREIGN TRADE ZONE, BONDED WAREHOUSE AND TEMPORARY IMPORTATION
UNDER BOND. EXPORTATIONS TO CANADA OR MEXICO WILL CONTINUE TO
BE MOVED AND PROCESSED UNDER THE USUAL EXPORTATION PROCEDURES.
THEREFORE, NO CF 3461 IS REQUIRED.

INVOICES ARE NOT REQUIRED FOR THESE ENTRIES. DUTY DEFERRAL
ENTRIES ARE SUPPORTED BY THE ORIGINAL IMPORTATION WAREHOUSE AND
TIB ENTRIES. WAREHOUSE AND TIB ENTRY SUMMARY NUMBERS MUST BE
REPORTED ON THE PART I NAFTA DUTY DEFERRAL ENTRY. GOODS
EXPORTED FROM AN FTZ MUST HAVE THE FTZ NUMBER REPORTED ON PART I
SINCE THERE WILL BE NO FTZ ENTRY NUMBER TO REFERENCE. THE
FOREIGN GOODS ON FTZ DUTY DEFERRAL ENTRIES ARE SUPPORTED BY A CF
214, WHICH ITEMIZES THE GOODS ADMITTED INTO ZONES.

PART II - NAFTA DUTY DEFERRAL CLAIM:

THE OPTIONAL NAFTA DUTY DEFERRAL CLAIM, REPORTING THE CLAIM FOR
A WAIVER OF REDUCTION OF DUTIES, I.E. SATISFACTORY EVIDENCE,
MUST BE FILED ON A CF 7501 WITHIN 60 CALENDAR DAYS FROM THE DATE
OF EXPORT. THE ENTRY SUMMARY NUMBER SUBMITTED ON THE ENTRY -
PART I MUST BE USED TO FILE THE PART II CLAIM. THE PAYMENT OF
THE U.S. DUTIES AND FEES OWED ALONG WITH THE SATISFACTORY
EVIDENCE MUST BE FILED NO LATER THAN 60 CALENDAR DAYS AFTER THE
DATE OF EXPORT TO THE NAFTA COUNTRY.

AS REQUIRED IN 19 CFR 181.53(C), RECORD KEEPING REQUIREMENTS,
THE PERSON CLAIMING A WAIVER OR REDUCTION OF U.S. DUTY ON GOODS
UNDER THE NAFTA DUTY DEFERRAL PROGRAM WILL MAINTAIN ADEQUATE
EVIDENCE OF THE AMOUNT OF ANY CUSTOMS DUTIES PAID TO CANADA OR
MEXICO ON THE EXPORTED GOOD. FAILURE TO MAINTAIN SUCH RECORDS
WILL RESULT IN THE DENIAL OF THE CLAIM FOR WAIVER OR REDUCTION
OF DUTY.

WAIVER OR REDUCTION OF U.S. DUTIES

ALONG WITH REQUIRING THE ASSESSMENT OF DUTY ON THE MERCHANDISE
BEING EXPORTED, THE DUTY DEFERRAL PROVISIONS PROVIDE FOR A
WAIVER OR REDUCTION OF U.S. DUTIES DEPENDING ON THE DUTIES PAID,
IF ANY, IN CANADA OR MEXICO ^19CFR 181.53(A)(3)|.

THEREFORE, ONCE THE GOOD IS EXPORTED, THE FILER SHOULD COMPARE
THE DUTIES PAID IN THE NAFTA COUNTRY ON THE EXPORTED GOOD TO THE
DUTIES OWED IN THE U.S. ON THE IMPORTED FOREIGN MERCHANDISE.

IF THE CANADIAN OR MEXICAN DUTY IS MORE THAN THE U.S. DUTY
OWED, THE FILER IS ALLOWED TO WAIVE THE ENTIRE U.S. DUTY
OBLIGATION.

IF THE CANADIAN OR MEXICAN DUTY OWED IS LESS THAN THE U.S.
DUTY OWED, THE FILER IS ALLOWED TO SUBTRACT THE AMOUNT OF
CANADIAN OR MEXICAN DUTY PAID AGAINST THE U.S. DUTY OWED AND
PAY THE U.S. THE REMAINDER.

EXAMPLE: COMPANY XYZ IMPORTS FOREIGN COCOA INTO THE U.S. AND
MAKES A WAREHOUSE ENTRY. COMPANY XYZ MANUFACTURES HOT
CHOCOLATE MIX BY COMBINING THE IMPORTED COCOA WITH SUGAR AND
OTHER INGREDIENTS AND PACKAGING IT IN RETAIL SIZE CONTAINERS.
UPON WITHDRAWAL OF THE HOT CHOCOLATE MIX FROM THE WAREHOUSE
FOR IMMEDIATE EXPORTATION TO CANADA, A NAFTA DUTY DEFERRAL CF
7501, PART I, IS FILED SHOWING $900 IN ESTIMATED DUTY DUE ON
THE IMPORTED COCOA. COMPANY XYZ, HOWEVER, DOES NOT PAY THE
DUTY AT THIS TIME. CANADA ASSESSES THE EQUIVALENT OF US $800
ON THE IMPORTED HOT CHOCOLATE MIX. COMPANY XYZ SUBMITS TO
U.S. CUSTOMS, ON A CF 7501 - PART II, EVIDENCE OF EXPORTATION
TO CANADA AND A CANADIAN K-84 STATEMENT SHOWING PAYMENT OF US
$800 EQUIVALENT IN DUTIES TO CANADA. COMPANY XYZ IS ONLY
REQUIRED TO PAY $100 IN U.S. DUTIES OUT OF THE ORIGINAL $900
U.S. DUTY AMOUNT REFLECTED ON PART I OF THE CF 7501.

TIME FRAME FOR FILING A CLAIM TO WAIVE OR REDUCE U.S. DUTY OWED -

THE DUTY DEFERRAL PROVISIONS ALLOW A 60 CALENDAR DAY TIME FRAME
FOR PAYING U.S. DUTIES AND FEES OWED. THE 60 DAY CLOCK BEGINS
THE DAY THE MERCHANDISE IS EXPORTED TO CANADA OR MEXICO. THIS
TIME FRAME PROVIDES THE FILER A SUFFICIENT AMOUNT OF TIME TO
OBTAIN THE CANADIAN OR MEXICAN ENTRY INFORMATION, I.E. THE
SATISFACTORY EVIDENCE, TO SUBSTANTIATE THE WAIVER OR REDUCTION
OF U.S. DUTIES. IF THE FILER DOES NOT SUBMIT A CLAIM FOR WAIVER
OR REDUCTION WITHIN THE 60 DAY TIME FRAME, HE OR SHE IS LIABLE
FOR PAYMENT OF THE FULL U.S. DUTIES ASSESSED WITHOUT ANY WAIVER
OR REDUCTION. FAILURE TO PRESENT SATISFACTORY EVIDENCE, AFTER
THE 60 DAY CALENDAR PERIOD, IS NOT PROTESTABLE.

