CSMS Message: 94-000992

Title:REPUBLIC OF PALAU
Date:1994-10-05
To:abi
Links:previous, next

TO : ALL ABI BROKERS.

FROM : ROBYN DAY

SUBJECT : TRA-REPUBLIC OF PALAU

DATE : 09/30/94

4272071
SEPTEMBER 29, 1994

CATEGORY: TRA CO:TO:TF:TP RD

TO : REGIONAL DIRECTORS FOR COMMERCIAL OPERATIONS, DISTRICT,
AREA AND PORT DIRECTORS

FROM : DIRECTOR, OFFICE OF TRADE OPERATIONS

SUBJECT: DESIGNATION OF THE REPUBLIC OF PALAU UNDER THE COMPACT
OF FREE ASSOCIATION

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

BACKGROUND:

ON SEPTEMBER 27, 1994, PRESIDENT CLINTON SIGNED PRESIDENTIAL
PROCLAMATION 6726 (59 FEDERAL REGISTER 49777), PLACING INTO FORCE
AND EFFECT THE COMPACT OF FREE ASSOCIATION WITH THE REPUBLIC OF
PALAU. ON JULY 15, 1994, THE GOVERNMENT OF THE UNITED STATES AND
THE GOVERNMENT OF THE REPUBLIC OF PALAU AGREED, PURSUANT TO
SECTION 411 OF THE COMPACT OF FREE ASSOCIATION, THAT AS BETWEEN
THE UNITED STATES AND THE REPUBLIC OF PALAU, THE EFFECTIVE DATE
OF THE COMPACT SHALL BE OCTOBER 1, 1994. THE COMPACT IS TO ENTER
INTO FORCE ON OCTOBER 1, 1994, BETWEEN THE UNITED STATES AND THE
REPUBLIC OF PALAU, AND PALAU WILL THEREAFTER BE SELF-GOVERNORING
AND NO LONGER SUBJECT TO THE TRUSTEESHIP.

ACTION:

1. EFFECTIVE AT 12:01 A.M. E.S.T, ( 1:01 P.M. IN PALAU),
OCTOBER 1, 1994, ARTICLES FROM THE REPUBLIC OF PALAU ENTERED
OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION ARE ACCORDED THE
BENEFITS DESIGNATED FOR COUNTRIES UNDER THE COMPACT OF FREE
ASSOCIATION.

2. GENERAL NOTE 10 OF THE HTS OUTLINES THE SPECIFIC
REQUIREMENTS TO QUALIFY FOR DUTY-FREE TREATMENT AS A PRODUCT
OF THE FREELY ASSOCIATED STATES. REFER TO GENERAL NOTE 10
(D), FOR THOSE PRODUCTS TO WHICH DUTY-FREE TREATMENT SHALL
NOT APPLY AND WHICH ARE DUTIABLE AT THE COLUMN 1 RATES OF
DUTY. IT IS EXPECTED THAT GENERAL NOTE 10 WILL EVENTUALLY
BE AMENDED TO SHOW PALAU AS A FREELY ASSOCIATED STATE.

3. THE SPECIAL PROGRAM INDICATOR (SPI) FOR ARTICLES CLAIMING
DUTY-FREE STATUS UNDER THE FREELY ASSOCIATED STATES IS THE
LETTER "Z". IN THE AUTOMATED COMMERCIAL SYSTEM UNDER THE
FUNCTION CODE RFJL THE LETTER "Z" WILL APPEAR IN THE
DESIGNATED SPECIAL COLUMN FOR THE REPUBLIC OF PALAU. THIS
SPI DOES NOT APPEAR IN THE HTS SPECIAL DUTY RATE COLUMN, BUT

MUST BE USED ON ALL CUSTOMS DOCUMENTATION WHEN MAKING A
DUTY-FREE CLAIM UNDER THE COMPACT OF FREE ASSOCIATION.
DUTY-FREE CLAIMS ON ENTRY SUMMARIES NOT USING THE DESIGNATED
SPI WILL NOT BE ALLOWED.

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

PHILIP METZGER