[Federal Register Volume 62, Number 29 (Wednesday, February 12, 1997)]
[Rules and Regulations]
[Pages 6466-6468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3415]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
14 CFR Part 1217
RIN 2700-AC12
Duty-Free Entry of Space Articles
AGENCY: National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: NASA is revising 14 CFR part 1217 to reflect the current
import authority for the Agency, as proclaimed by the President on
March 23, 1995, and to streamline and clarify NASA's internal
procedures for the implementation of this authority.
EFFECTIVE DATE: January 1, 1997.
FOR FURTHER INFORMATION CONTACT:
John F. Hall, Jr., Senior Attorney (Commercial), 202-358-2432.
SUPPLEMENTARY INFORMATION: On March 23, 1995, the President issued
Proclamation 6780 (60 FR 15845), which included an extension and
expansion of NASA's authority with respect to duty-free imports of
articles for use by NASA and for the implementation of its
international programs. NASA's previous duty-free certification
authority expired by operation of law on December 31, 1994.
This final rule revises NASA's duty-free import regulation, found
in 14 CFR part 1271, to reflect the broader duty-free import authority
promulgated by the President, and additionally streamlines and
clarifies the internal Agency procedures for implementation of this
authority. In accordance with U.S. note 1 subchapter VIII of chapter
98, Harmonized Tariff Schedule of the United States (HTSUS), as revised
by Proclamation 6780, only imports which are procurements for NASA will
be subject to customs entry procedures; however, all imports for NASA's
domestic and international programs, including procurements, may be
certified for duty-free treatment. This rule also permits the issuance
of duty-free import certificates by designated officials at NASA Field
Centers.
Since this action is administrative in nature and involves Agency
policy management procedures, no public comment period is required.
I certify that this action is not a ``significant regulatory
action'' under Executive Order 12866.
List of Subjects in 14 CFR Part 1217
Customs duties and inspection, Space transportation and
exploration.
For the reasons set out in the preamble, 14 CFR part 1217 is
revised to read as follows:
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PART 1217--DUTY-FREE ENTRY OF SPACE ARTICLES
Sec.
1217.100 Scope.
1217.101 Applicability.
1217.102 Background.
1217.103 Authority to certify.
1217.104 Certification forms.
1217.105 Procedures.
1217.106 Articles brought into the United States by NASA from
space.
Authority: Sections 101 and 103 of Pub. L. 103-465, 108 Stat.
4814 and 4819; Proclamation No. 6780 of March 23, 1995, 60 FR 15845
(March 27, 1995).
Sec. 1217.100 Scope.
This part sets forth policy and procedures with respect to the use
of the NASA's authority to certify to the U.S. Commissioner of Customs
duty-free entry of articles into the United States for the use of NASA
or for implementation of a NASA international program, including
articles that will be launched into space, spare parts for such
articles, ground support equipment, or uniquely associated equipment
for use in connection with a NASA international program or launch
service agreement. This Part also sets forth NASA's procedures with
respect to the use of its authority to bring foreign-owned articles and
articles from space into the customs territory of the United States,
and describes the nonimport status of such articles.
Sec. 1217.101 Applicability.
This part applies to qualifying articles entered or withdrawn from
warehouse for consumption in the customs territory of the United
States, and to articles brought into the customs territory of the
United States by NASA from space or from foreign country as part of the
NASA international program.
Sec. 1217.102 Background.
In order to encourage and facilitate the use of NASA's launch
services for the exploration and use of space, section 116 of Public
Law 97-446 provided for the duty-free entry into the United States of
certain articles imported by NASA for its space-related activities or
articles imported by another person or entity for the purpose of
meeting its obligations under a launch services agreement with NASA.
Such articles were certified by NASA to the Commissioner of Customs for
duty-free entry to be launched into space or space parts or necessary
and uniquely associated support equipment for use in connection with a
launch into space. This exemption from duty was provided for in
Subheading 9808.00.80, Harmonized Tariff Schedule of the United States
(HTSUS) (19 U.S.C. 1202). Also, HTSUS, Chapter VIII, U.S. note 1,
pursuant to the same law, provided that return of articles by NASA from
space to the United States would not be considered an importation, and
similarly not be subject to a duty.
