Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Rules and Regulations 34365 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

(3) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

Examining the AD Docket 

You may examine the AD docket that 

contains the AD, the regulatory 

evaluation, any comments received, and 

other information on the Internet at 

http://dms.dot.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The 

Docket Office (telephone (800) 647–

5227) is located at the street address 

stated in the ADDRESSES section. 

Comments will be available in the AD 

docket shortly after receipt. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Safety. 

Adoption of the Amendment 

■ Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

2007–13–11 Eclipse Aviation Corporation: 

Amendment 39–15115; Docket No. 

FAA–2007–28432; Directorate Identifier 

2007–CE–056–AD. 

Effective Date 

(a) This AD becomes effective on June 27, 

2007. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Model EA500 

airplanes, serial numbers 000001 and up, that 

are certificated in any category. 

Unsafe Condition 

(d) This AD is being issued because of 

three instances of loss of primary airspeed 

indication due to freezing condensation 

within the pitot system. The loss of air 

pressure in the pitot system could cause the 

stall warning to become unreliable and the 

stick pusher, overspeed warning, and 

autopilot to not function. The concern is 

heightened by the aerodynamic 

characteristics of the Eclipse Model EA500 

airplane, which relies on the stall warning 

and the stick pusher to alert the pilot prior 

to the loss of aircraft control. The standby 

airspeed is reliable and not affected by this 

failure mode. A temporary AFM revision 

prohibits operation in instrument 

meteorological conditions (IMC), requires 

two pilots, and limits the airspeed and 

altitude envelope if the event occurs in flight. 

The AFM limitations and FAA operational 

rules allow Model EA500 flight crews to file 

an instrument flight rule (IFR) flight plan 

even though the airplane is not approved for 

flight in IMC. This potentially causes an 

undue workload burden and confusion on 

the controller workforce when the pilot has 

to refuse any instructions that take them into 

IMC. We are issuing this AD to prevent an 

unsafe condition when Air Traffic Control’s 

(ATC’s) ability to maintain traffic separation 

is compromised because an airplane on an 

IFR flight plan cannot accept a flight plan 

into IMC. 

Compliance 

(e) To address this problem, before further 

flight after June 27, 2007 (the effective date 

of this AD), incorporate the following into 

the Limitations section of the AFM, unless 

already done: 

‘‘—Operate Only in Day Visual Flight Rules 

(VFR); 

—File Only a VFR Flight Plan; and 

—Operate with Two Pilots at All Times.’’

(1) The owner/operator holding at least a 

private pilot certificate as authorized by 

section 43.7 of the Federal Aviation 

Regulations (14 CFR 43.7) may insert the 

information into the AFM as specified in 

paragraph (e) of this AD. 

(2) You may insert a copy of this AD into 

the Limitations section of the AFM to comply 

with this action. 

(3) Make an entry into the aircraft records 

showing compliance with portion of the AD 

in accordance with section 43.9 of the 

Federal Aviation Regulations (14 CFR 43.9). 

Alternative Methods of Compliance 

(AMOCs) 

(f) The Manager, Fort Worth Airplane 

Certification Office, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

Send information to ATTN: Al Wilson, Flight 

Test Pilot, 2601 Meacham Blvd., Fort Worth, 

Texas 76137–4298; telephone: (817) 222–

5146; fax: (817) 222–5960. Before using any 

approved AMOC on any airplane to which 

the AMOC applies, notify your appropriate 

principal inspector (PI) in the FAA Flight 

Standards District Office (FSDO), or lacking 

a PI, your local FSDO. 

Issued in Kansas City, Missouri, on June 

14, 2007. 

Kim Smith, 

Manager, Small Airplane Directorate, Aircraft 

Certification Service. 

[FR Doc. E7–11933 Filed 6–21–07; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Bureau of Customs and Border 

Protection 

DEPARTMENT OF THE TREASURY 

19 CFR Parts 10, 163, and 178 

[USCBP–2007–0062] 

[CBP Dec. 07–43] 

RIN 1505–AB82 

Haitian Hemispheric Opportunity 

Through Partnership Encouragement 

Act of 2006 

AGENCIES: Bureau of Customs and 

Border Protection, Department of 

Homeland Security; Department of the 

Treasury. 

ACTION: Interim regulations; solicitation 

of comments. 

SUMMARY: This document amends the 

U.S. Customs and Border Protection 

(‘‘CBP’’) regulations on an interim basis 

to implement the duty-free provisions of 

the Haitian Hemispheric Opportunity 

through Partnership Encouragement 

(‘‘HOPE’’) Act of 2006. 

DATES: Interim rule effective June 22, 

2007; Comments must be received by 

August 21, 2007. 

ADDRESSES: You may submit comments, 

identified by docket number, by one of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments 

via docket number USCBP–2007–0062. 

• Mail: Trade and Commercial 

Regulations Branch, Regulations and 

Rulings, U.S. Customs and Border 

Protection, 1300 Pennsylvania Avenue, 

NW. (Mint Annex), Washington, DC 

20229. 

Instructions: All submissions received 

must include the agency name and 

docket number for this rulemaking. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal information provided. For 

detailed instructions on submitting 

comments and additional information 

on the rulemaking process, see the 

‘‘Public Participation’’ heading of the 


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34366 Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Rules and Regulations 

SUPPLEMENTARY INFORMATION section of 

this document. 

Docket: For access to the docket to 

read background documents or 

comments received, go to http:// 

www.regulations.gov. Submitted 

comments may also be inspected during 

regular business days between the hours 

of 9 a.m. and 4:30 p.m. at the Trade and 

Commercial Regulations Branch, 

Regulations and Rulings, U.S. Customs 

and Border Protection, 799 9th Street, 

NW., 5th Floor, Washington, DC. 

Arrangements to inspect submitted 

comments should be made in advance 

by calling Mr. Joseph Clark at (202) 572–

8768. 

FOR FURTHER INFORMATION CONTACT:

Textile Operational Aspects: Robert 

Abels, Office of International Trade, 

(202) 344–1959. Non-textile Operational 

Aspects: Lori Whitehurst, Office of 

International Trade, (202) 344–2722. 

Legal Aspects: Cynthia Reese, Office 

of International Trade, (202) 572–8812, 

or Alexandra Kalb, Office of 

International Trade, (202) 572–8791. 

SUPPLEMENTARY INFORMATION:

Public Participation 

Interested persons are invited to 

participate in this rulemaking by 

submitting written data, views, or 

arguments on all aspects of the interim 

rule. CBP also invites comments that 

relate to the economic, environmental, 

or federalism effects that might result 

from this interim rule. Comments that 

will provide the most assistance to CBP 

in developing these regulations will 

reference a specific portion of the 

interim rule, explain the reason for any 

recommended change, and include data, 

information, or authority that supports 

such recommended change. See 

ADDRESSES above for information on 

how to submit comments. 

Background 

On December 20, 2006, the President 

signed into law the Tax Relief and 

Health Care Act of 2006 (‘‘the Act’’), 

Public Law 109–432, 120 Stat. 2922. 

Title V of the Act concerns the 

extension of certain trade benefits to 

Haiti and is referred to in the Act as the 

‘‘Haitian Hemispheric Opportunity 

through Partnership Encouragement Act 

of 2006’’ (the ‘‘HOPE Act’’). 

Section 5002 of the Act amended the 

Caribbean Basin Economic Recovery Act 

(the CBERA, also referred to the 

Caribbean Basin Initiative, or CBI, 

statute codified at 19 U.S.C. 2701–2707) 

by adding a new § 213A, entitled 

‘‘Special Rules for Haiti’’ and codified at 

19 U.S.C. 2703A, to authorize the 

President to extend additional trade 

benefits to Haiti for a five-year period 

(ending on December 19, 2011) if the 

President determines that the country 

meets certain specified eligibility 

conditions and requirements. New 

§ 213A of the CBERA consists of six 

principal subsections, each of which is 

summarized below. 

Subsection (a) of § 213A of the CBERA 

sets forth definitions of several terms 

used in § 213A, including ‘‘applicable 

one-year period,’’ which is used in 

connection with apparel articles 

described in paragraph (b)(2) of § 213A, 

and ‘‘enter; entry’’. 

Subsection (b) of § 213A specifies the 

conditions and requirements that must 

be met for certain apparel articles from 

Haiti to receive duty-free treatment. The 

apparel articles that may receive dutyfree treatment under this subsection if 

they are imported directly from Haiti are 

as follows: 

1. Apparel articles of a producer or 

entity controlling production that are 

wholly assembled or knit-to-shape in 

Haiti from any combination of fabrics, 

fabric components, components knit-toshape, and yarns, provided a specified 

value-content requirement is met during 

an applicable one-year period, either on 

the basis of individual entries or an 

annual aggregation calculation, and 

subject to the application of annual 

quantitative limits expressed in square 

meter equivalents for each of the five 

applicable one-year periods [paragraphs 

(1) and (2) of subsection (b)]; 

2. Apparel articles classifiable in 

Chapter 62 of the Harmonized Tariff 

Schedule of the United States 

(‘‘HTSUS’’) (certain woven apparel 

articles), other than articles classifiable 

in subheading 6212.10 of the HTSUS 

(brassieres), as in effect on December 20, 

2006, that are wholly assembled or knitto-shape in Haiti but do not qualify for 

duty-free treatment under paragraphs (1) 

and (2) of subsection (b) because they 

fail to meet the applicable value-content 

requirement, with duty-free treatment 

for such articles ending on December 

19, 2009, and subject to the application 

of annual quantitative limits in addition 

to the quantitative limits that apply to 

apparel articles under paragraphs (1) 

and (2) of subsection (b) [paragraph (4) 

of subsection (b)]; and 

3. Articles classifiable in heading 

6212.10 of the HTSUS (brassieres) that 

are both cut and sewn or otherwise 

assembled in Haiti or the United States, 

or both, without regard to the source of 

the fabric or components from which 

the articles are made, subject to the 

application of the quantitative limits 

that apply to apparel articles under 

paragraphs (1) and (2) of subsection (b) 

[paragraph (5) of subsection (b)]. 

