CBP's Interim Rule on the U.S.-Chile FTA (Part IV - Export Requirements)

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

This is Part IV of a multi-part series of summaries on this interim rule, and covers the Export Requirements (19 CFR 10.430 - 19 CFR 10.431) in new Subpart H ('U.S.-Chile Free Trade Agreement').

(See ITT's Online Archives or 03/08/05, 03/09/05, and 03/10/05 news, 05030805, 05030905, and 05031005, for Parts I-III.)

Certification of Origin Signed by U.S. Exporter or Producer to Be Submitted Upon Request to CBP

New 19 CFR 10.430(a) states that an exporter or producer in the U.S. that signs a certification of origin for a good exported from the U.S. to Chile must provide a copy of the certification (or such other medium or format approved by the Chile customs authority for that purpose) to CBP upon request.

Notification of errors in certification. According to new 19 CFR 10.430(b), an exporter or producer in the U.S. who has completed and signed a certification of origin, and who has reason to believe that the certification contains or is based on information that is not correct, must immediately after the date of discovery of the error notify in writing all persons to whom the certification was given by the exporter or producer of any change that could affect the accuracy or validity of the certification.

U.S. exporter/producer must maintain related records for 5 years. New 19 CFR 10.430(c)(1) states that an exporter or producer in the U.S. that signs a certification of origin for a good exported from the U.S. to Chile must maintain in the U.S., for a period of at least five years after the date the certification was signed, all records and supporting documents relating to the origin of a good for which the certification was issued, including records and documents associated with:

The purchase of, cost of, value of, and payment for, the good;

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

Where appropriate, the production of the good in the form in which the good was exported.

According to new 19 CFR 10.430(c)(2), such records must be maintained in accordance with the Generally Accepted Accounting Principles applied in the country of production and in the case of exporters or producers in the U.S. must be maintained in the same manner as provided in 19 CFR 163.5.

Records must be available to CBP port director, other officers. New 19 CFR 10.430(c)(3) indicates that for purposes of determining compliance with the provisions of 19 CFR Part 10, the exporter's or producer's records that are required to be maintained must be stored and made available for examination and inspection by the port director or other appropriate CBP officer in the same manner as provided in 19 CFR Part 163.

Penalties May Be Imposed if U.S. Exporter or Producer Fails to Comply with Subpart H

According to new 19 CFR 10.431, the port director may apply such measures as the circumstances may warrant where a U.S. exporter or producer fails to comply with any requirement of Subpart H in 19 CFR Part 10. Such measures may include the imposition of penalties pursuant to 19 USC 1508(g) for failure to retain records required to be maintained under new 19 CFR 10.430.

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

The regulatory text contains the phrase "requirement of this part." However, the explanatory text of the interim rule refers to "requirement of subpart H, part 10" to 19 CFR.

- 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