CSMS Message: 06-001079

TO: ABI FILERS

FROM: OFFICE OF FIELD OPERATIONS
OFFICE OF INFORMAIION AND TECHNOLOGY

SUBJECT: MEXICAN CEMENT IMPORT LICENSING SYSTEM (ABI) AND
EXPORT LICENSE REQUIREMENTS.

ON MARCH 6, 2006, THE OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE,
THE UNITED STATES DEPARTMENT OF COMMERCE AND THE SECRETARIA DE ECONOMIA
SIGNED A BILATERAL TRADE AGREEMENT CONCERNING TRADE IN CEMENT BETWEEN
THE UNITED STATES AND MEXICO. CONSEQUENTLY, THE DEPARTMENT OF COMMERCE
IS ESTABLISHING AN IMPORT AND EXPORT LICENSING REQUIREMENT AND A
MONITORING SYSTEM FOR DESIGNATED CEMENT TARIFF NUMBERS EXPORTED FROM
MEXICO INTO THE UNITED STATES.

AS SUBJECT TO THE CEMENT AGREEMENT, IMPORTS OF CEMENT UNDER TARIFF
NUMBERS 25231000, 25232900 AND 25239000 FROM MEXICO WILL REQUIRE
A CEMENT IMPORT AND EXPORT LICENSE PRIOR TO THE SUBMISSION OF THE
UNITED STATES CUSTOMS ENTRY SUMMARY OR FOREIGN TRADE ZONE (FTZ)
DOCUMENTS. (PLEASE NOTE, THIS PROCEDURE IS SIMILAR TO THE STEEL
IMPORT LICENSING PROCEDURE WHERE THE TRADE MUST OBTAIN THE LICENSE
PRIOR TO THE FILING OF THE SUMMARY DOCUMENTATION.)

FOR ANY CEMENT PRODUCT FOR WHICH THE UNITED STATES DEPARTMENT OF
COMMERCE REQUIRES A LICENSE UNDER ITS CEMENT LICENSING AND IMPORT
MONITORING PROGRAM, THE IMPORTER WILL BE REQUIRED TO SUBMIT AN
IMPORT LICENSE NUMBER ON THE ENTRY SUMMARY (CBP FORM 7501), AS
WELL AS A VALID PAPER MEXICAN EXPORT LICENSE WITH THE ENTRY
SUMMARY DOCUMENTATION. FOR APPLICATION FOR FOREIGN TRADE ZONE ADMISSION
AND/OR STATUS DESIGNATION (CBP FORM 214), THE IMPORTER WILL BE
REQUIRED TO SUBMIT AN IMPORT LICENSE NUMBER ON THE APPLICATION
AND WILL BE REQUIRED TO FILE THE EXPORT PERMIT WITH THE FOREIGN
TRADE ZONE OPERATOR.

AS A RESULT OF THE CEMENT LICENSING REQUIREMENT FOR IMPORTATIONS
FROM MEXICO, THE AUTOMATED COMMERCIAL SYSTEM (ACS) HAS ALREADY
BEEN MODIFIED TO ACCEPT THE NEW CEMENT IMPORT LICENSE AS REQUIRED
BY THE DEPARTMENT OF COMMERCE.

THE TRADE WILL BE PROVIDED WITH SUFFICIENT ADVANCE NOTICE FOR THE
EXACT DATE (DUTY COMPUTATION DATE) WHEN THE CEMENT LICENSE
SUBMISSION WILL BE REQUIRED FOR CEMENT SUBJECT TO THE CEMENT AGREEMENT
IMPORTED FROM MEXICO INTO THE UNITED STATES. THE DEPARTMENT OF COMMERCE
WILL ADVISE CUSTOMS AND BORDER PROTECTION (CBP) WHEN THE MEXICAN
CEMENT LICENSE IS REQUIRED. CBP WILL THEN ISSUE AN ADMINISTRATIVE
MESSAGE ADVISING THE TRADE WHEN THE MEXICAN CEMENT LICENSE MUST BE
TRANSMITTED ELECTRONICALLY.

