CBP Issues Revised Instructions on the ABI System Requirements for Mexican Cement Import License Numbers, Etc. (Licenses Required Effective April 5th)

Among other things, this licensing system requires importers to register, obtain a user identification (ID), and obtain import licenses from the ITA for subject Mexican Cement, and to submit to CBP the associated import license number on the entry summary (CBP Form 7501) or on the application for foreign trade zone (FTZ) admission (entry) and/or status designation (CBP Form 214). A hard copy Mexican export license must also be submitted with these documents.

Licensing Requirements Effective April 5th, ACS Already Modified

According to this new message and the recent final rules issued by the International Trade Administration (ITA) and CBP, the Mexican Cement licensing requirement is effective for subject entries with a duty computation date¹ of April 5, 2007or later. In addition, ACS has already been modified for this requirement.

Differences Between Prior Message and New One

Most key aspects of the two administrative messages are the same; however, the new message lists the effective dates, omits most references to the hard copy Mexican export license requirement, adds registration and user ID instructions for accessing the ITA's import licensing system, corrects certain editing errors, etc.

Online User ID Number is Prerequisite for Obtaining Cement Import Licenses

CBP states that any importer, importing company, customs broker or importer's agent with a U.S. street address may register and obtain the user ID number necessary to log on to the automated Mexican Cement import license issuance system. Foreign companies may obtain a user ID number if they have a U.S. address through which they may be reached; P.O. Boxes will not be accepted. A user ID number normally will be issued within two business days.

Companies may register at http://ia.ita.doc.gov/cement-agreement/application/cement-license-test.html. A phone/fax registration option is alsoavailable. CBP states that filers will be able to obtain their user ID numbers on or after March 16, 2007 and apply for import licenses on or after April 5, 2007.

ABI System Requirements for Mexican Cement Import Licenses

According to CBP, the following system requirements include (partial list):

Subject tariff numbers will have a "09" permit indicator, etc. Subject tariff numbers will have a permit indicator of "09" indicated on the tariff record. The harmonized reference file record identifier 'V2' and the harmonized query transaction record identifier 'W2', miscellaneous permit indicator field (position 75-76) will display this permit indicator.

Scope of the Mexican Cement import license requirement. The tariff numbers that will be subject to the Mexican Cement import license requirement are: 2523.10.00, 2523.29.00, and 2323.90.00. (However, the ITA's final rule states that these tariff numbers are for convenience and CBP purposes. Filers should refer to the ITA's written definition of subject Mexican cement (certain gray portland cement and clinker), which is controlling.)

Cement must be product of Mexico. The Mexican cement must be a product of Mexico (MX), and be so indicated in the entry summary, record identifier 40 record, positions 6-7.

Import license number will be required for certain entry types. The Mexican cement import license number will be required for the following entry types: Informal entry types: 11, 12; consumption entry types: 01, 02, 03, 07; and warehouse withdrawal types: 31, 32, 34, 38. In addition, the cement import license will be optional for warehouse entry types 21/22 and for temporary importation bond (TIB) entry type 23.

Reporting the import license number. The import license number must be entered on the entry summary (EI) in record identifier 52 (Input) in the miscellaneous permit/license field. It must be reported in column 33 of the newly formatted CBP form 7501 (or column 34 of the previous version of the form, which remains valid.) On the CBP Form 214, the import license number must be reported in Box 16. For the electronic version of this form (CBP Form E-214), the import license number must be reported according to earlier instructions.

If the entry summary requires more than one cement import license, each license number must be reported within the column on the line item covering the subject Mexican Cement.

(See ITT's Online Archives or 09/26/06 news, 06092615, for BP summary of CBP's September 2006 administrative message. See ITT's Online Archives or 03/08/07 and 03/13/07 news, 07030815 and 07031307, for BP summaries of ITA and CBP final rules on the new Mexican Cement import license requirements, as well as the requirement for a hard copy Mexican Cement export license.)

¹ According to CBP, the following Customs and Trade Automated Interface requirements (CATAIR) references define how the system determines the duty computation date: EI (Entry Summary) Record Identifier 10, Input, Note 3; EI (Entry Summary) Record Identifier 20, Input, Note 2; and EI (Entry Summary) Record Identifier 30, Input, Note 6.

Additional ITA information available at http://ia.ita.doc.gov/cement-agreement/index.html

CBP ABI administrative message (07-0062, dated 03/15/07) available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2007/2007-0062.ADM