Consolidation and Amendment of Export Visa Requirements to Include the Electronic Visa Information System for Certain Cotton, Wool, Man-Made Fiber, Silk Blend and Other Vegetable Fiber Textiles and Textile Products Produced or Manufactured in the Philippines

COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS

Consolidation and Amendment of Export Visa Requirements to

Include the Electronic Visa Information System for Certain Cotton,

Wool, Man-Made Fiber, Silk Blend and Other Vegetable Fiber Textiles and

Textile Products Produced or Manufactured in the Philippines

August 12, 1997.

AGENCY: Committee for the Implementation of Textile Agreements (CITA).

ACTION: Issuing a directive to the Commissioner of Customs

consolidating and amending visa requirements.

-----------------------------------------------------------------------

EFFECTIVE DATE: September 1, 1997.

FOR FURTHER INFORMATION CONTACT: Lori Mennitt, International Trade

Specialist, Office of Textiles and Apparel, U.S. Department of

Commerce, (202) 482-3400.

SUPPLEMENTARY INFORMATION:

Authority: Executive Order 11651 of March 3, 1972, as amended;

section 204 of the Agricultural Act of 1956, as amended (7 U.S.C.

1854).

In exchange of notes dated December 18, 1996, July 9, 1997, and

July 23, 1997, the Governments of the United States and the Philippines

agreed to amend the existing visa arrangement for cotton, wool, man-

made fiber, silk blend and other vegetable fiber textiles and textile

products, produced or manufactured in the Philippines and exported on

and after September 1, 1997. The amended arrangement consolidates

existing provisions and new provisions for the Electronic Visa

Information System (ELVIS). In addition to the ELVIS requirements,

shipments will continue to be accompanied by an original visa stamped

on the front of the original commercial invoice issued by the

Government of the Philippines.

In the letter published below, the Chairman of CITA directs the

Commissioner of Customs to amend the existing visa requirements for

textile products, produced or manufactured in the Philippines and

exported on and after September 1, 1997.

A description of the textile and apparel categories in terms of HTS

numbers is available in the CORRELATION: Textile and Apparel Categories

with the Harmonized Tariff Schedule of the United States (see Federal

Register notice 62 FR 66263, published on December 17, 1996). Also see

52 FR 11308, published on April 8, 1987.

Interested persons are advised to take all necessary steps to

ensure that textile products entered into the United States for

consumption, or withdrawn from warehouse for consumption, will meet the

visa requirements set forth in the letter published below to the

Commissioner of Customs.

Troy H. Cribb,

Chairman, Committee for the Implementation of Textile Agreements.

Committee for the Implementation of Textile Agreements

August 12, 1997.

Commissioner of Customs,

Department of the Treasury, Washington, DC 20229.

Dear Commissioner: This directive amends, but does not cancel,

the directive issued to you on April 3, 1987, as amended, by the

Chairman, Committee for the Implementation of Textile Agreements,

that directed you to prohibit entry of certain cotton, wool, man-

made fiber, silk blend and other vegetable fiber textiles and

textile products, produced or manufactured in the Philippines for

which the Government of the Philippines has not issued an

appropriate export visa or exempt certificate.

Under the terms of section 204 of the Agricultural Act of 1956,

as amended (7 U.S.C. 1854); pursuant to a the Export Visa

Arrangement, effected by exchange of notes dated December 18, 1996,

July 9, 1997, and July 23, 1997, between the Governments of the

United States and the Philippines; and in accordance with the

provisions of Executive Order 11651 of March 3, 1972, as amended,

you are directed to prohibit, effective on September 1, 1997, entry

into the Customs territory of the United States (i.e., the 50

states, the District of Columbia and the Commonwealth of Puerto

Rico) for consumption and withdrawal from warehouse for consumption

of cotton, wool, man-made fiber, silk blend and other vegetable

fiber textiles and textile products in Categories 300-369, 400-469,

600-670 and 831-859, including part categories and merged categories

(but not Categories 355, 356, 655, 656, 455, 371 and 671), and which

are not eligible for exemptions noted in the Exempt Certification

Requirements below (also provided for in Annex A attached), produced

or manufactured in the Philippines and exported on and after

September 1, 1997 for which the Government of the Philippines has

not issued an appropriate export visa and Electronic Visa

Information System (ELVIS) transmission fully described below.