Paragraph (3) of subsection (b) sets 

forth the quantitative limits that apply 

during each of the five applicable oneyear periods with respect to apparel 

articles of a producer or entity 

controlling production under 

paragraphs (1) and (2) of subsection (b). 

Subsection (c) of § 213A of the CBERA 

provides for the duty-free treatment of 

any article classifiable in subheading 

8544.30.00 of the HTSUS (wiring sets), 

as in effect on December 20, 2006, that 

is the product or manufacture of Haiti 

and is imported directly from Haiti into 

the customs territory of the United 

States, provided a specified valuecontent requirement is met. 

Subsection (d) of new § 213A sets 

forth certain eligibility requirements 

that Haiti must meet as a prerequisite 

for articles to receive duty-free 

treatment under this section. This 

subsection requires that the President 

determine whether Haiti meets these 

requirements within 90 days after the 

date of enactment of the HOPE Act (or 

by March 20, 2007). 

Subsection (e) of § 213A provides that 

preferential tariff treatment for apparel 

articles under this section shall not 

apply unless the President certifies to 

Congress that Haiti is meeting certain 

conditions, such as the adoption of an 

effective visa system, that are primarily 

intended to avoid illegal transshipment 

situations. 

Subsection (f) of § 213A provides that 

the President shall issue regulations to 

carry out this section not later than 180 

days after the date of enactment of the 

HOPE Act. As the HOPE Act was signed 

on December 20, 2006, implementing 

regulations are due by June 20, 2007. 

Section 213A(f) further provides that the 

President shall consult with the 

Committee on Ways and Means of the 

House of Representatives and the 

Committee on Finance of the Senate in 

preparing such regulations. CBP has 

consulted with the Committee on Ways 

and Means and the Committee on 

Finance regarding these implementing 

regulations. 

On March 19, 2007, the President 

signed Proclamation 8114 to implement 

the provisions of the HOPE Act, among 

other purposes. The Proclamation, 

which was published in the Federal 

Register on March 22, 2007 (72 FR 

13655), included determinations by the 

President that Haiti (1) Meets the 

eligibility requirements set forth in 

§ 213A(d) of the CBERA and (2) is 

meeting the conditions set forth in 

§ 213A(e). The Proclamation also 

modified subchapter XX of Chapter 98 

of the Harmonized Tariff Schedule of 

the United States (‘‘HTSUS’’) as set forth 

in Annex 1 to the Proclamation. The 


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Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Rules and Regulations 34367 

modifications to the HTSUS included 

the creation of new subheadings 

encompassing the various articles that 

are eligible for duty-free treatment 

under the HOPE Act. 

The HOPE Act provisions that require 

implementation through regulation 

include subsections (a) through (c) of 

§ 213A of the CBERA. In order to 

provide transparency and facilitate their 

use, the implementing regulations set 

forth in this interim rulemaking have 

been included within new Subpart O in 

Part 10 of the CBP regulations (Title 19 

Code of Federal Regulations). The 

regulatory amendments are discussed 

below in the order in which they appear 

in this document. 

Discussion of Amendments 

Part 10, Subpart O 

Section 10.841 outlines the statutory 

context for Subpart O, Part 10 and is 

self-explanatory. 

Section 10.842 sets forth definitions 

of various terms used in Subpart O, Part 

10. Although certain of the definitions 

in this section are based on definitions 

contained in the HOPE Act, other 

definitions have also been included to 

clarify the application of the regulatory 

texts. Additional definitions that apply 

in a more limited Subpart O, Part 10 

context are set forth elsewhere with the 

substantive provisions to which they 

relate. 

Section 10.843 identifies the articles 

to which duty-free treatment applies 

under new § 213A of the CBERA and 

includes any required production 

standards. 

Section 10.844 sets forth the basic 

conditions and requirements that apply 

for purposes of meeting the applicable 

value-content requirements for apparel 

articles of a producer or entity 

controlling production, as described in 

paragraph (b)(2) of § 213A, and for 

wiring sets, as described in subsection 

(c) of the statute. 

Paragraph (a)(1) of § 10.844, which is 

based on subparagraphs (b)(2)(A) and 

(b)(2)(E)(i) of § 213A, concerns the 

value-content requirement for apparel 

articles, as described in paragraph (b)(2) 

of § 213A, of a producer or entity 

controlling production. Paragraph (a)(1) 

specifies that, except as provided in 

§ 10.844(a)(2), individual entries of 

apparel articles will be eligible for dutyfree treatment only if those meet the 

applicable value-content percentage for 

that year. The applicable percentage is 

50 percent for each of the first three 

applicable one-year periods (December 

20, 2006, through December 19, 2007, 

December 20, 2007, through December 

19, 2008, and December 20, 2008, 

through December 19, 2009), 55 percent 

for the fourth applicable one-year period 

(December 20, 2009, through December 

19, 2010), and 60 percent for the fifth 

applicable one-year period (December 

20, 2010, through December 19, 2011). 

The value-content requirement is based 

upon a comparison between the sum of 

certain material and direct processing 

costs incurred in Haiti and one or more 

eligible countries (as specified in 

§ 10.844(c)) and the declared customs 

value (appraised value) of the article. 

Paragraph (a)(2) of § 10.844, which 

reflects paragraph (b)(2)(D) of § 213A, 

provides that the applicable valuecontent requirement for apparel articles 

of a producer or entity controlling 

production that are entered during an 

applicable one-year period may also be 

met on the basis of an annual 

aggregation calculation (as an 

alternative to meeting this requirement 

on an individual entry basis). Paragraph 

(a)(2) also reflects the statute’s 

requirement that certain entries of 

apparel articles be excluded from the 

annual aggregation calculation, unless, 

in certain instances, the producer or 

entity controlling production elects to 

include those entries. 

Paragraph (a)(3) of § 10.844 provides 

that the annual aggregation method 

elected to be used by a producer or 

entity controlling production for 

purposes of meeting the applicable 

value-content requirement must be 

consistently applied to all apparel 

articles of that producer or entity 

controlling production that are certified 

as being subject to the aggregation 

method during that applicable one-year 

period. This paragraph further provides 

that in the absence of an election by the 

producer or entity controlling 

production to use the annual 

aggregation method in an applicable 

one-year period, all apparel articles of 

the producer or entity controlling 

production must be entered under the 

individual entry method during that 

applicable one-year period. 

Paragraph (a)(4) of § 10.844, which is 

based in part on paragraph (b)(2)(F)(ii) 

of § 213A, sets forth the circumstances 

under which CBP will deny duty-free 

treatment to apparel articles of a 

producer or entity controlling 

production when the requirements for 

such treatment are not met in an 

applicable one-year period. Paragraph 

(a)(4) also provides for the application 

of an increased value-content 

percentage requirement as a 

consequence of apparel articles of a 

producer or entity controlling 

production for which a duty-free claim 

has been made failing to meet the 

requirements for duty-free treatment in 

an applicable one-year period, or of a 

producer or entity controlling 

production entering into the duty-free 

program after the initial applicable oneyear period and electing to use the 

annual aggregation method. In 

situations in which apparel articles are 

required to meet the increased valuecontent percentage in an applicable oneyear period, paragraph (a)(4) provides 

that the importer of such articles must 

notify CBP that the increased percentage 

has been met by submitting a 

declaration of compliance. 

Paragraph (a)(5) of § 10.844 

implements paragraph (b)(2)(G) of 

§ 213A relating to the inclusion of the 

cost of certain fabrics or yarns in short 

supply in the value-content requirement 

for apparel articles of a producer or 

entity controlling production. 

Paragraph (b) of § 10.844, which is 

derived from paragraph (c) of § 213A, 

sets forth the value-content requirement 

that must be met for wiring sets from 

Haiti to receive duty-free treatment. 

Paragraph (c) of § 10.844 reflects the 

definition of ‘‘countries’’ found in 

paragraph (b)(2)(C) of § 213A, as used in 

the value-content requirements for 

apparel articles of a producer or entity 

controlling production and wiring sets. 

Paragraph (d) of § 10.844 concerns the 

cost or value of materials that may be 

applied toward meeting the valuecontent requirements for apparel articles 

of a producer or entity controlling 

production and for wiring sets (see 

paragraphs (b)(2)(A)(i) and (c)(1)(A) of 

§ 213A). Paragraph (d)(1) defines the 

term ‘‘materials produced in Haiti or 

one or more eligible countries’’, as used 

in the value-content requirement for 

apparel articles of a producer or entity 

controlling production, based upon the 

rules for determining the country of 

origin of apparel articles set forth in 

§ 102.21 of the CBP regulations (19 CFR 

102.21). The same term, as it is used in 

the value-content requirement for 

wiring sets, is defined in paragraph (d) 

in a manner similar to the approach 

taken in § 10.196(a) of CBP’s CBERA 

regulations. 

