- To : Automated Broker Interface
Subject: 1994 TARIFF TAPES-NAFTA IMPLEMENTATION
LINE ITEM PROCESSING REQUIREMENTS TO IMPLEMENT THE NORTH AMERICAN
FREE TRADE AGREEMENT (NAFTA)
THE NORTH AMERICAN FREE TRADE AGREEMENT PROVIDES FOR FREE OR REDUCED
RATES OF DUTY FOR CERTAIN ELIGIBLE MEXICAN AND CANADIAN ARTICLES. IF
PASSED BY CONGRESS, EFFECTIVE 1/1/94 NAFTA WILL APPLY TO MERCHANDISE
ORIGINATING IN MEXICO, CANADA, OR THE UNITED STATES WITH MX OR CA
INDICATED IN THE SPECIAL RATES COLUMN OF THE HARMONIZED TARIFF SCHEDULE
(HTS). PRIOR TO 1/1/94 THE EDITS AND VALIDATIONS FOR THE CANADIAN
FREE TRADE AGREEEMENT (CFTA) APPLY.
AN ABI FILER MUST INDICATE AN SPI OF "MX" TO OBTAIN THE MEXICAN NAFTA
RATES OR AN SPI OF "CA" TO OBTAIN THE CANADIAN NAFTA RATES. THE SPI
MUST BE TRANSMITTED IN POSITIONS 78-79 OF RECORD IDENTIFIER 50, OR
POSITIONS 79-80 OF RECORD IDENTIFIERS 70, 80, AND 81.
BEGINNING ON JANUARY 1, 1994, ALL MERCHANDISE WHICH QUALIFIES UNDER
THE CFTA WILL NO LONGER BE SUBJECT TO A MERCHANDISE PROCESSING FEE.
IF AN ENTRY INCLUDES BOTH CFTA ELIGIBLE AND NON-CFTA ELIGIBLE GOODS,
THE MERCHANDISE PROCESSING FEE WILL BE ASSESSED ONLY ON THE NON-CFTA
ELIGIBLE GOODS.
BEGINNING ON JANUARY 1, 1999, ALL MERCHANDISE WHICH QUALIFIES UNDER
THE NAFTA FOR MEXICO WILL NO LONGER BE SUBJECT TO A MERCHANDISE
PROCESSING FEE.
ACS WILL PERFORM THE FOLLOWING EDITS WHEN "MX" IS ENTERED.
THE COUNTRY OF ORIGIN MUST BE EITHER MEXICO (MX), CANADA (CA), OR
THE UNITED STATES (US).
THE COUNTRY OF EXPORT MUST BE LISTED IN THE COUNTRY FILE.
THE TARIFF FILE MUST CONTAIN "MX" IN THE SPECIAL PROGRAMS INDICATOR
FIELD FOR THE ENTERED TARIFF NUMBER, IF NOT THE ENTRY WILL BE REJECTED.
IF IT DOES:
AND THERE IS A SPECIAL RATE FOR MX INDICATED IN THE SPECIAL RATE
FIELD, THEN THE SPECIAL RATE APPLIES. IF THERE IS NO MX SPECIAL
RATE THEN THE ITEM IS DUTY FREE.
ACS WILL PERFORM THE FOLLOWING EDITS WHEN "CA" IS ENTERED.
THESE EDITS ARE EFFECTIVE 1/1/94 FOR THE SPI OF "CA". PRIOR TO 1/1/94
THE CANADIAN FREE TRADE AGREEMENT (CFTA) EDITS ARE APPLICABLE.
THE COUNTRY OF ORIGIN MUST BE EITHER MEXICO (MX), CANADA (CA), OR THE
UNITED STATES (US).
THE COUNTRY OF EXPORT MUST BE INDICATED IN THE COUNTRY FILE.
THE TARIFF FILE MUST CONTAIN "CA" IN THE SPECIAL PROGRAMS INDICATOR
FIELD FOR THE ENTERED TARIFF NUMBER, IF NOT THE ENTRY WILL BE REJECTED.
IF IT DOES:
AND THERE IS A SPECIAL RATE FOR CA INDICATED IN THE SPECIAL RATE
FIELD, THEN THE SPECIAL RATE APPLIES. IF THERE IS NO CA SPECIAL
RATE THEN THE ITEM IS DUTY FREE.
