Information on Bills Issued Prematurely for Some Informal Entries.
Due to the federal holiday on December 24, some informal entries were liquidated prematurely on December 25 with incorrect bill amounts. These bills will be cancelled, the entries will be re-liquidated, and any bills will be re-issued with the correct amounts.
CSMS #41149692 – U.S.-Japan Trade Agreement: Information on Claiming Preferential Treatment
The US-Japan Trade Agreement (“Agreement”) will enter into force on January 1, 2020. This message is to inform the trade community of the requirements for claiming preferential treatment under this new Agreement.
In order to receive preferential treatment, a good must be originating and meet all the requirements of the U.S.-Japan Agreement.
Annex II to the Agreement specifies the rules of origin used to determine if a good qualifies for preferential tariff treatment or “originates” under the Agreement. The product-specific rules (Annex II to the Agreement) specify the level of change of tariff classification that non-originating materials must undergo. General Note 36 will be added to the HTSUS and will include the requirements of the Agreement. The links to the US-Japan Trade Agreement text and related documents are below.
From January 1, 2020 through January 13, 2020, importers must pay duties on qualifying goods under the Agreement and request a preferential tariff retroactive claim by filing a post summary correction (PSC) to request the duty refund. The Automated Commercial Environment (ACE) will accept the new special program indicator ‘JP’ as a prefix to the eligible tariff number on January 14, 2020.
On or after January 14, 2020, ACE will accept the new special program indicator ‘JP’ as a prefix to the eligible tariff number. Importers claiming preferential treatment under the Agreement must include on the entry, the special program indicator “JP” as a prefix to the eligible tariff number for each qualifying good requesting such preference.
To claim preferential tariff treatment under the U.S.-Japan Trade Agreement, the following requirements must be met:
Country of Origin must be ‘JP’
Country of Export must be ‘JP’
Once programmed in ACE, the Special Program indicator ‘JP’ must be placed before the eligible tariff number to make the claim.
Claims for preferential treatment under this Agreement are not exempt from the merchandise processing fee (class code 499 and class code 311).
The tariff-rate quota allocation for beef from Japan is modified as follows:
The country specific Japan beef quota (200,000 kg) is eliminated and added to “other countries.” This updates the “other countries or areas” limit to 65,005,000 kg.
There is no change to the entry filing process. The ACE quota module will process eligible beef from Japan under the “Other countries or areas” quota.
More details on US-Japan implementing instructions will be provided on
On Tuesday, March 1st, the NCBFAA released a Monday Morning eBriefing newsletter, which focused on the recent statement that was made by the United States Coast Guard (USCG).
According to the NCBFAA eBriefing, the USCG took a moment to clarify its position on the International Maritime Organization (IMO) and the new carrier guidelines that require the exporter that is listed on carrier’s master bill of lading to provide a certification of the Verified Gross Mass (VGM) of any container (including the tare weight of the container) tendered to the vessel operators.
There is no need to change processes
Admiral Paul Thomas of the USCG advised that the Coast Guard would need to implement the IMO’s changes through an appropriate regulatory rulemaking, before the IMO can compel the U.S. shippers and carriers to change their current business practices.
It was said that current ly the USCG feels that today’s process are working as long as both the shipper and carrier has done their job properly. Since there is nothing deficient or inherently unsafe about existing export processes, the Coast Guard feels that there is no need to change processes and will not do anything to enforce the new VGM rules on either the U.S. shippers or carriers .
It is assumed that the carriers will not accept this and will continue to push U.S. exporters and OTIs to still provide a VGM certificate. This will be monitored carefully by the NCBFAA.