SATISFACTORY EVIDENCE 19 CFR 181.53(A)(3)(II) -

THE SATISFACTORY EVIDENCE IS THE CANADIAN OR MEXICAN IMPORT
ENTRY INFORMATION THAT IS SUBMITTED ON THE CF 7501, PART II,
WHICH ALLOWS THE PERSON CLAIMING DUTY DEFERRAL TO WAIVE OR
REDUCE U.S. DUTY OWED. THE SATISFACTORY EVIDENCE CONSISTS OF
THE FOLLOWING:

1. THE CANADIAN OR MEXICAN IMPORT ENTRY NUMBER,
2. THE DATE OF IMPORTATION (IN CANADA OR MEXICO),
3. THE TARIFF CLASSIFICATION NUMBER (IN CANADA OR MEXICO),
4. THE RATE OF DUTY (IN CANADA OR MEXICO), AND
5. THE AMOUNT OF DUTIES PAID (BOTH IN U.S. AND CANADIAN DOLLARS
OR MEXICAN PESOS).

LIKE THE CERTIFICATE OF ORIGIN FOR NAFTA CLAIMS, THE ACTUAL
PAPER DOCUMENTATION SUPPORTING THE CANADIAN OR MEXICAN IMPORT
INFORMATION IS NOT REQUIRED UPON SUBMISSION OF THE NAFTA DUTY
DEFERRAL ENTRY. HOWEVER, CUSTOMS CAN REQUEST THE PAPER
DOCUMENTATION TO VERIFY THE CLAIM FOR REDUCTION OR WAIVER OF
DUTIES.

SATISFACTORY EVIDENCE MAY BE SUBMITTED IN THE FORM OF ONE OR
MORE OF THE DOCUMENTS LISTED BELOW, WHICH IS PROVIDED FOR IN 19
CFR 181.47:

1. THE CANADIAN ENTRY DOCUMENT, REFERRED TO AS THE CANADA
CUSTOMS INVOICE B-3, PRESENTED WITH EITHER THE K-84
STATEMENT OR THE DETAILED CODING STATEMENT,

2. THE FINAL CUSTOMS DUTY DETERMINATION IN CANADA,

3. THE MEXICAN ENTRY DOCUMENT, REFERRED TO AS THE
"PEDIMENTO", AND\OR

4. AN AFFIDAVIT FROM THE PERSON CLAIMING DUTY DEFERRAL. THE
AFFIDAVIT MUST BE BASED ON INFORMATION RECEIVED FROM THE
IMPORTER OF THE GOOD IN CANADA OR MEXICO.

LIQUIDATION

THE DUTY DEFERRAL REGULATIONS PROVIDE SPECIFIC INSTRUCTIONS ON
LIQUIDATION OF THE NAFTA DUTY DEFERRAL ENTRY. (PLEASE NOTE
THESE INSTRUCTIONS ARE BASED ON INTERIM REGULATIONS THAT MAY BE
SUBJECT TO CHANGE UPON THE ISSUANCE OF FINAL REGULATIONS.)

1. CUSTOMS WILL LIQUIDATE THE NAFTA DUTY DEFERRAL ENTRY BY
COMPARING THE EVIDENCE SUBMITTED VERIFYING THE TOTAL
AMOUNT OF CANADIAN OR MEXICAN DUTY PAID TO THE TOTAL
AMOUNT OF U.S. DUTY OWED ON THE FOREIGN GOODS.

2. THE LIQUIDATION OF THE NAFTA DUTY DEFERRAL ENTRY WILL
APPEAR ON THE BULLETIN NOTICE OF LIQUIDATION.

3. THE BULLETIN NOTICE OF LIQUIDATION WILL BE THE LEGAL
NOTIFICATION OF CUSTOMS FINALIZING THE ENTRY.

LIQUIDATION OF THE ENTRY IF NO CLAIM IS FILED
19 CFR 181.53 (A)(4)(I) -

FOR NAFTA DUTY DEFERRAL ENTRIES SUBMITTED WITHOUT A FOLLOW-UP
CLAIM OR PAYMENT OF DUTIES AND FEES OWED, CUSTOMS WOULD
LIQUIDATE AND ISSUE A BILL FOR THE TOTAL AMOUNT INDICATED ON THE
PART I OF THE DUTY DEFERRAL ENTRY.

IF THE ENTRY IS NOT LIQUIDATED OR EXTENDED WITHIN ONE YEAR FROM
THE DATE OF THE ENTRY, THE ENTRY WILL BE DEEMED LIQUIDATED BY
OPERATION OF LAW IN THE AMOUNT REPORTED ON THE PART I OF THE
DUTY DEFERRAL ENTRY.

A 514 PROTEST CAN BE FILED WITHIN 90 DAYS OF THE POSTING OF THE
LIQUIDATION. HOWEVER, THIS CANNOT BE A PROTEST TO PRESENT THE
SATISFACTORY EVIDENCE FOR A WAIVER OR REDUCTION OF DUTIES.

LIQUIDATION OF ENTRY IF A CLAIM IS FILED
19 CFR 181.53 (A)(4)(II) -

THIS PART OF THE INTERIM REGULATION STATES THAT IF A CLAIM IS
RECEIVED, AN EXTENSION OF LIQUIDATION OF THE ENTRY WILL TAKE
EFFECT FOR A PERIOD NOT TO EXCEED 3 YEARS FROM THE DATE THE
ENTRY WAS FILED. BEFORE THE CLOSE OF THE EXTENSION PERIOD,
CUSTOMS WILL LIQUIDATE THE ENTRY. IF THE ENTRY IS NOT LIQUIDATED
WITHIN 4 YEARS FROM THE DATE OF ENTRY, IT WILL BE DEEMED
LIQUIDATED BY OPERATION OF LAW.

RELIQUIDATION PURSUANT TO 19 USC 1508 (B)(2)(B)(III),
19 CFR 181.53(E) -

CUSTOMS MAY RELIQUIDATE A NAFTA DUTY DEFERRAL ENTRY UNDER 19 USC
1508 AT ANY TIME WITHIN 3 YEARS FROM THE DATE OF EXPORT EVEN
AFTER THE LIQUIDATION OF THE ENTRY HAS BECOME FINAL. THIS TYPE
OF RELIQUIDATION IS FOR SITUATIONS IN WHICH THE DUTY USED TO
WAIVE OR REDUCE U.S. DUTIES HAVE BEEN REFUNDED BY CANADA OR
MEXICO. AFTER THIS 3 YEAR PERIOD THE LIQUIDATION OF THE ENTRY
IS FINAL.