Paragraph (d)(2) of § 10.844 relates to 

the calculation of the cost or value of 

materials for purposes of the valuecontent requirements for apparel articles 

and wiring sets. Paragraph (d)(2)(i), 

which closely parallels § 10.196(c) of 

CBP’s CBERA regulations, sets forth the 

cost elements to be included in the 

calculation of the cost or value of 

materials. Paragraph (d)(2)(ii), which 

relates only to the value-content 

requirement for apparel articles, 

implements paragraphs (b)(2)(B) and 

(b)(2)(D)(iii) of § 213A, by requiring a 

deduction for the cost or value of any 


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34368 Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Rules and Regulations 

‘‘foreign materials,’’ as defined in 

§ 10.842(h) of these interim regulations 

and paragraph (b)(2)(E)(ii) of § 213A. 

Paragraph (e) of § 10.844 implements 

paragraph (b)(2)(A)(ii) of § 213A by 

defining ‘‘direct costs of processing 

operations’’ as set forth in 19 U.S.C. 

2703(a)(3). 

Section 10.845 reflects paragraph 

(b)(2)(F)(iii) of § 213A relating to the 

requirements and procedures that apply 

for purposes of obtaining retroactive 

application of duty-free treatment for 

apparel articles of a producer or entity 

controlling production that (1) Are 

ineligible for duty-free treatment during 

an applicable one-year period because 

the requirements for such treatment 

were not met during the preceding 

period, and (2) satisfy the increased 

value-content percentage in that 

applicable one-year period. 

Section 10.846 defines the term 

‘‘imported directly’’ based upon the 

manner in which the same term is 

defined in § 10.193 of CBP’s CBERA 

regulations. 

Section 10.847 sets forth the 

procedure for claiming duty-free 

treatment at the time of entry for articles 

eligible for such treatment under the 

HOPE Act. This section also provides 

that if an importer has reason to believe 

that a duty-free claim is incorrect, the 

importer must promptly correct the 

claim and pay any duties owing. 

Section 10.848 provides that an 

importer claiming duty-free treatment 

for apparel articles, as described in 

paragraph (b)(2) of § 213A, that are 

entered in the aggregate during an 

applicable one-year period must submit 

to CBP a declaration of compliance with 

the applicable value-content 

requirement within 30 days following 

the end of the applicable one-year 

period. Section 10.848 also sets forth the 

consequences of failing to comply with 

this requirement, and describes the 

information that the declaration of 

compliance must include. 

Section 10.849 sets forth certain 

importer obligations regarding the 

truthfulness of information and 

documents submitted in support of a 

claim for duty-free treatment under 

Subpart O of Part 10, CBP regulations. 

This section also states that an importer 

who makes a claim for duty-free 

treatment is deemed to have certified 

that the article qualifies for such 

treatment. 

Section 10.850 provides that a claim 

for duty-free treatment under Subpart O 

of Part 10, CBP regulations, will be 

subject to such verification as CBP 

deems necessary. This section also sets 

forth the circumstances under which 

CBP may deny a claim based on the 

results of the verification. Finally, this 

section specifies the types of records, 

documents, and other information that 

CBP may review when verifying the 

statements and information included on 

a declaration of compliance. 

Part 163 

The Appendix to Part 163 of the CBP 

regulations (19 CFR Part 163), which 

sets forth a list of records and 

information required for the entry of 

merchandise (commonly known as the 

(a)(1)(A) list) has been modified to 

include the HOPE Act declaration of 

compliance. 

Part 178 

Part 178 sets forth the control 

numbers assigned to information 

collections of CBP by the Office of 

Management and Budget, pursuant to 

the Paperwork Reduction Act of 1995, 

Pub. L. 104–13. The list contained in 

§ 178.2 is amended to add the 

information collections used by CBP to 

determine eligibility of articles for dutyfree treatment under the HOPE Act. 

Inapplicability of Notice and Delayed 

Effective Date Requirements 

Under § 553 of the Administrative 

Procedure Act (‘‘APA’’) (5 U.S.C. 553), 

agencies amending their regulations 

generally are required to publish a 

notice of proposed rulemaking in the 

Federal Register that solicits public 

comment on the proposed amendments, 

consider public comments in deciding 

on the final content of the final 

amendments, and publish the final 

amendments at least 30 days prior to 

their effective date. However, 

§ 553(b)(B) of the APA provides that 

notice and public procedure are not 

required when an agency for good cause 

finds them impracticable, unnecessary, 

or contrary to the public interest. CBP 

has determined that providing prior 

notice and public procedure for these 

interim regulations would be 

impracticable, unnecessary, and 

contrary to the public interest for the 

reasons explained below. 

Pursuant to Annex 1 of Presidential 

Proclamation 8114 dated March 19, 

2007 (72 FR 13655), the HOPE Act tariff 

benefits became effective for wiring 

units from Haiti that were entered, or 

withdrawn from warehouse for 

consumption, on or after January 4, 

2007, and for certain apparel articles 

from Haiti that were entered, or 

withdrawn from warehouse for 

consumption, on or after March 20, 

2007. An important function of these 

regulations is to assist importers in 

determining whether their merchandise 

satisfies the applicable production 

standards and complex value-content 

requirements that must be met to qualify 

for preferential tariff treatment under 

the HOPE Act. Given the Act’s 

complicated statutory scheme, this 

rulemaking assists in clarifying the 

applicable rules by providing 

definitions of numerous terms that are 

not defined in the statute and by 

providing illustrative examples 

regarding certain of these rules. In 

addition, these amendments set forth 

the procedures that must be followed by 

importers to claim the benefits of tariff 

preference under the HOPE Act, 

including the specific information that 

must be submitted in connection with 

those claims, to ensure the timely and 

accurate processing of their claims by 

CBP as well as to protect the revenue 

against false claims. The interim 

regulations also inform importers of the 

types of records and information that 

may be the subject of a CBP verification. 

As previously stated in the 

Background portion of this document, 

subsection (f) of § 213A of the CBERA 

(as added by § 5002 of the Act) provides 

that the President shall issue regulations 

to carry out this section not later than 

180 days after the date of enactment of 

the HOPE Act (December 20, 2006). The 

good cause exception set forth in 

§ 553(b)(B) of the APA applies when 

there is a statutorily imposed deadline 

combined with other relevant factors 

such as a complicated statutory scheme 

or a compelling need for rapid 

implementation of the regulation. In this 

case the statutorily imposed 180 day 

deadline in the HOPE Act, coupled with 

the complex statutory framework, 

constitute a recognized basis to invoke 

the good cause exception. In addition, 

CBP is soliciting comments in this 

interim rule and will consider all 

comments it receives before issuing a 

final rule. 

Finally, §§ 553(d)(3) of the APA 

permit agencies to make a rule effective 

less than 30 days after publication if the 

rule grants or recognizes an exemption 

or relieves a restriction, or when the 

agency finds that good cause exists for 

dispensing with a delayed effective 

date. As these regulations implement 

the tariff preference provisions of the 

HOPE Act and thus grant an exemption 

from normal duty rates for qualifying 

articles, a delayed effective date is not 

required. Moreover, pursuant to 

§ 553(d)(3) of the APA, for the reasons 

described above, CBP finds that good 

cause exists to make these regulations 

effective without a delayed effective 

date. 


rfrederick on PROD1PC67 with RULES
Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Rules and Regulations 34369 

Executive Order 12866 and Regulatory 

Flexibility Act 

This document does not meet the 

criteria for a ‘‘significant regulatory 

action’’ as specified in Executive Order 

12866 of September 30, 1993 (58 FR 

51735, October 1993). In addition, 

because a notice of proposed 

rulemaking is not required under 

section 553(b) of the APA for the 

reasons described above, CBP notes that 

the provisions of the Regulatory 

Flexibility Act, as amended (5 U.S.C. 

601 et seq.), do not apply to this 

rulemaking. Accordingly, CBP also 

notes that this interim rule is not subject 

to the regulatory analysis requirements 

or other requirements of 5 U.S.C. 603 

and 604. 

Paperwork Reduction Act 

These regulations are being issued 

without prior notice and public 

procedure pursuant to the APA, as 

described above. For this reason, the 

collections of information contained in 

these regulations have been reviewed 

and, pending receipt and evaluation of 

public comments, 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 1651–0129. 

The collections of information in 

these regulations are in § 10.847 (claim 

for duty-free treatment) and 

§§ 10.844(a)(4)(v) and 10.848 

(declaration of compliance). This 

information is required in connection 

with certain claims for duty-free 

treatment under the HOPE Act and will 

be used by CBP to determine eligibility 

for preferential tariff treatment under 

that Act. The likely respondents are 

business organizations including 

importers, exporters and manufacturers. 

Estimated total annual reporting 

burden: 1,333 hours. 

Estimated average annual burden per 

respondent: 39.2 hours. 

Estimated number of respondents: 34. 

Estimated annual frequency of 

responses: 117.6. 

Comments concerning the collections 

of information and the accuracy of the 

estimated annual burden, and 

suggestions for reducing that burden, 

should be directed to the Office of 

Management and Budget, Attention: 

Desk Officer for the Department of the 

Treasury, Office of Information and 

Regulatory Affairs, Washington, DC 

20503. A copy should also be sent to the 

Trade and Commercial Regulations 

Branch, Regulations and Rulings, U.S. 

Customs and Border Protection, 1300 

Pennsylvania Avenue, NW. (Mint 

Annex), Washington, DC 20229. 

Signing Authority 

This document is being issued in 

accordance with § 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 related to certain 

customs revenue functions. 

List of Subjects 

19 CFR Part 10 

Customs duties and inspection, 

Imports, Preference programs, Reporting 

and recordkeeping requirements. 

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, Reporting and recordkeeping 

requirements. 

Amendments to the Regulations 

■ Accordingly, chapter I of title 19, 

Code of Federal Regulations (19 CFR 

chapter I), is amended as set forth 

below. 

PART 10—ARTICLES CONDITIONALLY 

FREE, SUBJECT TO A REDUCED 

RATE, ETC. 

