35154 Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Rules and Regulations 

[FR Doc. E7–12118 Filed 6–26–07; 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–2007–0001] 

[CBP Dec. 07–50] 

RIN 1505–AB75 

United States-Jordan Free Trade 

Agreement 

AGENCIES: Customs and Border 

Protection, Department of Homeland 

Security; Department of the Treasury. 

ACTION: Interim regulations; solicitation 

of comments. 

SUMMARY: This document amends title 

19 of the Code of Federal Regulations 

(‘‘CFR’’) on an interim basis to 

implement the preferential tariff 

treatment and other customs-related 

provisions of the U.S.-Jordan Free Trade 

Agreement entered into by the United 

States and the Hashemite Kingdom of 

Jordan. 

DATES: Interim rule effective June 27, 

2007; comments must be received by 

August 27, 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–2007–0001. 

• Mail: Trade and Commercial 

Regulations Branch, Regulations and 

Rulings, Office of International Trade, 

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: 

Operational Aspects: Seth Mazze, 

Office of International Trade (202–344–

2634). 

Legal Aspects: Holly Files, Office of 

International Trade (202–572–8817). 

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, 

information, or authority that support 

such recommended change. See 

ADDRESSES above for information on 

how to submit comments. 

Background 

On October 24, 2000, the United 

States and the Hashemite Kingdom of 

Jordan (the ‘‘Parties’’) signed the U.S.- 

Jordan Free Trade Agreement (‘‘US–

JFTA’’), which is designed to eliminate 

tariffs and other trade barriers between 

the two countries. The provisions of the 

US–JFTA were adopted by the United 

States with the enactment on September 

28, 2001 of the United States-Jordan 

Free Trade Area Implementation Act 

(the ‘‘Act’’), Public Law 107–43, 115 

Stat. 243 (19 U.S.C. 2112 note). On 

December 7, 2001, the President signed 

Proclamation 7512 to implement the 

provisions of the US–JFTA. The 

Proclamation, which was published in 

the Federal Register on December 13, 

2001 (66 FR 64497), modified the 

Harmonized Tariff Schedule of the 

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

Annexes I and II of the Proclamation. 

The modifications to the HTSUS 

included the addition of new General 

Note 18, incorporating the relevant US–

JFTA 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 US–JFTA where the special program 

indicator ‘‘JO’’ appears in parenthesis in 

the ‘‘Special’’ rate of duty subcolumn. 

U.S. Customs and Border Protection 

(‘‘CBP’’) is responsible for administering 

the provisions of the US–JFTA and the 

Act that relate to the importation of 

goods into the United States from 

Jordan. Therefore, the regulations set 

forth in this document pertain 

specifically to US–JFTA customs-related 

provisions, such as rules of origin, that 

govern the duty-free or reduced-duty 

treatment of products imported into the 

United States from Jordan. These rules 

do not confer origin or establish a 

criterion for determining the origin of 

imported goods for any other purpose. 

For example, origin determinations for 

country of origin marking purposes 

under 19 U.S.C. 1304 are not affected. 

Article 2 and Annex 2.2 of the US–

JFTA set forth the rules of origin and 

documentary requirements that apply 

for purposes of obtaining preferential 

treatment under the US–JFTA. Annex 

2.1 of the US–JFTA sets forth the terms 

for the immediate elimination or staged 

reduction of duties on products of 

Jordan, with all products to become 

duty free within a ten-year period (by 

the year 2010). 

Under Annex 2.2 of the US–JFTA and 

§ 102 of the Act, to be eligible for 

reduced or duty-free treatment under 

the US–JFTA, a good imported into the 

United States from Jordan must meet 

three basic requirements: (1) It must be 

imported directly from Jordan into the 

customs territory of the United States; 

(2) it must be a product of Jordan, i.e., 

it must be either wholly the growth, 

product, or manufacture of Jordan or a 

new or different article of commerce 

that has been grown, produced, or 

manufactured in Jordan; and (3) if it is 

a new or different article of commerce, 

it must have a minimum domestic 

content, i.e., at least 35 percent of its 

appraised value must be attributed to 

the cost or value of materials produced 

in Jordan plus the direct costs of 

processing operations performed in 

Jordan. Annex 2.2 of the US–JFTA 

further provides that: (1) The cost or 

value of U.S.-produced materials may be 

counted toward the Jordanian domestic 

content requirement to a maximum of 

15 percent of the appraised value of the 

imported good; and (2) simple 

combining or packaging operations or 

mere dilution with water or another 

substance will confer neither Jordanian 

origin on an imported good nor 

Jordanian or U.S. origin on a constituent 

material of an imported good. 