EXPORTATIONS FROM U.S. DUTY DEFERRAL PROGRAMS TO A CANADIAN OR
MEXICAN DUTY DEFERRAL PROGRAM

THE NAFTA DUTY DEFERRAL PROVISIONS ALSO PROVIDE FOR MERCHANDISE
IMPORTED INTO THE U.S. USING ANY OF THE THREE AFFECTED DUTY
DEFERRAL PROGRAMS, I.E., FOREIGN TRADE ZONE, BONDED WAREHOUSE,
AND TEMPORARY IMPORTATION UNDER BOND, MANUFACTURED OR CHANGED IN
CONDITION AND SUBSEQUENTLY ENTERED INTO A DUTY DEFERRAL PROGRAM
IN CANADA OR MEXICO. THE ENTRY OF THE EXPORTED GOOD INTO A DUTY
DEFERRAL PROGRAM IN CANADA OR MEXICO CONSTITUTES AN ENTRY OR
WITHDRAWAL FOR CONSUMPTION AND THE EXPORTED GOOD IS SUBJECT TO
DUTY AND FEES PURSUANT TO 19 CFR 181.53 (A)(2)(I)(B). DUTY AND
FEES WILL BE DEPOSITED WITH CUSTOMS 60 CALENDAR DAYS, ON AN
NAFTA DUTY DEFERRAL ENTRY TYPE "08", AFTER THE DATE THE GOOD IS
ENTERED INTO THE DUTY DEFERRAL PROGRAM IN CANADA OR MEXICO.

THE FILER MAY RECEIVE A REFUND ON THE REGULAR CUSTOMS DUTIES
PAID ON THE NAFTA DUTY DEFERRAL ENTRY ONCE THE EXPORTED GOOD IS
WITHDRAWN FROM THE DUTY DEFERRAL PROGRAM IN CANADA OR MEXICO.

IF THE GOOD IN THE CANADIAN OR MEXICAN DUTY DEFERRAL PROGRAM IS
WITHDRAWN AND ENTERED INTO THE COMMERCE OF CANADA OR MEXICO, THE
FILER CAN CLAIM DRAWBACK UNDER 19 CFR 181.44 IF THE GOOD IS
WITHDRAWN WITHIN FIVE YEARS FROM THE DATE OF THE ORIGINAL
IMPORTATION OF THE GOOD INTO THE U.S.

IF THE GOOD WITHIN THE CANADIAN OR MEXICAN DUTY DEFERRAL PROGRAM
IS WITHDRAWN AND EXPORTED TO A NON-NAFTA COUNTRY, DUTY DEFERRAL
WILL NOT APPLY AND A REFUND OF DUTIES MAY BE GRANTED UPON
PRESENTATION OF SATISFACTORY EVIDENCE OF THE EXPORTATION OF THE
GOOD.

COLLECTION OF DUTIES & FEES

THE FOLLOWING DUTIES AND FEES WILL BE ASSESSED AND COLLECTED ON
THOSE WITHDRAWALS FROM THE DUTY DEFERRAL PROGRAMS SUBJECT TO
NAFTA DUTY DEFERRAL:

1. CUSTOMS DUTIES - CLASS CODE 014,
2. ANTIDUMPING AND
OR COUNTERVAILING DUTIES,
3. MERCHANDISE PROCESSING FEES, AND
4. AGRICULTURAL FEES.

THE FULL DUTIES AND FEES OWED ARE DUE NO LATER THAN 60 CALENDAR
DAYS FROM THE DATE OF EXPORT. THE PROVISIONS FOR CLAIMING A
WAIVER OR REDUCTION OF THE DUTIES OWED APPLY ONLY TO THE CUSTOMS
DUTIES AND MUST BE CLAIMED WITHIN THE 60 DAY TIME FRAME. DUTIES
AND FEES MAY BE PAID AT ANY TIME WITHIN THE 60 DAY TIME FRAME
FROM THE DATE OF EXPORT AND PAYMENT UPON FILING OF THE DUTY
DEFERRAL ENTRY PART I IS NOT PRECLUDED. FOR EXAMPLE, THIS MIGHT
OCCUR WHEN THE FILER KNOWS THE EXPORTATION TO CANADA OR MEXICO
HAS A CANADIAN OR MEXICAN DUTY RATE OF "FREE" AND THEREFORE, THE
FILER WOULD NOT BE ABLE TO CLAIM A WAIVER OR REDUCTION OF THE
U.S. DUTY OBLIGATION. UNDER THIS CIRCUMSTANCE, THERE WOULD BE
NO SATISFACTORY EVIDENCE TO SHOW THE AMOUNT OF DUTIES PAID IN
CANADA OR MEXICO.

DUTY CALCULATION FOR EXPORTATIONS SUBJECT TO NAFTA DUTY DEFERRAL

THE FOLLOWING IS A SUMMARY OF HOW THE DUTY IS ASSESSED ON
MERCHANDISE WITHDRAWN FROM EACH DUTY DEFERRAL PROGRAM FOR
EXPORTATION TO CANADA OR MEXICO.

BONDED WAREHOUSE 19 CFR 181.53 (B)(1)(2)(3) -

MANIPULATION 19 CFR 181.53(B)(1)

GOODS IMPORTED INTO A BONDED WAREHOUSE AND CHANGED IN
CONDITION AFTER MANIPULATION WILL BE ASSESSED DUTY ON THE
GOODS IN THEIR CONDITION AND QUANTITY AND AT ITS WEIGHT AT
THE TIME OF WITHDRAWAL FOR EXPORTATION TO CANADA OR MEXICO.

BONDED MANUFACTURING WAREHOUSE 19 CFR 181.53(2)

GOODS IMPORTED INTO A MANUFACTURING WAREHOUSE AND EXPORTED TO
CANADA OR MEXICO WILL BE ASSESSED DUTY ON THE MATERIALS IN
THEIR CONDITION AND QUANTITY AND AT THEIR WEIGHT AT THE TIME
OF THEIR IMPORTATION INTO THE U.S.

BONDED SMELTING OR REFINING WAREHOUSE 19 CFR 181.53(B)(3)

METAL-BEARING MATERIALS IMPORTED INTO A BONDED SMELTING AND
REFINING WAREHOUSE WILL BE ASSESSED DUTY ON THE IMPORTED
MATERIAL AT THE TIME OF ITS IMPORTATION.

FOREIGN TRADE ZONES 19 CFR 181.53(B)(4) -

GOODS THAT ARE MANUFACTURED OR CHANGED IN CONDITION IN A
FOREIGN TRADE ZONE AND THEN WITHDRAWN FROM THE ZONE FOR
EXPORTATION TO CANADA OR MEXICO ARE SUBJECT TO NAFTA DUTY
DEFERRAL.

NONPRIVILEGED FOREIGN STATUS

GOODS IN NONPRIVILEGED FOREIGN STATUS ARE ASSESSED DUTY ON
THE GOODS IN THEIR CONDITION AND QUANTITY AND AT ITS WEIGHT
AT THE TIME OF ITS EXPORTATION FROM THE ZONE TO CANADA OR
MEXICO.