■ 1. The general authority citation for 

Part 10 continues to read, and the 

specific authority for new Subpart O is 

added, to read as follows: 

Authority: 19 U.S.C. 66, 1202 (General 

Note 3(i), Harmonized Tariff Schedule of the 

United States), 1321, 1481, 1484, 1498, 1508, 

1623, 1624, 3314; 

* * * * * 

Sections 10.841 through 10.850 also issued 

under 19 U.S.C. 2703A. 

■ 2. Subparts K through N to part 10 are 

added and reserved. 

Subparts K through N—[Added and 

Reserved] 

■ 3. Part 10, CBP regulations, is 

amended by adding a new Subpart O to 

read as follows: 

Subpart O—Haitian Hemispheric 

Opportunity through Partnership 

Encouragement Act of 2006 

Sec. 

10.841 Applicability. 

10.842 Definitions. 

10.843 Articles eligible for duty-free 

treatment. 

10.844 Value-content requirement. 

10.845 Retroactive application of duty-free 

treatment for certain apparel articles. 

10.846 Imported directly. 

10.847 Filing of claim for duty-free 

treatment. 

10.848 Declaration of compliance. 

10.849 Importer obligations. 

10.850 Verification of claim for duty-free 

treatment. 

Subpart O—Haitian Hemispheric 

Opportunity Through Partnership 

Encouragement Act of 2006 

§ 10.841 Applicability. 

Title V of Public Law 109–432, 

entitled the Haitian Hemispheric 

Opportunity through Partnership 

Encouragement Act of 2006 (HOPE Act), 

amended the Caribbean Basin Economic 

Recovery Act (the CBERA, 19 U.S.C. 

2701–2707) by adding a new section 

213A (19 U.S.C. 2703A) to authorize the 

President to extend additional trade 

benefits to Haiti. Section 213A of the 

CBERA provides for the duty-free 

treatment of certain apparel articles and 

certain wiring sets from Haiti. The 

provisions of this subpart set forth the 

legal requirements and procedures that 

apply for purposes of obtaining dutyfree treatment pursuant to CBERA 

section 213A. 

§ 10.842 Definitions. 

As used in this subpart, the following 

terms have the meanings indicated 

unless either the context in which they 

are used requires a different meaning or 

a different definition is prescribed for a 

particular section of this subpart: 

(a) 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; 

(b) Applicable one-year period. 

‘‘Applicable one-year period’’ means 

each of the following one-year periods: 

(1) Initial applicable one-year period. 

‘‘Initial applicable one-year period’’

means the period beginning on 

December 20, 2006, and ending on 

December 19, 2007; 

(2) Second applicable one-year 

period. ‘‘Second applicable one-year 

period’’ means the period beginning on 

December 20, 2007, and ending on 

December 19, 2008; 

(3) Third applicable one-year period. 

‘‘Third applicable one-year period’’

means the period beginning on 

December 20, 2008, and ending on 

December 19, 2009; 

(4) Fourth applicable one-year period. 

‘‘Fourth applicable one-year period’’

means the period beginning on 

December 20, 2009, and ending on 

December 19, 2010; and 

(5) Fifth applicable one-year period. 

‘‘Fifth applicable one-year period’’

means the period beginning on 


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December 20, 2010, and ending on 

December 19, 2011; 

(c) Customs territory of the United 

States. ‘‘Customs territory of the United 

States’’ means the 50 states, the District 

of Columbia, and Puerto Rico; 

(d) Declared customs value. ‘‘Declared 

customs value’’ means the appraised 

value of an imported article determined 

in accordance with section 402 of the 

Tariff Act of 1930, as amended (19 

U.S.C. 1401a); 

(e) Enter; entry. ‘‘Enter’’ and ‘‘entry’’

refer to the entry, or withdrawal from 

warehouse for consumption, in the 

customs territory of the United States; 

(f) 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 Haiti through a 

contractual relationship or other 

indirect means; 

(g) Fabric component. ‘‘Fabric 

component’’ means a component cut 

from fabric to the shape or form of the 

component as it is used in the apparel 

article; 

(h) Foreign material. ‘‘Foreign 

material’’ means a material not 

produced in Haiti or any eligible 

country described in § 10.844(c); 

(i) HTSUS. ‘‘HTSUS’’ means the 

Harmonized Tariff Schedule of the 

United States; 

(j) Knit-to-shape articles. ‘‘Knit-toshape,’’ when used with reference to 

apparel articles, means any apparel 

article of which 50 percent or more of 

the exterior surface area is formed by 

major parts that have been knitted or 

crocheted directly to the shape used in 

the apparel article, with no 

consideration being given to patch 

pockets, appliques, or the like. Minor 

cutting, trimming, or sewing of those 

major parts will not affect the 

determination of whether an apparel 

article is ‘‘knit-to-shape’’; 

(k) Knit-to-shape components. ‘‘Knitto-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’’; 

(l) Major parts. ‘‘Major parts’’ means 

integral components of an apparel 

article but does not include collars, 

cuffs, waistbands, plackets, pockets, 

linings, paddings, trim, accessories, or 

similar parts or components; 

(m) Producer. ‘‘Producer’’ means an 

individual, corporation, partnership, 

association, or other entity or group that 

exercises direct, daily operational 

control over the production process in 

Haiti; 

(n) Self-start edge. ‘‘Self-start edge,’’

when used with reference to knit-toshape 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; 

(o) Subheading. ‘‘Subheading’’ means 

the first six digits in the tariff 

classification number under the HTSUS; 

(p) Wholly assembled in Haiti. 

‘‘Wholly assembled in Haiti’’ means that 

all of the components of the apparel 

article (including thread, decorative 

embellishments, buttons, zippers, or 

similar components) were joined 

together in Haiti; and 

(q) Wholly the growth, product, or 

manufacture. ‘‘Wholly the growth, 

product, or manufacture,’’ when used 

with reference to Haiti or one or more 

eligible countries described in 

§ 10.844(c) of this subpart, refers both to 

any article which has been entirely 

grown, produced, or manufactured in 

Haiti or one or more eligible countries 

described in § 10.844(c) of this subpart 

and to all materials incorporated in an 

article which have been entirely grown, 

produced, or manufactured in Haiti or 

one or more eligible countries described 

in § 10.844(c) of this subpart. 

§ 10.843 Articles eligible for duty-free 

treatment. 

The duty-free treatment referred to in 

§ 10.841 applies to the following articles 

that are imported directly from Haiti 

into the customs territory of the United 

States: 

(a) Certain apparel articles. Apparel 

articles of a producer or entity 

controlling production that are wholly 

assembled or knit-to-shape in Haiti from 

any combination of fabrics, fabric 

components, components knit-to-shape, 

and yarns, subject to the applicable 

quantitative limits set forth in U.S. Note 

6(g), Subchapter XX, Chapter 98, 

HTSUS, and provided that the 

applicable value-content requirement 

set forth in § 10.844(a) of this subpart is 

met through the use of: 

(1) The individual entry method (see 

§ 10.844(a)(1) of this subpart); or 

(2) The annual aggregation method 

(see § 10.844(a)(2) of this subpart). 

(b) Certain woven apparel articles. 

Apparel articles classifiable in Chapter 

62 of the HTSUS (other than articles 

classifiable in subheading 6212.10 of the 

HTSUS), as in effect on December 20, 

2006, that are wholly assembled or knitto-shape in Haiti from any combination 

of fabrics, fabric components, 

components knit-to-shape, and yarns, 

but do not qualify for duty-free 

treatment under paragraph (a) of this 

section because they fail to meet the 

applicable value-content requirement 

set forth in § 10.844(a) of this subpart, 

subject to the applicable quantitative 

limits set forth in U.S. Note 6(h), 

Subchapter XX, Chapter 98, HTSUS; 

(c) Brassieres. Any article classifiable 

in subheading 6212.10 of the HTSUS, 

that is both cut and sewn or otherwise 

assembled in Haiti or the United States, 

or both, without regard to the source of 

the fabric or components from which 

the article is made, subject to the 

quantitative limits set forth in U.S. Note 

6(g), Subchapter XX, Chapter 98, 

HTSUS; and 

(d) Wiring sets. Any article classifiable 

in subheading 8544.30.00 of the HTSUS, 

as in effect on December 20, 2006, that 

is the product or manufacture of Haiti, 

provided the article satisfies the valuecontent requirement set forth in 

§ 10.844(b) of this subpart. For purposes 

of this paragraph, the term ‘‘product or 

manufacture of Haiti’’ refers to an article 

that is either: 

(1) Wholly the growth, product, or 

manufacture of Haiti; or 

(2) A new or different article of 

commerce that has been grown, 

produced, or manufactured in Haiti; 

§ 10.844 Value-content requirement. 

(a) Certain apparel articles—(1) 

General. Except as provided in 

paragraph (a)(2) of this section, apparel 

articles described in § 10.843(a) of this 

subpart will be eligible for duty-free 

treatment only if, for each entry of such 

articles in the applicable one-year 

period for which a duty-free claim is 

made for such articles under § 10.847(a) 

of this subpart, the sum of the cost or 

value of the materials produced in Haiti 

or one or more eligible countries 

described in paragraph (c) of this 

section, or any combination thereof, 

plus the direct costs of processing 

operations performed in Haiti or one or 

more eligible countries described in 

paragraph (c) of this section, or any 

combination thereof, is not less than (as 

applicable): 

(i) 50 percent or more of the declared 

customs value of the articles entered 

during the initial applicable one-year 

period, the second applicable one-year 

period, and the third applicable oneyear period; 

(ii) 55 percent or more of the declared 

customs value of the articles entered 

during the fourth applicable one-year 

period; and 


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(iii) 60 percent or more of the 

declared customs value of the articles 

entered during the fifth applicable oneyear period. 

