CSMS Message: 92-000235

Title:INCREASED DUTY CANADA BEER
Date:1992-07-27
To:abi
Links:previous, next

TO : ALL ABI BROKERS.

FROM : JUDY SCHOENY

SUBJECT : CFT-INCREASED DUTY CANADA BEER

DATE : 07/24/92

2205071
JULY 24, 1992

SPE-2-CO:T:T:TA WW

CATEGORY: CFT

TO : ALL ASSISTANT REGIONAL COMMISSIONERS (COMMERCIAL
OPERATIONS), DEPUTY ASSISTANT REGIONAL COMMISSIONERS
(COMMERCIAL OPERATIONS)

FROM : ASSISTANT COMMISSIONER (COMMERCIAL OPERATIONS)

SUBJECT: CANADIAN BEER-301 SANCTIONS AGAINST BEER FROM THE
PROVINCE OF ONTARIO, CANADA.

PASS TO: IMPORT SPECIALISTS, ENTRY OFFICERS, CUSTOMS INSPECTORS
OTHER INTERESTED CUSTOMS PERSONNEL.

BACKGROUND:

THE OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE HAS
DIRECTED THE U.S. CUSTOMS SERVICE, EFFECTIVE JULY 24, 1992, TO
IMPOSE INCREASED DUTIES IN THE AMOUNT OF 50% AD VALOREM ON ALL
IMPORTS OF BEER OR MALT BEVERAGES THAT ARE THE PRODUCTS OF THE
PROVINCE OF ONTARIO, CANADA, (PROVIDED FOR IN THE HARMONIZED
TARIFF SCHEDULE OF THE UNITED STATES, SUBHEADING 2203.00.00) THAT
ARE IMPORTED, WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION, OR
ENTERED FROM A FOREIGN TRADE ZONE ON OR AFTER JULY 24, 1992. THE
HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES HAS BEEN MODIFIED
BY INSERTING THE NEW HEADING 9903.22.03., "BEER MADE FROM MALT
THE FOREGOING THE PRODUCT OF THE PROVINCE OF ONTARIO, CANADA
(PROVIDED FOR IN HEADING 2203.00.00).....50% 50%(CA)."

ACTION:

EFFECTIVE JULY 24, 1992, ALL IMPORTATIONS OF BEER OR MALT
BEVERAGES THAT ARE PRODUCTS OF THE PROVINCE OF ONTARIO, CANADA,
THAT ARE IMPORTED, WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION, OR
ENTERED FROM A FOREIGN TRADE ZONE WILL BE ASSESSED A 50% AD
VALOREM RATE OF DUTY, IN LIEU OF THE 0.9 CENT/LITER. NOTE THE
50% AD VALOREM IS IN LIEU OF THE SPECIFIC RATE OF DUTY.

IMPORT SPECIALISTS ARE TO REVIEW ALL ENTRY SUMMARIES OF CANADIAN
BEER FROM THE PROVINCE OF ONTARIO, CANADA, TO INSURE THAT ANY
DEDUCTIONS OF VALUE ARE IN ACCORDANCE WITH CUSTOMS VALUATION
PRACTICES. IN THE CASE OF ENTRIES WITH A SPECIFIC RATE OF DUTY
AND A LOW MERCHANDISE PROCESSING FEE, IT APPEARS THAT SOME
BROKERS/IMPORTERS MIGHT NOT BE AVAILING THEMSELVES OF THE
DEDUCTION OF POSSIBLE NON-DUTIABLE CHARGES INCLUDED IN THE F.O.B.
BORDER PRICES. IT SHOULD BE EXPECTED THAT FACED WITH A 50
PERCENT DUTY RATE, THESE DEDUCTIONS WOULD BE CLAIMED. THEREFORE
THEIR VALIDITY SHOULD BE SUBSTANTIATED.

THE CUSTOMS SERVICE HAS BEEN DIRECTED BY THE OFFICE OF THE U.S.
TRADE REPRESENTATIVE TO MONITOR IMPORTS OF BEER AND MALT
BEVERAGES INTO THE UNITED STATES FROM THE OTHER PROVINCES OF
CANADA. EACH DISTRICT IS TO SUPPLY THIS INFORMATION TO THE TRADE
AGREEMENTS BRANCH, OFFICE OF TRADE OPERATIONS, BY THE CLOSE OF
BUSINESS OF EACH MONDAY FOR THE PREVIOUS WEEK'S IMPORTATIONS OF
BEER AND MALT BEVERAGE AS OUTLINED BELOW:

CANADIAN BEER

PROVINCE CUSTOMS DISTRICT ENTRY NO. VOLUME(LITERS)

THIS INFORMATION CAN BE SENT BY FAX (202) 927-0708 OR BY ACS OR
BY TECS E-MAIL TO WILLIAM WAGNER.

ANY QUESTIONS REGARDING THE ABOVE SHOULD BE DIRECTED TO WILLIAM
WAGNER, TRADE AGREEMENTS BRANCH, BY CALLING (202) 927-0693.

/S/KAREN J. HIATT FOR
SAMUEL H. BANKS