PRIVILEGED FOREIGN

GOODS IN PRIVILEGED FOREIGN STATUS WILL BE ASSESSED DUTY ON
THE GOODS IN THEIR CONDITION AND QUANTITY AND AT ITS WEIGHT
AT THE TIME PRIVILEGED STATUS IS GRANTED UPON ADMISSION INTO
THE ZONE.

TEMPORARY IMPORTATION UNDER BOND 19 CFR 181.53(B)(5) -

NAFTA DUTY DEFERRAL APPLIES SPECIFICALLY TO GOODS ENTERED
UNDER HTS SUBHEADING 9813.00.05 FOR REPAIR, ALTERATION AND
PROCESSING. DUTY WILL BE ASSESSED ON THE MERCHANDISE AT THE
TIME OF ITS IMPORTATION INTO THE U.S.

EXCEPTION:

MERCHANDISE, REGARDLESS OF THE ORIGIN, IMPORTED FROM A NAFTA
COUNTRY FOR REPAIR OR ALTERATION AND EXPORTED BACK TO A NAFTA
COUNTRY IS NOT SUBJECT TO THE NAFTA DUTY DEFERRAL PROVISIONS.

AN EXAMPLE WOULD BE:

A GERMAN X-RAY MACHINE IS IMPORTED TO THE U.S. FROM
CANADA FOR REPAIR AND EXPORTATION BACK TO CANADA. THIS
IMPORTATION WOULD NOT BE SUBJECT TO THE DUTY DEFERRAL
PROVISIONS UPON EXPORTATION BACK TO CANADA.

HOWEVER, IF THAT SAME X-RAY MACHINE WAS IMPORTED DIRECTLY
FROM GERMANY TO THE U.S. FOR REPAIR AND THEN SOLD TO A
CANADIAN COMPANY, THE X-RAY MACHINE WOULD BE SUBJECT TO
THE NAFTA DUTY DEFERRAL PROVISIONS UPON ITS EXPORTATION
TO CANADA.

THIS EXCEPTION TO THE TIB PROVISIONS IN 19 CFR
181.53(B)(5) IS INCLUDED TO BE CONSISTENT WITH THE
TEMPORARY ADMISSIONS PORTION OF THE NAFTA. PLEASE NOTE
THE EXCEPTION DOES NOT APPLY TO THE PROCESSING PORTION OF
TIB PROVISIONS.

WEEKLY NAFTA DUTY DEFERRAL ENTRIES

CONSOLIDATED WEEKLY NAFTA DUTY DEFERRAL ENTRIES WILL BE ALLOWED.
FOR REPORTING PURPOSES, THE DATE OF EXPORT WILL BE THE EARLIEST
CANADIAN OR MEXICAN DATE OF IMPORT DURING THE CALENDAR WEEK.
AGAIN, THE CF 3461, ENTRY\IMMEDIATE DELIVERY, IS NOT REQUIRED.

CONSOLIDATED WEEKLY ENTRIES WILL BE ALLOWED UNDER THE FOLLOWING
BASIC CONDITIONS:

1. CONTINUOUS BOND ON FILE, AND
2. PORT APPROVAL.

VERIFICATION OF THE NAFTA DUTY DEFERRAL ENTRY

THE INFORMATION SUBMITTED AS SATISFACTORY EVIDENCE FOR WAIVER OR
REDUCTION OF DUTIES IS SUBJECT TO VERIFICATION THROUGH A DATA
EXCHANGE WITH THE CUSTOMS ADMINISTRATIONS OF CANADA AND MEXICO
AND BY ENTRY SPECIALISTS THROUGH REQUESTS OF SUPPORTING
DOCUMENTATION (19 CFR 181.54).

ABI PROCESSING

THE NAFTA DUTY DEFERRAL ENTRY INFORMATION NECESSARY TO SATISFY A
FILER'S OBLIGATION TO REPORT DUTIES DUE ON AFFECTED FOREIGN
GOODS EXPORTED TO CANADA OR MEXICO IS REQUIRED TO BE TRANSMITTED
BY THE 10TH WORKING DAY AFTER THE DATE OF EXPORT.

THE DATA TRANSMISSION WILL CREATE AN ABI ENTRY RECORD,
ACCESSIBLE BY CUSTOMS THROUGH ACS. THE FILER WILL BE ALLOWED
TO ADD, CORRECT AND DELETE LINE ITEM DATA UNTIL THE ABI
TRANSMISSION ENTRY RECORD HAS BEEN PUT INTO CUSTOMS "ENTRY
ACCEPTED" STATUS.

HOWEVER, THE FILER WILL NOT BE ALLOWED TO DELETE THE "HEADER
RECORD". THE FIELD OFFICE WHERE THE ENTRY IS FILED WILL PROCESS
CANCELLATION OF THE "HEADER RECORD". REQUESTS FOR CANCELLATION
WILL REQUIRE SUBSTANTIATING INFORMATION AND\OR DOCUMENTATION.

ABI FILERS, TRANSMITTING THEIR NAFTA DUTY DEFERRAL ENTRIES, WILL
DEFER THE FILING OF THE PAPER CF 7501 CONTAINING THE
IMPORT\EXPORT INFORMATION OF THE ENTRY (PART I) UNTIL THE
SUBMISSION OF THE CANADIAN OR MEXICAN ENTRY INFORMATION
SUPPORTING THE WAIVER OR REDUCTION OF U.S. DUTIES (PART II)
AND\OR THE PAYMENT OF TOTAL DUTIES AND FEES OWED.

ABI FILERS ARE ABLE TO TRANSMIT BOTH THE ENTRY (PART I) AND THE
CLAIM (PART II) OF THE NAFTA DUTY DEFERRAL ENTRY SIMULTANEOUSLY.

PRINT & REPORTING REQUIREMENTS: CF 7501 FOR THE NAFTA DUTY
DEFERRAL ENTRY (PART I) U.S. IMPORT\EXPORT INFORMATION

THE NAFTA DUTY DEFERRAL ENTRY (PART I) WILL CONSIST OF THE U.S.
IMPORT\EXPORT INFORMATION SETTING FORTH THE FILER'S OBLIGATION
FOR U.S. DUTIES DUE.

THE FILING TIME FRAME FOR THE U.S. IMPORT\EXPORT INFORMATION
REQUIRED ON PART I IS 10 WORKING DAYS FROM THE DATE OF EXPORT TO
CANADA OR MEXICO.

A DETAILED CF 7501 IS REQUIRED AT THE TIME OF THE SUBMISSION.

PREPARATION OF THE CF 7501:

MINIMUM REQUIRED INFORMATION FOR BOTH NON-ABI (MANUAL) AND
ABI ENTRIES:

BLOCK #1 - ENTRY NUMBER: THE ENTRY NUMBER IS AN 11 DIGIT
ALPHANUMERIC OR NUMERIC CODE.