Shipments covering merchandise in Categories 800-810 and 863-899 do

not require a visa. However, should additional categories, merged

categories or part categories be added to or changed in the

Bilateral Agreement or become subject to import quotas, the entire

category or categories shall be automatically included in the

coverage of the Visa Arrangement. Merchandise exported on or after

the date the category is added to or changed in the Agreement, or

becomes subject to import quotas, shall require a visa and ELVIS

transmission.

[[Page 43994]]

A visa must accompany each commercial shipment of the

aforementioned textile products. A circular stamped marking in blue

ink will appear on the front of the original commercial invoice. The

original visa shall not be stamped on duplicate copies of the

invoice. The original invoice with the original visa stamp will be

required to enter the shipment into the United States. Duplicates of

the invoice and/or visa may not be used for this purpose.

Each visa stamp shall include the following information:

1. The visa number. The visa number shall be in the standard

nine digits and letters, beginning with one numeric digit for the

last digit of the year of export, followed by the two character

alpha country code specified by the International Organization for

Standardization (ISO) (the code for the Philippines is ``PH''), and

a six digit numeric serial number identifying the shipment; e.g.,

7PH123456.

2. The date of issuance. The date of issuance shall be the day,

month and year on which the visa was issued.

3. The original signature of the issuing official of the

Government of the Philippines.

4. The correct category(s), part category(s), merged

category(s), quantity(s) and unit(s) of quantity in the shipment in

the unit(s) of quantity provided for in the U.S. Department of

Commerce Correlation and in the U.S. Harmonized Tariff Schedules of

the United States Annotated (HTS), e.g., ``Cat. 340-510 DZ.'' Annex

B lists all the part-category and merge category visas required for

entry.

Quantities must be stated in whole numbers. Decimals or

fractions will not be accepted. Products covered by merged category

quotas must be accompanied by either a merged category visa or the

correct category visa corresponding to the actual shipment (e.g.,

quota Category 333/334 may be visaed as ``Category 333/334'' or if

the shipment consists solely of Category 333 merchandise, the

shipment may be visaed as ``Category 333,'' but not as ``Category

334'').

U.S. Customs shall not permit entry if the shipment does not

have a visa, or if the visa number, date of issuance, signature,

category, quantity or units of quantity are missing, incorrect or

illegible, or have been crossed out or altered in any way. If the

quantity indicated on the visa is less than that of the shipment,

entry shall not be permitted. If the quantity indicated on the visa

is more than that of the shipment, entry shall be permitted and only

the amount entered shall be charged to any applicable quota.

If the visa is not acceptable then a new visa must be obtained

from the the Philippine Government or a visa waiver issued by the

U.S. Department of Commerce at the request of the Philippine

Government and presented to the U.S. Customs Service before any

portion of the shipment will be released. A visa waiver may be

issued by the Department of Commerce at the request of the Embassy

in Washington for the Government of the Philippines. The waiver, if

used, only waives the requirement to present a visa at entry. It

does not waive any quota requirements. Visa waivers will only be

issued for classification purposes or for one time special purpose

shipments that are not part of an ongoing commercial enterprise.

If the visaed invoice is deficient, the U.S. Customs Service

will not return the original document after entry or attempted

entry, but will provide the importer a certified copy of that visaed

invoice for use in obtaining a new correct original visaed invoice

or a visa waiver.

The complete name and address of a company actually involved in

the manufacturing process of the textile product covered by the visa

shall be provided on the textile visa document.

If a shipment from the Philippines has been allowed entry into

the commerce of the United States with either an incorrect visa or

no visa, and redelivery is requested but cannot be made, the

shipment will be charged to the correct category limit whether or

not a replacement visa or visa waiver is provided.

