[Federal Register Volume 61, Number 25 (Tuesday, February 6, 1996)]
[Notices]
[Pages 4485-4486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2536]
=======================================================================
-----------------------------------------------------------------------
INTERNATIONAL TRADE COMMISSION
[Investigation No. 332-360]
International Harmonization of Customs Rules of Origin
AGENCY: United States International Trade Commission.
ACTION: Request for public comment on draft chapters 41-49.
-----------------------------------------------------------------------
EFFECTIVE DATE: January 26, 1995.
FOR FURTHER INFORMATION CONTACT: Eugene A. Rosengarden, Director,
Office of Tariff Affairs and Trade Agreements (O/TA&TA) (202-205-2595),
or Lawrence A. DiRicco (202-205-2606). Questions with regard to
specific chapters of the Harmonized Tariff Schedule of the United
States (HTS) should be directed to the following coordinators:
Chapters 1-24, 41-49--Ronald H. Heller (202-205-2596)
Chapters 25-40--Edward J. Matusik (202-205-3356)
Chapters 50-63--Janis L. Summers (202-205-2605)
Chapters 64-83, 86-89, 92-97--Lawrence A. DiRicco (202-205-2606)
Chapters 84-85, 90-91, 98-99--Craig M. Houser (202-205-2597)
Parties having an interest in particular products or HTS chapters
and desiring to be included on a mailing list to receive available
documents pertaining thereto should advise Diane Whitfield by phone
(202-205-2610) or by mail at the Commission, 500 E St SW, Room 404,
Washington, D.C. 20436. Hearing impaired persons are advised that
information on this matter can be obtained by contacting the
Commission's TDD terminal on 202-205-1810. The media should contact
Margaret O'Laughlin, Director, Office of Public Affairs (202-205-1819).
Background:
Following receipt of a letter from the United States Trade
Representative (USTR) on January 25, 1995, the Commission instituted
Investigation No. 332-360, International Harmonization of Customs Rules
of Origin, under section 332(g) of the Tariff Act of 1930 (60 FR 19605,
April 19, 1995).
The investigation is intended to provide the basis for Commission
participation in work pertaining to the Uruguay Round Agreement on
Rules of Origin (ARO), under the General Agreement on Tariffs and Trade
(GATT) 1994 and adopted along with the Agreement Establishing the World
Trade Organization (WTO).
The ARO is designed to harmonize and clarify nonpreferential rules
of origin for goods in trade on the basis of the substantial
transformation test; achieve discipline in the rules' administration;
and provide a framework for notification, review, consultation, and
dispute settlement. These harmonized rules are intended to make
country-of-origin determinations impartial, predictable, transparent,
consistent, and neutral, and to avoid restrictive or distortive effects
on international trade. The ARO provides that technical work to those
ends will be undertaken by the Customs Cooperation Council (CCC) (now
informally known as the World Customs Organization or WCO), which must
report on specified matters relating to such rules for further action
by parties to the ARO. Eventually, the WTO Ministerial Conference is to
``establish the results of the harmonization work program in an annex
as an integral part'' of the ARO.
In order to carry out the work, the ARO calls for the establishment
of a Committee on Rules of Origin of the WTO and a Technical Committee
on Rules of Origin (TCRO) of the CCC. These Committees bear the primary
responsibility for developing rules that achieve the objectives of the
ARO.
A major component of the work program is the harmonization of
origin rules for the purpose of providing more certainty in the conduct
of world trade. To this end, the agreement contemplates a 3-year CCC
program, to be initiated as soon as possible after the entry into force
of the Agreement Establishing the WTO. Under the ARO, the TCRO is to
undertake (1) to develop harmonized definitions of goods considered
wholly obtained in one country, and of minimal processes or operations
deemed not to confer origin, (2) to consider the use of change in
Harmonized System classification as a means of reflecting substantial
transformation, and (3) for those products or sectors where a change of
tariff classification does not allow for the reflection of substantial
transformation, to develop supplementary or exclusive origin criteria
based on value, manufacturing or processing operations or on other
standards.
To assist in the Commission's participation in work under the
Agreement on Rules of Origin (ARO), the Commission is making available
for public comment a draft of proposed rules for goods of chapters 41-
49 of the Harmonized System that are not considered to be wholly made
in a single country. The rules rely largely on the change of heading as
a basis for ascribing origin.
Copies of the proposed revised rules will be available from the
Office of the Secretary at the Commission, from the Commission's
Internet web server (http://www.usitc.gov), by calling the Office of
Tariff Affairs and Trade Agreements voice messaging system, 202-205-
2592 or by FAX at 202-205-2616.
These proposals, which have been reviewed by interested government
agencies, are intended to serve as the basis for the U.S. proposal to
the Technical Committee on Rules of Origin (TCRO) of the Customs
Cooperation Council (CCC) (now known as the World Customs Organization
or WCO). The proposals do not necessarily reflect or restate existing
Customs treatment with respect to country of origin applications for
all current non-preferential purposes. Based upon a decision of the
Trade Policy Staff Committee, the proposals are intended for future
harmonization for the nonpreferential purposes indicated in the ARO for
application on a global basis. They seek to take into account not only
U.S. Customs current positions on substantial transformation but
additionally seek to consider the views of the business community and
practices of our major trading partners as well. As such they represent
an attempt at reaching a basis for agreement among the contracting
parties. The proposals may undergo change as proposals from other
administrations and the private sector are received and considered.
Under the circumstances, the proposals should not be cited as authority
for the application of current domestic law.
If eventually adopted by the TCRO for submission to the Committee
on Rules of Origin of the World Trade Organization, these proposals
would comprise an important element of the ARO work program to develop
harmonized, non-preferential country of origin rules, as discussed in
the Commission's earlier notice. Thus, in view of the importance of
these rules, the Commission seeks to ascertain the views of interested
parties concerning the extent to which the proposed rules reflect the
standard of substantial transformation provided in the Agreement. In
addition, comments are also invited on the format of the
[[Page 4486]]
proposed rules and whether it is preferable to another presentation,
such as the format for the presentation of the NAFTA origin or marking
rules.
Forthcoming Commission notices will advise the public on the
progress of the TCRO's work and will contain any harmonized definitions
or rules that have been provisionally or finally adopted.
Written Submissions
Interested persons are invited to submit written statements
concerning this phase of the Commission's investigation. Written
statements should be submitted as quickly as possible, and follow-up
statements are permitted; but all statements must be received at the
Commission by the close of business on February 15, 1996, in order to
be considered in the drafting of the final U.S. proposal to the TCRO.
Information supplied to the Customs Service in statements filed
pursuant to notices of that agency has been given to us and need not be
separately provided to the Commission. Again, the Commission notes that
it is particularly interested in receiving input from the private
sector on the effects of the various proposed rules and definitions on
U.S. exports. Commercial or financial information which a submitter
desires the Commission to treat as confidential must be submitted on
separate sheets of paper, each marked ``Confidential Business
Information'' at the top. All submissions requesting confidential
treatment must conform with the requirements of section 201.6 of the
Commission's Rules of Practice and Procedure (19 CFR 201.6). All
written submissions, except for confidential business information, will
be available for inspection by interested persons. All submissions
should be addressed to the Office of the Secretary, United States
International Trade Commission, 500 E Street SW., Washington, DC 20436.
Issued: February 1, 1996.
By order of the Commission.
Donna Koehnke,
Secretary.
[FR Doc. 96-2536 Filed 2-5-96; 8:45 am]
BILLING CODE 7020-02-P
