[Federal Register Volume 60, Number 70 (Wednesday, April 12, 1995)]
[Rules and Regulations]
[Pages 18542-18543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8917]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 10
[T.D. 95-30]
RIN 1515-AB69
Termination of the Bahamas as a Designated Beneficiary Developing
Country Under the GSP
AGENCY: Customs Service, Department of the Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document amends the Customs Regulations pertaining to the
Generalized System of Preferences (GSP) direct importation requirement
by adding the Bahamas to the list of countries whose membership in an
association of countries for GSP purposes has been terminated by the
President. This amendment is intended to clarify that goods of a
current beneficiary developing country (BDC) member of the Caribbean
Common Market (CARICOM) may be shipped to the United States through the
Bahamas and still be considered to be imported directly, provided other
applicable regulatory requirements are met. Also, the authority
citation for Part 10 is revised to reference an applicable General Note
provision of the North American Free Trade Agreement.
EFFECTIVE DATE: April 12, 1995.
FOR FURTHER INFORMATION CONTACT: Lisa Crosby, Office of Field
Operations (202) 927-0163.
SUPPLEMENTARY INFORMATION: Title V of the Trade Act of 1974, as amended
(19 U.S.C. 2461-2465), authorizes the President to establish a
Generalized System of Preferences (GSP)--a trade preference program--to
provide duty-free treatment for articles which (1) are designated by
the President as eligible articles for purposes of the GSP, (2) are the
growth, product, or manufacture of a country designated by the
President as a beneficiary developing country (BDC) for purposes of the
GSP, (3) have at least 35 percent of their appraised value attributable
to the cost or value of materials produced in the BDC and/or the direct
costs of processing operations performed in the BDC, and (4) are
imported directly from the BDC into the Customs territory of the United
States. The Customs Regulations implementing the GSP are contained in
Secs. 10.171-10.178 (19 CFR 10.171-10.178).
Limitations on preferential treatment under the GSP are contained
in 19 U.S.C. 2464. One of the limitations provided for concerns per
capita gross national product of a BDC for the determination year: If
the President determines that this measure of a designated BDC exceeds
the applicable limit for the determination year, then the country will
no longer be treated as a BDC. 19 U.S.C. 2464(f).
On February 3, 1995, the President signed Presidential Proclamation
6767, which provided, inter alia, that he had determined that the per
capita gross national product of the Bahamas exceeded the applicable
limit provided for in the Trade Act of 1974. Accordingly, the
Proclamation deleted the Bahamas from the GSP lists of independent
countries and member countries of the Caribbean Common Market
(CARICOM), set forth in General Note 4(a) of the Harmonized Tariff
Schedule of the United States (HTSUS).
Section 10.175 of the Customs Regulations (19 CFR 10.175) concerns
the GSP direct importation requirement. Paragraph (e)(1) of Sec. 10.175
permits shipment to the United States from a BDC through the territory
of a former BDC whose designation as a member of the same association
for GSP purposes was terminated by the President pursuant to 19 U.S.C.
2464, provided certain requirements are met. Paragraph (e)(2) of
Sec. 10.175 lists such former BDC association members.
This document amends Sec. 10.175(e)(2) of the Customs Regulations
by adding the Bahamas to the list of countries whose membership in an
association of countries for Generalized System of Preferences (GSP)
purposes has been terminated by the President. This amendment is
intended to clarify that goods of a current BDC member of the CARICOM
may be shipped to the United States through the Bahamas and still be
considered to be imported directly, provided the requirements of
Sec. 10.175(e)(1) are satisfied.
Also, the general authority citation for Part 10 is revised to
reference certain General Note provisions of the Harmonized Tariff
Schedule of the United States (HTSUS): General Note 12, which deals
with provisions of the North American Free Trade Agreement, General
Note 17, which deals with commingled goods, and General Note 20, which
authorizes the Secretary of the Treasury to issue rules and regulations
governing the admission of articles under the provisions of the tariff
schedule. This document adds these reference changes.
Inapplicability of Public Notice and Comment Requirements, Delayed
Effective Date Requirements, the Regulatory Flexibility Act, and
Executive Order 12866
Because this regulation is necessary to support the objectives of
the existing GSP program and since it constitutes a conforming
amendment to a benefit already granted the general public, it is
determined pursuant to 5 U.S.C. 553(b)(B) that notice and public
procedures are unnecessary and contrary to the public interest.
Furthermore, for the above reasons, it is determined that good cause
exists under the provisions of 5 U.S.C. 553(d)(3) for dispensing with a
delayed effective date. Since this document is not subject to the
notice and public procedure requirements of 5 U.S.C. 553, it is not
subject to provisions of the Regulatory Flexibility Act (5 U.S.C. 601
et seq.). This amendment does not meet the criteria for a ``significant
regulatory action'' as specified in E.O. 12866.
Drafting Information
The principal author of this document was Gregory R. Vilders,
Attorney, Regulations Branch, U.S. Customs Service. However, personnel
from other offices participated in its development.
List of Subjects in 19 CFR Part 10
Customs duties and inspection, Foreign relations, Imports,
Preference programs, Reporting and recordkeeping requirements, Trade
agreements (Generalized System of Preferences). [[Page 18543]]
Amendments to the Regulations
For the reasons set forth above, Part 10, Customs Regulations (19
CFR part 10) is amended as set forth below:
PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,
ETC.
1. The general authority citation for Part 10 is revised to read as
follows:
Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484,
1498, 1508, 1623, 1624;
* * * * *
Sec. 10.175 [Amended]
2. In Sec. 10.175, paragraph (e)(2) is amended by adding ``The
Bahamas'' to the list of countries in appropriate alphabetical order.
Approved: March 8, 1995.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
Michael H. Lane,
Acting Commissioner of Customs.
[FR Doc. 95-8917 Filed 4-11-95; 8:45 am]
BILLING CODE 4820-02-P
