CBP Issues Notice on El Salvador Agricultural CAFTA-DR TRQs That Took Effect March 1, 2006
U.S. Customs and Border Protection (CBP) has issued a notice on the CAFTA-DR tariff rate quotas (TRQs) that have been implemented for the March 1, 2006 - December 31, 2006 period for certain "qualifying" agricultural products (except sugar) from El Salvador, the only country to date that the U.S. has implemented the CAFTA-DR for.
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These TRQs opened on March 1, 2006 at 12:00 EST or its equivalent in other time zones. CBP states that P is the primary SPI indicator.
(CBP adds that it will issue another notice at a later date on El Salvador's CAFTA-DR TRQ for sugar.)
"In-Quota" Limit, "Over-Quota" Limit, and "Safeguard" Duty Rates
According to CBP's notice, the agricultural CAFTA-DR TRQs for El Salvador all have an aggregate in-quota (duty free) quantity limit.
All but one also have an aggregate over-quota (high duty) quantity limit, and a safeguard (high) duty rate for quantities in excess of the aggregate over-quota limit.
Aggregate "In-Quota" and "Over-Quota" Limits
CBP states that the DR-CAFTA agricultural TRQs for March 1, 2006 - December 31, 2006 applicable to El Salvador are in U.S. Notes 4, 5, 6, 8, 10, 12, and 14 of Chapter 99, Subchapter XV.
For the 2006 time period, the aggregate "in-quota" and "over-quota" quantity limits for ElSalvador are as follows (See CBP notice for all applicable tariff numbers; CBP' s notice does not list any duty rates; also there are no limits for any of the safeguard duty rates):
U.S. NOTE 4*
In-Quota 105,000 kg
(*The quantity in U.S. Note 4 is available only after the quantity allocated to "Other Countries or areas" under Additional U.S. Note 3 to HTS Chapter 2 have been filled for the year.)
U.S. NOTE 5
In-Quota 366,715 L
Over-Quota 110,014 L
U.S. NOTE 6
In-Quota 60,000 kg
Over-Quota 18,000 kg
U.S. NOTE 8
In-Quota 120,000 kg
Over-Quota 36,000 kg
U.S. NOTE 10
In-Quota 450,000 kg
Over-Quota 135,000 kg
U.S. NOTE 12
In-Quota 500,000 kg
Over-Quota 150,000 kg
U.S. NOTE 14
In-Quota 77,670 L
Over-Quota 23,301 L
Example. For U.S. Note 5, El Salvador goods in two Chapter 4 tariff numbers may enter under HTS 9915.04.01 for the in-quotazero rate, until the aggregate in-quota limit of 366,715 liters is reached.
Additional El Salvador goods in the two Chapter 4 tariff numbers may then enter under HTS 9915.04.02 for the specified over-quotaduty rate, until the aggregate over-quota limit of 110,014 liters is reached.
Any further quantities of El Salvador goods under these two Chapter 4 tariff numbers are then subject to a safeguard duty rate (without a quantity limit) under HTS 9915.04.03.
Note: The Chapter 99 tariff numbers for these TRQs are in effect from March 1, 2006 - 2024 or earlier, and are subject to various TRQ increase and duty rate decrease schedules, so that by no later than 2024, their rate of duty is zero.
Non-ABI Entry Required Until Further Notice
Due to ongoing system programming for the CAFTA-DR, CBP states that ABI transmission of entries for eligible goods is not available at this time. Filers are required to file non-ABI until further notice.
The Agricultural TRQs Require an SPI P and are "Qualifying Goods"
CBP states that DR-CAFTA provides quantitative limits associated with a reduced duty rate for agricultural products that meet the requirements for a 'qualifying good.' A qualifying good is one that meets the product specific rule of origin, however U.S. materials or inputs are considered to be of a non-Party; in other words, U.S. materials are considered non-originating. In addition, P is the primary SPI indicator.
(See CBP notice for Chapter 1 - 97, and Chapter 99 tariff numbers applicable to El Salvador for each U.S. Note. See March 1, 2006 HTS for current TRQ in-quota, over-quota and safeguard duty rates, and TRQ quantities for 2006 - 2024. See Presidential Proclamation 7987's Annex II, Section C(i) and (ii), for applicable over-quota and safeguard duty rates for 2006 - 2024.)
CBP contact: Christine Kegley (202) 344-2319
CBP QBT-06-515 (dated 03/07/06), available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2006/06_515.ctt/06_515.doc
Proclamation 7987's Annex II, Section C(i) and (ii) (ITC publication 3829, dated February 2006), beginning at page 150 (of 164 pages)) available at http://www.usitc.gov/tata/hts/other/rel_doc/annex/PUB3829.pdf
HTS Chapter 99 of March 1, 2006 HTS (Subchapter XV, HTS page 99-XV-1), beginning at page 201 (of 216 pages), http://hotdocs.usitc.gov/docs/tata/hts/bychapter/0601C99.pdf