In addition, for purposes of 

demonstrating compliance with the 

origin criteria, Annex 2.2 of the US–


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JFTA establishes the requirements for 

submitting a declaration, when 

requested by CBP, that provides all 

pertinent information concerning the 

production or manufacture of an 

imported good. 

In this document, CBP is setting forth 

in a new Subpart K in Part 10 of title 

19 of the Code of Federal Regulations 

(CBP regulations) on an interim basis, 

regulations to implement the 

preferential tariff treatment and other 

customs-related provisions of the US–

JFTA. 

The interim regulations are discussed 

in detail below. 

Discussion of Amendments 

Part 10, Subpart K 

General Provisions 

Section 10.701 outlines the scope of 

new Subpart K, Part 10, of the CBP 

regulations. This section also clarifies 

that, except where the context otherwise 

requires, the requirements contained in 

Subpart K, 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 K, 

Part 10, are in addition to the basic 

entry requirements contained in Parts 

141–143 of the CBP regulations. 

Section 10.702 sets forth definitions 

of terms or expressions used in multiple 

contexts or places within Subpart K, 

Part 10. The definition of ‘‘wholly the 

growth, product, or manufacture of 

Jordan’’ in paragraph (r) reflects the 

definition set forth in Annex 2.2 of the 

US–JFTA except that reference is made 

to ‘‘Jordan’’ rather than to a ‘‘Party’’ in 

order to reflect a U.S. import context. 

Additional definitions that apply in a 

more limited Subpart K, Part 10, context 

are set forth elsewhere with the 

substantive provisions to which they 

relate. 

Import Requirements 

Section 10.703 sets forth the 

procedure for claiming US–JFTA 

preferential tariff treatment at the time 

of importation. Unlike certain other free 

trade agreements to which the United 

States is a Party, such as the North 

American Free Trade Agreement 

(NAFTA) and the United States-Chile 

Free Trade Agreement (US–CFTA), the 

US–JFTA does not specify a procedure 

for making a post-importation claim. 

Therefore, Subpart K, Part 10, contains 

no regulatory provisions governing such 

claims. However, a protest against an 

alleged error in the liquidation of an 

entry may be brought under the normal 

procedures to contest a denial of US–

JFTA benefits (see Part 174, CBP 

regulations (19 CFR Part 174)). 

Section 10.704, as provided in Annex 

2.2, paragraph 10(b), of the US–JFTA, 

requires a U.S. importer, upon request, 

to submit a declaration setting forth all 

pertinent information concerning the 

production or manufacture of the good. 

Section 10.705 sets forth certain 

importer obligations regarding the 

truthfulness of information and 

documents submitted in support of a 

claim for preferential tariff treatment. 

Section 10.706 provides that the 

importer’s declaration is not required 

for certain non-commercial or low-value 

importations. 

Section 10.707 implements the 

portion of Annex 2.2, paragraph 10(b) of 

the US–JFTA concerning the 

maintenance of records necessary for 

the preparation of the declaration. 

Section 10.708 provides for the denial 

of US–JFTA tariff benefits if the 

importer fails to comply with any of the 

requirements under Subpart K, Part 10, 

CBP regulations. 

