| Title: | CAFTA ABI SYSTEM REQUIREMENTS |
|---|---|
| Date: | 2006-03-08 |
| To: | abi |
| Links: | previous, next |
TO: ALL ABI BROKERS
FROM: TONY CASUCCI
SUBJECT: CENTRAL AMERICA FREE TRADE AGREEMENT (CAFTA) ABI SYSTEM
REQUIREMENTS.
DATE: 03/07/2006
THIS MESSAGE IS BEING SENT TO ADVISE THE TRADE ON THE SYSTEM
REQUIREMENTS NEEDED TO FILE A CAFTA CLAIM.
THE ACS SYSTEM IS IN THE PROCESS OF BEING PROGRAMMED TO ACCEPT CAFTA
CLAIMS. A FUTURE MESSAGE WILL BE SENT WHEN ACS HAS COMPLETED THE
SYSTEM CHANGES TO ACCEPT CAFTA CLAIMS.
THE FOLLOWING COUNTRIES ARE CONSIDERED CAFTA ELIGIBLE COUNTRIES:
COUNTRY ISO CODE
COSTA RICA CR
DOMINICAN REPUBLIC DO
EL SALVADOR SV
GUATEMALA GT
HONDURAS HN
NICARAGUA NI
IT IS IMPORTANT TO NOTE, CAFTA ELIGIBLE COUNTRIES DOES NOT MEAN THE
ABOVE LISTED COUNTRIES CAN IMMEDIATELY FILE CAFTA CLAIMS. IT IS
POSSIBLE FOR THE ABOVE LISTED COUNTRIES TO HAVE DIFFERENT EFFECTIVE
DATES TO BEGIN FILING CAFTA CLAIMS.
AT THE PRESENT TIME, ONLY EL SALVADOR (SV) IS ELIGIBLE TO FILE CAFTA
CLAIMS (ELIGIBLE ON 03/01/2006).
THE USTR (UNITED STATES TRADE REPRESENTATIVE AGENCY) AND THE USITC
(UNITED STATES INTERNATIONAL TRADE COMMISSION) WILL INFORM THE TRADE
AND CUSTOMS (CBP) WHEN THE CAFTA ELIGIBLE COUNTRIES CAN BEGIN FILING
CAFTA CLAIMS.
THE CAFTA TRADE AGREEMENT HAS DIFFERENT TYPES OF CAFTA CLAIMS. SOME OF
THE DIFFERENT TYPES OF CAFTA CLAIMS ARE THE FOLLOWING:
1) ORIGINATING CAFTA CLAIMS (SPI 'P').
2) QUALIFYING CAFTA CLAIMS (SPI 'P+').
3) SPECIAL CAFTA PROVISIONS THAT DO NOT REQUIRE A SPI INDICATION
(E.G, TARIFF 98220510, CAFTA TRADE PREFERENCE LEVEL (TPL) TARIFF
NUMBERS 991561XX - 991562XX).
A DETAILED DESCRIPTION ON HOW TO FILE THE ABOVE TYPE OF CAFTA CLAIMS
WILL BE EXPLAINED LATER IN THIS MESSAGE.
THE COUNTRY CODE REFERENCE FILE WILL BE MODIFIED TO DISPLAY CAFTA
COUNTRIES THAT ARE ELIGIBLE TO FILE CAFTA CLAIMS IN THE FOLLOWING NEW
COUNTRY CODE FIELDS IN RECORD IDENTIFIER 202 (OUTPUT):
DATA ELEMENT L/C POS STAT DESCRIPTION
MISCELLANEOUS SPI 2X 60-61 C A CODE INDICATING ELIGIBILITY
INDICATOR 'P' TO FILE THE FOLLOWING TRADE
WILL BE INDICATED PROGRAMS:
IN POSITION 60
CODE: TRADE PROGRAM
P (POS 60) CAFTA
MISCELLANEOUS SPI 6X 62-67 C A NUMERIC DATE IN MMDDYY FORMAT,
BEGIN DATE REPRESENTING THE BEGIN DATE
FOR THE MISC INDICATOR. IF THE
MISC INDICATOR IS 'P', INDICATES
THE BEGIN DATE FOR CAFTA
BENEFITS.
