CSMS Message: 99-001079

TO : ALL ABI BROKERS.
FROM : LEON HAYWARD

SUBJECT : EXPORT CERTIFICATES FOR CANADIAN SUGAR CONTAINING PRODUCTS

anTE : 12/06/1999

0340071

DECEMBER 6, 1999

FO:TP:IA LH

TO: ALL DIRECTORS, FIELD OPERATIONS
ALL PORT DIRECTORS
ALL ASSISTANT PORT DIRECTORS, TRADE

FROM: DIRECTOR, TRADE PROGRAMS
OFFICE OF FIELD OPERATIONS

PASS TO: FIELD NATIONAL IMPORT SPECIALISTS, IMPORT AND ENTRY
SPECIALISTS, QUOTA TECHNICIANS, BROKERS, IMPORTERS, AND OTHER
INTERESTED PARTIES

SUBJECT: EXPORT CERTIFICATE REQUIREMENT FOR CANADIAN ORIGIN
SUGAR-CONTAINING PRODUCTS SUBJECT TO TARIFF RATE QUOTAS

BACKGROUND: UNDER PRESIDENTIAL PROCLAMATION NO. 7235, DATED OCTOBER 7,
1999, THE UNITED STATES TRADE REPRESENTATIVE (USTR) WAS GIVEN AUTHORITY
UNDER SECTION 404(A) OF THE URUGUAY ROUND AGREEMENTS ACT (URAA) TO
ADMINISTER THE TARIFF RATE QUOTAS ON SUGAR-CONTAINING PRODUCTS AND OTHER
AGRICULTURAL PRODUCTS.

AS PART OF THE ADMINISTRATION OF THIS TARIFF-RATE QUOTA, THE USTR
PUBLISHED AN INTERIM RULE IN THE FEDERAL REGISTER ON DECEMBER 1, 1999
(64 FR 67152), WITH AN EFFECTIVE DATE OF JANUARY 31, 2000. THIS INTERIM
RULE ESTABLISHES AN EXPORT CERTIFICATE PROGRAM. UNDER THE PROGRAM,
EXPORTING COUNTRIES THAT HAVE AN ALLOCATION OF THE IN-QUOTA QUANTITY OF
SUGAR-CONTAINING PRODUCTS, AND THAT WISH TO PARTICIPATE IN THE PROGRAM,
MAY USE EXPORT CERTIFICATES FOR THOSE SUGAR-CONTAINING PRODUCTS THAT ARE
EXPORTED TO THE UNITED STATES. U.S. CUSTOMS WILL ISSUE AN INTERIM RULE
GOVERNING IMPLEMENTATION OF USTR'S EXPORT CERTIFICATE RULE IN THE NEAR
FUTURE.

ON DECEMBER 4, 1998, THE GOVERNMENTS OF THE UNITED STATES AND CANADA
ENTERED INTO A RECORD OF UNDERSTANDING. PART OF THAT RECORD OF
UNDERSTANDING INCLUDED AN AGREEMENT BY THE UNITED STATES TO REQUIRE AN
EXPORT CERTIFICATE ISSUED BY THE GOVERNMENT OF CANADA BEFORE ALLOWING AN
IMPORTER TO CLAIM THE IN-QUOTA TARIFF RATE FOR THOSE SUGAR-CONTAINING
PRODUCTS OF CANADIAN ORIGIN DESCRIBED IN ADDITIONAL U.S. NOTE 8 TO
CHAPTER 17, HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTSUS).
CANADA WILL THUS BE A PARTICIPATING COUNTRY IN THIS EXPORT CERTIFICATE
PROGRAM.

USTR HAS PROVIDED U.S. CUSTOMS WITH THE TEN HTSUS SUBHEADINGS THAT ARE
COVERED BY THIS AGREEMENT, WHICH ARE AS FOLLOWS: 1701.91.54, 1704.90.74,
1806.20.75, 1806.20.95, 1806.90.55, 1901.90.56, 2101.12.54, 2101.20.54,
2106.90.78, AND 2106.90.95. THE APPROPRIATE NATIONAL IMPORT SPECIALISTS
HAVE VERIFIED THESE SUBHEADINGS AS BEING CURRENT AND CORRECT.

EFFECTIVE FOR GOODS ENTERED OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION
ON OR AFTER JANUARY 31, 2000, IMPORTERS MUST POSSESS AN EXPORT
CERTIFICATE ISSUED BY THE GOVERNMENT OF CANADA FOR THE GOODS IN ORDER TO
RECEIVE THE IN-QUOTA RATE OF DUTY ON ALL SUGAR-CONTAINING PRODUCTS THAT
MEET THE FOLLOWING REQUIREMENTS:

* THE GOODS ARE PROPERLY CLASSIFIED UNDER ONE OF THE ABOVE HTSUS
SUBHEADINGS; AND
* BOTH THE COUNTRY OF ORIGIN AND COUNTRY OF EXPORT ARE CANADA.

