CSMS Message: 92-000238

TO : ALL ABI BROKERS.
FROM : FRANCIS CROWE

SUBJECT : VRA-NEW MACHINE TOOL VRAS

DATE : 07/27/92

2209061
JULY 27, 1992

CATEGORY: MET SPE-2-07-CO:TR:T FRC

TO: BULLETIN BOARD OTO5, BROKERS

FROM: ACTING DIRECTOR, OFFICE OF TRADE OPERATIONS

RE: NEW MACHINE TOOL VRAS

PASS TO: INTERESTED PARTIES SUCH AS NON-ABI BROKERS AND
IMPORTERS

1. SUMMARY: NEW VOLUNTARY RESTRAINT AGREEMENTS (VRAS) WERE
REACHED WITH JAPAN AND TAIWAN FOR THE TERM JANUARY 1, 1992 -
DECEMBER 31, 1993. THIS INSTRUCTION CONTAINS ENTRY REQUIREMENTS
FOR COVERED PRODUCTS EXPORTED ON OR AFTER JULY 1, 1992. IT ALSO
CONTAINS REVISED MONITORING INSTRUCTIONS. COVERAGE HAS BEEN
MODIFIED FROM PAST VRAS. IN ADDITION, TAIWAN WILL USE A
DIFFERENT FORM UNDER THE NEW VRAS, AN "EXPORT PERMIT" RATHER THAN
THE EXPORT LICENSE USED PREVIOUSLY.

2. ATTACHMENT A CONTAINS UPDATED LISTING OF ALL HTS PROVISIONS
BEING MONITORED UNDER THE VRA PROGRAM. THE PROVISIONS, WITH THE
EXCEPTION OF THE PARTS, ARE BEING MONITORED REGARDLESS OF COUNTRY
OF ORIGIN. PARTS ARE MONITORED IF FROM JAPAN OR TAIWAN ONLY.
THIS LISTING SUPERSEDES PREVIOUS LISTINGS AND IS EFFECTIVE
IMMEDIATELY.

3. IN ADDITION TO MONITORING, MACHINE TOOLS EXPORTED FROM JAPAN
AND TAIWAN ON OR AFTER JULY 1, 1992, IN ASSEMBLED AND UNASSEMBLED
FORM, CLASSIFIED IN THE PROVISIONS SHOWN IN ATTACHMENT A AND
DENOTED BY THE SYMBOL J OR T, REQUIRE THE PRESENTATION OF A
VALID, ORIGINAL EXPORT CERTIFICATE FROM JAPAN (SYMBOL J) OR AN
ORIGINAL EXPORT PERMIT ISSUED BY THE BOARD OF FOREIGN TRADE OF
TAIWAN (SYMBOL T), FOR THE FOLLOWING TRANSACTIONS:

A. ENTRY INTO THE CUSTOMS TERRITORY OF THE UNITED STATES FOR
CONSUMPTION, AND WITHDRAWAL FROM WAREHOUSE FOR CONSUMPTION;

B. ENTRY UNDER TEMPORARY IMPORTATION BOND;

C. ADMISSION INTO A FOREIGN TRADE ZONE.

NOTE: (1) IF A VRA PRODUCT ORIGINALLY ADMITTED TO A FOREIGN
TRADE ZONE IS SUBSEQUENTLY ENTERED FOR CONSUMPTION INTO
THE CUSTOMS TERRITORY OF THE UNITED STATES, AN ADDITIONAL
PERMIT/CERTIFICATE IS NOT NEEDED.

(2) SHIPMENTS ENTERED INTO A BONDED WAREHOUSE DO NOT
REQUIRE A PERMIT/CERTIFICATE UNTIL THEY ARE WITHDRAWN FOR
CONSUMPTION. NOTE THAT FOR WITHDRAWALS FROM WAREHOUSE
FOR CONSUMPTION, THE SPLITTING OF PERMITS/CERTIFICATES IS
NOT ALLOWED. THUS, IF FEWER THAN THE NUMBER OF
PERMITTED/CERTIFICATED MACHINES IS WITHDRAWN ON AN ENTRY,
THE PERMIT/CERTIFICATE WILL BE CONSIDERED TO BE
COMPLETELY USED AT THAT TIME. HOWEVER, ONLY THE ACTUAL
NUMBER OF MACHINES ENTERED WILL BE COUNTED AGAINST
RESTRAINT LEVELS. TO ENSURE THAT THE PROPER NUMBER ARE
CHARGED, THE PERMIT/CERTIFICATE SHOULD BE ANNOTATED TO
INDICATE THE NUMBER OF MACHINES ENTERED IF FEWER THAN THE
PERMITTED/CERTIFICATED NUMBER.