As a result of the Uruguay Round agreements of the 1994 General
Agreement on Tariffs and Trade, this authority was revised and expanded
in scope. It now provides that imports of articles for NASA's use and
articles imported to implement NASA's international programs, including
articles to be launched into space, parts thereof, ground support
equipment, and uniquely associated equipment for use in connection with
NASA's international programs and launch service agreements would be
eligible for duty-free customs entry upon certification by NASA to the
Commissioner of Customs. The revised authorities also provided, in U.S.
note 1 to subchapter VIII of chapter 98 of the HTSUS, that articles
brought into the customs territory of the United States by NASA from
space or from a foreign country as part of a NASA's international
programs would not be considered imports or subject to customs entry
requirements.
Sec. 1217.103 Authority to certify.
(a) The following NASA officials, their deputies, and designees
within their respective organizations are authorized, under the
conditions described herein, to make the certification to the
Commissioner of Customs required for the duty-free entry of space
articles pursuant to subheading HTSUS 9808.00.80.
(1) The NASA Associate Administrator for Procurement is authorized
to issue the certification for articles imported into the United States
which are procured by NASA or by other U.S. Government agencies, or by
U.S. Government contractors or subcontractors when title to the
articles is or will be vested in the U.S. Government pursuant to the
terms of the contract or subcontract. Requests for certification should
be sent to: Office of Procurement, Attn: HK/Director, Contract
Management Division, National Aeronautics and Space Administration,
Washington, DC 20546.
(2) The NASA Associate Administrator for External Relations is
authorized to issue the certification for articles imported into the
United States pursuant to international agreements. Requests for
certification should be sent to: Office of External Relations, Attn:
ID/Manager, International Technology Transfer Policy, National
Aeronautics and Space Administration, Washington, DC 20546.
(3) The NASA Associate Administrator for Space Flight is authorized
to issue the certification for articles imported into the United States
by persons or entities under agreements other than those identified in
paragraphs (a)(1) and (a)(2) of this section, including launch services
agreements. Requests for certification should be sent to: Office of
Space Flight, Attn: M/Director, Space Operations Utilization, National
Aeronautics and Space Administration, Washington, DC 20546.
(b) Each certification by the officials identified in paragraphs
(a)(1), (a)(2), and (a)(3) of this section shall receive the
concurrence of the Office of the General Counsel.
(c) Subject to procedures established by the officials identified
in paragraphs (a)(1), (a)(2), or (a)(3) of this section, as
appropriate, the Center Procurement Officer or a Program Manager at a
NASA Installation who is designated by an official identified in
paragraphs (a)(1), (a)(2), or (a)(3) of this section may make the
certification to the Commissioner of Customs required for the duty-free
entry of space articles pursuant to subheading HTSUS 9808.00.80. Such
procedures shall include the following requirements:
(1) All such certifications by designated Procurement Officers or
Program Managers shall receive the concurrence of the Chief Counsel of
the issuing NASA Installation; and
(2) All such certifications by designated Procurement Officers or
Program Managers shall be promptly reported to an official identified
in paragraphs (a)(1), (a)(2), or (a)(3) of this section, as
appropriate.
Sec. 1217.104 Certification forms.
To the extent an authorized NASA official approves a request for
certification, that official shall sign a certificate in the following
form:
(a) For articles procured by NASA, a Customs Service Form CF 7501
(Entry Summary) shall be completed, and the following certification
shall be used:
Articles for the National Aeronautics and Space Administration
Item 9808.00.80, Harmonized Tariff Schedule of the United States
Program:---------------------------------------------------------------
I hereby certify that the articles identified in [attached
invoice] are being imported for the use of the National Aeronautics
and Space Administration (NASA) in accordance with 9808.00.80,
Harmonized Tariff Schedule of the United States.
