[Federal Register Volume 71, Number 151 (Monday, August 7, 2006)]
[Rules and Regulations]
[Pages 44564-44584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-6741]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 10, 163 and 178

[CBP Dec. 06-21]
RIN 1505-AB37


Implementation of the Andean Trade Promotion and Drug Eradication 
Act

AGENCY: Customs and Border Protection, Department of Homeland Security; 
Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule, with some changes, 
interim amendments to the Customs and Border Protection (CBP) 
Regulations which were published in the Federal Register on March 25, 
2003, as T.D. 03-16, to implement the trade benefit provisions for 
Andean countries contained in Title XXXI of the Trade Act of 2002. The 
trade benefits under Title XXXI, also referred to as the Andean Trade 
Promotion and Drug Eradication Act (the ATPDEA), apply to Andean 
countries specifically designated by the President for ATPDEA purposes. 
The ATPDEA trade benefits involve the entry of specific apparel and 
other textile articles free of duty and free of any quantitative 
restrictions, limitations, or consultation levels; the extension of 
duty-free treatment to specified non-textile articles normally excluded 
from duty-free treatment under the Andean Trade Preference Act (ATPA) 
program if the President finds those articles to be not import-
sensitive in the context of the ATPDEA; and the entry of certain 
imports of tuna free of duty and free of any quantitative restrictions. 
The regulatory amendments adopted as a final rule in this document 
reflect and clarify the statutory standards for the trade benefits 
under the ATPDEA and also include specific documentary, procedural and 
other related requirements that must be met in order to obtain those 
benefits.

DATES: This final rule is effective on September 6, 2006.

FOR FURTHER INFORMATION CONTACT: Operational issues regarding textiles: 
Robert Abels, Office of Field Operations (202-344-1959).
    Other operational issues: Lori Whitehurst, Office of Field 
Operations (202-344-2722). Legal issues: Cynthia Reese, Office of 
Regulations and Rulings (202-572-8812).

SUPPLEMENTARY INFORMATION:

Background

Andean Trade Promotion and Drug Eradication Act

    On August 6, 2002, the President signed into law the Trade Act of 
2002 (the ``Act''), Public Law 107-210, 116 Stat. 933. Title XXXI of 
the Act concerns trade benefits for Andean countries, is referred to in 
the Act as the ``Andean Trade Promotion and Drug Eradication Act'' (the 
``ATPDEA''), and consists of sections 3101 through 3108. This document 
specifically concerns the trade benefit provisions of section 3103 of 
the Act which is headed ``articles eligible for preferential 
treatment.''
    Subsection (a) of section 3103 of the Act amends section 204 of the 
Andean Trade Preference Act (the ATPA, codified at 19 U.S.C. 3201-
3206). The ATPA is a duty preference program that applies to exports 
from those Andean region countries that have been designated by the 
President as program beneficiaries. The origin and related rules for 
eligibility for duty-free treatment under the ATPA are similar to those 
under the older Caribbean Basin Economic Recovery Act (the CBERA, also 
referred to as the Caribbean Basin Initiative, or CBI statute, codified 
at 19 U.S.C. 2701-2707). As in the case of the CBI, all articles are 
eligible for duty-free treatment under the ATPA (that is, they do not 
have to be specially designated as eligible by the President) except 
those articles that are specifically excluded under the statute.
    The changes to section 204 of the ATPA made by subsection (a) of 
section 3103 of the Act involve the following: (1) The removal of 
section 204(c) which provided for the application of reduced duty rates 
(rather than duty-free treatment) for certain handbags, luggage, flat 
goods, work gloves, and leather wearing apparel, with a consequential 
redesignation of subsections (d) through (g) as (c) through (f), 
respectively; and (2) a revision of section 204(b). Prior to the 
amendment effected by subsection (a) of section 3103 of the Act, 
section 204(b) of the ATPA was headed ``exceptions to duty-free 
treatment'' and consisted only of a list of eight specific products or 
groups of products excluded from ATPA duty-free treatment.
    As a result of the amendment made by subsection (a) of section 3103 
of the Act, section 204(b) of the ATPA now is headed ``exceptions and 
special rules'' and consists of six principal paragraphs. These six 
paragraphs are discussed below.
Paragraphs (1) and (2): Articles That Are Not Import-Sensitive and 
Excluded Articles
    Paragraph (1) of amended section 204(b) is headed ``certain 
articles that are not import-sensitive'' and provides that the 
President may proclaim duty-free treatment under the ATPA for any 
article described in subparagraph (A), (B), (C), or (D) that is the 
growth, product, or manufacture of an ATPDEA beneficiary country, that 
is imported directly into the customs territory of the United States 
from an ATPDEA beneficiary country, and that meets the requirements of 
section 204, if the President determines that the article is not 
import-sensitive in the context of imports from ATPDEA beneficiary 
countries. Subparagraphs (A), (B), (C), and (D) cover, respectively:
    1. Footwear not designated at the time of the effective date of the 
ATPA (that is, December 4, 1991) as eligible articles for the purpose 
of the Generalized System of Preferences (the GSP, Title V of the Trade 
Act of 1974, codified at 19 U.S.C. 2461-2467);
    2. Petroleum, or any product derived from petroleum, provided for 
in headings 2709 and 2710 of the Harmonized Tariff Schedule of the 
United States (HTSUS);
    3. Watches and watch parts (including cases, bracelets, and 
straps), of whatever type including, but not limited to, mechanical, 
quartz digital or quartz analog, if those 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; and
    4. 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 GSP.
    Paragraph (2) of amended section 204(b) is headed ``exclusions'' 
and provides that, subject to paragraph (3), duty-free treatment under 
the ATPA may not be extended to the following:
    1. Textile and apparel articles which were not eligible articles 
for purposes of the ATPA on January 1, 1994, as the ATPA was in effect 
on that date;
    2. Rum and tafia classified in subheading 2208.40 of the HTSUS;
    3. Sugars, syrups, and sugar-containing products subject to over-
quota duty rates under applicable tariff-rate quotas; and
    4. Tuna prepared or preserved in any manner in airtight containers, 
except as provided in paragraph (4).

[[Page 44565]]

    The effect of paragraphs (1) and (2) is to divide the former 
section 204(b) list of eight types of products excluded from ATPA duty-
free treatment into two groups of four each. The four types of products 
covered by paragraph (1) would no longer be excluded from ATPA duty-
free treatment but rather would be eligible for that treatment, 
provided that the President makes the appropriate negative import 
sensitivity determination. For these products (which include the 
handbags, luggage, flat goods, work gloves, and leather wearing apparel 
to which reduced duty rates previously applied under removed section 
204(c)), the country of origin and value-content and related 
requirements under section 204(a) of the ATPA and the regulations 
thereunder would apply. The four types of products covered by paragraph 
(2) would remain as exclusions from duty-free treatment except as 
otherwise provided in paragraph (3) in the case of certain apparel and 
textile articles and paragraph (4) in the case of certain tuna 
products, and the exclusion in the case of sugar and sugar products has 
been reworded to refer to tariff-rate quota applicability rather than 
HTSUS classification. Paragraphs (3) through (6) of amended section 
204(b), as discussed below, are entirely new provisions.
Paragraph (3): Preferential Treatment of Textile Articles
    Paragraph (3) of amended section 204(b) is headed ``apparel 
articles and certain textile articles.'' Paragraph (3)(A) provides that 
apparel articles that are imported directly into the customs territory 
of the United States from an ATPDEA beneficiary country shall enter the 
United States free of duty and free of any quantitative restrictions, 
limitations, or consultation levels, but only if those articles are 
described in subparagraph (B), which states that the apparel articles 
referred to in subparagraph (A) are the following:
    1. Apparel articles sewn or otherwise assembled in one or more 
ATPDEA beneficiary countries, or the United States, or both, 
exclusively from any one or any combination of the following [clause 
(i)]:
    a. Fabrics or fabric components wholly formed, or components knit-
to-shape, in the United States, from yarns wholly formed in the United 
States or one or more ATPDEA beneficiary countries (including fabrics 
not formed from yarns, if those fabrics are classifiable under heading 
5602 or 5603 of the HTSUS and are formed in the United States). Apparel 
articles shall qualify under this subclause only if all dyeing, 
printing, and finishing of the fabrics from which the articles are 
assembled, if the fabrics are knit fabrics, is carried out in the 
United States. Apparel articles shall qualify under this subclause only 
if all dyeing, printing, and finishing of the fabrics from which the 
articles are assembled, if the fabrics are woven fabrics, is carried 
out in the United States [subclause (I)];
    b. Fabrics or fabric components formed or components knit-to-shape, 
in one or more ATPDEA beneficiary countries, from yarns wholly formed 
in one or more ATPDEA beneficiary countries, if those fabrics 
(including fabrics not formed from yarns, if those fabrics are 
classifiable under heading 5602 or 5603 of the HTSUS and are formed in 
one or more ATPDEA beneficiary countries) or components are in chief 
value of llama, alpaca, or vicu[ntilde]a [subclause (II)];
    c. Fabrics or yarns, to the extent that apparel articles of those 
fabrics or yarns would be eligible for preferential treatment, without 
regard to the source of the fabrics or yarns, under Annex 401 of the 
North American Free Trade Agreement (NAFTA) [subclause (III)]; and
    d. Fabrics or yarns, to the extent that the President has 
determined that the fabrics or yarns cannot be supplied by the domestic 
industry in commercial quantities in a timely manner and has proclaimed 
the treatment provided under clause (i)(III) [clause (ii)];
    2. Apparel articles sewn or otherwise assembled in one or more 
ATPDEA beneficiary countries from fabrics or from fabric components 
formed or from components knit-to-shape in one or more ATPDEA 
beneficiary countries from yarns wholly formed in the United States or 
one or more ATPDEA beneficiary countries (including fabrics not formed 
from yarns, if those fabrics are classifiable under heading 5602 or 
5603 of the HTSUS and are formed in one or more ATPDEA beneficiary 
countries), whether or not the apparel articles are also made from any 
of the fabrics, fabric components formed, or components knit-to-shape 
described in clause (i) (unless the apparel articles are made 
exclusively from any of the fabrics, fabric components formed, or 
components knit-to-shape described in clause (i)). For these articles, 
preferential treatment starts on October 1, 2002, and extends for each 
of the four succeeding 1-year periods, subject to the application of 
annual quantitative limits expressed in square meter equivalents and 
with an equal percentage increase in the limit for each succeeding year 
[clause (iii)];
    3. A handloomed, handmade, or folklore textile or apparel article 
of an ATPDEA beneficiary country that the President and representatives 
of the ATPDEA beneficiary country concerned mutually agree upon as 
being a handloomed, handmade, or folklore good of a kind described in 
section 2.3(a), (b), or (c) or Appendix 3.1.B.11 of Annex 300-B of the 
NAFTA and that is certified as such by the competent authority of the 
beneficiary country [clause (iv)]; and
    4. Brassieres classifiable under subheading 6212.10 of the HTSUS, 
if both cut and sewn or otherwise assembled in the United States, or 
one or more ATPDEA beneficiary countries, or both, but excluding 
articles entered under clause (i), (ii), (iii), or (iv) [clause 
(v)(I)]. However, during each of four 1-year periods starting on 
October 1, 2003, the articles in question are eligible for preferential 
treatment under paragraph (3) only if the aggregate cost of fabrics 
(exclusive of all findings and trimmings) formed in the United States 
that are used in the production of all such articles of a producer or 
an entity controlling production that are entered and eligible under 
clause (v)(I) during the preceding 1-year period is at least 75 percent 
of the aggregate declared customs value of the fabric (exclusive of all 
findings and trimmings) contained in all such articles of that producer 
or entity that are entered and eligible under clause (v)(I) during the 
preceding 1-year period [clause (v)(II)]; the 75 percent standard rises 
to 85 percent for a producer or entity controlling production whose 
articles are found by Customs and Border Protection (CBP) to have not 
met the clause (v)(II) 75 percent standard in the preceding year 
[clause (v)(III)].
    In addition to the articles described above, paragraph (3)(B) 
provides for preferential treatment of the following non-apparel 
textile articles:
    1. Textile luggage assembled in an ATPDEA beneficiary country from 
fabric wholly formed and cut in the United States, from yarns wholly 
formed in the United States, that is entered under subheading 
9802.00.80 of the HTSUS [clause (vii)(I)]; and
    2. Textile luggage assembled from fabric cut in an ATPDEA 
beneficiary country from fabric wholly formed in the United States from 
yarns wholly formed in the United States [clause (vii)(II)].
    Clause (vi) under paragraph (3) sets forth special rules that apply 
for purposes of determining the eligibility of articles for 
preferential treatment under paragraph (3). These special rules are as 
follows:
    1. Clause (vi)(I) sets forth a rule regarding the treatment of 
findings and

[[Page 44566]]