(2) Annual aggregation—(i) Initial 

applicable one-year period. In the initial 

applicable one-year period, the 

applicable value-content requirement 

set forth in paragraph (a)(1) of this 

section may also be met for apparel 

articles of a producer or an entity 

controlling production that are entered 

during the initial applicable one-year 

period and for which duty-free 

treatment is claimed under § 10.847(a) 

of this subpart by aggregating the cost or 

value of materials and the direct costs 

of processing operations, as those terms 

are used in paragraph (a)(1) of this 

section, with respect to all apparel 

articles of that producer or entity 

controlling production that are wholly 

assembled or knit-to-shape in Haiti and 

are entered during the initial applicable 

one-year period (except as provided in 

paragraph (a)(2)(iii) of this section). 

(ii) Other applicable one-year periods. 

In each of the second, third, fourth, and 

fifth applicable one-year periods, the 

applicable value-content requirement 

set forth in paragraph (a)(1) of this 

section may also be met for apparel 

articles of a producer or an entity 

controlling production that are entered 

during the applicable one-year period 

and for which duty-free treatment is 

claimed under § 10.847(a) of this 

subpart by aggregating the cost or value 

of materials and the direct costs of 

processing, as those terms are used in 

paragraph (a)(1) of this section, with 

respect to all apparel articles of that 

producer or entity controlling 

production that are wholly assembled or 

knit-to-shape in Haiti and are entered 

during the preceding applicable oneyear period (except as provided in 

paragraph (a)(2)(iii) of this section). 

(iii) Exclusions from annual 

aggregation calculation. (A) The entry of 

a woven apparel article receiving dutyfree treatment under § 10.843(b) of this 

subpart is not to be included in an 

annual aggregation under paragraph 

(a)(2)(i) or (a)(2)(ii) of this section. 

(B) The entry of brassieres receiving 

duty-free treatment under § 10.843(c) is 

not to be included in an annual 

aggregation under paragraph (a)(2)(i) or 

(a)(2)(ii) of this section unless the 

producer or entity controlling 

production elects, at the time the annual 

aggregation calculation is made, to 

include such entry in the aggregation. 

(C) The entry of an apparel article that 

is wholly assembled or knit-to-shape in 

Haiti and that is receiving preferential 

tariff treatment under any provision of 

law other than section 213A of the 

CBERA (19 U.S.C. 2703A) or is subject 

to the rate of duty set forth in the 

‘‘General’’ subcolumn of column 1 of 

the HTSUS is not to be included in an 

annual aggregation under paragraph 

(a)(2)(i) or (a)(2)(ii) of this section unless 

the producer or entity controlling 

production elects, at the time the annual 

aggregation calculation is made, to 

include such entry in the aggregation. 

(3) Election to use the annual 

aggregation method for an applicable 

one-year period. A producer or entity 

controlling production that elects to use 

the annual aggregation method for 

purposes of meeting the applicable 

value-content requirement set forth in 

paragraph (a)(1) of this section during 

an applicable one-year period must 

continue to use that method for all 

apparel articles of that producer or 

entity controlling production that are 

certified as articles described in 

§ 10.843(a) of this subpart during that 

applicable one-year period (see 

§ 10.847(b) of this subpart). Unless a 

producer or entity controlling 

production elects to use the annual 

aggregation method with respect to an 

applicable one-year period, all apparel 

articles of the producer or entity 

controlling production for which dutyfree treatment is claimed under 

§ 10.847(a) of this subpart must be 

entered under the individual entry 

method during that applicable one-year 

period. 

(4) Failure to meet applicable 

requirements.—(i) Initial applicable 

one-year period. If CBP determines that 

apparel articles of a producer or entity 

controlling production that are entered 

as articles described in § 10.843(a) of 

this subpart during the initial applicable 

one-year period have not met the 

requirements of § 10.843(a) of this 

subpart or the applicable value-content 

requirement set forth in paragraph (a)(1) 

of this section, then: 

(A) All apparel articles of the 

producer or entity controlling 

production for which duty-free 

treatment is claimed under § 10.847(a) 

of this subpart that are entered under 

the annual aggregation method during 

that initial applicable one-year period 

will be denied duty-free treatment; 

(B) Those apparel articles of the 

producer or entity controlling 

production for which duty-free 

treatment is claimed under § 10.847(a) 

of this subpart that are entered on an 

individual entry basis and that fail to 

meet the requirements of § 10.843(a)(1) 

of this subpart or the applicable valuecontent requirement set forth in 

paragraph (a)(1) of this section during 

that initial applicable one-year period 

will be denied duty-free treatment. 

However, apparel articles of the 

producer or entity controlling 

production for which duty-free 

treatment is claimed under § 10.847(a) 

of this subpart that are entered on an 

individual entry basis prior to an 

election being made by the producer or 

entity controlling production to use the 

annual aggregation method will be 

considered to have met the applicable 

value-content requirement if that 

requirement is met through application 

of the individual entry method; and 

(C) All apparel articles of the 

producer or entity controlling 

production for which duty-free 

treatment is claimed under § 10.847(a) 

of this subpart, whether entered on an 

individual entry or annual aggregation 

basis, will be not be eligible for dutyfree treatment during the succeeding 

applicable one-year periods until the 

increased percentage in the valuecontent requirement specified in 

paragraph (a)(4)(iii) of this section has 

been met by all the apparel articles of 

that producer or entity controlling 

production that are wholly assembled or 

knit-to-shape in Haiti and are entered 

during the immediately preceding 

applicable one-year period, unless the 

articles qualify for tariff benefits 

pursuant to the provisions of § 10.845 of 

this subpart. 

(ii) Other applicable one-year periods. 

If CBP determines that apparel articles 

of a producer or entity controlling 

production that are entered as articles 

described in § 10.843(a) of this subpart 

during any applicable one-year period 

following the initial applicable one-year 

period have not met the requirements of 

§ 10.843(a) or the applicable valuecontent requirement set forth in 

paragraph (a) of this section, then: 

(A) Those apparel articles of the 

producer or entity controlling 

production for which duty-free 

treatment is claimed under § 10.847(a) 

of this subpart that are entered on an 

individual entry basis and that fail to 

meet the requirements of § 10.843(a)(1) 

or the applicable value-content 

requirement set forth in paragraph (a)(1) 

of this subpart during that applicable 

one-year period will be denied duty-free 

treatment; and 

(B) All apparel articles of the 

producer or entity controlling 

production for which duty-free 

treatment is claimed under § 10.847(a) 

of this subpart, whether entered on an 

individual entry or annual aggregation 

basis, will not be eligible for duty-free 

treatment during the succeeding 

applicable one-year periods until the 

increased percentage in the valuecontent requirement specified in 

paragraph (a)(4)(iii) of this section has 


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been met by all the apparel articles of 

that producer or entity controlling 

production that are wholly assembled or 

knit-to-shape in Haiti and are entered 

during the immediately preceding 

applicable one-year period, unless the 

articles qualify for tariff benefits 

pursuant to the provisions of § 10.845 of 

this subpart. 

(iii) Increased percentage. For apparel 

articles of a producer or entity 

controlling production to meet the 

increased percentage referred to in 

paragraphs (a)(4)(i)(C) and (a)(4)(ii)(B) of 

this section, the sum of the cost or value 

of the materials produced in Haiti or 

one or more eligible countries described 

in paragraph (c) of this section, or any 

combination thereof, plus the direct 

costs of processing operations 

performed in Haiti or one or more 

eligible countries described in 

paragraph (c) of this section, or any 

combination thereof, must not be less 

than the applicable percentage under 

paragraph (a)(1) of this section, plus 10 

percent, of the aggregate declared 

customs value of all apparel articles of 

that producer or entity controlling 

production that are wholly assembled or 

knit-to-shape in Haiti and are entered 

during the immediately preceding 

applicable one-year period. Once the 

increased value-content percentage has 

been met for the articles of a producer 

or entity controlling production that are 

entered during an applicable one-year 

period, the articles of that producer or 

entity controlling production that are 

entered during the next succeeding 

applicable one-year period will be 

subject to the applicable value-content 

percentage specified in paragraph (a)(1) 

of this section. 

(iv) Articles of a new producer or 

entity controlling production. A new 

producer or entity controlling 

production that elects to use the annual 

aggregation method for purposes of 

meeting the applicable value-content 

requirement must first meet the 

increased value-content percentage 

specified in paragraph (a)(4)(iii) of this 

section as a prerequisite to receiving 

duty-free treatment during a succeeding 

applicable one-year period. For 

purposes of this paragraph, a ‘‘new 

producer or entity controlling 

production’’ is a producer or entity 

controlling production that did not 

produce or control production of 

articles that were entered as articles 

described in § 10.843(a) during the 

immediately preceding applicable oneyear period. 

Example 1. A Haitian producer begins 

production of apparel articles that meet the 

description in § 10.843(a) of this subpart 

during the second applicable one-year period 

and elects to use the annual aggregation 

method for each applicable one-year period. 

The producer’s articles entered during the 

second applicable one-year period meet a 

value-content percentage of 55%; articles 

entered during the third applicable one-year 

period meet a value-content percentage of 

65%; and articles entered during the fourth 

applicable one-year period meet a valuecontent percentage of 55%. The producer’s 

articles may not receive duty-free treatment 

during the second applicable one-year period 

because there was no production (and thus 

no entered articles) during the immediately 

preceding period (the initial applicable oneyear period) on which to assess compliance 

with the applicable value-content 

requirement. The producer’s articles also 

may not receive duty-free treatment during 

the third applicable one-year period because 

the increased value-content percentage 

requirement (50% plus 10% = 60%) was not 

met in the immediately preceding period (the 

second applicable one-year period). 

