CSMS Message: 92-000667

TO : ALL ABI BROKERS.

FROM : LISA CROSBY

SUBJECT : OTH-EC DUTY SANCTIONS

DATE : 11/19/92

3314071
NOVEMBER 19, 1992

CATEGORY: OTH CO:TO:T:T LAC

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

FROM : ASSISTANT COMMISSIONER
OFFICE OF COMMERCIAL OPERATIONS

RE : INCREASED DUTIES ON RAPESEED, WINES AND WHEAT GLUTEN
FROM THE EUROPEAN COMMUNITY

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

BACKGROUND:

THERE HAS BEEN A DISPUTE BETWEEN THE UNITED STATES AND THE
EUROPEAN COMMUNITY (EC) FOR APPROXIMATELY FIVE YEARS OVER THE
EC'S SUBSIDIZATION OF OILSEEDS. ATTEMPTS TO RESOLVE THIS DISPUTE
THROUGH NEGOTIATION HAVE FAILED AND ON NOVEMBER 5, 1992, THE
UNITED STATES TRADE REPRESENTATIVE (USTR) ANNOUNCED THAT DUTIES
ON CERTAIN PRODUCTS FROM THE EC WOULD BE INCREASED TO 200
PERCENT. THIS ACTION IS BEING TAKEN TO ENFORCE UNITED STATES
RIGHTS UNDER THE GATT; THE AMOUNT OF TRADE AFFECTED BY THIS
INITIAL ACTION IS EQUIVALENT TO 30 PERCENT OF THE VALUE OF THE
BURDEN OR RESTRICTION IMPOSED UPON UNITED STATES COMMERCE BY THE
EC'S OILSEED SUBSIDIES. THE SUBSTANCE OF THE NOVEMBER 5
ANNOUNCEMENT WAS PUBLISHED IN THE FEDERAL REGISTER ON NOVEMBER
12, 1992.

IF THE EC CONTINUES TO DENY RIGHTS AND BENEFITS TO THE U.S.,
THE TRADE REPRESENTATIVE WILL INCREASE DUTIES UPON ADDITIONAL EC
PRODUCTS. ADDITIONAL PRODUCTS MAY BE CHOSEN FROM THE ORIGINAL
LIST PUBLISHED ON JUNE 12, 1992, OR FROM A SUPPLEMENTAL LIST
PUBLISHED ON NOVEMBER 12, 1992.

ACTION

1. EFFECTIVE WITH RESPECT TO ARTICLES OF THE EUROPEAN COMMUNITY
ENTERED, OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION, ON OR
AFTER DECEMBER 5, 1992, THE HTS IS MODIFIED BY ADDING NEW
NOTE 7 TO SUBCHAPTER III OF CHAPTER 99 TO THE HTS AS
FOLLOWS:

"7. FOR THE PURPOSES OF SUBHEADING 9903.24.03, THE
EXPRESSION WINE (UNDERLINED) MEANS:

(A) ANY OF THE WINES LISTED BELOW:

