CBP System Requirements for Collecting New Dairy Fee
U.S. Customs and Border Protection has issued a CSMS message on the new Agricultural Marketing Service (AMS) dairy product fee assessment1 system requirements that filers and software vendors can use for programming purposes. AMS has requested that CBP begin to collect a dairy product import fee on August 1, pursuant to its March 2011 final rule.
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(On March 18, AMS issued a final rule amending the Dairy Promotion and Research Order to implement an assessment (fee) on imported dairy products and to add importer representation to the National Dairy Promotion and Research Board. The final rule’s amendments were effective April 1, 2011, except for the implementation of the assessment on imported dairy products, which is effective August 1, 2011.)
Class Code 110 to be Used to Report Dairy Products
CBP states that Class Code 110 will be used to report the dairy products. The dairy fee is required effective for goods with a duty/fee computation date of August 1, 2011.
The following CATAIR references define how the system determines the duty/fee computations date:
- EI (Entry Summary) Record Identifier 10, Input, Note 3
- EI (Entry Summary) Record Identifier 20, Input, Note 2
- EI (Entry Summary) Record Identifier 30, Input, Note 6
Modifications to QR Application to Display Fee Information
The QR application (Daily Statements) needs to be modified to display the dairy fee information, including changes to record identifier QC and record identifiers QG and QL (see CSMS message for these record layouts).
Fee to be Based on “Cow’s Milk Solids Content” of Dairy Products
CBP states that information regarding the dairy fee can be found in AMS’ final rule. The final rule lists certain Harmonized Tariff Schedule numbers in 0401-0406, 1517, 1702, 1704, 1806, 1901, 2105-2106, 2202, 3501, and 3502 as being subject to the new fee. (The HTS numbers subject to the new fee are also available in 7 CFR 1150.152(b)(1).)
The rule indicates that the fee will be based on the cow’s milk solids content of the imported dairy product at a rate of $0.01327 per kilogram of cow’s milk solids.
Most HTS Nos Subject to Fee to be Updated with “ckg” Unit of Measure
CBP states that the HTS numbers subject to the dairy fee will be updated in the near future with ’ckg,’ a new unit of measure indicating the cow’s milk solids weight in kilograms. The dairy fee will equal the assessment of $0.01327 times the reported amount indicated in the ‘ckg’ unit of measure field.
7 Will Not Have “ckg” Unit of Measure
CBP notes that seven of the tariff numbers subject to the dairy fee will not have the ‘ckg’ unit of measure. The trade will be responsible for computing the proper dairy fee assessment of $0.01327 times the amount of cow’s milk solids content in kg that should be reported for the below seven tariff numbers.
The tariff numbers that do not have a ‘ckg’ unit of measure field are the following:
0401.10.0000
0401.30.5000
0401.30.7500
2105.00.1000
2105.00.2000
2202.90.2400
2202.90.2800
1Also termed a “tax.”
(See ITT’s Online Archives or 04/19/11 news, 11041903, for BP summary of CBP announcing changes to the 2011 HTS, including changes to implement the dairy import tax.
See ITT's Online Archives or 03/18/11 news, 11031815, for BP summary of AMS' final rule on the new dairy import tax.)
(CSMS #11-000081)