CSMS Message: 96-000613

TO : ALL ABI BROKERS.

FROM : GARY ZZ-MANES

SUBJECT : SOFTWOOD LUMBER PERMIT CODES

DATE : 07/24/96

6213071
JULY 23, 1996

TO : ALL PORT DIRECTORS AND ENTRY FILERS

FROM : DIRECTOR, TRADE COMPLIANCE

SUBJECT: MODIFICATION OF VALID PERMIT CODES FOR ENTRY SUMMARY
PROCESSING OF CANADIAN SOFTWOOD LUMBER IMPORTATIONS

PASS TO: ALL IMPORT SPECIALISTS, NATIONAL AND FIELD IMPORT
SPECIALISTS, INSPECTORS, ENTRY PERSONNEL, OTHER
CONCERNED CUSTOMS EMPLOYEES, BROKERS AND
IMPORTERS

ON MAY 31, 1996, THE TRADE WAS NOTIFIED OF CERTAIN CHANGES IN THE
REPORTING REQUIREMENTS FOR ENTRY SUMMARY DOCUMENTS AND/OR THEIR
ELECTRONIC EQUIVALENT VIA ABI (SEE MSG 6152021 DATED MAY 31,
1996). ONE OF THE CHANGES CREATED PERMIT TYPES TO BE REQUIRED AT
ENTRY SUMMARY FOR CERTAIN SOFTWOOD LUMBER PRODUCTS FROM CANADA.
THESE CHANGES WERE NECESSITATED BY THE IMPLEMENTATION OF THE
U.S./CANADA SOFTWOOD LUMBER AGREEMENT OF 1996 (AGREEMENT) DATED
MAY 29, 1996, WHICH WAS EFFECTIVE APRIL 1, 1996.

AS A RESULT OF FURTHER DISCUSSIONS WITH THE OFFICE OF THE UNITED
STATES TRADE REPRESENTATIVE IT HAS BEEN DETERMINED THAT THE
AGREEMENT PRECLUDES THE USE OF PERMIT TYPE CODES "E" AND "F" AS
OUTLINED IN MESSAGE 6173071 DATED JULY 9, 1996.

THEREFORE, IN ACCORDANCE WITH THE AGREEMENT, FILERS WILL BE
REQUIRED TO PROVIDE CUSTOMS WITH A VALID PERMIT CODE FOR "ALL"
SHIPMENTS OF SOFTWOOD LUMBER THAT IS "FIRST MANUFACTURED" INTO A
PRODUCT CLASSIFIED UNDER TARIFF ITEMS 4407.10.00, 4409.10.10,
4409.10.20 AND 4409.10.90 IN THE CANADIAN PROVINCES OF ONTARIO
(XO), QUEBEC (XQ), BRITISH COLUMBIA (XC) AND ALBERTA (XA). VALID
PERMIT CODES ARE "A","B","C",OR "D". ADDITIONALLY, WHEN THE
PERMIT CODE IS "D", IT MUST BE FOLLOWED BY "01" THROUGH "20".
THIS NUMBER REPRESENTS THE QUARTER DURING WHICH THE PERMIT WAS
ISSUED OVER THE FIVE (5) YEAR LIFE OF THE AGREEMENT BEGINNING
WITH QUARTER 01 ON APRIL 1, 1996.

ABI FILERS WILL TRANSMIT THE PERMIT TYPE CODE IN POSITIONS 70
THROUGH 72 OF THE 40 RECORD. THE PERMIT TYPE CODE WILL BE PLACED
ON THE CF7501 DIRECTLY BELOW THE HTSUS ITEM NUMBER.

- 2 -

IN ACCORDANCE WITH ARTICLE II OF THE AGREEMENT, THE FOLLOWING
REPRESENTS THE PERMIT CODES AND FEE SCHEDULES FOR SOFTWOOD LUMBER
IMPORTS FROM CANADA INTO THE UNITED STATES:

1. A -- NO FEE - THE EXPORTED PRODUCT FALLS WITHIN
THE BASE AMOUNT OF 14.7 BILLION BOARD FEET;

2. B -- $50 MBF (THOUSAND BOARD FEET) - THE EXPORTED
PRODUCT FALLS BETWEEN 14.7 BILLION BOARD
FEET BUT IS NOT IN EXCESS OF 15.35 BILLION
BOARD FEET;

3. C -- $100 MBF - THE EXPORTED PRODUCT IS IN EXCESS
OF 15.35 BILLION BOARD FEET; OR

4. D -- NO FEE WHEN THE EXPORTED PRODUCT IS EXPORTED
IN EXCESS OF 14.7 BILLION BOARD FEET BECAUSE
THE AVERAGE PRICE OF THE EXPORTED PRODUCT
EXCEEDS A PRESCRIBED TRIGGER PRICE DURING
ANY QUARTERLY PERIOD.

FOR ANSWERS TO QUESTIONS ON ABI ISSUES PLEASE CONTACT YOUR ABI
CLIENT REPRESENTATIVE. FOR OPERATIONAL QUESTIONS CONTACT CARGO
CONTROL AND ENTRY AT (202)927-0510.

(SIGNED)

PHILIP METZGER