Federal Register / Vol. 72, No. 125 / Friday, June 29, 2007 / Rules and Regulations 35647 

Effective Date 

(a) This airworthiness directive (AD) 

becomes effective August 3, 2007. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to EMBRAER Model 

ERJ 170–100 LR, –100 STD, –100 SE, –100 

SU, –200 LR, –200 STD, and –200 SU 

airplanes, as identified in EMBRAER Service 

Bulletin 170–26–0002, dated November 11, 

2005; certificated in any category. 

Reason 

(d) The MCAI states that it has been found 

the occurrence of one case of obstruction at 

the cargo compartment fire extinguisher 

system drier metering unit (DMU) inlet, 

affecting the system effectiveness and, 

consequently, making the fire extinguishing 

capability at those compartments inadequate 

should a fire erupt. The MCAI requires 

installation of a debris strainer at the DMU 

inlet. 

Actions and Compliance 

(e) Unless already done, do the following 

actions. Within 700 flight hours after the 

effective date of this AD, install a debris 

strainer at the DMU inlet, in accordance with 

the detailed instructions and procedures 

described in EMBRAER Service Bulletin 

170–26–0002, dated November 11, 2005. 

FAA AD Differences 

Note: This AD differs from the MCAI and/ 

or service information as follows: No 

Differences. 

Other FAA AD Provisions 

(f) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, 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: Todd Thompson, 

Aerospace Engineer, International Branch, 

ANM–116, FAA, Transport Airplane 

Directorate, 1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone (425) 

227–1175; fax (425) 227–1149. 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. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act, 

the Office of Management and Budget (OMB) 

has approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

Related Information 

(g) Refer to MCAI Brazilian Airworthiness 

Directive 2006–01–03, effective February 7, 

2006; and EMBRAER Service Bulletin 170–

26–0002, dated November 11, 2005; for 

related information. 

Material Incorporated by Reference 

(h) You must use EMBRAER Service 

Bulletin 170–26–0002, dated November 11, 

2005, to do the actions required by this AD, 

unless the AD specifies otherwise. 

(1) The Director of the Federal Register 

approved the incorporation by reference of 

this service information under 5 U.S.C. 

552(a) and 1 CFR part 51. 

(2) For service information identified in 

this AD, contact Empresa Brasileira de 

Aeronautica S.A. (EMBRAER), P.O. Box 

343—CEP 12.225, Sao Jose dos Campos—SP, 

Brazil. 

(3) You may review copies at the FAA, 

Transport Airplane Directorate, 1601 Lind 

Avenue, SW., Renton, Washington; or at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http:// 

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Renton, Washington, on June 18, 

2007. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E7–12221 Filed 6–28–07; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

DEPARTMENT OF THE TREASURY 

19 CFR Parts 10, 162, 163, and 178 

[USCBP–2007–0056; CBP Dec. 07–51] 

RIN 1505–AB76 

United States-Morocco Free Trade 

Agreement 

AGENCIES: U.S. Customs and Border 

Protection, Department of Homeland 

Security; Department of the Treasury. 

ACTION: Interim regulations; solicitation 

of comments. 

SUMMARY: This document amends U.S. 

Customs and Border Protection (‘‘CBP’’) 

regulations on an interim basis to 

implement the preferential tariff 

treatment and other customs-related 

provisions of the United States-Morocco 

Free Trade Agreement entered into by 

the United States and the Kingdom of 

Morocco. 

DATES: Interim rule effective June 29, 

2007; comments must be received by 

August 28, 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–2007–0056. 

• 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 

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. 

Other Operational Aspects: Seth 

Mazze, Office of International Trade, 

(202) 344–2634. 

Audit Aspects: Mark Hanson, 

Regulatory Audit, Office of International 

Trade, (202) 863–6035. 

Legal Aspects: Daniel Cornette, Office 

of International Trade, (202) 572–8731. 

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 

will reference a specific portion of the 

interim rule, explain the reason for any 

recommended change, and include data, 


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35648 Federal Register / Vol. 72, No. 125 / Friday, June 29, 2007 / Rules and Regulations 

information, or authority that supports 

such recommended change. See 

ADDRESSES above for information on 

how to submit comments. 

Background 

On June 15, 2004, the United States 

and the Kingdom of Morocco (the 

‘‘Parties’’) signed the U.S.-Morocco Free 

Trade Agreement (‘‘MFTA’’ or 

‘‘Agreement’’). The stated objectives of 

the MFTA are to: Encourage expansion 

and diversification of trade between the 

Parties; eliminate barriers to trade in, 

and facilitate the cross-border 

movement of, goods and services 

between the territories of the Parties; 

promote conditions of fair competition 

in the free trade area; substantially 

increase investment opportunities in the 

territories of the Parties; provide 

adequate and effective protection and 

enforcement of intellectual property 

rights in each Party’s territory; create 

effective procedures for the 

implementation and application of the 

MFTA, for its joint administration and 

for the resolution of disputes; and 

establish a framework for further 

regional and multilateral cooperation to 

expand and enhance the benefits of the 

MFTA. 

The provisions of the MFTA were 

adopted by the United States with the 

enactment of the United States-Morocco 

Free Trade Agreement Implementation 

Act (the ‘‘Act’’), Pub. L. 108–302, 118 

Stat. 1103 (19 U.S.C. 3805 note), on 

August 17, 2004. Section 205 of the Act 

requires that regulations be prescribed 

as necessary to implement these 

provisions of the MFTA. 

On December 22, 2005, the President 

signed Proclamation 7971 to implement 

the provisions of the MFTA. The 

proclamation, which was published in 

the Federal Register on December 27, 

2005 (70 FR 76649), modified the 

Harmonized Tariff Schedule of the 

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

Annexes I and II of Publication 3721 of 

the U.S. International Trade 

Commission. The modifications to the 

HTSUS included the addition of new 

General Note 27, incorporating the 

relevant MFTA rules of origin as set 

forth in the Act, and the insertion 

throughout the HTSUS of the 

preferential duty rates applicable to 

individual products under the MFTA 

where the special program indicator 

‘‘MA’’ appears in parenthesis in the 

‘‘Special’’ rate of duty subcolumn. The 

modifications to the HTSUS also 

included a new Subchapter XII to 

Chapter 99 to provide for temporary 

tariff rate quotas and applicable 

safeguards implemented by the MFTA. 

U.S. Customs and Border Protection 

(‘‘CBP’’) is responsible for administering 

the provisions of the MFTA and the Act 

that relate to the importation of goods 

into the United States from Morocco. 

Those customs-related MFTA 

provisions that require implementation 

through regulation include certain tariff 

and non-tariff provisions within Chapter 

One (Initial Provisions and Definitions), 

Chapter Two (National Treatment and 

Market Access for Goods), Chapter Four 

(Textiles and Apparel), Chapter Five 

(Rules of Origin), and Chapter Six 

(Customs Administration). 

In Chapter One of the MFTA, certain 

general definitions in Article 1.3 have 

been incorporated into the MFTA 

implementing regulations. These 

regulations also implement Article 2.6 

(Goods Re-entered after Repair or 

Alteration) of Chapter Two of the 

MFTA. 

Chapter Four of the MFTA sets forth 

the measures relating to trade in textile 

and apparel goods between Morocco 

and the United States under the MFTA. 

The provisions within Chapter Four that 

require regulatory action by CBP are 

Article 4.3 (Rules of Origin and Related 

Matters), Article 4.4 (Customs and 

Administrative Cooperation), and 

Article 4.5 (Definitions). 

Chapter Five of the MFTA sets forth 

the rules for determining whether an 

imported good qualifies as an 

originating good of the United States or 

Morocco (MFTA Party) and, as such, is 

therefore eligible for preferential tariff 

(duty-free or reduced duty) treatment as 

specified in the Agreement. Under 

Article 5.1, originating goods may be 

grouped in three broad categories: (1) 

Goods that are wholly the growth, 

product, or manufacture of one or both 

of the Parties; (2) goods (other than 

those covered by the product-specific 

rules set forth in Annex 4–A or Annex 

5–A) that are new or different articles of 

commerce that have been grown, 

produced, or manufactured in the 

territory of one or both of the Parties, 

and that have a minimum value-content, 

i.e., at least 35 percent of the good’s 

appraised value must be attributed to 

the cost or value of materials produced 

in one or both of the Parties plus the 

direct costs of processing operations 

performed in one or both of the Parties; 

and (3) goods that satisfy the productspecific rules set forth in Annex 4–A 

(textile or apparel goods) or Annex 5–

A (certain non-textile or non-apparel 

goods). 

