CBP Advises Trade on July 1, 2005 ABI System Requirements for Filing Morocco FTA Claims

ACS to Accept Morocco FTA Claims with a July 1, 2005 Duty Computation Date

CBP states that the Morocco FTA benefits will become effective for merchandise that has a duty computation date of July 1, 2005. In addition, the Automated Commercial System (ACS) has been programmed to accept Morocco FTA claims effective with a duty computation of July 1, 2005.

(Record Identifier 10, Note 3 of the Customs and Trade Automated Interface Requirements (CATAIR) Entry Summary section describes the duty computation date for an entry summary, which may be different for quota vs. non-quota entries, etc. CATAIRRecord Identifier 10, Note 3 available at http://www.cbp.gov/linkhandler/cgov/import/operations_support/automated_systems/abi/catair/ens-02-3.ctt/ens_032005.doc)

ABI System Requirements for a Morocco FTA Claim

CBP states that in order to claim a Morocco FTA benefit, the following ABI system requirements must be met:

(See CBP's message for applicable record identifiers, positions, etc.)

SPI 'MA' must be filed. The Special Program Indicator (SPI) of 'MA' must be filed. ('MA' is the International Organization for Standardization (ISO) code for Morocco.)

Country of origin. The country of origin must be 'MA.'

Country of export. The country of export must be 'MA.'

HTS number must have SPI 'MA." The tariff number associated with a Morocco FTA claim must contain the SPI of 'MA.' The tariff numbers with Morocco FTA indication may either be a free rate or a reduced rate. If the rate is reduced, the duty rate will be indicated in the special rate field associated with the ISO code 'MA.'

TRQs, safeguards. The Morocco FTA will have tariff numbers that are subject to tariff-rate quota (TRQ) and to safeguard provisions (tariff numbers beginning with 9912).

MPF still required. The merchandise processing fee (MPF) (class codes 499/311) will be required for Morocco FTA claims, as the Morocco FTA does not provide MPF benefits.

GSP eligibility to cease. The Generalized System of Preferences (GSP) eligibility for Morocco will cease effective with the implementation of the Morocco FTA. As a result, GSP will terminate on July 1, 2005 for Morocco.

Morocco FTA Tariff Update Will Be Available Shortly

According to CBP, a tariff update with the Morocco FTA rates will be sent out shortly. A future message will be sent to indicate the date that the tariff updates with the Morocco FTA rates have been sent.

CBP Adm: 05-0557 (dated 05/20/05) available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2005/2005-0557.ADM

BP Notes

1. On August 17, 2004, President Bush signed the U.S.-Morocco FTA Implementation Act into law. At that time, U.S. government sources stated that after the U.S. and Morocco exchange notes on this FTA, President Bush could then issue a proclamation implementing it. (See ITT's Online Archives or 08/19/04 news, 04081905, for BP summary.) Such a proclamation has yet to be issued.
2. The International Trade Commission (ITC) has issued its report for its investigation on delaying the effective date of the Morocco FTA to July 1, 2005 (from January 1, 2005). (See ITT's Online Archives or 04/22/05 news, 05042210, for BP summary of the ITC's institution of this investigation.) (ITC report, Inv. No. Morocco FTA-103-11, Publication 3774, dated April 2005, available at http://hotdocs.usitc.gov/docs/pubs/103/pub3774.pdf)