[Federal Register Volume 63, Number 186 (Friday, September 25, 1998)]
[Rules and Regulations]
[Pages 51291-51296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-25722]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Parts 10 and 178
[T.D. 98-76]
RIN 1515-AB59
Andean Trade Preference
AGENCY: Customs Service, Department of the Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document adopts as a final rule, without any changes,
proposed amendments to the Customs Regulations to implement the duty
preference provisions of the Andean Trade Preference Act (the Act). The
final regulatory texts set forth the country of origin and related
rules which apply for purposes of duty-free or reduced-duty treatment
on imported goods under the Act and specify the documentary and other
procedural requirements which apply to any claim for such preferential
tariff treatment under the Act.
EFFECTIVE DATE: October 26, 1998.
FOR FURTHER INFORMATION CONTACT: Operational Aspects: Tony Mazzoccoli,
Office of Field Operations (202-927-0564). Legal Aspects: Craig Walker,
Office of Regulations and Rulings (202-927-1116).
SUPPLEMENTARY INFORMATION:
Background
On December 4, 1991, President Bush signed into law the Andean
Trade Preference Act (Pub. L. 102-182, Title II, Sections 201-206, 105
Stat. 1236-1244) (``the Act'', commonly referred to as the ATPA), the
provisions of which are codified at 19 U.S.C. 3201 through 3206.
Sections 202 and 204(c) of the Act (19 U.S.C. 3201 and 3203(c))
authorize the President to proclaim duty-free treatment for all
eligible articles, and duty reductions for certain other goods, from
any country designated by the President as a beneficiary country
pursuant to section 203 of the Act (19 U.S.C. 3202). On July 2, 1992,
President Bush signed Proclamation 6455 (57 FR 30069) which (1)
proclaimed the duty treatment authorized by the Act, (2) designated
Colombia as a beneficiary country for purposes of the Act, and (3)
modified the Harmonized Tariff Schedule of the United States (HTSUS) to
incorporate the substance of the relevant provisions of the Act; under
the terms of the proclamation, the proclaimed duty treatment was
effective with respect to articles entered, or withdrawn from warehouse
for consumption, on or after July 22, 1992. On the same date President
Bush signed Proclamation 6456 (57 FR 30097) designating Bolivia as a
beneficiary country for purposes of the Act, similarly effective July
22, 1992. On April 13, 1993, President Clinton signed Proclamation 6544
(58 FR 19547) which, among other things, designated Ecuador as a
beneficiary country for purposes of the Act, effective April 30, 1993.
On August 11, 1993, President Clinton signed Proclamation 6585 (58 FR
43239) designating Peru as a beneficiary country for purposes of the
Act, effective August 26, 1993. The modifications to the HTSUS
contained in Proclamation 6455 setting forth the substance of the
relevant provisions of the Act are now contained in General Note 11,
HTSUS, and eligible articles and other goods to which preferential duty
treatment under the Act applies are identified within the HTSUS by the
designation ``J'' appearing with or without an asterisk in the
``Special'' rate of duty subcolumn.