ALBA ALBANA DI ROMAGNA
ALBANA ALCAMO
ALELLO ALIGOTE
ALVARINHO ANJOU COTEAUX DE LA LOIRE
ANSONICA ARDENGHESCA
AVELEDA BARSAC
BATARD - MONTRACHET BEAUJOLAIS BLANC
BERGERAC COTE DE SAUSIGNAC BERNKASTELER DOCTOR (DOKTOR)
BIANCHELLO DEL METAURO BIANCHELLO DEL METAURO
BIANCO DI CUSTOZA BIANCO
BIANCO VERGINE VALDICHIANA BIENVENUE-BATARD-MONTRACHET
BIJELO BLANC FUME DE POUILLY
BLANC BLANCO
BLANQUETTE DE LIMOUX BOMBINO BIANCO
BONNEZEAUX BORDEAUX BLANC
BOURGOGNE ALIGOTE BRUCELLAS
CADILLAC CALUSO
CARRICANTE CASA DA SEARA
CASAL MENDES CASTEL DEL MONTE BIANCO
CERONS CHABLIS
CHARDONNAY CHARLEMAGNE
CHASSAGNE-MONTRACHET CHASSELAS
CHATEAU GRILLETT CHEVALIER-MONTRACHET
CINQUE TERRE CLAIRETTE DE BELEGARDE
CLAIRETTE DE DIE CLAIRETTE DU LANGUEDOC
CONDRIEU CONTON LANGUETTES
CORONATA CORTESE
CORTESE DI GAVI CORTON POUEGETS
CORTON CHARLEMAGENE CORTON
CORVO BIANCO COTEAUX DU LAYON
COTEAUX DE L'AUBANCE CHAUME COTEAUX DE L'AUBANE
COTEAUX DE LA LOIRE COTES DE BLAYE
COTES DE BORDEAUX SAINT-MACAIRE
COTES DE MONTRAVEL CREPY
CROITS BATARD MONTRACHET EHRENFEISER
ENTRE DEUX MERS ERBALUCE DI CALUSO
ERBALUCE ETNA BIANCO
ETOILE FABERREBE
FEHER FEHERBOR
FORSTER JESUITENGARTEN FRANCIACORTA PINOT
FRANO DI AVELLINO FRASCATI
FRASCATI SECCO FUME DE POUILLY
GAILLAC PREMIERES COTES GAILLAC
GALESTRO GAMBELLARA
GELBER MUSKATELLER GENEVRIERES
GEWURZTRAMINER GRAACHER HIMMELREICH
GRAND ROUSSILLON GRANJO
GRAVES SUPERIEURES GRECO DI TUFO
GRECO DI GERACE GRUNER SILVANER
GUTEDEL HAUT MONTRAVEL
HUXELREBE JASIERES
JAUNE JURANCON
KANZLER KERNER
L'ETOILE LACRIMA D'ARNO
LACRYMA CHRISTI LEFKOS
LIEBFRAUENMILCH LIEBFRAUMILCH
LINDOS LOCOROTONDO
LOUPIAC LUGANA
LUGANAN MACON BLANC
MAMERTINO MARINO
MARTINA FRANCA MARTINA
MEURSAULT MITTELMOSEL
MONBAZILLAC MONO-MUSKAT
MONTAGNY MONTECARLO BIANCO
MONTEFIASCONE MONTEROSSO VAL D'ARDA
MONTESCUDIO MONTLOUIS
MONTRACHET MONTRAVEL
MORIO-MUSKAT MOSCATO DI NOTO
MOSCATO DI PANTELLERIA MOSCATO D'ASTI
MOSCATO DI SIRACUSA MOSEL
MOSSELLE MULLER THURGAU
MULLER-THURGAU MUSCADET COTEAU DE LA LOIRE
MUSCADET MUSCADET DE SEVRE ET MAINE
MUSCAT D'ALSACE MUSCAT OF SAMOS
MUSKATELLER NURAGUS
NURAGUS DI CAGLIARI OCKFENER BOCKSTEIN
OPTIMA ORTEGA
ORVIETO ORVIETO SECCO
PACHERENC DU VIC BILH PACHERENC
PALLINI PAMPANUTO
PARRINA PERRIERE
PETIT CHABLIS PICPOUL DE PINET
PINOT BIANCO PINOT CHARDONNAY
PINOT BLANC PINOT DELL OL TREPO
PINOT GRIGIO PINOT GRIS
PLATINO POUILLY SUR LOIORE
POUILLY VINZELLES POUILLY FUME
POUILLY-FUISSE POUILLY-LOCHE
PROSECCO DE CONEGLIANO PROSECCO
PROSECCO DI CONGLIANO PROSECCO DI VALDOBBIADENE
PULIGNY MONTRACHET QUARTS DE CHAUME
QUINCY RASTEAU
RECIOTO DI SOAVE RIBOLLA
RIESLING DEL TRENTINO RIESLING
RIVESALTES ROSETTE
ROUSETTE RUCHOTTES
RULANDER SAINT FOY BORDEAUX
SAINT VERAN SAINT PERAY
SAINTE CROIX DU MONT SANCERRE
SANSEVERO SANTA HELENA
SANTA LAURA SAUSSIGNAC
SAUTERNES
SAUVIGNON DEI COLLI ORIENTALI DEL FRIULI
SAUVIGNON DELL'ISONZO
SAUVIGNON COLLI BOLOGNESI DI MONTE SAN PIETRO
SAUVIGNON COLLI BERCI SAVENNIERES
SCHARZ HOSBERGER SCHEUREBE
SCHWARZE KATZ SEYSSEL
SIEGERREBE SILVANER
SOAVE SYLVANER
TERLANO TOCAI
TOKAY D'ALSACE TORBATO
TOURANE-AZAY-LE-RIDEAU TRABENSE
TRAMINER AROMATICO DEL TRENTINO
TRAMINER TREBBIANO DI ROMAGNA
TREBBIANO TREBBIANO VAL TREBBIA
TREBBIANO DI ABRUZZO VELLETRI
VERDICCHIO DI JESI VERDICCHIO
VERDICCHIO DI MATELICA
VERDICCHIO DEI CASTELLI DI JESI
VERDUZZO VERDUZZO DEL PIAVE
VERMENTINO LIQURE VERNACCIA DI SAN GIMIGNANO
VIN JAUNE VIN BLANC
VIN SANTO VIN DE PAILLE
VOUVRAY
WEIB RIESLING WEIBER BURGUNDER
WEISSBURGUNDER OR WEIBBURGUNDER
WEISSER GUTEDEL OR WEIBER GUTEDEL
WEISSWEIN OR WEIBWEIN ZAGAROLO
ZELLER SCHWARZE KATZ; OR

(B) ANY WINE CONTAINING LESS THAN 20 PPM OF ANTHOCYANIN
COMPOUNDS."

