CBP Issues ABI Requirements for Filing KORUS Entry Summary Claims
U.S. Customs and Border Protection has issued a notice advising the trade on the system requirements needed to file an entry summary with a Korea Free Trade Agreement (KORUS) claim in the Automated Commercial System (ACS). CBP states it will advise the trade in a future message when the below system changes have been completed in ACS (EI). When these changes takes effect, the trade will also be able to file such claims in the ACE AE.1 CBP states that KORUS will have an effective date of March 15, 2012.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Six ABI System Requirements Must Be Met to File Korea FTA Claim
To claim Korea free trade benefits, the following ACS Automated Broker Interface (ABI) system requirements must be met:
1.Country of origin must be 'KR'. The country of origin field is reported on the entry summary record identifier 40 (input), positions 6 -- 7.
2.Country of export must be 'KR'. The country of export field is indicated in the entry summary record identifier 50 record (positions 69 -- 70).
3. Tariff number associated with the Korea FTA claim must contain special program indicator ‘KR’. The tariff number with the Korea free trade indication may either be free or a reduced rate. If the rate is reduced, the duty rate will be indicated in the special rate field with the ISO code of ‘KR’. The duty rate for tariff provisions 9920.95.00 and 9920.99.00 will be associated with the duty rate provided for the originating goods of Korea in the applicable subheading for the alternate tariff number.
(For example, tariff number 9920.99.00 applies to apparel goods of chapter 61 or 62. The duty rate determination for 9920.99.00 will be the duty rate associated with the Korean FTA rate associated with the chapter 61 or 62 tariff number.)
4. SPI indicator ‘KR’ (ISO code for Korea) must be transmitted. The special program indicator (SPI) is reported on the entry summary record identifier 50 (input), special program indicator (country) field (positions 78 -- 79) or records 70/80/81 special program (country) indicator field (positions 79 -- 80).
5. Edits to Merchandise Processing Fee for Korea FTA claims. Korea free trade claims are exempt from the merchandise processing fees (class code 499 and class code 311). CBP states there will be situations where a tariff number is duty-free. Duty-free tariff numbers do not have SPIs. If the merchandise associated with these duty-free tariff numbers qualifies under the Korean originating FTA provisions, the MPF exemption can be made by transmitting the country code special program indicator ‘KR’ (entry summary record identifier 50 input record, positions 78 - 79) or records 70/80/81 special program (country) indicator field (positions 79 -- 80).
6. Certain tariff numbers are subject to quota. Tariff numbers 99200410 -- 99200430 and 99209500 -- 99209900 are subject to quota.
CBP Contacts for Questions on the Korea FTA
Questions related to the Korea FTA can be sent to the following CBP contacts:
- Quota issues - Richard Wallio, 202-863-6508, richard.wallio@dhs.gov
- Textile issues - Jacqueline Sprungle, 202-863-6517, jacqueline.sprungle@dhs.gov
- Non-textile policy and procedure issues - Katrina In-Suk Chang, 202-863-6532, katrina.chang@dhs.gov
- System related issues may be referred to filers assigned client representative or to ACS - Tony Casucci, 571-468-5053, anthony.casucci@dhs.gov.
1The application identifier for entry summary in ACS is "EI" and in ACE is "AE." As ACE AE has no edits in place, all that will need to be done by filers is to use the SPI "KR."
(See ITT's Online Archives 12022219 for summary of the U.S. Trade Representative Ron Kirk Announcing that KORUS would take effect on March 15.
See ITT's Online Archives 11100617 and 12011010 for information on obtaining product duty rates under KORUS and final text of the trade agreement.)
(CSMS #12-000059, dated 02/28/12)
*First paragraph, second to last sentence corrected on 03/15/12. That sentence had erroneously said that "When KORUS takes effect, the trade will also be able to file such claims in ACE AE (entry summary). It is when the ACS ABI changes take effect for the entry summary, that filing will be able to (also) occur in ACE AE.