THE SYSTEM REQUIREMENTS FOR FILING THE MEXICAN CEMENT IMPORT LICENSE
FOR IMPORTATIONS INTO THE UNITED STATES WILL BE THE FOLLOWING:

1) TARIFF NUMBERS SUBJECT TO THE MEXICAN CEMENT IMPORT LICENSE
PURSUANT TO THE CEMENT AGREEMENT WILL HAVE A PERMIT INDICATOR
OF '09' INDICATED ON THE TARIFF RECORD. THE HARMONIZED REFERENCE
FILE RECORD IDENTIFIER 'V2', MISCELLANEOUS PERMIT/INDICATOR
FIELD (POSITIONS 75 - 76) AND THE HARMONIZED QUERY TRANSACTION
RECORD IDENTIFIER 'W2', MISCELLANEOUS PERMIT/INDICATOR FIELD
(POSITIONS 75 - 76) WILL DISPLAY THE NEW PERMIT INDICATOR
ASSOCIATED WITH THE MEXICAN CEMENT IMPORT LICENSE.

CEMENT TARIFF NUMBERS THAT WILL BE SUBJECT TO THE MEXICAN CEMENT
IMPORT LICENSE REQUIREMENT ARE THE FOLLOWING:

25231000
25232900
25239000

THE ABOVE TARIFF NUMBERS WILL HAVE THE PERMIT INDICATOR OF '09'
INDICATED ON THE TARIFF RECORD (V2/W2 MISCELLANEOUS PERMIT/LICENSE
FIELD).

2) THE CEMENT MERCHANDISE MUST ORIGINATE FROM THE COUNTRY OF MEXICO
(MX). THE COUNTRY OF ORIGIN IS TRANSMITTED IN THE ENTRY SUMMARY,
RECORD IDENTIFIER 40 RECORD, POSITIONS 6 - 7.

3) THE CEMENT IMPORT LICENSE NUMBER AND PAPER EXPORT PERMIT WILL BE
REQUIRED FOR THE FOLLOWING ENTRY TYPES:

INFORMAL ENTRY TYPES: '11', '12'
CONSUMPTION ENTRY TYPES: '01', '02', '03', '07'
WAREHOUSE WITHDRAWAL ENTRY TYPES: '31', '32', '34', '38'

THE CEMENT IMPORT LICENSE WILL BE OPTIONAL FOR WAREHOUSE ENTRY TYPES
'21'/'22' AND FOR TEMPORARY IMPORTATION BONDS (TIB) ENTRY TYPE '23'.

4) THE CEMENT IMPORT LICENSE WILL ALSO BE REQUIRED FOR PAPER OR
ELECTRONIC TRANSMISSION OF CBP FORM 214. CBP IS URGING ALL
MEMBERS OF THE TRADE COMMUNITY TO FILE ELECTRONIC VERSIONS OF THE
CBP FORM E-214 WHERE POSSIBLE. FOR E-214 FILINGS, THE CEMENT
IMPORT LICENSE NUMBER FORMAT WILL BE 'CEM######' (NINE POSITION
FORMAT AND WILL BE REPORTED IN THE FT60 RECORD REFERENCE ID FIELD
WITH A REFERENCE QUALIFYING CODE 'CEM'. FOR THESE SHIPMENTS, TWO
(2) FT60 RECORDS WILL BE REQUIRED, ONE FOR THE MID AND ONE FOR THE
CEMENT IMPORT LICENSE. FOR PAPER FILINGS, THE CEMENT IMPORT LICENSE
NUMBER SHOULD BE REPORTED ON BLOCK 16 OF THE CBP FORM 214. THE
CEMENT EXPORT LICENSE MUST BE FILED WITH THE FOREIGN TRADE ZONE
OPERATOR.

