HR BILL 2832 PASSED MERCHANDISE PROCESSING FEE INCREASE
THAT APPLIES TO FORMAL ENTRIES STARTING OCTOBER 1, 2011
The legislation for the newly passed Free Trade Agreements (qualifying
imports from Colombia, Korea and Panama) and Generalized System of
Preferences extension, contain provisions to increase the MPF:
• From 0.21% ad valorem to 0.3464% ad valorem
• New 0.3464% MPF assessment will apply to entries from October 1, 2011
thru November 30, 2015
• Retroactive to October 1, 2011
Casas International Brokerage, Inc.
November 5, 2011
• EXISTING
MPF
EXEMPTIONS
WERE
NOT
CHANGED. FOR EXAMPLE: NAFTA QUALIFIED GOODS
ARE EXEMPT FROM MERCHANDISE PROCESSING FEES.
• Importers
with
goods
entering
under
an
UNCONDITIONALLY DUTY FREE CLASSIFICATION from a
NAFTA Country, Mexico or Canada, should evaluate the
opportunity cost of qualifying their goods for NAFTA to
save the Merchandise Processing Fees.
•The maximum/cap on formal entry will remain the
same at $485.
•The 0.3464% mpf for importers means that previously
the cap was reached when the entry was worth
$230,952.00, now it will be reached for entries of
$140,011.00 and higher. This is a significant cost
increases to many importers, particularly companies
shipping lower value articles.
•Importers should make sure to account for the
increased MPF for their formal entries on or after
October 1, 2011
CBP WILL BE READY TO ACCEPT THE NEW MPF RATE OF
0.003464 ON SATURDAY, NOVEMBER 5, 2011 AT
APPROXIMATELY 7:30 AM.
What is the process for importers to pay the increased MPF
retroactive back to October 1, 2011?
• U.S. Customs and Border Protection (CBP) will generate bills
for the period between October 1 and November 5, 2011 in
order to collect the difference between the old and new rates
for that time period. Any difference less than $20 will be
disregarded.
For questions: please contact Casas International
Brokerage Department:
• Myrna Aguilar at (619) 710-4628
• Sylvia Casas at (619) 710-4619
• Hector Casas at (760) 427-0441
Or email us at
• s.casas@casasinternational.com
• m.aguilar@casasinternational.com
• h.casas@casasinternational.com
PROPOSED MODIFICATIONS TO THE
HARMONIZED TARIFF SCHEDULE OF THE
UNITED STATES EFFECTIVE JANUARY 1, 2012
•Every 5 years, World Customs Organization undertakes revision
and update to Harmonized Tariff Schedule
•Last revision was in 2007
•Upcoming 2012 revisions focus primarily, but not exclusively, on
environmental and social issues
•In United States, US International Trade Commission charged
with updating HTSUS
•World Customs Organization (WCO) maintains
the official HS at the international level
through its HSC or Harmonized System
Committee (HSC)
• Changes are primarily in agriculture chapters 1-27
• Non-agricultural changes include new subheadings for
specific chemicals controlled under the Rotterdam
Convention and ozone-depleting-chemicals (ODC)
controlled under the Montreal Protocol
• Other amendments result from changing trade
patterns
• More than 40 subheadings deleted due to low use
• New subheadings to specifically identify other products
and new technology
Specific Changes
220 sets of amendments divided as follows:
• 98 relate to the agricultural sector
• 27 to the chemical sector
• 9 to the paper sector
• 14 to the textile sector
• 5 to the base metal sector
• 30 to the machinery sector
• 37 to the remaining sectors of the HS
Specific Changes (cont’d)
204 amendments in
• 53 different HS chapters
• 95 different subheadings removed
• 421 subheadings added
• 34 subheadings changed
• 39 legal notes
• 108 different headings
Examples of Changes
Diapers, tampons, sanitary napkins and similar
items
• Current classification is in headings 3926,
4818, 5601, 6111, 6114, 6209, 6211 or 6307
(based on the essential character)
2012 change: classify in the new heading 9619
Examples of Changes (cont’d)
Current subheading 8528.73 covers black &
white TVs
• 2012 version of 8528.73 will cover
monochrome TVs
Examples of Changes (cont’d)
Changes in technology
• Current battery heading 8507 doesn’t have
lithium ion and refers to nickel –iron storage
batteries in 8507.40 and “other” in 8507.80
2012 version:
• 8507.50 - Nickel-metal hydride
• 8507.60 - Lithium-ion
Resources
See WCO and ITC websites for specific changes
WCO:
• http://www.wcoomd.org/files/1.%20Public%20fil
es/PDFandDocuments/HarmonizedSystem/HS%2
0Overview/NG0163B1.pdf
• http://www.wcoomd.org/files/1.%20Public%20fil
es/PDFandDocuments/HarmonizedSystem/tools_
instruments/HS_Correlation_Tables_Introduction
.pdf
Resources (cont’d)
ITC
• http://www.usitc.gov/tariff_affairs/modificati
ons_hts.htm
• http://www.usitc.gov/tariff_affairs/hts_docu
ments/1205-7FinalReport.pdf
• See Exhibits C and D for correlation tables
2012 Explanatory Notes
Available at
www.wcoomd.org
.
• Other Countries
Canada
• http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/menueng.html
Mexico
EU
Australia
• http://www.customs.gov.au/tariff/hs2012.asp
2012 HTSUS and Correlation Tables
• 2012 HTSUS
• 10-digit Correlation Tables
• Grace period
• Certificates of Origin
• Training
QUESTIONS:
Customs Rulings
• I have binding rulings for products whose tariff
item has changed. Do I need to file new ruling
requests?
Tariff Shift Rules
• How will the 2012 HS amendments affect FTA
tariff shift rules covering my products?
Questions (continued)
Certificates of Origin
•Our practice is to update blanket certificates of
origin at the end of each year for the coming
year. If we update our blanket certificates by
the end of 2011, will we be required to
conduct another update in January 2012?
CASAS customer exclusive webinar training:
Participate in this special CASAS EXCLUSIVE
event!
• Mark your calendar and join us on December
14, 2011 (Wednesday) from 10:00-11:30 am
PT.
For questions: please contact Casas International Brokerage
Department:
• Myrna Aguilar at (619) 710-4628
• Sylvia Casas at (619) 710-4619
• Hector Casas at (760) 427-0441
Or email us at
• s.casas@casasinternational.com
• m.aguilar@casasinternational.com
• h.casas@casasinternational.com