Sections 204(a)-(c) of the Act (19 U.S.C. 3203(a)-(c)) set forth
the standards which govern the eligibility of articles for duty-free or
reduced-duty treatment under the Act. Section 204(a), which contains
the basic origin and related rules for purposes of duty-free treatment,
was based on section 213(a) of the Caribbean Basin Economic Recovery
Act, as amended (19 U.S.C. 2703(a)), which sets forth the origin and
related rules governing duty-free treatment under the Caribbean Basin
Initiative (CBI). Thus, in order to be eligible for duty-free treatment
under the Act, an article imported from a designated beneficiary
country must meet three basic requirements: (1) it must be imported
directly from a beneficiary country into the customs territory of the
United States; (2) it must have its origin in a beneficiary country,
that is, it either must be wholly the growth, product, or manufacture
of a beneficiary country or must be a new or different article of
commerce that has been grown, produced, or manufactured in a
beneficiary country; and (3) it must have a minimum domestic value
content, that is, at least 35 percent of its appraised value must be
attributed to the sum of the cost or value of materials produced in one
or more beneficiary countries plus the direct costs of processing
operations performed in one or more beneficiary countries. The
provisions of section 204(a) of the Act further parallel the provisions
of section 213(a) of the CBI statute in the following regards: (1)
simple combining or packaging operations or mere dilution with water or
another substance does not confer beneficiary country origin on an
imported article or on a constituent material of an imported article;
(2) the term ``beneficiary country'' is defined as including the
Commonwealth of Puerto Rico and the U.S. Virgin Islands for purposes of
determining compliance with the 35 percent value content requirement;
(3) the cost or value of materials produced in the customs territory of
the United States (other than in Puerto Rico) may be counted toward the
35 percent value content requirement to a maximum of 15 percent of the
appraised value of the imported article; and (4) the expression
``direct costs of processing operations'' is defined in the same
manner. However, the origin and related rules of section 204(a) of the
Act differ from the corresponding provisions in section 213(a) of the
CBI statute in two principal respects: (1) section 204(a) of the Act
specifically allows input attributable to one or more CBI beneficiary
countries for purposes of the 35 percent value content requirement (the
corresponding CBI statutory provision makes no mention of input
attributable to beneficiary countries under the Act); and (2) section
204(a) of the Act has no provision corresponding to section 213(a)(4)
of the CBI statute which was added to facilitate the addition of value
to an article in Puerto Rico and the granting of duty-free treatment
after final exportation of an article from a CBI beneficiary country.
Section 204(b) of the Act lists eight categories of goods excluded from
the duty-free treatment provided for in section 204(a), one of which
refers to articles to which reduced rates of duty apply under section
204(c) of the Act. Section 204(c) directs the President to proclaim
reductions in the rates of duty on handbags, luggage, flat goods, work
gloves and leather wearing apparel that: (1) are the product of any
beneficiary country; and (2) were not designated on August 5, 1983, as
eligible articles for purposes of the Generalized System of Preferences
(GSP) under Title V of the Trade Act of 1974 (19 U.S.C. 2461-2466).
These reduced duty rates, which
[[Page 51292]]
were generally implemented in equal annual stages over a 5-year period
(commencing in 1992 and ending in 1996), appear in the HTSUS in the
``Special'' rate of duty subcolumn followed by the symbol ``J'' within
parentheses.
Section 204(a)(2) of the Act directed the Secretary of the Treasury
to promulgate such regulations as may be necessary to carry out the
duty-free treatment provisions of the Act. Accordingly, on January 30,
1998, Customs published in the Federal Register (63 FR 4601) a proposal
to add Secs. 10.201 through 10.208 within part 10 of the Customs
Regulations (19 CFR Part 10) to implement the duty preference
provisions of the Act. In view of the similarity between the origin and
related rules under the Act and those under the CBI, the texts set
forth in the January 30, 1998, notice of proposed rulemaking closely
followed the CBI regulations contained in Secs. 10.191-10.198 of the
Customs Regulations (19 CFR 10.191-10.198) except where statutory
differences or editorial considerations warranted a variance from the
CBI approach.
The January 30, 1998, notice included a detailed, section-by-
section explanation of the proposed new regulatory texts and made
provision for the submission of public comments on the proposed texts
for consideration before adoption of those texts as a final rule. The
prescribed public comment period closed on March 31, 1998, and no
comments on the proposed new regulatory texts were received by Customs
during that comment period. Accordingly, Customs believes that the
proposed texts should be adopted as a final rule without change. The
final regulatory amendments set forth in this document also include an
appropriate update of the list of information collection approvals
contained in Sec. 178.2 of the Customs Regulations (19 CFR 178.2).
Executive Order 12866
This document does not meet the criteria for a ``significant
regulatory action'' as specified in Executive Order 12866.
Regulatory Flexibility Act
Pursuant to the provisions of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.), it is certified that the amendments will not have
a significant economic impact on a substantial number of small
entities. The amendments reflect statutory requirements that are
already in effect and follow existing regulatory provisions that
implement similar statutory programs. Accordingly, the amendments are
not subject to the regulatory analysis or other requirements of 5
U.S.C. 603 and 604.
