| Title: | DESIG. OF COLOMBIA/BOLIVIA |
|---|---|
| Date: | 1992-07-11 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : LISA CROSBY
SUBJECT : ATP-DESIG. OF COLOMBIA/BOLIVIA
DATE : 07/10/92
2190071
JULY 8, 1992
SPE-1-CO:T:T:T LAC
CATEGORY: INA
TO: ALL ASSISTANT REGIONAL COMMISSIONERS (OPERATIONS),
REGIONAL DIRECTORS FOR COMMERCIAL OPERATIONS, DISTRICT
DIRECTORS
FROM: ACTING DIRECTOR, OFFICE OF TRADE OPERATIONS
RE: PRESIDENTIAL PROCLAMATIONS 6455 AND 6456, DATED JULY
2, 1992, DESIGNATING COLOMBIA AND BOLIVIA AS
BENEFICIARY COUNTRIES FOR PURPOSES OF THE ANDEAN TRADE
PREFERENCE ACT (ATPA)
REFERENCE: MESSAGE NUMBER 2354071, DATED DECEMBER 20, 1991
PASS TO: ALL CUSTOMS OFFICERS AND OTHER INTERESTED PARTIES SUCH
AS BROKERS AND IMPORTERS
BACKGROUND:
ON DECEMBER 4, 1991, PRESIDENT BUSH SIGNED INTO LAW THE
ANDEAN TRADE PREFERENCE ACT (ATPA). SECTIONS 202 AND 204 (19
U.S.C. 3201 AND 3203) CONFER AUTHORITY UPON THE PRESIDENT TO
PROCLAIM DUTY-FREE TREATMENT FOR ALL ELIGIBLE ARTICLES, AND DUTY
REDUCTIONS FOR CERTAIN OTHER ARTICLES, THAT ARE THE PRODUCT OF
ANY COUNTRY DESIGNATED AS A "BENEFICIARY COUNTRY" IN ACCORDANCE
WITH THE PROVISIONS OF SECTION 203 OF THE ATPA (19 U.S.C. 3202).
IN PRESIDENTIAL PROCLAMATION 6455, DATED JULY 2, 1992, THE
PRESIDENT DESIGNATED COLOMBIA AS A BENEFICIARY COUNTRY FOR
PURPOSES OF THE ATPA AND MODIFIED THE HARMONIZED TARIFF SCHEDULE
OF THE UNITED STATES (HTS) TO INCORPORATE THE SUBSTANCE OF
RELEVANT PROVISIONS OF THE ATPA. IN PRESIDENTIAL PROCLAMATION
6456, OF THE SAME DATE, HE DESIGNATED BOLIVIA AS A BENEFICIARY
COUNTRY FOR PURPOSES OF THE ATPA.
ACTION:
1. EFFECTIVE WITH RESPECT TO ARTICLES ENTERED, OR WITHDRAWN
FROM WAREHOUSE FOR CONSUMPTION, ON OR AFTER JULY 22, 1992,
GENERAL NOTE 3(C)(I)(A) TO THE HARMONIZED TARIFF SCHEDULE OF
THE UNITED STATES (HTS) IS MODIFIED BY INSERTING AT THE END
OF SUCH SUBDIVISION THE FOLLOWING:
"ANDEAN TRADE PREFERENCE ACT . . . . . . . . J OR J*"
2. EFFECTIVE WITH RESPECT TO ARTICLES ENTERED, OR WITHDRAWN
FROM WAREHOUSE FOR CONSUMPTION, ON OR AFTER JULY 22, 1992,
GENERAL NOTE 3(C)(I)(A) TO THE HARMONIZED TARIFF SCHEDULE OF
THE UNITED STATES (HTS) IS MODIFIED BY ADDING THE FOLLOWING
NEW SUBDIVISION (IX) TO GENERAL NOTE 3(C) TO THE HTS:
"(IX) PRODUCTS OF COUNTRIES DESIGNATED AS BENEFICIARY
COUNTRIES FOR PURPOSES OF THE ANDEAN TRADE
PREFERENCE ACT (ATPA). ¢UNDERLINED|
(A) THE FOLLOWING COUNTRIES OR SUCCESSOR
POLITICAL ENTITIES ARE DESIGNATED BENEFICIARY
COUNTRIES FOR PURPOSES OF THE ATPA, PURSUANT