Rules of Origin 

Section 10.709 sets forth the basic 

country of origin rules for obtaining 

preferential tariff treatment under the 

US–JFTA, as set forth in Annex 2.2 of 

the US–JFTA, § 102 of the Act, and 

General Note 18, HTSUS. Paragraph 

(a)(1) requires an eligible US–JFTA good 

to be either ‘‘wholly the growth, 

product, or manufacture of Jordan’’ or 

‘‘new or different article of commerce 

which has been grown, produced, or 

manufactured in Jordan,’’ reflecting 

standards set forth in Annex 2.2, 

paragraph 1(a), of the US–JFTA and 

§ 102(a)(1)(A)(ii) of the Act. Paragraph 

(a)(2) of § 10.709 references the valuecontent requirement set forth in Annex 

2.2, paragraph 1(c), of the US–JFTA and 

§ 102(a)(1)(B) of the Act. 

Paragraph (b)(1) of § 10.709 

implements Annex 2.2, paragraph 2, of 

the US–JFTA and § 102(a)(2) of the Act, 

relating to the simple combining or 

packaging or mere dilution exceptions 

to the ‘‘new or different article of 

commerce’’ requirement. Since the 

language in the US–JFTA and the Act in 

this regard is identical to that used in 

the Caribbean Basin Economic Recovery 

Act (‘‘CBERA’’) (see 19 U.S.C. 

2703(a)(2)), paragraph (b)(1) 

incorporates by reference the examples 

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

of CBP’s implementing CBERA 

regulations (19 CFR 10.195(a)(2)). 

Paragraph (b)(2) reflects the exception to 

the ‘‘new or different article of 

commerce’’ requirement set forth in the 

footnote to Annex 2.2, paragraph 4, of 

the US–JFTA and in § 102(d) of the Act, 

relating to the processing of certain 

fruits into juices. 

Paragraph (c) of § 10.709 provides that 

the rules of origin for textile and apparel 

products found in § 102.21 of the CBP 

regulations (19 CFR 102.21) will be used 

to determine whether textile and 

apparel goods from Jordan satisfy the 

‘‘wholly the growth, product, or 

manufacture’’ or ‘‘new or different 

article of commerce’’ requirements of 

§ 10.709(a), consistent with Annex 2.2, 

paragraph 9, of the US–JFTA and 

§ 102(c) of the Act. 

Section 10.710 sets forth provisions 

relating to the 35 percent value-content 

requirement of the US–JFTA. Paragraph 

(a) specifies the basic requirement 

contained in Annex 2.2, paragraph 1(c), 

of the US–JFTA and § 102(a)(1)(B)(i) of 

the Act. 

Paragraph (b) allows the inclusion of 

U.S.-produced materials up to 15 

percent of the appraised value, as 

provided for in Annex 2.2, paragraph 5, 

of the US–JFTA and § 102(a)(1)(B)(ii) of 

the Act. Paragraph (c) concerns the cost 

or value of materials that may be 

applied toward satisfaction of the 35 

percent value-content requirement and 

is based on provisions contained in the 

US–JFTA, the Act, and § 10.196 of CBP’s 

CBERA regulations (19 CFR 10.196). 

Paragraph (c)(1) defines ‘‘materials 

produced in Jordan’’ in a manner 

similar to the approach taken in section 

10.196(a) of CBP’s CBERA regulations. 

Paragraph (c)(1)(ii) was specifically 

drafted to reflect: (1) The application of 

the simple combining or packaging or 

mere dilution language to materials, as 

provided in Annex 2.2, paragraph 2, of 

the US–JFTA; and (2) the country of 

origin language which also applies to 

materials under Annex 2.2, paragraph 4, 

of the US–JFTA. The last sentence of 

paragraph (c)(1)(ii) refers to the useful 

examples contained in § 10.196(a) of 

CBP’s CBERA regulations, and the 

words ‘‘except where the context 

otherwise requires’’ are intended to alert 

the reader to the fact that some aspects 

of those examples apply only in a 

CBERA context. Paragraph (c)(2) sets 

forth the elements includable under the 

cost or value of materials, as provided 

in Annex 2.2, paragraph 6, of the US–

JFTA. 

Paragraph (d) sets forth provisions 

regarding direct costs of processing 

operations for purposes of the 35 

percent value-content requirement, as 

contained in Annex 2.2, paragraph 7, of 

the US–JFTA and § 102(b) of the Act. 

