CBP Instructions for NAFTA Originating Mexico Sugar/Products Which are Now Duty/TRQ Free
U.S. Customs and Border Protection has issued a notice reminding the trade that as of January 1, 2008, North American Free Trade Agreement originating raw or refined sugar and sugar-containing products from Mexico are not subject to quota restrictions and may be entered duty-free under NAFTA.
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(In September 2007, President Bush issued Presidential Proclamation 8180, providing accelerated duty elimination for a quantity of Mexico sugar and sugar-containing products that are NAFTA originating under Harmonized Tariff Schedule (HTS) General Note 12 entered during the period of October 1, 2007 through December 31, 2007. See ITT's Online Archives or 10/04/07 news, 07100420, for BP summary.)
Mexico Has Full NAFTA Benefits Effective January 1, 2008 - No Raw or Refined Sugar/Products TRQ/Duty
As of January 1, 2008, Mexico received its full NAFTA benefits, including the duty-free treatment of and elimination of tariff-rate quotas (TRQs) for originating raw or refined sugar and sugar-containing products.
(See ITT's Online Archives or 01/09/08 news, 08010910, for BP summary of Mexico receiving full NAFTA benefits on January 1st, etc.)
Affected Tariff Numbers
According to CBP, the affected raw or refined sugar or sugar containing products tariff numbers are:
| HTS Number | Brief Product Description |
|---|---|
| 1701.11.5000 | Certain raw cane sugar not containing added flavoring or coloring matter |
| 1701.12.5000 | Certain raw beet sugar not containing added flavoring or coloring matter |
| 1701.91.3000 | Certain refined sugar, containing added coloring but not added flavoring matter |
| 1701.99.5010 | Certain refined specialty sugar |
| 1701.99.5090 | Certain refined sugar (other than specialty sugar) |
| 1702.90.2000 | Certain sugar and syrups, containing 6% or less soluble non-sugar solids |
| 2106.90.4600 | Certain syrups derived from cane or beet sugar, containing added coloring but not added flavoring matter |
Instructions for Duty/TRQ Free NAFTA Claims for Mexico Raw or Refined Sugar/Products
According to CBP, NAFTA duty-free and TRQ-free claims for raw or refined sugar or sugar-containing from Mexico should be made using the special program indicator MX, in combination with the appropriate over-quota HTS number(s) listed above.
A certificate of quota eligibility (CQE) is not required. However, filers must continue to submit the entry summary as a type 02 until the necessary Automated Commercial System changes have been made. CBP adds that ports should continue to input quota - ACS will indicate a "non-quota condition."
CBP contact- Laurie Dempsey (202) 863-6509
QBT-08-504 (dated 01/30/08) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2008/08_504.ctt/08_504.doc
BP Note
According to the American Sugar Alliance, the U.S. and Mexican sugar industries have agreed on a joint set of recommendations to their respective governments for an agreement to facilitate the integration of the U.S. and Mexican sweetener markets under
NAFTA and to coordinate their sugar policies.
Summary of Recommendations (dated January 2008) available at http://www.pulpfusion.com/pulpfusion/uploadfiles/asa_9/SummaryofRecommendations_jan15_08.pdf