MISCELLANEOUS SPI 6X 68-73 A NUMERIC DATE IN MMDDYY FORMAT,
END DATE REPRESENTING THE END DATE FOR
THE MISC INDICATOR. IF THE MISC
INDICATOR IS ''P', INDICATES THE
END DATE FOR THE CAFTA BENEFITS.
IT IS IMPORTANT TO NOTE, THE SPI 'P' INDICATION ON THE COUNTRY CODE
EXTRACT FILE WILL INDICATE THAT THE COUNTRY IS ELIGIBLE FOR THE VARIOUS
CAFTA BENEFITS SUCH AS ORIGINATING CAFTA BENEFITS (SPI 'P'), QUALIFYING
CAFTA BENEFITS (SPI 'P+'), TARIFF 98220510 PROVISIONS, CAFTA TPL'S,
ETC.
EVEN THOUGH THE CAFTA SPI INDICATOR 'P' IS ONE BYTE IN LENGTH, THE
MISCELLANEOUS SPI INDICATOR FIELD WAS MADE TWO BYTES IN LENGTH TO
ALLOW CUSTOMS TO IDENTIFY FUTURE TRADE AGREEMENTS THAT MAY HAVE A
TWO BYTE SPI INDICATOR.
THE FOLLOWING INFORMATION LISTS THE SYSTEM REQUIREMENTS TO FILE THE
VARIOUS CAFTA PROVISIONS:
TO CLAIM CAFTA ORIGINATING BENEFITS, THE FOLLOWING REQUIREMENTS MUST
BE MET:
1) THE SPI INDICATOR OF 'P' MUST BE FILED IN THE ENTRY SUMMARY RECORD
IDENTIFIER 50 INPUT, SPECIAL PROGRAMS INDICATOR (PRIMARY) (POSITION
3) OR RECORDS 70/80/81 IN THE SPECIAL PROGRAMS INDICATOR (PRIMARY)
FIELD (POSITION 79).
2) THE COUNTRY OF ORIGIN AND THE COUNTRY OF EXPORT MUST BOTH BE ELIGIBLE
FOR CAFTA BENEFITS. THE COUNTRY CODE EXTRACT FILE MUST INDICATE THAT
COUNTRY OF ORIGIN AND THE COUNTRY OF EXPORT ARE BOTH ELIGIBLE FOR
SPI 'P' BENEFITS (THE MISCELLANEOUS SPI INDICATOR, POSITION 60
WILL INDICATE 'P' AND THE MISCELLANEOUS SPI 'P' BEGIN AND END DATES
MUST FALL WITHIN THE DUTY COMPUTATION DATE FOR THE SUMMARY).
3) THE TARIFF NUMBER WITH THE CAFTA ORIGINATING CLAIM MUST CONTAIN THE
SPECIAL PROGRAM INDICATOR 'P'. ORIGINATING CAFTA CLAIMS CAN EITHER
BE FREE OR A REDUCED RATE.
4) THE MERCHANDISE PROCESSING FEE (CLASS CODES 311/499) WILL BE EXEMPT
FOR ORIGINATING CAFTA CLAIMS (SPI 'P').
TO CLAIM CAFTA QUALIFYING BENEFITS, THE FOLLOWING REQUIREMENTS MUST BE
MET:
1) THE SPI INDICATOR OF 'P+' MUST BE FILED IN THE ENTRY SUMMARY RECORD
IDENTIFIER 50 INPUT RECORD, SPECIAL PROGRAM INDICATOR (COUNTRY)
(POSITIONS 78-79) OR RECORDS 70/80/81 IN THE SPECIAL PROGRAMS
INDICATOR (COUNTRY) FIELD (POSITIONS 79-80).