Section 10.711 reflects the definition 

of ‘‘imported directly,’’ as set forth in 

Annex 2.2, paragraph 8, of the US–

JFTA. 


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Section 10.712 provides that claims 

for preferential tariff treatment under 

the US–JFTA will be subject to such 

verification as the CBP port director 

deems necessary. 

Inapplicability of Notice and Delayed 

Effective Date Requirements 

Under the Administrative Procedure 

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

generally are required to publish a 

notice of proposed rulemaking in the 

Federal Register that solicits public 

comment on the proposed regulatory 

amendments, consider public comments 

in deciding on the 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 

apply to an agency rulemaking to the 

extent that it involves a foreign affairs 

function of the United States. CBP has 

determined that these interim 

regulations involve a foreign affairs 

function of the United States because 

they implement preferential tariff 

treatment and related provisions of the 

US–JFTA. 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 1651–0128. 

The collections of information in 

these regulations are in §§ 10.703 and 

10.704. This information is required in 

connection with claims for preferential 

tariff treatment and for the purpose of 

the exercise of other rights under the 

US–JFTA and the Act and will be used 

by CBP to determine eligibility for a 

tariff preference or other rights or 

benefits under the US–JFTA and the 

Act. The likely respondents are business 

organizations including importers, 

exporters and manufacturers. 

Estimated total annual reporting 

burden: 500. 

Estimated average annual burden per 

respondent: 12 minutes. 

Estimated number of respondents: 

2,500. 

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 section 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, 

Exports, Imports, Preference programs, 

Reporting and recordkeeping 

requirements, Trade agreements (United 

States-Jordan Free Trade Agreement). 

19 CFR Part 163 

Administrative practice and 

procedure, Customs duties and 

inspection, Exports, Imports, 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 new Subpart K 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 10.701 through 10.712 also issued 

under 19 U.S.C. 1202 (General Note 18, 

HTSUS) and Pub. L. 107–43, 115 Stat. 243 

(19 U.S.C. 2112 note). 

■ 2. Part 10, CBP regulations, is 

amended by adding Subpart K to read 

as follows: 

Subpart K—United States-Jordan Free 

Trade Agreement 

General Provisions 

Sec. 

10.701 Scope. 

10.702 Definitions. 

Import Requirements 

10.703 Filing of claim for preferential tariff 

treatment. 

10.704 Declaration. 

10.705 Importer obligations. 

10.706 Declaration not required. 

10.707 Maintenance of records. 

10.708 Effect of noncompliance; failure to 

provide documentation regarding thirdcountry transportation. 

Rules of Origin 

10.709 Country of origin criteria. 

10.710 Value-content requirement. 

10.711 Imported directly. 

Origin Verifications 

10.712 Verification of claim for preferential 

tariff treatment. 

Subpart K—United States-Jordan Free 

Trade Agreement 

General Provisions 

§ 10.701 Scope. 

This subpart implements the duty 

preference and related customs 

provisions applicable to imported goods 

under the United States-Jordan Free 


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Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Rules and Regulations 35157 

Trade Agreement (the US–JFTA) signed 

on October 24, 2000, and under the 

United States-Jordan Free Trade Area 

Implementation Act (the Act; 115 Stat. 

243). 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 US–

JFTA are contained in Part 163 of this 

chapter. 

§ 10.702 Definitions. 

