CBP Guidelines on ABI Procedures for AD/CV Deposits that are Ad Valorem, Specific Rate, or Both

Ad valorem rate only. Almost all AD/CV deposit rates are ad valorem rates. In these instances, the value of the item is multiplied by a stated percentage factor.

CBP states that when an Automated Broker Interface (ABI) filer transmits an AD/CV summary with an ad valorem rate, the deposit rate is transmitted in the 60 record of the entry summary input application. The CV deposit rate is entered in the CV deposit rate field (positions 69-73) and the AD deposit rate is entered in the AD deposit rate field (positions 74-78).

Specific rate only. CBP states that on occasion, the AD or CV deposit rate associated with an AD/CV case will be a rate other than an ad valorem rate. CBP states that an example of a non-ad valorem rate would be a specific rate of duty which is calculated as a price multiplied by a unit of measure (e.g. 5 per kilogram).

CBP states that when the ITA determines that a case requires a non-ad valorem deposit rate, it will post the deposit rate field in CBP's AD/CV duty case file with spaces along with the appropriate effective date. The non-ad valorem rate will be indicated in special instructions posted for the case in question.

To file an ABI AD/CV summary with a non-ad valorem rate, CBP states the following procedure should be followed:

If the non-ad valorem rate is indicated for a CV case, spaces should be transmitted in the CV deposit rate field (60 Record, positions 69-73). If the non-ad valorem rate is indicated for an AD case, spaces should be transmitted in the AD deposit rate field (60 record, positions 74-78).

CBP states that a warning message "AAX, rate accepted/duty not calculated" will be returned to the filer to indicate that CBP has accepted the AD/CV line item. CBP adds that it is the responsibility of the filer to verify that the entered AD/CV duty amounts properly reflect the AD/CV deposit rate calculations that were issued for that case.

(An example of a case that has a specific rate of duty is AD case A570-848-003 (Freshwater crawfish tail meat from China).)

Either ad valorem rate or specific rate. CBP states that when the ITA indicates that the deposit rate can either be an ad valorem rate or a specific rate for the same time period, the same system procedures described above regarding "specific rate only" will apply.

The ITA will post spaces in the deposit rate field in CBP's AD/CV duty case file. CBP states that the ACS system will not allow the filer to enter data in the deposit rate field in this situation, even though the AD/CV duty amount may be based on an ad valorem calculation. CBP states that ABI will reject any deposit rate entered in the 60 record when the case has spaces indicated in the deposit rate field for that case.

CBP states that a warning message "AAX, rate accepted/duty not calculated" will be returned to the filer to indicate that CBP has accepted the AD/CV line item. CBP states that that it is then the responsibility of the filer to verify that the entered AD/CV duty amounts properly reflect the AD/CV deposit rate calculations that are issued for that case and time period.

(CBP notes that for CV case (C-580-851-000), which concerns dynamic random access memory semiconductors from South Korea, the deposit rate can either be an ad valorem rate or a specific rate for the same time period. CBP explains that the proper deposit rate to be used depends on the actual circumstance related to that case.)

(See ITT's Online Archives or 02/27/04 news, 04022740, for BP summary of the CBP's announcement that blanket certifications will be allowed for C-580-851, with links to other summaries on this case.)

CBP Contacts - Tony Casucci (202) 344-1035

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CBP Adm: 02-1632 (dated 11/26/02) available via email by emailing documents@brokerpower.com

CBP Adm: 04-1115 (dated 04/28/04) available via email by emailing documents@brokerpower.com