However, the producer’s articles are eligible 

for duty-free treatment during the fourth 

applicable one-year period based on 

compliance with the 60% value-content 

percentage requirement in the immediately 

preceding period (the third applicable oneyear period). The producer’s articles also are 

eligible for duty-free treatment during the 

fifth applicable one-year period based on 

compliance with the 55% value-content 

percentage requirement in the immediately 

preceding period (the fourth applicable oneyear period). 

Example 2. Same facts as in example 1, 

except that the producer elects to use the 

individual entry method for purposes of 

meeting the applicable value-content 

requirement for each applicable one-year 

period. The producer’s articles entered 

during the second applicable one-year period 

are eligible for duty-free treatment because 

these articles meet the requisite 50% valuecontent requirement. The producer’s articles 

also may receive duty-free treatment during 

the third, fourth, and fifth applicable oneyear periods based on compliance with the 

applicable value-content requirements for 

each of those periods set forth in paragraph 

(a)(1) of this section. 

(v) Notification of compliance with 

the increased percentage—(A) General. 

If apparel articles of a producer or entity 

controlling production are required to 

meet the increased value-content 

percentage described in paragraph 

(a)(4)(iii) of this section, either because 

of failure to meet the requirements of 

§ 10.843(a) or the applicable valuecontent requirement set forth in 

paragraph (a) of this section in an 

applicable one-year period, or because 

the producer or entity controlling 

production is a new producer or entity 

controlling production, as defined in 

paragraph (a)(4)(iv) of this section, that 

elects to use the annual aggregation 

method, the importer of such articles 

must notify CBP that the increased 

percentage has been met in an 

applicable one-year period by 

submitting to CBP the declaration of 

compliance described in § 10.848 of this 

subpart within 30 days following the 

end of the applicable one-year period. 

An importer that is required to submit 

a declaration of compliance under this 

paragraph must submit such a 

declaration for each importer of record 

identification number used by that 

importer. A declaration of compliance 

required under this paragraph must be 

sent to the address set forth in 

§ 10.848(a) of this subpart. 

(B) Contents. A declaration of 

compliance required under paragraph 

(a)(4)(v)(A) of this section must include, 

in addition to the information specified 

in § 10.848(c) of this subpart, a 

statement as to whether the increased 

value-content percentage was required 

because the apparel articles failed to 

meet the production standards or the 

applicable value-content requirement or 

because the producer or entity 

controlling production was a new 

producer or entity controlling 

production that elected to use the 

annual aggregation method. 

(C) Effect of noncompliance. If an 

importer fails to submit to CBP the 

declaration of compliance required 

under paragraph (a)(4)(v)(A) of this 

section within 30 days following the 

end of the applicable one-year period 

during which the increased valuecontent percentage was met for apparel 

articles of a producer or entity 

controlling production, CBP may deny 

duty-free treatment to all apparel 

articles, as described in § 10.843(a) of 

this subpart, of that producer or entity 

controlling production that are entered 

by that importer during the next 

succeeding applicable one-year period. 

Additionally, the timely submission of a 

declaration of compliance is a 

prerequisite for a producer or entity 

controlling production to request 

retroactive application of duty-free 

treatment under § 10.845 of this subpart 

for apparel articles that meet the 

increased value-content percentage 

during an applicable one-year period. 

However, the submission of a 

declaration of compliance is not a 

substitute for filing a request for 

liquidation or reliquidation of an entry 

for which retroactive duty-free 

treatment is sought under § 10.845 of 

this subpart. 

(5) Inclusion of the cost of fabrics or 

yarns not available in commercial 

quantities in value-content requirement. 

For purposes of meeting the applicable 

value-content requirement set forth in 

paragraph (a) of this section, either in 

regard to individual entries or entries 

entered in the aggregate, the following 

costs may be included: 


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(i) The cost of fabrics or yarns to the 

extent that apparel articles of such 

fabrics or yarns would be eligible for 

preferential treatment, without regard to 

the source of the fabrics or yarns, under 

Annex 401 of the NAFTA; and 

(ii) The cost of fabrics or yarns 

(without regard to their source) that are 

designated as not being available in 

commercial quantities for purposes of: 

(A) Section 213(b)(2)(A)(v) of the 

CBERA (19 U.S.C. 2703(b)(2)(A)(v)); 

(B) Section 112(b)(5) of the African 

Growth and Opportunity Act (19 U.S.C. 

3721(b)(5)); 

(C) Section 204(b)(3)(B)(i)(III) or 

204(b)(3)(B)(ii) of the Andean Trade 

Preference Act (19 U.S.C. 

3203(b)(3)(B)(i)(III) or 3203(b)(3)(B)(ii)); 

or 

(D) Any other provision, relating to 

determining whether a textile or apparel 

article is an originating good eligible for 

preferential treatment, of a law that 

implements a free trade agreement that 

enters into force under the Bipartisan 

Trade Promotion Authority Act of 2002. 

(b) Wiring sets. An article described in 

§ 10.843(d) of this subpart will be 

eligible for duty-free treatment during 

the five-year period ending on 

December 19, 2011, only if the sum of 

the cost or value of the materials 

produced in Haiti or one or more 

eligible countries described in 

paragraph (c) of this section, or any 

combination thereof, plus the direct 

costs of processing operations 

performed in Haiti or the United States, 

or both, is not less than 50 percent of 

the declared customs value of the 

article. 

(c) Eligible countries described. As 

used in this section, the term ‘‘eligible 

countries’’ includes: 

(1) The United States; 

(2) Israel, Canada, Mexico, Jordan, 

Singapore, Chile, Australia, Morocco, 

Bahrain, El Salvador, Honduras, 

Nicaragua, Guatemala, Dominican 

Republic, and any other country that is 

a party to a free trade agreement with 

the United States that is in effect on 

December 20, 2006, or that enters into 

force under the Bipartisan Trade 

Promotion Authority Act of 2002 (19 

U.S.C. 3801 et seq.); and 

(3) The designated beneficiary 

countries listed in General Notes 11 

(Andean Trade Preference Act), 16 

(African Growth and Opportunity Act), 

and 17 (Caribbean Basin Trade 

Partnership Act) of the HTSUS. 

(d) Cost or value of materials—(1) 

Materials produced in Haiti or one or 

more eligible countries described in 

paragraph (c) of this section defined—

(i) Certain apparel articles. As used in 

paragraph (a) of this section, the words 

‘‘materials produced in Haiti or one or 

more eligible countries described in 

paragraph (c) of this section’’ refer to 

those materials incorporated into an 

article that are either: 

(A) Wholly obtained or produced, 

within the meaning of § 102.1(g) of this 

chapter, in Haiti or one or more eligible 

countries described in paragraph (c) of 

this section; or 

(B) Determined to originate in Haiti or 

one or more eligible countries described 

in paragraph (c) of this section by 

application of the provisions of § 102.21 

of this chapter. 

(ii) Wiring sets. As used in paragraph 

(b) of this section, the words ‘‘materials 

produced in Haiti or one or more 

eligible countries described in 

paragraph (c) of this section’’ refer to 

those materials incorporated into an 

article that are either: 

(A) Wholly the growth, product, or 

manufacture of Haiti or one or more 

eligible countries described in 

paragraph (c) of this section; or 

(B) Substantially transformed in Haiti 

or one or more eligible countries 

described in paragraph (c) of this 

section into a new or different article of 

commerce which is then used in Haiti 

in the production of a new or different 

article of commerce that is imported 

into the United States. 

(2) Determination of cost or value of 

materials—(i) Costs included. (A) For 

purposes of paragraphs (a) and (b) of 

this section, and subject to paragraphs 

(d)(2)(i)(B) and (d)(2)(ii) of this section, 

the cost or value of materials produced 

in Haiti or one or more eligible 

countries described in paragraph (c) of 

this section includes: 

(1) The manufacturer’s actual cost for 

the materials; 

(2) When not included in the 

manufacturer’s actual cost for the 

materials, the freight, insurance, 

packing, and all other costs incurred in 

transporting the materials to the 

manufacturer’s plant; 

(3) The actual cost of waste or 

spoilage, less the value of recoverable 

scrap; and 

(4) Taxes and/or duties imposed on 

the materials by Haiti or one or more 

eligible countries described in 

paragraph (c) of this section, provided 

they are not remitted upon exportation. 

(B) Where a material is provided to 

the manufacturer without charge, or at 

less than fair market value, its cost or 

value will be determined by computing 

the sum of: 

(1) All expenses incurred in the 

growth, production, or manufacture of 

the material, including general 

expenses; 

(2) An amount for profit; and 

(3) Freight, insurance, packing, and 

all other costs incurred in transporting 

the material to the manufacturer’s plant. 

(ii) Costs deducted in regard to certain 

apparel articles. For purposes of 

paragraph (a) of this section, in 

calculating the cost or value of materials 

produced in Haiti or one or more 

eligible countries described in 

paragraph (c) of this section, either in 

regard to individual entries or entries 

entered in the aggregate, deductions are 

to be made for the cost or value of: 

(A) Any foreign materials used in the 

production of the apparel articles in 

Haiti; and 

(B) Any foreign materials used in the 

production of the materials produced in 

Haiti or one or more eligible countries 

described in paragraph (c) of this 

section. 