ELVIS Requirements:

A. Each ELVIS message will include the following information:

i. The visa number. The visa number shall be in the standard

nine digits and letters, beginning with one numeric digit for the

last digit of the year of export, followed by the two character

alpha country code specified by the International Organization for

Standardization (ISO) (the code for the Philippines is ``PH''), and

a six digit numeric serial number identifying the shipment; e.g.,

7PH123456.

ii. The date of issuance. The date of issuance shall be the day,

month and year on which the visa was issued.

iii. The correct category(s), merged category(s), part

category(s), quantity(s) and unit(s) of quantity of the shipment in

unit(s) of quantity provided for in the U.S. Department of Commerce

Correlation and in the Harmonized Tariff Schedule of the United

States, Annotated, or successor documents.

iv. The manufacturer ID number (MID). The MID shall begin with

``PH,'' followed by the first three characters from each of the

first two words of the name of the manufacturer, followed by the

largest number on the address line up to the first four digits,

followed by three letters from the city name.

B. Entry of a shipment shall not be permitted:

i. if an ELVIS transmission has not been received for the

shipment from the Philippines;

ii. if the ELVIS transmission for that shipment is missing any

of the following:

a. visa number

b. category or part category

c. quantity

d. unit of measure

e. date of issuance

f. manufacturer ID number;

iii. if the ELVIS transmission for the shipment does not match

the information supplied by the importer, or the Customs broker

acting as an agent on behalf of the importer, with regard to any of

the following:

a. visa number

b. category or part category

c. unit of measure;

iv. if the quantity being entered is greater than the quantity

transmitted; or,

v. if the visa number has previously been used, or canceled,

except in the case of a split shipment or if any entry has already

been made using the visa number.

C. A new, correct ELVIS transmission from the country of origin

is required before a shipment that has been denied entry for one of

the circumstances mentioned in B.i-v will be released.

D. A new, correct ELVIS transmission from the country of origin

is required for entries made using a visa waiver under the procedure

described above. Visa waivers will only be considered for

classification purposes or for one time special purpose shipment

that is not part of an ongoing commercial enterprise or for

legitimate classification disputes.

E. Shipments will not be released for forty-eight hours in the

event of a system failure. If system failure exceeds forty-eight

hours, for the remaining period of the system failure the U.S.

Customs Service will release shipments on the basis of the paper

visaed document.

F. If a shipment from the Philippines is allowed entry into the

commerce of the United States with an incorrect visa, no visa, an

incorrect ELVIS transmission, or no ELVIS transmission, and

redelivery is requested but cannot be made, the shipment will be

charged to the correct category limit whether or not a replacement

visa or waiver is provided or a new ELVIS message is transmitted.

G. The U.S. Customs Service will provide Philippine authorities

with a report containing information on visa utilization that can be

accessed at any time. This report will contain:

a. visa number

b. category number

c. quantity charged to quota

d. unit of measurement

e. entry number

f. entry line number.

Exempt Certification Requirements:

A. Textiles and textile articles provided for below, and in

Annex A attached, will be exempt from levels of restraint quotas,

and visa and ELVIS requirements if they are certified, prior to the

shipment leaving the Philippines, by the placing of the original

rectangular-shaped stamped marking in blue ink on the front of the

original commercial invoice. The original exempt certification shall

not be affixed to duplicate copies of the invoice. The original copy

of the invoice with the original exempt certification will be

required to enter the shipment into the United States. Duplicate

copies of the invoice and/or exempt certification may not be used.

1. Handwoven and Handloomed Fabrics of the Cottage Industry

2. Handmade Articles and Garments of Handwoven and Handloomed

Fabric: All items must be cut, sewn, or otherwise fabricated by hand

in order to qualify for this exemption. They may not include machine

stitching.

3. Traditional Folklore Handicraft Products: Only products which

fall within the definition of ``Philippine Items'' in Annex A

attached, qualify for this exemption provided that they are cut,

sewn, or otherwise fabricated by hand. They may not include machine

stitching.

[[Page 43995]]

B. requirements for Exempt Certification Stamp: Each exempt

certification stamp will include the following information:

I. Date of issuance.

II. Signature of issuing official.

III. The basis for the exemption shall be noted as:

a. Handwoven fabric or handloomed fabric (whichever is

appropriate).

b. Handmade textile products.

c. The name of the particular traditional folklore handicraft

product (Philippine Items) as listed in Annex A attached, e.g.,

``Banaue cloth.''