Article 5.2 explains that the term 

‘‘new or different article of commerce’’

means a good that has been 

substantially transformed from a good or 

material that is not wholly the growth, 

product, or manufacture of one or both 

of the Parties and that has a new name, 

character, or use distinct from the good 

or material from which it was 

transformed. Article 5.3 provides that a 

good will not be considered to be a new 

or different article of commerce as the 

result of undergoing simple combining 

or packaging operations, or mere 

dilution with water or another 

substance that does not materially alter 

the characteristics of the good. 

Article 5.4 provides for the 

accumulation of production in the 

territory of one or both of the Parties in 

determining whether a good qualifies as 

originating under the MFTA. Articles 

5.5 and 5.6 set forth the rules for 

calculating the value of materials and 

the direct costs of processing operations, 

respectively, for purposes of 

determining whether a good satisfies the 

35 percent value-content requirement. 

Articles 5.7 through 5.9 consist of 

additional sub-rules applicable to 

originating goods, involving retail 

packaging materials, packing materials 

for shipment, indirect materials, and 

transit and transshipment. In addition, 

Articles 5.10 and 5.11 set forth the 

procedural requirements that apply 

under the MFTA, in particular with 

regard to importer claims for 

preferential tariff treatment. Article 5.14 

provides definitions of certain of the 

terms used in Chapter Five of the 

MFTA. The basic rules of origin in 

Chapter Five of the MFTA are set forth 

in General Note 27, HTSUS. 

Chapter Six sets forth the customs 

operational provisions related to the 

implementation and administration of 

the MFTA. 

In order to provide transparency and 

facilitate their use, the majority of the 

MFTA implementing regulations set 

forth in this document have been 

included within new Subpart M in Part 

10 of the CBP regulations (19 CFR Part 

10). However, in those cases in which 

MFTA implementation is more 

appropriate in the context of an existing 

regulatory provision, the MFTA 

regulatory text has been incorporated in 

an existing Part within the CBP 

regulations. In addition, this document 

sets forth several cross-references and 

other consequential changes to existing 

regulatory provisions to clarify the 

relationship between those existing 

provisions and the new MFTA 

implementing regulations. The 

regulatory changes are discussed below 

in the order in which they appear in this 

document. 


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Discussion of Amendments 

Part 10 

Section 10.31(f) concerns temporary 

importations under bond. It is amended 

by adding references to certain goods 

originating in Morocco for which, like 

goods originating in Canada, Mexico, 

Singapore and Chile, no bond or other 

security will be required when imported 

temporarily for prescribed uses. The 

provisions of MFTA Article 2.5 

(temporary admission of goods) are 

already reflected in existing temporary 

importation bond or other provisions 

contained in Part 10 of the CBP 

regulations and in Chapter 98 of the 

HTSUS. 

Part 10, Subpart M 

General Provisions 

Section 10.761 outlines the scope of 

new Subpart M, Part 10. This section 

also clarifies that, except where the 

context otherwise requires, the 

requirements contained in Subpart M, 

Part 10 are in addition to general 

administrative and enforcement 

provisions set forth elsewhere in the 

CBP regulations. Thus, for example, the 

specific merchandise entry 

requirements contained in Subpart M, 

Part 10 are in addition to the basic entry 

requirements contained in Parts 141–

143 of the CBP regulations. 

Section 10.762 sets forth definitions 

of common terms used in multiple 

contexts or places within Subpart M, 

Part 10. Although the majority of the 

definitions in this section are based on 

definitions contained in Article 1.3 of 

the MFTA and § 3 of the Act, other 

definitions have also been included to 

clarify the application of the regulatory 

texts. Additional definitions which 

apply in a more limited Subpart M, Part 

10 context are set forth elsewhere with 

the substantive provisions to which they 

relate. 

Import Requirements 

Section 10.763 sets forth the 

procedure for claiming MFTA tariff 

benefits at the time of entry. 

Section 10.764, as provided in MFTA 

Article 5.10(b), requires a U.S. importer, 

upon request, to submit a declaration 

setting forth all pertinent information 

concerning the growth, production, or 

manufacture of the good. Included in 

§ 10.764 is a provision that the 

declaration may be used either for a 

single importation or for multiple 

importations of identical goods. 

Section 10.765 sets forth certain 

importer obligations regarding the 

truthfulness of information and 

documents submitted in support of a 

claim for preferential tariff treatment 

under the MFTA. As provided in MFTA 

Article 5.10(a), this section states that a 

U.S. importer who makes a claim for 

preferential tariff treatment for a good is 

deemed to have certified that the good 

qualifies for such treatment. 

Section 10.766 provides that the 

importer’s declaration is not required 

for certain non-commercial or low-value 

importations. 

Section 10.767 implements the 

portion of MFTA Article 5.10 

concerning the maintenance of records 

necessary for the preparation of the 

declaration. 

Section 10.768, which is based on 

MFTA Article 5.11.1, provides for the 

denial of MFTA tariff benefits if the 

importer fails to comply with any of the 

requirements of Subpart M, Part 10, CBP 

regulations. 

Rules of Origin 

Sections 10.769 through 10.777 

provide the implementing regulations 

regarding the rules of origin provisions 

of General Note 27, HTSUS, Article 4.3 

and Chapter Five of the MFTA, and 

§ 203 of the Act. 

Definitions 

Section 10.769 sets forth terms that 

are defined for purposes of the rules of 

origin. CBP notes that, pursuant to 

letters of understanding exchanged 

between the Parties on June 15, 2004, in 

determining whether a good meets the 

definition of a ‘‘new or different article 

of commerce’’ in paragraph (i) of 

§ 10.769, the United States may be 

guided by the rules of origin set forth in 

Part 102, CBP regulations (19 CFR Part 

102). 

General Rules of Origin 

Section 10.770 includes the basic 

rules of origin established in Article 5.1 

of the MFTA, section 203(b) of the Act, 

and General Note 27(b), HTSUS. 

Paragraph (a) of § 10.770 sets forth the 

three basic categories of goods that are 

considered originating goods under the 

MFTA. Paragraph (a)(1) of § 10.770 

specifies those goods that are 

considered originating goods because 

they are wholly the growth, product, or 

manufacture of one or both of the 

Parties. Paragraph (a)(2) provides that 

goods are considered originating goods 

if they: (1) Are new or different articles 

of commerce that have been grown, 

produced, or manufactured in the 

territory of one or both of the Parties; (2) 

are classified in HTSUS provisions that 

are not covered by the product-specific 

rules set forth in General Note 27(h), 

HTSUS; and (3) meet a 35 percent 

value-content requirement. Finally, 

paragraph (a)(3) states that goods are 

considered originating goods if: (1) They 

are classified in HTSUS provisions that 

are covered by the product-specific 

rules set forth in General Note 27(h), 

HTSUS; (2) each non-originating 

material used in the production of the 

good in the territory of one or both of 

the Parties undergoes an applicable 

change in tariff classification or 

otherwise satisfies the requirements 

specified in General Note 27(h), HTSUS; 

and (3) the goods meet any other 

requirements specified in General Note 

27, HTSUS. 

Paragraph (b) of § 10.770 sets forth the 

basic rules that apply for purposes of 

determining whether a good satisfies the 

35 percent value-content requirement 

referred to in § 10.770(a)(2) . 

Paragraph (c) of § 10.770 implements 

Article 5.3 of the MFTA, relating to the 

simple combining or packaging or mere 

dilution exceptions to the ‘‘new or 

different article of commerce’’

requirement of § 10.770(a)(2). Since the 

language in Article 5.3 of the MFTA 

(and § 203(i)(7)(B) of the Act) is nearly 

identical to the language found in 

§ 213(a)(2) of the Caribbean Basin 

Economic Recovery Act (‘‘CBERA’’) (19 

U.S.C. 2703(a)(2)), § 10.770(c) 

incorporates by reference the examples 

and principles set forth in § 10.195(a)(2) 

of CBP’s implementing CBERA 

regulations. 

Originating Textile or Apparel Goods 

Section 10.771(a), as provided for in 

Article 4.3.7 of the MFTA, sets forth a 

de minimis rule for certain textile or 

apparel goods that may be considered to 

qualify as originating goods even though 

they fail to satisfy the applicable change 

in tariff classification set out in General 

Note 27(h). This paragraph also includes 

an exception to the de minimis rule. 

Section 10.771(b), which is based on 

Article 4.3.8 of the MFTA, sets forth a 

special rule for textile or apparel goods 

classifiable under General Rule of 

Interpretation 3, HTSUS, as goods put 

up in sets for retail sale. 

