CBP's Interim Rule on the U.S.-Chile FTA (Part V - Highlights of Post-Importation Duty Refund Claims, Origin Verifications and Determinations, Etc.)

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

This is Part V of a multi-part series of summaries on this interim rule, and "highlights" Post-Importation Duty Refund Claims (19 CFR 10.440 - 19 CFR 10.442), Rules of Origin (19 CFR 10.450 - 19 CFR 10.463), and Origin Verifications and Determinations (19 CFR 10.470 - 19 CFR 10.474) in new Subpart H ('U.S.-Chile Free Trade Agreement').

(See ITT's Online Archives or 03/08/05, 03/09/05, 03/10/05, and 03/11/05 news, 05030805, 05030905, 05031005, and 05031110, for Parts I-IV.)

Importers May File Claims for US-CFTA Post-Importation Duty Refunds

New 19 CFR 10.440 states that notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the U.S. but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the procedures set forth in new 19 CFR 10.441.

Subject to the provisions of 19 CFR 10.416, CBP may refund any excess duties by liquidation or reliquidation of the entry covering the good in accordance with new 19 CFR 10.442(c).

Post-importation claim must be filed at port of entry. According to new 19 CFR 10.441(a), a post-importation claim for a refund must be filed with the director of the port at which the entry covering the good was filed.

Contents of a claim. New 19 CFR 10.441(b) states that a post-importation claim for a refund must be filed by presentation of the following (see interim rule for further details):

A written declaration stating that the good qualified as an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good;

Subject to 19 CFR 10.413, a copy of a certification that the good qualifies for preferential tariff treatment;

A written statement indicating whether or not the importer of the good provided a copy of the entry summary or equivalent documentation to any other person; and

A written statement indicating whether or not any person has filed a protest or a petition or request for reliquidation relating to the good under any provision of law.

Denial of claim. New 19 CFR 10.442(d) states that the port director may deny a claim for a refund if the claim was not filed timely, if the importer has not complied with the filing requirements of 19 CFR 10.441, if the certification submitted under 19 CFR 10.441(b)(2) cannot be accepted as valid (see 19 CFR 10.413), or if, following initiation of an origin verification under 19 CFR 10.470, the port director determines either that the imported good did not qualify as an originating good at the time of importation or that a basis exists upon which preferential tariff treatment may be denied under 19 CFR 10.470.

US-CFTA Rules of Origin

New 19 CFR 10.450 - 19 CFR 10.463 concern the US-CFTA Rules of Origin. These sections include topics such as: treatment of textile and apparel sets, regional value content, de minimis, indirect materials, packing materials and containers for shipment, etc. (See interim rule for regulatory text.)

Origin Verifications and Determinations

CBP may verify claims for US-CFTA preferential treatment.According to new 19 CFR 10.470(a), a claim for preferential treatment made under 19 CFR 10.410, including any statements or other information submitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director for any reason is prevented from verifying the claim, the port director may deny the claim for preferential treatment.

A verification of a claim for preferential treatment may involve, but is not limited to, a review of:

All records required to be made, kept, and made available to CBP by the importer or any other person under 19 CFR Part 163;

Documentation and other information regarding the country of origin of an article and its constituent materials, including, but not limited to: production records, supporting accounting and financial records, etc.; and

Evidence that documents the use of U.S. or Chilean materials in the production of the article subject to the verification, such as purchase orders, invoices, etc.

Verifications in Chile requested by CBP. According to the interim rule's explanatory text, new 19 CFR 10.471 provides that textile and apparel goods imported into the U.S. may be reviewed by Chilean authorities (at the request of CBP), regardless of whether a claim is made for preferential tariff treatment. In addition, CBP may also assist in a verification in Chile.

New 19 CFR 10.471 also provides for specific actions to be taken during and after the verification if directed by the Committee for the Implementation of Textile Agreements (CITA).

Verifications in the U.S. requested by Chilean authorities. According to the interim rule's explanatory text, new 19 CFR 10.472 provides that textile and apparel goods exported from the U.S. to Chile may be reviewed by CBP (at the request of Chilean authorities).

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