THE EXPORT CERTIFICATE, TO BE ISSUED BY THE CANADIAN DEPARTMENT OF
FOREIGN AFFAIRS AND INTERNATIONAL TRADE, WILL INCLUDE A UNIQUE
IDENTIFICATION NUMBER. THE NUMBER WILL BE EIGHT DIGITS IN LENGTH, AND
MAY CONSIST OF ANY ALPHA/NUMERIC COMBINATION.

CUSTOMS WILL NOT REQUIRE THAT THE EXPORT CERTIFICATE BE FILED WITH THE
ENTRY OR WAREHOUSE WITHDRAWAL FOR CONSUMPTION. INSTEAD, THE EXPORT
CERTIFICATE IDENTIFICATION NUMBER MUST BE INCLUDED IN COLUMN 34 OF THE
CF 7501, OR ITS ELECTRONIC EQUIVALENT. THE CUSTOMS REGULATIONS WILL BE
AMENDED TO INCLUDE THE REQUIREMENT FOR EXPORT CERTIFICATES FOR
SUGAR-CONTAINING PRODUCTS UNDER HEADING "IV" OF THE APPENDIX TO PART 163
(THE INTERIM (A)(1)(A) LIST). RECORDKEEPING REQUIREMENTS UNDER 19 USC
1508 WILL APPLY TO THE EXPORT CERTIFICATES, AND THE CERTIFICATES MUST BE
MADE AVAILABLE TO U.S. CUSTOMS UPON REQUEST.

THE AUTOMATED COMMERCIAL SYSTEM (ACS) IS BEING PROGRAMMED TO ACCEPT THE
SUBMISSION OF THE EXPORT CERTIFICATE NUMBER AS PART OF THE LINE ITEM
INFORMATION TRANSMITTED BY AUTOMATED BROKER INTERFACE (ABI) FILERS.
PROGRAMMING SPECIFICATIONS WILL BE ISSUED SEPARATELY BY THE OFFICE OF
INFORMATION TECHNOLOGY.

ACTION: EFFECTIVE JANUARY 31, 2000, SUGAR CONTAINING PRODUCTS FROM
CANADA THAT ARE ENTERED OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION, AND
ARE PROPERLY CLASSIFIED UNDER THE HTSUS SUBHEADINGS LISTED ABOVE, WILL
REQUIRE AN EXPORT CERTIFICATE ISSUED BY THE GOVERNMENT OF CANADA TO
QUALIFY FOR PREFERENTIAL TARIFF TREATMENT CLAIMS SUBJECT TO A TARIFF
RATE QUOTA. THE SPECIFIC EXPORT CERTIFICATE NUMBER MUST BE RECORDED ON
THE ENTRY SUMMARY OR WAREHOUSE WITHDRAWAL FOR CONSUMPTION (CF 7501,
COLUMN 34) IN ORDER TO QUALIFY. FOR ABI ENTRIES, THE EXPORT CERTIFICATE
NUMBER MUST BE TRANSMITTED ELECTRONICALLY. FAILURE TO SUBMIT THE EXPORT
CERTIFICATE INFORMATION WILL PREVENT ABI FROM ACCEPTING ENTRIES OF
MERCHANDISE OF THE TYPE DESCRIBED ABOVE.

IMPORTERS MUST RETAIN THE EXPORT CERTIFICATES FOR CANADIAN
SUGAR-CONTAINING PRODUCTS AS REQUIRED IN THE RECORDKEEPING PROVISIONS OF
19 USC 1508(A)(1)(A), AND SUBMIT THOSE CERTIFICATES TO U.S. CUSTOMS UPON
REQUEST.

ABI FILERS WHO HAVE NOT COMPLETED REPROGRAMMING OF THEIR SYSTEMS TO
ALLOW FOR THE TRANSMISSION OF THE EXPORT CERTIFICATE NUMBER BY THE
EFFECTIVE DATE OF THIS PROGRAM WILL HAVE TO SUBMIT PAPER ENTRIES TO
QUALIFY FOR THE IN-QUOTA RATE OF DUTY, UNTIL SUCH TIME AS REPROGRAMMING
HAS BEEN COMPLETED.

QUESTIONS REGARDING THE AUTOMATED COMMERCIAL SYSTEM SHOULD BE ADDRESSED
TO MR. JAMES HALPIN AT (703) 921-7128. PLEASE ADDRESS ALL OTHER
QUESTIONS REGARDING THIS NOTICE TO MR. LEON HAYWARD AT (202) 927-9704.

/S/
ELIZABETH G. DURANT

CC: EXECUTIVE DIRECTOR, FIELD OPERATIONS
EXECUTIVE DIRECTOR, FIELD PROGRAMS

Referenced By

CSMS #99-001083