TO SECTION 203 OF THAT ACT (19 U.S.C. 3202):
BOLIVIA COLOMBIA
(B) (1) UNLESS OTHERWISE EXCLUDED FROM
ELIGIBILITY BY THE PROVISIONS OF
SUBDIVISIONS (C)(IX)(D) OR (C)(IX)(E) OF
THIS NOTE, ANY ARTICLE WHICH IS THE
GROWTH, PRODUCT, OR MANUFACTURE OF A
BENEFICIARY COUNTRY SHALL BE ELIGIBLE
FOR DUTY-FREE TREATMENT IF THAT ARTICLE
IS PROVIDED FOR IN A PROVISION FOR WHICH
A RATE OF DUTY "FREE" APPEARS IN THE
"SPECIAL" SUBCOLUMN FOLLOWED BY THE
SYMBOL "J" OR "J*" IN PARENTHESES, AND
IF --
(I) THAT ARTICLES IS IMPORTED DIRECTLY
FROM A BENEFICIARY COUNTRY INTO THE
CUSTOMS TERRITORY OF THE UNITED
STATES; AND
(II) THE SUM OF (A) THE COST OR VALUE
OF THE MATERIALS PRODUCED IN A
BENEFICIARY COUNTRY OR TWO OR MORE
BENEFICIARY COUNTRIES (UNDER THE
ATPA OR THE CBERA), PLUS (B) THE
DIRECT COSTS OF PROCESSING
OPERATIONS PERFORMED IN A
BENEFICIARY COUNTRY OR COUNTRIES
(UNDER THE ATPA OR THE CBERA) IS
NOT LESS THAN 35 PERCENT OF THE
APPRAISED VALUE OF SUCH ARTICLE AT
THE TIME IT IS ENTERED. FOR
PURPOSES OF DETERMINING THE
PERCENTAGE REFERRED TO IN (II)(B)
ABOVE, THE TERM "BENEFICIARY
COUNTRY" INCLUDES THE COMMONWEALTH
OF PUERTO RICO AND THE UNITED
STATES VIRGIN ISLANDS. IF THE COST
OR VALUE OF MATERIALS PRODUCED IN
THE CUSTOMS TERRITORY OF THE UNITED
STATES (OTHER THAN THE COMMONWEALTH
OF PUERTO RICO) IS INCLUDED WITH
RESPECT TO AN ARTICLE TO WHICH
SUBDIVISION (C)(IX) APPLIES, AN
AMOUNT NOT TO EXCEED 15 PERCENT OF
THE APPRAISED VALUE OF THE ARTICLE
AT THE TIME IT IS ENTERED THAT IS
ATTRIBUTED TO SUCH UNITED STATES
COST OR VALUE MAY BE APPLIED TOWARD
DETERMINING THE PERCENTAGE REFERRED
TO IN SUBPARAGRAPH (II)(B) ABOVE.
(2) PURSUANT TO SUBSECTION 204(A)(2) OF THE
ATPA, THE SECRETARY OF THE TREASURY
SHALL PRESCRIBE SUCH REGULATIONS AS MAY
BE NECESSARY TO CARRY OUT SUBDIVISION
(C)(IX) OF THIS NOTE INCLUDING, BUT NOT
LIMITED TO, REGULATIONS PROVIDING THAT,
IN ORDER TO BE ELIGIBLE FOR DUTY-FREE
TREATMENT UNDER THE ATPA, AN ARTICLE
MUST BE WHOLLY THE GROWTH, PRODUCT, OR
MANUFACTURE OF A BENEFICIARY COUNTRY, OR
MUST BE A NEW AND DIFFERENT ARTICLE OF
COMMERCE WHICH HAS BEEN GROWN, PRODUCED,
OR MANUFACTURED IN THE BENEFICIARY
COUNTRY; BUT NO ARTICLE OR MATERIAL OF A
BENEFICIARY COUNTRY SHALL BE ELIGIBLE
FOR SUCH TREATMENT BY VIRTUE OF HAVING
MERELY UNDERGONE --
(I) SIMPLE COMBINING OR PACKAGING
OPERATIONS, OR
(II) MERE DILUTION WITH WATER OR MERE
DILUTION WITH ANOTHER SUBSTANCE
THAT DOES NOT MATERIALLY ALTER THE
CHARACTERISTICS OF THE ARTICLE.