The following definitions apply for 

purposes of §§ 10.701 through 10.712: 

(a) 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 US–JFTA; 

(b) Customs authority. ‘‘Customs 

authority’’ means the competent 

authority that is responsible under the 

law of a country for the administration 

of customs laws and regulations; 

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

unless otherwise specified; 

(e) Entered. ‘‘Entered’’ means entered, 

or withdrawn from warehouse for 

consumption, in the customs territory of 

the United States; 

(f) Good. ‘‘Good’’ means any 

merchandise, product, article, or 

material; 

(g) Harmonized System. ‘‘Harmonized 

System’’ 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; 

(h) Heading. ‘‘Heading’’ means the 

first four digits in the tariff classification 

number under the Harmonized System; 

(i) HTSUS. ‘‘HTSUS’’ means the 

Harmonized Tariff Schedule of the 

United States as promulgated by the 

U.S. International Trade Commission; 

(j) Material. ‘‘Material’’ means a good 

that is used in the production of another 

good; 

(k) New or different article of 

commerce. ‘‘New or different article of 

commerce’’ means a good that has been 

substantially transformed into a new 

and different article of commerce having 

a new name, character, or use distinct 

from the good or material from which it 

was so transformed; 

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

States or the Hashemite Kingdom of 

Jordan; 

(m) Preferential tariff treatment. 

‘‘Preferential tariff treatment’’ means the 

duty rate applicable under the US–

JFTA; 

(n) Subheading. ‘‘Subheading’’ means 

the first six digits in the tariff 

classification number under the 

Harmonized System; 

(o) Territory. ‘‘Territory’’ means: 

(1) With respect to Jordan, the land, 

maritime and air space under its 

sovereignty, and the exclusive economic 

zone 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; 

(p) 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 

‘‘the ATC’’), which is part of the WTO 

Agreement; 

(q) WTO Agreement. ‘‘WTO 

Agreement’’ means the Marrakesh 

Agreement Establishing the World Trade 

Organization of April 15, 1994; 

(r) Wholly the growth, product, or 

manufacture of Jordan. ‘‘Wholly the 

growth, product, or manufacture of 

Jordan’’ refers both to any good which 

has been entirely grown, produced, or 

manufactured in Jordan and to all 

materials incorporated in a good which 

have been entirely grown, produced, or 

manufactured in Jordan, as 

distinguished from goods or materials 

imported into Jordan from another 

country, whether or not such goods or 

materials were substantially 

transformed into new or different 

articles of commerce after their 

importation into Jordan. 

Import Requirements 

§ 10.703 Filing of claim for preferential 

tariff treatment. 

An importer may make a claim for 

US–JFTA preferential tariff treatment by 

including on the entry summary, or 

equivalent documentation, the symbol 

‘‘JO’’ 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. 

§ 10.704 Declaration. 

(a) Contents. An importer who claims 

preferential tariff treatment for a good 

under the US–JFTA must submit, at the 

request of the port director, a 

declaration setting forth all pertinent 

information concerning the 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; 

(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, 

quantity, numbers, and marks of 

packages, invoice numbers, and bills of 

lading; 

(vi) A description of the operations 

performed in the production of the good 

in Jordan and identification of the direct 

costs of processing operations; 

(vii) A description of any materials 

used in the production of the good that 

are wholly the growth, product, or 

manufacture of Jordan or the United 

States, and a statement as to the cost or 

value of such materials; 

(viii) A description of the operations 

performed on, and a statement as to the 

origin and cost or value of, any foreign 

materials used in the good that are 

claimed to have been sufficiently 

processed in Jordan so as to be materials 

produced in Jordan; and 

(ix) A description of the origin and 

cost or value of any foreign materials 

used in the good that have not been 

substantially transformed in Jordan. 

(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; 


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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-Jordan Free Trade Agreement; and 

This document consists of ll pages, 

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. 

§ 10.705 Importer obligations. 

(a) General. An importer who makes 

a claim for preferential tariff treatment 

under § 10.703 of this subpart: 

(1) Will be deemed to have certified 

that the good is eligible for preferential 

tariff treatment under the US–JFTA: 

(2) Is responsible for the truthfulness 

of the information and data contained in 

the declaration provided for in § 10.704 

of this subpart; 

(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. 

§ 10.706 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 § 10.704 

of this subpart for: 

(1) A non-commercial importation of 

a good; or 

(2) A commercial importation for 

which the value of the 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 US–JFTA, 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. 

§ 10.707 Maintenance of records. 

(a) General. An importer claiming 

preferential tariff treatment for a good 

under § 10.703 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. 

