CBP Proposes to Amend 19 CFR to Include Requirements for Mexican Cement Import and Export Licensing

CBP explains that while primary responsibility for the cement product import licensing and monitoring rests with the Commerce Secretary, the Treasury Secretary (through CBP) is responsible for the promulgation and administration of regulations regarding making entry of the subject merchandise into the U.S.

Accordingly, this rulemaking would provide an appropriate regulatory basis for the collection of the required cement trade data in accordance with the proposed regulatory standards promulgated by the International Trade Administration (ITA). (See ITT's Online Archives or 06/01/06 news, 06060125, for BP summary of the ITA's proposed rule on the establishment of the Mexican Cement Import Licensing Program.)

CBP Would Require Submission of Import License Number & Original Export License

Proposed 19 CFR 12.155 would set forth the following requirements:

Import license number must be included on entry summary. The proposed rule would require the inclusion of a cement import license number on the entry summary (CBP Form 7501) at the time of filing, in the case of merchandise that is entered or withdrawn from warehouse for consumption in the customs territory of the U.S. There is no requirement to present physical copies of the import license forms at the time of submitting the CBP Form 7501; however, parties must maintain copies in accordance with CBP's applicable recordkeeping requirements. The requirement to submit the import license number to CBP on the CBP Form 7501 will go into effect when the final rule adopting this proposal becomes effective.

Original export license must be submitted with entry summary documentation. The proposed rule would also require the submission of a valid Mexican export license to CBP with the entry summary documentation, in any case in which a cement import license is required pursuant to the terms set forth in 19 CFR 360.201(d). In this case, the original would have to be submitted to CBP with the entry summary documentation.

Submitting export licenses that cover multiple shipments. According to the proposed rule, for multiple shipments at multiple ports, or multiple entries at a single port, the original Mexican export license would have to be presented to CBP with the first entry summary and a copy of the export license must be presented with each subsequent entry summary.

Shipments to foreign trade zones require import license. Additionally, all shipments of covered Mexican cement into a foreign trade zone (FTZ) will require an import license prior to the filing of the FTZ admission documents. The license must be reported on the application for FTZ admission and/or status designation (CBP Form 214) at the time of filing. As with CBP Form 7501, there is no requirement to present physical copies of the import license with CBP Form 214; however, parties must maintain copies in accordance with CBP's applicable recordkeeping requirements.

Failure to provide import license number could result in liquidated damages. The proposed rule provides that failure to timely provide the required cement import license number to CBP would constitute a breach of the terms of the importer's bond under 19 CFR 113.62 and could give rise to a claim for liquidated damages under the bond equal to the value of the merchandise involved in the default.

-written comments on proposed rule must be received by June 21, 2006

CBP Contact - Alice Buchanan (202) 344-2697

CBP Proposed Rule (USCBP-2006-0020, 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

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