CSMS Message: 92-000488

Title:FREELY ASSOCIATED STATES
Date:1992-09-28
To:abi
Links:previous, next

TO : ALL ABI BROKERS.

FROM : LISA CROSBY

SUBJECT : TRA-FREELY ASSOCIATED STATES

DATE : 09/25/92

2269071
SEPTEMBER 25, 1992

SPE-1-CO:TO:T:A RD

CATEGORY: TRA

TO : ALL ASSISTANT REGIONAL COMMISSIONERS (OPERATIONS)
REGIONAL DIRECTORS FOR COMMERCIAL OPERATIONS,
DISTRICT DIRECTORS

FROM : ACTING DIRECTOR
OFFICE OF TRADE OPERATIONS

RE : TARIFF TREATMENT REGARDING THE FREELY ASSOCIATED
STATES

PASS TO : IMPORT SPECIALISTS, INSPECTORS AND OTHER
INTERESTED PARTIES SUCH AS BROKERS AND IMPORTERS

IT HAS COME TO OUR ATTENTION THAT THERE IS SOME CONFUSION
REGARDING MERCHANDISE CLAIMING SPECIAL TARIFF TREATMENT ACCORDED
UNDER THE COMPACT OF FREE ASSOCIATION. WHEN REVIEWING ENTRY
SUMMARIES CLAIMING A REDUCTION IN DUTY FOR PRODUCTS FROM THE
FREELY ASSOCIATED STATES, GENERAL NOTE 3(C)(VIII) SHOULD BE USED
AS A REFERENCE.

BACKGROUND

PRESIDENTIAL PROCLAMATION 6030 OF SEPTEMBER 28, 1989,
SECTION 242, ESTABLISHED A COMPACT OF FREE ASSOCIATION BETWEEN
THE UNITED STATES AND THE FREELY ASSOCIATED STATES OF THE
MARSHALL ISLANDS AND THE FEDERATED STATES OF MICRONESIA. WITH
SOME EXCEPTIONS, THIS COMPACT AGREEMENT PROVIDES DUTY-FREE
TREATMENT TO MOST OF THE PRODUCTS FROM THESE COUNTRIES, EFFECTIVE
FOR ARTICLES ENTERED OR WITHDRAWN FROM WAREHOUSE ON OR AFTER
OCTOBER 18, 1989. THE CURRENT PROGRAM AS IT READS IN THE 1992
HARMONIZED TARIFF SCHEDULE WAS BASED ON MODIFICATIONS TO GENERAL
NOTE 3(C)(VIII) PROVIDED IN PRESIDENTIAL PROCLAMATIONS 6123 DATED
APRIL 26, 1990, AND 6343 DATED SEPTEMBER 28, 1991.

NOTE: THE DEPARTMENT OF STATE HAS CONFIRMED THAT THE FEDERATED
STATES OF MICRONESIA IS COMPRISED OF YAP, KOSRAE, CHUUK AND
POHNPEI.

ACTION

THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES UNDER
GENERAL NOTE 3(C)(VIII)(B) OUTLINES THE SPECIFIC REQUIREMENTS TO
QUALIFY FOR DUTY-FREE TREATMENT AS A PRODUCT OF THE FREELY
ASSOCIATED STATES.

IN PARTICULAR, PLEASE NOTE THE FOLLOWING EXCEPTIONS TO DUTY-
FREE TREATMENT LISTED UNDER GENERAL NOTE 3(C)(VIII)(D). THESE
PRODUCTS SHOULD BE DUTIABLE AT THE COLUMN 1 RATES OF DUTY:

1. TUNAS AND SKIPJACK, PREPARED OR PRESERVED, NOT IN OIL, IN
AIRTIGHT CONTAINERS WEIGHING WITH THEIR CONTENTS NOT OVER
7 KILOGRAMS EACH, IN EXCESS OF THE QUANTITY AFFORDED
DUTY-FREE ENTRY (REFER TO GENERAL NOTE (3)(C)(VIII)(C)
WHICH EXPLAINS THE TARIFF RATE QUOTA).

2. TEXTILE AND APPAREL ARTICLES WHICH ARE SUBJECT TO TEXTILE
AGREEMENTS.

3. FOOTWEAR, HANDBAGS, LUGGAGE, FLAT GOODS, WORK GLOVES AND
LEATHER WEARING APPAREL, THE FOREGOING WHICH WERE NOT
ELIGIBLE ARTICLES FOR PURPOSES OF THE GENERALIZED SYSTEM
OF PREFERENCES ON APRIL 1, 1984.

4. WATCHES, CLOCKS AND TIMING APPARATUS OF CHAPTER 91
(EXCEPT SUCH ARTICLES INCORPORATING AN OPTOELECTRONIC
DISPLAY AND NO OTHER TYPE OF DISPLAY).

5. BUTTONS OF SUBHEADING 9606.21.40 OR 9606.29.20.

THE SPECIAL PROGRAM INDICATOR FOR ARTICLES CLAIMING DUTY-FREE
STATUS UNDER THE FREELY ASSOCIATED STATES IS THE LETTER "Z". IN
THE AUTOMATED COMMERCIAL SYSTEM UNDER FUNCTION CODE RFJL THE
LETTER "Z" WILL APPEAR IN THE DESIGNATED SPECIAL COLUMN FOR THE
MARSHALL ISLANDS AND THE FEDERATED STATES OF MICRONESIA. THIS
SPECIAL PROGRAM INDICATOR DOES NOT APPEAR IN THE HARMONIZED
TARIFF SCHEDULE SPECIAL DUTY RATE COLUMN, BUT MUST BE USED WITH
ALL CUSTOMS DOCUMENTATION. DUTY-FREE CLAIMS ON ENTRY SUMMARIES
NOT USING THE SPECIAL PROGRAM INDICATOR SHOULD BE DISALLOWED.

PERSONS WITH QUESTIONS REGARDING THIS NOTICE SHOULD CONTACT
ROBYN DAY, TRADE AGREEMENTS BRANCH, AT (202) 927-0123.

WILLIAM LUEBKERT