CSMS Message: 93-000560

TO : ALL ABI BROKERS.
FROM : FRANK CROWE

SUBJECT : VRA-MACHINE TOOL REQUIREMENTS

DATE : 06/10/93

3161061
JUNE 10, 1993

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

TO: BULLETIN BOARD OTO5, BROKERS

FROM: DIRECTOR, OFFICE OF TRADE OPERATIONS

RE: MACHINE TOOL VRAS--CLARIFICATION OF REQUIREMENTS FOR USED
MACHINING CENTERS AND WAREHOUSE WITHDRAWALS

REFERENCE: HEADQUARTERS MESSAGE 2209061, JULY 27, 1992
(ADMINISTRATIVE MESSAGE 92-0238, JULY 27, 1992)

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

SUMMARY: THIS MESSAGE CONTAINS A CLARIFICATION OF THE PROVISIONS
OF THE MACHINE TOOL VRAS AS THEY PERTAIN TO PRODUCTS WITHDRAWN
FROM WAREHOUSE FOR CONSUMPTION AND THE ENTRY OF USED MACHINING
CENTERS.

BACKGROUND: WHEN THE PREVIOUS VRAS EXPIRED ON DECEMBER 31, 1991,
LICENSING PROVISIONS WERE TERMINATED UNTIL NEW VRAS WERE
REESTABLISHED IN JUNE OF 1992. MESSAGE 2209061 CONTAINED
INSTRUCTIONS CONCERNING ENTRY REQUIREMENTS FOR CURRENT SHIPMENTS
OF PRODUCTS COVERED BY THE NEW VRAS AT THE TIME OF
IMPLEMENTATION--PRODUCTS EXPORTED ON OR AFTER JULY 1, 1992.
HOWEVER, QUESTIONS HAVE BEEN RAISED CONCERNING THE LICENSING
REQUIREMENTS FOR CERTAIN OTHER PRODUCTS EXPORTED PRIOR TO JULY 1,
1992, BUT ENTERED ON OR AFTER THAT DATE--VRA PRODUCTS WHICH HAD
BEEN PLACED IN BONDED WAREHOUSES AND USED MACHINING CENTERS (THE
ONLY TYPE OF USED MACHINE TOOLS SUBJECT TO LICENSING UNDER THE
VRAS). THIS MESSAGE CLARIFIES THE INTENT OF THE AGREEMENTS WITH
RESPECT TO THOSE PRODUCTS.

ACTION:

1. THE MACHINE TOOL VRAS SIGNED ON JUNE 30, 1992, EXTENDED THE
PROVISIONS OF THE PREVIOUS VRAS, PROVIDING CONTINUOUS VRA
COVERAGE FOR MACHINE TOOLS EXPORTED FROM JAPAN OR TAIWAN ON OR
AFTER JANUARY 1, 1987, MAKING SUCH PRODUCTS SUBJECT TO LICENSING
(ALTHOUGH LICENSES HAVE NOT ALWAYS BEEN REQUIRED, SUCH AS IN THE
FIRST HALF OF 1992). EVEN THOUGH THE INSTRUCTIONS CONTAINED IN
MESSAGE 2209061 ADDRESSED MACHINE TOOLS "EXPORTED FROM JAPAN AND
TAIWAN ON OR AFTER JULY 1, 1992," EXPORT CERTIFICATES/PERMITS ARE
STILL REQUIRED FOR CERTAIN VRA PRODUCTS EXPORTED FROM JAPAN AND
TAIWAN ON OR AFTER JANUARY 1, 1987, NAMELY:

1) PRODUCTS WHICH ARE WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION
AND
2) USED MACHINING CENTERS.

2. IN ORDER TO CLARIFY THE INSTRUCTIONS CONCERNING THE
REESTABLISHMENT OF THE MACHINE TOOL VRAS WITH RESPECT TO THE
ENTRY REQUIREMENTS FOR THESE PRODUCTS, PLEASE ADD NOTE (4) TO
PARAGRAPH 3 OF THE REFERENCED MESSAGE WHICH READS:

(4) FOR PURPOSES OF THESE REQUIREMENTS, THE DATE OF
WITHDRAWAL FROM WAREHOUSE FOR CONSUMPTION OF ANY COVERED
PRODUCT FOR WHICH THE PRESENTATION OF AN EXPORT PERMIT OR
CERTIFICATE IS REQUIRED, OR THE DATE OF ENTRY/ADMISSION (THE
TRANSACTIONS LISTED IN SUBPARAGRAPHS 3A-C ABOVE) OF USED
MACHINING CENTERS (EITHER CATEGORY HAVING BEEN PHYSICALLY
EXPORTED FROM JAPAN OR TAIWAN ON OR AFTER JANUARY 1, 1987),
SHALL BE CONSIDERED THE DATE "EXPORTED FROM JAPAN AND
TAIWAN."

3. ANY QUESTIONS REGARDING THIS MATTER SHOULD BE DIRECTED TO
FRANK CROWE OF THE TEXTILES AND METAL PRODUCTS BRANCH AT (202)
927-0164.

PHILLIP METZGER

Referenced By

CSMS #93-000928