ITA Issues Proposed Rule to Establish the "Mexican Cement Import Licensing System
The International Trade Administration (ITA) has issued a proposed rule which would add a new 19 CFR Part 360 in order to establish a Mexican Cement Import Licensing System in accordance with an agreement between Mexico and the U.S. on Trade in Cement (agreement) which settles ongoing litigation before the NAFTA and WTO dispute resolution panels, and provides for export limits for three years.
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According to the ITA, Mexican cement is defined as gray portland cement and clinker from Mexico.
(The ITA has previously stated that the agreement was scheduled to become effective April 3, 2006, provided certain specified events occurred, and will expire on March 31, 2009, at which time the ITA will revoke the antidumping (AD) duty order on Mexican cement, effective April 1, 2009, if all the terms of the agreement are complied with by interested parties.)
Licensing System Would Monitor U.S. Sub-Regional Export Limits
The ITA explains that the cement licensing system would allow it to monitor Mexico's export limits for the eight U.S. sub-regions for the agreement's three year duration. The ITA notes that the agreement applies only to cement from Mexico as defined in Section I.L. of the agreement.
Licensing System Would Cover Registration and License Issuance
The ITA's proposed rule would establish an internet-based Mexican Cement Import Licensing System that is designed to allow the ITA to gain all of the real-time information needed to meet its obligations under the agreement. The system would be comprised of two parts: (1) a registration system for cement importers, and (2) an automatic cement license issuance system.
Details of Proposed Registration System
In order to obtain an online cement import license, an importer, or the importer's agent or customs broker with a U.S. street address, would first register with the ITA and be assigned a user identification number, which would be required to log on to the licensing system. Foreign companies may obtain a user identification number if they have a U.S. address through which they may be reached (other than a P.O. box). The ITA notes that there is no fee to register.
The ITA states that it would begin registering and issuing user identification numbers at least one week prior to the implementation date of the Mexican Cement Import Licensing System. Registration is proposed to be available online as well as through a phone/fax option.
Details of the Proposed Automatic Cement License Issuance System
According to the ITA, cement import licenses would be issued to registered importers, customs brokers, or the importer's agents through an automatic Mexican Cement Import Licensing System. The above-described user identification number would be required to access the system. The ITA adds that no fees would be charged to apply for the import licenses, which would be issued automatically after the completion of the application form.
Required information. In order to obtain a license, the ITA would require the applicant to report certain information about the cement import transaction, including (partial list):
Applicant company name, address, contact name, phone number, etc.;
Importer name, exporter name, manufacturer name;
Country of origin and country of exportation;
Expected date of export, expected date of import, and expected port of entry;
U.S. Sub-Region of Final Destination: Indicate the Sub-region where either the Mexican Cement would be consumed by an affiliated company to make concrete or concrete products or the Sub-region of the first unaffiliated purchaser of the Mexican Cement.
Final Destination: Indicate the complete name and address (including county) of either the affiliated company that will consume the Mexican Cement or the first unaffiliated purchaser of the Mexican Cement. If either is not known when the import license is applied for, indicate the address (including county) where the Mexican Cement will be siloed/warehoused until the time of shipment to the first unaffiliated purchaser.
CBP entry number, if known;
Current HTS number (from Chapter 25);
Quantity (in metric tons);
Customs value (U.S. $); and
Mexican Export License Number.
Licenses could only be printed at issuance. According to the ITA, upon completion of the application form, the importer, customs broker or importer's agent would certify as to the accuracy and completeness of the information and submit the form electronically. After refreshing the page, the system would automatically issue a cement import license number, and the license form can only be printed at that time. The ITA notes that for security purposes, users will not be able to retrieve licenses from the system; however, copies may be acquired from the ITA.
Licenses could be applied for 30 days prior to import.The ITA states that license could be applied for up to 30 days prior to the expected date of importation and until the date of filing of CBP Form 7501 (see below). The cement import license would be valid for 60 days; however, import licenses that were valid on the date of importation but expired prior to filing the CBP Form 7501 would be accepted.
License Would be Required for Each Entry Summary; CBP to Issue Proposed Rule
The ITA states that the cement import license would be required for every entry summary (CBP Form 7501) submitted for covered cement products. As currently envisioned, a single license could cover multiple products as long as the importer, exporter, manufacturer, first unaffiliated customers, sub-region, final destination of the product, and country of origin and exportation are the same. Separate licenses would be required if any of this information differed. Thus, the ITA notes that a single CBP entry summary may required more than one cement import license.
According to the ITA, there is no requirement to present physical copies of the license forms at the time of submitting CBP Form 7501; however, parties must maintain copies in accordance with CBP's normal requirements.
The ITA adds that CBP intends to publish a separate proposed rule that would set forth requirements for the timely filing of the cement import license information at entry (See below for link).
(See ITA's proposed rule for additional information, including discussion of foreign trade zone entries, Mexican export licenses, availability of certain aggregate information generated under the licensing system, etc.)
(See ITT's Online Archives or 03/16/06 and 04/10/06 news, 06031625 and 06041035, for BP summary of the (1) ITA's announcement of this agreement, including a listing of U.S. sub-regions and their import limits, and (2) certain ITA notices that collectively implement portions of the Cement Agreement with respect to the AD duty order on subject merchandise from Mexico.)
-written comments must be submitted on or before 5:00 p.m. EDT on June 30, 2006
ITA Contact - Sally Gannon (202) 482-0162
ITA Proposed Rule (D/N 060316072-6072-01, FR Pub 05/31/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-8402.pdf
Cement Agreement (signed 03/06/06) available athttp://www.ia.ita.doc.gov/download/mexico-cement/cement-final-agreement.pdf
CBP Proposed Rule (FR Pub 06/01/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-8500.pdf.