CSMS Message: 92-000182

Title:COLLECTION OF COTTON FEE
Date:1992-07-15
To:abi
Links:previous, next

TO : ALL ABI BROKERS.

FROM : SUSAN LANDRY

SUBJECT : COL-COLLECTION OF COTTON FEE

DATE : 07/15/92

JULY 14, 1992
2196011

CATEGORY: COL ENT-1-CO:TO:E:CS SL

TO : REGIONAL DIRECTORS (COMMERCIAL OPERATIONS),
DISTRICT, AREA AND PORT DIRECTORS OF CUSTOMS

FROM : ACTING DIRECTOR, OFFICE OF TRADE OPERATIONS

RE : COLLECTION OF COTTON FEE

PASS TO : ALL CUSTOMS PERSONNEL, BROKERS, FILERS AND
OTHER INTERESTED PARTIES

REFERENCE IS MADE TO EMAIL NOTICE #2184011 DATED JULY 2, 1992,
CONFIRMING THE IMPLEMENTATION OF THE NEW "COTTON FEE" ON COTTON
AND COTTON-CONTAINING PRODUCTS. PLEASE NOTE: DETAILS CONCERNING
THE COTTON ASSESSMENT PROGRAM WERE PUBLISHED IN THE FEDERAL
REGISTER ON JULY 1, 1992. A NEW SET OF TABLES PROVIDING LOWER
ASSESSMENT RATES WAS PUBLISHED IN THE FEDERAL REGISTER ON JULY 2,
1992. THE LOWER RATES WILL BE USED. IT IS IMPORTANT TO READ
BOTH FEDERAL REGISTER NOTICES.

COLLECTION REQUIREMENTS:

CUSTOMS WILL COLLECT THE FEE ON SHIPMENTS OF UPLAND COTTON, AND
PRODUCTS CONTAINING UPLAND COTTON, ENTERED OR WITHDRAWN FROM
WAREHOUSE FOR CONSUMPTION ON OR AFTER JULY 31, 1992.

THE COTTON FEE WILL BE COLLECTED THROUGH THE AUTOMATED COMMERCIAL
SYSTEM (ACS) UNDER COLLECTION CODE 056. ANY AND ALL REFUNDS WILL
BE HANDLED BY THE DEPARTMENT OF AGRICULTURE.

TARIFF NUMBERS:

HTS NUMBERS SUBJECT TO THE FEE, THE CONVERSION FACTORS USED TO
DETERMINE THE ASSESSMENT, AND THE ACTUAL CENTS PER KILOGRAM RATES
ARE LISTED ON THE IMPORT ASSESSMENT TABLES IN THE ABOVE-
REFERENCED FEDERAL REGISTERS. THESE ARE BEING INPUT INTO THE ACS
SYSTEM. THE COTTON FEE RATES WILL BE AVAILABLE FOR ELECTRONIC
RETRIEVAL BY JULY 18, 1992.
(NOTE: ONLY THE COLUMN LABELLED "CENTS/KG" IS USED TO CALCULATE
THE FEE.)

EXEMPTIONS:

1) HTS NUMBERS BEGINNING WITH 9802.00.40, 9802.00.50, 9802.00.80
AND 9813 ARE EXEMPT EVEN IF ENTERED WITH ANOTHER TARIFF NUMBER
SUBJECT TO THE COTTON FEE.

2) ARTICLES CLASSIFIED UNDER HTS NUMBERS WITH A VALID "H" SPECIAL
PROGRAM INDICATOR (SPI) ARE EXEMPT.

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3) IF THE COTTON COLLECTION IS $2.00 OR LESS PER LINE IT WILL
NOT BE COLLECTED, NOR SHOULD IT BE INDICATED ON THE CF 7501.

4) INFORMAL ENTRIES AND TIB'S ARE EXEMPT FROM PAYMENT OF THE FEE.

5) PRODUCTS OR ARTICLES NOT CONTAINING ANY COTTON ARE EXEMPT.

