CBP's FAQ on January 1, 2005 Elimination of Most Textile and Apparel Quotas
U.S. Customs and Border Protection (CBP) has posted a list of frequently asked questions (FAQ) and responses to its Web page regarding the January 1, 2005 full integration (elimination of quotas) for textiles and textile apparel (textiles) manufactured in countries that are members of the World Trade Organization (WTO).
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This is Part III, the final part of a multi-part series of summaries and focuses on required textile documents, quota preprocessing procedure (pre-file), notices to the ports and trade, and Automated Broker Interface (ABI) programming changes.
FAQs on Required Textile Documents
FAQ 14 - Textile Declaration required for goods exported in 2004. In response to a question as to whether importers will need to provide a Textile Country of Origin Declaration (Textile Declaration) for goods exported in 2004, CBP states that this Declaration will be required for goods exported in 2004, pursuant to 19 CFR 12.130(f).
FAQ 15 - CBP to review need for Textile Declaration for goods exported in or after 2005. In response to a question asking whether a Textile Declaration will be required for goods exported in or after 2005, CBP explains that it is responsible for enforcing other international textile agreements such as free trade agreements, trade preference programs, non-WTO quota agreements, and safeguard actions. CBP states that it will review this issue to determine the need for continuation of this requirement. However, until changed, a Textile Declaration will be required pursuant to 19 CFR 12.130(f).
FAQ 16 - Elimination of the quota charge statement for non-WTO textiles. In response to another question asking if the quota charge statement will be eliminated in the future, CBP states that the quota charge statement is currently included in the "List of Records/Information Required for the Entry of Merchandise" as outlined in the Appendix to 19 CFR 163. CBP states that the elimination of the quota charge statement will be taken under advisement.
However, elimination of the quota charge statement will require a change to 19 CFR 163, and until changed, the quota charge statement will be required for quota-class merchandise manufactured in a non-WTO country.
FAQ 17 - Continued requirement of certificates of eligibility. In response to a question asking if certificates of eligibility will continue to be required for tariff preference levels (tariff rate quotas) that result from free trade agreements or trade legislation, CBP states that such certificates will continue to be required. CBP explains that the final phase of the WTO integration does not affect shipments of textiles eligible for TPLs.
FAQ on Quota Preprocessing Procedure (Pre-File)
FAQ 18 - Final integration should not affect quota preprocessing (QPP). In response to an inquiry as to whether the final integration will affect QPP, CBP responds that it should not affect QPP for goods exported on or after January 1, 2005. CBP is in the process of preparing proposed regulations for QPP and anticipates that these regulations will be finalized and published by January 1, 2005.
FAQ on Notices to Ports, Trade
FAQ 19 - Notification to ports and trade of processing procedures. In response to a question asking when CBP will notify the ports and the trade regarding processing procedures as a result of the final phase of the WTO integration, CBP states that instructions will be issued to field personnel and the trade regarding full integration once CBP is formally directed by the CITA. CBP adds that all instructions and updates will be posted to its WTO quota elimination Web page.
FAQs on ABI Programming Changes
FAQ 20 - Timeline & Status for ABI programming changes. In response to a question asking about the timeline and status of the programming changes that will be needed to remove current requirements in ABI for those categories that will be fully integrated on December 31, 2004, CBP states that it anticipates completing all programming changes by the end of December. The programming involves updating the ACS automated quota/visa records for WTO countries so that the system does not require the filing/transmission of a quota entry or a visa. CBP states that these changes will allow for the transmission of paperless entries.
FAQ 21 - No programming changes for non-WTO countries, etc. In response to a question asking if any programming changes will occur for non-WTO countries, CBP states that this will not happen. According to CBP, all automated visa/quota records for non-WTO countries will remain in place. In addition, brokers will still be required to file entries using entry type code 02 with the appropriate documents.
CBP sources add that safeguard quotas are expected to be handled the same way as quotas are now, including implementation by date of export.
(See ITT's Online Archives or 07/06/04 and 07/07/04 news, (Ref:04070620) and 04070710, for Parts I & II of this series of summaries, respectively. )
CBP's WTO quota elimination Web page, which contains this FAQ, can be accessed at http://www.cbp.gov/xp/cgov/import/textiles_and_quotas/wto_quota_elemination/