trimmings. It provides that an article otherwise eligible for 
preferential treatment under paragraph (3) will not be ineligible for 
that treatment because the article contains findings or trimmings of 
foreign origin, if those findings and trimmings do not exceed 25 
percent of the cost of the components of the assembled product. This 
provision specifies the following as examples of findings and 
trimmings: sewing thread, hooks and eyes, snaps, buttons, ``bow buds,'' 
decorative lace trim, elastic strips, zippers (including zipper tapes), 
and labels.
    2. Clause (vi)(II) sets forth a rule regarding the treatment of 
specific interlinings, that is, a chest type plate, ``hymo'' piece, or 
``sleeve header,'' of woven or weft-inserted warp knit construction and 
of coarse animal hair or man-made filaments. Under this rule, an 
article otherwise eligible for preferential treatment under paragraph 
(3) will not be ineligible for that treatment because the article 
contains interlinings of foreign origin, if the value of those 
interlinings (and any findings and trimmings) does not exceed 25 
percent of the cost of the components of the assembled article. This 
provision also provides for the termination of this treatment of 
interlinings if the President makes a determination that United States 
manufacturers are producing those interlinings in the United States in 
commercial quantities.
    3. Clause (vi)(III) sets forth a de minimis rule which provides 
that an article that would otherwise be ineligible for preferential 
treatment under paragraph (3) because the article contains yarns not 
wholly formed in the United States or in one or more ATPDEA beneficiary 
countries will not be ineligible for that treatment if the total weight 
of all those yarns is not more than 7 percent of the total weight of 
the good.
    4. Finally, clause (vi)(IV) sets forth a special origin rule that 
provides that an article otherwise eligible for preferential treatment 
under clause (i) or clause (iii) will not be ineligible for that 
treatment because the article contains nylon filament yarn (other than 
elastomeric yarn) that is classifiable under subheading 5402.10.30, 
5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 
5402.41.90, 5402.51.00, or 5402.61.00 of the HTSUS from a country that 
is a party to an agreement with the United States establishing a free 
trade area, which entered into force before January 1, 1995.
Paragraph (4): Preferential Treatment of Tuna
    Paragraph (4) of amended section 204(b) concerns the preferential 
treatment of tuna. Paragraph (4)(A) provides for the entry in the 
United States, free of duty and free of any quantitative restrictions, 
of tuna that is harvested by United States vessels or ATPDEA 
beneficiary country vessels, that is prepared or preserved in any 
manner, in an ATPDEA beneficiary country, in foil or other flexible 
airtight containers weighing with their contents not more than 6.8 
kilograms each, and that is imported directly into the customs 
territory of the United States from an ATPDEA beneficiary country. 
Paragraph (4)(B)(i) has been amended by the Miscellaneous Trade and 
Technical Corrections Act of 2004 to define a ``United States vessel'' 
for purposes of paragraph (4)(A) as a vessel having a certificate of 
documentation with a fishery endorsement under chapter 121 of title 46 
of the United States Code [paragraph (4)(B)(i)(I)] or in the case of a 
vessel without a fishery endorsement, a vessel that is documented under 
the laws of the United States and for which a license has been issued 
pursuant to section 9 of the South Pacific Tuna Act of 1988 [paragraph 
(4)(B)(i)(II)]. Paragraph (4)(B)(ii) defines an ``ATPDEA vessel'' for 
purposes of paragraph (4)(A) as a vessel (1) which is registered or 
recorded in an ATPDEA beneficiary country, (2) which sails under the 
flag of an ATPDEA beneficiary country, (3) which is at least 75 percent 
owned by nationals of an ATPDEA beneficiary country or by a company 
having its principal place of business in an ATPDEA beneficiary 
country, of which the manager or managers, chairman of the board of 
directors or of the supervisory board, and the majority of the members 
of those boards are nationals of an ATPDEA beneficiary country and of 
which, in the case of a company, at least 50 percent of the capital is 
owned by an ATPDEA beneficiary country or by public bodies or nationals 
of an ATPDEA beneficiary country, (4) of which the master and officers 
are nationals of an ATPDEA beneficiary country, and (5) of which at 
least 75 percent of the crew are nationals of an ATPDEA beneficiary 
country.
Paragraph (5): Customs Procedures
    Paragraph (5) of amended section 204(b) is entitled ``Customs 
procedures'' and sets forth regulatory standards for purposes of 
preferential treatment under paragraph (1), (3), or (4). It includes 
provisions relating to import procedures, prescribes a specific factual 
determination that the President must make regarding the implementation 
of certain procedures and requirements by each ATPDEA beneficiary 
country, and sets forth the responsibility of CBP regarding the study 
of, and reporting to Congress on, cooperative and other actions taken 
by each ATPDEA beneficiary country to prevent transshipment and 
circumvention in the case of textile and apparel goods. The specific 
provisions under paragraph (5) that require regulatory treatment in 
this document are the following:
    1. Paragraph (5)(A)(i) provides that any importer that claims 
preferential treatment under paragraph (1), (3), or (4) must comply 
with customs procedures similar in all material respects to the 
requirements of Article 502(1) of the NAFTA as implemented pursuant to 
United States law, in accordance with regulations promulgated by the 
Secretary of the Treasury. The NAFTA provision referred to in paragraph 
(5)(A)(i) concerns the use of a Certificate of Origin and specifically 
requires that the importer (1) make a written declaration, based on a 
valid Certificate of Origin, that the imported good qualifies as an 
originating good, (2) have the Certificate in its possession at the 
time the declaration is made, (3) provide the Certificate to CBP on 
request, and (4) promptly make a corrected declaration and pay any 
duties owing where the importer has reason to believe that a 
Certificate on which a declaration was based contains information that 
is not correct.
    2. Paragraph (5)(B) provides that the Certificate of Origin that 
otherwise would be required pursuant to the provisions of paragraph 
(5)(A)(i) will not be required in the case of an article imported under 
paragraph (1), (3), or (4) if that Certificate of Origin would not be 
required under Article 503 of the NAFTA (as implemented pursuant to 
United States law), if the article were imported from Mexico. Article 
503 of the NAFTA sets forth, with one general exception, three specific 
circumstances in which a NAFTA country may not require a Certificate of 
Origin.
Paragraph (6): Definitions
    Paragraph (6) of amended section 204(b) sets forth a number of 
definitions that apply for purposes of section 204(b). These 
definitions include, in paragraph (6)(B), a definition of ``ATPDEA 
beneficiary country'' as any ``beneficiary country,'' as defined in 
section 203(a)(1) of the ATPA, which the President designates as an 
ATPDEA beneficiary country, taking into account the criteria contained 
in sections 203(c)

[[Page 44567]]

and (d) and other appropriate criteria, including those specified under 
new paragraph (6)(B) of amended section 204(b).
    On October 31, 2002, the President signed Proclamation 7616 
(published in the Federal Register at 67 FR 67283 on November 5, 2002) 
to implement the new trade benefit provisions of section 3103 of the 
Act. The Annex to that Proclamation set forth a number of modifications 
to the HTSUS to accommodate the ATPDEA program, and those HTSUS changes 
were also the subject of a technical corrections document prepared by 
the Office of the United States Trade Representative and published in 
the Federal Register (67 FR 79954) on December 31, 2002.

Interim Regulatory Amendments in T.D. 03-16

    On March 25, 2003, CBP published in the Federal Register (68 FR 
14478) as T.D. 03-16 (corrected at 68 FR 67338 on December 1, 2003), an 
interim rule document setting forth amendments to the CBP Regulations 
that implement the trade benefit provisions for Andean countries. The 
regulatory changes in T.D. 03-16 implemented the new trade benefit 
provisions and conformed the ATPA implementing regulations to those 
statutory changes and involved, among other things, the following: (1) 
The addition of Sec. Sec.  10.241 through 10.248 to implement those 
apparel and other textile article preferential treatment provisions 
within paragraphs (3), (5) and (6) of amended section 204(b) of the 
ATPA statute that relate to U.S. import procedures; (2) the addition of 
Sec. Sec.  10.251 through 10.257 to implement those non-textile 
preferential treatment provisions within paragraphs (1), (4), (5) and 
(6) of amended section 204(b) of the ATPA statute that relate to U.S. 
import procedures; (3) the removal of the reference to Sec.  10.208 in 
the introductory text of Sec.  10.202; (4) the revision of Sec.  10.201 
to reflect the removal of that reduced-duty provision and to refer to 
Sec. Sec.  10.241-10.248 and 10.251-10.257; (5) the amendment of 
paragraph (b) of Sec.  10.202 to recast the list of articles excluded 
from the ATPA to reflect the terms of paragraph (2) of amended section 
204(b); and (6) the amendment of Part 163 of the CBP Regulations (19 
CFR Part 163) by adding to the list of entry records in the Appendix 
(the interim ``(a)(1)(A) list'') references to the ATPDEA Textile 
Certificate of Origin prescribed under Sec.  10.246, the ATPDEA 
Declaration of Compliance for brassieres prescribed under Sec.  10.248, 
and the ATPDEA Certificate of Origin for tuna and other non-textile 
articles prescribed under Sec.  10.256. For a complete section-by-
section discussion of each regulatory change, see T.D. 03-16. Please 
note that on December 1, 2003, two correction documents pertaining to 
T.D. 03-16 were published in the Federal Register (68 FR 67338).
    Although the interim regulatory amendments were promulgated without 
prior public notice and comment procedures and took effect on March 25, 
2003, T.D. 03-16 nevertheless provided for the submission of public 
comments which would be considered before adoption of the interim 
regulations as a final rule. The prescribed public comment period 
closed on May 27, 2003. A discussion of the comments received by CBP is 
set forth below.

Discussion of Comments

    A total of 6 commenters responded to the solicitation of public 
comments in the March 25, 2003, interim rule document referred to 
above. All of the comments received involved the regulatory provisions 
for the preferential treatment of apparel and other textile articles.

Finishing Processes

Comment
    One commenter agrees with the decision to have a single provision 
in the regulations, Sec.  10.243(b), address dyeing and finishing 
requirements contained in the ATPDEA. Further, the commenter agrees 
that ``the restrictions (requiring the operations be performed in the 
United States) only apply to the dyeing, printing, and finishing of 
knit or woven U.S. fabrics, or the U.S. fabric components formed from 
those fabrics, of garments described only in Sec.  10.243(a)(1) or 
(a)(2).'' Based on the language in the provision, the commenter also 
believes that U.S. knit-to-shape components are not subject to the 
dyeing, printing, and finishing restriction which is consistent with 
CBP's position that knit-to-shape components are not fabrics.
    The commenter disagrees, however, with CBP's conclusion that U.S. 
knit or woven fabrics or fabric components made from such U.S. fabrics 
that are used in apparel provided for in Sec.  10.243(a)(7) are also 
subject to the requirement that the knit or woven fabric, or components 
made from such fabric be dyed, printed or finished in the United 
States. The commenter believes ``that such U.S. fabrics or components, 
used in conjunction with (a)(7) DO NOT face a dyeing, printing and 
finishing restriction.'' The commenter believes CBP has misread the 
statute and reached an erroneous conclusion.
    In making the argument that CBP has misread the statute, the 
commenter refers to a ``hybrid provision'' in the statute, cites to the 
language in Sec.  204(b)(3)(B)(iii)(I), and states the provision 
``permits the inclusion of `fabrics, fabric components formed, or 
components knit to shape described in clause (i).' '' The commenter 
maintains that the requirement in subclause (i)(I) that U.S. knit or 
woven fabric and fabric components from such fabric be dyed, printed, 
or finished in the United States applies only with regard to apparel 
articles qualifying under subclause (i)(I). The commenter argues that 
the dyeing, printing, and finishing requirement does not apply to U.S. 
knit and woven fabric or fabric components when these inputs are used 
in apparel which qualifies for preferential treatment under another 
provision of the ATPDEA, namely apparel described in Sec.  
10.243(a)(7).
    The commenter points to ``common commercial practice'' to argue 
that this dyeing, printing, and finishing requirement would not apply 
to U.S. inputs when used in conjunction with regional inputs as ``the 
dyeing, printing, and finishing operations all need to occur in the 
same location to ensure consistency for all the components of the 
garment.'' The commenter argues that CBP's interpretation which applies 
the dyeing, printing and finishing requirement to knit and woven U.S. 
fabric and fabric components will result in apparel companies choosing 
not to buy U.S. inputs for hybrid U.S./regional garments.
CBP's Response
    The commenter is correct that CBP does not view the dyeing, 
printing, and finishing requirement to extend to knit-to-shape 
components as such components are not considered ``fabric'' but are 
components created directly from yarn. CBP disagrees with the 
commenter's reading of the statute to limit the dyeing, printing, and 
finishing requirement contained in subclause (i)(I) to apparel articles 
qualifying for preferential treatment under that subclause only. CBP 
views the dyeing, printing, and finishing requirement contained in 
subclause (i)(I) as part of the description of the fabric, and fabric 
components formed from such fabric, provided for under that subclause. 
Consequently, the language in subclause (iii)(I) which allows for the 
use of fabrics, fabric components formed, or components knit-to-shape 
described in clause (i) is interpreted by CBP to include the dyeing, 
printing, and finishing requirement contained in subclause (i)(I) with 
regard to fabrics or fabric components wholly formed from

[[Page 44568]]

fabric which are described in that subclause. In the Conference Report 
to the Trade Act of 2002, Report No. 107-624, at page 251, it is 
clearly stated with regard to the dyeing, finishing and printing 
requirement: ``Apparel made of U.S. knit or woven fabric assembled in 
an Andean beneficiary country qualifies for benefits only if the U.S. 
knit or woven fabric is dyed and finished in the United States.'' CBP's 
interpretation of the dyeing, printing and finishing requirement as 
part of the descriptive of the ``inputs'' provided for in subclause 
(i)(I) carries out the intent of Congress to ensure that U.S.-formed 
fabric and fabric components are finished in the United States. To 
interpret the provision, as suggested by the commenter (to apply the 
requirement only in the case when all the fabric and fabric components 
in an apparel article are wholly formed in the United States of yarns 
wholly formed in the United States or one or more ATPDEA beneficiary 
countries) would mean that the introduction of any other fabric or 
fabric component within the apparel article (provided the fabric or 
fabric component is described within one of the other provisions of the 
ATPDEA) would negate the requirement regarding U.S. finishing so 
specifically stated by Congress in this Act and obstruct their intent 
as stated in the Conference Report previously cited.
    As to the commenter's argument that ``common commercial practice'' 
dictates that the requirement to dye, print, and finish U.S.-formed 
fabric (and fabric components from such fabric) in the United States 
does not apply when U.S. ``inputs'' are combined with regional fabrics, 
we disagree. We agree that normally fabric for apparel production is 
dyed by lot and a manufacturer wants to use fabric from the same dye 
lot in the production of an apparel article, assuming the apparel 
article is constructed of one fabric. However, if fabrics from the 
United States and the region are being combined in the production of 
apparel, it is likely the fabrics will not be exactly the same. Dyes, 
inks and finishes will affect different fabrics of different 
constructions and different fiber compositions differently. Therefore, 
CBP rejects the proposition that ``common commercial practice'' 
dictates an interpretation of the dyeing, printing, and finishing 
requirement for U.S.-formed fabric which is contrary to the stated 
intent of Congress.
Comment
    A commenter noted that the interim regulations do not provide a 
definition of the terms ``dyeing,'' ``printing,'' and ``finishing.'' 
The commenter would like CBP to publish definitions of these terms so 
as to clarify the requirements with regard to these processes.
CBP's Response
    As technological advances may occur with regard to dyeing, printing 
and finishing processes, CBP will not attempt to provide a finite 
definition of these terms because the definition may not encompass such 
unforeseen advances. It is prudent to rely on the common and commercial 
meanings of these terms which may change over time with scientific and 
technological advances. Questions of whether a particular process 
constitutes a dyeing, printing, or finishing process will continue to 
be addressed on a case-by-case basis.

Interlinings

Comment
    There is no clear translation into Spanish of the terms ``chest 
type plate,'' ``hymo piece,'' and ``sleeve header.'' Assistance in this 
regard is requested. In addition, the same commenter requests that CBP 
not object to the use of other interlinings originating in third 
countries since the type of products exported by Peru use a minimum 
amount of such interlinings. Finally, the commenter asks if the use of 
interlinings originating in a country other than the United States or a 
beneficiary country and that is not one of the three types mentioned 
above, will preclude preferential treatment under the ATPDEA even 
though such interlinings, along with other accessories, represent less 
than 25% of the cost of the garment.
CBP's Response
    CBP does not have the authority to allow the use of foreign (third 
country) interlinings beyond the three named and described in the 
ATPDEA. The use of other foreign interlinings in apparel articles, 
regardless of the amount, will preclude preferential treatment under 
the ATPDEA.
    With regard to the lack of a clear translation into Spanish for the 
terms ``chest type plate,'' ``hymo piece,'' and ``sleeve header,'' CBP 
is able to offer some descriptive information about these interlinings, 
which are used in the production of suit and suit-type jackets, which 
may be helpful when translated into Spanish.
    A ``sleeve header,'' which may also be referred to as a 
``sleevehead interlining,'' is an interlining piece sewn between the 
shell fabric and lining fabric along the outside shoulder seam where 
the sleeve joins the body of the garment. This interlining provides 
fullness along the seam and enhances the appearance of a jacket at the 
point where the sleeve meets the shoulder. See Headquarters Ruling 
Letter (HQ) 559552, dated February 14, 1996, and HQ 966510, dated 
August 27, 2003.
    A ``chest type plate'' may also be referred to as a ``chest 
piece.'' This interlining piece is placed in the chest area of a jacket 
for strength and shape. It serves to stabilize the jacket, enhancing 
its appearance. See HQ 966510; http://www.actk.nl/; and http://www.resil.com/dictionary.
    The term ``hymo'' is defined as ``Fabric of mohair and linen, used 
in tailoring to reinforce body of a coat.'' See A Dictionary of Costume 
and Fashion, Historic and Modern, by Mary Brooks Picken, at 181 (Dover 
Publications, Inc., 1985). Similarly, from Fairchild's Dictionary of 
Textiles, edited by Dr. Isabel B. Wingate, at 289, ``hymo'' is defined 
as ``A fabric made of mohair and linen. Used in tailoring to reinforce 
the body section of a coat.'' (Fairchild Publications, Inc., 1970). 
Based on these definitions, a ``hymo piece'' may be considered a type 
of ``chest piece'' or ``chest type plate.'' The distinction between 
these two types of interlinings is that the ``hymo piece'' is 
constructed specifically of fabric of mohair and linen.