Accumulation 

Section 10.772, which is derived from 

MFTA Article 5.4, sets forth the rule by 

which originating goods or materials 

from the territory of a Party that are 

used in the production of a good in the 

territory of the other Party will be 

considered to originate in the territory 

of such other Party. In addition, this 

section also establishes that a good or 

material that is produced by one or 

more producers in the territory of one or 

both of the Parties is an originating good 

or material if the article satisfies all of 


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the applicable requirements of the rules 

of origin of the MFTA. 

Value of Materials 

Section 10.773 implements Article 5.5 

of the MFTA, relating to the calculation 

of the value of materials that may be 

applied toward satisfaction of the 35 

percent value-content requirement. 

Direct Costs of Processing Operations 

Section 10.774, which reflects Article 

5.6 of the MFTA, sets forth provisions 

regarding the calculation of direct costs 

of processing operations for purposes of 

the 35 percent value-content 

requirement. 

Packaging and Packing Materials and 

Containers for Retail Sale and for 

Shipment 

Section 10.775 is based on Article 5.7 

of the MFTA and provides that retail 

packaging materials and packing 

materials for shipment are to be 

disregarded in determining whether a 

good qualifies as originating under the 

MFTA, except to the extent that the 

value of such packaging and packing 

materials may be included for purposes 

of meeting the 35 percent value-content 

requirement. 

Indirect Materials 

Section 10.776, which is derived from 

Article 5.8 of the MFTA, provides that 

indirect materials will be disregarded in 

determining whether a good qualifies as 

an originating good under the MFTA, 

except to the extent that the cost of such 

indirect materials may be included 

toward satisfying the 35 percent valuecontent requirement. 

Imported Directly 

Section 10.777(a) sets forth the basic 

rule, found in Article 5.1 of the MFTA, 

that a good must be imported directly 

from the territory of a Party into the 

territory of the other Party to qualify as 

an originating good under the MFTA. 

This paragraph further provides that, as 

set forth in Article 5.9 of the MFTA, a 

good will not be considered to be 

imported directly if, after exportation 

from the territory of a Party, the good 

undergoes production, manufacturing, 

or any other operation outside the 

territories of the Parties, other than 

certain minor operations. 

Paragraph (b) of § 10.777 provides that 

an importer making a claim for 

preferential tariff treatment under the 

MFTA may be required to demonstrate, 

through the submission of documentary 

evidence, that the ‘‘imported directly’’

requirement was satisfied. 

Tariff Preference Level 

Section 10.778 sets forth the 

procedures for claiming MFTA tariff 

benefits for non-originating fabric or 

apparel goods entitled to preference 

under an applicable tariff preference 

level (‘‘TPL’’). 

Section 10.779, which is based on 

Articles 4.3.9 and 4.3.10, describes the 

non-originating fabric and apparel goods 

that are eligible for TPL claims under 

the MFTA. 

Section 10.780 provides for the denial 

of a TPL claim if the importer fails to 

comply with any applicable 

requirement under Subpart M, Part 10, 

CBP regulations, including the failure to 

provide documentation, when requested 

by CBP, establishing that the good was 

imported directly from the territory of a 

Party into the territory of the other 

Party. 

Section 10.781 establishes that nonoriginating fabric or apparel goods are 

entitled to preferential tariff treatment 

under an applicable TPL only if they are 

imported directly from the territory of a 

Party into the territory of the other 

Party. 

Origin Verifications and Determinations 

Section 10.784 implements MFTA 

Article 5.11.2 by providing that a claim 

for MFTA preferential tariff treatment, 

including any information submitted in 

support of the claim, will be subject to 

such verification as CBP deems 

necessary. This section further sets forth 

the circumstances under which a claim 

may be denied based on the results of 

the verification. 

Section 10.785, which is based on 

Article 4.4 of the MFTA, concerns 

verifications conducted in Morocco by 

Moroccan authorities (at the request of 

CBP) relating to textile and apparel 

goods imported in the United States, 

whether or not a claim is made for 

MFTA preferential tariff treatment. U.S. 

officials may also assist in a verification 

in Morocco under this section. Section 

10.785 also provides for specific actions 

to be taken by CBP during and after the 

verification, if directed by the 

Committee for the Implementation of 

Textile Agreements (CITA). 

Section 10.786 implements MFTA 

Article 5.11.3 by providing that CBP 

will issue a determination to the 

importer when CBP determines that a 

claim for MFTA preferential tariff 

treatment should be denied based on the 

results of a verification. This section 

also prescribes the information required 

to be included in the determination. 

Penalties 

Section 10.787 concerns the general 

application of penalties to MFTA 

transactions and is based on MFTA 

Article 6.9. 

Goods Returned After Repair or 

Alteration 

Section 10.788 implements MFTA 

Article 2.6 regarding duty treatment on 

goods re-entered after repair or 

alteration in Morocco. 

Part 162 

Part 162 contains regulations 

regarding the inspection and 

examination of, among other things, 

imported merchandise. A crossreference is added to § 162.0, which is 

the scope section of the part, to refer 

readers to the additional MFTA records 

maintenance and examination 

provisions contained in new Subpart M, 

Part 10, CBP regulations. 

Part 163 

A conforming amendment is made to 

§ 163.1 to include the maintenance of 

any documentation that the importer 

may have in support of a claim for 

preference under the MFTA as an 

activity for which records must be 

maintained. Also, the list of records and 

information required for the entry of 

merchandise appearing in the Appendix 

to Part 163 (commonly known as the 

(a)(1)(A) list) is also amended to add the 

MFTA records that the importer may 

have in support of a MFTA claim for 

preferential tariff treatment. 

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, 

Public Law 104–13. The list contained 

in § 178.2 is amended to add the 

information collections used by CBP to 

determine eligibility for a tariff 

preference or other rights or benefits 

under the MFTA and the Act. 

Inapplicability of Notice and Delayed 

Effective Date Requirements 

Under section 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, section 

553(a)(1) of the APA provides that the 

standard prior notice and comment 

procedures and delayed effective date 

provisions of 5 U.S.C. 553(d) do not 


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Federal Register / Vol. 72, No. 125 / Friday, June 29, 2007 / Rules and Regulations 35651 

apply to agency rulemaking that 

involves a foreign affairs function of the 

United States. CBP has determined that 

these interim regulations involve the 

foreign affairs function of the United 

States, as they implement preferential 

tariff treatment and related provisions of 

the MFTA. Therefore, the rulemaking 

requirements under the APA do not 

apply and this interim rule will be 

effective upon publication. However, 

CBP is soliciting comments in this 

interim rule and will consider all 

comments it receives before issuing a 

final rule. 

Executive Order 12866 and Regulatory 

Flexibility Act 

CBP has determined that this 

document is not a regulation or rule 

subject to the provisions of Executive 

Order 12866 of September 30, 1993 (58 

FR 51735, October 1993), because it 

pertains to a foreign affairs function of 

the United States and implements an 

international agreement, as described 

above, and therefore is specifically 

exempted by section 3(d)(2) of 

Executive Order 12866. 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 

Administrative Procedure Act (5 U.S.C. 

553). 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 1651–0117. 

The collections of information in 

these regulations are in §§ 10.763 and 

10.764. This information is required in 

connection with claims for preferential 

tariff treatment and for the purpose of 

the exercise of other rights under the 

MFTA and the Act and will be used by 

CBP to determine eligibility for a tariff 

preference or other rights or benefits 

under the MFTA and the Act. The likely 

respondents are business organizations 

including importers, exporters and 

manufacturers. 

Estimated total annual reporting 

burden: 800 hours. 

Estimated average annual burden per 

respondent: 0.2 hours. 

Estimated number of respondents: 

4000. 

Estimated annual frequency of 

responses: 1. 

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 

Alterations, Bonds, Customs duties 

and inspection, Exports, Imports, 

Preference programs, Repairs, Reporting 

and recordkeeping requirements, Trade 

agreements. 

19 CFR Part 162 

Administrative practice and 

procedure, Customs duties and 

inspection, Penalties, Trade agreements. 

19 CFR Part 163 

Administrative practice and 

procedure, Customs duties and 

inspection, Export, Import, Reporting 

and recordkeeping requirements, Trade 

agreements. 

19 CFR Part 178 

Administrative practice and 

procedure, Exports, Imports, Reporting 

and recordkeeping requirements. 

Amendments to the CBP 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 Subpart M 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 10.761 through 10.789 also issued 

under Pub. L. 108–302, 118 Stat. 1103 (19 

U.S.C. 3805 note). 

■ 2. In § 10.31, paragraph (f), the last 

sentence is revised to read as follows: 

§ 10.31 Entry; bond. 