Paperwork Reduction Act
The collection of information contained in this final rule has been
reviewed and approved by the Office of Management and Budget (OMB) in
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d))
under control number 1515-0219. An agency may not conduct or sponsor,
and a person is not required to respond to, a collection of information
unless it displays a valid control number assigned by OMB.
The collection of information in this final rule is in Sec. 10.207.
This information conforms to requirements in 19 U.S.C. 3203(a) and is
used by Customs to determine whether goods imported from designated
beneficiary countries are entitled to duty-free entry under that
statutory provision. The likely respondents are business organizations
including importers, exporters, and manufacturers.
The estimated average annual burden associated with the collection
of information in this final rule is 2 minutes per respondent or
recordkeeper. Comments concerning the accuracy of this burden estimate
and suggestions for reducing this burden should be directed to the U.S.
Customs Service, Information Services Group, Office of Finance, 1300
Pennsylvania Avenue, NW, Washington, DC. 20229, and to OMB, Attention:
Desk Officer for the Department of the Treasury, Office of Information
and Regulatory Affairs, Washington, DC 20503.
Drafting Information
The principal author of this document was Francis W. Foote, Office
of Regulations and Rulings, U.S. Customs Service. However, personnel
from other offices participated in its development.
List of Subjects
19 CFR Part 10
Andean trade preference, Customs duties and inspection, Entry
procedures, Imports.
19 CFR Part 178
Administrative practice and procedure, Recordkeeping and reporting
requirements.
Amendments to the Regulations
For the reasons stated in the preamble, Parts 10 and 178, Customs
Regulations (19 CFR Parts 10 and 178), are amended as set forth below.
PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,
ETC.
1. The general authority citation for part 10 continues to read,
and a specific authority citation for Secs. 10.201 through 10.207 is
added to read, as follows:
Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508,
1623, 1624, 3314;
* * * * *
Secs. 10.201 through 10.207 also issued under 19 U.S.C. 3203.
2. Part 10 is amended by adding a new center heading followed by
new Secs. 10.201 through 10.208 to read as follows:
Andean Trade Preference
Sec.
10.201 Applicability.
10.202 Definitions.
10.203 Eligibility criteria in general.
10.204 Imported directly.
10.205 Country of origin criteria.
10.206 Value content requirement.
10.207 Procedures for filing duty-free treatment claim and
submitting supporting documentation.
10.208 Duty reductions for certain products.
Andean Trade Preference
Sec. 10.201 Applicability.
Title II of Pub. L. 102-182 (105 Stat. 1233), entitled the Andean
Trade Preference Act (ATPA) and codified at 19 U.S.C. 3201-3206,
authorizes the President to proclaim duty-free treatment for all
eligible articles from any beneficiary country, to designate countries
as beneficiary countries, and to proclaim duty reductions for certain
goods not eligible for duty-free treatment. The provisions of
Secs. 10.202-10.208 of this part set forth the legal requirements and
procedures that apply for purposes of obtaining such duty-free or
reduced-duty treatment for articles from a beneficiary country which
are identified for purposes of such treatment in General Note 11,
Harmonized Tariff Schedule of the United States (HTSUS), and in the
``Special'' rate of duty column of the HTSUS.
Sec. 10.202 Definitions.
The following definitions apply for purposes of Secs. 10.201
through 10.208:
(a) Beneficiary country. Except as otherwise provided in
Sec. 10.206(b), the term ``beneficiary country'' refers to any country
or successor political entity with respect to which there is in effect
a proclamation by the President designating such country or successor
political entity as a beneficiary country
[[Page 51293]]
in accordance with section 203 of the ATPA (19 U.S.C. 3202).