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(b) For articles imported by NASA to implement international
programs of NASA to which NASA will take title, or which remain the
property of foreign entities under such programs, no entry is required
pursuant to U.S. note 1 to HTSUS subchapter VIII of chapter 98. For
such articles, the following certification shall be used:
Articles for Use in an International Program of the National
Aeronautics and Space Administration
Item 9808.00.80, Harmonized Tariff Schedule of the United States
Program:---------------------------------------------------------------
Foreign Owner(s) (if applicable):--------------------------------------
In accordance with subheading 9808.00.80 and U.S. note 1 to
subchapter VIII of chapter 98, Harmonized Tariff Schedule of the
United States, I hereby certify that the above-described shipment is
being brought into the customs territory of the United States as
part of an international program of the National Aeronautics and
Space Administration (NASA). No CF 7501 entry is required for this
shipment. All articles contained in this shipment are, and shall
remain, the property of NASA or of the foreign entities identified
above. Except for articles consumed in the execution of the above-
described Program, none of these articles will be made available for
sale or other disposition to persons or institutions not directly
involved in the Program identified above.
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(c) A blanket certificate for a series of imports under a specific
NASA international program or procurement is authorized but shall
require written verification by a NASA official designated by a
Director of a receiving NASA Installation that the articles received
meet the conditions of the certificate. The blanket certificate shall
be in the form of the certifications set forth in paragraphs (a) or (b)
of this section, as appropriate, but shall include the following
paragraph at the end thereof:
Before this certification is used to obtain duty-free entry of
these articles, a cognizant NASA official at the receiving NASA
Installation, who is designated by the Installation Director, shall
verify in writing that specifically identified articles to be
entered on a particular date are the articles described in this
certificate or its attachments. This verification and this
certification shall be presented to the U.S. Customs Service at the
time entry for the particular articles is sought.
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With respect to articles represented to be: procurements by NASA;
or imports to implement international programs of NASA to which NASA
will take title, or foreign-owned articles for use in a NASA
international program, the NASA official issuing the blanket
certificate shall review the proposed articles and approve their
eligibility for duty-free entry. A description of these articles shall
either be referred to in the blanket certificate and provided in Form
CF 7501 (Entry Summary) for procurements or attached to the certificate
for imports to implement NASA international programs, as appropriate.
Sec. 1217.105 Procedures.
(a) Requests for certification shall be forwarded to an appropriate
NASA official or designee as provided for in Sec. 1217.103 of this
part.
(b) Each request for certification shall be accompanied by:
(1) A proposed certificate as provided for in Sec. 1217.104 of this
part;
(2) The information and documentation required by 19 CFR 10.102(a),
including invoice documentation or a description of covered articles;
and
(3) The anticipated date of entry of entry and port of entry for
each article. If the article is to be transported in bond from the port
of arrival to another port of entry in the United States, identify both
ports.
(c) The signed certificate and its attachment(s) will be forwarded
to the NASA Installation responsible for duty-free entry of the
materials, unless issued at such Installation by an authorized official
in accordance with Sec. 1217.103(c) of this part. These documents shall
be presented to an appropriated Customs official at the port(s) of
entry. The procedures specified in 19 CFR 10.102 will be followed by
the NASA Installation in obtaining duty-free entry at the Customs
port(s) of entry. The NASA Installation should ensure that, at the time
the articles are to be released after Customs entry, the custody of the
imported articles is transferred directly from the carrier or from the
U.S. Customs Service to the NASA Installation, its agent, or the launch
service customer in the case of a Launch and Associated Services
Agreement.
(d) If articles procured under contract by NASA are imported prior
to compliance with these procedures and it is essential that the
articles be released from Customs custody prior to such compliance, the
procedures outlined in 19 CFR 10.101 may be followed by cognizant NASA
officials to secure the release of the articles from Customs custody.
To the extent applicable, the procedures in Sec. 1217.105 of this part
shall be followed when time permits to obtain duty-free entry for the
articles released from Customs custody.
Sec. 1217.106 Articles brought into the United States by NASA from
space.
Pursuant to U.S. note 1 subchapter VIII of chapter 98, HTSUS,
articles brought into the customs territory of the United States by
NASA from space shall not be considered an importation, and no
certification or entry of such materials through U.S. Customs shall be
required. This provision is applicable to articles brought to the U.S.
from space whether or not the articles were launched into space aboard
a NASA vehicle.
Daniel S. Goldin,
Administrator.
[FR Doc. 97-3415 Filed 2-11-97; 8:45 am]
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