Details of ITA Final Rule on Mexican Cement Import Licensing System (Entries Require Licenses Beginning April 5th)

(See ITT's Online Archives or 03/07/07 news, 07030700, for initial BP summary, which also covered a U.S. Customs and Border Protection (CBP) final rule on the requirement for a Mexican Cement 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), as well as the submission of the Mexican Cement export license.)

User IDs for Licensing System Can Now be Obtained, Licenses Required Beginning April 5th

According to the ITA sources, filers are now able to obtain their user identification numbers for this licensing system, and can apply for numbered import licenses on or after April 5, 2007. See http://ia/ita.doc.gov/cement-agreement/ for details.

Highlights of ITA's Regulations on the Import Licensing System

The ITA's final rule adds a new Part 361 (Mexican Cement Import Licensing System) to 19 CFR . Highlights of these new regulations include the following provisions:

Mexican Cement Import Licensing System. Pursuant to the March 6, 2006 Agreement on Trade in Cement, the United States is implementing an import licensing system for imports of merchandise covered by the scope of the antidumping duty order on cement from Mexico. The data collected by the Mexican Cement Import Licensing System will be used by the ITA to monitor imports of Mexican Cement, as the imports occur.

CBP 7501 entries. All entries of Mexican Cement subject to the agreement, including samples, whether or not for consumption, will require an import license prior to the filing of CBP Form 7501 (see below for similar FTZ entry requirements). The import license number(s) must be reported on the CBP Form 7501 at the time of filing. There is no requirement to present physical copies of the import license forms at time of filing; however, copies must be maintained in accordance with CBP's existing requirements. Submission of a CBP Form 7501 without the required import license number(s) will be considered circumvention of the Agreement.

Foreign Trade Zone entries. All shipments of covered Mexican Cement into FTZs, known as FTZ admissions, will require an import license prior to the filing of FTZ admission documents. The import license number(s) must be reported on the application for FTZ admission and/or status designation (CBP Form 214) at the time of filing. There is no requirement to present physical copies of the import license forms at the time of FTZ admission; however, copies must be maintained in accordance with CBP's existing requirements. Submission of FTZ admission documents without the required import license number(s) will be considered circumvention of the Agreement. A further Mexican Cement import license will not be required for shipments from FTZs into the commerce of the United States.

Single vs. multiple import licenses for a single entry. 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.

Mexican export license requirements. Each importer is required to submit a valid Mexican Export License to CBP with the entry. For multiple shipments at multiple ports, or multiple entries at one port, the original Mexican Export License shall be presented with the first 7501 entry summary and a copy of the Export License shall be presented with each subsequent 7501 entry summary.

In the case where an entry is covered by two Mexican export licenses, the importer must obtain two separate import licenses (e.g., if a shipment of 100 metric tons (MT) is entered into the United States, 60 MT of which applies to one Mexican Export License, and 40 MT of which applies to a second Mexican Export License, the importer must obtain an import license for 60 MT and a second import license for 40 MT).

Definition of Mexican Cement. 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.

Online registration. Any importer, importing company, customs broker or importer's agent with a U.S. street address may register and obtain the user identification number necessary to log on to the automatic Mexican Cement import license issuance system. Foreign companies may obtain a user identification number if they have a U.S. address through which they may be reached; P.O. Boxes will not be accepted. A user identification number normally will be issued within two business days.

The user identification number will be required in order to log on to the Mexican Cement import license issuance system. A single user identification number will be issued to an importing company, brokerage house or importer's agent. Operating units within the company (e.g., individual branches, divisions, or employees) will all use the same company user identification number.

Automatic issuance of import licenses. Mexican Cement import licenses will be issued to registered importers, customs brokers or their agents through the electronic Mexican Cement Import Licensing System. After submitting the necessary information (completing the import license form), the system will automatically issue a Mexican Cement import license number. The refreshed form containing the submitted information and the newly issued import license number will appear on the screen (the import license form'). If needed, copies of completed import license forms can be requested from Commerce during normal business hours.

Information required obtaining an import license. The following information is required to be reported in order to obtain an import license (partial list):

Mexican Export License Number

Sub-Region of Final Destination: Indicate the Sub-region where either the Mexican Cement will be consumed by an affiliated company to make concrete or concrete products or the Sub-region of the first unaffiliated purchaser of the Mexican Cement.

Final Destination: Indicate the complete name and address (including county) of either the affiliated company that will consume the Mexican Cement or the first unaffiliated purchaser of the Mexican Cement. If either is not known when the Import License is issued, indicate the address (including county) where the Mexican Cement will be siloed/warehoused until the time of shipment to the first unaffiliated purchaser.

CBP entry number, if known;

Current HTS number (from Chapter 25);

Expected date of export.

Duration of the Mexican Cement import license. The Mexican Cement import license can be applied for up to 30 days prior to the expected date of importation and until the date of filing of CBP Form 7501, or in the case of FTZ entries, the filing of CBP Form 214. The Mexican Cement import license is valid for 60 days; however, import licenses that were valid on the date of importation but expired prior to the filing of CBP Form 7501 will be accepted.

Correcting submitted license information. If an error is discovered in the import license after the entry date listed on CBP Form 7501, filers will be able to correct the import license or cancel the import license and obtain a new import license. Commerce reserves the right to verify any changes made to an import license after entry and may take appropriate action under the terms of the Agreement if it determines that a violation of the Agreement has occurred.

(See ITT's Online Archives or 06/01/06 news, 06060125, for BP summary of ITA's proposed rule.)

ITA contact: Sally Gannon (202) 482-0162

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

For User ID and other information, see http://ia/ita.doc.gov/cement-agreement/