(b) Eligible articles. The term ``eligible'' when used with
reference to an article means merchandise which is imported directly
from a beneficiary country as provided in Sec. 10.204, which meets the
country of origin criteria set forth in Sec. 10.205 and the value-
content requirement set forth in Sec. 10.206, and which, if the
requirements of Sec. 10.207 are met, is therefore entitled to duty-free
treatment under the ATPA. However, the following merchandise shall not
be considered eligible articles entitled to duty-free treatment under
the ATPA:
(1) Textile and apparel articles which are subject to textile
agreements;
(2) Footwear not designated on December 4, 1991, as eligible for
the purpose of the Generalized System of Preferences under Title V,
Trade Act of 1974, as amended (19 U.S.C. 2461-2466);
(3) Tuna, prepared or preserved in any manner, in airtight
containers;
(4) Petroleum, or any product derived from petroleum, provided for
in headings 2709 and 2710, Harmonized Tariff Schedule of the United
States (HTSUS);
(5) Watches and watch parts (including cases, bracelets, and
straps), of whatever type including, but not limited to, mechanical,
quartz digital or quartz analog, if such watches or watch parts contain
any material which is the product of any country with respect to which
HTSUS column 2 rates of duty apply;
(6) Sugars, syrups, and molasses classified in subheadings
1701.11.03, 1701.12.02, 1701.99.02, 1702.90.32, 1806.10.42, and
2106.90.12, HTSUS;
(7) Rum and tafia classified in subheading 2208.40.00, HTSUS; or
(8) Articles to which reduced rates of duty apply under section
204(c) of the ATPA (19 U.S.C. 3203(c)) (see Sec. 10.208).
(c) Entered. The term ``entered'' means entered, or withdrawn from
warehouse for consumption, in the customs territory of the United
States.
(d) Wholly the growth, product, or manufacture of a beneficiary
country. The expression ``wholly the growth, product, or manufacture of
a beneficiary country'' has the same meaning as that set forth in
Sec. 10.191(b)(3) of this part.
Sec. 10.203 Eligibility criteria in general.
An article classifiable under a subheading of the Harmonized Tariff
Schedule of the United States for which a rate of duty of ``Free''
appears in the ``Special'' subcolumn followed by the symbol ``J'' or
``J*'' in parentheses is eligible for duty-free treatment, and will be
accorded such treatment, if each of the following requirements is met:
(a) Imported directly. The article is imported directly from a
beneficiary country as provided in Sec. 10.204.
(b) Country of origin criteria. The article complies with the
country of origin criteria set forth in Sec. 10.205.
(c) Value content requirement. The article complies with the value
content requirement set forth in Sec. 10.206.
(d) Filing of claim and submission of supporting documentation. The
claim for duty-free treatment is filed, and any required documentation
in support of the claim is submitted, in accordance with the procedures
set forth in Sec. 10.207.
Sec. 10.204 Imported directly.
In order to be eligible for duty-free treatment under the ATPA, an
article shall be imported directly from a beneficiary country into the
customs territory of the United States. For purposes of this
requirement, the words ``imported directly'' mean:
(a) Direct shipment from any beneficiary country to the United
States without passing through the territory of any non-beneficiary
country; or
(b) If shipment from any beneficiary country to the United States
was through the territory of a non-beneficiary country, the articles in
the shipment did not enter into the commerce of the non-beneficiary
country while en route to the United States, and the invoices, bills of
lading, and other shipping documents show the United States as the
final destination; or
(c) If shipment from any beneficiary country to the United States
was through the territory of a non-beneficiary country and the invoices
and other documents do not show the United States as the final
destination, then the articles in the shipment, upon arrival in the
United States, are imported directly only if they:
(1) Remained under the control of the customs authority in the
intermediate country;
(2) Did not enter into the commerce of the intermediate country
except for the purpose of sale other than at retail, and the articles
are imported into the United States as a result of the original
commercial transaction between the importer and the producer or the
latter's sales agent; and
(3) Were not subjected to operations in the intermediate country
other than loading and unloading, and other activities necessary to
preserve the articles in good condition.
Sec. 10.205 Country of origin criteria.
(a) General. Except as otherwise provided in paragraph (b) of this
section, an article may be eligible for duty-free treatment under the
ATPA if the article is either:
(1) Wholly the growth, product, or manufacture of a beneficiary
country; or
(2) A new or different article of commerce which has been grown,
produced, or manufactured in a beneficiary country.
(b) Exceptions. No article shall be eligible for duty-free
treatment under the ATPA by virtue of having merely undergone simple
(as opposed to complex or meaningful) combining or packaging
operations, or mere dilution with water or mere dilution with another
substance that does not materially alter the characteristics of the
article. The principles and examples set forth in Sec. 10.195(a)(2) of
this part shall apply equally for purposes of this paragraph.