* * * * * 

(f) * * * In addition, notwithstanding 

any other provision of this paragraph, in 

the case of professional equipment 

necessary for carrying out the business 

activity, trade or profession of a 

business person, equipment for the 

press or for sound or television 

broadcasting, cinematographic 

equipment, articles imported for sports 

purposes and articles intended for 

display or demonstration, if brought 

into the United States by a resident of 

Canada, Mexico, Singapore, Chile, or 

Morocco and entered under Chapter 98, 

Subchapter XIII, HTSUS, no bond or 

other security will be required if the 

entered article is a good originating, 

within the meaning of General Notes 12, 

25, 26, or 27, HTSUS, in the country in 

which the importer is a resident. 

* * * * * 

■ 3. Part 10, CBP regulations, is 

amended by adding Subpart M to read 

as follows: 

Subpart M—United States-Morocco 

Free Trade Agreement 

Sec. 

General Provisions 

10.761 Scope. 

10.762 General definitions. 

Import Requirements 

10.763 Filing of claim for preferential tariff 

treatment upon importation. 

10.764 Declaration. 

10.765 Importer obligations. 

10.766 Declaration not required. 

10.767 Maintenance of records. 

10.768 Effect of noncompliance; failure to 

provide documentation regarding 

transshipment. 

Rules of Origin 

10.769 Definitions. 

10.770 Originating goods. 

10.771 Textile or apparel goods. 

10.772 Accumulation. 

10.773 Value of materials. 

10.774 Direct costs of processing 

operations. 

10.775 Packaging and packing materials 

and containers for retail sale and for 

shipment. 

10.776 Indirect materials. 


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10.777 Imported directly. 

Tariff Preference Level 

10.778 Filing of claim for tariff preference 

level. 

10.779 Goods eligible for tariff preference 

claims. 

10.780 Transshipment of nonoriginating 

fabric or apparel goods. 

10.781 Effect of noncompliance; failure to 

provide documentation regarding 

transshipment of nonoriginating fabric or 

apparel goods. 

Origin Verifications and Determinations 

10.784 Verification and justification of 

claim for preferential treatment. 

10.785 Special rule for verifications in 

Morocco of U.S. imports of textile and 

apparel products. 

10.786 Issuance of negative origin 

determinations. 

Penalties 

10.787 Violations relating to the MFTA. 

Goods Returned After Repair or Alteration 

10.788 Goods re-entered after repair or 

alteration in Morocco. 

Subpart M—United States-Morocco 

Free Trade Agreement 

General Provisions 

§ 10.761 Scope. 

This subpart implements the duty 

preference and related customs 

provisions applicable to imported goods 

under the United States-Morocco Free 

Trade Agreement (the MFTA) signed on 

June 15, 2004, and under the United 

States-Morocco Free Trade Agreement 

Implementation Act (the Act; 118 Stat. 

1103). Except as otherwise specified in 

this subpart, the procedures and other 

requirements set forth in this subpart 

are in addition to the customs 

procedures and requirements of general 

application contained elsewhere in this 

chapter. Additional provisions 

implementing certain aspects of the 

MFTA and the Act are contained in 

Parts 162 and 163 of this chapter. 

§ 10.762 General definitions. 

As used in this subpart, the following 

terms will 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) Claim of origin. ‘‘Claim of origin’’

means a claim that a good is an 

originating good; 

(b) Claim for preferential tariff 

treatment. ‘‘Claim for preferential tariff 

treatment’’ means a claim that a good is 

entitled to the duty rate applicable 

under the MFTA to an originating good; 

(c) Customs Valuation Agreement. 

‘‘Customs Valuation Agreement’’ means 

the Agreement on Implementation of 

Article VII of the General Agreement on 

Tariffs and Trade 1994, which is part of 

the WTO Agreement; 

(d) Customs duty. ‘‘Customs duty’’

includes any customs or import duty 

and a charge of any kind imposed in 

connection with the importation of a 

good, including any form of surtax or 

surcharge in connection with such 

importation, but does not include any: 

(1) Charge equivalent to an internal 

tax imposed consistently with Article 

III:2 of the GATT 1994 in respect of like, 

directly competitive, or substitutable 

goods of the Party or in respect of goods 

from which the imported good has been 

manufactured or produced in whole or 

in part; 

(2) Antidumping or countervailing 

duty; and 

(3) Fee or other charge in connection 

with importation commensurate with 

the cost of services rendered; 

(e) Days. ‘‘Days’’ means calendar days. 

(f) Enterprise. ‘‘Enterprise’’ means any 

entity constituted or organized under 

applicable law, whether or not for 

profit, and whether privately-owned or 

governmentally-owned, including any 

corporation, trust, partnership, sole 

proprietorship, joint venture, or other 

association; 

(g) Foreign material. ‘‘Foreign 

material’’ means a material other than a 

material produced in the territory of one 

or both of the Parties; 

(h) GATT 1994. ‘‘GATT 1994’’ means 

the General Agreement on Tariffs and 

Trade 1994, which is part of the WTO 

Agreement; 

(i) Good. ‘‘Good’’ means any 

merchandise, product, article, or 

material; 

(j) Harmonized System. ‘‘Harmonized 

System (HS)’’ means the Harmonized 

Commodity Description and Coding 

System, including its General Rules of 

Interpretation, Section Notes, and 

Chapter Notes, as adopted and 

implemented by the Parties in their 

respective tariff laws; 

(k) Heading. ‘‘Heading’’ means the 

first four digits in the tariff classification 

number under the Harmonized System; 

(l) HTSUS. ‘‘HTSUS’’ means the 

Harmonized Tariff Schedule of the 

United States as promulgated by the 

U.S. International Trade Commission; 

(m) Originating. ‘‘Originating’’ means 

a good qualifying under the rules of 

origin set forth in General Note 27, 

HTSUS, and MFTA Chapter Four 

(Textiles and apparel) or Chapter Five 

(Rules of Origin); 

(n) Party. ‘‘Party’’ means the United 

States or the Kingdom of Morocco; 

(o) Person. ‘‘Person’’ means a natural 

person or an enterprise; 

(p) Preferential tariff treatment. 

‘‘Preferential tariff treatment’’ means the 

duty rate applicable under the MFTA to 

an originating good; 

(q) Subheading. ‘‘Subheading’’ means 

the first six digits in the tariff 

classification number under the 

Harmonized System; 

(r) Textile or apparel good. ‘‘Textile or 

apparel good’’ means a good listed in 

the Annex to the Agreement on Textiles 

and Clothing (commonly referred to as 

ATC), which is part of the WTO 

Agreement; 

(s) Territory. ‘‘Territory’’ means: 

(1) With respect to Morocco, the land, 

maritime and air space under its 

sovereignty, and the exclusive economic 

zone and the continental shelf within 

which it exercises sovereign rights and 

jurisdiction in accordance with 

international law and its domestic law; 

and 

(2) With respect to the United States, 

(i) The customs territory of the United 

States, which includes the 50 states, the 

District of Columbia, and Puerto Rico, 

(ii) The foreign trade zones located in 

the United States and Puerto Rico, and 

(iii) Any areas beyond the territorial 

seas of the United States within which, 

in accordance with international law 

and its domestic law, the United States 

may exercise rights with respect to the 

seabed and subsoil and their natural 

resources; 

(t) WTO Agreement. ‘‘WTO 

Agreement’’ means the Marrakesh 

Agreement Establishing the World Trade 

Organization of April 15, 1994. 

Import Requirements 

§ 10.763 Filing of claim for preferential 

tariff treatment upon importation. 

An importer may make a claim for 

MFTA preferential tariff treatment for 

an originating good by including on the 

entry summary, or equivalent 

documentation, the symbol ‘‘MA’’ as a 

prefix to the subheading of the HTSUS 

under which each qualifying good is 

classified, or by the method specified 

for equivalent reporting via an 

authorized electronic data interchange 

system. 

§ 10.764 Declaration. 

(a) Contents. An importer who claims 

preferential tariff treatment for a good 

under the MFTA must submit to CBP, 

at the request of the port director, a 

declaration setting forth all pertinent 

information concerning the growth, 

production, or manufacture of the good. 