BLOCK #2 - ENTRY TYPE CODE: THE NAFTA DUTY DEFERRAL ENTRY IS
DESIGNATED WITH AN ENTRY TYPE CODE OF "08". THE ABI
PROCESSING REQUIREMENTS OF AN ABI STATUS INDICATOR ARE TO BE
FOLLOWED.

THE FOLLOWING ABI STATUS INDICATORS APPLY:

ABI\S - ABI STATEMENT PAID BY CHECK OR CASH:
MAY USE THIS PAYMENT METHOD FOR ONE EXPORT PER NAFTA
DUTY DEFERRAL ENTRY.

ABI\A - ABI STATEMENT PAID THROUGH THE AUTOMATED
CLEARINGHOUSE (ACH):
MAY USE THIS PAYMENT METHOD FOR ONE EXPORT PER NAFTA
DUTY DEFERRAL ENTRY AND\OR WEEKLY NAFTA DUTY DEFERRAL
ENTRY.

ABI\N - ABI NON-STATEMENT:
MAY USE THIS METHOD FOR ONE EXPORT PER NAFTA DUTY
DEFERRAL ENTRY.

BLOCK #3 - ENTRY SUMMARY DATE: THIS BLOCK RECORDS THE DATE
THE PART I NAFTA DUTY DEFERRAL ENTRY IS FILED WITH CUSTOMS
(MMDDYY). THE "RECORD" COPY OF THE ENTRY WILL BE TIME
STAMPED BY THE FILER AT THE TIME OF FILING. THE FILER WILL
RECORD THE PROPER TEAM NUMBER DESIGNATION IN THE UPPER RIGHT
PORTION OF THIS BLOCK. GENERALLY, NAFTA DUTY DEFERRAL
ENTRIES ARE THE RESPONSIBILITY OF THE ENTRY SPECIALIST TEAMS
WITHIN THE PORTS.

BLOCK #4 - ENTRY DATE: THE ENTRY DATE BLOCK IS USED TO
REPORT THE "EXPORT DATE" ESTABLISHING THE 60 CALENDAR DAY
PERIOD FOR NAFTA DUTY DEFERRAL PURPOSES. "EXPORT DATE" IS
DEFINED AS THE CANADIAN OR MEXICAN IMPORT DATE.

BLOCK #5 - PORT CODE: RECORD THE FOUR DIGIT NUMERIC CODE OF
THE U.S. PORT WHERE THE DUTY DEFERRAL ENTRY IS FILED.

BLOCK #6 - BOND NUMBER: RECORD THE THREE DIGIT NUMERIC CODE
THAT IDENTIFIES THE SURETY COMPANY ON THE BOND. THIS CODE
NUMBER CAN BE FOUND IN BLOCK #7 OF THE CF 301\CUSTOMS BOND.
THIS CODE NUMBER IS ALSO AVAILABLE THROUGH ACS TO ABI FILERS,
VIA THE IMPORTER BOND QUERY TRANSACTION. FOR U.S. GOVERNMENT
IMPORTATIONS AND ENTRY TYPES NOT REQUIRING SURETY, THE CODE
999 SHOULD APPEAR IN THIS BLOCK. WHEN CASH OR GOVERNMENT
SECURITIES ARE USED IN LIEU OF SURETY, USE CODE 998.

BLOCK #7 - BOND TYPE CODE: RECORD THE SINGLE DIGIT NUMERIC
CODE AS FOLLOWS:

0 - U.S. GOVERNMENT OR ENTRY TYPES NOT REQUIRING A BOND
8 - CONTINUOUS
9 - SINGLE TRANSACTION

BLOCK #8 - BROKER\IMPORTER FILE NUMBER: THIS BLOCK IS
RESERVED FOR A BROKER'S OR IMPORTER'S INTERNAL FILE OR
REFERENCE NUMBER.

BLOCK #9 - ULTIMATE CONSIGNEE NAME AND ADDRESS: THIS BLOCK
REPORTS THE PERSON WHO IS THE RESPONSIBLE PARTY FOR FILING
THE NAFTA DUTY DEFERRAL ENTRY, EVEN IF THAT PERSON IS USING
AN AGENT AND THE AGENT'S BOND FOR FILING OF THE NAFTA DUTY
DEFERRAL ENTRY.

BLOCK #10 - CONSIGNEE NUMBER: RECORD THE IRS, SOCIAL
SECURITY, OR CUSTOMS ASSIGNED NUMBER OF THE PERSON IDENTIFIED
IN BLOCK #9.

BLOCK #11 - IMPORTER OF RECORD NAME AND ADDRESS: RECORD THE
NAME AND ADDRESS OF THE PERSON RESPONSIBLE FOR FILING THE NAFTA
DUTY DEFERRAL ENTRY. THE PERSON OR AGENT OF THE FILER LISTED IN
THIS BLOCK WILL BETHE PERSON COVERED BY THE BOND POSTED FOR THE
ENTRY.

THE PERSON RESPONSIBLE FOR FILING NAFTA DUTY DEFERRAL
ENTRIES FOR THE RESPECTIVE DUTY DEFERRAL PROGRAMS ARE AS
FOLLOWS:

WAREHOUSE - THE PERSON WHO HAS THE RIGHT TO WITHDRAW
THE GOODS,

FOREIGN TRADE ZONES - THE PERSON WHO HAS THE RIGHT TO
MAKE ENTRY, AND

TEMPORARY IMPORTATION UNDER BOND - THE IMPORTER OF
RECORD ON THE TIB ENTRY WHETHER OR NOT HE SELLS THE
GOODS FOR EXPORT TO CANADA OR MEXICO.

BLOCK #12 - IMPORTER NUMBER: RECORD THE IRS, SOCIAL
SECURITY, OR CUSTOMS ASSIGNED NUMBER OF THE PERSON REPORTED
IN BLOCK #11.

BLOCK #13 - EXPORTING COUNTRY: NO REPORTING REQUIREMENTS.

BLOCK #14 - EXPORT DATE: NO REPORTING REQUIREMENTS.

BLOCK #15 - COUNTRY OF ORIGIN: THIS BLOCK WILL REFLECT THE
COUNTRY OF ORIGIN FOR THE +COMMODITY IDENTIFIED AS BEING
DUTIABLE UNDER NAFTA DUTY DEFERRAL. IF THERE IS MORE THAN
ONE COUNTRY OF ORIGIN, RECORD THE WORD "MULTI" IN THIS BLOCK.
IN COLUMN 28 BELOW THE LINE NUMBER, INDICATE A SEPARATE ISO
CODE FOR THE COUNTRY OF ORIGIN CORRESPONDING TO EACH LINE
NUMBER.

+COMMODITY WILL TRANSLATE AS THAT FOREIGN MERCHANDISE
IMPORTED INTO THE UNITED STATES INTO A DUTY DEFERRAL
PROGRAM, WHICH IS MANUFACTURED OR CHANGED IN CONDITION
AND SUBSEQUENTLY EXPORTED TO CANADA ON OR AFTER JANUARY
1, 1996 OR MEXICO ON OR AFTER JANUARY 1, 2001.

