Federal Register / Vol. 62, No. 170 / Wednesday, September 3, 1997 / Rules and Regulations 46443

Virgin Islands. The rate of duty on

articles accompanying any person,

including a crewmember, arriving in the

United States directly or indirectly from

American Samoa, Guam, the

Commonwealth of the Northern Mariana

Islands or the Virgin Islands of the

United States (exclusive of duty-free

articles), acquired in these locations as

an incident of the person’s physical

presence there, shall be 5 percent of the

fair retail value in the location in which

acquired.

* * * * *

§ 148.104 [Amended]

19. Section 148.104(c) is amended by

removing the figure ‘‘$800’’ and adding,

in its place, the figure ‘‘$1,000’’.

Subpart K [Amended]

20. The heading to Subpart K is

amended by adding after ‘‘Guam,’’ the

words ‘‘the Commonwealth of the

Northern Mariana Islands,’’.

§ 148.110 [Amended]

21. In § 148.110, the first paragraph is

amended by adding after ‘‘Guam,’’ the

words ‘‘the Commonwealth of the

Northern Mariana Islands,’’; and the

second paragraph is amended by adding

after ‘‘Guam’’ the words ‘‘, the

Commonwealth of the Northern Mariana

Islands,’’.

§ 148.111 [Amended]

22. In § 148.111, the introductory text

is amended by adding after ‘‘Guam,’’ the

words ‘‘the Commonwealth of the

Northern Mariana Islands,’’; and

paragraph (a) is amended by removing

the figure ‘‘$800’’ and adding, in its

place, the figure ‘‘$1,200’’.

§ 148.113 [Amended]

23. Section 148.113(a), first sentence,

is amended by removing the figure

‘‘$800’’ and adding, in its place, the

figure ‘‘$1,200’’.

PART 178—APPROVAL OF

INFORMATION COLLECTION

REQUIREMENTS

1. The authority citation for part 178

continues to read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44

U.S.C. 3501 et seq.

2. Section 178.2 is amended by

adding a new listing to the table in

numerical order to read as follows:

§ 178.2 Listing of OMB control numbers.

19 CFR section Description OMB control No.

* * * * * * *

§ 7.3 ............................................................................................... Claim for duty-free entry of goods imported from U.S. insular

possessions.

1515–0055

* * * * * * *

Approved: May 27, 1997.

George J. Weise,

Commissioner of Customs.

[FR Doc. 97–23308 Filed 9–2–97; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Part 558

New Animal Drugs For Use In Animal

Feeds; Pyrantel Tartrate

AGENCY: Food and Drug Administration,

HHS.

ACTION: Final rule.

SUMMARY: The Food and Drug

Administration (FDA) is amending the

animal drug regulations to reflect

approval of an abbreviated new animal

drug applications (ANADA) filed by

Equi Aid Products, Inc. The ANADA

provides for using pyrantel tartrate Type

A medicated articles to make Type B

medicated feeds used as equine

anthelmintics.

EFFECTIVE DATE: September 3, 1997.

FOR FURTHER INFORMATION CONTACT:

Lonnie W. Luther, Center for Veterinary

Medicine (HFV–102), Food and Drug

Administration, 7500 Standish Pl.,

Rockville, MD 20855, 301–827–0209.

SUPPLEMENTARY INFORMATION: Equi Aid

Products, Inc., 1517 West Knudsen Dr.,

Phoenix, AZ 85027, filed ANADA 200–

168, which provides for using pyrantel

tartrate Type A medicated articles to

make Type B medicated feeds for horses

for prevention of Strongylus vulgaris

larval infections and control of the

following parasites in horses: (1) Large

strongyles (adults) S. vulgaris, S.

edentatus, Triodontophorus spp.; (2)

small strongyles (adults and fourth-stage

larvae) Cyathostomum spp.,

Cylicocyclus spp., Cylicostephanus spp.,

Cylicodontophorus spp., Poteriostomum

spp.; (3) pinworm (adults and fourthstage larvae) Oxyuris equi; and (4)

ascarids (adults and fourth-stage larvae)

Parascaris equorum.