(e) Direct costs of processing 

operations—(1) Items included. As used 

in paragraphs (a) and (b) of this section, 

the words ‘‘direct costs of processing 

operations’’ mean those costs either 

directly incurred in, or which can be 

reasonably allocated to, the growth, 

production, manufacture, or assembly of 

the specific articles under 

consideration. Such costs include, but 

are not limited to the following, to the 

extent that they are includable in the 

appraised value of the imported articles: 

(i) All actual labor costs involved in 

the growth, production, manufacture, or 

assembly of the specific articles, 

including fringe benefits, on-the-job 

training, and the cost of engineering, 

supervisory, quality control, and similar 

personnel; 

(ii) Dies, molds, tooling, and 

depreciation on machinery and 

equipment which are allocable to the 

specific articles; 

(iii) Research, development, design, 

engineering, and blueprint costs insofar 

as they are allocable to the specific 

articles; and 

(iv) Costs of inspecting and testing the 

specific articles. 

(2) Items not included. The words 

‘‘direct costs of processing operations’’

do not include items that are not 

directly attributable to the articles under 

consideration or are not costs of 

manufacturing the product. These 

include, but are not limited to: 

(i) Profit; and 

(ii) General expenses of doing 

business that either are not allocable to 

the specific articles or are not related to 

the growth, production, manufacture, or 

assembly of the articles, such as 

administrative salaries, casualty and 

liability insurance, advertising, and 

salesmen’s salaries, commissions, or 

expenses. 


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34374 Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Rules and Regulations 

§ 10.845 Retroactive application of dutyfree treatment for certain apparel articles. 

(a) General. Notwithstanding 19 

U.S.C. 1514 or any other provision of 

law, if apparel articles, as described in 

§ 10.843(a) of this subpart, of a producer 

or entity controlling production are 

ineligible for duty-free treatment in an 

applicable one-year period because the 

apparel articles of the producer or entity 

controlling production did not meet the 

requirements of § 10.843(a) of this 

subpart or the applicable value-content 

requirement set forth in § 10.844(a) of 

this subpart, and the apparel articles of 

the producer or entity controlling 

production satisfy the increased valuecontent percentage set forth in 

§ 10.844(a)(4)(iii) of this subpart in that 

same applicable one-year period, the 

entry of any such articles made during 

that applicable one-year period will be 

liquidated or reliquidated free of duty, 

and CBP will refund any customs duties 

paid with respect to such entry, with 

interest accrued from the date of entry, 

provided that the conditions and 

requirements set forth in paragraph (b) 

of this section are met. 

(b) Conditions and requirements. The 

conditions and requirements referred to 

in paragraph (a) of this section are as 

follows: 

(1) The articles in such entry would 

have received duty-free treatment if they 

had satisfied the requirements of 

§ 10.843(a) and the applicable valuecontent requirement set forth in 

§ 10.844(a) of this subpart; 

(2) A declaration of compliance with 

the increased value-content percentage 

is submitted to CBP within 30 days 

following the end of the applicable oneyear period during which the increased 

percentage is met (see § 10.844(a)(4)(v) 

of this subpart); and 

(3) A request for liquidation or 

reliquidation with respect to such entry 

is filed with CBP before the 90th day 

after CBP determines and notifies the 

importer that the apparel articles of the 

producer or entity controlling 

production satisfy the increased valuecontent percentage set forth in 

§ 10.844(a)(4)(iii) of this subpart during 

that applicable one-year period. 

Example. A Haitian producer of articles 

that meet the description in § 10.843(a) of 

this subpart begins exporting those articles to 

the United States during the initial 

applicable one-year period and elects to use 

the annual aggregation method for purposes 

of meeting the applicable value-content 

requirement. The articles entered during that 

initial period meet a value-content 

percentage of 48%, while articles entered 

during the second applicable one-year period 

meet a value-content percentage of 62%. The 

producer’s articles may not receive duty-free 

treatment during the initial applicable oneyear period because the requisite 50% valuecontent requirement was not met. The 

producer’s articles also are ineligible for 

duty-free treatment during the second 

applicable one-year period because the 50% 

value-content requirement was not met in the 

immediately preceding period (the initial 

applicable one-year period). However, 

because the producer’s articles entered 

during the second applicable one-year period 

satisfy the increased value-content 

percentage requirement (60%), the 

importer(s) of these articles may file a request 

for and receive a refund of the duties paid 

with respect to the articles entered during 

that period, assuming compliance with the 

conditions and requirements set forth in 

§ 10.847 of this subpart. In addition, the 

producer’s articles entered during the third 

applicable one-year period are eligible for 

duty-free treatment based on compliance 

with the increased value-content percentage 

in the second applicable one-year period. 

§ 10.846 Imported directly. 

(a) General. To be eligible for dutyfree treatment under this subpart, an 

article must be imported directly from 

Haiti into the customs territory of the 

United States. For purposes of this 

requirement, the words ‘‘imported 

directly’’ mean: 

(1) Direct shipment from Haiti to the 

United States without passing through 

the territory of any intermediate 

country; 

(2) If shipment is from Haiti to the 

United States through the territory of an 

intermediate country, the articles in the 

shipment do not enter into the 

commerce of the intermediate country 

and the invoices, bills of lading, and 

other shipping documents show the 

United States as the final destination; or 

(3) If shipment is through an 

intermediate country and the invoices 

and other documents do not show the 

United States as the final destination, 

the articles in the shipment are 

imported directly only if they: 

(i) Remained under the control of the 

customs authority in the intermediate 

country; 

(ii) Did not enter into the commerce 

of the intermediate country except for 

the purpose of a sale other than at retail, 

provided that the articles are imported 

as a result of the original commercial 

transaction between the importer and 

the producer or the producer’s sales 

agent; and 

(iii) Have not been subjected to 

operations other than loading and 

unloading, and other activities 

necessary to preserve the articles in 

good condition. 

(b) Documentary evidence. An 

importer making a claim for duty-free 

treatment under § 10.847 of this subpart 

may be required to demonstrate, to 

CBP’s satisfaction, that the articles were 

‘‘imported directly’’ as that term is 

defined in paragraph (a) of this section. 

An importer may demonstrate 

compliance with this section by 

submitting documentary evidence. Such 

evidence may include, but is not limited 

to, bills of lading, airway bills, packing 

lists, commercial invoices, receiving 

and inventory records, and customs 

entry and exit documents. 

§ 10.847 Filing of claim for duty-free 

treatment. 

(a) General. An importer may make a 

claim for duty-free treatment for an 

article described in § 10.843 of this 

subpart by including on the entry 

summary, or equivalent documentation, 

the applicable subheading within 

Subchapter XX of Chapter 98 of the 

HTSUS under which the article is 

classified, or by the method specified 

for equivalent reporting via an 

authorized electronic data interchange 

system. The applicable subheadings 

within Subchapter XX, Chapter 98, 

HTSUS, are as follows: 

(1) Subheading 9820.61.25 for apparel 

articles described in § 10.843(a) of this 

subpart for which the individual entry 

method is used for purposes of meeting 

the applicable value-content 

requirement set forth in § 10.844(a) of 

this subpart; 

(2) Subheading 9820.61.30 for apparel 

articles described in § 10.843(a) of this 

subpart for which the annual 

aggregation method is used for purposes 

of meeting the applicable value-content 

requirement set forth in § 10.844(a) of 

this subpart; 

(3) Subheading 9820.62.05 for woven 

apparel articles described in § 10.843(b) 

of this subpart; 

(4) Subheading 9820.62.12 for 

brassieres described in § 10.843(c) of 

this subpart; and 

(5) Subheading 9820.85.44 for wiring 

sets described in § 10.843(d) of this 

subpart. 

(b) Restriction on claims submitted 

under subheading 9820.61.30, HTSUS. 

An importer may make a claim for dutyfree treatment under subheading 

9820.61.30, HTSUS, for apparel articles 

described in § 10.843(a) of this subpart 

for which the annual aggregation 

method is used, only if the importer has 

a copy of a certification by the producer 

or entity controlling production setting 

forth its election to use the annual 

aggregation method for its articles (see 

§ 10.848(c)(3) of this subpart). In the 

absence of receipt of such certification 

from the producer or entity controlling 

production, an importer of articles 

described in § 10.843(a) of this subpart 

for which duty-free treatment is sought 

under this subpart must enter the 


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articles under subheading 9820.61.25, 

HTSUS. 

(c) Corrected claim. If, after making a 

claim for duty-free treatment under 

paragraph (a) of this section, the 

importer has reason to believe that the 

claim is incorrect, the importer must 

promptly make a corrected claim and 

pay any duties that may be due. A 

corrected claim will be effected by 

submission of a letter or other written 

statement to the CBP port where the 

claim was originally filed. 

§ 10.848 Declaration of compliance. 

(a) General. Each importer claiming 

duty-free treatment for apparel articles, 

as described in § 10.843(a) of this 

subpart, of a producer or entity 

controlling production that uses the 

annual aggregation method to satisfy the 

applicable value-content requirement 

set forth in § 10.844(a) of this subpart 

with respect to the entries filed by the 

importer during an applicable one-year 

period must prepare and submit to CBP 

a declaration of compliance with the 

applicable value-content requirement 

within 30 days following the end of the 

applicable one-year period. An importer 

that is required to submit a declaration 

of compliance under this paragraph 

must submit such a declaration for each 

importer of record identification 

number used by that importer. The 

declaration of compliance must be sent 

to: Office of International Trade, 1300 

Pennsylvania Avenue, NW., 

Washington, DC 20229. 