(3) CERTAIN COMPONENTS, WHILE PROPERLY CLASSIFIED UNDER
THE HTS AS PARTS IN THEIR IMPORTED CONDITION, MAY BE
CONSIDERED "SUBSTANTIALLY COMPLETE" MACHINE TOOLS BY THE
DEPARTMENT OF COMMERCE FOR PURPOSES OF THE AGREEMENTS.
AS SUCH, THEY MAY BE SUBJECT TO BEING COUNTED AGAINST VRA
CEILINGS AND/OR THE EXPORT PERMIT/CERTIFICATE
REQUIREMENTS. IMPORTERS ARE ENCOURAGED TO OBTAIN
GUIDANCE ON SUCH SHIPMENTS FROM THE COMMERCE DEPARTMENT
PRIOR TO IMPORTATION.

4. PERMIT/CERTIFICATE REQUIREMENTS APPLY TO COVERED MACHINE
TOOLS PRODUCED IN JAPAN OR TAIWAN WHETHER EXPORTED DIRECTLY TO
THE UNITED STATES OR INDIRECTLY THROUGH ONE OR MORE THIRD
COUNTRIES.

5. ALLOW ENTRY ONLY IF THE PRODUCT DESCRIPTION ON THE EXPORT
PERMIT/CERTIFICATE MATCHES THE CORRECT PRODUCT CATEGORY OF THE
MACHINE (E.G., MACHINING CENTER, NC MILLING MACHINE, ETC.).

6. IF MACHINE TOOLS ARE RELEASED IN VIOLATION OF THE
PERMIT/CERTIFICATE REQUIREMENT, REDELIVERY IS TO BE ORDERED
IMMEDIATELY AND A COPY OF THE REDELIVERY NOTICE SENT TO THE
OFFICE OF AGREEMENTS COMPLIANCE AT THE ADDRESS NOTED BELOW.
COMMERCE SHOULD ALSO BE ADVISED OF THE ULTIMATE DISPOSITION OF
THESE CASES. NOTE THAT THE PERMIT/CERTIFICATE REQUIREMENT
APPLIES RETROACTIVELY TO COVERED PRODUCTS EXPORTED FROM JAPAN OR
TAIWAN ON OR AFTER JULY 1, 1992, WHICH MAY HAVE ALREADY BEEN
ENTERED PRIOR TO THIS NOTICE -- WITHOUT SUBMISSION OF THE
PERMIT/CERTIFICATE. IN THESE SITUATIONS, BROKERS/ENTRY FILERS
SHOULD BE GIVEN THE OPPORTUNITY TO SUBMIT THE PERMIT OR
CERTIFICATE PRIOR TO ORDERING REDELIVERY.

7. REPORTING/INVOICING:

A. BROKERS/ENTRY FILERS: IN ADDITION TO THE ORIGINAL EXPORT
PERMIT OR CERTIFICATE WHEN REQUIRED, CONTINUE TO SUPPLY
MONITORING COPIES OF THE COMMERCIAL INVOICES AND ENTRY
SUMMARIES FOR ALL HTS PROVISIONS AS LISTED IN ATTACHMENT A --
FOR COMPLETE MACHINES, REGARDLESS OF COUNTRY OF ORIGIN; FOR
PARTS, FROM JAPAN AND TAIWAN ONLY. PLEASE NOTE THAT INVOICES
MUST PROVIDE A DETAILED DESCRIPTION OF THE MERCHANDISE IN
ACCORDANCE WITH SECTION 141.86 OF THE CUSTOMS REGULATIONS. IN
ADDITION, SECTION 141.89(A) REQUIRES THAT CERTAIN ADDITIONAL
INFORMATION MUST BE STATED. FOR EXAMPLE:

(1) MACHINE TOOLS WITH A CNC (COMPUTER NUMERICAL CONTROL),
OR FACINGS (ELECTRICAL INTERFACE) FOR A CNC MUST STATE SO.
(MILLING MACHINES WITH CNC FACINGS MUST BE CLASSIFIED AS NC
MACHINES).

(2) MACHINE TOOLS, IF USED OR REBUILT, MUST STATE SO.

(3) MACHINING CENTERS MUST STATE WHETHER OR NOT THEY HAVE AN
ATC (AUTOMATIC TOOL CHANGER). (MILLING MACHINES WITH AN ATC
OR FACINGS FOR AN ATC, ARE CLASSIFIED AS MACHINING CENTERS.)

(4) VERTICAL SPINDLE MACHINING CENTERS WITH A ATC MUST ALSO
INDICATE THE Y-TRAVEL.

