CBP Overview of on the Miscellaneous Trade and Technical Corrections Act of 2006
U.S. Customs and Border Protection (CBP) has issued a memo which provides an overview of the Miscellaneous Trade and Technical Corrections Act of 20061 (Act) that was signed into law on August 17, 2006 as Public Law (P.L.) 109-280.
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(According to CBP, further guidance and instruction regarding the changes resulting from this Act will be forthcoming.)
CBP states that the majority of the provisions contained in the Act became law on September 1, 2006. In addition, Automated Commercial System (ACS) programming changes have been completed for the Harmonized Tariff Schedule (HTS) temporary duty suspensions.
Highlights of the Miscellaneous Trade and Technical Corrections Act
CBP's memo highlights the Miscellaneous Trade and Technical Corrections Act as follows:
Temporary duty suspensions and reductions (new & existing). Sections 1411-1606 of the Act identify new duty suspensions and reductions for a variety of products, varying effective dates and dates of expiration. For most, the effective date is the 15th day after the date of enactment of the Act, i.e. they are effective September 1, 2006. For a limited number, the effective date is specified, i.e. January 1, 2007 or January 1, 2008. The suspensions and reductions expire at varying times ranging from December 31, 2006 through December 31, 2009.
As for existing duty suspensions and reductions, Section 1611 provides for the extension of these suspensions and reductions through December 31, 2009. Modifications of certain duty reduction provisions modify the reduced rate, amend cited subheadings within the provisions to accord with changes in the tariff, amend descriptive language in some provisions, and extend the duty reductions through December 31, 2009 for certain goods.
(See ITT's Online Archives or 08/22/06 news, 06082210, for BP summary of various new duty suspensions and reductions, etc. covered under this Act.)
Liquidation/reliquidation of certain entries. Sections 1621 through 1624 identify the requirement for liquidation or reliquidation of certain specified entries. If owed, refunds to be paid. Some provisions specifically provide for payment of interest with refunds, but some make no mention of payment of interest.2 CBP is to take action without further requests within 90 days after date of enactment of Act, November 15, 2006.
(See ITT's Online Archives or 09/25/06 news, 06092510, for BP summary of CBP memo on the liquidation/reliquidation of certain entries, listed entries, etc.)
Vessel repair duties. Section 1631 of the Act amended 19 USC 1466(h), concerning vessel repair duties. This amendment applies to vessel equipment, repair parts, and materials installed on or after April 25, 2001. (See ITT's Online Archives or 08/16/06 news, 06081610 for BP summary vessel repair duties, etc. under this Act.)
Suspending a new shipper's option of posting bond, etc. Section 1362 of the Act amended 19 USC 1675 by suspending a new shipper's option of posting a bond or other security for entries subject to an antidumping (AD) or countervailing (CV) duty new shipper review (Canada and Mexico are excluded). This suspension is in effect from April 1, 2006 until June 30, 2009.
(See ITT's Online Archives or 08/14/06 news, 06081405, for BP summary of temporary suspension of AD/CV new shipper bonding privileges, etc. under this Act; See ITT's Online Archives or 08/22/06 news, 06082205, for BP summary of CBP memo and message announcing the temporary suspension and noting the exclusion for Canada and Mexico.)
Extension and modification of duty suspension on wool productions, etc. Section 1633 of the Act provided for extension and modification of duty suspension on wool productions; wool research fund; wool duty refunds. (See ITT's Online Archives or 08/16/06 news, 06081610 for BP summary of extension of temporary wool duty reductions, etc. under this Act.)
Authority to modify the HTS in order to carry out DR-CAFTA amendments, etc. Section 1634 gives the President authority to proclaim modifications to the HTS as necessary to carry out amendments to the Dominican Republic-Central American-U.S. Free Trade Agreement (DR-CAFTA) 3. It also provides CBP authority, retroactive to entries made on or after April 1, 2006, to require importers to file a certificate of eligibility for goods from Nicaragua subject to a tariff preference level (TPL) limitation. (See ITT's Online Archives or 08/11/06 news, 06081115, for BP summary of DR-CAFTA modifications under this Act.)
Tariff Act of 1930 amended. Section 1635 of the Act amended various laws of the Tariff Act of 1930, including: 19 USC 1484 on the entry of merchandise, 19 USC 1520(a) on refunds and errors: cases in which refunds are authorized, and 19 USC 1562 on manipulation in warehouse. (See ITT's Online Archives, or 08/21/06 news, 06082115, for BP summary of the amendments to the Tariff Act made under the Act.)
1 The Miscellaneous Trade and Technical Corrections Act of 2006 is also referred to as the Pension Protection Act
2 This CBP memo states some provisions in 19 USC 1621-1624 specifically provide for the payment of interest with refunds, while others make no mention of payment of interest. However, in a September 15, 2006 memo, CBP stated that each section (1621-1624) that requires a refund shall be refunded with interest. (See ITT's Online Archives or 09/25/06 news, 06092510 for BP summary of this memo and link to CBP's 09/25/06 memo.)
3 DR-CAFTA is also abbreviated as "CAFTA-DR"
(See ITT's Online Archives or 08/22/06 news, 06082210, for part V, the final part of BP's summary on the Pension Protection Bill and links summaries I-IV.)
CBP contact - Monica Crockett monica.crockett@dhs.gov
CBP Memorandum (dated 09/25/06) available at http://www.cbp.gov/linkhandler/cgov/import/cargo_summary/misc_trade_tech_corrections_act/hr4_misc_trade_tech_corr_act/technical_act.ctt/technical_act.doc