HARMONIZED TARIFF FILE
THE NAFTA REQUIRES A TREMENDOUS AMOUNT OF CHANGES TO BE MADE TO THE
TARIFF FILE. MANY NUMBERS WILL BE ADDED OR CHANGED, AND THOUSANDS
OF RATES WILL BE REDUCED. WE ESTIMATE THAT APPROXIMATELY 60,000
ABI RECORDS WILL BE CREATED. DUE TO THE TREMENDOUS NUMBER OF RECORDS
THAT ARE AFFECTED, ELECTRONIC RETRIEVAL WILL NOT BE MADE AVAILABLE.
THE UNUSUALLY LARGE NUMBER OF UPDATES WOULD EXCEED THE CAPACITY OF
THE SYSTEM AND SERIOUSLY IMPACT UPON THE RESPONSE TIME OF ACS.
HOWEVER, MAGNETIC TAPES OF THE 1994 HARMONIZED TARIFF SCHEDULE IN
ABI FORMAT WILL BE MADE AVAILABLE UPON REQUEST. A HARMONIZED TARIFF
SCHEDULE TAPE ORDER FORM IS LOCATED IN APPENDIX J OF THE CUSTOMS AND
TRADE AUTOMATED INTERFACE REQUIREMENTS (CATAIR) DOCUMENT. THIS FORM
MUST BE SENT TO CUSTOMS HEADQUARTERS WITH A SIGNED COPY OF THE
DISCLAIMER STATEMENT IN ORDER TO RECEIVE A TAPE. THESE TAPES COME
IN A VARIETY OF FORMATS AND ARE FREE OF CHARGE TO ALL ABI
PARTICIPANTS.
TAPE ORDER FORMS MUST INDICATE WHETHER A CFTA TAPE IS REQUIRED.
IN THE EVENT THAT NAFTA IS NOT RATIFIED BY THE CONGRESS, TAPES WILL
ONLY BE SENT TO THOSE SPECIFICALLY REQUESTING A CFTA TAPE. IF CFTA
IS NOT INDICATED ON THE REQUEST FORM WE WILL ASSUME THAT ONLY A NAFTA
TAPE IS REQUIRED.
IF NAFTA IS NOT RATIFIED BY THE CONGRESS BY THE END OF NOVEMBER:
UPDATES FOR THE CFTA RATES WILL BE MADE AVAILABLE THROUGH ELECTRONIC
RETRIEVAL AND BY MAGNETIC TAPE IN THE USUAL MANNER AT THE BEGINNING
OF DECEMBER. TAPES WILL ONLY BE SENT TO THOSE SPECIFICALLY REQUESTING
A CFTA TAPE ON THEIR ORDER FORM.
9999.99999999 DUTY RATE
WHENEVER ALL NINES APPEAR IN THE DUTY RATE FIELD IN THE TARIFF FILE,
THE RATE SHOULD NOT BE USED. THIS MAY INDICATE THAT THE DUTY RATE
SHOULD BE OBTAINED FROM A DIFFERENT TARIFF NUMBER. FOR EXAMPLE, THE
MEXICAN NAFTA RATE FOR TARIFF NUMBER 0402.21.60 IS PROVIDED FOR IN
TARIFF NUMBER 9906.04.20, 9906.04.21, OR 9906.04.22.
WHEN THE COMP CODE IS AN "X" THE DUTY RATE "9999.99999999"
WILL BE INDICATED. ACS WILL NOT CALCULATE THE DUTY BUT WILL ACCEPT
WHATEVER DUTY IS TRANSMITTED. IN A FEW CASES ALL NINES WILL BE
INDICATED TO ALLOW FOR SYSTEM PROCESSING OF SPECIAL TRADE PROGRAMS.
SPECIAL PROCESSING IS REQUIRED WHENEVER ALL NINES APPEAR. THE TYPE
OF PROCESSING REQUIRED IS DEPENDENT UPON THE UNIQUE SITUATION
INVOLVED.
IF YOU HAVE ANY QUESTIONS ON THE ABOVE PLEASE CONTACT YOUR CLIENT
REPRESENTATIVE OR IRV FISHER, CHIEF, TARIFF COMPLIANCE BRANCH AT
(202) 927-0241.