CBP Issues Proposed Rule on MPF Exemption for Unconditionally Free Goods from NAFTA Countries, Etc.

CBP is also proposing to amend 19 CFR Part 181 to clarify that a NAFTA Certificate of Origin is not required for a commercial importation for which the total value of originating goods does not exceed $2,500, if the required statement is attached. CBP further states that it is also proposing to make technical corrections, such as remedying two incorrect addresses and incorrect CFR citations, in 19 CFR Parts 103, 178, and 181.

MPF Exemption for Unconditionally Free Goods from NAFTA Countries

CBP's proposed rule would amend 19 CFR 181.21(a), on the filing of a NAFTA claim for preferential tariff treatment upon importation, in order to clarify that an importer is subject to the same declaration requirement that is established for claiming NAFTA duty preference, when claiming the exemption of the MPF for goods that meet a NAFTA rule of origin - even when the goods are unconditionally free. The proposed change would read as follows (added text is denoted by ):

(a) Declaration. In connection with a claim for preferential tariff treatment, or for the exemption from the merchandise processing fee, for a good under the NAFTA, the U.S. importer shall make a written declaration that the good qualifies for such treatment. The written declaration may be made by including on the entry summary, or equivalent documentation, the symbol "CA" for a good of Canada, or the symbol "MX" for a good of Mexico, as a prefix to the subheading of the HTS under which each qualifying good is classified.

Commercial Importations - NAFTA Goods Whose Total Value is Under $2500

CBP's proposed rule would amend 19 CFR 181.22(d)(iii), on the maintenance of records and the submission of the NAFTA Certificate of Origin by the importer, to clarify that a Certificate of Origin is not required for a commercial importation consisting of originating goods, the total value of which does not exceed $2,500, if the required statement [in 181.22(d)(iii)] is attached to the applicable documentation. The proposed changes would make 181.22(d)(iii) read as follows (deleted text is denoted by <->; added text is denoted by ):

A commercial importation <of a good whose value> for which the total value of originating goodsdoes not exceed US$2,500, provided that, unless waived by the port director, the producer, exporter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed statement [in 181.22(d)(iii)]:

Proposed Technical Corrections, Address Changes

CBP's proposed rule would also make the following technical corrections and address changes:

1. CFR 178.2, the list of OMB control numbers, would be amended by deleting the following OMB control numbers: 12.130(c) on the declaration of manufacturer, producer, exporter or importer of textiles or textile products as to country of origin of such articles; and 12.132 on country of origin declaration covering textile and apparel goods under the NAFTA.
2. CFR 181.74(a), on written consent required for verification visit procedures, would be amended by replacing the citation "81.72(a)(2)(iii)" with the citation "181.72(a)(3)(iii)
3. CFR 181.74(e), on verification visits in the U.S, 19 CFR 103.1, on public reading rooms, and 19 CFR 181.93(a), on submission of advance ruling requests, would be amended by updating the addresses listed in the sections.

¹ Canada, Mexico or the U.S.

CBP Proposed Rule (USCBP-2006-0090, FR Pub 08/23/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-13947.pdf