Comment from Lynnette Keffer, J & K Fresh, LLC

This comment is in support of the Chile FTA Tariff Acceleration for Hass Avocados, HS 0804.40.001. J & K Fresh, LLC is a Customhouse Broker (licensed by the federal government) specializing in the clearance of fresh produce. J & K is based in Inglewood, California and conducts Customs business at the Ports of Los Angeles-Long Beach, Port Hueneme, and San Diego. Our firm files the import documentation for at least 95% of the Chilean Avocados entering West Coast Ports. The majority of our clients are suppliers of US grown avocados. Avocados are imported from the southern hemisphere when the US harvests end, which enable our clients to supply the US market year-round. Hass Avocados are supplied by Chile, Mexico, Dominican Republic, and Peru (countries of the Americas) for the U.S. Market. Only Hass Avocados from Chile are assessed a tariff. In addition, the tariff is based on a quantitive quota, which opens and closes twice a year. It is a very complicated and costly process for both the government and the private sector. Each time the quota threshold is reached entries are held so that the quota can be administered and charged according to the date and time of presentation of the Customs Entry. Although the intent of this required procedure is not meant to be unfair, the fact is that it is unfair. For example, we may have several Hass Avocado shipments arriving on the same vessel. We prepare the documentation all at the same time and take it to Customs for filing. For quota purposes the documentation is time-stamped at CBP. The quota is charged according to the exact time of filing. Many times there are too many entries to file in the same minute; and one minute can make the difference in the avocados being included in the duty-free quota or being charged duty. It is not fair that shipments for Chilean Hass Avocados arriving on the same vessel, prepared and presented together are charged differently (some free, some pro-rated, and some at full tariff) because of a minute difference in the time stamp. It should also be noted that avocado importers pay a fee of 5 cents per kilo for funding the Federal promotion program. These funds are used to promote the consumption of Hass avocados in the US. Hass avocado consumption has increased from 600 million pounds in 2000 to over 1.3 billion pounds in 2010. Increased consumption is in line with the US government promoting Americans to increase their consumption of fresh fruit and vegetables for better health. The Chilean suppliers and the US importers that we work with are all in favor of the elimination of the tariff as it would free up additional funds to promote consumption. We conclude that it is discriminatory to charge a tariff for Chilean Hass Avocados when there is no tariff for the other Hass Avocado producing countries of the Americas. It is further unfair that the tariff is based on a quantitive quota. In addition, it is noted that the importation and tariff elimination for Hass Avocados does not present a threat to the U.S. producers of Hass Avocados. In fact, Chilean Hass Avocados compliment the market, enabling the U.S. companies to meet the year-round supply and demand for fresh Hass Avocados. Therefore, we urge your office to take the necessary steps to accelerate the elimination of the tariff for Hass Avocados from Chile as soon as possible.