A declaration submitted to CBP under 

this paragraph: 

(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; 


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(2) Must include the following 

information: 

(i) The legal name, address, 

telephone, and e-mail address (if any) of 

the importer of record of the good; 

(ii) The legal name, address, 

telephone, and e-mail address (if any) of 

the responsible official or authorized 

agent of the importer signing the 

declaration (if different from the 

information required by paragraph 

(a)(2)(i) of this section); 

(iii) The legal name, address, 

telephone, and e-mail address (if any) of 

the exporter of the good (if different 

from the producer); 

(iv) The legal name, address, 

telephone, and e-mail address (if any) of 

the producer of the good (if known); 

(v) A description of the good, which 

must be sufficiently detailed to relate it 

to the invoice and HS nomenclature, 

including quantity, numbers, invoice 

numbers, and bills of lading; 

(vi) A description of the operations 

performed in the growth, production, or 

manufacture of the good in the territory 

of one or both of the Parties and, where 

applicable, identification of the direct 

costs of processing operations; 

(vii) A description of any materials 

used in the growth, production, or 

manufacture of the good that are wholly 

the growth, product, or manufacture of 

one or both of the Parties, and a 

statement as to the value of such 

materials; 

(viii) A description of the operations 

performed on, and a statement as to the 

origin and value of, any materials used 

in the article that are claimed to have 

been sufficiently processed in the 

territory of one or both of the Parties so 

as to be materials produced in one or 

both of the Parties, or are claimed to 

have undergone an applicable change in 

tariff classification specified in General 

Note 27(h), HTSUS; and 

(ix) A description of the origin and 

value of any foreign materials used in 

the good that have not been 

substantially transformed in the 

territory of one or both of the Parties, or 

have not undergone an applicable 

change in tariff classification specified 

in General Note 27(h), HTSUS; 

(3) Must include a statement, in 

substantially the following form: 

‘‘I certify that: 

The information on this document is true 

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 

these representations; 

The goods comply with all the 

requirements for preferential tariff treatment 

specified for those goods in the United 

States-Morocco Free Trade Agreement; and 

This document consists of llpages, 

including all attachments.’’

(b) Responsible official or agent. The 

declaration must be signed and dated by 

a responsible official of the importer or 

by the importer’s authorized agent 

having knowledge of the relevant facts. 

(c) Language. The declaration must be 

completed in the English language. 

(d) Applicability of declaration. The 

declaration may be applicable to: 

(1) A single importation of a good 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 

(2) Multiple importations of identical 

goods into the United States that occur 

within a specified blanket period, not 

exceeding 12 months, set out in the 

declaration. For purposes of this 

paragraph, ‘‘identical goods’’ means 

goods that are the same in all respects 

relevant to the production that qualifies 

the goods for preferential tariff 

treatment. 

§ 10.765 Importer obligations. 

(a) General. An importer who makes 

a claim for preferential tariff treatment 

under § 10.763 of this subpart: 

(1) Will be deemed to have certified 

that the good is eligible for preferential 

tariff treatment under the MFTA; 

(2) Is responsible for the truthfulness 

of the information and data contained in 

the declaration provided for in § 10.764 

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. CBP will allow for the 

direct submission by the exporter or 

producer of business confidential or 

other sensitive information, including 

cost and sourcing information. 

(b) Information provided by exporter 

or producer. The fact that the importer 

has made a claim for preferential tariff 

treatment or prepared a declaration 

based on information provided by an 

exporter or producer will not relieve the 

importer of the responsibility referred to 

in paragraph (a) of this section. 

§ 10.766 Declaration not required. 

(a) General. Except as otherwise 

provided in paragraph (b) of this 

section, an importer will not be required 

to submit a declaration under § 10.764 

of this subpart for: 

(1) A non-commercial importation of 

a good; or 

(2) A commercial importation for 

which the value of the originating goods 

does not exceed U.S. $2,500. 

(b) Exception. If the port director 

determines that an importation 

described in paragraph (a) of this 

section may reasonably be considered to 

have been carried out or planned for the 

purpose of evading compliance with the 

rules and procedures governing claims 

for preference under the MFTA, the port 

director will notify the importer that for 

that importation the importer must 

submit to CBP a declaration. The 

importer must submit such a declaration 

within 30 days from the date of the 

notice. Failure to timely submit the 

declaration will result in denial of the 

claim for preferential tariff treatment. 

§ 10.767 Maintenance of records. 

(a) General. An importer claiming 

preferential tariff treatment for a good 

under § 10.763 of this subpart must 

maintain, for five years after the date of 

the claim for preferential tariff 

treatment, all records and documents 

necessary for the preparation of the 

declaration. 

(b) Applicability of other 

recordkeeping requirements. The 

records and documents referred to in 

paragraph (a) of this section are in 

addition to any other records required to 

be made, kept, and made available to 

CBP under Part 163 of this chapter. 

(c) Method of maintenance. The 

records and documents referred to in 

paragraph (a) of this section must be 

maintained by importers as provided in 

§ 163.5 of this chapter. 

§ 10.768 Effect of noncompliance; failure 

to provide documentation regarding 

transshipment. 

(a) General. If the importer fails to 

comply with any requirement under this 

subpart, including submission of a 

complete declaration under § 10.764 of 

this subpart, when requested, the port 

director may deny preferential tariff 

treatment to the imported good. 

(b) Failure to provide documentation 

regarding transshipment. Where the 

requirements for preferential tariff 

treatment set forth elsewhere in this 

subpart are met, the port director 

nevertheless may deny preferential 

treatment to a good if the good is 

shipped through or transshipped in the 

territory of a country other than a Party, 

and the importer of the good does not 

provide, at the request of the port 

director, evidence demonstrating to the 

satisfaction of the port director that the 

good was imported directly from the 

territory of a Party into the territory of 

the other Party (see § 10.777 of this 

subpart). 


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Rules of Origin 

§ 10.769 Definitions. 

For purposes of §§ 10.769 through 

10.777: 

(a) Exporter. ‘‘Exporter’’ means a 

person who exports goods from the 

territory of a Party; 

(b) Generally Accepted Accounting 

Principles. ‘‘Generally Accepted 

Accounting Principles’’ means the 

recognized consensus or substantial 

authoritative support in the territory of 

a Party, with respect to the recording of 

revenues, expenses, costs, assets, and 

liabilities, the disclosure of information, 

and the preparation of financial 

statements. These standards may 

encompass broad guidelines of general 

application as well as detailed 

standards, practices, and procedures; 

(c) Good. ‘‘Good’’ means any 

merchandise, product, article, or 

material; 

(d) Goods wholly the growth, product, 

or manufacture of one or both of the 

Parties. ‘‘Goods wholly the growth, 

product, or manufacture of one or both 

of the Parties’’ means: 

(1) Mineral goods extracted in the 

territory of one or both of the Parties; 

(2) Vegetable goods, as such goods are 

defined in the HTSUS, harvested in the 

territory of one or both of the Parties; 

(3) Live animals born and raised in 

the territory of one or both of the 

Parties; 

(4) Goods obtained from live animals 

raised in the territory of one or both of 

the Parties; 

(5) Goods obtained from hunting, 

trapping, or fishing in the territory of 

one or both of the parties; 

(6) Goods (fish, shellfish, and other 

marine life) taken from the sea by 

vessels registered or recorded with a 

Party and flying its flag; 

(7) Goods produced from goods 

referred to in paragraph (d)(5) on board 

factory ships registered or recorded with 

that Party and flying its flag; 

(8) Goods taken by a Party or a person 

of a Party from the seabed or beneath 

the seabed outside territorial waters, 

provided that a Party has rights to 

exploit such seabed; 

(9) Goods taken from outer space, 

provided they are obtained by a Party or 

a person of a Party and not processed in 

the territory of a non-Party; 

(10) Waste and scrap derived from: 

(i) Production or manufacture in the 

territory of one or both of the Parties, or 

(ii) Used goods collected in the 

territory of one or both of the Parties, 

provided such goods are fit only for the 

recovery of raw materials; 

(11) Recovered goods derived in the 

territory of a Party from used goods, and 

utilized in the territory of that Party in 

the production of remanufactured 

goods; and 

(12) Goods produced in the territory 

of one or both of the Parties exclusively 

from goods referred to in paragraphs 

(d)(1) through (d)(10) of this section, or 

from their derivatives, at any stage of 

production; 

(e) Importer. Importer means a person 

who imports goods into the territory of 

a Party; 

(f) Indirect material. ‘‘Indirect 

material’’ means a good used in the 

growth, production, manufacture, 

testing, or inspection of a good but not 

physically incorporated into the good, 

or a good used in the maintenance of 

buildings or the operation of equipment 

associated with the growth, production, 

or manufacture of a good, including: 

(1) Fuel and energy; 

(2) Tools, dies, and molds; 

(3) Spare parts and materials used in 

the maintenance of equipment and 

buildings; 

(4) Lubricants, greases, compounding 

materials, and other materials used in 

the growth, production, or manufacture 

of a good or used to operate equipment 

and buildings; 

(5) Gloves, glasses, footwear, clothing, 

safety equipment, and supplies; 

(6) Equipment, devices, and supplies 

used for testing or inspecting the good; 