BLOCK #16 - MISSING DOCUMENTS: NO REPORTING REQUIREMENTS.

BLOCK #17 - I.T. NUMBER: RECORD THE IN-BOND NUMBER (CF 7512)
OR, IF APPLICABLE, THE AIR WAYBILL NUMBER THAT IS USED TO
EXPORT THE MERCHANDISE TO CANADA OR MEXICO. IF MULTIPLE,
PLACE ADDITIONAL IN-BOND ENTRY NUMBERS ACROSS LINES 30 TO 32
OR LIST ON A SEPARATE ATTACHMENT. IF THE EXPORT IS AN AMS
MASTER IN-BOND MOVEMENT (MIB), RECORD THE 11 DIGIT IN-BOND
NUMBER OBTAINED FROM THE AMS CARRIER. NEITHER THE CF 7512 OR
CF7512C IS USED FOR THE AMS MASTER IN-BOND PROGRAM.

BLOCK #18 - I.T. DATE: RECORD THE DATE (FORMAT MMDDYY) OF
THE IN-BOND ENTRY NUMBER OR IF APPLICABLE, THE TRANSIT AIR
CARGO MANIFEST (TACM), OR THE AMS MASTER IN-BOND MOVEMENT.
IF MULTIPLE, PLACE ADDITIONAL DATES ACROSS LINES 30 TO 32
ASSOCIATED WITH EACH ADDITIONAL I.T. NUMBER TO WHICH IT IS
APPLICABLE.

BLOCK #19 - BILL OF LADING OR AIR WAYBILL NUMBER: NO
REPORTING REQUIREMENTS.

BLOCK #20 - MODE OF TRANSPORTATION: NO REPORTING
REQUIREMENTS.

BLOCK #21 - MANUFACTURER I.D.: NO REPORTING REQUIREMENTS.

BLOCK #22 - REFERENCE NUMBER: RECORD THE IRS, SOCIAL
SECURITY, OR CUSTOMS ASSIGNED NUMBER OF THE INDIVIDUAL OR
FIRM TO WHOM REFUNDS, BILLS OR NOTICES OF EXTENSION OR
SUSPENSION OF LIQUIDATION ARE TO BE SENT (IF OTHER THAN THE
IMPORTER OF RECORD AND IF THE CF 4811 IS ON FILE).

BLOCK #23 - IMPORTING CARRIER: THIS BLOCK WILL BE USED ONLY
FOR MERCHANDISE BEING EXPORTED FROM A FOREIGN TRADE ZONE
(FTZ) AND WILL CONTAIN THE FTZ NUMBER. THE FILER SHOULD
INSERT "FTZ" FOLLOWED BY THE FTZ NUMBER. THIS BLOCK WILL NOT
BE USED FOR NAFTA DUTY DEFERRAL ENTRIES FOR GOODS EXPORTED
FROM WAREHOUSE AND\OR TIB DUTY DEFERRAL PROGRAMS.

BLOCK #24 - FOREIGN PORT OF LADING: NO REPORTING
REQUIREMENTS.

BLOCK #25 - LOCATION OF GOODS\G.O. NUMBER: THIS BLOCK WILL
REPORT THE LOCATION OF THE WAREHOUSE OR THE FTZ FROM WHICH
THE MERCHANDISE WAS EXPORTED. THE FACILITIES INFORMATION
AND RESOURCES MANAGEMENT SYSTEM (FIRMS) CODE WILL BE USED.
FOR THOSE NAFTA DUTY DEFERRAL ENTRIES COVERING EXPORTED
MERCHANDISE IMPORTED USING THE TIB DEFERRAL PROGRAM, THE
LOCATION OF THE FACILITY FROM WHICH THE MERCHANDISE WAS
EXPORTED WILL BE REPORTED.

THIS BLOCK WILL ALSO IDENTIFY THE DUTY DEFERRAL PROGRAM
USED IN THE U.S. THE PROGRAM WILL BE SHOWN AS A THREE
ALPHA CHARACTER FORMAT. THE FOLLOWING ARE THE THREE ALPHA
CHARACTER FORMAT CODES WITH THE ASSOCIATED DUTY DEFERRAL
PROGRAM:

"WHS" - BONDED WAREHOUSE
"FTZ" - FOREIGN TRADE ZONE
"TIB" - TEMPORARY IMPORTATION UNDER BOND

BLOCK #26 - U.S. PORT OF UNLADING: NO REPORTING
REQUIREMENTS.

BLOCK #27 - IMPORT DATE: NO REPORTING REQUIREMENTS.

BLOCK #28 - LINE NUMBER: RECORD THE APPROPRIATE LINE
NUMBER, IN SEQUENCE, BEGINNING WITH THE NUMBER 001.

A "LINE NUMBER" WILL REFER TO ALL OF THE FOLLOWING:

(1) THE GOOD BEING EXPORTED TO CANADA OR
MEXICO;

(2) THE WAREHOUSE OR TIB IMPORT ENTRY NUMBER OR
THE FTZ NUMBER ASSOCIATED WITH THE FOREIGN
MERCHANDISE IMPORTED INTO THE DUTY DEFERRAL
PROGRAM; AND

(3) THE COMMODITY IDENTIFIED AS BEING DUTIABLE
UNDER NAFTA DUTY DEFERRAL.

BLOCK #29 - DESCRIPTION OF MERCHANDISE: BRIEF DESCRIPTIONS
WILL BE REQUIRED FOR:

(1) THE GOODS BEING EXPORTED TO CANADA OR MEXICO
FOLLOWED BY THE APPROPRIATE U.S. HTS
10-DIGIT\STATISTICAL REPORTING NUMBER, AND

(2) THE COMMODITY IDENTIFIED AS BEING DUTIABLE UNDER NAFTA
DUTY DEFERRAL FOLLOWED BY EITHER THE ASSOCIATED IMPORT
ENTRY NUMBER OR THE ASSOCIATED FTZ NUMBER.

BLOCK #30 A - HTS NUMBER: RECORD THE APPROPRIATE HTS
10-DIGIT\STATISTICAL REPORTING NUMBER. THIS NUMBER SHOULD BE
LEFT JUSTIFIED. DECIMALS ARE TO BE USED IN THE 10-DIGIT
DUTY\STATISTICAL REPORTING NUMBER EXACTLY AS THEY APPEAR IN
THE HTS.

AN HTS NUMBER WILL BE REQUIRED TO BE REPORTED FOR BOTH THE
GOOD BEING EXPORTED TO CANADA OR MEXICO AND THE COMMODITY
IDENTIFIED AS BEING DUTIABLE UNDER NAFTA DUTY DEFERRAL AS
REQUIRED IN BLOCK #29. THE HTS NUMBER FOR THE GOOD BEING
EXPORTED TO CANADA OR MEXICO WILL BE REPORTED AFTER THE
DESCRIPTION OF THE GOOD AS OUTLINED IN THE INSTRUCTIONS FOR
BLOCK #29. THE HTS NUMBER FOR THE COMMODITY IDENTIFIED AS
BEING DUTIABLE UNDER NAFTA DUTY DEFERRAL WILL BE REPORTED IN
BLOCK 30 A.