Short Supply

Comment
    With regard to the designation of additional short supply fabrics 
and yarns, the commenter asks what criteria will be used by the 
President to determine that a fabric or yarn is scarce in the U.S. 
market, and when such determinations will be published in the Federal 
Register.
CBP's Response
    Congress authorized the President to proclaim additional fabrics 
and yarns as eligible for preferential treatment under clause (i)(III) 
of section 3103(b)(3)(B) of the ATPDEA. This authority, provided in 
section 3103(b)(3)(B)(ii), has been delegated to the Committee for the 
Implementation of Textile Agreements (CITA). See ``Notice of 
Redelegation of Authority and Further Assignment of Functions'' which 
was published on December 2, 2002 (67 FR 71606). Questions regarding 
designations of fabrics or yarns as commercially unavailable, such as 
the criteria for making such determinations and the procedures 
involved, should be directed to the Chairman, Committee for the 
Implementation of Textile Agreements, Room H3100, U.S. Department of

[[Page 44569]]

Commerce, 14th and Constitution Avenue, NW., Washington, DC 20230. 
Information on ``commercial availability'' requests under the ATPDEA 
may be found at the Web site for the Office of Textiles and Apparel, 
Department of Commerce, at http://www.otexa.ita.doc.gov.
Comment
    A commenter notes with appreciation a Textile Book Transmittal 
(TBT) publication by CBP (which is available on the CBP Web site), TBT-
03-013 ``List of Short Supply Fabrics for Trade Agreements,'' and the 
use of the term ``short supply'' by CBP; the commenter believes CBP's 
use of the term ``reflects both an accurate description of this 
provision and the way the trade views this process.'' However, the 
commenter takes issue with the language included in the TBT describing 
the general treatment for apparel produced from short supply fabrics or 
yarns designated by the Committee for the Implementation of Textile 
Agreements (CITA). The language at issue indicates that apparel 
incorporating short supply fabrics designated by CITA must use fabrics 
wholly formed in the United States from yarns wholly formed in the 
United States for all other fabric components in the garment for which 
the short supply fabric is not used.
    The commenter cites to the language in the Conference Report for 
the Trade Act of 2002 (H. Rept 107-624) which clarifies congressional 
intent regarding the treatment of short supply inputs in apparel 
qualifying for preferential treatment under the trade program. The 
commenter refers to this report language to assert that when the short 
supply fabric determines the essential character of an apparel article, 
the remaining fabrics used in the apparel article may originate from 
anywhere; and, when the short supply fabric does not impart the 
essential character of an apparel article, it will not disqualify the 
apparel article from qualifying for preferential treatment under the 
ATPDEA. The use of the same short supply provision in the AGOA and 
CBTPA leads the commenter to conclude that designated short supply 
fabrics and yarns should be extended the same treatment, i.e., 
consideration of only the fabric or yarn that determines the essential 
character of the apparel article.
    The commenter notes that the interim regulations on the ATPDEA are 
silent on how CBP ``expects to treat garments entered claiming a short 
supply fabric or yarn designated by CITA.''
CBP's Response
    In Section 3103(b)(3)(B)(ii) of the ATPDEA, the President is 
authorized to designate additional fabrics and yarns as in ``short 
supply'' and thus allowable in the construction of apparel articles 
under the ATPDEA regardless of the origin of the fabrics or yarns. This 
authority to designate additional fabrics and yarns has been delegated 
to CITA pursuant to Executive Order No. 13277 (67 FR 70305) and the 
United States Trade Representative's Notice of Redelegation of 
Authority and Further Assignment of Functions (67 FR 71606).
    The tariff provision which implements this provision of the ATPDEA 
is subheading 9821.11.10, HTSUS, which provides for: ``Apparel articles 
sewn or otherwise assembled in one or more such countries, or the 
United States, or both, exclusively from any of the following: Fabrics 
or yarns designated by the appropriate U.S. government authority in the 
Federal Register as fabrics or yarns that cannot be supplied by the 
domestic industry in commercial quantities in a timely manner, under 
any terms as such authority may provide.''
    The interim regulations were silent on how CBP will treat apparel 
articles under Sec.  10.243(a)(1)(iv) of the regulations which pertains 
to apparel articles provided for in subheading 9821.11.10, HTSUS, 
because the authority to designate the fabrics or yarns allowed under 
this provision and the authority to designate any terms or requirements 
to be applied to the allowance of these fabrics or yarns in eligible 
apparel resides with CITA, pursuant to the language of the tariff. CBP 
will follow the language of the designation notices issued by CITA 
(which will appear in the Federal Register) in applying this provision 
to apparel articles as CITA is the designated U.S. government authority 
to make such determinations.
Comment
    A commenter objects to the exclusion of brassieres from eligibility 
for preferential treatment under Sec.  10.243(a)(1)(iii). The commenter 
claims that in the CBTPA changes contained in section 3107 of the Trade 
Act of 2002 and provisions of the ATPDEA, Congress included language 
that specifically envisions brassieres being imported under the 
respective short supply provisions in each of those two trade 
preference programs. This statutory language stands in sharp contrast 
to CBP's view that brassieres are not eligible for short supply 
treatment in those trade programs.
CBP's Response
    The commenter argues that in both CBTPA and ATPDEA legislative 
changes made by Congress, specifically listing exceptions for certain 
provisions, Congress clearly envisioned brassieres being imported under 
these respective provisions, including the short supply provisions. In 
CBP's opinion, the specific exception language added to both the ATPDEA 
in section 3103(b)(3)(B)(v)(I) and the CBTPA in section 3107(a)(5)(iv) 
does not indicate that brasseries should therefore, be eligible under 
any or all of these excepted provisions. This clarifying language 
merely states that in determining eligibility requirements under the 
cited provisions, any brassieres classified in one of the exceptions 
would not be included in determining the eligibility under section 
3103(b)(3)(B)(v)(I) and section 3107(a)(5)(iv). In fact, one of the 
exceptions listed in both section 3103(b)(3)(B)(v)(I) of the ATPDEA and 
section 3107(a)(5)(iv) of the CBTPA is a provision covering 
``Handloomed, Handmade, and Folklore Articles''. CBP is not aware of 
any brassieres that could be claimed under this provision and yet this 
is one of the exceptions listed. CBP believes that the Congress did not 
intend the listing of these exceptions to mean that brassieres would be 
classifiable in all these provisions.

Brassieres

Comment
    A commenter is concerned that Sec.  10.243(b)(2) requires 
brassieres to be produced and entered during the same year in order to 
qualify for inclusion in the calculations of a year's shipments in 
order to determine eligibility of brassieres for preferential treatment 
in the following year. The commenter points to Example 6 in the interim 
regulations as illustrating this point. The commenter strongly 
disagrees with requiring brassieres to be produced and entered in the 
same year for the purpose of determining eligibility and asserts that 
the language adopted by Congress in drafting this provision of the 
ATPDEA requires that the calculation to determine eligibility be 
performed on brassieres `` `that are entered and eligible during the 
preceding 1-year period,' regardless of when those actual brassieres 
are produced.''
CBP's Response
    The commenter has misread Example 6 in the interim regulations. A 
proper reading of the example reveals that it actually supports the 
view of the commenter that in determining the

[[Page 44570]]

brassieres to be included in calculating the aggregate value of the 
fabric formed in the United States which is present in brassieres in a 
1-year period (October 1 to September 30) for the purpose of 
determining eligibility of brassieres for preferential treatment under 
this provision of the ATPDEA in the subsequent 1-year period, one 
includes brassieres which are entered and eligible during the preceding 
1-year period and the year of production is not a determinative factor. 
In Example 6, brassieres not meeting the minimum 75 percent fabric 
standard are shipped to the United States in February. A second 
shipment of brassieres, meeting the 75 percent fabric standard and 
actually exceeding the 85 percent standard, is shipped in June. If 
these two shipments are entered in the same 1-year period year, the 
aggregate value would meet the 75 percent standard. However, the 
February shipment is entered for consumption on March 1 of the same 
calendar year; the June shipment is not entered for consumption until 
November 1 of that calendar year. Although entered for consumption in 
the same calendar year, these shipments were entered for consumption in 
different eligibility years which run from October 1 to September 30. 
Therefore, a valid declaration of compliance cannot be prepared for the 
shipment entered in March as it failed to meet the 75 percent standard; 
however, a valid declaration may be prepared for the shipment entered 
in November since it exceeded the 85 percent standard which would be 
applicable for brassieres entered in that year because of the failure 
to meet the 75 percent standard in the preceding year. The year of 
production of the brassieres is not a consideration in the example.

Scope of the Term ``Elastic Strips''

Comment
    Three commenters submitted observations concerning the scope of the 
term ``elastic strips'' in the list of examples of ``findings and 
trimmings'' set forth in Sec.  10.243(c)(1)(A). [The ATPDEA includes a 
special rule that permits the use of foreign findings and trimmings in 
producing eligible textile and apparel articles, provided the value of 
those findings and trimmings does not exceed 25% of the cost of the 
components of the assembled article.] The commenters noted that the 
term ``elastic strips'' is not defined in the interim regulations and 
therefore the regulations provide manufacturers and importers little 
guidance regarding the scope of the term. All three commenters urged 
CBP to narrowly construe the term so that it excludes most, if not all, 
narrow elastic fabrics. The commenters made the following specific 
points in support of their position:
    1. The exception for foreign findings and trimmings under the 
ATPDEA ``was necessarily intended to be of a restrictive nature, as the 
intent of the statute was to ensure that all fabric components be 
formed [in the] U.S. or ATPDEA region.''
    2. If the exception for foreign ``elastic strips'' is interpreted 
as including narrow elastic fabrics, an entire segment of the U.S. 
textile industry (the weavers and knitters of narrow elastic fabric) 
will be adversely affected as it will receive absolutely no benefit 
from the fabric origin requirements of the ATPDEA. In passing this 
statute, Congress did not intend to exclude from its benefits all U.S. 
producers of narrow elastic fabrics.
    3. In the textile industry, the word ``strip'' is used to describe 
cut (slit) pieces of flat rubber or other elastic material of a rubber-
like consistency throughout. Narrow elastic fabrics that are essential 
components are not normally considered elastic strips.
    4. CBP rulings support the view that most fabric components ``that 
serve a purpose'' are not findings. See HQ 559522 dated February 14, 
1996. In addition, CBP rulings have generally not considered fabric 
components to be trimmings.
    5. It is noted that the ATPDEA did not replicate language in the 
Caribbean Basin Trade Partnership Act (CBTPA) limiting ``elastic 
strips'' in the findings and trimmings exception to elastic strips of 
less than one-inch in width and used in the production of brassieres. 
By omitting this language in the ATPDEA, Congress intended to exclude 
elastic fabric brassiere straps from the findings and trimmings 
exception. This is consistent with the belief that Congress intended to 
exclude from the findings and trimmings exception fabric components, 
such as waistbands, leg gatherings and brassiere straps, that are 
essential to the garment and are not primarily decorative.
CBP's Response
    Section 10.243(c)(1)(A) essentially repeats the language found in 
the statute (amended section 402(b)(B)(vi)(I) of the ATPA) relating to 
the exception for findings and trimmings and the examples set forth 
therein. Therefore, CBP acknowledges that the regulation provides no 
guidance as to what is meant by ``elastic strips'' in the findings and 
trimmings rule. However, as further explained below, CBP believes that, 
generally speaking, determinations regarding the scope of that term 
should be made on a case-by-case basis through the CBP rulings process.
    CBP agrees with the assertion by one commenter that the exception 
for foreign findings and trimmings in the ATPDEA was necessarily 
intended to be of a restrictive nature. With few exceptions, the 
preferential treatment accorded to textile and apparel articles under 
the ATPDEA, like the treatment accorded to similar articles under the 
AGOA and CBTPA, is based upon the requirement that all fabric 
components be formed in the United States or the ATPDEA region. 
Therefore, CBP believes that the scope of the term ``findings and 
trimmings'' should be limited to the specific items set forth as 
examples in the statute as well as items that are closely analogous to 
the cited examples.
    In response to the argument that Congress did not intend to exclude 
an entire segment of the U.S. textile industry (producers of narrow 
elastic fabric) from benefiting from the ATPDEA, CBP notes that it 
attempts to discern Congressional intent from the specific wording in 
the statute as well as the legislative history. In regard to the use of 
the term ``elastic strips'' in the ATPDEA, the statute's legislative 
history sheds no light on how the term should be defined. However, as 
one commenter pointed out, Congress did not include language limiting 
the scope of the term ``elastic strips'' in the ``findings and 
trimmings'' rule to elastic strips that are ``each less than 1 inch in 
width and used in the production of brassieres,'' as it did in the AGOA 
and CBTPA statutes.
    One seemingly inescapable conclusion that can be drawn from the 
above omission in the ATPDEA is that Congress did not intend that the 
term ``elastic strips'' would be subject to the ``less than 1 inch in 
width'' brassiere strip limitation. Therefore, in future considerations 
of whether particular items qualify as ``elastic strips'' under the 
``findings and trimmings'' exception in the ATPDEA, CBP will not 
disqualify an item solely because it is an inch or more in width and 
used in the production of garments other than brassieres.
    However, CBP agrees with the assertion by one commenter that, by 
failing to limit the term ``elastic strips'' in the ATPDEA to certain 
narrow elastic brassiere strips, Congress intended to exclude elastic 
fabric brassiere straps from being considered findings and trimmings 
under this statute. HQ 562018 dated March 22, 2002, concerned whether 
the use of foreign-origin \1/2\ inch wide polyurethane strips

[[Page 44571]]

in the construction of brassieres would disqualify the brassieres from 
receiving preferential treatment under the CBTPA. CBP concluded 
initially that the polyurethane strips are outside the scope of the 
exception for ``elastic strips'' because the language limiting that 
exception to certain narrow elastic strips used in the production of 
brassieres related only to elastic fabric strips. CBP then determined 
in HQ 562018 that the polyurethane strip is not a ``finding or 
trimming'' inasmuch as it is not a ``supplementary element used to 
construct the garment, but, rather, is a brassiere strap, a major 
component of the brassiere.'' Because the polyurethane strip was 
neither a textile component nor a ``finding or trimming,'' CBP 
concluded that the strip's presence in the brassiere would not preclude 
the article from receiving preferential treatment under the CBTPA. 
Consistent with HQ 562018, CBP believes that brassiere straps, whether 
made of fabric or a non-textile material, do not qualify as ``findings 
or trimmings'' for purposes of the ATPDEA.
    Concerning whether the term ``elastic strips'' should be construed 
as encompassing narrow elastic fabrics or only non-textile rubber 
strips, or both, it is noted that in rulings interpreting ``elastic 
strips'' as that term appears in the AGOA and CBTPA, CBP determined 
that the term encompassed only ``narrow elastic fabric less than one 
inch in width used in the production of brassieres.'' (Emphasis added.) 
See, for example, HQs 965909 dated January 7, 2003, 562018 dated July 
10, 2001, and 966495 dated July 3, 2003. However, the basis for this 
conclusion was a statement in the legislative history of the CBTPA 
indicating that that program was to be administered in a manner 
consistent with the ``Special Access Program'' (SAP). A directive 
issued in connection with the SAP stated that ``the foreign origin 
exception for elastic strips is clarified as limited to narrow elastic 
fabric less than one inch in width used in the production of brassieres 
only.'' (Emphasis added.) As previously indicated, the term ``elastic 
strips'' in the ATPDEA ``findings and trimmings'' rule is not limited 
to strips less than 1 inch in width used in the production of 
brassieres. Moreover, there is no similar reference in the ATPDEA's 
legislative history to the SAP. As a result, CBP concludes that the 
above rulings relating to the AGOA and CBTPA are not controlling with 
respect to this issue and that ``elastic strips'' in the ATPDEA should 
not be construed as encompassing only narrow elastic fabric strips.
    By the same token, CBP cannot agree with the contention that the 
term ``elastic strips'' should be construed as encompassing only non-
textile (e.g., rubber) strips as CBP is not aware of any evidence 
indicating that Congress intended such a construction. Rather, CBP 
believes that, in determining whether certain items qualify as 
``elastic strips'' under the ATPDEA, consideration should be given to 
items consisting of elastic fabric material as well as items consisting 
of non-textile elastic material.
    CBP also does not agree with the argument that elastic fabric 
strips used in waistbands and leg gatherings are automatically excluded 
from the ``findings and trimmings'' exception under the ATPDEA. 
Previous CBP rulings on the scope of the ``findings and trimmings'' 
exception under other preference programs and provisions have defined 
``findings'' as ``sewing essentials used in textile goods'' and 
``trimmings'' as ``decoration or ornamental parts.'' Rubber tape used 
to provide secure fittings in the leg and arm openings of garments, 
such as bathing suits, underwear and sweatpants, have been held to 
qualify as ``findings'' under the CBTPA and subheading 9802.00.90, 
HTSUS. See HQs 966239 dated May 16, 2003, 966317 dated June 9, 2003, 
and 561868 dated July 10, 2001. By analogy, elastic fabric strips 
serving the same functions would also qualify as findings under the 
ATPDEA. Whether elastic fabric strip used in waistbands would also 
qualify as findings will be determined pursuant to the CBP rulings 
process.
Comment
    A commenter commends CBP for the inclusion in Sec.  10.243(b)(2) of 
language ``that clarifies that a series of post-assembly finishing 
operations will not disqualify a garment entered under specific 
provisions.''
CBP's Response
    CBP appreciates the comment.

