CBP Issues Instructions on Filing and Acceptance of Claims Under the Bahrain FTA (Part III)

According to CBP, the BFTA was implemented by Presidential Proclamation 8039, and is effective for goods entered or withdrawn from warehouse for consumption on or after August 1, 2006. (See ITT's Online Archives or 07/31/06 news, 06073105 for Part I of BP series of summaries of Proclamation 8039 which implemented the BFTA. Proclamation 8039 incorporated by reference ITC Publication 3830.)

This is Part III of a multi-part series of summaries highlighting CBP's instructions. See future issues of ITT for additional summaries. (See ITT's Online Archives or 08/07/06 and 08/08/06 news, 06080705 and 06080810, for Parts I and II.

Agricultural Tariff Rate Quotas (TRQs)

The BFTA provides ten quantitative restraints associated with a reduced duty rate for agricultural products such as cheese, butter, dairy products, beef, cotton, and tobacco. The Chapter 99 HTS numbers that cover the agricultural quotas include 9914.02.05 through 9914.52.40. (See ITT's Online Archives or 08/07/06 news, 06080715, for BP summary of BFTA TRQs for certain originating agricultural products.)

Quota (TPL and TRQ)

For Tariff Preference Level (TPL) goods and agricultural products subject to a TRQ, the Special Program Indicator (SPI) "BH" must be placed in front of the Heading 9914 HTS number when the entry is filed. In addition to the 9914 number, the appropriate Chapter 1-97 HTS number must be identified on the CBP form 7501. (See ITT's Online Archives or 08/07/06 news, 06080710, for BP summary of BFTA TPL for certain non-originating textiles and apparel; See ITT's Online Archives or 08/07/06 news, 06080715, for BP summary of BFTA TRQs for certain originating agricultural products.)

The Commodity Status Report, issued weekly, lists the fill rates for the TRQs and is available at http://www.cbp.gov/xp/cgov/import/textiles_and_quotas/commodity/. The past four reports are maintained on that site.

Eligible Articles (Non-Textile and Textile) / Immediate and Staged Reductions

The list of HTS item numbers that are eligible for immediate duty free treatment can be found in Annex II of Publication 3830, available at http://www.usitc.gov/tata/hts/other/rel_doc/annex/pub3830.pdf.

Information Necessary to Make a BFTA Claim

The importer may make a claim for preferential tariff treatment based on the importer's knowledge or information in the importer's possession that the good qualifies as an originating good according to the rules of origin. The importer must be prepared to submit upon CBP's request a signed declaration with the data elements outlined in Attachment A as well as manufacturing, cost and other data necessary to substantiate compliance with the BFTA. The declaration need not be in a prescribed format, may be submitted electronically and may cover a single shipment or multiple shipments of identical goods not to exceed the time period of 12 months.

Importers are required to maintain for five years after the date of importation all records relating to the importation of the good. This includes, but is not limited to, records concerning the purchase of, cost of, value of and payment for the good, the purchase of, cost of, value of and payment for all materials used in the production of the good and the production of the good in its exported form.

CBP Verification

The BFTA places the burden of substantiating the validity of the claim for preferential tariff treatment on the importer. An importer may make a claim for preferential tariff treatment based on knowledge or information in his/her possession. CBP may verify the validity of the claim and will direct inquiries for verification via a CBP Form 28, Request for Information, to the importer.

CBP may request documentation from the importer to establish the validity of the claim. Such documentation may include but is not limited to process descriptions and costs, bills of materials, invoices, and affidavits. The importer shall provide the declaration and all other materials to CBP no later than 30 days from the date of the request.

Attachment A: Data Elements for the Declaration Made Under the BFTA

Attachment A is a list of data elements for the importer/exporter/producer declaration and certification:

1. Name and address of the importer: The legal name, address, telephone and e-mail of the importer of record of the good.
2. Name and address of the exporter: The legal name, address, telephone and e-mail of the exporter of the good. (If different from the producer.)
3. Name and address of the producer: The legal name, address, telephone and e-mail of the producer of the good.
4. Description of good: The description of a good shall be sufficiently detailed to relate it to the invoice and the Harmonized System (HS) nomenclature.
5. HS tariff classification number: The HS tariff classification, to six or more digits, as specified for each good in the Rules of Origin.
6. Preference criterion: Description of operations, materials and direct cost of processing that enable the good to originate.
7. Single shipment: Provide the commercial invoice number.
8. Multiple shipments of identical goods: Provide the blanket period in "mm/dd/yyyy to mm/dd/yyyy" format. (12-month maximum.)
9. Authorized signature, company, title, telephone, fax, e-mail and declaration date: The signee must have access to the underlying records and the legal authority to bind the company. The signature may be in an electronic format. This field shall include signature, company, title, telephone, fax and e-mail.
10. Certification: I certify that:
11. 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 certificate, and to inform, in writing, all persons to whom the certificate was given of any changes that could affect the accuracy or validity of this certificate;

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-Bahrain Free Trade Agreement, 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 certification consists of _______ pages, including all attachments.

CBP BFTA Textile and Apparel contact: Susan Thomas (202) 344-3719

CBP BFTA Quota contact: Michelle Videlock (202) 344-2276

CBP Other BFTA Issues contact: Seth Mazze (202) 344-2634

CBP's BFTA Implementation Instructions available at http://www.cbp.gov/linkhandler/cgov/import/international_agreements/free_trade/Bahrain_.ctt/Bahrain_.doc