| Title: | ADMIN BULLETIN BOARD POSTING |
|---|---|
| Date: | 2004-01-13 |
| To: | abi |
| Links: | previous, next |
TO: ALL ABI BROKERS.
FROM: RICHARD B WALLIO
DATE: 01/12/2004
TO: DIRECTORS, FIELD OPERATIONS
FROM: EXECUTIVE DIRECTOR, TRADE COMPLIANCE, AND
FACILITATION OFFICE OF FIELD OPERATIONS
SUBJECT: AGRICULTURE SAFEGUARD DUTY/PRICE-BASED SAFEGUARDS
THE PURPOSE OF THIS MEMORANDUM IS TO INFORM CUSTOMS AND BORDER
PROTECTION (CBP) AND INTERESTED PARTIES THAT COST, INSURANCE AND
FREIGHT (CIF) PRICES ARE TO BE USED IN THE ADMINISTRATION OF
PRICE-BASED SPECIAL SAFEGUARD (SSG) DUTIES.
BACKGROUND:
THE UNITED STATES IMPOSES ADDITIONAL SSG DUTIES ON CERTAIN AGRICULTURAL
GOODS PURSUANT TO ARTICLE 5 OF THE URUGUAY ROUND'S AGREEMENT ON
AGRICULTURE. THESE DUTIES ARE IMPOSED IF THE PRICE AT WHICH A PRODUCT
ENTERS FALLS BELOW A SPECIFIED TRIGGER PRICE, OR IF THE VOLUME OF SUCH
IMPORTS EXCEEDS A SPECIFIED TRIGGER LEVEL. FOR THE UNITED STATES THE
SCHEDULE OF AGRICULTURAL GOODS AND THE SSG FOR THOSE GOODS ARE SET
OUT IN SUBCHAPTER IV OF CHAPTER 99 OF THE HARMONIZED TARIFF SCHEDULE
OF THE UNITED STATES (HTS).
APPRAISED VALUE FOR IMPORTS INTO THE UNITED STATES IS NORMALLY
REPORTED AND CALCULATED ON A "FREE ON BOARD" (FOB) WITH FREIGHT
REPORTED SEPARATELY. THE PROCEDURES FOR ASSESSMENT OF PRICE BASED SSG
AS SET OUT IN ARTICLE 5 ARE BASED ON CIF PRICES, BOTH FOR THE INITIAL
DETERMINATION OF TRIGGER PRICES AND FOR THE PRICE OF EACH SHIPMENT.
CBP AUTOMATED COMMERCIAL SYSTEM (ACS) USES FOB TO CALCULATE DUTY,
TAXES, AND FEES. THERE IS NO FIELD IN ACS FOR CIF PRICES. ACS USES
THE FOB TO CALCULATE THE HTS AND DUTY RATE. THIS MAY RESULT IN THE
INCORRECT HTS AND HIGHER DUTY RATE.
ACTION:
IF THE AUTOMATED BROKER INTERFACE WILL NOT ALLOW THE TRANSMISSION OF A
SAFEGUARD DUTY ENTRY BECAUSE ACS COMPUTES A DIFFERENT HTS AND HIGHER
DUTY RATE, THE IMPORTER MAY FILE THE ENTRY NON-ABI AT THE CORRECT HTS
AND LOWER RATE OF DUTY.
THIS NOTICE SHOULD BE DISTRIBUTED TO ALL PORT DIRECTORS; ASSISTANT PORT
DIRECTORS, IMPORT AND ENTRY SPECIALISTS; BROKERS; IMPORTERS AND OTHER
INTERESTED PARTIES.
QUESTIONS FROM THE IMPORTING COMMUNITY CONCERNING THIS NOTICE SHOULD
BE REFERRED TO THEIR LOCAL CUSTOMS PORT OF ENTRY. THE CUSTOMS PORT
MAY REFER QUESTIONS TO RICHARD WALLIO, SUMMARY MANAGEMENT BRANCH,
AT (202) 927-9704, OR VIA E-MAIL.
/S/
ELIZABETH G. DURANT