§ 10.708 Effect of noncompliance; failure 

to provide documentation regarding thirdcountry transportation. 

(a) Effect of noncompliance. If the 

importer fails to comply with any 

requirement under this subpart, 

including submission of a complete 

declaration under § 10.704 of this 

subpart, when requested, the port 

director may deny preferential tariff 

treatment to the imported good. 

(b) Failure to provide documentation 

regarding third country transportation. 

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 a 

country other than Jordan or the United 

States, 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’’, as 

that term is defined in § 10.711(a) of this 

subpart. 

Rules of Origin 

§ 10.709 Country of origin criteria. 

(a) General. Except as otherwise 

provided in paragraph (b) of this 

section, a good imported directly from 

Jordan into the customs territory of the 

United States will be eligible for 

preferential tariff treatment under the 

US–JFTA only if: 

(1) The good is either: 

(i) Wholly the growth, product, or 

manufacture of Jordan; or 

(ii) A new or different article of 

commerce that has been grown, 

produced, or manufactured in Jordan; 

and 

(2) With respect to a good described 

in paragraph (a)(1)(ii) of this section, the 

good satisfies the value-content 

requirement specified in § 10.710 of this 

subpart. 

(b) Exceptions—(1) Combining, 

packaging, and diluting operations. No 

good will be considered to meet the 

requirements of paragraph (a)(1) of this 

section by virtue of having merely 

undergone simple combining or 

packaging operations, or mere dilution 

with water or mere dilution with 

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. 

(2) Certain juices. A good will not be 

considered to meet the requirements of 

paragraph (a)(1) of this section if the 

good: 

(i) Is imported into Jordan, and, at the 

time of importation, would be classified 

in heading 0805, HTSUS; and 

(ii) Is processed in Jordan into a good 

classified in any of subheadings 2009.11 

through 2009.30, HTSUS. 

(c) Textile and apparel goods. For 

purposes of determining whether a 

textile or apparel good meets the 

requirements of paragraph (a)(1) of this 

section, the provisions of § 102.21 of 

this chapter will apply. 

§ 10.710 Value-content requirement. 

(a) General. A good described in 

§ 10.709(a)(1)(ii) may be eligible for 

preferential tariff treatment under the 

US–JFTA only if the sum of the cost or 

value of the materials produced in 

Jordan, plus the direct costs of 

processing operations performed in 

Jordan, is not less than 35 percent of the 

appraised value of the good at the time 

it is entered. 

(b) Materials produced in the United 

States. For purposes of determining the 

percentage referred to paragraph (a) of 


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Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Rules and Regulations 35159 

this section, an amount not to exceed 15 

percent of the appraised value of the 

good at the time it is entered may be 

attributed to the cost or value of 

materials produced in the customs 

territory of the United States. A material 

is ‘‘produced in the customs territory of 

the United States’’ for purposes of this 

paragraph if it is either: 

(1) Wholly the growth, product, or 

manufacture of the United States; or 

(2) Subject to the exceptions specified 

in § 10.709(b) of this subpart, 

substantially transformed in the United 

States into a new and different article of 

commerce that has a new name, 

character, or use, which is then used in 

Jordan in the production or manufacture 

of a new or different article of commerce 

that is imported into the United States. 

Except where the context otherwise 

requires, the examples set forth in 

§ 10.196(a) of this part will apply for 

purposes of this paragraph. 

(c) Cost or value of materials—(1) 

Materials produced in Jordan defined. 

For purposes of paragraph (a) of this 

section, the words ‘‘materials produced 

in Jordan’’ refer to those materials 

incorporated into a good that are either: 

(i) Wholly the growth, product, or 

manufacture of Jordan; or 

(ii) Subject to the exceptions specified 

in § 10.709(b) of this subpart, 

substantially transformed in Jordan into 

a new and different article of commerce 

that has a new name, character, or use, 

which is then used in Jordan in the 

production or manufacture of a new or 

different article of commerce that is 

imported into the United States. Except 

where the context otherwise requires, 

the examples set forth in § 10.196(a) of 

this part will apply for purposes of this 

paragraph. 

