-----Original Message-----
From: Eric Moeller
Sent: Thursday, January 18, 2007 1:10 PM

Subject: FW: Grace Period - 2007 HTS

Dear Valued Unique Customers,
Please see the below message from USCBP as it applies to the 2007 HTS changes. If any questions, please do not hesitate to contact Eric Moeller.

(Please note effective immediately my new email address is
emoeller@uli-atl.com)

Eric Moeller
Unique Logistics International (ATL) Inc.
General Manager / LCHB
Direct Tel- 678-365-6003
Fax- 404-767-1156
www.uli-atl.com

 

CBP Announces Grace Period
for Trade to Finalize Internal Classification Changes Resulting from WCO HTS Changes (for February 3 - 20, 2007 Entries)

U.S. Customs and Border Protection (CBP) has posted a notice to its Web site which states that it is providing the trade with a 17 day grace period to finalize internal classification changes resulting from the World Customs Organization
(WCO) 2007
Harmonized Tariff Schedule (HTS) changes1,2.

The details of this grace period are still sketchy; however, CBP is expected to issue a set of Frequently Asked Questions (FAQs) that should provide additional details.

WCO Changes to Take Effect Without Exception on February 3rd

According to CBP, the WCO HTS changes will be in effect on February 3,
2007 without
exception.

CBP's Expectations of the Trade

CBP states that it has the following expectations of the trade:

* by February 3, 2007, ABI software updates are installed and
ready for use; and

* by February 20, 2007, all internal classification related
updates will be completed.

Grace Period for Correcting Feb 3, 2007 - February 20, 2007 Entries

CBP and sources state that the grace period pertains to entries made during the 17-day period of February 3, 2007 - February 20, 2007 where:

* the entries were rejected by an Import Specialist or Entry
Specialist either manually
or electronically by Remote Location Filing (RLF) and returned to the filers for classification correction (including those that take more than 48 hours to refile); and

* post entry classification corrections are submitted.

For the above two instances, CBP and sources indicate that if the filer substantiates in writing the additional time used to make the necessary classification corrections, CBP will consider this a mitigating factor that will help prevent the possible assessment of penalties under 19 USC 1592 and 1621 for negligence or non-egregious errors.

(CBP states that the trade previously advised CBP that they could need up to 45 days to prepare for the WCO HTS changes. The trade was given 30 days from the date Proclamation 8097 was published in the Federal Register, and it is now receiving a 17- day grace period, giving it 47 days to adjust to the WCO HTS changes.)

1 CBP's notice sometimes refers to the WCO changes as legislative changes; however, the WCO changes are a result of Presidential Proclamation 8097.

2 According to sources, CBP will allow classification corrections that are a result of other recent HTS changes (i.e. the Chapter 99 tariff changes implemented by P.L. 109-432 which took effect on January 4, 2007, etc.) to benefit from this grace period. See ITT's Online Archives or 12/29/06 news, (Ref: 06122900) for BP summary of the Chapter 99 tariff changes. Also see BP Note below)

(See ITT's Online Archives or 01/17/07 news, (Ref: 07011705), for BP summary of the blanket Immediate Delivery authorization for merchandise to be released on or after January 22, 2007 and until February 2, 2007.)

CBP notice (clarified) on the grace period (dated 01/12/07) available at

http://www.cbp.gov/xp/cgov/import/communications_to_trade/world_customs_
org/clarifi
cation_grace_period.xml; (CBP's earlier notice is available at http://www.cbp.gov/xp/cgov/import/communications_to_trade/world_customs_
org/grace
_period.xml. )

BP Notes

Some problems are still not resolved with respect to the WCO HTS
changes, including:

1. The HTS NAFTA Rules of Origin have not yet been amended for the
WCO changes.
A proclamation will need to be issued in order to do this; however, it
is not known if such a proclamation will be issued in time to be effective February 3,
2007. If a proclamation is not issued in time, sources state that if entry filers
annotate any Certificate of Origin information that contains an old tariff number
with the new, correct WCO tariff number, CBP processing will be facilitated.

(Only the Australia FTA HTS Rules of Origin have been amended for the
WCO changes to date.)

2. Many of the underlying Chapter 1-97 tariff numbers for the
Chapter 99 tariff number changes that took effect on January 4, 2007 still need to be amended for
the WCO changes. In addition, these underlying tariff numbers are reported to be
a mix of old and WCO-amended tariff numbers, etc.

As a result, sources state that another proclamation will be needed to
amend the outdated, etc. underlying Chapter 1-97 numbers. It is not known if such
a proclamation will be issued in time to be effective February 3, 2007. If
a proclamation is not issued in time, sources state that ABI rejects could
occur.

[Ref: 07011805]