MESSAGE NO: 2100111
DATE: 04 09 1992
CATEGORY: CVD
TYPE: ADM
REFERENCE: 2073111
REFERENCE DATE: 03 13 1992
CASES:
C - 122 - 816
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PERIOD COVERED:
03 12 1992
TO
LIQ SUSPENSION DATE:
TO: DIRECTORS OF FIELD OPERATIONS
PORT DIRECTORS
FROM: DIRECTOR, SPECIAL ENFORCEMENT
RE: ENTRY REQUIREMENTS FOR SOFTWOOD LUMBER FROM CANADA
SUBJECT TO THE PRELIMINARY CVD DETERMINATION
There have been allegations that entry/entry summaries of
softwood lumber from Canada which are subject to countervailing
duty
are
not being handled uniformily by
field personnel. This
EMAIL will address some of the issues which have arisen
concerning entry requirements for
softwood lumber from
Canada subject
to
the preliminary determination of the
Department of Commerce which
imposed
bonding requirements in
the
amount of 14.48% on importations of this merchandise. The
determination was published in Federal Register, Vol. 57,
No.
49, Page 8800,dated March 12, 1992.
The issues of contention and
our position regarding them are
as follows.
Included
are
source
references
in
support
of
the positions stated below.
ISSUE 1: Freight adjustments to entered value.
POSITION: Any adjustment for freight charges should be
based
on actual
freight
charges,
not
theoretical freight
charges
(HQ message 2073111 dated 031392). If freight charges are subject
to rebates, the amounts rebated should not
be deducted if known
at time of summary filing. If unknown, it
is
the responsibility
of the importer of
record
to provide rebate information to
Customs when it becomes available.
ISSUE 2: Value for determining bond liability.
POSITION: The
bond liability is
based
on
the
Customs
entered value.
The
Customs
entered value of imported
merchandise is determined in accordance with
the
definition
in
Section 402, Tariff Act
of 1930,
as amended
(19USC1401a)(CD3550-33 dated May 24, 1989).
ISSUE 3: Invoice requirements.
POSITION: An invoice is required for each shipment. The
type
of invoice
required
and
the
required
content
of
invoices
are addressed
in
19CFR141.83 AND
141.86.
The
use
of
pro
forma invoices is addressed in 19CFR141.85. The information
required on pro
forma
invoices
does
not
differ
from
that
required on commercial invoices.
Some
brokers
and
shippers have suggested that
Customs
should
accept pro forma invoices which contain only a 'net'
value at FOB mill basis, although the
actual sale occurs
at
'delivered, duty paid' terms. In
this scenario, the shipper
would deduct freight, duty, brokerage, and the CVD margin from
the delivered, duty paid price
to determine a
value equivalent
to
FOB
mill terms. The 'invoice' presented to Customs would
contain only that 'adjusted' price
and perhaps a statement that
identified charges are billed on the commercial invoice.
There
is
no provision of
law
or regulation which would
permit such a procedure.
ISSUE 4: Shipments involving more than one sale for export to
the U.S.
POSITION: Where this occurs, the Customs entered value is
based on
the
sale which
most directly results in exportation
to the United States. There
are
various practices which
may
be used among
the
Canadian
mills,
wholesalers,
buyers,
etc.
Each particular set of circumstances needs to
be examined in
order to determine the proper basis of entered value.
The
invoices should set forth the details of the transactions in
order for Customs to make the proper determinations.
ISSUE 5: Right to make entry.
POSITION: Only the owner, purchaser, or a licensed Customs
broker may
make
entry
and
appear
on
entry documents as
importer of record. A licensed Customs broker may do
so only
when designated by
the
owner,
purchaser,
or
consignee
of
the merchandise (19USC1484, CD
3530-02
DATED 110684).
Therefore, a
shipper or seller
can
act
as importer of
record
only
if
they
own the imported merchandise at the time of its
arrival in the U.S. Their appearance
as
a
consignee
on
the
shipping documents, absent ownership, only
allows
them
to
designate
a
licensed Customs broker to
act
as importer of
record on their behalf.
In those cases, the broker's bond is
liable for all entry requirements.
ISSUE
6: Deduction of estimated CVD
from
the invoice price
to make entered value.
POSITION: In
order
to
be deductible the
CVD
amount
must
be included in
the
price
and
be identified as
such
(HQ
letter 543963). In order to be deducted, the CVD margin must
actually be paid
as
estimated duties
on
the
entry
summary,
i.e., cash
deposit. If
the
CVD amount is covered by
a bond,
the estimated CVD included in the price may not be deducted but,
a) the cost of the bond
may
be deducted, and
b)
the amount of
the final CVD margin would be deducted by Customs during the
assessment of any countervailing duties against the entry summary
If
there are other issues raised which are
not covered by
this message,
please
contact
the
Import Specialist Division,
other Agency Branch, via
EMAIL
or
at
FTS/202 535-4931 and
we
will forward these inquiries to
the Office of Regulations and
Rulings or the Department of Commerce, if appropriate.
C.L. Brainard
Director, Office Of Trade Operations
NOTE: THIS MESSAGE WAS INADVERTENTLY NOT POSTED TO ADIL BECAUSE
THE PERIOD COVERED IN THE HEADER WAS NOT CORRECTLY COMPLETED SO
HAS BEEN POSTED TO ADIL ON DECEMBER 1, 2009. THE ORIGINAL
MESSAGE WAS SENT TO REGIONAL DIRECTORS, COMMERCIAL OPERATIONS,
DISTRICT DIRECTORS, AREA AND PORT DIRECTORS, NOT DIRECTORS,
FIELD OPERATIONS AND PORT DIRECTORS. DIRECTOR, IMPORT
SPECIALIST DIVISION IS NOW SHOWN AS DIRECTOR, SPECIAL
ENFORCEMENT. THE BALANCE OF THE TEXT AND INFORMATION REMAINS
UNCHANGED. THIS MESSAGE WITH THE CORRECTED HEADER HAS BEEN
POSTED TO THE ADD/CVD SEARCH APPLICATION ON CBP.GOV.