On February 07, 2014, U.S. Customs and Border Protection (CBP) issued Cargo Systems Messaging Service (CSMS) Broadcast # 14-000077 to clarify the provisions of the recently released update to General Statistical Note 3(c) explaining that numerous origination requirements must still be met to receive Merchandise Processing Fee (MPF) exemption for goods originating from a country with which the U.S. has a Free Trade Agreement (FTA).
CBP explains that, “With this notice we seek to clarify that, with respect to a preference program that provides the MPF exemption to “originating” goods, in order to claim such exemption in addition to the Civil Aircraft Agreement, Pharmaceutical Agreement or Intermediate Chemicals for Dyes Agreement (SPIs “C#,” “K#,” or “L#,” respectively), a good must meet the preference program’s “origination” requirements, including any “imported directly” requirement. With respect to a preference program that provides the MPF exemption to goods that meet the lesser “product of” standard, as defined in each agreement, the same “product of” standard and “imported directly” requirements apply when using SPI “C#,” “K#,” and “L#” to obtain the MPF exemption.”
The following also qualify for MPF exemption and were unintentionally omitted from the initial update:
- U.S. insular possessions
- Beneficiary countries under the Caribbean Basin Economic Recovery Act
- Least developed beneficiary countries under the Generalized System of Preferences
CBP and the International Trade Commission are working to incorporate such interpretations into the Harmonized Tariff Schedule (HTS).
The CSMS can be accessed online at:
http://apps.cbp.gov/csms/viewmssg.asp?Recid=19852&page=&srch_argv=14-000077&srchtype=all&btype=&sortby=&sby=
