[Federal Register Volume 59, Number 71 (Wednesday, April 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8808]
[[Page Unknown]]
[Federal Register: April 13, 1994]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 10
[T.D. 94-40]
RIN 1515-AB45
Duty-Free Treatment To Be Accorded the Reimportation of Certain
Articles Originally Imported Duty Free
AGENCY: Customs Service, Treasury.
ACTION: Final rule.
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SUMMARY: This document amends the Customs Regulations to implement a
provision of the Trade and Tariff Act of 1984 that extends duty-free
entry to the reimportation of certain articles originally imported duty
free.
EFFECTIVE DATE: April 13, 1994.
FOR FURTHER INFORMATION CONTACT: Burton Schlissel, Special
Classification Branch, Office of Regulations and Rulings, (202) 482-
6980.
SUPPLEMENTARY INFORMATION:
Background
For many years U.S. law, specifically, subheading 9801.00.20 of the
Harmonized Tariff Schedule of the United States (HTSUS) and its
predecessor tariff provision, item 801.00 of the Tariff Schedules of
the United States (TSUS), has not imposed a tariff on articles
reimported into the United States if, after exportation, they were not
advanced in value or improved in condition by any process of
manufacture or other means while abroad. This provision, in effect,
sought to avoid double taxation/duty of such articles.
Subsequent to the promulgation of item 801.00, TSUS, Congress
enacted two duty preference schemes--the Caribbean Basin Initiative or
CBI (enacted as the Caribbean Basin Economic Recovery Act (CBERA), 19
U.S.C. 2701-2706) and the Generalized System of Preferences or GSP (19
U.S.C. 2461-2466)--that also provide duty-free treatment for certain
imports from designated beneficiary developing countries (BDCs). Item
801.00, TSUS, however, was drafted in language that precluded its
application to articles that were entered duty free in the first
instance. Thus, item 801.00, TSUS, operates to frustrate the purpose of
those preference programs of encouraging development through trade.
The Trade and Tariff Act of 1984 (the Act), 19 U.S.C. 1654 note,
Public Law 98-573, 98 Stat. 2948, approved October 30, 1984, and
effective as provided, was enacted to change the tariff treatment
accorded certain articles and for other purposes. Section 118 of the
Act, entitled ``Reimportation of certain articles originally imported
duty free'' and effective November 14, 1984, sought to correct the
unanticipated discriminatory effects of item 801.00, TSUS, on eligible
products from BDCs by amending that provision to extend duty-free
treatment to goods which were previously entered free of duty pursuant
to the CBI and GSP preference programs.
Section 10.108 of the Customs Regulations (19 CFR 10.108) pertains
to the entry of reimported articles exported under lease, but has not
been amended to reflect the provisions of section 118 of the Act.
Accordingly, Sec. 10.108 is amended to enable articles initially
entered duty free under the CBI and GSP programs to be exported and
reimported duty free, provided the other requirements of subheading
9801.00.20 are complied with.
Inapplicability of Public Notice and Delayed Effective Date
Requirements, the Regulatory Flexibility Act, and Executive Order 12866
Because this amendment merely reflects a statutory requirement that
confers a benefit upon the public, pursuant to 5 U.S.C. 553(b)(B),
notice and public procedure thereon are not required. Further, for the
same reasons, good cause exists for dispensing with a delayed effective
date under 5 U.S.C. 553(d) (1) and (3). 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 is not a significant regulatory
action as specified in E.O. 12866.
Drafting Information
The principal author of this document was Gregory R. Vilders,
Regulations Branch.
List of Subjects in 19 CFR Part 10
Customs duties and inspection, Exports, Foreign relations, Imports,
Preference programs, Reporting and recordkeeping requirements, Trade
agreements (Caribbean Basin Initiative, Generalized System of
Preferences).
Amendment to the Regulations
To implement the provisions of section 118 of the Trade and Tariff
Act of 1984, 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 continues to read as
follows:
Authority: 19 U.S.C. 66, 1202, 1481, 1484, 1498, 1508, 1623,
1624;
* * * * *
2. Section 10.108 is revised to read as follows:
Sec. 10.108 Entry of reimported articles exported under lease.
Free entry shall be accorded under subheading 9801.00.20,
Harmonized Tariff Schedule of the United States (HTSUS), whenever it is
established to the satisfaction of the district director that the
article for which free entry is claimed was duty paid on a previous
importation or was previously entered free of duty pursuant to the
Caribbean Basin Economic Recovery Act or Title V of the Trade Act of
1974, is being reimported without having been advanced in value or
improved in condition by any process of manufacture or other means, was
exported from the United States under a lease or similar use agreement,
and is being reimported by or for the account of the person who
imported it into, and exported it from, the United States.
Approved: March 29, 1994.
George J. Weise,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-8808 Filed 4-12-94; 8:45 am]
BILLING CODE 4820-02-P
