| Title: | CHANGES TO GENERAL STATIST |
|---|---|
| Date: | 2002-03-07 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : LISA K SANTANA
SUBJECT : CHANGES TO GENERAL STATISTICAL NOTE 1
DATE : 03/06/2002
FEBRUARY 21, 2002
APP-1:FO:TP:CC:SM:LS
TO : DIRECTORS, FIELD OPERATIONS
FROM : EXECUTIVE DIRECTOR, TRADE PROGRAMS
OFFICE OF FIELD OPERATIONS
SUBJECT : CHANGES TO GENERAL STATISTICAL NOTE 1(B)(II) (GSN
1(B)(II)) OF THE HARMONIZED TARIFF SCHEDULE OF THE
UNITED STATES (HTSUS)
BACKGROUND:
GSN 1(B)(II), HTSUS, WHICH CONCERNS THE REPORTING OF FREIGHT
RATES FOR STATISTICAL PURPOSES, WAS RECENTLY AMENDED. THE
AMENDED NOTE IS CONTAINED IN THE 2002 HTSUS AND STILL PROVIDES
THAT IF ACTUAL FREIGHT RATES ARE NOT AVAILABLE AT THE TIME OF
ENTRY, REASONABLE ESTIMATES MAY BE USED. THE AMENDED NOTE
STATES, THAT IF ESTIMATED FREIGHT CHARGES ARE REPORTED, THEY MAY
NOT BE DEDUCTED FROM THE PRICE TO ARRIVE AT THE DECLARED VALUE.
PRIOR TO THIS AMENDMENT, MY OFFICE ISSUED A MEMORANDUM
CONCERNING THE REPORTING OF FREIGHT RATES. THAT MEMORANDUM,
DATED DECEMBER 28, 2000, STATED THAT WHEN ACTUAL CHARGES FOR
FREIGHT WERE NOT KNOWN AND THE IMPORTER DECLARED THE ENTIRE CIF
VALUE, AN AMOUNT OF $2 SHOULD BE REPORTED AS FREIGHT CHARGES.
THE $2 AMOUNT SERVED AS A FLAG TO THE CENSUS BUREAU THAT THE
ACTUAL AMOUNT OF FREIGHT WAS UNKNOWN AT THE TIME OF ENTRY. THE
MEMORANDUM ALSO STATED THAT IF THE ACTUAL AMOUNT BECAME
AVAILABLE AFTER AN ENTRY SUMMARY HAD BEEN FILED, THE IMPORTER
WAS REQUIRED TO AMEND THE ENTRY WITH THE ACTUAL FREIGHT RATES.
CONSEQUENTLY, THERE WAS AN INCONSISTENCY IN GSN 1(B)(II), WHICH
ALLOWED REPORTING ESTIMATES, AND THE MEMORANDUM INSTRUCTING THE
TRADE TO REPORT $2 IN CERTAIN CIRCUMSTANCES. TO RECTIFY THIS
INCONSISTENCY, GSN 1(B)(II) COULD HAVE BEEN ELIMINATED.
HOWEVER, RATHER THAN ELIMINATE THE NOTE, CENSUS PREFERRED THAT
ESTIMATES BE REPORTED, IN LIEU OF THE $2 FLAG.
CONSEQUENTLY, THE NOTE WAS AMENDED AS STATED ABOVE, TO REITERATE
THE LONGSTANDING CUSTOMS POSITION THAT ONLY ACTUAL FREIGHT COSTS
MAY BE DEDUCTED FROM A PRICE THAT INCLUDES FREIGHT CHARGES,
E.G., C.I.F.
- 2 -
ACTION:
THE PURPOSE OF THIS MEMORANDUM IS TO CLARIFY THE REPORTING
REQUIREMENTS OF FREIGHT CHANGES UPON ENTRY IN LIGHT OF THE
CHANGES MADE TO GSN 1 (B)(II) OF THE 2002 HTSUS.
* THE USE OF THE $2 FLAG ON THE ENTRY SUMMARY
(CF7501) FOR ESTIMATED FREIGHT CHARGES IS NO LONGER
PERMITTED.
* FOR VALUE PURPOSES:
* ESTIMATED FREIGHT CHARGES MAY NOT BE DEDUCTED
FROM THE INVOICE TO ARRIVE AT AN ENTERED VALUE.
* ACTUAL FREIGHT CHARGES SHOULD BE DEDUCTED FROM
THE INVOICE VALUE IN INSTANCES WHERE THEY ARE
INCLUDED IN THE TERMS OF SALE.
* FOR STATISTICAL REPORTING PURPOSES:
* ACTUAL FREIGHT CHARGES WILL BE REPORTED AT THE
LINE LEVEL ON THE ENTRY SUMMARY (CF7501) IF THEY
ARE KNOWN AT THE TIME OF ENTRY. IT IS ACCEPTABLE
TO PRORATE THESE CHARGES OVER ALL OF THE LINES ON
THE CF7501, AS THEY ARE REQUIRED TO BE REPORTED AT
THE LINE LEVEL.
* IF ACTUAL FREIGHT CHARGES ARE UNKNOWN AT THE
TIME OF ENTRY, ESTIMATED FREIGHT CHARGES WILL BE
REPORTED ON THE CF7501 AT THE TIME OF ENTRY. IT IS
ACCEPTABLE TO PRORATE THESE CHARGES OVER ALL OF THE
LINES ON THE CF7501, AS THEY ARE REQUIRED TO BE
REPORTED AT THE LINE LEVEL.
* IF ACTUAL FREIGHT CHARGES BECOME AVAILABLE AFTER
THE ENTRY SUMMARY (CF7501) IS FILED, THE
IMPORTER/FILER IS REQUIRED TO REPORT THEM TO CUSTOMS.
PLEASE PASS TO PORT DIRECTORS, IMPORT SPECIALISTS, ENTRY
SPECIALISTS, AUDITORS, IMPORTERS, BROKERS AND OTHER INTERESTED
PARTIES.
SHOULD YOU HAVE ANY QUESTIONS OR CONCERNS, PLEASE DIRECT THEM TO
MS. LISA SANTANA OF MY STAFF, AT (202) 927-4342.
/S/
ELIZABETH G. DURANT
CC: EXECUTIVE DIRECTOR, FIELD OPERATIONS