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

According to CBP, the BFTA was implemented by Presidential Proclamation 8039, and is effective for goods entered or withdrawn from warehouse for consumption on or after August 1, 2006.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 IV the final part 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, 08/08/06, and 08/09/06 news, 06080705, 06080810, 06080905 for Parts I-III.

Determination of a Claim

CBP may request documentation from the importer to establish the validity of a BFTA claim for preferential tariff treatment. 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.

If CBP determines that a good qualifies for BFTA preferential tariff treatment, CBP will notify the importer of the positive determination via a CBP Form 29, Notice of Action Taken. The CBP Form 29 will state that the good qualifies as originating, and will include the HTS number, description of the good and the relevant rule of origin applied to the good.

If the importer fails to submit the requested information, CBP will issue a negative determination via a CBP Form 29, Notice of Action Proposed. The notice shall specify why the goods do not qualify for preferential tariff treatment and that barring the submission of the requested information, the negative determination will become effective 20 days subsequent to the date of the notice. The CBP Form 29, Notice of Action Proposed will cite the applicable statutes and/or regulations and detail the rate and/or value advance, as appropriate and will be followed by a CBP Form 29, Notice of Action Taken.

If the importer provides a declaration and/or supporting documentation, and CBP determines, based on the information submitted, that the goods do not qualify for preferential tariff treatment, a negative determination will be sent to the importer in the form of a CBP Form 29, Notice of Action Proposed. The notice will specify why the goods do not originate pursuant to the BFTA rules of origin, and that barring the submission of the requested information, the negative determination will become effective 20 days subsequent to the date of the notice. The CBP Form 29, Notice of Action Proposed will cite the applicable statutes and/or regulations and detail the rate and/or value advance as appropriate and will be followed by a CBP Form 29, Notice of Action Taken.

Claims for preferential tariff treatment must be supported by a declaration that pertains to a single shipment or a blanket declaration covering shipments for a period of up to 12 months. Where a negative determination is made with respect to a blanket declaration, CBP shall deny preferential tariff treatment to all importations of identical merchandise covered by that blanket declaration for all entries that have not reached final liquidation.

If CBP finds that subsequent to a negative determination an importer submits another false or unsubstantiated preference claim on identical goods, CBP may disallow preferential tariff treatment on identical goods imported by that party until the importer has shown to CBP's satisfaction that the goods qualify for preferential treatment.

Corrected BFTA Claims

An importer who becomes aware that a claim for preferential tariff treatment was made in error is required to promptly make a corrected declaration. Penalties may not be assessed if the importer voluntarily and promptly declares that imported goods do not originate by correcting the claim and paying any duty owed.

Petition and Protest Rights

Importers or other interested parties may avail themselves of post entry administrative and judicial procedures, such as a Supplemental Information Letter, Post Entry Amendment or 19 U.S.C. 1514 to receive a refund of duties for eligible goods entered, or withdrawn from warehouse, for consumption, on or after the effective date of the BFTA.

A 19 U.S.C. 1514 protest contesting a negative origin determination or decision may be filed within 180 days of the date of liquidation or the decision. The protest may enable the importer to receive a refund of for eligible goods entered, or withdrawn from warehouse, for consumption.

Merchandise Processing Fees (MPF) and Harbor Maintenance Fees (HMF)

Originating goods under the BFTA, in addition to being subject to reduced and free rates of duty are exempt from MPF. Non-originating goods eligible for preferential treatment under a TPL are not eligible for a MPF exemption.

In addition, goods are not exempt from the harbor maintenance fee.

Termination of the Agreement

There is no set expiration date for the BFTA. However, the provisions of and amendments made by the Act will cease to be effective upon the termination of the Agreement by written notification from either the U.S. or Bahrain.

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