(2) Determination of cost or value of 

materials. (i) Except as provided in 

paragraph (c)(2)(ii) of this section, the 

cost or value of materials produced in 

Jordan or in the United States includes: 

(A) The manufacturer’s actual cost for 

the materials; 

(B) When not included in the 

manufacturer’s actual cost for the 

materials, the freight, insurance, 

packing, and all other costs incurred in 

transporting the materials to the 

manufacturer’s plant; 

(C) The actual cost of waste or 

spoilage, less the value of recoverable 

scrap; and 

(D) Taxes and/or duties imposed on 

the materials by a Party, provided they 

are not remitted upon exportation. 

(ii) Where a material is provided to 

the manufacturer without charge, or at 

less than fair market value, its cost or 

value will be determined by computing 

the sum of: 

(A) All expenses incurred in the 

growth, production, or manufacture of 

the material, including general 

expenses; 

(B) An amount for profit; and 

(C) Freight, insurance, packing, and 

all other costs incurred in transporting 

the material to the manufacturer’s plant. 

(iii) If the pertinent information 

needed to compute the cost or value of 

a material is not available, the port 

director may ascertain or estimate the 

value thereof using all reasonable ways 

and means at his or her disposal. 

(d) Direct costs of processing 

operations—(1) Items included. For 

purposes of paragraph (a) of this section, 

the words ‘‘direct costs of processing 

operations’’ mean those costs either 

directly incurred in, or which can be 

reasonably allocated to, the growth, 

production, manufacture, or assembly of 

the specific goods 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 goods: 

(i) All actual labor costs involved in 

the growth, production, manufacture, or 

assembly of the specific goods, 

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 goods; 

(iii) Research, development, design, 

engineering, and blueprint costs insofar 

as they are allocable to the specific 

goods; and 

(iv) Costs of inspecting and testing the 

specific goods. 

(2) Items not included. For purposes 

of paragraph (a) of this section, the 

words ‘‘direct costs of processing 

operations’’ do not include items that 

are not directly attributable to the goods 

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 goods or are not related to 

the growth, production, manufacture, or 

assembly of the goods, such as 

administrative salaries, casualty and 

liability insurance, advertising, and 

salesmen’s salaries, commissions, or 

expenses. 

§ 10.711 Imported directly. 

(a) General. To be eligible for 

preferential tariff treatment under the 

US–JFTA, a good must be imported 

directly from Jordan into the customs 

territory of the United States. For 

purposes of this requirement, the words 

‘‘imported directly’’ mean: 

(1) Direct shipment from Jordan to the 

United States without passing through 

the territory of any intermediate 

country; 

(2) If shipment is from Jordan to the 

United States through the territory of an 

intermediate country, the goods 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 goods 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 goods 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 goods in good 

condition. 

(b) Documentary evidence. An 

importer making a claim for preferential 

tariff treatment under the US–JFTA may 

be required to demonstrate, to CBP’s 

satisfaction, that the goods 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. 

Origin Verifications 

§ 10.712 Verification of claim for 

preferential treatment. 

A claim for preferential tariff 

treatment made under § 10.703 of this 

subpart, including any statements 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 for any reason is prevented 

from verifying the claim, or is provided 

with insufficient information to verify 

or substantiate the claim, the port 

director may deny the claim for 

preferential tariff treatment. 


pwalker on PROD1PC71 with RULES
35160 Federal Register / Vol. 72, No. 123 / Wednesday, June 27, 2007 / Rules and Regulations 

PART 163—RECORDKEEPING 

■ 3. 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. 

* * * * * 

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

redesignating paragraph (a)(2)(viii) as 

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

(viii) to read as follows: 

§ 163.1 Definitions. 

* * * * * 

(a) * * * 

(2) * * * 

(viii) The maintenance of any 

documentation that the importer may 

have in support of a claim for 

preferential tariff treatment under the 

United States-Jordan Free Trade 

Agreement (US–JFTA), including a US–

JFTA declaration. 