6) THE COTTON BOARD HAS DETERMINED THAT CERTAIN IMPORTATIONS MAY
BE EXEMPT FROM PAYMENT OF THE FEE. IMPORTERS WILL BE REQUIRED
TO REQUEST EXEMPTION CERTIFICATES FROM THE BOARD PRIOR TO THE
DATE OF ENTRY AND TO INDICATE THE APPLICABLE CERTIFICATE NUMBER
ON THE ENTRY DOCUMENTS. CUSTOMS WILL NOT BE RESPONSIBLE FOR
DETERMINING ELIGIBILITY FOR EXEMPTIONS, FOR ISSUING EXEMPT
CERTIFICATES OR FOR GRANTING REFUNDS.

7) U.S. GOODS RETURNED WHICH ARE PROPERLY CLASSIFIED UNDER
9801.00.10 ARE EXEMPT.

CF 7501 REPORTING PROCEDURES

THE NOTATION "COTTON FEE" WILL APPEAR IN COLUMNS 30 THROUGH 32
FOR EACH LINE ITEM SUBJECT TO AN ASSESSMENT.

THE ASSESSMENT RATE FROM THE "CENTS/KG" COLUMN OF THE TABLES
MULTIPLIED BY THE NET KG. FOR THE LINE ITEM WILL DETERMINE THE
AMOUNT OF THE COTTON FEE. (EXAMPLE: FOR HTS 5201001000, THE NET
KILOS WOULD BE MULTIPLIED BY .011332). THE APPROPRIATE
ASSESSMENT RATE WILL BE REPORTED IN COLUMN 34 AND THE CALCULATED
AMOUNT DUE WILL BE SHOWN IN COLUMN 35.

WHERE MULTIPLE TARIFF NUMBERS ARE REQUIRED TO BE REPORTED ON A
LINE ITEM, COMPUTE THE FEE BASED ON THE RATE APPLICABLE TO THE
FIRST TARIFF NUMBER SUBJECT TO THE COTTON ASSESSMENT.

IF THE COTTON BOARD HAS ISSUED AN EXEMPTION CERTIFICATE FOR A
LINE ITEM, THE 9-DIGIT CERTIFICATE NUMBER WILL BE REPORTED IN
COLUMN 34, (UNDER THE VISA NUMBER IF THE LINE ITEM IS SUBJECT TO
A VISA).

IF ARTICLES DO NOT CONTAIN ANY COTTON, BUT ARE PROPERLY
CLASSIFIED UNDER AN HTS NUMBER THAT IS SUBJECT TO AN ASSESSMENT,
THE EXEMPTION NUMBER "999999999" MUST BE REPORTED IN COLUMN 34 TO
INDICATE THAT NO FEE IS REQUIRED. THIS NUMBER SHOULD BE PLACED
IN THE SAME LOCATION AS THE 9-DIGIT EXEMPT CERTIFICATE NUMBER
WOULD BE PLACED.

THE TOTAL AMOUNT OF COTTON ASSESSMENT FOR THE ENTRY WILL BE
IDENTIFIED WITH THE COLLECTION CODE 056 IN THE BLOCK 39 SUMMARY
AT THE BOTTOM OF THE FIRST PAGE OF THE CF 7501.

ABI ENTRIES WHICH ARE NOT IN COMPLIANCE WITH THE ABOVE
INSTRUCTIONS WILL BE REJECTED BY THE SYSTEM. NON-ABI ENTRIES
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WHICH ARE NOT IN COMPLIANCE WITH THESE INSTRUCTIONS WILL BE
REJECTED BY CUSTOMS.

FURTHER QUESTIONS SHOULD BE DIRECTED AS FOLLOWS:

COTTON QUESTIONS - DICK CRICHTON (202) 927-0162
COLLECTIONS/CF 7501 - SUSAN LANDRY (202) 927-0418
ABI UPDATES - IRV FISHER (202) 927-0241
COTTON FEE PROGRAM - CRAIG SHACKELFORD (USDA) (202) 720-2259

WILLIAM J. LUEBKERT

Referenced By

CSMS #92-000358