(3) AS USED IN SUBDIVISION (C)(IX)(B) OF
THIS NOTE, THE PHRASE "DIRECT COSTS OF
PROCESSING OPERATIONS" ¢UNDERLINED|
INCLUDES, BUT IS NOT LIMITED TO --
(I) ALL ACTUAL LABOR COSTS INVOLVED IN
THE GROWTH, PRODUCTION,
MANUFACTURE, OR ASSEMBLY OF THE
SPECIFIC MERCHANDISE, INCLUDING
FRINGE BENEFITS, ON-THE-JOB
TRAINING AND THE COST OF
ENGINEERING, SUPERVISORY, QUALITY
CONTROL, AND SIMILAR PERSONNEL; AND
(II) DIES, MOLDS, TOOLING, AND
DEPRECIATION ON MACHINERY AND
EQUIPMENT WHICH ARE ALLOCABLE TO
THE SPECIFIC MERCHANDISE.
SUCH PHRASE DOES NOT INCLUDE COSTS WHICH
ARE NOT DIRECTLY ATTRIBUTABLE TO THE
MERCHANDISE CONCERNED OR ARE NOT COSTS
OF MANUFACTURING THE PRODUCT, SUCH AS
(I) PROFIT, AND (II) GENERAL EXPENSES OF
DOING BUSINESS WHICH ARE EITHER NOT
ALLOCABLE TO THE SPECIFIC MERCHANDISE OR
ARE NOT RELATED TO THE GROWTH,
PRODUCTION, MANUFACTURE, OR ASSEMBLY OF
THE MERCHANDISE, SUCH AS ADMINISTRATIVE
SALARIES, CASUALTY AND LIABILITY
INSURANCE, ADVERTISING, INTEREST, AND
SALESMEN'S SALARIES, COMMISSIONS OR
EXPENSES.
(C) ARTICLES PROVIDED FOR IN A PROVISION FOR
WHICH A RATE OF DUTY OF "FREE" APPEARS IN THE
"SPECIAL" SUBCOLUMN FOLLOWED BY THE SYMBOL
"J" OR "J*" IN PARENTHESES ARE ELIGIBLE
ARTICLES FOR PURPOSES OF THE ATPA PURSUANT TO
SECTION 204 OF THAT ACT. WHENEVER AN
ELIGIBLE ARTICLE IS IMPORTED INTO THE CUSTOMS
TERRITORY OF THE UNITED STATES IN ACCORDANCE
WITH THE PROVISIONS OF SUBDIVISION (C)(IX)(B)
OF THIS NOTE FROM A COUNTRY LISTED IN
SUBDIVISION (C)(IX)(A) OF THIS NOTE, IT SHALL
BE ELIGIBLE FOR DUTY-FREE TREATMENT SET FORTH
IN THE "SPECIAL" SUBCOLUMN, UNLESS EXCLUDED
FROM SUCH TREATMENT BY SUBDIVISION (C)(IX)(D)
OF THIS NOTE. WHENEVER A RATE OF DUTY OTHER
THAN "FREE" APPEARS IN THE "SPECIAL"
SUBCOLUMN FOLLOWED BY THE SYMBOL "J" IN
PARENTHESES, ARTICLES IMPORTED INTO THE
CUSTOMS TERRITORY OF THE UNITED STATES IN
ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION
(C)(IX)(B) OF THIS NOTE SHALL BE ELIGIBLE FOR
SUCH A RATE IN LIEU OF THE RATES OF DUTY SET
FORTH IN THE "GENERAL" SUBCOLUMN.
