ABI Programmed for AMS Fee Exemption for Certain Importers of Organic Products - But AMS Fee Exemption Not Yet in Effect

AMS fee exemption not yet in effect. However, sources at the Agricultural Marketing Service (AMS) state that organic exemption claims cannot yet be filed, as the final rule providing for these exemptions has not been published and is not yet in effect.

(Under the AMS proposed rule, any person who produces (as defined by AMS) and markets solely 100% organic products would be exempt from paying assessments to any research and promotion program administered by AMS.

For purposes of this proposed rule, "produce" would mean to grow or produce food, feed, livestock, or fiber or to receive food, feed, livestock, or fiber and alter that product by means of feeding, slaughtering, or processing.

AMS has stated that producers, handlers, first handlers, processors, importers, exporters, feeders and seed stock producers may be eligible for the exemption if they meet the definition of "produce" for purposes of the proposed rule.¹

"Produce" is not proposed to be redefined for AMS research and promotions programs. See ITT's Online Archives or 04/27/04 news, 04042710, for BP summary of AMS' proposed rule and examples operations which would qualify for the organic exemption.

Programs to be eligible for AMS fee exemption. CBP states that [once the exemption program is implemented] AMS will issue organic exemption certificate numbers to importers for import shipments that qualify for the exemption of AMS fees. CBP states that AMS has advised it that the following fees¹ will be eligible for the organic exemption program:

CBP notes that AMS fees are listed in the entry summary section of the CATAIR, Record Identifier 62 (Input), Note 1 Section.

¹ although CBP's message lists the Lime fee (class code 102) as eligible for the organic exemption program, AMS sources state that the lime research and promotion program is no longer operating.

Organic exemption certificate number. In order to claim an organic exemption for an AMS fee, CBP states that the filer will transmit the organic exemption certificate number issued by AMS in the entry summary Record Identifier 51 input record in the current cotton certificate number field (positions 48-56). The organic exemption certificate number will be a 9-position alpha/numeric number.

The entering of the organic exemption certificate number will exempt the line from the AMS fee associated with the tariff number. CBP notes that if the tariff number entered for the line does not contain an AMS fee, no organic exemption fee claim should be made. The ABI line item data will be rejected if the tariff number for the entered line does not have an indication of an AMS fee requirement. The Harmonized Tariff query and extract reference file transactions contain tariff data to indicate if an AMS fee is associated with a specific tariff number.

(See ITT's Online Archives or 08/12/04 news, 04081215, for BP summary listing the imported commodities that are subject to AMS research and promotion program import fees and the current import fee rate.)

CBP administrative message (Adm: 04-2257, dated 10/20/04, available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2004/2004-2257.ADM.