Sec. 10.206 Value content requirement.
(a) General. An article may be eligible for duty-free treatment
under the ATPA only if the sum of the cost or value of the materials
produced in a beneficiary country or countries, plus the direct costs
of processing operations performed in a beneficiary country or
countries, is not less than 35 percent of the appraised value of the
article at the time it is entered.
(b) Commonwealth of Puerto Rico, U.S. Virgin Islands and CBI
beneficiary countries. For purposes of determining the percentage
referred to in paragraph (a) of this section, the term ``beneficiary
country'' includes the Commonwealth of Puerto Rico, the U.S. Virgin
Islands, and any CBI beneficiary country as defined in
Sec. 10.191(b)(1) of this part. Any cost or value of materials or
direct costs of processing operations attributable to the Virgin
Islands or any CBI beneficiary country must be included in the article
prior to its final exportation to the United States from a beneficiary
country as defined in Sec. 10.202(a).
(c) Materials produced in the United States. For purposes of
determining the percentage referred to in paragraph (a) of this
section, an amount not to exceed 15 percent of the appraised value of
the article at the time it is entered may be attributed to the cost or
value of materials produced in the customs territory of the United
States (other than the Commonwealth of Puerto Rico). The principles set
forth in paragraph (d)(1) of this section shall apply in determining
whether a material is ``produced in the customs territory of the United
States'' for purposes of this paragraph.
(d) Cost or value of materials.--(1) ``Materials produced in a
beneficiary
[[Page 51294]]
country or countries'' defined. For purposes of paragraph (a) of this
section, the words materials produced in a beneficiary country or
countries refer to those materials incorporated in an article which are
either:
(i) Wholly the growth, product, or manufacture of a beneficiary
country or two or more beneficiary countries; or
(ii) Substantially transformed in any beneficiary country or two or
more beneficiary countries into a new or different article of commerce
which is then used in any beneficiary country as defined in
Sec. 10.202(a) in the production or manufacture of a new or different
article which is imported directly into the United States. For purposes
of this paragraph (d)(1)(ii), no material shall be considered to be
substantially transformed into a new or different article of commerce
by virtue of having merely undergone simple (as opposed to complex or
meaningful) combining or packaging operations, or mere dilution with
water or mere dilution with another substance that does not materially
alter the characteristics of the article. The examples set forth in
Sec. 10.196(a) of this part, and the principles and examples set forth
in Sec. 10.195(a)(2) of this part, shall apply for purposes of the
corresponding context under paragraph (d)(1) of this section.
(2) Questionable origin. When the origin of a material either is
not ascertainable or is not satisfactorily demonstrated to the
appropriate port director, the material shall not be considered to have
been grown, produced, or manufactured in a beneficiary country or in
the customs territory of the United States.
(3) Determination of cost or value of materials. (i) The cost or
value of materials produced in a beneficiary country or countries or in
the customs territory of the United States includes:
(A) The manufacturer's actual cost for the materials;
(B) When not included in the manufacturer's actual cost for the
materials, the freight, insurance, packing, and all other costs
incurred in transporting the materials to the manufacturer's plant;
(C) The actual cost of waste or spoilage, less the value of
recoverable scrap; and
(D) Taxes and/or duties imposed on the materials by any beneficiary
country or by the United States, provided they are not remitted upon
exportation.
(ii) Where a material is provided to the manufacturer without
charge, or at less than fair market value, its cost or value shall be
determined by computing the sum of:
(A) All expenses incurred in the growth, production, or manufacture
of the material, including general expenses;
(B) An amount for profit; and
(C) Freight, insurance, packing, and all other costs incurred in
transporting the material to the manufacturer's plant.
(iii) If the pertinent information needed to compute the cost or
value of a material is not available, the appraising officer may
ascertain or estimate the value thereof using all reasonable ways and
means at his disposal.