Certificate of Origin

Comment
    A commenter believes the Certificate of Origin may be further 
simplified into one form to serve the AGOA, the CBTPA and the ATPDEA as 
the requirements for all three programs are the same. The commenter 
also requests that ``available upon request'' be permitted with regard 
to information requested on the certificate for thread, fabric and yarn 
names and addresses.
CBP's Response
    We would certainly be open to any suggestions concerning the 
simplification of the certificate of origin. However, developing one 
form to accommodate AGOA, CBTPA and ATPDEA would make the form more 
complex, especially for the exporter or producer who is required to 
complete the form and is responsible for ensuring that the information 
is accurate. A combining of the form could include groupings or 
requirements that would be in place for AGOA, e.g. knit to shape with 
50 percent by more of weight of fine wool that do not exist for CBTPA 
or ATPDEA.
    However with regard to the commenter's second point, CBP will not 
accept ``available upon request'' where information is needed on the 
name and address of the yarn, fabric and thread suppliers. The 
certificate of origin is not a document that is required for entry 
purposes. The importer must have it in their possession when making the 
claim. When CBP requests the certificate of origin all information must 
be on that form to assist CBP in confirming the accuracy of the claim. 
CBP does not want to make a second request to see what should have been 
available when a request was made to see the certificate of origin on 
the first request.
Comment
    A commenter inquired about reproduction of the Certificates of 
Origin shown in the Federal Register notice.
CBP's Response
    The Textile Certificate of Origin shown in the interim regulations 
is shown to illustrate the format in which the information should be 
presented; it is not a form. This format may be reproduced locally.

Handloomed, Hand-Made and Folklore Articles

Comment
    A commenter raises questions with regard to the provision of the 
ATPDEA which provides for handloomed, hand-made, and folklore articles. 
Specifically, the commenter wants to know how and when certification of 
such goods will be effectuated, particularly in light of the fact that 
Peru already has a system in place for the authorization of export 
invoices under the ``Administrative Agreement of Authorization and 
Certification of Textile Products'' which includes handloomed, hand-
made and folklore articles. The commenter inquires as to whether a 
separate certification is necessary when there

[[Page 44572]]

already is a certification process in place and whether textile 
articles other than garments, such as pillows, carpets, covers, and 
tablecloths will also enjoy preferential treatment.
CBP's Response
    CBP does not have the authority to answer these questions 
concerning the administration of the ``Handloomed, Handmade, and 
Folklore Articles'' provisions under the ATPDEA. These authorities and 
functions, which were granted to the President under the ATPDEA, were 
delegated in an Executive Order 13277 to USTR, including the authority 
to redelegate these authorities and functions. In a notice published in 
the Federal Register on Monday, December 2, 2002, such authorities and 
functions were assigned to the Secretary of State, the Secretary of the 
Treasury, the Secretary of Labor, the Secretary of Commerce, and the 
United States Trade Representative Office. The responsibility to 
administer this provision lies with the Committee for the 
Implementation of Textile Agreements (CITA). It is suggested that you 
contact them directly by writing to the Chairman, Committee for the 
Implementation of Textile Agreements, U.S. Department of Commerce, ITA/
TD/OTEXA, Room H-3100, 14th and Constitution Avenue, NW., Washington, 
DC 20230.

Changes to the Regulations

    While there are no changes to the interim regulations made in 
connection with the public comments, CBP in this final rule document 
has made a number of other changes to the interim regulatory texts for 
editorial and clarification purposes. These changes are as follows:
    1. In Sec.  10.242, CBP has determined that the definition of 
``foreign'' as set forth in the interim regulations could cause some 
confusion and might lead to anomalous and unintended results in certain 
circumstances. That definition (which has relevance only in the context 
of the findings and trimmings and interlinings provisions of Sec.  
10.243(c)) in the interim texts simply read ``of a country other than 
the United States or an ATPDEA beneficiary country.'' However, because 
the various textile and apparel articles to which preferential 
treatment applies are described in Sec.  10.243(a) with reference to 
specific production processes in the case of yarns, fabrics and 
components that must take place in the United States or in an ATPDEA 
beneficiary country or both, more is required than that the yarn or 
fabric or component be ``of'' (that is, have its origin in) the United 
States or an ATPDEA beneficiary country. For example, Sec.  
10.243(a)(1) refers to articles ``assembled'' in one or more ATPDEA 
beneficiary countries from ``fabric wholly formed and cut'' in the 
United States from ``yarns wholly formed'' in the United States. A 
fabric that was wholly formed in the United States but from yarns 
formed outside the United States would not meet the Sec.  10.243(a)(1) 
standard and also would not be considered ``foreign'' under the interim 
definition because it is ``of'' (that is, it has its origin in) the 
United States by virtue of its having been formed in the United States. 
Therefore, that fabric could not be present in the article under the 
findings or trimmings or interlinings rule exception; consequently, 
even if all of the other fabric in the article was wholly formed and 
cut in the United States from yarns wholly formed in the United States 
and the article was assembled in an ATPDEA beneficiary country, the 
assembled article would not qualify for preferential treatment. On the 
other hand, a fabric formed outside the United States or the ATPDEA 
region, if used as a finding or trimming or interlining within the 25 
percent limit, would not disqualify the article. Thus, under the 
interim definition of ``foreign,'' U.S. and ATPDEA beneficiary country 
textile materials could be at a disadvantage vis-a-vis materials from 
outside the United States and the ATPDEA region, contrary to the 
overall thrust of the ATPDEA program as discussed in the comment 
discussion set forth above in this document. CBP believes that the 
interim definition was appropriate in the case of non-textile findings 
and trimmings. However, in the case of textile findings and trimmings 
and interlinings the concept of ``foreign'' logically only has 
relevance in the context of an exception to the production standards 
that apply to articles eligible for preferential treatment. 
Accordingly, the definition of ``foreign'' has been replaced by a 
definition of ``foreign origin'' to address these concerns.
    2. In Sec.  10.242, CBP has added a new definition for the term 
``self start edge'' and modified the definition of ``knit-to-shape 
components'' by adding the phrase ``that is, the shape or form of the 
component as it is used in the apparel article, containing at least one 
self start edge'' after the words ``specific shape.''
    3. In Sec.  10.243(b)(1)(i), CBP has added the words ``or in one or 
more ATPDEA beneficiary countries, as described in paragraph (a)(1)(i) 
of this section'' after the phrase ``from yarns wholly formed in the 
United States''. This change is being made because of the inadvertent 
omission of this statutory language in section 3103(b)(3)(B)(i)(I) of 
the ATPDEA which limits the dyeing, printing, and finishing requirement 
to certain fabrics.
    4. With reference to the findings, trimmings and interlinings 
provisions under Sec.  10.243(c)(1)(ii), CBP has used an f.o.b. port of 
exportation basis for determining the ``cost'' of the components and 
the ``value'' of the findings and trimmings and interlinings. However, 
CBP now believes that the use of an ex-factory standard in lieu of the 
f.o.b. port of exportation standard would be more accurate because it 
eliminates transportation costs from the comparison between the 
``value'' of foreign findings and trimmings and/or foreign interlinings 
and the ``cost'' of the components of the assembled article. Therefore, 
CBP has revised Sec.  10.243(c)(1)(ii) in this final rule to 
incorporate an ex-factory standard in lieu of the f.o.b. port of 
exportation standard.
    5. With regard to who may sign the textile Certificate of Origin, 
Sec. Sec.  10.244(a), 10.244(c)(12), 10.246(b)(2), and 10.254 refer to 
the exporter (and the exporter's authorized agent in the latter two 
provisions), but none of these provisions mentions the producer in this 
specific context. CBP has determined that the producer or the 
producer's authorized agent having knowledge of the relevant facts 
should be permitted to sign the Certificate of Origin in addition to 
the exporter or the exporter's authorized agent. The producer clearly 
is in the best position to attest to the accuracy of the information 
set forth in the Certificate. Therefore, Sec. Sec.  10.244(a), 
10.244(c)(12), 10.246(b)(2), 10.254, and 10.256(b)(2) have been changed 
to provide that the Certificate of Origin must be signed by the 
exporter or producer or by the exporter's or producer's authorized 
agent having knowledge of the relevant facts. CBP notes that this 
change is consistent with changes to the implementing regulations under 
the Caribbean Basin Trade Partnership Act (CBTPA) and the African 
Growth and Opportunity Act (AGOA) relating to the textile Certificate 
of Origin and thus brings uniformity to the three programs in this 
regard.
    6. In Sec.  10.248(b)(2)(ii), Example 5 has been changed to clarify 
that elastic strips used as brassiere straps are not considered 
findings or trimmings.
    7. In Sec.  10.248(c)(3)(i), CBP has amended blocks 4-6 of the 
declaration of compliance for brassieres by adding exclusion language 
regarding findings and trimmings after each reference to fabric(s) for 
purposes of calculating whether the minimum 75 or 85 percent

[[Page 44573]]

standard was met. This change is being made because of the inadvertent 
omission of this language in the interim rule.
    8. In addition to those changes already noted above, references to 
the U.S. Customs Service within the regulatory text in Sec. Sec.  
10.244, 10.245, 10.246, 10.247 and 10.248 have been changed to CBP.
    9. In Sec.  10.252, the definition of the term ``United States 
vessel'' has been amended to reflect a change made by the Miscellaneous 
Trade and Technical Corrections Act of 2004 (MTTCA). The MTTCA added to 
the definition of a ``United States vessel'' to include the case of a 
vessel without a fishery endorsement that is documented under the laws 
of the United States and for which a license has been issued pursuant 
to section 9 of the South Pacific Tuna Act of 1988. Accordingly, in 
Sec.  10.252, the definition of the term ``United States vessel'' has 
been amended by adding the phrase ``or in the case of a vessel without 
a fishery endorsement, a vessel that is documented under the laws of 
the United States and for which a license has been issued pursuant to 
section 9 of the South Pacific Tuna Act of 1988'' at the end of the 
sentence.

Conclusion

    Based on the analysis of comments and the discussion above 
regarding CBP's further consideration of the interim rule, CBP is 
adopting as final some of the interim regulations published in T.D. 03-
16 and amending certain of those interim provisions.
    Concerning Sec. Sec.  10.241 through 10.248 (provisions concerning 
textile articles), the following sections have been amended:
    1. In Sec.  10.242, the definition of ``foreign'' has been replaced 
by a definition of ``foreign origin''; a new definition for the term 
``self start edge'' has been added; and the definition of ``knit-to-
shape components'' has been amended;
    2. Sec.  10.243(b)(1)(i) is revised by adding the words ``or in one 
or more ATPDEA beneficiary countries, as described in paragraph 
(a)(1)(i) of this section'' after the phrase ``from yarns wholly formed 
in the United States'';
    2. Sec.  10.243(c)(1)(ii) is revised to incorporate an ex-factory 
standard in lieu of the f.o.b. port of exportation standard;
    3. Sec. Sec.  10.244(a), 10.244(c)(12), and 10.246(b)(2) have been 
changed to provide that the Certificate of Origin must be signed by the 
exporter or producer or by the exporter's or producer's authorized 
agent having knowledge of the relevant facts;
    4. In Sec.  10.248(b)(2)(ii), Example 5 has been changed to clarify 
that the scope of findings and trimmings with regard to elastic strips 
does not include elastic strips used as brassiere straps;
    5. In Sec.  10.248(c)(3)(ii), blocks 4-6 of the declaration of 
compliance for brassieres have been amended by adding exclusion 
language regarding findings and trimmings after each reference to 
fabric(s); and
    6. Sec. Sec.  10.244, 10.245, 10.246, 10.247 and 10.248 have been 
amended to change U.S. Customs Service to CBP.
    Except as discussed above, interim Sec. Sec.  10.241 through 10.248 
are adopted as final. In view of the multiple changes throughout the 
textile and apparel regulatory provisions contained in Sec. Sec.  
10.241 through 10.248, those provisions are set forth in their entirety 
in this final rule document.
    Concerning Sec. Sec.  10.251 through 10.257 (provisions concerning 
non-textile articles), the following sections have been amended:
    1. In Sec.  10.252, the definition of the term ``United States 
vessel'' has been amended; and
    2. Sec. Sec.  10.254 and 10.256(b)(2) have been changed to provide 
that the Certificate of Origin must be signed by the exporter or 
producer or by the exporter's or producer's authorized agent having 
knowledge of the relevant facts;
    Except as discussed above, interim Sec. Sec.  10.251 through 10.257 
as published in T.D. 03-16 are adopted as final.
    In addition, the following interim provisions published in T.D. 03-
16 are adopted as final without change:
    1. Interim Sec. Sec.  10.201 and 10.202; and
    2. The interim amendments to the Appendix to part 163.

