CSMS Message: 93-000515

Title:CFTA SNAPBACK
Date:1993-05-27
To:abi
Links:previous, next

TO : ALL ABI BROKERS.

FROM : JUDY SCHOENY

SUBJECT : CFTA SNAPBACK

DATE : 05/26/93

3137071
MAY 17, 1993

CATEGORY: CFT

TO : BROKERS AND IMPORTERS

FROM : DIRECTOR
OFFICE OF TRADE OPERATIONS

RE : CANADIAN FREE TRADE AGREEMENT (CFTA) SNAPBACK PROVISION

BACKGROUND:

UNDER ARTICLE 702 OF THE CFTA, THE UNITED STATES AND CANADA
AGREED TO MAINTAIN A CONDITIONAL SNAPBACK TARIFF MECHANISM FOR A
20-YEAR PERIOD TO PROTECT AGAINST UNUSUALLY LOW-PRICED IMPORTS OF
CERTAIN FRESH FRUITS AND VEGETABLES.

THE U.S. CUSTOMS SERVICE'S AUTOMATED COMMERCIAL SYSTEM (ACS)
IS USED TO COLLECT DATA NEEDED TO MONITOR CANADIAN IMPORT PRICES.
CUSTOMS EXTRACTS THE APPROPRIATE DATA AND FORWARDS THE
INFORMATION TO THE U.S. DEPARTMENT OF AGRICULTURE (USDA). SINCE
THE IMPLEMENTATION OF THE CFTA, THE USDA HAS COMPLAINED ABOUT THE
TIMELINESS OF THE DATA BECAUSE CUSTOMS CANNOT EXTRACT THE
INFORMATION UNTIL THE ENTRY SUMMARY IS ACCEPTED (USUALLY 10
WORKING DAYS AFTER RELEASE OF THE MERCHANDISE).

USDAHAS NOW REQUESTED THAT CUSTOMS PROVIDE THE INFORMATION
IN A MORE TIMELY FASHION. RATHER THAN GO TO A SYSTEM REQUIRING
"LIVE" ENTRIES FOR THIS MERCHANDISE, WE AREPROPOSING A CHANGE IN
THE EXTRACTION PROCESS THAT WILL REQUIRE THE COOPERATION OF
BROKERS AND IMPORTERS USING THE AUTOMATED BROKER INTERFACE (ABI)
TO TRANSMIT ENTRY SUMMARY INFORMATION. WE ARE PROPOSING THAT WE
PROVIDE USDA WITH A DAILY EXTRACT OF ENTRY SUMMARIES IN "ABI
ACCEPTED STATUS," RATHER THAN AN EXTRACT OF ENTRY SUMMARIES IN
"CUSTOMS ACCEPTED STATUS." THIS MEANS WE WILLEXTRACT
INFORMATION BEFORE CUSTOMS ACCEPTS THE SUMMARY.

OUR RESEARCH HAS SHOWN THAT ON THE AVERAGE, SUMMARY
INFORMATION ON THIS MERCHANDISE IS TRANSMITTED ON THE SIXTH DAY
FOLLOWING RELEASE. IN ORDER TO COMPLY WITH USDA'S REQUEST, WE
AREREQUESTING THAT BROKERS/IMPORTERS TRANSMITTING SUMMARY
INFORMATION VIA ABI FOR THESUBJECT COMMODITIES DO SO NOT LATER
THAN THE THIRD DAY FOLLOWING RELEASE OF THE MERCHANDISE. WHILE
THESE EARLIER TRANSMISSIONS ARE VOLUNTARY, WE WILL HAVE THE ACS
CLIENT REPRESENTATIVES MONITOR COMPLIANCE WITH THIS REQUEST. IF
WE ARE STILL UNABLE TO MEET THE TIME RESTRAINTS IMPOSED BY THE
USDA, WE WILL BE FORCED TO IMPLEMENT "LIVE" ENTRY REQUIREMENTS.

SYSTEM QUESTIONS REGARDING THIS MESSAGE MAY BE DIRECTED TO
YOUR CLIENT REPRESENTATIVE. OPERATIONAL QUESTIONS MAY BE
DIRECTED TO JUDY SCHOENY AT (202) 927-0597.

PHILIP METZGER

Referenced By

CSMS #93-000567