Details of CBP Final Rule on Mexican Cement Import and Export Licensing Requirements (Entries Require Licenses Beginning April 5th)
U.S. Customs and Border Protection (CBP) has issued a final rule, effective April 5, 2007, to amend 19 CFR Parts 12 and 163 to set forth special requirements for the entry of certain cement products from Mexico requiring a U.S. Department of Commerce import license, including the requirement that the importer submit to CBP an import license number on the entry summary (CBP Form 7501) or on the application for foreign trade zone (FTZ) admission and/or status designation (CBP Form 214).
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Additionally, the importer must submit a hard copy of the original valid Mexican export license with the entry documentation or provide such document to the FTZ operator, unless directed otherwise by CBP.
Mexican Cement Licensing Requirements are Scheduled to be Effective April 5th
According to sources at CBP, these license requirements begin April 5, 2007. In addition, filers are able to obtain their user identification (ID) numbers for the ITA's import licensing system at http://ia.ita.doc.gov/cement-agreement/ .
(See ITT's Online Archives or 03/08/07 news, 07030815, for BP summary of ITA final rule on its Mexican Cement import licensing system. See ITT's Online Archives or 03/07/07 news, 07030700, for BP summary announcing availability of the ITA and CBP final rules.)
Highlights of CBP's Regulations on Entry of Mexican Cement
CBP's final rule amends 19 CFR Part 12 by adding a new section 12.155 (Entry or admission of Mexican cement products). Highlights of these new regulations include the following provisions:
Termination date. The Agreement on Mexican Cement will terminate on March 31, 2009, unless it has been terminated prior to that date. These CBP regulations are applicable for as long as the Agreement remains in effect.
Reporting the import license number. For every entry of merchandise for which a Mexican cement import license is required to be obtained from the ITA, the entry (unless otherwise directed by CBP) must be a paper filing and the license number must be included:
on the CBP 7501 entry summary, at the time of filing, in the case of merchandise entered or withdrawn from warehouse for consumption in the customs territory of the United States, except for Mexican cement that was previously admitted to a FTZ and for which an import license number was already provided to CBP on the CBP Form 214. If the CBP 7501 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 cement; or
on CBP Form 214 or on an electronic version of CBP Form 214 (CBP Form e-214), as required by CBP, at the time of filing under part 146 of this chapter, in the case of an application for FTZ admission and/or status designation.
Recordkeeping. There is no requirement to present physical copies of the import license to CBP at the time of filing either the CBP Form 7501 or CBP Form 214; however, importers must maintain copies in accordance with applicable recordkeeping regulations.
Export license information. Under ITA regulations at 19 CFR 361.101(d), importers of Mexican cement must submit an original, physical copy of a valid Mexican export license to CBP with the entry summary documentation (unless otherwise directed by CBP).
In the case of an application for FTZ admission and/or status designation, the original physical copy of a valid Mexican export license must be provided to the FTZ operator with the CBP Form 214 (unless otherwise directed by CBP) and, in such case, upon withdrawal from the FTZ no paper export license will be required to be submitted to CBP with the merchandise's subsequent entry summary documentation.
For multiple shipments at multiple ports, or multiple entries at one port, the original physical copy of the Mexican export license must be submitted to CBP (unless otherwise directed by CBP) with the first entry summary or to the FTZ operator with the CBP Form 214 or CBP Form e-214, as required by CBP, and a copy of the export license must be presented with each subsequent entry summary or CBP Form 214/e-214.
Importers must also retain copies of the export license issued by the Mexican Government pursuant to the recordkeeping requirements set forth in 19 CFR 163.
(The final rule also amends 19 CFR 163 (Recordkeeping) to list the ITA import license and Mexican export license as Interim (a)(1)(A) documents.)
CBP contact: Alice Buchanan (202) 344-2697
CBP final rule (CBP Dec. 07-05 and USCBP-2006-0020, FR Pub 03/06/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-997.pdf
BP Note
According to the ITA's final rule, Mexican cement subject to the agreement is defined as follows:
Gray portland cement and clinker from Mexico. Gray portland cement is a hydraulic cement and the primary component of concrete. Clinker, an intermediate material produced when manufacturing cement, has no use other than being ground into finished cement. Specifically included within the scope of this definition are pozzolanic blended cements and oil well cements. Specifically excluded are white cement and Type "S" masonry cement.
Gray portland cement is currently classifiable under HTS 2523.29 and cement clinker is currently classifiable under HTS 2523.10. Gray portland cement has also been entered under HTS 2523.90 as "other hydraulic cements." These HTS subheadings are provided for convenience and CBP purposes; the written definition is controlling for purposes of the agreement.