(D) ARTICLES PROVIDED FOR IN A PROVISION FOR
WHICH A RATE OF DUTY OF "FREE" APPEARS IN THE
"SPECIAL" SUBCOLUMN FOLLOWED BY THE SYMBOL
"J*" IN PARENTHESES SHALL BE ELIGIBLE FOR
THE DUTY-FREE TREATMENT PROVIDED FOR IN
SUBDIVISION (C)(IX) OF THIS NOTE, EXCEPT --
(1) TEXTILE AND APPAREL ARTICLES WHICH ARE
SUBJECT TO TEXTILE AGREEMENTS;
(2) FOOTWEAR NOT DESIGNATED AT THE TIME OF
THE EFFECTIVE DATE OF THE ANDEAN TRADE
PREFERENCE ACT AS ELIGIBLE FOR THE
PURPOSES OF THE GENERALIZED SYSTEM OF
PREFERENCES ¢SIC| UNDER TITLE V OF THE
TRADE ACT OF 1974;
(3) TUNA, PREPARED OR PRESERVED IN ANY
MANNER, IN AIRTIGHT CONTAINERS;
(4) PETROLEUM, OR ANY PRODUCT DERIVED FROM
PETROLEUM, PROVIDED FOR IN HEADINGS 2709
AND 2710 OF THE HTS;
(5) WATCHES AND WATCH PARTS (INCLUDING
CASES, BRACELETS AND STRAPS), OF
WHATEVER TYPE INCLUDING, BUT NOT LIMITED
TO, MECHANICAL, QUARTZ DIGITAL OR QUARTZ
ANALOG, IF SUCH WATCHES OR WATCH PARTS
CONTAIN ANY MATERIAL WHICH ¢SIC| THE
PRODUCT OF ANY COUNTRY WITH RESPECT TO
WHICH THE HTS COLUMN 2 RATES OF DUTY
APPLY;
(6) ARTICLES TO WHICH REDUCED RATES OF DUTY
APPLY UNDER SUBDIVISION (C)(IX)(E) OF
THIS NOTE;
(7) SUGARS, SYRUPS, AND MOLASSES PROVIDED
FOR IN SUBHEADINGS 1701.11.03,
1701.12.02, 1701.99.02, 1702.90.32,
1806.10.42, AND 2106.90.12 OF THE HTS;
OR
(8) RUM AND TAFIA PROVIDED FOR IN
SUBHEADINGS 2208.40.00 OF THE HTS.
(E) HANDBAGS, LUGGAGE, FLAT GOODS, WORK GLOVES,
AND LEATHER WEARING APPAREL, THE PRODUCT OF
ANY BENEFICIARY COUNTRY, AND NOT DESIGNATED
ON AUGUST 5, 1983, AS ELIGIBLE ARTICLES FOR
PURPOSES OF THE GSP, ARE DUTIABLE AT THE
RATES SET FORTH IN THE "SPECIAL" SUBCOLUMN
FOLLOWED BY THE SYMBOL "J" IN PARENTHESES."
3. FURTHERMORE, PRESIDENTIAL PROCLAMATION 6455 PROVIDES THAT
THE SYMBOL "J" BE INSERTED IN THE RATES OF DUTY 1-SPECIAL
SUBCOLUMN IN THE PARENTHESES FOLLOWING THE "FREE" RATE, IN
ALPHABETICAL ORDER, FOR NUMEROUS HTS NUMBERS. SINCE THE
SYMBOL "J" IS TO BE INSERTED FOR OVER 6,000 HTS PROVISIONS,
IT IS NOT POSSIBLE TO PROVIDE ALL THE HTS NUMBERS HERE.
FIELD OFFICERS SHOULD CONSULT THE FEDERAL REGISTER OF JULY
7, 1992, P. 30069, FOR A COMPLETE LISTING OF AFFECTED HTS
NUMBERS. IN GENERAL, SINCE THE ATPA IS PATTERNED AFTER THE
CBI, ANY HTS NUMBER WHICH HAS AN "E" IN THE "SPECIAL"
SUBCOLUMN, WILL ALSO HAVE A "J" (EXCEPT HTS 2208.40.00,
WHICH PROVIDES FOR RUM AND TAFIA). THOSE THAT HAVE AN "E*"
WILL HAVE A "J*" INSERTED. (IN ADDITION HTS 1701.91.22 IS
ELIGIBLE FOR DUTY-FREE ENTRY UNDER ATPA BUT NOT UNDER CBI.)