THE CEMENT IMPORT AND EXPORT LICENSE SUBMISSION REQUIREMENT WILL
EFFECTIVE WITH THE DUTY COMPUTATION DATE OF MM/DD/CCYY (TO BE DETERMINED
BY THE DEPARTMENT OF COMMERCE).

THE MEXICAN CEMENT IMPORT LICENSE WILL BE ENTERED ON THE ENTRY SUMMARY
(EI) IN RECORD IDENTIFIER 52 (INPUT) IN THE MISCELLANEOUS
PERMIT/LICENSE NUMBER FIELD IN THE FOLLOWING MANNER:

RECORD IDENTIFIER 52 (INPUT)

DATA ELEMENT LENGTH/ POSITION STATUS DESCRIPTION
CLASS

MISCELLANEOUS
PERMIT/LICENSE NBR 9AN 30 - 38 C MEXICO CEMENT IMPORT
LICENSE REQUIRED FOR
TARIFF NUMBERS SUBJECT TO
THE MEXICAN CEMENT IMPORT
LICENSE REQUIREMENT

THE ERROR MESSAGE '0P1' - '52 REC-PERMIT/LICENSE REQUIRED' WILL BE
RETURNED TO THE FILER IF A TARIFF NUMBER SUBJECT TO THE MEXICAN
CEMENT IMPORT LICENSE IS SUBMITTED WITHOUT THE CEMENT LICENSE NUMBER.

COMMERCE WILL ADVISE CBP ON THE EFFECTIVE DATE WHEN THE MEXICAN
CEMENT LICENSE IS REQUIRED AND CBP WILL ISSUE A NOTIFICATION
MESSAGE VIA ABI. THE EFFECTIVE DATE FOR THE MEXICAN LICENSE WILL BE
EQUAL TO THE DUTY COMPUTATION DATE FOR A SUMMARY.

TO DETERMINE THE DUTY COMPUTATION DATE FOR A SUMMARY, REFER TO ANY OF
THE FOLLOWING CATAIR ENTRY SUMMARY (EI INPUT) REFERENCES:

ENTRY SUMMARY RECORD 10 (INPUT), NOTE 3.
ENTRY SUMMARY RECORD 20 (INPUT), NOTE 2.
ENTRY SUMMARY RECORD 30 (INPUT), NOTE 6.

THE MEXICAN CEMENT IMPORT LICENSE SHOULD BE DISPLAYED IN BLOCK 34
OF THE CBP FORM 7501 IN OR NEAR WHERE THE CURRENT VISA NUMBER IS
DISPLAYED.

PLEASE ACCESS THE FOLLOWING WEBSITE FOR INFORMATION ON CEMENT LICESES:
WEBSITE: HTTP://IA.ITA.DOC.GOV/CEMENT-AGREEMENT/INDEX.HTML.

QUESTIONS REGARDING THE OBTAINING OF THE MEXICAN CEMENT LICENSES SHOULD
BE DIRECTED TO THE DEPARTMENT OF COMMERCE, ATTENTION JONATHON HERZOG
AT (202) 482-4271 OR JUDY RUDMAN (202) 482-0192.

QUESTIONS RELATING TO CBP POLICY AND PROCEDURES FOR ENTRY SUMMARY
SUBMISSION SHOULD BE DIRECTED TO ALICE BUCHANAN OF THE OFFICE OF
FIELD OPERATIONS AT (202) 344-2697.

QUESTIONS RELATING TO FOREIGN TRADE ZONE (FTZ) APPLICATION SUBMISSION
SHOULD BE DIRECTED TO JERRY LEUTERS OF THE OFFICE OF INFORMATION AND
TECHNOLOGY AT (703) 650-3012.

QUESTIONS RELATING TO THE ABI SYSTEM SHOULD BE DIRECTED TO YOUR LOCAL
ABI CLIENT REPRESENTATIVE OR TO ACS, ATTENTION TONY CASUCCI AT
(202) 772-2041.

Referenced By

CSMS #07-000062