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Proclamation Amended HTS for Costa Rica Sugar/Products TRQs and Various FTAs

On June 12, 2010, the President issued Proclamation 8536 which amends the Harmonized Tariff Schedule to extend and establish certain sugar tariff rate quotas for Costa Rica under the DR-CAFTA1 and make technical corrections to certain other free trade agreement General Notes.

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June 15, 2010 Changes for Costa Rica Sugar/Products

Annex I of the Proclamation states that effective with respect to goods entered or withdrawn from warehouse for consumption on or after June 15, 2010:

DR-CAFTA Sugar/Products TRQ for Costa Rica Extended Indefinitely

HTS Chapter 98, Subchapter XXII, U.S. Note 24 has been amended to extend, indefinitely, the additional duty-free TRQ2 that was created in January 2009 for certain Costa Rica sugar, syrup goods, and sugar-containing products:

General Note 24 now states that “The aggregate quantity of goods of Costa Rica described in U.S. Note 23 to this subchapter that may be entered under subheading 9822.05.15 in calendar year 2009 or in any subsequent calendar year shall not exceed 2,000 metric tons.

2010 DR-CAFTA “Trade Surplus” Sugar/Products TRQ Allocation for Costa Rica

HTS Chapter 98, Subchapter XXII, U.S. Note 25(a) is amended to state that Costa Rica's 2010 (June 15 -- December 31, 2010) duty-free quantity for the "trade surplus" sugar, syrup goods, and sugar-containing products TRQ is 11,880 metric tons (to be entered under HTS subheading 9822.05.20).

(Costa Rica, and other DR-CAFTA countries, are each eligible to receive TRQ amounts equal to the lesser of: (1) that country's trade surplus, or (2) the specific quantity set out in U.S. Note 25(b)(ii) to Subchapter XXII of HTS Chapter 98 for that country for that calendar year. Note that when the 2010 “trade surplus” TRQ allocations were announced in December 2009, Costa Rica did not receive an allocation.)

2011-2021 “Trade Surplus” Sugar/Products Thresholds for Costa Rica

HTS Chapter 98, Subchapter XXII, U.S. Note 25(b)(ii) is amended to add the specific quantities to be used for determining Costa Rica’s trade surplus for years 2011 -- 2021. The duty-free quantity for "trade surplus" sugar, syrup goods, and sugar-containing products for years 2011 will be equal to the lesser of: (1)that country's trade surplus, or (2)the specific quantity set out below:

20112012
12,10012,320
20142015
12,76012,980
20172018
13,42013,640
20202021
14,08014,300

In each successive calendar year after 2021, the aggregate quantity for Costa Rica will be increased, from the aggregate quantity permitted in the prior calendar year, by 220 metric tons.

October 3, 2009 NAFTA Corrections

Proclamation 8536 also contains technical corrections to General Note 12 (the North American Free Trade Agreement). These corrections are effective with respect to goods of a NAFTA party entered or withdrawn from warehouse for consumption on or after October 3, 2009:

HTS General Note 12 is amended by revising the text of Tariff Classification Rule (TCR) 35 for Chapter 29 to read as follows:

35AA change to subheading 2916.11 through 2916.39 from any other subheading, including another subheading within that group.
35BA change to subheading 2917.11 through 2917.33 from any other subheading including another subheading within that group.
35C(A) A change to dibutyl orthophthalates of subheading 2917.34 from any other good of subheading 2917.34 or any other subheading; or

(B) A change to any other good of subheading 2917.34 from dibutyl orthophthalates of subheading 2917.34 or any other subheading.

35DA change to subheading 2917.35 through 2917.39 from any other subheading including another subheading within that group.

The text of TCR 36A for Chapter 29 has also been revised and is now:

36AA change to subheading 2918.18 from phenylglycolic acid (mandelic acid), its salts or esters of subheading 2918.19 from any other good of subheading 2918.19, or any other subheading.

The following new TCR is inserted following TCR 19 for Chapter 87:

19AA change to mounted brake linings of subheading 8708.30 from any other heading; or

A change to mounted brake linings of subheading 8703.30 from parts of mounted brake linings, brakes or servo-brakes of subheading 8708.30 or 8708.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 50 percent under the net cost method; or

A change to any other good of subheading 8708.30 from any other heading; or

A change to any other good of subheading 8708.30 from mounted brake linings or parts of brakes or servo-brakes of subheading 8708.30 or 8708.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 50 percent under the net cost method.

February 8, 2009 Singapore FTA Corrections

This Proclamation also contains technical corrections to General Note 25 (the U.S.-Singapore FTA). These corrections are effective with respect to goods of Singapore entered or withdrawn from warehouse for consumption on or after February 8, 2009:

HTS General Note 25 is amended by revising TCRs 80 and 81 for Chapter 84 to read as follows:

80A change to subheading 8442.30 from any other subheading.
81A change to subheading 8442.40 from any other subheading.

February 8, 2009 Chile FTA Corrections

In addition, the Proclamation contains technical corrections to General Note 26 (the U.S.-Chile FTA). These corrections are effective with respect to goods of Chile entered or withdrawn from warehouse for consumption on or after February 8, 2009:

HTS General Note 26 is amended by revising TCRs 90C and 90E for Chapter 84 to read as follows:

90CA change to subheading 8443.39 from any other subheading.
90EA change to subheading 8443.99 from any other subheading.

(See ITT’s Online Archives or 06/15/10 news, 10061455, for previous BP summary of Proclamation 8536.

See ITT’s Online or 06/28/10 news, 10062518, for BP summary of CBP’s memo on the sugar/products TRQs.

See ITT’s Online Archives or 01/13/09 news, 09011310, for BP summary of the details on the Presidential Proclamation implementing DR-CAFTA for Costa Rica.)

1The U.S.-Dominican Republic-Central America Free Trade Agreement, also abbreviated as CAFTA-DR.

2Such goods must qualify as originating goods under the DR-CAFTA except that any operations performed in, or any material obtained from, the U.S. be considered as if the operations were performed in, and the material was obtained from, a country that is not a party to the DR-CAFTA. (As a result, the SPI of P+ must be used).