CBP Outlines Filing Requirements for Panama FTA Claims

CBP provided an outline of system requirements for filing claims under the Panama Trade Promotion Agreement (TPA).

(See ITT's Online Archives 12102225 for summary of the announcement of the agreement taking effect on Oct. 31.)

The CSMS message said:

• The country of origin must be ‘PA’. The country of origin field is reported on the Entry Summary Record Identifier 40 (Input), Positions 6 -- 7.
• The country of export must be ‘PA’. The country of export field is Indicated in the Entry Summary Record Identifier 50 Record (Positions 69 -- 70).
• The tariff number Associated with the Panama TPA Claim must Contain the Special Program Indicator ‘PA’. The tariff number with the Panama TPA 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 ‘PA’.
• The Merchandise Process Fee Edits for the Panama TPA claims are the following:
  • Panama TPA claims are Exempt from the MPF (Class Code 499 and Class Code 311).
  • There will be situations where a tariff number is duty free. Duty Free tariff numbers don't have Special Program Indicators. If the merchandise associated these duty free tariff numbers qualifies under the Panama originating provisions, the MPF exemption can be made by transmitting the country code Special Program Indicator ‘PA’ (Entry Summary Record Identifier 50 Input Record, Positions 78 -- 79) or Records 70/80/81 Special Program (country) Indicator field (Positions 79 -- 80).
• Quota Tariff Numbers are the Following:
  • 9822.09.17 -- 9822.09.20
  • 9919.02.01
  • 9919.04.10 -- 9919.04.12
  • 9919.04.40 -- 9919.04.41
  • 9919.04.50 -- 9919.04.58
  • 9919.21.10 -- 9919.21.11
• Tariff Number 9822.09.61 requires the value of the American components to be reported with the 9822.09.61 tariff number (Record 40, value data field, Positions 8 -- 17) and the value of the foreign processing to be reported with the alternate tariff number in the 70 Record (Value Data field, Positions 69 -- 78). no SPI indicator should be submitted for this provision.
• The Panama Trade Promotion Agreement is Effective on Oct. 31.
• Oct. 31, Panama isn't eligible for GSP benefits (SPI ‘A’), CBERA (CBI) benefits (SPI E) and CBTPA (SPI ‘R’) benefits.

CBP will send a message once the changes are made in ACS. Until then filers shouldn't make Panama TPA claims through ACS (EI) or ACE (AE), said CBP..