(e) Direct costs of processing operations.--(1) Items included. For
purposes of paragraph (a) of this section, the words direct costs of
processing operations mean those costs either directly incurred in, or
which can be reasonably allocated to, the growth, production,
manufacture, or assembly of the specific merchandise under
consideration. Such costs include, but are not limited to the
following, to the extent that they are includable in the appraised
value of the imported merchandise:
(i) All actual labor costs involved in the growth, production,
manufacture, or assembly of the specific merchandise, including fringe
benefits, on-the-job training, and the cost of engineering,
supervisory, quality control, and similar personnel;
(ii) Dies, molds, tooling, and depreciation on machinery and
equipment which are allocable to the specific merchandise;
(iii) Research, development, design, engineering, and blueprint
costs insofar as they are allocable to the specific merchandise; and
(iv) Costs of inspecting and testing the specific merchandise.
(2) Items not included. For purposes of paragraph (a) of this
section, the words ``direct costs of processing operations'' do not
include items which are not directly attributable to the merchandise
under consideration or are not costs of manufacturing the product.
These include, but are not limited to:
(i) Profit; and
(ii) General expenses of doing business which either are not
allocable to the specific merchandise or are not related to the growth,
production, manufacture, or assembly of the merchandise, such as
administrative salaries, casualty and liability insurance, advertising,
and salesmen's salaries, commissions, or expenses.
(f) Articles wholly the growth, product, or manufacture of a
beneficiary country. Any article which is wholly the growth, product,
or manufacture of a beneficiary country as defined in Sec. 10.202(a),
and any article produced or manufactured in a beneficiary country as
defined in Sec. 10.202(a) exclusively from materials which are wholly
the growth, product, or manufacture of a beneficiary country or
countries, shall normally be presumed to meet the requirement set forth
in paragraph (a) of this section.
Sec. 10.207 Procedures for filing duty-free treatment claim and
submitting supporting documentation.
(a) Filing claim for duty-free treatment. Except as provided in
paragraph (c) of this section, a claim for duty-free treatment under
the ATPA may be made at the time of filing the entry summary by placing
the symbol ``J'' as a prefix to the Harmonized Tariff Schedule of the
United States subheading number applicable to each article for which
duty-free treatment is claimed on that document.
(b) Shipments covered by a formal entry.--(1) Articles not wholly
the growth, product, or manufacture of a beneficiary country.--(i)
Declaration. In a case involving an article covered by a formal entry
for which duty-free treatment is claimed under the ATPA and which is
not wholly the growth, product, or manufacture of a single beneficiary
country as defined in Sec. 10.202(a), the exporter or other appropriate
party having knowledge of the relevant facts in the beneficiary country
as defined in Sec. 10.202(a) where the article was produced or last
processed shall be prepared to submit directly to the port director,
upon request, a declaration setting forth all pertinent detailed
information concerning the production or manufacture of the article.
When requested by the port director, the declaration shall be prepared
in substantially the following form:
ATPA DECLARATION
I, ______________(name), hereby declare that the articles
described below (a) were produced or manufactured in ______________
(country) by means of processing operations performed in that country
as set forth below and were also subjected to processing operations in
the other beneficiary country or countries (including the Commonwealth
of Puerto Rico, the U.S. Virgin Islands, and any CBI beneficiary
country) as set forth below and (b) incorporate materials produced in
the country named above or in any other beneficiary country or
countries (including the Commonwealth of Puerto Rico, the U.S. Virgin
Islands, and any CBI beneficiary country) or in the customs territory
of the United States (other than the Commonwealth of Puerto Rico) as
set forth below:
[[Page 51295]]
-----------------------------------------------------------------------
Date-------------------------------------------------------------------
Address----------------------------------------------------------------
Signature--------------------------------------------------------------
Title------------------------------------------------------------------
(ii) Retention of records and submission of declaration. The
information necessary for the preparation of the declaration shall be
retained in the files of the party responsible for its preparation and
submission for a period of 5 years. In the event that the port director
requests submission of the declaration during the 5-year period, it
shall be submitted by the appropriate party directly to the port
director within 60 days of the date of the request or such additional
period as the port director may allow for good cause shown. Failure to
submit the declaration in a timely fashion will result in a denial of
duty-free treatment.
