CBP Issues ABI System Requirements for Mexican Cement Import Licenses, Etc.

(On March 6, 2006 the U.S. and Mexico reached an agreement on imports of gray portland cement and clinker from Mexico (Mexican cement). See ITT's Online Archives or 03/16/06 news, 06031625, for BP summary of the agreement. See ITT's Online Archives or 06/01/06 news, 06060125, for BP summary of the ITA's proposed rule to establish the Mexican cement import licensing system. See ITT's Online Archives or 06/02/06 news, 06060230 for BP summary of CBP's proposed rule to amend 19 CFR for the requirement for import and export licenses for Mexican cement.)

Submission of Import License Number and Valid Paper Mexican Export License with Entry Summary

CBP states that for any Mexican cement product for which the ITA requires a license under its cement licensing and import monitoring program, the importer will be required to submit an import license number on the entry summary (CBP Form 7501), as well as a valid paper Mexican export license (to be obtained by the exporter, prior to entry, from the Mexican government) with the entry summary documentation.

CBP further states that for application for Foreign Trade Zone (FTZ) admission and/or status designation (CBP Form 214), the importer will be required to submit an import license number on the application and will be required to file the export permit with the FTZ operator.

ABI System Requirements for Mexican Cement Import Licenses

According to CBP, the following system requirements (partial list) must be met in order to file Mexican cement import licenses via ABI (CBP notes that ACS has already been modified to accept the new Mexican cement import license):

Subject tariff numbers will have a "09" permit indicator. The tariff numbers subject to the Mexican cement import license pursuant to the cement agreement will have a permit indicator of "09" indicated on the tariff record. (V2/W2 miscellaneous permit/license field.)

Tariff numbers subject to the Mexican cement import license requirement. The tariff numbers that will be subject to the Mexican cement import license requirement are: 2523.10.00, 2523.29.00, and 2323.90.00.

Merchandise must originate from Mexico. The Mexican cement merchandise must originate from Mexico (MX). The country of origin is transmitted in the entry summary, record identifier 40 record, positions 6-7.

Import license number and paper export permit will be required for certain entry types: The Mexican cement import license number and paper export permit will be required for the following entry types:

Informal entry types: 11, 12

Consumption entry types: 01, 02, 03, 07

Warehouse withdrawal entry types: 31, 32, 34, 38

In addition, the cement import license will be optional for warehouse entry types 21/22 and for temporary importation bonds (TIB) entry type 23.

Cement import license will be required for paper or electronic transmission of CBP Form 214. The cement import license will be required for paper or electronic transmission of CBP Form 214 (FTZ admission and/or status designation).

Advance Notice of the Mexican Cement Import/Export Licensing Effective Date

CBP states that the ITA will advise CBP on the effective date of its Mexican cement licensing requirement and CBP will then issue advanced notification via ABI. CBP also notes that the effective date will be by the duty computation date for the summary.

(See CBP administrative message for complete details.)

CBP ABI message 06-1079, dated 09/18/06, available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2006/2006-1079.ADM