NOTE:
(SOME OF THESE WINE NAMES ARE SPELLED WITH LETTERS OR
ACCENTS THAT CANNOT BE REPRODUCED IN EMAIL. ACCORDINGLY,
ALL PORTS OF ENTRY ARE STRONGLY URGED TO OBTAIN COPIES OF
THE NOTICE PUBLISHED IN THE FEDERAL REGISTER ON NOVEMEMBER
12 AND TO USE THE LIST CONTAINED IN THAT NOTICE WHEN
DETERMINING WHETHER TO ASSESS INCREASED DUTIES.)

2. EFFECTIVE DECEMBER 5, 1992, THE HTS IS MODIFIED BY ADDING IN
NUMERICAL SEQUENCE THE FOLLOWING SUBHEADINGS TO SUBCHAPTER
III OF CHAPTER 99 TO THE HTS. BRACKETED MATTER IS INCLUDED
TO ASSIST IN THE UNDERSTANDING OF MODIFICATIONS. THE
FOLLOWING SUPERSEDES MATTER IN THE HTS. THE SUBHEADINGS AND
SUPERIOR TEXT ARE SET FORTH IN COLUMNAR FORMAT, AND MATERIAL
IN SUCH COLUMNS IS INSERTED IN THE COLUMNS OF THE HTS
DESIGNATED "HEADING/SUBHEADING", "ARTICLE DESCRIPTION",
"RATES OF DUTY 1-GENERAL", "RATES OF DUTY 1-SPECIAL", AND
"RATES OF DUTY 2", RESPECTIVELY.

(ARTICLES THE PRODUCT OF THE
EUROPEAN COMMUNITY (BELGIUM,
DENMARK, FRANCE, THE FEDERAL
REPUBLIC OF GERMANY, GREECE,
IRELAND, ITALY, LUXEMBOURG, THE
NETHERLANDS, PORTUGAL, SPAIN,
AND THE UNITED KINGDOM:))
9903.24.01 WHEAT GLUTEN, WHETHER OR
NOT DRIED (PROVIDED FOR
IN HEADING 1109.00). . . 200% NO CHANGE NO CHANGE

9903.24.02 RAPESEED, COLZA OR
MUSTARD OIL, AND FRACTIONS
THEREOF, WHETHER OR NOT
REFINED, BUT NOT CHEMICALLY
MODIFIED (PROVIDED FOR
IN SUBHEADINGS 1514.10
OR 1514.90). . . . . . . 200% NO CHANGE NO CHANGE

9903.24.03 WINE, AS DEFINED IN U.S.
NOTE 7 OF THIS SUBCHAPTER,
NOT EFFERVESCENT, OF AN
ALCOHOLIC STRENGTH BY
VOLUME NOT OVER 14 PERCENT
VOL., IN CONTAINERS EACH
HOLDING NOT OVER 4 LITERS
(PROVIDED FOR IN
SUBHEADINGS 2204.21.50
OR 2204.29.20) . . . . . 200% NO CHANGE NO CHANGE

3. PRODUCTS SUBJECT TO THE INCREASED DUTIES SHOULD BE REPORTED ON
THE CF 7501 IN ACCORDANCE WITH STATISTICAL NOTE 1 OF CHAPTER
99 OF THE HTS AND WITH CUSTOMS DIRECTIVE 099 3550-061,
"INSTRUCTIONS FOR PREPARATION OF CF 7501," DATED SEPTEMBER 18,
1992.

4. INCREASED DUTIES ARE ONLY APPLICABLE TO COMMERCIAL SHIPMENTS.

QUESTIONS REGARDING CUSTOMS ASSESSMENT OF THESE DUTIES SHOULD
BE DIRECTED TO THE LOCAL PORT OF ENTRY OR LISA CROSBY, TRADE
AGREEMENTS BRANCH, AT (202)927-0163. QUESTIONS REGARDING THE
STATUS OF NEGOTIATIONS ON THIS ISSUE, INCLUDING WHICH ADDITIONAL
PRODUCTS MAY BE TARGETED AND WHEN, SHOULD BE DIRECT TO BENNETT
HARMAN, OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE, AT
(202)395-3074.

SAMUEL H. BANKS