* * * * * 

■ 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. * * * 

§ 10.704 US–JFTA records that the 

importer may have in support of a US–JFTA 

claim for preferential tariff treatment, 

including an importer’s declaration. 

* * * * * 

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 for §§ 10.703 and 10.704 to 

the table in numerical order to read as 

follows: 

§ 178.2 Listing of OMB control numbers. 

19 CFR section Description OMB 

control No. 

* * * * * * * 

§§ 10.703 and 10.704 .................. Claim for preferential tariff treatment under the U.S.-Jordan Free Trade Agreement ................. 1651–0128. 

* * * * * * * 

* * * * * 

Deborah J. Spero, 

Acting Commissioner, Customs and Border 

Protection. 

Approved: June 21, 2007. 

Timothy E. Skud, 

Deputy Assistant Secretary of the Treasury. 

[FR Doc. 07–3133 Filed 6–26–07; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[CGD01–07–071] 

Drawbridge Operation Regulations; 

Long Island, New York Inland 

Waterway From Rockaway Inlet to 

Shinnecock Canal, Atlantic Beach, NY 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of temporary deviation 

from regulations. 

SUMMARY: The Commander, First Coast 

Guard District, has issued a temporary 

deviation from the regulation governing 

the operation of the Atlantic Beach 

Bridge, mile 0.4, across Reynolds 

Channel at Atlantic Beach, New York. 

Under this temporary deviation a onehour advance notice will be required for 

bridge openings between 7 a.m. and 

3:30 p.m., Monday through Friday, from 

July 23, 2007 through August 3, 2007. 

This deviation is necessary to facilitate 

bridge steel deck grating replacement. 

DATES: This deviation is effective from 

7 a.m. on July 23, 2007 through 3:30 

p.m. August 3, 2007. 

ADDRESSES: Materials referred to in this 

document are available for inspection or 

copying at the First Coast Guard 

District, Bridge Branch Office, 408 

Atlantic Avenue, Boston, Massachusetts 

02110, between 7 a.m. and 3 p.m., 

Monday through Friday, except Federal 

holidays. The telephone number is (617) 

223–8364. The First Coast Guard 

District Bridge Branch Office maintains 

the public docket for this temporary 

deviation. 

FOR FURTHER INFORMATION CONTACT: Judy 

Leung-Yee, Project Officer, First Coast 

Guard District, at (212) 668–7195. 

SUPPLEMENTARY INFORMATION: The 

Atlantic Beach Bridge, across Reynolds 

Channel, mile 0.4, at Atlantic Beach, 

New York, has a vertical clearance in 

the closed position of 25 feet at mean 

high water and 30 feet at mean low 

water. The existing drawbridge 

operation regulations are listed at 33 

CFR 117.799(e). 

The owner of the bridge, Nassau 

County Bridge Authority, requested a 

temporary deviation to facilitate the 

replacement of steel deck grating at the 

bridge. 

Under this temporary deviation, from 

July 23, 2007 through August 3, 2007, a 

one-hour advance notice for bridge 

openings shall be required between 7 

a.m. and 3:30 p.m., Monday through 

Friday, at the Atlantic Beach Bridge, 

mile 0.4, across Reynolds Channel, at 

Atlantic Beach, New York. Notice may 

be given by calling the bridge tender on 

VHF channel 13, or by telephone at 

(516) 239–1821. 

In accordance with 33 CFR 117.35(e), 

the bridge must return to its regular 

operating schedule immediately at the 

end of the designated time period. This 

deviation from the operating regulations 

is authorized under 33 CFR 117.35. 

Dated: June 18, 2007. 

Gary Kassof, 

Bridge Program Manager, First Coast Guard 

District. 

[FR Doc. E7–12372 Filed 6–26–07; 8:45 am] 

BILLING CODE 4910–15–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[CGD09–07–040] 

RIN 1625–AA00 

Safety Zone; Ferrier Picnic, Lake Erie, 

Fairview, PA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone on 

Lake Erie, Fairview, PA. This zone is 

intended to restrict vessels from a 

portion of Lake Erie during the Fairview 


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