TRADE ALERT
CBP ANNOUNCES CHANGES FOR ENTRY OF TEXTILES
MID NOW REQUIRED
October 2005
Background
Customs and Border Protection (CBP) has issued an interim rule, implementing the following changes relative to the country of origin of textile and apparel products:
- Effective October 5, 2005 the Textile Declaration requirement formerly found in 19 CFR 12.130(f), for all importations of textile and textile products is eliminated.
- An (added) requirement that importer identifies the manufacturer of such products through a Manufacturer Identification Code (MID).
This change applies to all textile products and countries, including products subject to China Safeguards and non-WTO countries still subject to bilateral textile agreements (i.e. Belarus, Russia, Ukraine, and Vietnam).
Importers Are Advised To Exercise Caution
While the interim rule eliminates the CBP requirement for the submission of a Textile Declaration, the information it contains is critical to the accurate and timely classification of those goods. In the absence of the Textile Declaration, invoice descriptions should include the detailed information normally provided on the Textile Declaration. Deringer encourages importers of textile and apparel products to continue to submit the declaration.
Actual Manufacturer ("Origin-Conferring Entity") Information Now Required
The manufacturer identification code (MID) of each imported textile product must be constructed from the name and address of the entity performing the origin-conferring operations. When a single shipment contains textile products from multiple manufacturers, each manufacturer must be separately identified.
Note
: A trading company, sellers other than manufacturers, logo printers/embroiders/dyers, etc. cannot be used to create MIDs.
Immediate Action Required
Note
: The identity of the manufacturer performing the origin-conferring operation is a condition of release of goods upon entry into the United States.
- To generate accurate MIDs, exporters/importers must provide release documentation reflecting the complete name and address of the manufacturer performing the origin-conferring operation of each imported textile product or garment. This information must appear on the shipping invoices.
- The MID requirement for textile or apparel goods differs from the identification code required for all products only in that the MID must identify the actual manufacturer of the imported product. Therefore, if the seller/shipper is the origin-conferring party (manufacturer), a statement to that effect should be placed on the import documentation to ensure proper reporting of the MID information.
- Failure to immediately provide this information on shipping documents or the reporting of inaccurate information (e.g., shipper information in lieu of actual manufacturer) will delay shipments at US ports of arrival. Repetitive errors in the construction of MIDs for entries of textile or apparel products will result in the assessment, by CBP, of importer penalties for failure to exercise reasonable care.
- Customs Brokers, upon receipt of the MID information, will have to build a data base and report the MID information to CBP via Entry Summaries on a line by line basis.
- Origin determinations, as applied to textile or apparel products, can be very difficult to determine. These determinations are based on a myriad of requirements and complex regulations.
Affected parties are encouraged to become familiar with the revised regulations. For further information, consult the following documents:
- Federal Register published on October 5, amending 19 CFR 102
Note
: This FR publication also solicits comments through December 5, 2005. (Instructions on submitting comments are included in the notice.)
http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/05-19985.htm
- Textile and Apparel Rules of Origin
http://a257.g.akamaitech.net/7/257/2422/01apr20051500/edocket.access.gpo.gov/cfr_2005/aprqtr/19cfr102.21.htm
- CBP Textile Book Transmittal (TBT) 05-027
http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/tbts/TBT2005/tbt_05_027.ctt/tbt_05_027.doc