A NEW TARIFF SCHEDULE IS CURRENTLY BEING PRINTED AND THE
INTERNATIONAL TRADE COMMISSION SHOULD BEGIN DELIVERING THE
NEW EDITION TO FIELD OFFICES AT THE END OF THIS MONTH.
IT SHOULD BE NOTED THAT PRESIDENTIAL PROCLAMATION 6455,
IMPLEMENTING THE ATPA AND DESIGNATING COLOMBIA AS A
BENEFICIARY COUNTRY, DOES NOT REFLECT THE NEW SUBHEADINGS
CREATED BY PRESIDENTIAL PROCLAMATION 6447 (FEDERAL REGISTER,
VOL. 57, NO. 117, JUNE 17, 1992; CUSTOMS MESSAGE 2168071,
DATED JUNE 17, 1992). THIS SHOULD NOT PRESENT A PROBLEM,
HOWEVER, SINCE PRESIDENTIAL PROCLAMATION 6447 PROVIDES THAT
A "J" BE INSERTED IN THE "SPECIAL" SUBCOLUMN FOR THE NEWLY
CREATED TARIFF NUMBERS. INSTRUCTIONS IN PRESIDENTIAL
PROCLAMATION 6455 TO INSERT A "J" IN THE "SPECIAL" SUBCOLUMN
FOR NONEXISTENT TARIFF NUMBERS SHOULD BE DISREGARDED AND THE
INSTRUCTIONS AS SET FORTH IN PRESIDENTIAL PROCLAMATION 6447
SHOULD BE FOLLOWED.
4. ADDITIONAL U.S. NOTE 1 TO CHAPTER 11 OF THE HTS IS DELETED
AND THE FOLLOWING INSERTED IN LIEU THEREOF:
"1. NOTWITHSTANDING THE RATES OF DUTY SET FORTH IN THIS
CHAPTER, MIXTURES OF THE PRODUCTS CLASSIFIABLE IN
HEADING 1101, 1102, 1103 OR 1104 (EXCEPT MIXTURES
CLASSIFIED IN SUBHEADING 1102.90.30) ARE DUTIABLE AT
THE RATE OF 20% (EXCEPT IN THE CASE OF PRODUCTS
ELIGIBLE FOR SPECIAL TARIFF TREATMENT UNDER GENERAL
NOTE 3(C) THE FOLLOWING RATES OF DUTY SHALL APPLY:
FREE (E,IL,J); 12% (CA)."
5. FOR THE FOLLOWING HTS SUBHEADINGS, IN THE RATES OF DUTY 1-
SPECIAL SUBCOLUMN, INSERT THE RATE OF DUTY OF "FREE"
FOLLOWED BY THE SYMBOLS "E,J" IN PARENTHESES:
3916.90.30 3918.90.20
3918.10.32 7019.90.10
6. FOR THE FOLLOWING HTS SUBHEADINGS, IN THE RATES OF DUTY 1-
SPECIAL SUBCOLUMN, INSERT THE RATE OF DUTY OF "FREE"
FOLLOWED BY THE SYMBOLS "E*,J*" IN PARENTHESES:
3921.90.21 6406.99.15
3921.90.25 7019.10.60
5605.00.00 9612.10.90
5903.20.10
7. FOR THE FOLLOWING HTS PROVISIONS, IN THE RATES OF DUTY 1-
SPECIAL SUBCOLUMN, INSERT IN THE PARENTHESES FOLLOWING THE
"FREE" RATE THE SYMBOL "E" IN ALPHABETICAL ORDER.