Equi Aid’s ANADA 200–168 is

approved as a generic copy of Pfizer’s

NADA 140–819. The ANADA is

approved as of September 3, 1997 and

21 CFR 558.485(a) is amended to reflect

the approval. The basis for approval is

discussed in the freedom of information

summary.

In accordance with the freedom of

information provisions of 21 CFR part

20 and 514.11(e)(2)(ii), a summary of

safety and effectiveness data and

information submitted to support

approval of this application may be seen

in the Dockets Management Branch

(HFA–305), Food and Drug

Administration, 12420 Parklawn Dr.,

rm. 1–23, Rockville, MD 20857, between

9 a.m. and 4 p.m., Monday through

Friday.

The agency has determined under 21

CFR 25.24(d)(1)(i) that this action is of

a type that does not individually or

cumulatively have a significant effect on

the human environment. Therefore,

neither an environmental assessment

nor an environmental impact statement

is required.

List of Subjects in 21 CFR Part 558

Animal drugs, Animal feeds.

Therefore, under the Federal Food,

Drug, and Cosmetic Act and under the

authority delegated to the Commissioner

of Food and Drugs and redelegated to

the Center for Veterinary Medicine, 21

CFR part 558 is amended as follows:

PART 558—NEW ANIMAL DRUGS FOR

USE IN ANIMAL FEEDS

1. The authority citation for 21 CFR

part 558 continues to read as follows:

Authority: Secs. 512, 701 of the Federal

Food, Drug, and Cosmetic Act (21 U.S.C.

360b, 371).

2. Section 558.485 is amended by

adding new paragraph (a)(28) to read as

follows:
46444 Federal Register / Vol. 62, No. 170 / Wednesday, September 3, 1997 / Rules and Regulations

§ 558.485 Pyrantel tartrate.

(a) * * *

(28) To 062240: 48 grams per pound,

paragraph (e)(2) of this section.

* * * * *

Dated: August 22, 1997.

Michael J. Blackwell,

Deputy Director, Center for Veterinary

Medicine.

[FR Doc. 97–23245 Filed 9–2–97; 8:45 am]

BILLING CODE 4160–01–F

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 344

[Department of the Treasury Circular, Public

Debt Series No. 3–72]

Regulations Governing United States

Treasury Certificates of Indebtedness,

Treasury Notes, and Treasury Bonds—

State and Local Government Series

AGENCY: Bureau of the Public Debt,

Fiscal Service, Treasury.

ACTION: Final rule.

SUMMARY: The Department of the

Treasury (Department or Treasury) is

issuing in final form an amendment to

its regulations governing State and Local

Government Series (SLGS) securities. It

has been brought to the attention of the

Department that the SLGS securities

program can be misused when

subscriptions for SLGS securities are

used as a cost-free interest rate hedge or

option (option) for speculation in open

market securities. This final rule

clarifies that the use of SLGS securities

for option purposes is prohibited. The

purpose of the SLGS securities program

is to assist state and local government

issuers of tax-exempt bonds in meeting

certain Federal tax restrictions, not to

provide a cost-free option.

Treasury is considering first, whether

it would be consistent with the

purposes of the SLGS securities program

to allow SLGS securities to serve as

options if Treasury were appropriately

compensated and second, if the answer

to the first question is affirmative,

whether there is a practical way for the

Department to charge for the use of

SLGS securities as options. Neither

question, however, has yet been

answered. Unless Treasury does

determine that it would be both

advisable and practical to allow SLGS

securities to serve as options if Treasury

is appropriately compensated, the use of

SLGS securities for such purpose will

continue to be an inappropriate use of

SLGS securities.

EFFECTIVE DATE: September 3, 1997.

FOR FURTHER INFORMATION CONTACT:

Howard Stevens, Director, Division of

Special Investments at 304–480–7752,

Jim Kramer-Wilt, Attorney/Adviser,

Office of the Chief Counsel, at 304–480–

5190 or Edward C. Gronseth, Deputy

Chief Counsel, Office of the Chief

Counsel, at 304–480–5192.