(7) Catalysts and solvents; and 

(8) Any other goods that are not 

incorporated into the good but the use 

of which in the growth, production, or 

manufacture of the good can reasonably 

be demonstrated to be a part of that 

growth, production, or manufacture; 

(g) Material. ‘‘Material’’ means a good, 

including a part or ingredient, that is 

used in the growth, production, or 

manufacture of another good that is a 

new or different article of commerce 

that has been grown, produced, or 

manufactured in one or both of the 

Parties; 

(h) Material produced in the territory 

of one or both of the Parties. ‘‘Material 

produced in the territory of one or both 

of the Parties’’ means a good that is 

either wholly the growth, product, or 

manufacture of one or both of the 

Parties, or a new or different article of 

commerce that has been grown, 

produced, or manufactured in the 

territory of one or both of the Parties; 

(i) New or different article of 

commerce. The term ‘‘new or different 

article of commerce’’ means, except as 

provided in § 10.770(c) of this subpart, 

a good that: 

(1) Has been substantially transformed 

from a good or material that is not 

wholly the growth, product, of 

manufacture of one or both of the 

Parties; and 

(2) Has a new name, character, or use 

distinct from the good or material from 

which it was transformed; 

(j) Non-originating material. ‘‘Nonoriginating material’’ means a material 

that does not qualify as originating 

under this subpart or General Note 27, 

HTSUS; 

(k) Packing materials and containers 

for shipment. ‘‘Packing materials and 

containers for shipment’’ means the 

goods used to protect a good during its 

transportation to the United States, and 

does not include the packaging 

materials and containers in which a 

good is packaged for retail sale; 

(l) Recovered goods. ‘‘Recovered 

goods’’ means materials in the form of 

individual parts that result from: 

(1) The complete disassembly of used 

goods into individual parts; and 

(2) The cleaning, inspecting, testing, 

or other processing of those parts as 

necessary for improvement to sound 

working condition; 

(m) Remanufactured good. 

‘‘Remanufactured good’’ means an 

industrial good that is assembled in the 

territory of a Party and that: 

(1) Is entirely or partially comprised 

of recovered goods; 

(2) Has a similar life expectancy to, 

and meets the similar performance 

standards as, a like good that is new; 

and 

(3) Enjoys the factory warranty similar 

to that of a like good that is new; 

(n) Simple combining or packaging 

operations. ‘‘Simple combining or 

packaging operations’’ means operations 

such as adding batteries to electronic 

devices, fitting together a small number 

of components by bolting, gluing, or 

soldering, or packing or repacking 

components together; 

(o) Substantially transformed. 

‘‘Substantially transformed’’ means, 

with respect to a good or material, 

changed as the result of a manufacturing 

or processing operation so that the good 

loses its separate identity in the 

manufacturing or processing operation 

and: 

(1) The good or material is converted 

from a good that has multiple uses into 

a good or material that has limited uses; 

(2) The physical properties of the 

good or material are changed to a 

significant extent; or 

(3) The operation undergone by the 

good or material is complex by reason 

of the number of processes and 

materials involved and the time and 

level of skill required to perform those 

processes. 


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§ 10.770 Originating goods. 

(a) General. A good will be considered 

an originating good under the MFTA 

when imported directly from the 

territory of a Party into the territory of 

the other Party only if: 

(1) The good is wholly the growth, 

product, or manufacture of one or both 

of the Parties; 

(2) The good is a new or different 

article of commerce that has been 

grown, produced, or manufactured in 

the territory of one or both of the 

Parties, is provided for in a heading or 

subheading of the HTSUS that is not 

covered by the product-specific rules set 

forth in General Note 27(h), HTSUS, and 

meets the value-content requirement 

specified in paragraph (b) of this 

section; or 

(3) The good is provided for in a 

heading or subheading of the HTSUS 

covered by the product-specific rules set 

forth in General Note 27(h), HTSUS, 

and: 

(i)(A) Each of the non-originating 

materials used in the production of the 

good undergoes an applicable change in 

tariff classification specified in General 

Note 27(h), HTSUS, as a result of 

production occurring entirely in the 

territory of one or both of the Parties; or 

(B) The good otherwise satisfies the 

requirements specified in General Note 

27(h), HTSUS; and 

(ii) The good meets any other 

requirements specified in General Note 

27, HTSUS. 

(b) Value-content requirement. A good 

described in paragraph (a)(2) of this 

section will be considered an 

originating good under the MFTA only 

if the sum of the value of materials 

produced in one or both of the Parties, 

plus the direct costs of processing 

operations (see § 10.774 of this subpart) 

performed in one or both of the Parties, 

is not less than 35 percent of the 

appraised value of the good at the time 

the good is entered into the territory of 

the United States. 

(c) Combining, packaging, and 

diluting operations. For purposes of this 

subpart, a good will not be considered 

a new or different article of commerce 

by virtue of having undergone simple 

combining or packaging operations, or 

mere dilution with water or another 

substance that does not materially alter 

the characteristics of the good. The 

principles and examples set forth in 

§ 10.195(a)(2) of this part will apply 

equally for purposes of this paragraph. 

§ 10.771 Textile or apparel goods. 

(a) De minimis. Except as provided in 

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

or apparel good that is not an 

originating good under the MFTA 

because certain fibers or yarns used in 

the production of the component of the 

good that determines the tariff 

classification of the good do not 

undergo an applicable change in tariff 

classification set out in General Note 

27(h), HTSUS, will be considered to be 

an originating good if the total weight of 

all such fibers is not more than seven 

percent of the total weight of that 

component. 

(1) Exception. A textile or apparel 

good containing elastomeric yarns in the 

component of the good that determines 

the tariff classification of the good will 

be considered to be an originating good 

only if such yarns are wholly formed in 

the territory of a Party. 

(2) Yarn, fabric, or group of fibers. For 

purposes of paragraph (a) of this section, 

in the case of a textile or apparel good 

that is a yarn, fabric, or group of fibers, 

the term ‘‘component of the good that 

determines the tariff classification of the 

good’’ means all of the fibers in the 

yarn, fabric, or group of fibers. 

(b) Textile or apparel goods put up in 

sets. Notwithstanding the specific rules 

specified in General Note 27(h), HTSUS, 

textile or apparel goods classifiable as 

goods put up in sets for retail sale as 

provided for in General Rule of 

Interpretation 3, HTSUS, will not be 

considered to be originating goods 

under the MFTA unless each of the 

goods in the set is an originating good 

or the total value of the non-originating 

goods in the set does not exceed ten 

percent of the appraised value of the set. 

§ 10.772 Accumulation. 

(a) An originating good or material 

produced in the territory of one or both 

of the Parties that is incorporated into 

a good in the territory of the other Party 

will be considered to originate in the 

territory of the other Party. 

(b) A good that is grown, produced, or 

manufactured in the territory of one or 

both of the Parties by one or more 

producers is an originating good if the 

good satisfies the requirements of 

§ 10.770 of this subpart and all other 

applicable requirements of General Note 

27, HTSUS. 

§ 10.773 Value of materials. 

(a) General. For purposes of 

§ 10.770(b) of this subpart and, except as 

provided in paragraph (b) of this 

section, the value of a material 

produced in the territory of one or both 

of the Parties includes the following: 

(1) The price actually paid or payable 

for the material by the producer of the 

good; 

(2) The freight, insurance, packing 

and all other costs incurred in 

transporting the material to the 

producer’s plant, if such costs are not 

included in the price referred to in 

paragraph (a)(1) of this section; 

(3) The cost of waste or spoilage 

resulting from the use of the material in 

the growth, production, or manufacture 

of the good, less the value of recoverable 

scrap; and 

(4) Taxes or customs duties imposed 

on the material by one or both of the 

Parties, if the taxes or customs duties 

are not remitted upon exportation from 

the territory of a Party. 

(b) Exception. If the relationship 

between the producer of a good and the 

seller of a material influenced the price 

actually paid or payable for the material, 

or if there is no price actually paid or 

payable by the producer for the 

material, the value of the material 

produced in the territory of one or both 

of the Parties, includes the following: 

(1) All expenses incurred in the 

growth, production, or manufacture of 

the material, including general 

expenses; 

(2) A reasonable amount for profit; 

and 

(3) The freight, insurance, packing, 

and all other costs incurred in 

transporting the material to the 

producer’s plant. 

§ 10.774 Direct costs of processing 

operations. 