2) THE COUNTRY OF ORIGIN AND THE COUNTRY OF EXPORT MUST BOTH BE ELIGIBLE
FOR CAFTA BENEFITS. THE COUNTRY CODE EXTRACT FILE MUST INDICATE THAT
THE COUNTRY OF ORIGIN AND THE COUNTRY OF EXPORT ARE BOTH ELIGIBLE
FOR SPI 'P' BENEFITS AND THE MISCELLANEOUS SPI 'P' BEGIN AND END
DATES FALL WITHIN THE DUTY COMPUTATION DATE FOR THE SUMMMARY.
3) THE TARIFF NUMBER WITH THE CAFTA QUALIFYING CLAIM MUST CONTAIN THE
SPECIAL PROGRAM INDICATOR 'P+'. THE CAFTA QUALIFYING CLAIMS WILL
HAVE TARIFF NUMBERS WHERE THE CAFTA QUALIFYING RATE WILL EITHER BE
FREE OR REDUCED. IF THE CAFTA QUALIFYING RATE IS REDUCED, THE
SPECIAL RATE FIELD FOR THE TARIFF NUMBER WILL INDICATE THE DUTY
RATE.
4) THE MERCHANDISE PROCESSING FEE (CLASS CODE 311/499) WILL BE EXEMPT
FOR CAFTA QUALIFYING CLAIMS (SPI 'P+').
TO CLAIM CAFTA TRADE PREFERENCE LEVEL CLAIMS (TPL) (TARIFF NUMBERS
991561XX - 991562XX), THE FOLLOWING REQUIREMENTS MUST BE MET:
1) THE COUNTRY OF ORIGIN AND THE COUNTRY OF EXPORT MUST BOTH BE CAFTA
ELIGIBLE. THE COUNTRY CODE EXTRACT FILE MUST INDICATE THAT THE
COUNTRY OF ORIGIN AND THE COUNTRY OF EXPORT ARE ELIGIBLE FOR
SPI 'P' BENEFITS.
IT IS IMPORTANT TO NOTE, NOT ALL CAFTA COUNTRIES WILL BE ELIGIBLE TO
FILE TRADE PREFERENCE LEVEL CLAIMS (TPL). THE CAFTA NOTES TO THE
HARMONIZED TARIFF WILL INDICATE THOSE COUNTRIES THAT ARE ELIGIBLE
TO FILE TRADE PREFERENCE LEVEL CLAIMS (TPL).
2) NO SPI INDICATOR WILL BE INDICATED ON THE SUMMARY FOR CAFTA TPL
CLAIMS.
3) CAFTA TPL CLAIMS (TARIFF NUMBERS 991561XX - 991562XX) REQUIRE THAT
ALL THE VALUE AND QUANTITY AMOUNTS BE REPORTED ON THE ALTERNATE
TARIFF NUMBERS (NON CHAPTER 9915 TARIFF NUMBERS). THIS PROCEDURE
IS SIMILAR TO THE AGOA TEXTILE PROVISIONS ASSOCIATED WITH TARIFF
NUMBERS 9819XXXX AND THE CBTPA TEXTILE PROVISIONS ASSOCIATED WITH
TARIFF NUMBERS 9820XXXX.
4) THE MERCHANDISE PROCESS FEE WILL BE REQUIRED FOR CAFTA TPL CLAIMS.
THIS PROCEDURE IS SIMILAR TO THE NAFTA TPL CLAIMS (TARIFF NUMBERS
99990050 - 99990064) WHERE THE MERCHANDISE PROCESSING FEE IS
REQUIRED.
SYSTEM REQUIREMENTS TO CLAIM CAFTA PROVISIONS ASSOCIATED WITH TARIFF
NUMBER 98220510.