Signing Authority

    The amendments set forth in this document are being issued in 
accordance with Sec.  0.1(a)(1) of the CBP Regulations (19 CFR 
0.1(a)(1)) pertaining to the authority of the Secretary of the Treasury 
(or his/her delegate) to approve regulations relating to certain CBP 
revenue functions.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Regulatory Flexibility Act

    The regulations to implement the trade benefit provisions for 
Andean countries were previously published as interim regulations and 
provide trade benefits to the importing public. Pursuant to the 
provisions of 5 U.S.C. 553(b)(B), CBP issued the regulations as interim 
rules because it had determined that prior public notice and comment 
procedures on these regulations were unnecessary and contrary to the 
public interest. Because no notice of proposed rulemaking was required, 
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
do not apply. Accordingly, this final rule is 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 in 
accordance with the requirements of the Paperwork Reduction Act (44 
U.S.C. 3507) under control number 1651-0091. An agency may not conduct 
or sponsor, and a person is not required to respond to, a collection of 
information unless the collection of information displays a valid 
control number assigned by OMB.
    The collection of information in these final regulations is in 
Sec. Sec.  10.244, 10.245, 10.246, 10.248, 10.254, 10.255, and 10.256. 
This information conforms to requirements in 19 U.S.C. 3203 and is used 
by CBP to determine whether textile and apparel articles and other 
products imported from designated beneficiary countries are entitled to 
preferential treatment under the Andean Trade Promotion and Drug 
Eradication Act. 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 4 hours per respondent or 
recordkeeper. Comments concerning the accuracy of this burden estimate 
and suggestions for reducing this burden should be directed to Customs 
and Border Protection, Information Services Group, Office of Finance, 
1300 Pennsylvania Avenue, NW., Washington, DC 20229, and the Office of 
Management and Budget, Attention: Desk Officer of the Department of the 
Treasury, Office of Information and Regulatory Affairs, Washington, DC 
20503.
    Part 178 of the regulations (19 CFR part 178), containing the list 
of approved information collections, is revised to reflect this 
additional information collection.

List of Subjects

19 CFR Part 10

    Andean Trade Preference, Assembly, Bonds, Customs duties and 
inspection,

[[Page 44574]]

Exports, Imports, Preference programs, Reporting and recordkeeping 
requirements, Trade agreements.

19 CFR Part 163

    Administrative practice and procedure, Customs duties and 
inspection, Imports, Reporting and recordkeeping requirements.

19 CFR Part 178

    Administrative practice and procedure, Collections of information, 
Imports, Paperwork requirements, Reporting and recordkeeping 
requirements.

Amendments to the Regulations

0
Accordingly, the interim rule amending parts 10 and 163, Customs and 
Border Protection Regulations (19 CFR parts 10 and 163), which was 
published at 68 FR 14478-14500 on March 25, 2003, and corrected at 68 
FR 67338 on December 1, 2003, is adopted as a final rule with the 
following changes.

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

0
1. The general authority citation for part 10 and the specific 
authority citation for Sec. Sec.  10.241 through 10.248 and Sec. Sec.  
10.251 through 258 continue to read, as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 
1498, 1508, 1623, 1624, 3314;
* * * * *
    Sections 10.241 through 10.248 and Sec. Sec.  10.251 through 
10.257 also issued under 19 U.S.C. 3203.

0
2. Sections 10.241 through 10.248 are revised to read as follows:


Sec.  10.241  Applicability.

    Title XXXI of Public Law 107-210 (116 Stat. 933), entitled the 
Andean Trade Promotion and Drug Eradication Act (ATPDEA), amended 
sections 202, 203, 204, and 208 of the Andean Trade Preference Act (the 
ATPA, 19 U.S.C. 3201-3206) to authorize the President to extend 
additional trade benefits to countries that are designated as 
beneficiary countries under the ATPA. Section 204(b)(3) of the ATPA (19 
U.S.C. 3203(b)(3)) provides for the preferential treatment of certain 
apparel and other textile articles from those ATPA beneficiary 
countries which the President designates as ATPDEA beneficiary 
countries. The provisions of Sec. Sec.  10.241 through 10.248 of this 
part set forth the legal requirements and procedures that apply for 
purposes of obtaining preferential treatment pursuant to ATPA section 
204(b)(3) and Subchapter XXI, Chapter 98, HTSUS.


Sec.  10.242  Definitions.

    When used in Sec. Sec.  10.241 through 10.248, the following terms 
have the meanings indicated:
    Apparel articles. ``Apparel articles'' means goods classifiable in 
Chapters 61 and 62 and headings 6501, 6502, 6503, and 6504 and 
subheadings 6406.99.15 and 6505.90 of the HTSUS.
    Assembled or sewn or otherwise assembled in one or more ATPDEA 
beneficiary countries. ``Assembled'' and ``sewn or otherwise 
assembled'' when used in the context of production of an apparel or 
other textile article in one or more ATPDEA beneficiary countries has 
reference to a joining together of two or more components that occurred 
in one or more ATPDEA beneficiary countries, whether or not a prior 
joining operation was performed on the article or any of its components 
in the United States.
    ATPA. ``ATPA'' means the Andean Trade Preference Act, 19 U.S.C. 
3201-3206.
    ATPDEA beneficiary country. ``ATPDEA beneficiary country'' means a 
``beneficiary country'' as defined in Sec.  10.202(a) for purposes of 
the ATPA which the President also has designated as a beneficiary 
country for purposes of preferential treatment of apparel and other 
textile articles under 19 U.S.C. 3203(b)(3) and which has been the 
subject of a determination by the President or his designee, published 
in the Federal Register, that the beneficiary country has satisfied the 
requirements of 19 U.S.C. 3203(b)(5)(A)(ii).
    Chief value. ``Chief value'' when used with reference to llama, 
alpaca, and vicu[ntilde]a means that the value of those materials 
exceeds the value of any other single textile material in the fabric or 
component under consideration, with the value in each case determined 
by application of the principles set forth in Sec.  10.243(c)(1)(ii).
    Cut in one or more ATPDEA beneficiary countries. ``Cut'' when used 
in the context of production of textile luggage in one or more ATPDEA 
beneficiary countries means that all fabric components used in the 
assembly of the article were cut from fabric in one or more ATPDEA 
beneficiary countries, or were cut from fabric in the United States and 
used in a partial assembly operation in the United States prior to 
cutting of fabric and assembly of the article in one or more ATPDEA 
beneficiary countries, or both.
    Foreign origin. ``Foreign origin'' means, in the case of a finding 
or trimming of non-textile materials, that the finding or trimming is a 
product of a country other than the United States or a ATPDEA 
beneficiary country and, in the case of a finding, trimming, or 
interlining of textile materials, that the finding, trimming, or 
interlining does not meet all of the U.S. and ATPDEA beneficiary 
country production requirements for yarns, fabrics, and/or components 
specified under Sec.  10.243(a) for the article in which it is 
incorporated.
    HTSUS. ``HTSUS''means the Harmonized Tariff Schedule of the United 
States.
    Knit-to-Shape Components. ``Knit-to-shape,'' when used with 
reference to textile components, means components that are knitted or 
crocheted from a yarn directly to a specific shape, that is, the shape 
or form of the component as it is used in the apparel article, 
containing at least one self-start edge. Minor cutting or trimming will 
not affect the determination of whether a component is ``knit-to-
shape.''
    Luggage. ``Luggage'' means travel goods (such as trunks, hand 
trunks, lockers, valises, satchels, suitcases, wardrobe cases, 
overnight bags, pullman bags, gladstone bags, traveling bags, 
knapsacks, kitbags, haversacks, duffle bags, and like articles designed 
to contain clothing or other personal effects during travel) and brief 
cases, portfolios, school bags, photographic equipment bags, golf bags, 
camera cases, binocular cases, gun cases, occupational luggage cases 
(for example, physicians' cases, sample cases), and like containers and 
cases designed to be carried with the person. The term ``luggage'' does 
not include handbags (that is, pocketbooks, purses, shoulder bags, 
clutch bags, and all similar articles, by whatever name known, 
customarily carried by women or girls). The term ``luggage'' also does 
not include flat goods (that is, small flatware designed to be carried 
on the person, such as banknote cases, bill cases, billfolds, bill 
purses, bill rolls, card cases, change cases, cigarette cases, coin 
purses, coin holders, compacts, currency cases, key cases, letter 
cases, license cases, money cases, pass cases, passport cases, powder 
cases, spectacle cases, stamp cases, vanity cases, tobacco pouches, and 
similar articles).
    NAFTA. ``NAFTA'' means the North American Free Trade Agreement 
entered into by the United States, Canada, and Mexico on December 17, 
1992.
    Preferential treatment. ``Preferential treatment'' means entry, or 
withdrawal from warehouse for consumption, in the customs territory of 
the United States free of duty and free of any quantitative

[[Page 44575]]

restrictions, limitations, or consultation levels as provided in 19 
U.S.C. 3203(b)(3).
    Self-start edge. ``Self-start edge'' when used with reference to 
knit-to-shape components means a finished edge which is finished as the 
component comes off the knitting machine. Several components with 
finished edges may be linked by yarn or thread as they are produced 
from the knitting machine.
    Wholly formed fabric components. ``Wholly formed,'' when used with 
reference to fabric components, means that all of the production 
processes, starting with the production of wholly formed fabric and 
ending with a component that is ready for incorporation into an apparel 
article, took place in a single country.
    Wholly formed fabrics. ``Wholly formed,'' when used with reference 
to fabric(s), means that all of the production processes, starting with 
polymers, fibers, filaments, textile strips, yarns, twine, cordage, 
rope, or strips of fabric and ending with a fabric by a weaving, 
knitting, needling, tufting, felting, entangling or other process, took 
place in a single country.
    Wholly formed yarns. ``Wholly formed,'' when used with reference to 
yarns, means that all of the production processes, starting with the 
extrusion of filament, strip, film, or sheet and including drawing to 
fully orient a filament or slitting a film or sheet into strip, or the 
spinning of all fibers into yarn, or both, and ending with a yarn or 
plied yarn, took place in the United States or in one or more ATPDEA 
beneficiary countries.


Sec.  10.243  Articles eligible for preferential treatment.

    (a) General. Subject to paragraphs (b) and (c) of this section, 
preferential treatment applies to the following apparel and other 
textile articles that are imported directly into the customs territory 
of the United States from an ATPDEA beneficiary country:
    (1) Apparel articles sewn or otherwise assembled in one or more 
ATPDEA beneficiary countries, or in the United States, or in both, 
exclusively from any one of the following:
    (i) Fabrics or fabric components wholly formed, or components knit-
to-shape, in the United States, from yarns wholly formed in the United 
States or in one or more ATPDEA beneficiary countries (including 
fabrics not formed from yarns, if those fabrics are classifiable under 
heading 5602 or 5603 of the HTSUS and are formed in the United States), 
provided that, if the apparel article is assembled from knitted or 
crocheted or woven wholly formed fabrics or from knitted or crocheted 
or woven wholly formed fabric components produced from fabric, all 
dyeing, printing, and finishing of that knitted or crocheted or woven 
fabric or component was carried out in the United States;
    (ii) Fabrics or fabric components formed, or components knit-to-
shape, in one or more ATPDEA beneficiary countries from yarns wholly 
formed in one or more ATPDEA beneficiary countries, if those fabrics 
(including fabrics not formed from yarns, if those fabrics are 
classifiable under heading 5602 or 5603 of the HTSUS and are formed in 
one or more ATPDEA beneficiary countries) or components are in chief 
value of llama, alpaca, and/or vicu[ntilde]a;
    (iii) Fabrics or yarns, provided that apparel articles (except 
articles classifiable under subheading 6212.10 of the HTSUS) of those 
fabrics or yarns would be considered an originating good under General 
Note 12(t), HTSUS, if the apparel articles had been imported directly 
from Canada or Mexico; or
    (iv) Fabrics or yarns that the President or his designee has 
designated in the Federal Register as fabrics or yarns that cannot be 
supplied by the domestic industry in commercial quantities in a timely 
manner;
    (2) Apparel articles sewn or otherwise assembled in one or more 
ATPDEA beneficiary countries, or in the United States, or in both, 
exclusively from a combination of fabrics, fabric components, knit-to-
shape components or yarns described in two or more of paragraphs 
(a)(1)(i) through (a)(1)(iv) of this section;
    (3) A handloomed, handmade, or folklore apparel or other textile 
article of an ATPDEA beneficiary country that the President or his 
designee and representatives of the ATPDEA beneficiary country mutually 
agree is a handloomed, handmade, or folklore article and that is 
certified as a handloomed, handmade, or folklore article by the 
competent authority of the ATPDEA beneficiary country;
    (4) Brassieres classifiable under subheading 6212.10 of the HTSUS, 
if both cut and sewn or otherwise assembled in the United States, or in 
one or more ATPDEA beneficiary countries, or in both, other than 
articles entered as articles described in paragraphs (a)(1) through 
(a)(3) and (a)(7) of this section, and provided that any applicable 
additional requirements set forth in Sec.  10.248 are met;
    (5) Textile luggage assembled in an ATPDEA beneficiary country from 
fabric wholly formed and cut in the United States, from yarns wholly 
formed in the United States, that is entered under subheading 
9802.00.80 of the HTSUS;
    (6) Textile luggage assembled in one or more ATPDEA beneficiary 
countries from fabric cut in one or more ATPDEA beneficiary countries 
from fabric wholly formed in the United States from yarns wholly formed 
in the United States; and
    (7) Apparel articles sewn or otherwise assembled in one or more 
ATPDEA beneficiary countries from fabrics or from fabric components 
formed, or from components knit-to-shape, in one or more ATPDEA 
beneficiary countries from yarns wholly formed in the United States or 
in one or more ATPDEA beneficiary countries (including fabrics not 
formed from yarns, if those fabrics are classifiable under heading 5602 
or 5603 of the HTSUS and are formed in one or more ATPDEA beneficiary 
countries), including apparel articles sewn or otherwise assembled in 
part but not exclusively from any of the fabrics, fabric components 
formed, or components knit-to-shape described in paragraph (a)(1) of 
this section.
    (b) Dyeing, printing, finishing and other operations--(1) Dyeing, 
printing and finishing operations. Dyeing, printing, and finishing 
operations may be performed on any yarn, fabric, or knit-to-shape or 
other component used in the production of any article described under 
paragraph (a) of this section without affecting the eligibility of the 
article for preferential treatment, provided that the operation is 
performed in the United States or in an ATPDEA beneficiary country and 
not in any other country and subject to the following additional 
conditions:
    (i) In the case of an article described in paragraph (a)(1), 
(a)(2), or (a)(7) of this section that contains a knitted or crocheted 
or woven fabric, or a knitted or crocheted or woven fabric component 
produced from fabric, that was wholly formed in the United States from 
yarns wholly formed in the United States or in one or more ATPDEA 
beneficiary countries, as described in paragraph (a)(1)(i) of this 
section, any dyeing, printing, or finishing of that knitted or 
crocheted or woven fabric or component must have been carried out in 
the United States; and
    (ii) In the case of assembled luggage described in paragraph (a)(5) 
of this section, an operation may be performed in an ATPDEA beneficiary 
country only if that operation is incidental to the assembly process 
within the meaning of Sec.  10.16.
    (2) Other operations. An article described under paragraph (a) of 
this section that is otherwise eligible for preferential treatment will 
not be

