CBP Issues Guidance on Requirements for Filing KORUS Entry Summary Claims

March 1, 2012

U.S. Customs and Border Protection (CBP) recently issued a message advising the trade industry on the system requirements needed to file a Korea Free Trade Act claim in the Automated Commercial System (ACS). The Korea Free Trade Agreement will take effect March 15, 2012. CBP states that the trade will be notified when changes have been completed in ACS, and that once these changes have been completed, the trade will also be able to file Korea Free Trade Act claims in ACE (AE).

To claim Korea Free Trade benefits, the following ABI system requirements must be met:

•  The Country of Origin must be ‘KR’. The Country of Origin field is reported on the entry summary record identifier 40 (input), positions 6-7.
• The Country of Export must be ‘KR’. The Country of Export field is indicated in the entry summary record identifier 50 record (positions 69-70).
• The tariff number associated with the Korea Free Trade Act claim must contain the special program indicator ‘KR’. The tariff number with the Korea Free Trade indication may either be free or a reduced rate. If the rate is reduced, the duty rate will be indicated in the special rate field with the ISO code of ‘KR’. The duty rate for tariff provision 9920.95.00 and 9920.99.00 will be associated with the duty rate provided for the originating goods of Korea in the applicable subheading for the alternate tariff number.
• The SPI indicator of ‘KR’ (ISO code for Korea) must be transmitted. The SPI indicator is reported on the entry summary record identifier 50 (input), special program indicator (country) filed (position79-80) or records 70/80/81 special program (country) indicator field positions (79-80).
• Korea Free Trade claims are exempt from the Merchandise Processing Fees (MPF) (class code 499 and class code 311). CBP states that there will be situations where a tariff number is duty free. Duty free tariff numbers do not have special program indicators. If the merchandise associated with these duty free tariff numbers qualifies under the Korean originating FTA provisions, the MPF exemption can be made by transmitting the country code special program indicator ‘KR’.
• Tariff numbers 99200410-99200430 and 99209500-99209900 are subject to quota.

For further information, please contact a Barnes/Richardson attorney.