Thursday, January 16, 2014

The Spotlight Newsletter

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January 15, 2014

HTSUS General Statistical Note Update Allows for MPF Exemption on Certain Products

Dear Customers,

HTSUS General Statistical Note 3(c) was updated in the 2014 HTSUS to indicate that goods imported under the Civil Aircraft Agreement, Pharmaceutical Agreement and Intermediate Chemicals for Dyes Agreement (SPI "C," "K," and "L," respectively) that are the product of a country with which the United States has a free trade agreement (FTA) that provides the MPF exemption can be imported free of merchandise processing fee (MPF) using SPI C#, K#, and L#, even if the FTA's more stringent origination rules and imported directly rules are not met. This applies to all FTAs that provide the MPF exemption (NAFTA, Chile, Singapore, Australia, Israel, Bahrain, Oman, CAFTA, Peru, Korea, Colombia, and Panama).

The 2014 HTSUS GSN 3 text reads:

(c) (i) Goods of a country with which the United States has a free trade agreement, that meet the terms of that agreement, when marked or eligible to be marked with their country of origin, and entered with any of the following special program indicators (SPIs) prefacing the 10-digit HTS number are exempt from the Merchandise Processing Fee (MPF):


United States-Australia Free Trade Agreement                                         AU
United States-Bahrain Free Trade Agreement Implementation Act              BH
United States-Chile Free Trade Agreement                                               CL
United States-Columbia Free Trade Agreement                                         CO
North American Free Trade Agreement: Goods of Canada                          CA
North American Free Trade Agreement: Goods of Mexico                          MX
United States-Korea Free Trade Agreement Implementation Act                 KR
United States-Oman Free Trade Agreement Implementation Act                 OM
Dominican Republic-Central America-United States Free Trade Agreement
Implementation Act                                                                                 P or P+
United States-Panama Trade Promotion Agreement Implementation Act      PA
United States-Peru Trade Promotion Agreement Implementation Act           PE
United States-Singapore Free Trade Agreement                                         SG

(ii) Goods of Israel, when marked or eligible to be marked with their country of origin are exempt from the Merchandise Processing Fee (MPF) when entered with the SPI "IL" prefacing the 10-digit HTS number.

(iii) Goods of Canada, when marked or eligible to be marked with their country of origin, that comply with the terms of the Automotive Products Trade are exempt from the Merchandise Processing Fee (MPF) when entered with the SPI "B#" prefacing the 10-digit HTS number.

(iv) Goods of a country with which the United States has a free trade agreement that provides for MPF exemption when marked or eligible to be marked with their country of origin, are exempt from the Merchandise Processing Fee (MPF) when in compliance with the following special programs and entered with any of the following SPIs prefacing the 10-digit HTS number:

Agreement on Trade in Civil Aircraft                                               C#
Agreement on Trade in Pharmaceutical Products                            K#
Uruguay Round Concessions on Intermediate Chemicals for Dyes    L#

Please note that although the Automotive Products Trade Act (SPI "B" and "B#") is still in the Regulations (19 CFR 10.84) and HTSUS (General Note 5 and this GSN), although it has been superseded by the North American Free Trade Agreement (NAFTA) and should not be claimed.

Source: CSMS # 14-000003 2014 HTSUS GSN 3(c) Updated to Clarify Eligibility Under SPI C#, K#, and L#
Reference: The 2014 HTSUS GSN 3(c) is available on the USITC website at (page 853).

If you have any questions, please contact your DHL Global forwarding representative or chb.consulting@dhl.com 

Regards,

Paul Vroman
Manager, Regulatory & Compliance Consulting
DHL Global Forwarding
U.S. 

 

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