[[Page 44576]]

disqualified from receiving that treatment by virtue of having 
undergone one or more operations such as embroidering, stone-washing, 
enzyme-washing, acid washing, perma-pressing, oven-baking, bleaching, 
garment-dyeing or screen printing, provided that the operation is 
performed in the United States or in an ATPDEA beneficiary country and 
not in any other country. However, in the case of assembled luggage 
described in paragraph (a)(5) of this section, an operation may be 
performed in an ATPDEA beneficiary country without affecting the 
eligibility of the article for preferential treatment only if it is 
incidental to the assembly process within the meaning of Sec.  10.16.
    (c) Special rules for certain component materials--(1) Foreign 
findings, trimmings, interlinings, and yarns--(i) General. An article 
otherwise described under paragraph (a) of this section will not be 
ineligible for the preferential treatment referred to in Sec.  10.241 
because the article contains:
    (A) Findings and trimmings of foreign origin, if the value of those 
findings and trimmings does not exceed 25 percent of the cost of the 
components of the assembled article. For purposes of this section 
``findings and trimmings'' include, but are not limited to, sewing 
thread, hooks and eyes, snaps, buttons, ``bow buds,'' decorative lace 
trim, elastic strips, zippers (including zipper tapes), and labels;
    (B) Interlinings of foreign origin, if the value of those 
interlinings does not exceed 25 percent of the cost of the components 
of the assembled article. For purposes of this section ``interlinings'' 
include only a chest type plate, a ``hymo'' piece, or ``sleeve 
header,'' of woven or weft-inserted warp knit construction and of 
coarse animal hair or man-made filaments;
    (C) Any combination of findings and trimmings of foreign origin and 
interlinings of foreign origin, if the total value of those findings 
and trimmings and interlinings does not exceed 25 percent of the cost 
of the components of the assembled article; or
    (D) Yarns not wholly formed in the United States or in one or more 
ATPDEA beneficiary countries if the total weight of all those yarns is 
not more than 7 percent of the total weight of the article.
    (ii) ``Cost'' and ``value'' defined. The ``cost'' of components and 
the ``value'' of findings and trimmings or interlinings referred to in 
paragraph (c)(1)(i) of this section means:
    (A) The ex-factory price of the components, findings and trimmings, 
or interlinings as set out in the invoice or other commercial 
documents, or, if the price is other than ex-factory, the price as set 
out in the invoice or other commercial documents adjusted to arrive at 
an ex-factory price; or
    (B) If the price cannot be determined under paragraph (c)(1)(ii)(A) 
of this section or if CBP finds that price to be unreasonable, all 
reasonable expenses incurred in the growth, production, manufacture, or 
other processing of the components, findings and trimmings, or 
interlinings, including the cost or value of materials and general 
expenses, plus a reasonable amount for profit.
    (iii) Treatment of yarns as findings or trimmings. If any yarns not 
wholly formed in the United States or one or more ATPDEA beneficiary 
countries are used in an article as a finding or trimming described in 
paragraph (c)(1)(i)(A) of this section, the yarns will be considered to 
be a finding or trimming for purposes of paragraph (c)(1)(i) of this 
section.
    (2) Special rule for nylon filament yarn. An article otherwise 
described under paragraph (a)(1)(i) through (iii), (a)(2), or (a)(7) of 
this section will not be ineligible for the preferential treatment 
referred to in Sec.  10.241 because the article contains nylon filament 
yarn (other than elastomeric yarn) that is classifiable in subheading 
5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 
5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 of the HTSUS and that 
is entered free of duty from Canada, Mexico, or Israel.
    (d) Imported directly defined. For purposes of paragraph (a) of 
this section, the words ``imported directly'' mean:
    (1) Direct shipment from any ATPDEA beneficiary country to the 
United States without passing through the territory of any country that 
is not an ATPDEA beneficiary country;
    (2) If the shipment is from any ATPDEA beneficiary country to the 
United States through the territory of any country that is not an 
ATPDEA beneficiary country, the articles in the shipment do not enter 
into the commerce of any country that is not an ATPDEA 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
    (3) If the shipment is from any ATPDEA beneficiary country to the 
United States through the territory of any country that is not an 
ATPDEA beneficiary country, and the invoices and other documents do not 
show the United States as the final destination, the articles in the 
shipment upon arrival in the United States are imported directly only 
if they:
    (i) Remained under the control of the customs authority of the 
intermediate country;
    (ii) Did not enter into the commerce of the intermediate country 
except for the purpose of sale other than at retail, and the port 
director is satisfied that the importation results from the original 
commercial transaction between the importer and the producer or the 
producer's sales agent; and
    (iii) Were not subjected to operations other than loading or 
unloading, and other activities necessary to preserve the articles in 
good condition.


Sec.  10.244  Certificate of Origin.

    (a) General. A Certificate of Origin must be employed to certify 
that an apparel or other textile article being exported from an ATPDEA 
beneficiary country to the United States qualifies for the preferential 
treatment referred to in Sec.  10.241. The Certificate of Origin must 
be prepared in the ATPDEA beneficiary country by the producer or 
exporter or by the producer's or exporter's authorized agent in the 
format specified in paragraph (b) of this section. If the person 
preparing the Certificate of Origin is not the producer of the article, 
the person may complete and sign a Certificate of Origin on the basis 
of:
    (1) The person's reasonable reliance on the producer's written 
representation that the article qualifies for preferential treatment; 
or
    (2) A completed and signed Certificate of Origin for the article 
voluntarily provided to the person by the producer.
    (b) Form of Certificate. The Certificate of Origin referred to in 
paragraph (a) of this section must be in the following format:

 Andean Trade Promotion and Drug Eradication Act Textile Certificate of
                                 Origin
------------------------------------------------------------------------
 
------------------------------------------------------------------------
1. Exporter Name & Address:
------------------------------------------------------------------------
2. Producer Name & Address:
------------------------------------------------------------------------

[[Page 44577]]

 
3. Importer Name & Address:
------------------------------------------------------------------------
4. Description of Article:
------------------------------------------------------------------------
5. Preference Group:
------------------------------------------------------------------------
Group................  Each Description Below Is Only        19 CFR
                          a Summary of the Cited CFR
                                  Provision.
------------------------------------------------------------------------
A....................  Apparel assembled from U.S.      10.243(a)(1)(i).
                        formed, dyed, printed and
                        finished fabrics or fabric
                        components, or U.S. formed
                        knit-to-shape components from
                        U.S. or Andean yarns.
B....................  Apparel assembled from Andean   10.243(a)(1)(ii).
                        chief value llama, alpaca or
                        vicu[ntilde]a fabrics, fabric
                        components, or knit-to-shape
                        components, from Andean yarns.
C....................  Apparel assembled from fabrics  10.243(a)(1)(iii)
                        or yarns considered as being                   .
                        in short supply in the NAFTA.
D....................  Apparel assembled from fabrics  10.243(a)(1)(iv).
                        or yarns designated as not
                        available in commercial
                        quantities in the United
                        States.
E....................  Apparel assembled from a            10.243(a)(2).
                        combination of two or more
                        yarns, fabrics, fabric
                        components, or knit-to-shape
                        components described in
                        preference groups A though D.
F....................  Handloomed, handmade, or            10.243(a)(3).
                        folklore textile and apparel
                        goods.
G....................  Brassieres assembled in the         10.243(a)(4).
                        U.S. and/or one or more
                        Andean beneficiary countries.
H....................  Textile luggage assembled from  10.243(a)(5)&(6).
                        U.S. formed fabrics from U.S.
                        yarns.
I....................  Apparel assembled from Andean       10.243(a)(7).
                        formed fabrics, fabric
                        components, or knit-to-shape
                        components from U.S. or
                        Andean yarns, whether or not
                        also assembled, in part, from
                        yarns, fabrics and fabric
                        components described in
                        preference groups A through D.
------------------------------------------------------------------------
6. U.S./Andean Fabric Producer Name & Address:
------------------------------------------------------------------------
7. U.S./Andean Yarn Producer Name & Address:
------------------------------------------------------------------------
8. Handloomed, Handmade, or Folklore Article:
------------------------------------------------------------------------
9. Name of Short Supply Fabric or Yarn:
------------------------------------------------------------------------
I certify that the information on this document is complete and accurate
 and I assume the responsibility for proving such representations. I
 understand that I am liable for any false statements or material
 omissions made on or in connection with this document. I agree to
 maintain, and present upon request, documentation necessary to support
 this certificate.
------------------------------------------------------------------------
10. Authorized Signature:
------------------------------------------------------------------------
11. Company:
------------------------------------------------------------------------
12. Name: (Print or Type)
------------------------------------------------------------------------
13. Title:
------------------------------------------------------------------------
14. Date: (DD/MM/YY)
------------------------------------------------------------------------
15. Blanket Period:
    From:
    To:
------------------------------------------------------------------------
16. Telephone:
    Facsimile:
------------------------------------------------------------------------

    (c) Preparation of Certificate. The following rules will apply for 
purposes of completing the Certificate of Origin set forth in paragraph 
(b) of this section:
    (1) Blocks 1 through 5 pertain only to the final article exported 
to the United States for which preferential treatment may be claimed;
    (2) Block 1 should state the legal name and address (including 
country) of the exporter;
    (3) Block 2 should state the legal name and address (including 
country) of the producer. If there is more than one producer, attach a 
list stating the legal name and address (including country) of all 
additional producers. If this information is confidential, it is 
acceptable to state ``available to Customs and Border Protection (CBP) 
upon request'' in block 2. If the producer and the exporter are the 
same, state ``same'' in block 2;
    (4) Block 3 should state the legal name and address (including 
country) of the importer;
    (5) Block 4 should provide a full description of each article. The 
description should be sufficient to relate it to the invoice 
description and to the description of the article in the international 
Harmonized System. Include the invoice number as shown on the 
commercial invoice or, if the invoice number is not known, include 
another unique reference number such as the shipping order number;
    (6) In block 5, insert the letter that designates the preference 
group which applies to the article according to the description 
contained in the CFR provision cited on the Certificate for that group;
    (7) Blocks 6 through 9 must be completed only when the block in 
question calls for information that is relevant to the preference group 
identified in block 5;
    (8) Block 6 should state the legal name and address (including 
country) of the fabric producer;

[[Page 44578]]

    (9) Block 7 should state the legal name and address (including 
country) of the yarn producer;
    (10) Block 8 should state the name of the folklore article or 
should state that the article is handloomed or handmade of handloomed 
fabric;
    (11) Block 9 should be completed if the article described in block 
4 incorporates a fabric or yarn described in preference group C or D 
and should state the name of the fabric or yarn that has been 
considered as being in short supply in the NAFTA or that has been 
designated as not available in commercial quantities in the United 
States. Block 9 also should be completed if preference group E or I 
applies to the article described in block 4 and the article 
incorporates a fabric or yarn described in preference group C or D;
    (12) Block 10 must contain the signature of the producer or 
exporter or the producer's or exporter's authorized agent having 
knowledge of the relevant facts;
    (13) Block 14 should reflect the date on which the Certificate was 
completed and signed;
    (14) Block 15 should be completed if the Certificate is intended to 
cover multiple shipments of identical articles as described in block 4 
that are imported into the United States during a specified period of 
up to one year (see Sec.  10.246(b)(4)(ii)). The ``from'' date is the 
date on which the Certificate became applicable to the article covered 
by the blanket Certificate (this date may be prior to the date 
reflected in block 14). The ``to'' date is the date on which the 
blanket period expires; and
    (15) The Certificate may be printed and reproduced locally. If more 
space is needed to complete the Certificate, attach a continuation 
sheet.


Sec.  10.245  Filing of claim for preferential treatment.

    (a) Declaration. In connection with a claim for preferential 
treatment for an apparel or other textile article described in Sec.  
10.243, the importer must make a written declaration that the article 
qualifies for that treatment. The inclusion on the entry summary, or 
equivalent documentation, of the subheading within Chapter 98 of the 
HTSUS under which the article is classified will constitute the written 
declaration. Except in any of the circumstances described in Sec.  
10.246(d)(1), the declaration required under this paragraph must be 
based on a Certificate of Origin that has been completed and properly 
executed in accordance with Sec.  10.244, that covers the article being 
imported, and that is in the possession of the importer.
    (b) Corrected declaration. If, after making the declaration 
required under paragraph (a) of this section, the importer has reason 
to believe that a Certificate of Origin on which a declaration was 
based contains information that is not correct, the importer must 
within 30 calendar days after the date of discovery of the error make a 
corrected declaration and pay any duties that may be due. A corrected 
declaration will be effected by submission of a letter or other written 
statement to the CBP port where the declaration was originally filed.


Sec.  10.246  Maintenance of records and submission of Certificate by 
importer.

    (a) Maintenance of records. Each importer claiming preferential 
treatment for an article under Sec.  10.245 must maintain in the United 
States, in accordance with the provisions of part 163 of this chapter, 
all records relating to the importation of the article. Those records 
must include a copy of the Certificate of Origin referred to in Sec.  
10.245(a) and any other relevant documents or other records as 
specified in Sec.  163.1(a) of this chapter.
    (b) Submission of Certificate. An importer who claims preferential 
treatment on an apparel or other textile article under Sec.  10.245(a) 
must provide, at the request of the port director, a copy of the 
Certificate of Origin pertaining to the article. A Certificate of 
Origin submitted to CBP under this paragraph:
    (1) Must be in writing or must be transmitted electronically 
through any electronic data interchange system authorized by CBP for 
that purpose;
    (2) If in writing, must be signed by the producer or exporter or 
the producer's or exporter's authorized agent having knowledge of the 
relevant facts;
    (3) Must be completed either in the English language or in the 
language of the country from which the article is exported. If the 
Certificate is completed in a language other than English, the importer 
must provide to CBP upon request a written English translation of the 
Certificate; and
    (4) May be applicable to:
    (i) A single importation of an article into the United States, 
including a single shipment that results in the filing of one or more 
entries and a series of shipments that results in the filing of one 
entry; or
    (ii) Multiple importations of identical articles into the United 
States that occur within a specified blanket period, not to exceed 12 
months, set out in the Certificate by the exporter. For purposes of 
this paragraph and Sec.  10.244(c)(14), ``identical articles'' means 
articles that are the same in all material respects, including physical 
characteristics, quality, and reputation.
    (c) Correction and nonacceptance of Certificate. If the port 
director determines that a Certificate of Origin is illegible or 
defective or has not been completed in accordance with paragraph (b) of 
this section, the importer will be given a period of not less than five 
working days to submit a corrected Certificate. A Certificate will not 
be accepted in connection with subsequent importations during a period 
referred to in paragraph (b)(4)(ii) of this section if the port 
director determined that a previously imported identical article 
covered by the Certificate did not qualify for preferential treatment.
    (d) Certificate not required--(1) General. Except as otherwise 
provided in paragraph (d)(2) of this section, an importer is not 
required to have a Certificate of Origin in his possession for:
    (i) An importation of an article for which the port director has in 
writing waived the requirement for a Certificate of Origin because the 
port director is otherwise satisfied that the article qualifies for 
preferential treatment;
    (ii) A non-commercial importation of an article; or
    (iii) A commercial importation of an article whose value does not 
exceed US$2,500, provided that, unless waived by the port director, the 
producer, exporter, importer or authorized agent includes on, or 
attaches to, the invoice or other document accompanying the shipment 
the following signed statement:

    I hereby certify that the article covered by this shipment 
qualifies for preferential treatment under the ATPDEA.

Check One:
( ) Producer
( ) Exporter
( ) Importer
( ) Agent
-----------------------------------------------------------------------

Name
-----------------------------------------------------------------------

Title
-----------------------------------------------------------------------

Address
-----------------------------------------------------------------------

Signature and Date

    (2) Exception. If the port director determines that an importation 
described in paragraph (d)(1) of this section forms part of a series of 
importations that may reasonably be considered to have been undertaken 
or arranged for the purpose of avoiding a Certificate of Origin 
requirement under

[[Page 44579]]

Sec. Sec.  10.244 through 10.246, the port director will notify the 
importer in writing that for that importation the importer must have in 
his possession a valid Certificate of Origin to support the claim for 
preferential treatment. The importer will have 30 calendar days from 
the date of the written notice to obtain a valid Certificate of Origin, 
and a failure to timely obtain the Certificate of Origin will result in 
denial of the claim for preferential treatment. For purposes of this 
paragraph, a ``series of importations'' means two or more entries 
covering articles arriving on the same day from the same exporter and 
consigned to the same person.