(a) Items included. For purposes of 

§ 10.770(b) of this subpart, the words 

‘‘direct costs of processing operations’’, 

with respect to a good, mean those costs 

either directly incurred in, or that can 

be reasonably allocated to, the growth, 

production, or manufacture of the good 

in the territory of one or both of the 

Parties. Such costs include, to the extent 

they are includable in the appraised 

value of the good when imported into a 

Party, the following: 

(1) All actual labor costs involved in 

the growth, production, or manufacture 

of the specific good, including fringe 

benefits, on-the-job training, and the 

costs of engineering, supervisory, 

quality control, and similar personnel; 

(2) Tools, dies, molds, and other 

indirect materials, and depreciation on 

machinery and equipment that are 

allocable to the specific good; 

(3) Research, development, design, 

engineering, and blueprint costs, to the 

extent that they are allocable to the 

specific good; 

(4) Costs of inspecting and testing the 

specific good; and 

(5) Costs of packaging the specific 

good for export to the territory of the 

other Party. 

(b) Items not included. For purposes 

of § 10.770(b) of this subpart, the words 

‘‘direct costs of processing operations’’


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do not include items that are not 

directly attributable to the good or are 

not costs of growth, production, or 

manufacture of the good. These include, 

but are not limited to: 

(1) Profit; and 

(2) General expenses of doing 

business that are either not allocable to 

the good or are not related to the 

growth, production, or manufacture of 

the good, such as administrative 

salaries, casualty and liability 

insurance, advertising, and salesmen’s 

salaries, commissions, or expenses. 

§ 10.775 Packaging and packing materials 

and containers for retail sale and for 

shipment. 

Packaging materials and containers in 

which a good is packaged for retail sale 

and packing materials and containers 

for shipment are to be disregarded in 

determining whether a good qualifies as 

an originating good under § 10.770 of 

this subpart and General Note 27, 

HTSUS, except to the extent that the 

value of such packaging and packing 

materials and containers may be 

included in meeting the value-content 

requirement specified in § 10.770(b) of 

this subpart. 

§ 10.776 Indirect materials. 

Indirect materials are to be 

disregarded in determining whether a 

good qualifies as an originating good 

under § 10.770 of this subpart and 

General Note 27, HTSUS, except that 

the cost of such indirect materials may 

be included in meeting the valuecontent requirement specified in 

§ 10.770(b) of this subpart. 

§ 10.777 Imported directly. 

(a) General. To qualify as an 

originating good under the MFTA, a 

good must be imported directly from the 

territory of a Party into the territory of 

the other Party. For purposes of this 

subpart, the words ‘‘imported directly’’

mean: 

(1) Direct shipment from the territory 

of a Party into the territory of the other 

Party without passing through the 

territory of a non-Party; or 

(2) If the shipment passed through the 

territory of a non-Party, the good, upon 

arrival in the territory of a Party, will be 

considered to be ‘‘imported directly’’

only if the good did not undergo 

production, manufacturing, or any other 

operation outside the territories of the 

Parties, other than unloading, reloading, 

or any other operation necessary to 

preserve the good in good condition or 

to transport the good to the territory of 

a Party. Operations that may be 

performed outside the territories of the 

Parties include inspection, removal of 

dust that accumulates during shipment, 

ventilation, spreading out or drying, 

chilling, replacing salt, sulfur dioxide, 

or aqueous solutions, replacing 

damaged packing materials and 

containers, and removal of units of the 

good that are spoiled or damaged and 

present a danger to the remaining units 

of the good, or to transport the good to 

the territory of a Party. 

(b) Documentary evidence. An 

importer making a claim for preferential 

tariff treatment under the MFTA for an 

originating good may be required to 

demonstrate, to CBP’s satisfaction, that 

the good was ‘‘imported directly’’ from 

the territory of a Party into the territory 

of the other Party, 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. 

Tariff Preference Level 

§ 10.778 Filing of claim for tariff preference 

level. 

A fabric or apparel good described in 

§ 10.779 of this subpart that does not 

qualify as an originating good under 

§ 10.770 of this subpart may 

nevertheless be entitled to preferential 

tariff treatment under the MFTA under 

an applicable tariff preference level 

(TPL). To make a TPL claim, the 

importer must include on the entry 

summary, or equivalent documentation, 

the applicable subheading in Chapter 99 

of the HTSUS (9912.99.20) immediately 

above the applicable subheading in 

Chapters 51 through 62 of the HTSUS 

under which each non-originating fabric 

or apparel good is classified. 

§ 10.779 Goods eligible for tariff 

preference claims. 

The following goods are eligible for a 

TPL claim filed under § 10.778 of this 

subpart: 

(a) Fabric goods. Fabric goods 

provided for in Chapters 51, 52, 54, 55, 

58, and 60 of the HTSUS that are wholly 

formed in Morocco, regardless of the 

origin of the fiber or yarn used to 

produce the goods, provided that they 

meet the applicable conditions for 

preferential tariff treatment under the 

MFTA, other than the condition that 

they are originating; and 

(b) Apparel goods. Apparel goods 

provided for in Chapters 61 and 62 of 

the HTSUS that are cut or knit to shape, 

or both, and sewn or otherwise 

assembled in Morocco, regardless of the 

origin of the fabric or yarn used to 

produce the goods, provided that they 

meet the applicable conditions for 

preferential tariff treatment under the 

MFTA, other than the condition that 

they are originating goods. 

§ 10.780 Transshipment of non-originating 

fabric or apparel goods. 

(a) General. To qualify for preferential 

tariff treatment under an applicable 

TPL, a good must be imported directly 

from the territory of a Party into the 

territory of the other Party. For purposes 

of this subpart, the words ‘‘imported 

directly’’ mean: 

(1) Direct shipment from the territory 

of a Party into the territory of the other 

Party without passing through the 

territory of a non-Party; or 

(2) If the shipment passed through the 

territory of a non-Party, the good, upon 

arrival in the territory of a Party, will be 

considered to be ‘‘imported directly’’

only if the good did not undergo 

production, manufacturing, or any other 

operation outside the territories of the 

Parties, other than unloading, reloading, 

or any other operation necessary to 

preserve it in good condition or to 

transport the good to the territory of a 

Party. Operations that may be performed 

outside the territories of the Parties 

include inspection, removal of dust that 

accumulates during shipment, 

ventilation, spreading out or drying, 

chilling, replacing salt, sulfur dioxide, 

or other aqueous solutions, replacing 

damaged packing materials and 

containers, and removal of units of the 

good that are spoiled or damaged and 

present a danger to the remaining units 

of the good, or to transport the good to 

the territory of a Party. 

(b) Documentary evidence. An 

importer making a claim for preferential 

tariff treatment under an applicable TPL 

may be required to demonstrate, to 

CBP’s satisfaction, that the good was 

‘‘imported directly’’ from the territory of 

a Party into the territory of the other 

Party, 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. 

§ 10.781 Effect of noncompliance; failure 

to provide documentation regarding 

transshipment of non-originating fabric or 

apparel goods. 

(a) Effect of noncompliance. If an 

importer of a good for which a TPL 

claim is made fails to comply with any 

applicable requirement under this 


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subpart, the port director may deny 

preferential tariff treatment to the 

imported good. 

(b) Failure to provide documentation 

regarding transshipment. Where the 

requirements for preferential tariff 

treatment set forth elsewhere in this 

subpart are met, the port director 

nevertheless may deny preferential tariff 

treatment to a good for which a TPL 

claim is made if the good is shipped 

through or transshipped in a country 

other than a Party, and the importer of 

the good does not provide, at the request 

of the port director, evidence 

demonstrating to the satisfaction of the 

port director that the requirements set 

forth in § 10.780 of this subpart were 

met. 

Origin Verifications and 

Determinations 

§ 10.784 Verification and justification of 

claim for preferential treatment. 

(a) Verification. A claim for 

preferential treatment made under 

§ 10.763 of this subpart, including any 

declaration or other information 

submitted to CBP in support of the 

claim, will be subject to such 

verification as the port director deems 

necessary. In the event that the port 

director is provided with insufficient 

information to verify or substantiate the 

claim, the port director may deny the 

claim for preferential treatment. 

(b) Applicable accounting principles. 

When conducting a verification of origin 

to which Generally Accepted 

Accounting Principles may be relevant, 

CBP will apply and accept the Generally 

Accepted Accounting Principles 

applicable in the country of production. 

§ 10.785 Special rule for verifications in 

Morocco of U.S. imports of textile and 

apparel products. 

(a) Procedures to determine whether a 

claim of origin is accurate. For the 

purpose of determining that a claim of 

origin for a textile or apparel good is 

accurate, CBP may request that the 

government of Morocco conduct a 

verification, regardless of whether a 

claim is made for preferential tariff 

treatment. While a verification under 

this paragraph is being conducted, CBP 

may take appropriate action, as directed 

by The Committee for the 

Implementation of Textile Agreements 

(CITA), which may include suspending 

the application of preferential treatment 

to the textile or apparel good for which 

a claim of origin has been made. If CBP 

is unable to make the determination 

described in this paragraph within 12 

months after a request for a verification, 

or makes a negative determination, CBP 

may take appropriate action with 

respect to the textile and apparel good 

subject to the verification, and with 

respect to similar goods exported or 

produced by the entity that exported or 

produced the good, if directed by CITA. 