SUPPLEMENTARY INFORMATION:

1. Background

The SLGS securities program was

established and is maintained to assist

state and local government issuers in

meeting yield restriction and rebate

requirements applicable to tax-exempt

bonds under the Internal Revenue Code.

On October 28, 1996, the Department

published revised regulations to make

the SLGS securities program a more

flexible and competitive investment

vehicle for issuers. In response to

requests by state and local government

issuers to shorten the minimum time for

subscribing for SLGS securities, the

Treasury revised the regulations to

permit an issuer to subscribe for SLGS

securities up to 60 days prior to their

scheduled issue date and then to cancel

that subscription within five days of

that issue date for subscriptions of $10

million or less and within seven days

for subscriptions of more than $10

million, without penalty. The

regulations also provide that an issuer

canceling a SLGS securities subscription

after that five/seven-day period is not

subject to a monetary penalty, but is

prohibited from subscribing for SLGS

securities for a six month period.

The Department understands that the

ability to cancel a SLGS securities

subscription without a monetary

penalty has led some market

participants to conclude that they can

both subscribe for SLGS securities and

enter into a contract for the purchase of

securities on the open market for the

same defeasance transaction or fund

deposit in order to create a cost-free

option in connection with a defeasance

escrow or fund.

The prices established by the

Treasury for the SLGS securities do not

include the cost of an option. The

Treasury believes it is inappropriate for

government bodies to use the SLGS

securities program to create an option.

Treasury is considering first, whether it

would be consistent with the purposes

of the SLGS securities program to allow

SLGS securities to serve as options if

Treasury were appropriately

compensated and second, if the answer

to the first question is affirmative,

whether there is a practical way for the

Department to charge for the use of

SLGS securities as options. Neither

question, however, has yet been

answered. Unless Treasury does

determine that it would be both

advisable and practical to allow SLGS

securities to serve as options if Treasury

is appropriately compensated, the use of

SLGS securities for options will

continue to be an inappropriate use of

SLGS securities. The Department has

therefore decided to amend the SLGS

securities regulations to clarify that

transactions in which issuers use SLGS

securities to provide a cost-free interest

rate hedge or option are prohibited.

The following examples are

illustrative of certain acceptable and

unacceptable practices:

(1) In order to fund an escrow for an

advance refunding, an issuer

simultaneously enters into a purchase

contract for open market securities and

subscribes for SLGS securities, such that

either purchase is sufficient to pay the

cash flows on the outstanding bonds to

be refunded but together, the purchases

are greatly in excess of the amount

necessary to pay the cash flows. The

issuer plans that, if interest rates decline

during the period between the date of

subscribing for the SLGS securities and

the requested date of issuance of the

SLGS securities, the issuer will enter

into an offsetting agreement to sell the

open market securities and use the bond

proceeds to purchase the SLGS

securities to fund the escrow. If,

however, interest rates do not decline in

that period, the issuer plans to use the

bond proceeds to purchase the open

market securities to fund the escrow and

cancel the SLGS securities subscription.

This arrangement in effect allows the

SLGS securities program to provide a

cost-free option to the issuer, and this

amendment to the regulation clarifies

that such transactions are prohibited.

(2) The existing escrow for an advance

refunding contains open market

securities which produces a negative

arbitrage. In order to reduce or eliminate

this negative arbitrage, the issuer

subscribes for SLGS securities at a yield

higher than the yield on the existing

escrow, but less than the permitted

yield. At the same time, the issuer

agrees to sell the open market securities

in the existing escrow to a third party

and use the proceeds to purchase the

SLGS securities if interest rates decline

between the date of subscribing for the

SLGS securities and the requested date

of issuance of the SLGS securities. The

issuer and the third party further agree

that if interest rates increase during this

period, the issuer will cancel the SLGS

securities subscription. This

arrangement in effect allows the SLGS

securities program to provide a cost-free