CSMS Message: 94-001231

Title:GATT FACT SHEET 1
Date:1994-12-07
To:abi
Links:previous, next

TO : ALL ABI BROKERS.

FROM : ROBYN DAY

SUBJECT : TRA-GATT FACT SHEET 1

DATE : 12/07/94

5336071
DECEMBER 1, 1994

CATEGORY: GATT CO:TO:TF MS

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

FROM : DIRECTOR, OFFICE OF TRADE OPERATIONS

SUBJECT: FACT SHEET #1: 1995 HARMONIZED TARIFF SCHEDULE CHANGES
(GATT)

PASS TO: IMPORT SPECIALISTS, NATIONAL IMPORT SPECIALISTS, ENTRY
OFFICERS, INSPECTORS, OTHER INTERESTED CUSTOMS
PERSONNEL, BROKERS AND IMPORTERS

BACKGROUND:

IT IS ANTICIPATED THAT GATT WILL BE IMPLEMENTED ON
JANUARY 1, 1995. WE EXPECT TO RECEIVE THE COMPLETE INFORMATION
FROM THE INTERNATIONAL TRADE COMMISSION SOON AFTER ENACTMENT.
THE UPDATES WILL BE MADE AVAILABLE TO THE IMPORT TRADE COMMUNITY
AS SOON AS POSSIBLE BY ELECTRONIC RETRIEVAL. THE URUGUAY ROUND
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) PROVIDES FOR
THE CREATION OF TWO NEW SPECIAL PROGRAM INDICATORS (SPI'S), "K"
AND "L". THESE NEW INDICATORS (TO BE SHOWN AS A PREFIX TO THE
HARMONIZED NUMBER ON CONSUMPTION ENTRIES) ARE DESCRIBED IN TWO
PROPOSED GENERAL NOTES, TO BE ADDED TO THE 1995 HARMONIZED TARIFF
SCHEDULE OF THE UNITED STATES (HTSUS), AS PRESENTED BELOW:

1. PHARMACEUTICAL PRODUCTS: WHENEVER A RATE OF DUTY OF
"FREE" FOLLOWED BY THE SYMBOL "K" IN PARENTHESES
APPEARS IN THE "SPECIAL" SUBCOLUMN FOR A HEADING OR
SUBHEADING, ARTICLES CLASSIFIED IN SUCH PROVISION (AND
NOT DUTIABLE UNDER COLUMN 2, SHALL BE ELIGIBLE FOR
ENTRY FREE OF DUTY PROVIDED THAT SUCH ARTICLES
(INCLUDING THEIR SPECIFIED SALTS, ESTERS AND HYDRATES)
ARE LISTED IN THE PHARMACEUTICAL APPENDIX TO THE TARIFF
SCHEDULE.

2. INTERMEDIATE CHEMICALS FOR DYES: WHENEVER A RATE OF
DUTY "FREE" FOLLOWED BY THE SYMBOL "L" IN PARENTHESES
APPEARS IN THE "SPECIAL" SUBCOLUMN FOR A HEADING OR
SUBHEADING, ARTICLES CLASSIFIED IN SUCH PROVISION (AND
NOT DUTIABLE UNDER COLUMN 2, SHALL BE ELIGIBLE FOR
ENTRY FREE OF DUTY PROVIDED THAT SUCH ARTICLES ARE
LISTED IN THE INTERMEDIATE CHEMICALS FOR DYES APPENDIX
TO THE TARIFF SCHEDULE.

IN ADDITION, WE ARE ALLOWING "K#" OR "L#" TO BE ENTERED AS A
VALID COUNTRY SPECIAL PROGRAM INDICATOR IF THE FOLLOWING
CONDITIONS ARE MET:

1. THE COUNTRY OF ORIGIN MUST BE CANADA OR MEXICO,
2. THE SPI IN THE HTSUS RECORD CONTAINS A "K" OR "L"
RESPECTIVELY,
3. THE IMPORTER CLAIMS THE CANADIAN OR MEXICAN GOODS MEET
THE COUNTRY OF ORIGIN RULES UNDER NAFTA.
- 2 -

K# OR L# WILL EXEMPT THE LINE FROM THE MERCHANDISE PROCESSING FEE
(MPF) AND ALLOW FOR DUTY-FREE TREATMENT FROM CANADA. FOR MEXICO
K# OR L# FOR THE LINE ITEM WILL RETAIN THE MPF OF .19 WITH A
MINIMUM AND MAXIMUM OF $21 AND $400 RESPECTIVELY AND ALLOW FOR
DUTY-FREE TREATMENT FROM MEXICO. ENTRIES WILL BE REJECTED IF
DUTY OR A MPF IS ENTERED ON THE LINE.

ARTICLES ELIGIBLE FOR DUTY-FREE TREATMENT PURSUANT TO THE
AGREEMENT ON TRADE IN CIVIL AIRCRAFT THAT MEET THE NAFTA COUNTRY
OF ORIGIN RULES WILL USE A "C#". THIS INDICATES THE GOODS ARE
MPF EXEMPT FOR CANADA AND REMAIN AT .19 FOR IMPORTATIONS FROM
MEXICO WITH THE MINIMUM AND MAXIMUM OF $21 AND $400 RESPECTIVELY.

OTHER ARTICLES WHICH ARE ORIGINATING GOODS UNDER NAFTA
SHOULD SHOW AN SPI OF CA FOR CANADA OR MX FOR MEXICO TO RECEIVE
THE EXEMPTION FROM THE MPF FOR CANADA OR THE .19 WITH MINIMUM
AND MAXIMUM OF $21 AND $400 FOR MEXICO. THE SPI IS NECESSARY
SINCE THESE GOODS WILL RECEIVE THE MOST FAVORED NATION (MFN)
RATES WHICH DO NOT PROVIDE THE MPF REDUCED BENEFITS WITHOUT SUCH
DESIGNATION. IF THERE IS NO SPECIAL RATE OR THE SPECIAL RATE IS
SUSPENDED, THE COLUMN 1 RATES SHOULD BE USED.

OVER 10,000 CHANGES TO THE HTSUS ARE EXPECTED AND WILL
INCLUDE NEW HTSUS TARIFF NUMBERS, STAGED COLUMN 1 RATES, AS WELL
AS STAGED RATE REDUCTIONS THAT ARE PROVIDED FOR IN THE NORTH
AMERICAN FREE TRADE AGREEMENT (NAFTA), THE ISRAELI FREE TRADE
AGREEMENT, AND OTHER SPECIAL TRADE PROGRAMS.

A COMPLETE COPY OF THE 1995 HTSUS WILL ALSO BE AVAILABLE ON
MAGNETIC TAPE. TO ORDER A COPY OF THE 1995 HTSUS TAPE, AN
ORIGINAL SIGNED DISCLAIMER STATEMENT, ALONG WITH THE ORDER FORM,
MUST ACCOMPANY YOUR REQUEST. THE 1995 HTSUS WILL ALSO BECOME
AVAILABLE THROUGH THE GOVERNMENT PRINTING OFFICE (GPO). TO PLACE
ORDERS BY TELEPHONE CALL (202) 783-3238 AND REQUEST STOCK NUMBER
949-010-00000-7, FOR 1995.

IF THERE ARE ANY QUESTIONS REGARDING THIS MESSAGE, PLEASE
CONTACT THE OFFICE OF TRADE OPERATIONS AT (202) 927-0051, OR
TARIFF COMPLIANCE BRANCH AT (202) 927-0241.

PHILIP METZGER