[Federal Register Volume 64, Number 148 (Tuesday, August 3, 1999)]
[Rules and Regulations]
[Pages 42031-42032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19807]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 24
[TD 99-61]
RIN 1515-AC47
Exemption of Originating Mexican Goods From Certain Customs User
Fees
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Final rule.
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SUMMARY: This document amends the Customs Regulations to reflect that
goods imported from Mexico that qualify as originating goods under the
North American Free Trade Agreement (NAFTA) Implementation Act (the
Act) and qualify as goods of Mexico for marking under the NAFTA Marking
Rules will no longer be subject to the merchandise processing fees
assessed under 19 U.S.C. 58c(a)(9) and (10). This amendment results
from a provision of Title II of the Act, which eliminates application
of the fees for originating Mexican goods after June 29, 1999.
EFFECTIVE DATE: August 3, 1999.
FOR FURTHER INFORMATION CONTACT: Howard Duchan, Office of Field
Operations (202-927-0639).
SUPPLEMENTARY INFORMATION:
Background
Section 13031 of the Consolidated Omnibus Budget Reconciliation Act
of 1985, as amended (codified at 19 U.S.C. 58c and referred to in this
document as the COBRA provision), provides for the collection of
various fees for providing Customs services in connection with the
arrival of vessels, vehicles, railroad cars, aircraft, passengers and
dutiable mail, in connection with the entry or release of merchandise,
and in connection with Customs broker permits. The fees pertaining to
the entry or release of merchandise are set forth in subsections (a)(9)
and (10) of the COBRA provision (19 U.S.C. 58c(a)(9) and (10)) and
include an ad valorem fee for each formal entry or release (subject to
specific maximum and minimum limits), a surcharge for each manual entry
or release, and specific fees for three types of informal entry or
release.
Title II of the North American Free Trade Agreement (NAFTA)
Implementation Act (the Act), Pub. L. 103-182, 107 Stat. 2057 (December
8, 1993), contains provisions relating to the administration of certain
Customs laws. In section 204 of Title II, paragraph (10) of section
13031(b) of the COBRA (19 U.S.C. 58c(b)(10)) was amended to provide, in
pertinent part, that for goods qualifying under the rules of origin set
out in section 202 of the Act (19 U.S.C. 3332 and General Note 12,
Harmonized Tariff Schedule of the United States (HTSUS) (pertaining to
rules of origin)), the fees under subsection (a)(9) or (10) may not be
increased after December 31, 1993, and may not be charged after June
29, 1999, with respect to goods that qualify to be marked as goods of
Mexico pursuant to Annex 311 of the Act, for such time as Mexico is a
NAFTA country (see 19 U.S.C. 58c(b)(10)(B)(ii)).
Regulations implementing the COBRA provision regarding merchandise
processing fees are contained in Sec. 24.23 of the Customs Regulations
(19 CFR 24.23). Section 24.23(c)(3) pertains to an exemption from the
merchandise processing fees (provided for under paragraphs (b)(1) and
(b)(2)(i) of Sec. 24.23) for goods originating in Canada within the
meaning of either General Note 9 or General Note 12 of the HTSUS, where
such goods qualify to be marked as goods of Canada pursuant to Annex
311 of the Act.
Customs, in this document, amends Sec. 24.23(c)(3) to: (1) Add to
the merchandise subject to the exemption goods originating in Mexico
within the meaning of General Note 12, HTSUS, where such goods qualify
to be marked as goods of Mexico pursuant to Annex 311 of the Act; (2)
add language specifying that the exemption applies to such Mexican
goods entered or released after June 29, 1999; and (3) remove the
reference to General Note 9, HTSUS. Regarding the effective date, this
exemption will apply to qualifying Mexican goods ``entered or
released'' after June 29, 1999, within the meaning of that term as
defined in Sec. 24.23(a)(2) and 19 U.S.C. 58c(b)(8)(E). Regarding
removal of the reference to General Note 9, HTSUS, this General Note
pertained to the Canadian Free Trade Agreement which is suspended.
Consequently, reference to it is no longer relevant for purposes of the
section.
Inapplicability of Public Notice and Comment and Delayed Effective
Date Requirements
Pursuant to the provisions of 5 U.S.C. 553(b)(B), Customs has
determined that prior public notice and comment procedures on this
regulation are unnecessary. The regulatory change conforms the Customs
Regulations to the terms of a statutory provision that is already in
effect. In addition, the regulatory change benefits the public by
providing specific information regarding the right to an exemption from
the payment of certain import fees. Pursuant to the provisions of 5
U.S.C. 553(a)(1), public notice and comment is also inapplicable to
this final regulation because it is within the foreign affairs function
of the United States. For the same reasons, pursuant to the provisions
of 5 U.S.C. 553(d)(1) and (3), Customs finds that there is good cause
for dispensing with a delayed effective date.
Executive Order 12866
This document does not meet the criteria for a ``significant
regulatory action'' as specified in E.O. 12866.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required for this rule,
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
do not apply.
Drafting Information
The principal author of this document was Bill Conrad, Office of
Regulations and Rulings, U.S. Customs Service. However, personnel from
other offices participated in its development.
List of Subjects in 19 CFR Part 24
Accounting, Claims, Customs duties and inspection, Taxes, User
fees, Wages.
Amendment to the Regulations
For the reasons stated in the preamble, part 24 of the Customs
Regulations (19 CFR Part 24) is amended as set forth below.
PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE
1. The authority citation for part 24 continues to read in part,
and a new authority citation for Sec. 24.23 is added to read, as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General
Note 20, Harmonized Tariff Schedule of the United States), 1450,
1624; 31 U.S.C. 9701.
* * * * *
Section 24.23 also issued under 19 U.S.C. 3332;
* * * * *
2. Section 24.23(c)(3) is revised to read as follows:
Sec. 24.23 Fees for processing merchandise.
* * * * *
(c) Exemptions and limitations. * * *
[[Page 42032]]
(3) The ad valorem, surcharge, and specific fees provided for under
paragraphs (b)(1) and (b)(2)(i) of this section shall not apply to
goods originating in Canada or Mexico within the meaning of General
Note 12, HTSUS (see also 19 U.S.C. 3332), where such goods qualify to
be marked, respectively, as goods of Canada or Mexico pursuant to Annex
311 of the North American Free Trade Agreement and without regard to
whether the goods are marked. For qualifying goods originating in
Mexico, the exemption applies to goods entered or released (as defined
in this section) after June 29, 1999. Where originating goods as
described above are entered or released with other goods that are not
originating goods, the ad valorem, surcharge, and specific fees shall
apply only to those goods which are not originating goods.
* * * * *
Approved: June 14, 1999.
Raymond W. Kelly,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 99-19807 Filed 8-2-99; 8:45 am]
BILLING CODE 4820-02-U
