ITA and CBP Issue Final Rules on Mexican Cement Import and Export License Requirements (License Requirements Effective April 5th)
The International Trade Administration (ITA) has issued a final rule, effective April 5, 2007, to implement the Mexican Cement Import Licensing System, which among other things, requires all importers of subject cement from Mexico to obtain an import license from the ITA prior to completing their U.S. Customs and Border Protection (CBP) entry summary documentation.
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Filers Can Obtain User IDs for ITA Licensing System on/after March 16, 2007, Etc.
According to the ITA, filers will be able to obtain their user identification (ID) numbers for this licensing system on or after March 16, 2007, and apply for numbered import licenses on or after April 5, 2007. (However, ITA sources state that these ID numbers can be obtained now. See the ITA's import licensing Web site at http://ia.ita.doc.gov/cement-agreement/ for details.)
CBP Scheduled to Require ITA License Number, Mexico Export License, Effective April 5, 2007
CBP has also issued a final rule, effective April 5, 2007, to require the ITA-generated import license number on the entry summary (CBP Form 7501) or on the application for foreign trade zone (FTZ) admission and/or status designation (CBP Form 214) for subject cement from Mexico. Additionally, the importer must submit a hard copy of the original valid Mexican export license with the entry documentation or provide such document to the FTZ operator, unless directed otherwise by CBP.
(These licensing and entry summary requirements are part of the Agreement on Trade in Cement between the U.S. and Mexico which was signed on March 6, 2006, which settled litigation before NAFTA and WTO dispute resolution panels and provides for export limits for three years, among other things. See ITT's Online Archives or 03/16/07 news, 06031625, for BP summary.)
Obtaining import licenses. The ITA states that Mexican Cement import licenses will be issued to registered importers, customs brokers or their agents through the ITA's automatic Mexican Cement Import Licensing System. The import license number will be generated immediately upon submitting the information and will be needed to complete the CBP entry documentation.
Scope of affected Mexican cement. According to the ITA, subject Mexican cement is defined as gray portland cement and clinker from Mexico. Gray portland cement is a hydraulic cement and the primary component of concrete. Clinker, an intermediate material produced when manufacturing cement, has no use other than being ground into finished cement.
Specifically included within the scope of this definition are pozzolanic blended cements and oil well cements. Specifically excluded are white cement and Type "S" masonry cement. Gray portland cement is currently classifiable under HTS 2523.29 and cement clinker is currently classifiable under HTS 2523.10. Gray portland cement has also been entered under HTS 2523.90 as "other hydraulic cements." These HTS subheadings are provided for convenience and CBP purposes; the written definition is controlling for purposes of the Agreement on Trade in Cement.
Need for single vs. multiple import licenses. The ITA also states that a single import license may cover multiple products if the following information reported on the import license remains the same: Company Name, Address, City, State, Zip, Contact Name, Contact Phone, Contact Fax, Contact E-mail, Importer Name, Exporter Name, Manufacturer Name, Country of Origin, Country of Exportation, Expected Port of Entry, Expected Date of Importation, Expected Date of Export, Customs Entry Number (if known), Date License Valid From, Date License Valid Through, Date of Application, Subregion of Final Destination, Type of Affiliation, U.S. Affiliate's Name, Address, County, City, State, Zip, Mexican Export License Number, and Disaster Relief Statement.
Separate import licenses will be required for each type of Mexican cement entry if the above information differs. As a result, a single CBP entry summary may require more than one Mexican Cement import license.
(The ITA adds that it will use the information recorded on the import license form as the basis for monitoring compliance with the Agreement on Trade in Cement. In addition, both the Department of Homeland Security (DHS) and the Department of Treasury issued the CBP final rule.)
ITA contact: Sally Gannon (202) 482-0162
CBP contact: Alice Buchanan (202) 344-2697
ITA final rule (D/N 060316072-5251-02, FR Pub 03/06/07), available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-996.pdf
CBP final rule (CBP Dec. 07-05 and USCBP-2006-0020, FR Pub 03/06/07), available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-997.pdf