Sec.  10.247  Verification and justification of claim for preferential 
treatment.

    (a) Verification by CBP. A claim for preferential treatment made 
under Sec.  10.245, including any statements or other information 
contained on a Certificate of Origin submitted to CBP under Sec.  
10.246, will be subject to whatever verification the port director 
deems necessary. In the event that the port director for any reason is 
prevented from verifying the claim, the port director may deny the 
claim for preferential treatment. A verification of a claim for 
preferential treatment may involve, but need not be limited to, a 
review of:
    (1) All records required to be made, kept, and made available to 
CBP by the importer or any other person under part 163 of this chapter;
    (2) Documentation and other information regarding the country of 
origin of an article and its constituent materials, including, but not 
limited to, production records, information relating to the place of 
production, the number and identification of the types of machinery 
used in production, and the number of workers employed in production; 
and
    (3) Evidence to document the use of U.S. or ATPDEA beneficiary 
country materials in the production of the article in question, such as 
purchase orders, invoices, bills of lading and other shipping 
documents, and customs import and clearance documents.
    (b) Importer requirements. In order to make a claim for 
preferential treatment under Sec.  10.245, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the apparel or other textile article qualifies for 
preferential treatment. Those records must include documents that 
support a claim that the article in question qualifies for preferential 
treatment because it is specifically described in one of the provisions 
under Sec.  10.243(a). If the importer is claiming that the article 
incorporates fabric or yarn that was wholly formed in the United States 
or in an ATPDEA beneficiary country, the importer must have records 
that identify the producer of the fabric or yarn. A properly completed 
Certificate of Origin in the form set forth in Sec.  10.244(b) is a 
record that would serve these purposes;
    (2) Must establish and implement internal controls which provide 
for the periodic review of the accuracy of the Certificates of Origin 
or other records referred to in paragraph (b)(1) of this section;
    (3) Must have shipping papers that show how the article moved from 
the ATPDEA beneficiary country to the United States. If the imported 
article was shipped through a country other than an ATPDEA beneficiary 
country and the invoices and other documents from the ATPDEA 
beneficiary country do not show the United States as the final 
destination, the importer also must have documentation that 
demonstrates that the conditions set forth in Sec.  10.243(d)(3)(i) 
through (iii) were met; and
    (4) Must be prepared to explain, upon request from CBP, how the 
records and internal controls referred to in paragraphs (b)(1) through 
(b)(3) of this section justify the importer's claim for preferential 
treatment.


Sec.  10.248  Additional requirements for preferential treatment of 
brassieres.

    (a) Definitions. When used in this section, the following terms 
have the meanings indicated:
    (1) Producer. ``Producer'' means an individual, corporation, 
partnership, association, or other entity or group that exercises 
direct, daily operational control over the production process in an 
ATPDEA beneficiary country.
    (2) Entity controlling production. ``Entity controlling 
production'' means an individual, corporation, partnership, 
association, or other entity or group that is not a producer and that 
controls the production process in an ATPDEA beneficiary country 
through a contractual relationship or other indirect means.
    (3) Fabrics formed in the United States. ``Fabrics formed in the 
United States'' means fabrics that were produced by a weaving, 
knitting, needling, tufting, felting, entangling or other fabric-making 
process performed in the United States.
    (4) Cost. ``Cost'' when used with reference to fabrics formed in 
the United States means:
    (i) The price of the fabrics when last purchased, f.o.b. port of 
exportation, as set out in the invoice or other commercial documents, 
or, if the price is other than f.o.b. port of exportation:
    (A) The price as set out in the invoice or other commercial 
documents adjusted to arrive at an f.o.b. port of exportation price; or
    (B) If no exportation to an ATPDEA beneficiary country is involved, 
the price as set out in the invoice or other commercial documents, less 
the freight, insurance, packing, and other costs incurred in 
transporting the fabrics to the place of production if included in that 
price; or
    (ii) If the price cannot be determined under paragraph (a)(4)(i) of 
this section or if CBP finds that price to be unreasonable, all 
reasonable expenses incurred in the growth, production, manufacture, or 
other processing of the fabrics, including the cost or value of 
materials (which includes the cost of non-recoverable scrap generated 
in forming the fabrics) and general expenses, plus a reasonable amount 
for profit, and the freight, insurance, packing, and other costs, if 
any, incurred in transporting the fabrics to the port of exportation.
    (5) Declared customs value. ``Declared customs value'' when used 
with reference to fabric contained in an article means the sum of:
    (i) The cost of fabrics formed in the United States that the 
producer or entity controlling production can verify; and
    (ii) The cost of all other fabric contained in the article, 
exclusive of all findings and trimmings, determined as follows:
    (A) In the case of fabric purchased by the producer or entity 
controlling production, the f.o.b. port of exportation price of the 
fabric as set out in the invoice or other commercial documents, or, if 
the price is other than f.o.b. port of exportation:
    (1) The price as set out in the invoice or other commercial 
documents adjusted to arrive at an f.o.b. port of exportation price, 
plus expenses for embroidering and dyeing, printing, and finishing 
operations applied to the fabric if not included in that price; or
    (2) If no exportation to an ATPDEA beneficiary country is involved, 
the price as set out in the invoice or other commercial documents, plus 
expenses for embroidering and dyeing, printing, and finishing 
operations applied to the fabric if not included in that price, but 
less the freight, insurance, packing, and other costs incurred in 
transporting the fabric to the place of production if included in that 
price;
    (B) In the case of fabric for which the cost cannot be determined 
under paragraph (a)(5)(ii)(A) of this section or if CBP finds that cost 
to be

[[Page 44580]]

unreasonable, all reasonable expenses incurred in the growth, 
production, or manufacture of the fabric, including the cost or value 
of materials (which includes the cost of non-recoverable scrap 
generated in the growth, production, or manufacture of the fabric), 
general expenses and embroidering and dyeing, printing, and finishing 
expenses, plus a reasonable amount for profit, and the freight, 
insurance, packing, and other costs, if any, incurred in transporting 
the fabric to the port of exportation;
    (C) In the case of fabric components purchased by the producer or 
entity controlling production, the f.o.b. port of exportation price of 
those fabric components as set out in the invoice or other commercial 
documents, less the cost or value of any non-textile materials, and 
less expenses for cutting or other processing to create the fabric 
components other than knitting to shape, that the producer or entity 
controlling production can verify, or, if the price is other than 
f.o.b. port of exportation:
    (1) The price as set out in the invoice or other commercial 
documents adjusted to arrive at an f.o.b. port of exportation price, 
less the cost or value of any non-textile materials, and less expenses 
for cutting or other processing to create the fabric components other 
than knitting to shape, that the producer or entity controlling 
production can verify; or
    (2) If no exportation to an ATPDEA beneficiary country is involved, 
the price as set out in the invoice or other commercial documents, less 
the cost or value of any non-textile materials, and less expenses for 
cutting or other processing to create the fabric components other than 
knitting to shape, that the producer or entity controlling production 
can verify, and less the freight, insurance, packing, and other costs 
incurred in transporting the fabric components to the place of 
production if included in that price; and
    (D) In the case of fabric components for which a fabric cost cannot 
be determined under paragraph (a)(5)(ii)(C) of this section or if CBP 
finds that cost to be unreasonable: All reasonable expenses incurred in 
the growth, production, or manufacture of the fabric components, 
including the cost or value of materials (which does not include the 
cost of recoverable scrap generated in the growth, production, or 
manufacture of the fabric components) and general expenses, but 
excluding the cost or value of any non-textile materials, and excluding 
expenses for cutting or other processing to create the fabric 
components other than knitting to shape, that the producer or entity 
controlling production can verify, plus a reasonable amount for profit, 
and the freight, insurance, packing, and other costs, if any, incurred 
in transporting the fabric components to the port of exportation.
    (6) Year. ``Year'' means a 12-month period beginning on October 1 
and ending on September 30 but does not include any 12-month period 
that began prior to October 1, 2002.
    (7) Entered. ``Entered'' means entered, or withdrawn from warehouse 
for consumption, in the customs territory of the United States.
    (b) Limitations on preferential treatment--(1) General. During the 
year that begins on October 1, 2003, and during any subsequent year, 
articles of a producer or an entity controlling production that conform 
to the production standards set forth in Sec.  10.243(a)(4) will be 
eligible for preferential treatment only if:
    (i) The aggregate cost of fabrics (exclusive of all findings and 
trimmings) formed in the United States that were used in the production 
of all of those articles of that producer or that entity controlling 
production that are entered as articles described in Sec.  10.243(a)(4) 
during the immediately preceding year was at least 75 percent of the 
aggregate declared customs value of the fabric (exclusive of all 
findings and trimmings) contained in all of those articles of that 
producer or that entity controlling production that are entered as 
articles described in Sec.  10.243(a)(4) during that year; or
    (ii) In a case in which the 75 percent requirement set forth in 
paragraph (b)(1)(i) of this section was not met during a year and 
therefore those articles of that producer or that entity controlling 
production were not eligible for preferential treatment during the 
following year, the aggregate cost of fabrics (exclusive of all 
findings and trimmings) formed in the United States that were used in 
the production of all of those articles of that producer or that entity 
controlling production that conform to the production standards set 
forth in Sec.  10.243(a)(4) and that were entered during the 
immediately preceding year was at least 85 percent of the aggregate 
declared customs value of the fabric (exclusive of all findings and 
trimmings) contained in all of those articles of that producer or that 
entity controlling production that conform to the production standards 
set forth in Sec.  10.243(a)(4) and that were entered during that year; 
and
    (iii) In conjunction with the filing of the claim for preferential 
treatment under Sec.  10.245, the importer records on the entry summary 
or warehouse withdrawal for consumption (CBP Form 7501, column 34), or 
its electronic equivalent, the distinct and unique identifier assigned 
by CBP to the applicable documentation prescribed under paragraph (c) 
of this section.
    (2) Rules of application--(i) General. For purposes of paragraphs 
(b)(1)(i) and (b)(1)(ii) of this section and for purposes of preparing 
and filing the documentation prescribed in paragraph (c) of this 
section, the following rules will apply:
    (A) The articles in question must have been produced in the manner 
specified in Sec.  10.243(a)(4) and the articles in question must be 
entered within the same year;
    (B) Articles that are exported to countries other than the United 
States and are never entered are not to be considered in determining 
compliance with the 75 or 85 percent standard specified in paragraph 
(b)(1)(i) or paragraph (b)(1)(ii) of this section;
    (C) Articles that are entered under an HTSUS subheading other than 
the HTSUS subheading which pertains to articles described in Sec.  
10.243(a)(4) are not to be considered in determining compliance with 
the 75 percent standard specified in paragraph (b)(1)(i) of this 
section;
    (D) For purposes of determining compliance with the 85 percent 
standard specified in paragraph (b)(1)(ii) of this section, all 
articles that conform to the production standards set forth in Sec.  
10.243(a)(4) must be considered, regardless of the HTSUS subheading 
under which they were entered;
    (E) Fabric components and fabrics that constitute findings or 
trimmings are not to be considered in determining compliance with the 
75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph 
(b)(1)(ii) of this section;
    (F) Beginning October 1, 2003, in order for articles to be eligible 
for preferential treatment in a given year, a producer of, or entity 
controlling production of, those articles must have met the 75 percent 
standard specified in paragraph (b)(1)(i) of this section during the 
immediately preceding year. If articles of a producer or entity 
controlling production fail to meet the 75 percent standard specified 
in paragraph (b)(1)(i) of this section during a year, articles of that 
producer or entity controlling production:
    (1) Will not be eligible for preferential treatment during the 
following year;
    (2) Will remain ineligible for preferential treatment until the 
year that follows a year in which articles of that producer or entity 
controlling production met the 85 percent standard

[[Page 44581]]

specified in paragraph (b)(1)(ii) of this section; and
    (3) After the 85 percent standard specified in paragraph (b)(1)(ii) 
of this section has been met, will again be subject to the 75 percent 
standard specified in paragraph (b)(1)(i) of this section during the 
following year for purposes of determining eligibility for preferential 
treatment in the next year.
    (G) A new producer or new entity controlling production, that is, a 
producer or entity controlling production who did not produce or 
control production of articles that were entered as articles described 
in Sec.  10.243(a)(4) during the immediately preceding year, must first 
establish compliance with the 85 percent standard specified in 
paragraph (b)(1)(ii) of this section as a prerequisite to preparation 
of the declaration of compliance referred to in paragraph (c) of this 
section;
    (H) A declaration of compliance prepared by a producer or by an 
entity controlling production must cover all production of that 
producer or all production that the entity controls for the year in 
question;
    (I) A producer would not prepare a declaration of compliance if all 
of its production is covered by a declaration of compliance prepared by 
an entity controlling production;
    (J) In the case of a producer, the 75 or 85 percent standard 
specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this 
section and the declaration of compliance procedure under paragraph (c) 
of this section apply to all articles of that producer for the year in 
question, even if some but not all of that production is also covered 
by a declaration of compliance prepared by an entity controlling 
production;
    (K) The U.S. importer does not have to be the producer or the 
entity controlling production who prepared the declaration of 
compliance; and
    (L) The exclusion references regarding findings and trimmings in 
paragraph (b)(1)(i) and paragraph (b)(1)(ii) of this section apply to 
all findings and trimmings, whether or not they are of foreign origin.
    (ii) Examples. The following examples will illustrate application 
of the principles set forth in paragraph (b)(2)(i) of this section.

