CBP Completes ABI Changes, to Grant 30 Day Grace Period for Enforcing Softwood Lumber Import Data/Declaration

According to CBP, the trade can begin transmitting the data elements electronically effective August 18, 2008, the effective date of these new requirements.

(See ITT's Online Archives or 07/31/08 news, 08073115, for BP summary of the CSMS message providing the ABI system requirements for these three data elements.)

30 Day Enforcement Grace Period

CBP sources state that since the interim rule on these data elements has not yet cleared Treasury, it will grant a 30-day grace period for enforcement of the reporting of the elements (until approximately September 18, 2008).

CBP will issue a notice announcing the grace period soon. Sources add that instructions to the field on these new requirements were sent on August 18, 2008.

SLA 2008 Requires the Trade to Submit Export Price, Export Charges, Etc.

The SLA 2008 requires the trade to submit to CBP the following additional trade data elements for softwood lumber and softwood lumber products, regardless of country of export or origin:

• export price² for each shipment, calculated as specified by the SLA 2008;
• estimated export charges³, if any, applicable to each shipment; and
• importer declaration⁴ indicator

CBP Example of How to Report Data/Declaration

CBP states that the export price and export charges should be reported in whole U.S. dollars, and provides the following example of how to report the export price, importer declaration indicator, and export charges:

Example: In this situation, the softwood lumber price is $5100, the softwood lumber export charge is $5500 and the importer is submitting the importer declaration. The trade would submit the following data in the 52 record:

Data Elements Needed for Each 7501 Line; Record Retention Requirement

CBP has previously stated that these data elements must be submitted for each line of imported softwood lumber and softwood lumber products subject to the SLA 2008 on the entry summary, CBP Form 7501.

In addition, CBP Form 7501 and any supporting documentation must be retained by the importer in accordance with CBP record keeping requirements and be produced upon request.

(Softwood lumber tariff numbers that are subject to the reporting of the above data elements have a permit indicator of '11' on the tariff record. The Harmonized Reference File Record Identifier 'V2', miscellaneous permit indicator field (positions 75 - 76) and the Harmonized Query Transaction Record Identifier 'W2' miscellaneous permit indicator field (positions 75 - 76) will display the permit indicator 11.)

¹The 2008 Farm Bill (Public Law 110-246) contains the Softwood Lumber Act of 2008 (SLA 2008) which establishes an import data/declaration program under which importers are required to submit the export price and export charges data elements, and an importer declaration, for 'specified' softwood lumber and softwood lumber product imports.

²Export price means either (i) in the case of softwood lumber or a softwood lumber product that has undergone only primary processing, the value that would be determined Free On Board (F.O.B.) at the facility where the product underwent the last primary processing before export; or (ii) in the case of softwood lumber or a softwood lumber product described in Section 802(5)(A)(ii)(II), the value that would be determined F.O.B. at the facility where the lumber or product underwent the last primary processing, etc.

³Export charges means any tax, charge, or other fee collected by the country from which softwood lumber or a softwood lumber product, described in Section 804(a), is exported pursuant to an international agreement entered into by that country and the U.S. These export charges are availablefrom the Commerce Department at http://ia.ita.doc.gov/sla2008/sla-index.html.

⁴Section 803 requires the establishment of a softwood lumber importer declaration program. The program shall require importers of softwood lumber and softwood lumber products described in Section 804(a) to provide certain information and declare the information, and require that such information accompany the entry summary documentation.

(See ITT's Online Archives or 08/15/08 news, 08081507, for BP summary of CBP's announcement of August 18th as the effective date for the trade to report these data elements.

See ITT's Online Archives or 08/14/08 news, 08081410, for BP summary of details of the importer data/declaration, as enacted by the Farm Bill.)

CSMS message (08-000162, dated 08/18/08) available at http://apps.cbp.gov/csms/viewmssg.asp?Recid=17181&page=&srch_argv=08-000162&srchtype=all&btype=&sortby=&sby