CBP's Interim Rule on the U.S.-Chile FTA (Part II - Highlights of Import Requirements)

CBP states that comments on this interim rule must be received by June 6, 2005.

This is Part II of a multi-part series of summaries on this interim rule, and "highlights" the Import Requirements (19 CFR 10.410 - 19 CFR 10.416) in new Subpart H ('U.S.-Chile Free Trade Agreement'). (See ITT's Online Archives or 03/08/05 news, 05030805, for Part I.)

Written Declaration Required When Claiming US-CFTA Preferential Treatment

New 19 CFR 10.410 states that in connection with a claim for preferential tariff treatment for an originating good under the US-CFTA, the U.S. importer must make a written declaration that the good qualifies for such treatment.

The written declaration is made by including on the entry summary, or equivalent documentation, the symbol "CL" as a prefix to the HTS subheading under which each qualifying good is classified, or by the method specified for equivalent reporting via electronic interchange.

The U.S. importer may correct the information in the written declaration by submitting a corrected declaration within 30 calendar days after the date of discovery of the error, along with a letter or other written statement to the CBP office where the original declaration was filed, and pay any duties that may be due.

Certification of Origin To Be Submitted Upon Request to CBP

New 19 CFR 10.411(a) states that an importer who claims preferential tariff treatment on a good must submit, at the request of the CBP port director, a certification that the good qualifies as originating.

Certification of Origin format. Such a certification submitted to CBP need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose.

The certification must include: specified information identifying the importer of record (if known), exporter (if different from producer), and producer (if known); a description of the good; HTS classification to six or more digits; the preference criterion; the blanket period for multiple shipments; and the following statement in substantially the following form:

"I certify that:

The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document;

I agree to maintain, and present upon request, documentation necessary to support this certification, and to inform, in writing, all persons to whom the certification was given of any changes that could affect the accuracy or validity of this certification; and

The goods originated in the territory of one or more of the parties, and comply with the origin requirements specified for those goods in the US-CFTA; there has been no further production or any other operation outside the territories of the parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good to the U.S.; and

This document consists of __ pages, including all attachments."

Responsible official or agent must sign certification. New 19 CFR 10.411(b) states that the certification of origin must be signed and dated by a responsible official of the importer, exporter, or producer; or by the authorized agent of the importer, exporter, or producer who has knowledge of the relevant facts.

Periodic review of accuracy of certifications and other records.New 19 CFR 10.412(d) states that in accordance with 19 CFR Part 163, importers are expected to establish and implement internal controls which provide for the periodic review of the accuracy of certifications or other records.

Certification is valid for 4 years from date of signing. New 19 CFR 10.413 states that a certification that is completed, signed and dated in accordance with the requirements listed in new 19 CFR 10.411 will be accepted by CBP as valid for four years from the date on which the certification was signed.

Certification not required for certain importations. New 19 CFR 10.414 indicates that (except in situations where an importation may reasonably be considered to have been carried out or planned for the purpose of evading compliance) an importer will not be required to submit a certification that the good qualifies for preferential tariff treatment for: (1) a non-commercial importation of a good; or (2) a commercial importation of a good whose value does not exceed $2,500, or the equivalent amount in Chilean currency.

Importers Claiming Preferential Treatment Must Maintain Records for 5 Years

New 19 CFR 10.415 states that an importer claiming preferential treatment for a good imported into the U.S. must maintain in the U.S., for five years after the date of importation of the good, a certification (or a copy thereof) that the good qualifies as originating, and any records and documents that the importer has relating to the origin of the good, including records and documents associated with:

1. the purchase of, cost of, value of, and payment for, the good;
2. where appropriate, the purchase of, cost of, value of, and payment for, all materials, including recovered goods and indirect materials, used in the production of the good; and;
3. where appropriate, the production of the good in the form in which the good was exported.

BP has previously referred to the US-CFTA as the UCFTA or CFTA.

- comments must be received by June 6, 2005

CBP interim rule (CBP Dec. 05-07, FR Pub 03/07/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-4156.pdf