CBP to Use "ckg" for All Dairy Items Subject to Aug 1 Fee
U.S. Customs and Border Protection has issued a CSMS message announcing that it has decided to add “cows milk weight per kilogram” (ckg) as a third unit of measure for certain tariff numbers that will be subject to the new Agricultural Marketing Service (AMS) dairy product fee assessment.1
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AMS has requested that CBP begin to collect a dairy product import fee on August 1, pursuant to its March 2011 final rule. The dairy fee will equal the assessment of $0.01327 times the reported amount indicated in the ‘ckg’ unit of measure field.
(On March 18, AMS issued a final rule amending the Dairy Promotion and Research Order to implement an assessment (fee) on imported dairy products and to add importer representation to the National Dairy Promotion and Research Board. The final rule’s amendments were effective April 1, 2011, except for the implementation of the assessment on imported dairy products, which is effective August 1, 2011.)
“ckg” to be Used for all Numbers Subject to Fee (7 Had been Excluded Earlier)
In April 2011, CBP announced the AMS dairy product fee assessment system requirements that filers and software vendors could use for programming purposes.
At that time, CBP said that the HTS numbers subject to the dairy fee would be updated in the near future with ’ckg,’ a new unit of measure indicating the cow’s milk solids weight in kilograms. However, CBP had stated that the following seven tariff numbers subject to the dairy fee would not have the ‘ckg’ unit of measure, and the trade would be responsible for computing the proper dairy fee assessment:
- 0401.10.0000
- 0401.30.5000
- 0401.30.7500
- 2105.00.1000
- 2105.00.2000
- 2202.90.2400
- 2202.90.2800
CBP has now decided to add ‘ckg’ to the above tariff numbers too. The addition of the ‘ckg’ unit of measure to the above tariff numbers should assist the trade in implementing the dairy fee assessment for these tariff numbers.
HTS Will Not Include Third Unit, Just CBP’s Database
CBP notes that the ITC printed HTS and tariff website will not indicate the third unit of measure for the above seven tariff numbers. The third unit of measure is being added to the CBP tariff database to assist the trade in implementing the AMS dairy fee assessment.
Class Code 110 to be Used to Report Dairy Products
In its April 2011 message, CBP stated that Class Code 110 will be used to report the dairy products. The dairy fee is required effective for goods with a duty/fee computation date of August 1, 2011. The following CATAIR references define how the system determines the duty/fee computations date:
- EI (Entry Summary) Record Identifier 10, Input, Note 3
- EI (Entry Summary) Record Identifier 20, Input, Note 2
- EI (Entry Summary) Record Identifier 30, Input, Note 6
CBP also noted that the QR application (Daily Statements) needs to be modified to display the dairy fee information, including changes to record identifier QC and record identifiers QG and QL (see CSMS message for these record layouts).
Fee to be Based on Cow’s Milk Solids Content of Imported Dairy Products
CBP stated that information regarding the dairy fee can be found in AMS’ final rule. The final rule lists certain HTS numbers in 0401-0406, 1517, 1702, 1704, 1806, 1901, 2105-2106, 2202, 3501, and 3502 as being subject to the new fee. (The HTS numbers subject to the new fee are also available in 7 CFR 1150.152(b)(1).)
The rule indicates that the fee will be based on the cow’s milk solids content of the imported dairy product at a rate of $0.01327 per kilogram of cow’s milk solids.
1Also termed a “tax.”
(See ITT’s Online Archives or 04/20/11 news, 11042021, for BP summary of CBP’s April message on the system requirements for collecting the new fee.
See ITT's Online Archives or 03/18/11 news, 11031815, for BP summary of AMS' final rule on the new dairy import tax.)
(CSMS #11-000128)