(5) NC HORIZONTAL LATHES MUST INDICATE THE RATED HORSEPOWER
(OR KW RATING) OF THE MAIN SPINDLE MOTOR. USE THE
CONTINUOUS RATHER THAN THE 30 MINUTE RATING.

B. CUSTOMS OFFICERS:
(1) FORWARD ENTRY PACKAGE --COPIES OF 7501'S, COMMERCIAL
INVOICES (FOR COMPLETE MACHINES, REGARDLESS OF COUNTRY OF
ORIGIN; FOR PARTS, FROM JAPAN AND TAIWAN ONLY) AND PERMITS OR
CERTIFICATES AS REQUIRED FOR PRODUCTS FROM JAPAN AND TAIWAN --
TO THE COMMERCE DEPARTMENT. ATTACH THE ORIGINAL
PERMITS/CERTIFICATES TO THE FRONT OF THE ENTRY/INVOICE PACKAGE.
MAIL DOCUMENT PACKAGES NOT LESS THAN EVERY TWO WEEKS TO:

U.S. DEPARTMENT OF COMMERCE
OFFICE OF AGREEMENTS COMPLIANCE
ROOM 7866
14TH STREET AND CONSTITUTION AVENUE, N.W.
WASHINGTON, D.C. 20230

(2) CONTINUE WEEKLY MONITORING REPORTS, BUT FOR TAIWAN ONLY.
NEGATIVE REPORTS ARE REQUIRED. ONLY THOSE PRODUCTS SUBJECT TO
THE ENTRY PERMIT REQUIREMENT (DENOTED WITH A "T" IN ATTACHMENT
A) NEED BE REPORTED. INCLUDE THE FOLLOWING IN THE REPORT:
(A) ENTRY NUMBER/DISTRICT-PORT CODE

(B) HTS NUMBER

(C) EXPORT PERMIT NUMBER

(D) NUMBER OF UNITS

THE INFORMATION FOR EACH WEEK IS TO BE REPORTED TO THE COMMERCE
DEPARTMENT PREFERABLY BY FAX, NOT LATER THAN THE END OF THE
FIRST BUSINESS DAY OF THE FOLLOWING WEEK. THESE REPORTS SHOULD
BE DIRECTED TO MARGARET GOODEN. THE FAX NUMBER IS (202) 377-
1388. TELEPHONE REPORTS WILL BE ACCEPTED AT (202) 377-0193.

8. ANY QUESTIONS REGARDING THIS MATTER SHOULD BE DIRECTED TO
FRANK CROWE OF THE TEXTILES AND METAL PRODUCTS BRANCH AT (202)
927-0164 OR TO THE FOLLOWING DEPARTMENT OF COMMERCE CONTACTS:

MARGARET GOODEN (TAIWAN): (202) 377-0193
JACQUELINE WALLACE (JAPAN):(202) 377-1394
STEPHEN DILLON (JAPAN): (202) 377-5811
HELEN KRAMER (TEAM LEADER):(202) 377-0405

ATTACHMENT A-MACHINE TOOL VRA COVERAGE

MACHINING CENTERS
8457.10.0005 (J)(T)
8457.10.0015 (J)(T)
8457.10.0025 (J)(T)
8457.10.0035 (J)(T)
8457.10.0045 (J)(T)

LATHES
8458.11.0005
8458.11.0010 (J)(T)
8458.11.0030 (J)(T)
8458.11.0050 (J)(T)
8458.11.0090 (J)(T)
8458.19.0010/0020/0030/0050/0070 /0090
8458.91.1040
8458.91.1060 (J)(T)
8458.91.1080 (J)(T)
8458.91.5040
8458.91.5050 (J)(T)
8458.91.5070 (J)(T)
8458.99.1010/1050
8458.99.5030/5060/5090

COMBINATION BORING-MILLING
8459.31.0010/0040/0070
8459.39.0040/0050

BORING, MILLING
8459.51.0040
8459.51.0080 (T)
8459.59.0010/0020/0030
8459.61.0040
8459.61.0080 (T)
8459.69.0010/0020/0050/0070/0090

SHEARING, PUNCHING
8462.31.0040
8462.31.0080 (J)
8462.39.0010/0020/0050
8462.41.0040
8462.41.0080 (J)
8462.49.0010/0020/0050

NUMERICAL CONTROLS
8537.10.0030

PARTS: FROM JAPAN AND TAIWAN ONLY
8466.93.1060
8466.93.7080

WILLIAM J. LUEBKERT

Referenced By

CSMS #93-000928