CSMS Message: 14-000003

Title:2014 HTSUS GSN 3(c) Updated to Clarify Eligibility under SPI C#, K# and L#
Date:2014-01-03
To:abi,acep
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Harmonized Tariff Schedule of the United States (HTSUS) General Statistical Note 3(c) (page 853) has been updated in the 2014 HTSUS.

Purpose of HTSUS GSN 3(c) Update:
HTSUS GSN 3(c) was updated in the 2014 HTSUS to indicate that goods imported under the Civil Aircraft Agreement, Pharmaceutical Agreement and Intermediate Chemicals for Dyes Agreement (SPI “C,” “K,” and “L,” respectively) that are the product of a country with which the U.S. has a free trade agreement (FTA) that provides the MPF exemption can be imported free of merchandise processing fee (MPF) using SPI C#, K#, and L#, even if the FTA's more stringent origination rules and imported directly rules are not met. This applies to all FTAs that provide the MPF exemption (NAFTA, Chile, Singapore, Australia, Israel, Bahrain, Oman, CAFTA, Peru, Korea, Colombia and Panama).

The 2014 HTSUS GSN 3(c) text reads:
(c) (i) Goods of a country with which the United States has a free trade agreement, that meet the terms of that agreement, when marked or eligible to be marked with their country of origin, and entered with any
of the following special program indicators(SPIs) prefacing the 10-digit HTS number are exempt from the Merchandise Processing Fee (MPF):

United States-Australia Free Trade Agreement. . . ....... . . . . . AU
United States-Bahrain Free Trade Agreement Implementation Act .. . BH
United States-Chile Free Trade Agreement.. . . . . . . . . . . ... CL
United States-Colombia Free Trade Agreement. . . . . . . . . . . CO
North American Free Trade Agreement: Goods of Canada. . . . . . .. CA
North American Free Trade Agreement: Goods of Mexico. . . . . . .. MX
United States-Korea Free Trade Agreement Implementation Act . . . . KR
United States-Oman Free Trade Agreement Implementation Act. . . . . OM
Dominican Republic-Central America-United States Free Trade Agreement Implementation Act....P or P+
United States-Panama Trade Promotion Agreement Implementation Act . PA
United States-Peru Trade Promotion Agreement Implementation Act . . PE
United States-Singapore Free Trade Agreement. . . . . . . . . . . . SG

(ii) Goods of Israel, when marked or eligible to be marked with their country of origin, are exempt from the Merchandise Processing Fee (MPF) when entered with the SPI “IL” prefacing the 10-digit HTS number.

(iii) Goods of Canada, when marked or eligible to be marked with their country of origin, that comply with the terms of the Automotive Products Trade are exempt from the Merchandise Processing Fee (MPF) when entered with the SPI “B#” prefacing the 10-digit HTS number.

(Iv) Goods of a country with which the United States has a free trade agreement that provides for the MPF exemption, when marked or eligible to be marked with their country of origin, are exempt from the Merchandise Processing Fee (MPF) when in compliance with the following special programs and entered with any of the following SPIs prefacing the 10-digit HTS number:

Agreement on Trade in Civil Aircraft. . . . . . . . . . . . . . . . . . C#
Agreement on Trade in Pharmaceutical Products. . . . . . . . . . . . . K#
Uruguay Round Concessions on Intermediate Chemicals for Dyes. . . . . . L#

The 2014 HTSUS GSN 3(c) is available on the USITC website at

http://www.usitc.gov/publications/docs/tata/hts/bychapter/1400gn.pdf (page 853).

Please note that although the Automotive Products Trade Act (SPI “B” and “B#”) is still in the Regulations (19 CFR 10.84) and HTSUS (General Note 5 and this GSN), although it has been superseded by the North American Free Trade Agreement (NAFTA) and should not be claimed.

Questions concerning this posting may be directed to the Trade Agreements Branch at fta@dhs.gov.

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CSMS #14-000077