    Example 1. An ATPDEA beneficiary country producer of articles 
that meet the production standards specified in Sec.  10.243(a)(4) 
in the first year sends 50 percent of that production to ATPDEA 
region markets and the other 50 percent to the U.S. market; the cost 
of the fabrics formed in the United States equals 100 percent of the 
value of all of the fabric in the articles sent to the ATPDEA region 
and 60 percent of the value of all of the fabric in the articles 
sent to the United States. Although the cost of fabrics formed in 
the United States is more than 75 percent of the value of all of the 
fabric used in all of the articles produced, this producer could not 
prepare a valid declaration of compliance because the articles sent 
to the United States did not meet the minimum 75 percent standard.
    Example 2. A producer sends to the United States in the first 
year three shipments of articles that meet the description in Sec.  
10.243(a)(4); one of those shipments is entered under the HTSUS 
subheading that covers articles described in Sec.  10.243(a)(4), the 
second shipment is entered under the HTSUS subheading that covers 
articles described in Sec.  10.243(a)(7), and the third shipment is 
entered under subheading 9802.00.80, HTSUS. In determining whether 
the minimum 75 percent standard has been met in the first year for 
purposes of entry of articles under the HTSUS subheading that covers 
articles described in Sec.  10.243(a)(4) during the following (that 
is, second) year, consideration must be restricted to the articles 
in the first shipment and therefore must not include the articles in 
the second and third shipments.
    Example 3. A producer in the second year begins production of 
articles that conform to the production standards specified in Sec.  
10.243(a)(4); some of those articles are entered in that year under 
HTSUS subheading 6212.10 and others under HTSUS subheading 
9802.00.80 but none are entered in that year under the HTSUS 
subheading which pertains to articles described in Sec.  
10.243(a)(4) because the 75 percent standard had not been met in the 
preceding (that is, first) year. In this case the 85 percent 
standard applies, and all of the articles that were entered under 
the various HTSUS provisions in the second year must be taken into 
account in determining whether that 85 percent standard has been 
met. If the 85 percent was met in the aggregate for all of the 
articles entered in the second year, in the next (that is, third) 
year articles of that producer may receive preferential treatment 
under the HTSUS subheading which pertains to articles described in 
Sec.  10.243(a)(4).
    Example 4. An entity controlling production of articles that 
meet the description in Sec.  10.243(a)(4) buys for the U.S., 
Canadian and Mexican markets; the articles in each case are first 
sent to the United States where they are entered for consumption and 
then placed in a commercial warehouse from which they are shipped to 
various stores in the United States, Canada and Mexico. 
Notwithstanding the fact that some of the articles ultimately ended 
up in Canada or Mexico, a declaration of compliance prepared by the 
entity controlling production must cover all of the articles rather 
than only those that remained in the United States because all of 
those articles had been entered for consumption.
    Example 5. Fabric is cut and sewn in the United States with 
other U.S. materials to form cups which are joined together to form 
brassiere front subassemblies in the United States, and those front 
subassemblies are then placed in a warehouse in the United States 
where they are held until the following year; during that following 
year all of the front subassemblies are shipped to an ATPDEA 
beneficiary country where they are assembled with elastic strips for 
use as brassiere straps and labels produced in an Asian country and 
other fabrics, components or materials produced in the ATPDEA 
beneficiary country to form articles that meet the production 
standards specified in Sec.  10.243(a)(4) and that are then shipped 
to the United States and entered during that same year. In 
determining whether the entered articles meet the minimum 75 or 85 
percent standard, the fabric in the labels is to be disregarded 
entirely because the labels constitute findings or trimmings for 
purposes of this section, and all of the fabric in the front 
subassemblies is countable because it was all formed in the United 
States and used in the production of articles that were entered in 
the same year.
    Example 6. An ATPDEA beneficiary country producer's entire 
production of articles that meet the description in Sec.  
10.243(a)(4) is sent to a U.S. importer in two separate shipments, 
one in February and the other in June of the same calendar year; the 
articles shipped in February do not meet the minimum 75 percent 
standard, the articles shipped in June exceed the 85 percent 
standard, and the articles in the two shipments, taken together, do 
meet the 75 percent standard; the articles covered by the February 
shipment are entered for consumption on March 1 of that calendar 
year, and the articles covered by the June shipment are placed in a 
CBP bonded warehouse upon arrival and are subsequently withdrawn 
from warehouse for consumption on November 1 of that calendar year. 
The ATPDEA beneficiary country producer may not prepare a valid 
declaration of compliance covering the articles in the first 
shipment because those articles did not meet the minimum 75 percent 
standard and because those articles cannot be included with the 
articles of the second shipment on the same declaration of 
compliance since they were entered in a different year. However, the 
ATPDEA beneficiary country producer may prepare a valid declaration 
of compliance covering the articles in the second shipment because 
those articles did meet the requisite 85 percent standard which 
would apply for purposes of entry of articles in the following year.
    Example 7. A producer in the second year begins production of 
articles exclusively for the U.S. market that meet the production 
standards specified in Sec.  10.243(a)(4), but the entered articles 
do not meet the requisite 85 percent standard until the third year. 
The producer's articles may not receive preferential treatment 
during the second year because there was no production (and thus 
there were no entered articles) in the immediately preceding (that 
is, first) year on which to assess compliance with the 75 percent 
standard. The producer's articles also may not receive preferential 
treatment during the third year because the 85 percent standard was 
not met in the immediately preceding (that is, second) year. 
However, the producer's articles are eligible for preferential 
treatment during the fourth year based on

[[Page 44582]]

compliance with the 85 percent standard in the immediately preceding 
(that is, third) year.
    Example 8. An entity controlling production (Entity A) uses five 
ATPDEA beneficiary country producers (Producers 1-5), all of which 
produce only articles that meet the description in Sec.  
10.243(a)(4); Producers 1-4 send all of their production to the 
United States and Producer 5 sends 10 percent of its production to 
the United States and the rest to Europe; Producers 1-3 and Producer 
5 produce only pursuant to contracts with Entity A, but Producer 4 
also operates independently of Entity A by producing for several 
U.S. importers, one of which is an entity controlling production 
(Entity B) that also controls all of the production of articles of 
one other producer (Producer 6) which sends all of its production to 
the United States. A declaration of compliance prepared by Entity A 
must cover all of the articles of Producers 1-3 and the 10 percent 
of articles of Producer 5 that are sent to the United States and 
that portion of the articles of Producer 4 that are produced 
pursuant to the contract with Entity A, because Entity A controls 
the production of those articles. There is no need for Producers 1-3 
and Producer 5 to prepare a declaration of compliance because they 
have no production that is not covered by a declaration of 
compliance prepared by an entity controlling production. A 
declaration of compliance prepared by Producer 4 would cover all of 
its production, that is, articles produced for Entity A, articles 
produced for Entity B, and articles produced independently for other 
U.S. importers; a declaration of compliance prepared by Entity B 
must cover that portion of the production of Producer 4 that it 
controls as well as all of the production of Producer 6 because 
Entity B also controls all of the production of Producer 6. Producer 
6 would not prepare a declaration of compliance because all of its 
production is covered by the declaration of compliance prepared by 
Entity B.

    (c) Documentation--(1) Initial declaration of compliance. In order 
for an importer to comply with the requirement set forth in paragraph 
(b)(1)(iii) of this section, the producer or the entity controlling 
production must have filed with CBP, in accordance with paragraph 
(c)(4) of this section, a declaration of compliance with the applicable 
75 or 85 percent requirement prescribed in paragraph (b)(1)(i) or 
(b)(1)(ii) of this section. After filing of the declaration of 
compliance has been completed, CBP will advise the producer or the 
entity controlling production of the distinct and unique identifier 
assigned to that declaration. The producer or the entity controlling 
production will then be responsible for advising each appropriate U.S. 
importer of that distinct and unique identifier for purposes of 
recording that identifier on the entry summary or warehouse withdrawal. 
In order to provide sufficient time for advising the U.S. importer of 
that distinct and unique identifier prior to the arrival of the 
articles in the United States, the producer or the entity controlling 
production should file the declaration of compliance with CBP at least 
10 calendar days prior to the date of the first shipment of the 
articles to the United States.
    (2) Amended declaration of compliance. If the information on the 
declaration of compliance referred to in paragraph (c)(1) of this 
section is based on an estimate because final year-end information was 
not available at that time and the final data differs from the 
estimate, or if the producer or the entity controlling production has 
reason to believe for any other reason that the declaration of 
compliance that was filed contained erroneous information, within 30 
calendar days after the final year-end information becomes available or 
within 30 calendar days after the date of discovery of the error:
    (i) The producer or the entity controlling production must file 
with the CBP office identified in paragraph (c)(4) of this section an 
amended declaration of compliance containing that final year-end 
information or other corrected information; or
    (ii) If that final year-end information or other corrected 
information demonstrates noncompliance with the applicable 75 or 85 
percent requirement, the producer or the entity controlling production 
must in writing advise both the CBP office identified in paragraph 
(c)(4) of this section and each appropriate U.S. importer of that fact.
    (3) Form and preparation of declaration of compliance--(i) Form. 
The declaration of compliance referred to in paragraph (c)(1) of this 
section may be printed and reproduced locally and must be in the 
following format:

     Andean Trade Promotion and Drug Eradication Act Declaration of
                        Compliance for Brassieres
                    [19 CFR 10.243(a)(4) and 10.248]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
1. Year beginning date: October 1,       Official U.S. CBP Use Only
 ------------------------
    Year ending date: September 30, ---- Assigned number:
     --------------------                 ------------------------
                                         Assignment date:----------------
                                          --------
------------------------------------------------------------------------
2. Identity of preparer (producer or
 entity controlling production):
    Full name and address:               Telephone number: --------------
                                          ----------
                                         Facsimile number: --------------
                                          ----------
                                         Importer identification
                                          number:------------
------------------------------------------------------------------------
3. If the preparer is an entity controlling production, provide the
 following for each producer:
------------------------------------------------------------------------
    Full name and address:               Telephone number: --------------
     ------------------------             ----------
                                         Facsimile number: --------------
                                          ----------
------------------------------------------------------------------------
4. Aggregate cost of fabrics (exclusive of all findings and trimmings)
 formed in the United States that were used in the production of
 brassieres that were entered during the year:
------------------------
------------------------------------------------------------------------
5. Aggregate declared customs value of the fabric (exclusive of all
 findings and trimmings) contained in brassieres that were entered
 during the year:
------------------------
------------------------------------------------------------------------
6. I declare that the aggregate cost of fabric (exclusive of all
 findings and trimmings) formed in the United States was at least 75
 percent (or 85 percent, if applicable under 19 CFR 10.248(b)(1)(ii)) of
 the aggregate declared customs value of the fabric contained in
 brassieres entered during the year.
------------------------------------------------------------------------
7. Authorized signature:---------------- 8. Name and title (print or
 --------                                 type):------------------------
------------------------------------------------------------------------
Date:
------------------------------------------------------------------------


[[Page 44583]]

    (ii) Preparation. The following rules will apply for purposes of 
completing the declaration of compliance set forth in paragraph 
(c)(3)(i) of this section:
    (A) In block 1, fill in the year commencing October 1 and ending 
September 30 of the calendar year during which the applicable 75 or 85 
percent standard specified in paragraph (b)(1)(i) or paragraph 
(b)(1)(ii) of this section was met;
    (B) Block 2 should state the legal name and address (including 
country) of the preparer and should also include the preparer's 
importer identification number (see Sec.  24.5 of this chapter), if the 
preparer has one;
    (C) Block 3 should state the legal name and address (including 
country) of the ATPDEA beneficiary country producer if that producer is 
not already identified in block 2. If there is more than one producer, 
attach a list stating the legal name and address (including country) of 
all additional producers;
    (D) Blocks 4 and 5 apply only to articles that were entered during 
the year identified in block 1; and
    (E) In block 7, the signature must be that of an authorized 
officer, employee, agent or other person having knowledge of the 
relevant facts and the date must be the date on which the declaration 
of compliance was completed and signed.
    (4) Filing of declaration of compliance. The declaration of 
compliance referred to in paragraph (c)(1) of this section:
    (i) Must be completed either in the English language or in the 
language of the country in which the articles covered by the 
declaration were produced. If the declaration is completed in a 
language other than English, the producer or the entity controlling 
production must provide to CBP upon request a written English 
translation of the declaration; and
    (ii) Must be filed with the New York Strategic Trade Center, 
Customs and Border Protection, 1 Penn Plaza, New York, New York 10119.
    (d) Verification of declaration of compliance--(1) Verification 
procedure. A declaration of compliance filed under this section will be 
subject to whatever verification CBP deems necessary. In the event that 
CBP for any reason is prevented from verifying the statements made on a 
declaration of compliance, CBP may deny any claim for preferential 
treatment made under Sec.  10.245 that is based on that declaration. A 
verification of a declaration of compliance may involve, but need not 
be limited to, a review of:
    (i) All records required to be made, kept, and made available to 
CBP by the importer, the producer, the entity controlling production, 
or any other person under part 163 of this chapter;
    (ii) Documentation and other information regarding all articles 
that meet the production standards specified in Sec.  10.243(a)(4) that 
were exported to the United States and that were entered during the 
year in question, whether or not a claim for preferential treatment was 
made under Sec.  10.245. Those records and other information include, 
but are not limited to, work orders and other production records, 
purchase orders, invoices, bills of lading and other shipping 
documents;
    (iii) Evidence to document the cost of fabrics formed in the United 
States that were used in the production of the articles in question, 
such as purchase orders, invoices, bills of lading and other shipping 
documents, and customs import and clearance documents, work orders and 
other production records, and inventory control records;
    (iv) Evidence to document the cost or value of all fabric other 
than fabrics formed in the United States that were used in the 
production of the articles in question, such as purchase orders, 
invoices, bills of lading and other shipping documents, and customs 
import and clearance documents, work orders and other production 
records, and inventory control records; and
    (v) Accounting books and documents to verify the records and 
information referred to in paragraphs (d)(1)(ii) through (d)(1)(iv) of 
this section. The verification of purchase orders, invoices and bills 
of lading will be accomplished through the review of a distinct audit 
trail. The audit trail documents must consist of a cash disbursement or 
purchase journal or equivalent records to establish the purchase of the 
fabric. The headings in each of these journals or other records must 
contain the date, vendor name, and amount paid for the fabric. The 
verification of production records and work orders will be accomplished 
through analysis of the inventory records of the producer or entity 
controlling production. The inventory records must reflect the 
production of the finished article which must be referenced to the 
original purchase order or lot number covering the fabric used in 
production. In the inventory production records, the inventory should 
show the opening balance of the inventory plus the purchases made 
during the accounting period and the inventory closing balance.
    (2) Notice of determination. If, based on a verification of a 
declaration of compliance filed under this section, CBP determines that 
the applicable 75 or 85 percent standard specified in paragraph 
(b)(1)(i) or paragraph (b)(1)(ii) of this section was not met, CBP will 
publish a notice of that determination in the Federal Register.

0
3. Section 10.252 is amended by revising the definition of the term 
``United States vessel'' to read as follows:


Sec.  10.252  Definitions.

* * * * *
    United States vessel. ``United States vessel'' means either: a 
vessel having a certificate of documentation with a fishery endorsement 
under chapter 121 of title 46 of the United States Code; or a vessel 
that is documented under the laws of the United States and for which a 
license has been issued pursuant to section 9 of the South Pacific Tuna 
Act of 1988.

0
4. Section 10.254 is revised to read as follows:


Sec.  10.254  Certificate of Origin.

    A Certificate of Origin as specified in Sec.  10.256 must be 
employed to certify that an article described in Sec.  10.253(a) being 
exported from an ATPDEA beneficiary country to the United States 
qualifies for the preferential treatment referred to in Sec.  10.251. 
The Certificate of Origin must be prepared in the ATPDEA beneficiary 
country by the producer or exporter or by the producer's or exporter's 
authorized agent. If the person preparing the Certificate of Origin is 
not the producer of the article, the person may complete and sign a 
Certificate on the basis of:
    (a) The person's reasonable reliance on the producer's written 
representation that the article qualifies for preferential treatment; 
or
    (b) A completed and signed Certificate of Origin for the article 
voluntarily provided to the person by the producer.

0
5. Paragraph (b)(2) of Sec.  10.256 is revised to read as follows:


Sec.  10.256  Maintenance of records and submission of Certificate by 
importer.

* * * * *
    (b) * * *
    (2) Must be signed by the producer or exporter or by the producer's 
or exporter's authorized agent having knowledge of the relevant facts;
* * * * *

PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS

0
1. 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.


[[Page 44584]]



0
2. Section 178.2 is amended by adding a new listing in the table in 
appropriate numerical order to read as follows:

------------------------------------------------------------------------
                                                           OMB  control
         19 CFR section                Description              No.
------------------------------------------------------------------------
 
                              * * * * * * *
Sec.  Sec.   10.244, 10.245,     Claim for duty-free           1651-0091
 10.246, 10.248, 10.254,          entry entry of
 10.255, and 10.256.              eligible articles
                                  under the Andean Trade
                                  Promotion and Drug
                                  Eradication Act.
 
                              * * * * * * *
------------------------------------------------------------------------


Jayson P. Ahern,
Acting Commissioner, Bureau of Customs and Border Protection.
    Approved: August 2, 2006.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 06-6741 Filed 8-4-06; 8:45 am]
BILLING CODE 9111-14-P