1) THE COUNTRY OF CODE EXTRACT FILE MUST INDICATE THAT THE COUNTRY OF
ORIGIN IS ELIGIBLE FOR SPI 'P' BENEFITS (MISCELLANEOUS SPI INDICATOR
= 'P') AND THE SPI 'P' BEGIN AND END DATE FALL WITHIN THE DUTY
COMPUTATION DATE FOR THE SUMMARY.
2) 98220510 WILL REQUIRE A SECOND TARIFF NUMBER. NO SPI INDICATORS
WILL BE ALLOWED FOR EITHER THE 98220510 TARIFF NUMBER OR THE
ALTERNATE TARIFF NUMBER.
3) THE AMERICAN VALUE OF THE PRODUCT WILL BE ENTERED IN THE ENTRY
SUMMARY, RECORD IDENTIFIER 40, POSITIONS 8 - 17). THE FOREIGN
VALUE WILL BE ENTERED WITH THE ALTERNATE TARIFF NUMBER IN
RECORD IDENTIFIER 70, POSITIONS 69 - 78. THE DUTY CALCULATIION
FOR 98220510 WILL BE SIMILAR TO THE DUTY CALCULATION FOR
TARIFF NUMBERS 98020080 AND 98020090. REFER TO CHAPTER 9802, U.S.
NOTE 4. THE DUTY CALCULATION FOR 98220510 IS BASED ON THE
CALCULATION INDICATED FOR COMPUTATION CODE 'H0'.
4) NO MERCHANDISE PROCESSING FEE (CLASS CODE 311/499) IS REQUIRED
FOR THE 98220510 TARIFF PROVISION.
MERCHANDISE PROCESSING FEE RULES FOR CAFTA CLAIMS:
1) MERCHANDISE PROCESSING FEE (CLASS CODES 311/499) WILL BE EXEMPT
FOR CAFTA ORIGINATING (SPI 'P') AND CAFTA QUALIFYING CLAIMS
(SPI 'P+).
2) THERE WILL BE SITUATIONS WHERE A TARIFF NUMBER IS DUTY FREE. DUTY
FREE TARIFF NUMBERS DO NOT HAVE SPECIAL PROGRAM INDICATORS. IF THE
MERCHANDISE ASSOCIATED WITH THE DUTY FREE TARIFF NUMBER QUALIFIES
UNDER THE CAFTA ORIGINATING OR CAFTA QUALIFYING PROVISIONS, THE
MERCHANDISE PROCESSING FEE WILL BE EXEMPT BY TRANSMITTING THE SPI 'P'
INDICATOR IF THE MERCHANDISE QUALIFIES UNDER THE CAFTA ORIGINATING
PROCEDURE OR BY TRANSMITTING THE SPI 'P+' INDICATOR IF THE
MERCHANDISE QUALIFIES UNDER THE CAFTA QUALIFYING PROVISIONS.
3) MERCHANDISE PROCESSING FEE (CLASS CODES 311/499) WILL NOT BE
REQUIRED FOR THE 98220510 TARIFF PROVISION.
CAFTA IMPACT ON GSP.
GSP ELIGIBILITY FOR A COUNTRY WILL TERMINATE WHEN THE COUNTRY BECOMES
ELIGIBLE TO FILE A CAFTA CLAIM.
CBI CHANGES (SPI 'E') DUE TO THE CAFTA LEGISLATON.
PRIOR TO THE CAFTA TRADE AGREEMENT, A CBI (SPI 'E') CLAIM REQUIRED
BOTH THE COUNTRY OF ORIGIN (ENTRY SUMMARY, RECORD IDENTIFIER 40,
POSITIONS 6-7) AND THE COUNTRY OF EXPORT (ENTRY SUMMARY, RECORD
IDENTIFIER 50, POSITIONS 69-79) TO BE ELIGIBLE FOR CBI BENEFITS
(SPI 'E').
CAFTA LEGISLATION TERMINATES CAFTA COUNTRIES FROM BEING ELIGIBLE FOR
CBI (SPI E) BENEFITS. AS A RESULT, THE COUNTRY OF ORIGIN FOR A CBI CLAIM
CAN NOT BE A CAFTA COUNTRY (COUNTRY CODE FILE INDICATES COUNTRY IS
ELIGIBILE FOR SPI 'P' BENEFITS).