BLOCKS #29 AND #30 SHOULD LOOK AS FOLLOWS:

001 HTS DESCRIPTION OF THE GOOD BEING EXPORTED
HTS #
HTS DESCRIPTION OF THE FOREIGN MERCHANDISE IMPORTED
INTO DUTY DEFERRAL PROGRAM FOLLOWED BY THE TIB OR
WAREHOUSE ENTRY NUMBER OR THE FTZ NUMBER.

BLOCK #30 B - ANTIDUMPING\COUNTERVAILING DUTY CASE NUMBER:

RECORD THE APPROPRIATE ANTIDUMPING\COUNTERVAILING DUTY CASE
NUMBER(S) AS ASSIGNED BY THE DOC\ITA DIRECTLY BELOW THE HTS
NUMBER. THE FOLLOWING FORMAT SHALL BE USED:

A000-000-000 -OR- A-000-000-000 (ADD)
C000-000-000 -OR- C-000-000-000 (CVD)

WHEN BONDING IS PERMITTED AND USED, RECORD THE PHRASE "SURETY
CODE" AND THE SURETY NUMBER E.G., (SURETY#__ ). IF CASH OR
GOVERNMENT SECURITY ARE DEPOSITED IN LIEU OF SURETY, RECORD
"SURETY #998".

DO NOT RECORD THE COLUMN 30 HEADING LETTERS "A" (HTS NO.) OR
"B" (CVD\ADD CASE NO.) BEFORE THE HTS NUMBER OR
ANTIDUMPING\COUNTERVAILING DUTY CASE NUMBER.

BLOCK #30 C - CATEGORY NUMBER: NO REPORTING REQUIREMENTS.

BLOCK #31 A - GROSS WEIGHT: NO REPORTING REQUIREMENTS.

BLOCK #31 B - MANIFEST QUANTITY: NO REPORTING REQUIREMENTS.

BLOCK #32 - NET QUANTITY IN HTS UNITS: SHOW THE QUANTITY
FOR BOTH THE GOOD BEING EXPORTED AND THE COMMODITY
IDENTIFIED AS BEING DUTIABLE UNDER NAFTA DUTY DEFERRAL.

BLOCK #33 A - ENTERED VALUE: VALUE WILL BE REPORTED FOR THE
COMMODITY IDENTIFIED AS BEING DUTIABLE UNDER NAFTA DUTY
DEFERRAL.

BLOCK #33 B - CHARGES (CHGS): NO REPORTING REQUIREMENTS.

BLOCK #33 C - RELATIONSHIP: NO REPORTING REQUIREMENTS.

BLOCK #34 A - HTS RATE: RECORD THE RATE OF DUTY FOR THE
COMMODITY IDENTIFIED AS BEING DUTIABLE UNDER NAFTA DUTY
DEFERRAL.

BLOCK #34 B - ANTIDUMPING\COUNTERVAILING DUTY RATE: RECORD
THE ANTIDUMPING AND\OR COUNTERVAILING DUTY RATE(S) AS
DESIGNATED BY THE DOC\ITA, DIRECTLY OPPOSITE THE RESPECTIVE
AD\CVD CASE NUMBER(S) SHOWN IN COLUMN 30. WHEN BONDING IS
PERMITTED AND USED, FOLLOW THE INSTRUCTIONS SHOWN IN ITEM
BLOCK #30 B.

BLOCK #34 C - IRC RATE: NO REPORTING REQUIREMENTS.

BLOCK #34 D - VISA NUMBER: NO REPORTING REQUIREMENTS.

BLOCK #34 E - OTHER FEES: NO REPORTING REQUIREMENTS.

BLOCK #34F - AGRICULTURE LICENSES NUMBER: NO REPORTING
REQUIREMENTS.

BLOCK #35 - DUTY AND I.R. TAX: RECORD THE ESTIMATED HTS
DUTY AS IT APPLIES TO THE IMPORTED COMMODITY IDENTIFIED AS
BEING DUTIABLE UNDER NAFTA DUTY DEFERRAL. THE AMOUNT
SHOWN IN THIS COLUMN MUST BE DIRECTLY OPPOSITE THE
APPROPRIATE HTS RATE(S).

BLOCK #36 - DECLARATION: SELF-EXPLANATORY.

INFORMATION REQUIRED TO BE REPORTED IN BLOCKS #37 THROUGH #40
MUST BE COMPLETED ON THE FIRST PAGE IF THE NAFTA DUTY
DEFERRAL ENTRY CONSISTS OF MORE THAN ONE PAGE.

BLOCK #37 - DUTY: RECORD THE TOTAL ESTIMATED U.S. DUTY
OWED.

FOR THE MANUAL FILING (NON-ABI) OF THE NAFTA DUTY DEFERRAL
ENTRY, PART I, BLOCK #37 WILL REPORT THE TOTAL ESTIMATED U.S.
DUTIES OWED.

SUBSEQUENTLY, FOR THE NON-ABI AND ABI FILING OF THE NAFTA
DUTY DEFERRAL ENTRY PART II, THE BLOCK #37 AMOUNT WILL
REFLECT THE COMPARISON OF THE U.S. DOLLARS DUE ON THE
COMMODITIES REPORTED IN PART I OF THE ENTRY AND THE U.S.
EQUIVALENCY OF THE TOTAL CANADIAN DOLLARS OR MEXICAN PESOS
PAID AS DETERMINED FROM THE PART II INFORMATION. THE
ACTUAL COMPARISON WILL BE SHOWN IN BLOCK #37 CALCULATION
SUMMARY.

IF THE U.S. EQUIVALENCY OF THE TOTAL CANADIAN DOLLARS OR
MEXICAN PESOS PAID IS GREATER THAN OR EQUAL TO THE U.S. DUTY
OWED, A $0 AMOUNT SHOULD BE REPORTED IN BLOCK #37.

BLOCK #37 CALCULATION SUMMARY - THE BLOCK #37 CALCULATION
SUMMARY WILL BE REPORTED ADJACENT TO THE BLOCK #39 SUMMARY
AND WILL BE SHOWN IN THE AREA ENCOMPASSED BY BLOCKS #33 AND
#34. BLOCK #37 CALCULATION SUMMARY WILL CONTAIN THE TOTAL
U.S. DOLLARS DUE ON THE COMMODITIES REPORTED IN PART I OF THE
ENTRY AND THE U.S. EQUIVALENCY OF THE TOTAL CANADIAN DOLLARS
OR MEXICAN PESOS PAID.