3403.11.20 9404.29.10
3403.19.10 9404.30.80
8. FOR THE FOLLOWING HTS PROVISIONS, IN THE RATES OF DUTY 1-
SPECIAL SUBCOLUMN, DELETE THE SYMBOL "E*" AND INSERT THE
SYMBOL "E" IN LIEU THEREOF:
3918.10.40 4010.10.10 6204.39.60
3918.90.30 4010.91.19 6204.49.10
3926.20.50 4010.99.19 9612.20.00
3926.90.59 4015.90.00
4008.21.00 4304.00.00
9. PRODUCTS FROM COLOMBIA AND BOLIVIA WILL ALSO BE ELIGIBLE FOR
THE STAGED RATE REDUCTIONS ON CERTAIN HANDBAGS, LUGGAGE,
FLAT GOODS, WORK GLOVES AND LEATHER WEARING APPAREL THAT
WERE ANNOUNCED IN PRESIDENTIAL PROCLAMATION 6428 (FEDERAL
REGISTER, VOL. 57, NO. 88, MAY 6, 1992; CUSTOMS MESSAGE
NUMBER 2086071 DATED MAY 11, 1992). ACCORDINGLY, FOR EACH
OF THE FOLLOWING PROVISIONS OF THE HTS, THE RATES OF DUTY-1
SPECIAL SUBCOLUMN IN THE HTS IS MODIFIED BY INSERTING IN
SUCH SUBCOLUMN ON JULY 22, 1992, THE RATE OF DUTY SPECIFIED
FOR SUCH HTS PROVISION IN THE FOLLOWING TABULATION, FOLLOWED
BY THE SYMBOL "J" IN PARENTHESES.
HTS PROVISION RATE HTS PROVISION RATE
4202.11.00 7.7% 4202.92.60 6.9%
4202.12.20 19.5% 4202.92.90 19.5%
4202.12.40 6.9% 4202.99.00 19.5%
4202.12.60 6.2% 4203.10.40 5.8%
4202.12.80 19.5% 4203.29.08 13.5%
4202.19.00 19.5% 4203.29.18 13.5%
4202.21.30 5.1% 4602.10.21 12 %
4202.21.60 9.6% 4602.10.22 5.6%
4202.21.90 8.7% 4602.10.25 17.5%
4202.22.15 19.5% 4602.10.29 5.1%
4202.22.40 8.1% 6116.10.17 24.5%
4202.22.45 6.9% 6116.10.45 19.3%
4202.22.60 6.2% 6116.10.70 13.5%
4202.22.80 19.5% 6116.92.64 24.5%
4202.29.00 19.5% 6116.92.88 9.6%
4202.31.60 7.7% 6116.93.64 33.1 C/KG + 7.1%
4202.32.40 6.9% 6116.93.88 19.3%
4202.32.95 19.5% 6116.99.48 19.5%
4202.91.00 6.5% 6216.00.17 24.5%
4202.92.15 6.9% 6216.00.18 22 C/KG + 10.6%
4202.92.20 6.2% 6216.00.28 13.5%
4202.92.30 19.5% 6216.00.38 24.5%
4202.92.45 19.5% 6216.00.54 22 C/KG + 10.6%
10. FOR VERIFICATION PURPOSES, THE ATPA WILL EMPLOY THE
CERTIFICATE OF ORIGIN, FORM A, FOLLOWING THE SAME GUIDELINES
CURRENTLY USED FOR THE CBI. A CLAIM FOR DUTY-FREE TREATMENT
PURSUANT TO THE ATPA MAY BE MADE BY USING THE LETTER "J" AS
A PREFIX TO THE APPROPRIATE HTS NUMBER ON CUSTOMS FORM 7501.
THE CERTIFICATE OF ORIGIN, FORM A, NEED NOT BE SUBMITTED IN
ORDER TO MAKE A DUTY-FREE CLAIM PURSUANT TO THE ATPA BUT
SHALL BE PROVIDED IF REQUESTED BY CUSTOMS.
11. DUE TO THE MAGNITUDE OF THESE CHANGES, THE AUTOMATED
COMMERCIAL SYSTEM (ACS) MAY NOT BY FULLY UPDATED UNTIL VERY
CLOSE TO JULY 22, 1992. THEREFORE, FILERS WHO PRE-FILE
ENTRY SUMMARIES MAY WISH TO DO SO OFF-LINE (NON-ABI) UNTIL
ALL THE CHANGES CAN BE COMPLETED IN ACS.
QUESTIONS REGARDING THIS NOTICE MAY BE DIRECTED TO LISA
CROSBY, TRADE AGREEMENTS BRANCH, AT (202)/927-0163.
WILLIAM J. LUEBKERT