(b) Procedures to determine 

compliance with applicable customs 

laws and regulations of the United 

States. For purposes of enabling CBP to 

determine that an exporter or producer 

is complying with applicable customs 

laws, regulations, and procedures in 

cases in which CBP has a reasonable 

suspicion that a Moroccan exporter or 

producer is engaging in unlawful 

activity relating to trade in textile and 

apparel goods, CBP may request that the 

government of Morocco conduct a 

verification, regardless of whether a 

claim is made for preferential tariff 

treatment. A ‘‘reasonable suspicion’’ for 

the purpose of this paragraph will be 

based on relevant factual information, 

including information of the type set 

forth in Article 6.5.5 of the MFTA, that 

indicates circumvention of applicable 

laws, regulations or procedures 

regarding trade in textile and apparel 

goods. While a verification under this 

paragraph is being conducted, CBP may 

take appropriate action, as directed by 

CITA, which may include suspending 

the application of preferential tariff 

treatment to the textile and apparel 

goods exported or produced by the 

Moroccan entity where the reasonable 

suspicion of unlawful activity relates to 

those goods. If CBP is unable to make 

the determination described in this 

paragraph within 12 months after a 

request for a verification, or makes a 

negative determination, CBP may take 

appropriate action with respect to any 

textile or apparel goods exported or 

produced by the entity subject to the 

verification, if directed by CITA. 

(c) Assistance by U.S. officials to 

Moroccan authorities. U.S. officials may 

undertake or assist in a verification 

under this section by conducting visits 

in Morocco, along with the competent 

authorities of Morocco, to the premises 

of an exporter, producer or any other 

enterprise involved in the movement of 

textile or apparel goods from Morocco to 

the United States. 

(d) Treatment of documents and 

information provided to CBP. Any 

production, trade and transit documents 

and other information necessary to 

conduct a verification under this 

section, provided to CBP by the 

government of Morocco consistent with 

the laws, regulations, and procedures of 

Morocco, will be treated in accordance 

with Article 6.6 of the MFTA. 

(e) Notification to Morocco; 

continuation of appropriate action. 

Prior to commencing appropriate action 

under paragraph (a) or (b) of this 

section, CBP will notify the government 

of Morocco. CBP may continue to take 

appropriate action under paragraph (a) 

or (b) of this section until it receives 

information sufficient to enable it to 

make the determination described in 

those paragraphs. 

§ 10.786 Issuance of negative origin 

determinations. 

If, as a result of an origin verification 

initiated under this subpart, CBP 

determines that a claim for preferential 

tariff treatment made under § 10.763 of 

this subpart should be denied, it will 

issue a determination in writing or via 

an authorized electronic data 

interchange system to the importer that 

sets forth the following: 

(a) A description of the good that was 

the subject of the verification together 

with the identifying numbers and dates 

of the export and import documents 

pertaining to the good; 

(b) A statement setting forth the 

findings of fact made in connection with 

the verification and upon which the 

determination is based; and 

(c) With specific reference to the rules 

applicable to originating goods as set 

forth in General Note 27, HTSUS, and 

in §§ 10.769 through 10.777 of this 

subpart, the legal basis for the 

determination. 

Penalties 

§ 10.787 Violations relating to the MFTA. 

All criminal, civil, or administrative 

penalties which may be imposed on 

U.S. importers for violations of the 

customs and related laws and 

regulations will also apply to U.S. 

importers for violations of the laws and 

regulations relating to the MFTA. 

Goods Returned After Repair or 

Alteration 

§ 10.788 Goods re-entered after repair or 

alteration in Morocco. 

(a) General. This section sets forth the 

rules that apply for purposes of 

obtaining duty-free treatment on goods 

returned after repair or alteration in 

Morocco as provided for in subheadings 

9802.00.40 and 9802.00.50, HTSUS. 

Goods returned after having been 

repaired or altered in Morocco, whether 

or not pursuant to a warranty, are 

eligible for duty-free treatment, 

provided that the requirements of this 

section are met. For purposes of this 

section, ‘‘repairs or alterations’’ means 

restoration, addition, renovation, redyeing, cleaning, re-sterilizing, or other 

treatment which does not destroy the 

essential characteristics of, or create a 

new or commercially different good 


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from, the good exported from the United 

States. 

(b) Goods not eligible for treatment. 

The duty-free treatment referred to in 

paragraph (a) of this section will not 

apply to goods which, in their condition 

as exported from the United States to 

Morocco, are incomplete for their 

intended use and for which the 

processing operation performed in 

Morocco constitutes an operation that is 

performed as a matter of course in the 

preparation or manufacture of finished 

goods. 

(c) Documentation. The provisions of 

§ 10.8(a), (b), and (c) of this part, relating 

to the documentary requirements for 

goods entered under subheading 

9802.00.40 or 9802.00.50, HTSUS, will 

apply in connection with the entry of 

goods which are returned from Morocco 

after having been exported for repairs or 

alterations and which are claimed to be 

duty free. 

PART 162—INSPECTION, SEARCH, 

AND SEIZURE 

■ 4. The authority citation for Part 162 

continues to read in part as follows: 

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

1592, 1593a, 1624. 

* * * * * 

■ 5. Section 162.0 is amended by 

revising the last sentence to read as 

follows: 

§ 162.0 Scope. 

* * * Additional provisions 

concerning records maintenance and 

examination applicable to U.S. 

importers, exporters and producers 

under the U.S.-Chile Free Trade 

Agreement, the U.S.-Singapore Free 

Trade Agreement, and the U.S.-Morocco 

Free Trade Agreement are contained in 

Part 10, Subparts H, I, and M of this 

chapter, respectively. 

PART 163—RECORDKEEPING 

■ 6. 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. 

* * * * * 

■ 7. Section 163.1(a)(2) is amended by 

re-designating paragraph (a)(2)(ix) as 

(a)(2)(x) and adding a new paragraph 

(ix) to read as follows: 

§ 163.1 Definitions. 

* * * 

(a) Records—

* * * 

(2) Activities * * * 

(ix) The maintenance of any 

documentation that the importer may 

have in support of a claim for 

preferential tariff treatment under the 

United States-Morocco Free Trade 

Agreement (MFTA), including a MFTA 

importer’s declaration. 

* * * * * 

■ 8. 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. * * * 

§ 10.765 MFTA records that the importer 

may have in support of a MFTA claim for 

preferential tariff treatment, including an 

importer’s declaration. 

* * * * * 

PART 178—APPROVAL OF 

INFORMATION COLLECTION 

REQUIREMENTS 

■ 9. 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. 

■ 10. Section 178.2 is amended by 

adding new listings ‘‘§§ 10.763 and 

10.764’’ to the table in numerical order 

to read as follows: 

§ 178.2 Listing of OMB control numbers. 

19 CFR Section Description OMB control No. 

* * * * * * * 

§§ 10.763 and 10.764 .............................. Claim for preferential tariff treatment under the U.S.-Morocco Free Trade Agreement.1651–0117 

* * * * * * * 

* * * * * 

Deborah J. Spero, 

Acting Commissioner, U.S. Customs and 

Border Protection. 

Timothy E. Skud, 

Deputy Assistant Secretary of the Treasury. 

[FR Doc. 07–3153 Filed 6–28–07; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9329] 

RIN 1545–BF16 

Guidance Necessary to Facilitate 

Business Electronic Filing and Burden 

Reduction; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations; correction. 

SUMMARY: This document contains a 

correction to final regulations (TD 9329) 

that were published in the Federal 

Register on Thursday, June 14, 2007 (72 

FR 32794) affecting taxpayers that file 

Federal income tax returns. They 

simplify, clarify, or eliminate reporting 

burdens and also eliminate regulatory 

impediments to the electronic filing of 

certain statements that taxpayers are 

required to include on or with their 

Federal income tax returns. 

DATES: The correction is effective June 

29, 2007. 

FOR FURTHER INFORMATION CONTACT: Grid 

Glyer, (202) 622–7930 (not a toll-free 

number). 

SUPPLEMENTARY INFORMATION:

Background 

The final regulations that are the 

subject of the correction are under 

sections 302, 331, 332, 338, 351, 355, 

368, 381, 382, 1081, 1221, 1502, 1563, 

and 6012 of the Internal Revenue Code. 

Need for Correction 

As published, final regulations (TD 

9329) contain an error that may prove to 


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