Shipments not requiring visas or exempt certifications:

Merchandise imported for the personal use of the importer and

not for resale, regardless of value, and properly marked commercial

sample shipments valued at U.S. $250 or less do not require a visa,

ELVIS transmission or exempt certification for entry and shall not

be charged to Agreement levels.

Other Provisions:

Except as provided in the paragraph above, any shipment which

requires a visa but which is not accompanied by a valid and correct

visa and ELVIS transmission in accordance with the foregoing

provisions, shall be denied entry by the Government of the United

States of America unless the Government of the Philippines

authorizes the entry and any charges to the Agreement levels.

An invoice may cover visaed merchandise or exempt certification

merchandise, but not both.

The visa and exempt certification stamps remains unchanged.

The actions taken concerning the Government of the Philippines

with respect to imports of textiles and textile products in the

foregoing categories have been determined by the Committee for the

Implementation of Textile Agreements to involve foreign affairs

functions of the United States. Therefore, these directions to the

Commissioner of Customs, which are necessary for the implementation

of such actions, fall within the foreign affairs exception to the

rulemaking provisions of 5 U.S.C. 553(a)(1). This letter will be

published in the Federal Register.

Sincerely,

Troy H. Cribb,

Chairman, Committee for the Implementation of Textile Agreements.

Annex A

Philippine Items

Philippine Traditional Folklore Handicraft Textile Products

Philippine items are traditional Philippine products, cut, sewn or

otherwise fabricated by hand in cottage units of the cottage industry.

The following is the agreed upon list of such items:

A. Batik and hablon fabrics--hand woven fabrics of the cottage industry.

B. Banaue cloth--cotton handloom fabric in multi-colors.

C. Other hand woven and handloom fabrics of the cottage industry.

D. Articles and garments made by hand from hand woven and hand loomed

fabrics.

Annex B

Merged Categories

331/631

333/334

338/339

340/640

341/641

342/642

347/348

351/651

352/652

359-C/659-C

359-O/659-O

445/446

638/639

645/646

647/648

Part Categories

359-C Cotton overalls and coveralls: only

HTS numbers 6103.42.2025,

6103.49.8034, 6104.62.1020,

6104.69.8010, 6114.20.0048,

6114.20.0052, 6203.42.2010,

6203.42.2090, 6204.62.2010,

6211.32.0010, 6211.32.0025 and

6211.42.0010.

359-O Other: all HTS numbers except those

in Category 359-C.

369-S Swimwear: only HTS number

6307.10.2005.

369-O Other: all HTS numbers except those

in Category 369-S.

659-C Man-made fiber overalls and

coveralls: only HTS numbers

6103.23.0055, 6103.43.2020,

6103.43.2025, 6103.49.2000,

6103.49.8038, 6104.63.1020,

6104.63.1030, 6104.69.1000,

6104.69.8014, 6114.30.3044,

6114.30.3054, 6203.43.2010,

6203.43.2090, 6203.49.1010,

6203.49.1090, 6204.63.1510,

6204.69.1010, 6210.10.9010,

6211.33.0010, 6211.33.0017 and

6211.43.0010.

659-H Hats: only HTS numbers

6502.00.9030, 6504.00.9015,

6504.00.9060, 6505.90.5090,

6505.90.6090, 6505.90.7090 and

6505.90.8090.

659-O Other: all HTS numbers except those

in Categories 659-C and 659-H.

669-P Poly bags: only HTS numbers

6305.32.0010, 6305.32.0020,

6305.33.0010, 6305.33.0020 and

6305.39.0000.

669-O Other: all HTS numbers except those

in Category 669-P.

670-L Luggage: only HTS numbers

4202.12.8030, 4202.12.8070,

4202.92.3020, 4202.92.3030 and

4202.92.9025.

670-O Other: all HTS numbers except those

in Category 670-L.

[FR Doc. 97-21784 Filed 8-15-97; 8:45 am]

BILLING CODE 3510-DR-F