CBP Final Rule on MPF Exemption For "Unconditionally Duty-Free" Goods From NAFTA Countries, Etc.

In addition, the final rule amends 19 CFR Part 181 to clarify the circumstances under which a NAFTA Certificate of Origin is not required for commercial importations with a value of $2,500 or less.

The final rule also remedies certain incorrect addresses and makes minor updates and corrections, etc., in 19 CFR Parts 103, 178, and 181.

Unconditionally Free Goods Need Declaration (SPI) for NAFTA MPF Exemption

The final rule amends 19 CFR 181.21(a) to clarify that to claim the MPF exemption for goods eligible for preferential duty treatment under NAFTA, an importer of an originating good must use the special program indicator (SPI) of "CA" (Canada) or "MX" (Mexico), as appropriate, even if the importer is not actually claiming NAFTA preference for duty purposes.

Amended 19 CFR 181.21(a) reads as follows (added text is denoted by , deleted text is denoted by <->;):

(a) Declaration. In connection with a claim for preferential tariff treatment, or for the exemption from the merchandise processing fee, for a good under the NAFTA, the U.S. importer <shall> must make a <written> formal declaration that the good qualifies for such treatment. The <written> declaration may be made by including on the entry summary, or equivalent documentation, including electronic submissions the symbol "CA" for a good of Canada, or the symbol "MX" for a good of Mexico, as a prefix to the subheading of the HTSUS under which each qualifying good is classified.

(Note that 19 CFR 181.21(a) was updated to replace "written declaration" with "formal declaration" and add a reference to "electronic submissions.")

Commercial Importations - NAFTA Goods Whose Total Value is Under $2500

The final rule also amends 19 CFR 181.22(d)(iii) to clarify that a NAFTA Certificate of Origin is not required for a commercial importation for which the total value of the goods does not exceed $2,500, if the specified statement is attached to the documentation accompanying the shipment.

(The specified statement certifies that the goods are NAFTA originating and is provided and signed by the producer, exporter, importer or authorized agent. (Note that this statement may be waived by the port director; also that the importation cannot be part of a series of shipments undertaken to avoid the NAFTA Certificate of origin requirement.))

Address Changes, Minor Revisions

CBP's final rule makes several minor technical corrections and updates such as address changes, citation authority changes, nomenclature revisions, etc.

Among other things, the final rule updates certain addresses at 19 CFR 181.74(e), on verification visit procedures and at 19 CFR 181.93(a), on submission of advance ruling requests.

Specifically, the address in 19 CFR 181.74(e) for providing notification when the Canadian or Mexican customs administrations intend to conduct a NAFTA verification visit in the U.S. in order to determine whether a good imported into the U.S. qualifies as an originating good, is now U.S. Customs and Border Protection, Office of International Trade, Commercial Targeting and Enforcement, 1300 Pennsylvania Ave. NW, Washington, DC 20229.

(This change is necessary as some divisions, functions, and personnel from the Office of Field Operations were transferred by the Commissioner of CBP into the Office of

International Trade (OT).)

At 19 CFR 181.93(a), the National Commodity Specialist Division (NCSD) address for purposes of submitting advance ruling requests under the NAFTA is National Commodity Specialist Division, U.S. Customs and Border Protection, One Penn Plaza, 10th Floor, New York, NY 10119.

(See ITT's Online Archives or 08/24/06 news, 06082410, for BP summary of CBP's proposed rule.)

CBP contact - Seth Mazze (202) 344-2634

CBP Final Rule (D/N USCBP-2006-0090, CBP Dec. 07-76), FR Pub 09/17/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-4551.pdf