REPORT THE BLOCK #37 CALCULATION SUMMARY IN THE FOLLOWING
FORMAT:
BLOCK #37 CALCULATION SUMMARY:
U.S. DUTIES OWEDXXXX.XX
CA OR MX\ AND US (EQUIVALENT) DUTIES PAIDXXXX.XX
SUM = U.S. DUTIES OWEDXXXX.XX

BLOCK #38 TAX: NO REPORTING REQUIREMENT.

BLOCK #39 OTHER: RECORD THE TOTAL ESTIMATED ANTIDUMPING OR
COUNTERVAILING DUTIES AND ANY APPLICABLE FEES PAID. DO NOT
SHOW ANTIDUMPING OR COUNTERVAILING DUTY AMOUNTS THAT WERE
BONDED. THE AMOUNTS SHOWN IN BLOCK #39 OF THE SUMMARY SHOULD
REFLECT THE AMOUNTS ACTUALLY BEING PAID.

FOR THOSE ENTRIES SUBJECT TO PAYMENT OF ANTIDUMPING DUTIES,
COUNTERVAILING DUTIES AND\OR ANY APPLICABLE FEES, EACH FEE
MUST BE INDICATED IN THE AREA ENCOMPASSED BY BLOCKS #30
THROUGH #32, WHICH WILL SERVE AS THE BLOCK #39 SUMMARY. THE
INDIVIDUAL AMOUNT OF EACH FEE MUST BE SHOWN ON THE
CORRESPONDING LINE IN BLOCK #32. COUNTERVAILING AND\OR
ANTIDUMPING DUTY AMOUNTS ARE TO BE INCLUDED IN THE BLOCK #39
OF THE SUMMARY ONLY WHEN THEY ARE ACTUALLY DEPOSITED. BONDED
AMOUNTS SHOULD NOT BE INCLUDED. THE BLOCK #39 SUMMARY MUST
BE ON THE FIRST PAGE IF THE SUMMARY CONSISTS OF MORE THAN ONE
PAGE. THE APPLICABLE COLLECTION CODE MUST BE SHOWN ON THE
LINE.

BLOCK #40 TOTAL: RECORD THE SUM OF BLOCKS #37 AND #39.
THIS WILL BE COMPLETED UPON SUBMISSION OF PART II OF THE
NAFTA DUTY DEFERRAL ENTRY. THE DOLLAR AMOUNT TO BE SHOWN IN
BLOCK #40 WILL BE THE SUM OF BLOCKS #37 AND #39.

BLOCK #41 - SIGNATURE OF DECLARANT, TITLE, AND DATE: RECORD
THE SIGNATURE OF THE DECLARANT, THE JOB TITLE OF THE OWNER,
PURCHASER OR AGENT WHO SIGNS THE DECLARATION, AND THE MONTH,
DAY AND YEAR WHEN THE DECLARATION IS SIGNED.

PRINT & REPORTING REQUIREMENTS: CF 7501 FOR THE NAFTA DUTY
DEFERRAL ENTRY (PART II) CANADIAN OR MEXICAN ENTRY INFORMATION
(SATISFACTORY EVIDENCE)

THE CANADIAN OR MEXICAN ENTRY INFORMATION REQUIRED TO
SUBSTANTIATE THE WAIVER OR REDUCTION OF U.S. DUTIES OWED ON THE
IMPORTED MERCHANDISE REPORTED ON PART I OF THE NAFTA DUTY
DEFERRAL ENTRY WILL CONSIST OF THE FOLLOWING:

(1) CANADIAN OR MEXICAN ENTRY NUMBER;
(2) CANADIAN OR MEXICAN TARIFF CLASSIFICATION NUMBER;
(3) CANADIAN OR MEXICAN RATE OF DUTY;
(4) CANADIAN OR MEXICAN DUTY AMOUNT PAID, REPORTED
IN BOTH CANADIAN DOLLARS OR MEXICAN PESOS AND ITS
EQUIVALENT IN U.S. DOLLARS; AND
(5) CANADIAN OR MEXICAN DATE OF IMPORT.

A DETAILED CF 7501 WILL BE REQUIRED AT THE TIME OF THE
SUBMISSION OF THIS INFORMATION (PART II).

PREPARATION OF THE CF 7501

MINIMUM REQUIRED INFORMATION FOR BOTH NON-ABI (MANUAL) AND ABI
ENTRIES:

WHEN REPORTING THE CLAIM PORTION OR PART II OF THE NAFTA DUTY
DEFERRAL ENTRY ON THE CF 7501, THE CANADIAN OR MEXICAN ENTRY
INFORMATION WILL BE SEPARATED FROM THE U.S. IMPORT INFORMATION
BY PLACING A BROKEN LINE BETWEEN PART I AND PART II.

IN ADDITION TO THE FINAL UPDATED REPORTING OF THE PART I
IMPORT\EXPORT INFORMATION SETTING FORTH THE FILER'S OBLIGATION
OF U.S. DUTIES DUE, THE FOLLOWING LINE ITEM INFORMATION WILL BE
REQUIRED FOR PART II OF THE ENTRY:

BLOCK #28 - LINE NUMBER: RECORD THE APPROPRIATE LINE NUMBER,
IN SEQUENCE, BEGINNING WITH THE NUMBER 001.

A "LINE NUMBER" WILL REFER TO ALL OF THE FOLLOWING:

(1) CANADIAN OR MEXICAN ENTRY NUMBER;
(2) THE CANADIAN OR MEXICAN TARIFF
CLASSIFICATION NUMBER (THIS TARIFF NUMBER
REPORTS THE GOOD ENTERED INTO THE COMMERCE
OF CANADA OR MEXICO);
(3) CANADIAN OR MEXICAN RATE OF DUTY FOR THAT TARIFF
NUMBER;
(4) CANADIAN OR MEXICAN DUTY AMOUNT PAID ALONG
WITH THE U.S. CONVERSION; AND
(5) CANADIAN OR MEXICAN DATE OF IMPORT.

BLOCK #29 - DESCRIPTION OF MERCHANDISE: REPORTING
REQUIREMENTS ARE:

(1) CANADIAN OR MEXICAN ENTRY NUMBER WITH CANADIAN OR
MEXICAN DATE OF IMPORT, AND
(2) THE GOODS BEING IMPORTED INTO CANADA OR
MEXICO.

BLOCK #30 A - HTS NUMBER: RECORD THE APPROPRIATE CANADIAN
OR MEXICAN HTS NUMBER. THIS WILL BE REPORTED AT THE 10
DIGIT REPORTING NUMBER FOR CANADA AND FOR MEXICO. SINCE
MEXICO ONLY REPORTS THE HTS NUMBER TO 8 DIGITS, THE
REPORTED HTS NUMBER WILL BE LEFT JUSTIFIED WITH TWO ZEROES
PLACED TO THE RIGHT. FOR EXAMPLE, A MEXICAN PEDIMENTO
WITH AN HTS NUMBER OF 3910.00.50 WOULD BE REPORTED AS
3910.00.50