(b) Effect of noncompliance—(1) 

Initial applicable one-year period. If an 

importer fails to submit to CBP the 

declaration of compliance required 

under paragraph (a) of this section 

within 30 days following the end of the 

initial applicable one-year period, CBP 

may deny duty-free treatment to all 

entries of apparel articles, as described 

in § 10.843(a), of that producer or entity 

controlling production that were filed 

by that importer during the initial 

applicable one-year period and that are 

entered by that importer during the next 

succeeding applicable one-year period. 

(2) Other applicable one-year periods. 

If an importer fails to submit to CBP the 

declaration of compliance required by 

paragraph (a) of this section within 30 

days following the end of any applicable 

one-year period (other than the initial 

applicable one-year period), CBP may 

deny duty-free treatment to all entries of 

apparel articles, as described in 

§ 10.843(a) of this subpart, of that 

producer or entity controlling 

production that are entered by that 

importer during the next succeeding 

applicable one-year period. 

(c) Contents. A declaration of 

compliance submitted to CBP under 

paragraph (a) of this section: 

(1) Need not be in a prescribed format 

but must be in writing or must be 

transmitted electronically pursuant to 

any electronic means authorized by CBP 

for that purpose; 

(2) Must include the following 

information: 

(i) The applicable one-year period 

during which the aggregation method 

was used (year beginning December 20, 

20l, year ending December 19, 20l); 

(ii) The legal name, address, 

telephone, fax number, e-mail address 

(if any), and identification number of 

the importer of record, and the legal 

name, telephone, and e-mail address (if 

any) of the point of contact; 

(iii) With respect to each entry for 

which duty-free treatment is claimed for 

apparel articles described in § 10.843(a) 

of this subpart and for which the 

aggregation method is used, the entry 

number, line number(s), port of entry, 

and line value; 

(iv) If the producer or entity 

controlling production elects to include 

in the aggregation calculation entries of 

brassieres receiving duty-free treatment 

under § 10.843(c) of this subpart and 

entries of apparel articles that are 

wholly assembled or knit-to-shape in 

Haiti and that are receiving preferential 

tariff treatment under any provision of 

law other than section 213A of the 

CBERA or are subject to the rate of duty 

in the ‘‘General’’ subcolumn of column 

1 of the HTSUS (see § 10.844(a)(2)(iii)(B) 

and (C) of this subpart), the entry 

number, line number(s), port of entry, 

line value, name and address of the 

producer(s), and, if applicable, name 

and address of the entity controlling 

production; 

(v) The value-content percentage that 

was met during the applicable one-year 

period with respect to each producer or 

entity controlling production; 

(vi) The name and title of the person 

who prepared the declaration of 

compliance. The declaration must be 

prepared and signed by a responsible 

official of the importer or by the 

importer’s authorized agent having 

knowledge of the relevant facts; 

(vii) Signature of the person who 

prepared the declaration of compliance; 

and 

(viii) Date the declaration of 

compliance was prepared and signed; 

and 

(3) Must include as an attachment to 

the declaration a copy of a certification 

from each producer or entity controlling 

production setting forth its election to 

use the annual aggregation method, a 

description of the classes or kinds of 

apparel articles involved, and the name 

and address of each producer or entity 

controlling production. 

§ 10.849 Importer obligations. 

(a) General. An importer who makes 

a claim for duty-free treatment under 

§ 10.847 of this subpart for an article 

described in § 10.843 of this subpart: 

(1) Will be deemed to have certified 

that the article is eligible for duty-free 

treatment under this subpart; 

(2) Is responsible for the truthfulness 

of the statements and information 

contained in the declaration of 

compliance, if that document is 

required to be submitted to CBP 

pursuant to §§ 10.844(a)(4)(v) or 

10.848(a) of this subpart; and 

(3) Is responsible for submitting any 

supporting documents requested by CBP 

and for the truthfulness of the 

information contained in those 

documents. When requested, CBP may 

arrange for the direct submission by the 

exporter, producer, or entity controlling 

production of business confidential or 

other sensitive information, including 

cost and sourcing information. 

(b) Information provided by exporter, 

producer, or entity controlling 

production. The fact that the importer 

has made a claim for duty-free treatment 

or prepared a declaration of compliance 

based on information provided by an 

exporter, producer, or entity controlling 

production will not relieve the importer 

of the responsibility referred to in 

paragraph (a) of this section. 

§ 10.850 Verification of claim for duty-free 

treatment. 

(a) General. A claim for duty-free 

treatment made under § 10.847 of this 

subpart, including any declaration of 

compliance or other information 

submitted to CBP in support of the 

claim, will be subject to whatever 

verification CBP deems necessary. In the 

event that CBP is provided with 

insufficient information to verify or 

substantiate the claim, including the 

statements and information contained in 

a declaration of compliance (if required 

under § 10.844(a)(4)(v) or § 10.848(a) of 

this subpart), CBP may deny the claim 

for duty-free treatment. 

(b) Documentation and information 

subject to verification. A verification of 

a claim for duty-free treatment under 

§ 10.847 of this subpart 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, the producer, the entity 

controlling production, or any other 

person under part 163 of this chapter; 

and 

(2) The documentation and 

information set forth in paragraphs 


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34376 Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Rules and Regulations 

(b)(2)(i) through (b)(2)(v) of this section, 

when requested by CBP. This 

documentation and information may be 

made available to CBP by the importer 

or the importer may arrange to have the 

documentation and information made 

available to CBP directly by the 

exporter, producer, or entity controlling 

production: 

(i) Documentation and other 

information regarding all apparel 

articles that meet the requirements 

specified in § 10.843(a) of this subpart 

that were exported to the United States 

and that were entered during the 

applicable one-year period, whether or 

not a claim for duty-free treatment was 

made under § 10.847 of this subpart. 

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; 

(ii) Records to document the cost of 

all yarn, fabric, fabric components, and 

knit-to-shape components 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; 

(iii) Records to document the direct 

costs of processing operations 

performed in Haiti or one or more 

eligible countries described in 

§ 10.844(c) of this subpart, such as 

direct labor and fringe expenses, 

machinery and tooling costs, factory 

expenses, and testing and inspection 

expenses that were incurred in 

production; 

(iv) Affidavits or statements of origin 

that certify who manufactured the yarn, 

fabric, fabric components and knit-toshape components. The affidavit or 

statement of origin should include a 

product description, name and address 

of the producer, and the date the articles 

were produced. An affidavit for fabric 

components should state whether or not 

subassembly operations occurred; and 

(v) Summary accounting and financial 

records which relate to the source 

records provided for in paragraphs 

(b)(2)(i) through (b)(2)(iii) of this 

section. 

PART 163—RECORDKEEPING 

■ 4. The authority citation for part 163 

continues to read as follows: 

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 

1484, 1508, 1509, 1510, 1624. 

■ 5. The Appendix to part 163 is 

amended by adding a new listing under 

section IV in numerical order to read as 

follows: 

Appendix to Part 163—Interim (a)(1)(A) 

list. 

* * * * * 

IV. * * * 

§ 10.848 HOPE Act Declaration of 

Compliance. 

* * * * * 

PART 178—APPROVAL OF 

INFORMATION COLLECTION 

REQUIREMENTS 

■ 6. 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. 

■ 7. Section 178.2 is amended by adding 

new listings to the table in numerical 

order to read as follows: 

§ 178.2 Listing of OMB control numbers. 

19 CFR section Description OMB control 

No. 

* * * * * * * 

§ 10.847 and 10.848 ................................. Claim for duty-free treatment under the HOPE Act ..................................................... 1651 

* * * * * * * 

Deborah J. Spero, 

Acting Commissioner of Customs, Customs 

and Border Protection. 

Approved: June 20, 2007. 

Timothy E. Skud, 

Deputy Assistant Secretary of the Treasury. 

[FR Doc. 07–3101 Filed 6–20–07; 2:17 pm] 

BILLING CODE 9111–14–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 537 

Burmese Sanctions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Office of Foreign Assets 

Control of the U.S. Department of the 

Treasury (‘‘OFAC’’) is amending the 

Burmese Sanctions Regulations, 31 CFR 

537, to add new § 537.527, which sets 

forth a statement of OFAC licensing 

policy with respect to the issuance of 

specific licenses for the importation of 

Burmese origin animals and specimens, 

in sample quantities only, for bona fide 

scientific research and analysis 

purposes. 

DATES: Effective Date: June 22, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Licensing, tel.: 

202/622–2480, Assistant Director for 

Compliance Outreach & 

Implementation, tel.: 202/622–2490, 

Assistant Director for Policy, tel.: 202/ 

622–4855, Office of Foreign Assets 

Control, or Chief Counsel (Foreign 

Assets Control), tel.: 202/622–2410, 

Office of the General Counsel, 

Department of the Treasury, 

Washington, DC 20220 (not toll free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning the Office of 

Foreign Assets Control are available 

from OFAC’s Web site (http:// 

www.treas.gov/ofac) or via facsimile 

through a 24-hour fax-on demand 

service, tel.: (202) 622–0077. 

Background 

The Office of Foreign Assets Control 

(‘‘OFAC’’) promulgated the Burmese 

Sanctions Regulations, 31 CFR part 537 

(the ‘‘Regulations’’), on May 21, 1998, to 

implement Executive Order 13047 of 

May 20, 1997 (‘‘E.O. 13047’’), in which 

the President declared a national 

emergency with respect to the actions 

and policies of the Government of 

Burma, including the large-scale 

repression of the democratic opposition 

in Burma after September 30, 1996. To 

deal with that emergency, E.O. 13047 

prohibited new investment in Burma by 

U.S. persons. 

On July 28, 2003, the Burmese 

Freedom and Democracy Act of 2003 

(the ‘‘BFDA’’) was signed into law to 

restrict the financial resources of 

Burma’s ruling military junta, the State 


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