(iii) Value added after final exportation. In a case in which value
is added to an article in the Commonwealth of Puerto Rico or in the
United States after final exportation of the article from a beneficiary
country as defined in Sec. 10.202(a), in order to ensure compliance
with the value requirement under Sec. 10.206(a), the declaration
provided for in paragraph (b)(1)(i) of this section shall be filed by
the importer or consignee with the entry summary. The declaration shall
be completed by the party responsible for the addition of such value.
(2) Articles wholly the growth, product, or manufacture of a
beneficiary country. In a case involving an article covered by a formal
entry for which duty-free treatment is claimed under the ATPA and which
is wholly the growth, product, or manufacture of a single beneficiary
country as defined in Sec. 10.202(a), a statement to that effect shall
be included on the commercial invoice provided to Customs.
(c) Shipments covered by an informal entry. The normal procedure
for filing a claim for duty-free treatment as set forth in paragraph
(a) of this section need not be followed, and the filing of the
declaration provided for in paragraph (b)(1)(i) of this section will
not be required, in a case involving a shipment covered by an informal
entry. However, the port director may require submission of such other
evidence of entitlement to duty-free treatment as deemed necessary.
(d) Evidence of direct importation.--(1) Submission. The port
director may require that appropriate shipping papers, invoices, or
other documents be submitted within 60 days of the date of entry as
evidence that the articles were ``imported directly'', as that term is
defined in Sec. 10.204.
(2) Waiver. The port director may waive the submission of evidence
of direct importation when otherwise satisfied, taking into
consideration the kind and value of the merchandise, that the
merchandise was, in fact, imported directly and that it otherwise
clearly qualifies for duty-free treatment under the ATPA.
(e) Verification of documentation. The documentation submitted
under this section to demonstrate compliance with the requirements for
duty-free treatment under the ATPA shall be subject to such
verification as the port director deems necessary. In the event that
the port director is prevented from obtaining the necessary
verification, the port director may treat the entry as fully dutiable.
Sec. 10.208 Duty reductions for certain products.
(a) General. Handbags, luggage, flat goods, work gloves, and
leather wearing apparel that were not designated on August 5, 1983, as
eligible articles for purposes of the Generalized System of Preferences
under Title V, Trade Act of 1974, as amended (19 U.S.C. 2461-2466), are
not eligible for duty-free treatment under the ATPA. However, any such
article from a beneficiary country may be subject to a reduced rate of
duty set forth in the Harmonized Tariff Schedule of the United States
in the applicable ``Special'' subcolumn followed by the symbol ``J'' in
parenthesis, provided the article is a product of any beneficiary
country. For purposes of this section, an article is a ``product of'' a
beneficiary country if the article is either:
(1) Wholly the growth, product, or manufacture of a beneficiary
country; or
(2) A new or different article of commerce which has been grown,
produced, or manufactured in a beneficiary country.
(b) Filing reduced-duty claim. A claim for reduced-duty treatment
under the ATPA may be made at the time of filing the entry summary or
other entry document by placing thereon the symbol ``J'' as a prefix to
the Harmonized Tariff Schedule of the United States subheading number
applicable to each article for which reduced-duty treatment is claimed
and by placing thereon the reduced duty rate applicable to each such
article.
(c) Verification of reduced-duty claim. Any claim for reduced-duty
treatment under this section shall be subject to such verification as
the port director deems necessary. In the event that the port director
is prevented from obtaining the necessary verification, the port
director may treat the entry as dutiable at the applicable non-ATPA
rate.
PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS
1. The authority citation for part 178 continues to read as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44 U.S.C. 3501 et seq.
2. Section 178.2 is amended by adding a new listing to the table in
numerical order to read as follows:
Sec. 178.2 Listing of OMB control numbers.
------------------------------------------------------------------------
OMB control
19 CFR Section Description no.
------------------------------------------------------------------------
* * * * * * *
Sec. 10.207................... Claim for duty-free entry 1515-0219
of eligible articles
under the Andean Trade
Preference Act.
* * * * * * *
------------------------------------------------------------------------
[[Page 51296]]
Douglas M. Browning,
Acting Commissioner of Customs.
Approved: August 31, 1998.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 98-25722 Filed 9-24-98; 8:45 am]
BILLING CODE 4820-02-P
