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CBP Proposes to Relax Requirements for Imports from U.S. Territories Outside Customs Territory

CBP is seeking to revise its regulations to lessen requirements for importing goods from U.S. territories, known as insular possessions, that fall outside the customs territory, it said in a notice of proposed rulemaking. Currently, to receive duty-free treatment of imports from U.S. territories other than Puerto Rico, the importer is required to file a signed CBP Form 3229 with each entry that includes the signature of a customs official at the port of export. The agency proposes to update its regulations in 19 CFR Part 7 to remove the export verification altogether and only require the importer to provide the form upon CBP request.

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Comments Due March 17

CBP is seeking public comment by March 17 on the possible relaxation of the required filing of Form 3229 with each entry of goods from insular possessions. The agency regulations now require verification and signature by a local customs officer at the port of export. The agency would like to revise the requirement "in order to align this certification process to CBP’s post-importation verification process that is used for other certificates of origin required under the various free trade agreements or trade preference programs and to ease the administrative burden on shippers as well as importers seeking duty-free treatment of goods from U.S. insular possessions by making the entry process more efficient," it said.

The proposed rule would remove the port of export verification requirement and require that the importer provide the form to CBP only upon request, rather than with each entry, said CBP. "Under the proposed rule, the importer must have in his possession, at the time of entry or entry summary, a completed CBP Form 3229 and must present the form upon request by the Port Director or his delegate," it said. Over the last six fiscal years, on average there have been about 3,545 shipments of goods each year, imported by about 135 importers, from insular possessions, said CBP. "Although this rule may have an effect on a substantial number of importers, CBP believes that the economic impact of this rule will not be significant," it said. The economic impact to shippers is also not expected to be significant, the agency said.

(Federal Register 01/14/13)