Articles conditionally free, subject to a reduced rate, etc.: Andean Trade Preference Act; duty preference provisions; implementation,
[Federal Register: September 25, 1998 (Volume 63, Number 186)]
[Rules and Regulations]
[Page 51291-51296]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25se98-10]
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under the terms of the proclamation, the proclaimed duty treatment was effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after July 22, 1992.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
Andean trade preference, Customs duties and inspection, Entry procedures, Imports.
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.
-
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.
-
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 filedby 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
-
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.
-
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. 98-25722Filed9-24-98; 8:45 am]
BILLING CODE 4820-02-P