THE CAFTA LEGISLATION DOES ALLOW COUNTRIES THAT CAN FILE CAFTA CLAIMS
TO BE THE COUNTRY OF EXPORT FOR A CBI (SPI 'E') CLAIM. AS A RESULT,
CBI CLAIMS WILL BE ALLOWED IF THE COUNTRY OF ORIGIN IS CBI ELIGIBLE
(SPI 'E') AND THE COUNTRY OF EXPORT IS ELIGIBLE FOR CAFTA BENEFITS
(SPI 'P').
CBTPA (CARIBBEAN BASIN TRADE PARTNERSHIP ACT - SPI 'R') CHANGES DUE
TO THE CAFTA LEGISLATION.
CURRENTLY CBTPA RULES REQUIRE THE COUNTRY OF ORIGIN AND THE COUNTRY OF
EXPORT FOR A CBTPA CLAIM TO BE THE SAME (COUNTRY CODE FILE WILL INDICATE
THAT THE COUNTRY IS ELIGIBLE FOR SPI 'R' BENEFITS).
COUNTRIES THAT ARE ELIGIBLE TO FILE CAFTA CLAIMS (SPI 'P') WILL NO
LONGER BE ELIGIBLE TO FILE CBTPA CLAIMS UNLESS THE CAFTA COUNTRY IS THE
DOMINICAN REPUBLIC (DO). THE CAFTA LEGISLATON WILL ALLOW THE COUNTRY OF
EXPORT FOR A CBTPA CLAIM TO BE A CAFTA COUNTRY. AS A RESULT, CBTPA
CLAIMS REQUIRE THE COUNTRY OF ORIGIN AND THE COUNTRY OF EXPORT TO
BE THE SAME AND ELIGIBLE FOR CBTPA BENEFITS OR THE COUNTRY OF ORIGIN
MUST BE ELIGIBLE FOR CBTPA BENEFITS AND THE COUNTRY OF EXPORT CAN BE
A CAFTA COUNTRY (COUNTRY CODE FILE INDICATES THAT THE COUNTRY IS
ELIGIBLE FOR SPI 'P' BENEFITS.
AS INDICATED ABOVE, DOMINCAN REPUBLIC (DO) WILL STILL RETAIN ELIGIBILITY
TO THE CBTPA TRADE PROGRAM EVEN WHEN IT BECOMES ELIGIBLE TO FILE CAFTA
CLAIMS.
A FUTURE MESSAGE WILL BE POSTED TO ADVISE THE TRADE WHEN THE ACS SYSTEM
HAS BEEN PROGRAMMED TO ACCEPT CAFTA CLAIMS THROUGH THE ABI SYSTEM.
POLICY AND PROCEDURE QUESTIONS RELATED TO THE CAFTA LEGISLATION SHOULD
BE DIRECTED TO THE FOLLOWING PEOPLE IN THE OFFICE OF FIELD OPERATIONS:
QUOTA ISSUES SHOULD BE DIRECTED TO THE QUOTA BRANCH ATTENTION
MICHELLE VIDELOCK AT 202-344-2276.
TEXTILE ISSUES SHOULD BE DIRECTED TO THE TEXTILE BRANCH ATTENTION
BOB ABELS AT 202-344-1959 OR TO JACKIE SPRUNGLE AT 202-344-2277.
CAFTA TRADE LEGISLATION ISSUES SHOULD BE DIRECTED TO TRADE AGREEMENTS
BRANCH ATTENTION LORI WHITEHURST AT 202-344-2722.
SYSTEM QUESTIONS SHOULD BE DIRECTED TO YOUR LOCAL CLIENT REPRESENTATIVE
OR TO ACS, ATTENTION TONY CASUCCI AT 202-772-2041.