[Federal Register Volume 62, Number 248 (Monday, December 29, 1997)]
[Notices]
[Pages 67681-67683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33752]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Technical Corrections to the Harmonized Tariff Schedule of the 
United States

AGENCY: Office of the United States Trade Representative.

ACTION: Technical corrections to the Harmonized Tariff Schedule of the 
United States.

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SUMMARY: The United States Trade Representative (USTR) is making 
technical corrections to the Harmonized Tariff Schedule of the United 
States (HTS) as set forth in the annex to this notice, pursuant to 
authority granted by Congress to the President in section 604 of the 
Trade Act of 1974 and delegated by the President to the USTR in 
Presidential Proclamation No. 6969 of January 27, 1997 (62 FR 4415). 
These modifications will correct errors in prior proclamations, so that 
the intended tariff treatment is accorded.

ADDRESSES: Office of the United States Trade Representative, 600 17th 
Street, NW, Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT:
Barbara Chattin, Director for Tariff Affairs (202) 395-5097, or 
Catherine Field, Senior Counsel for Multilateral Affairs, (202) 395-
3432.

Explanation of Proposed Changes

    This notice makes several technical corrections to the Harmonized 
Tariff Schedule of the United States (HTS) to remedy omissions, 
misspellings, or other problems included in previously issued 
proclamations, or to make conforming changes in HTS provisions 
previously proclaimed to reflect previous modifications to the HTS. The

[[Page 67682]]

modification made in each paragraph is explained in turn.
    The action designated as 1. conforms certain provisions for goods 
returned from Canada or Mexico after alterations or repairs with U.S. 
obligations under the NAFTA. This modification is effective as of the 
date of entry into force of the NAFTA, i.e., January 1, 1994.
    The action designated as 2.(a) modifies an HTS category to allow 
duty-free entry of a product enumerated in the Intermediate Chemicals 
for Dyes appendix to the HTS, as provided for in Schedule XX as annexed 
to the Marrakesh Protocol to the Agreement Establishing the World Trade 
Organization (WTO Agreement). The special duty rate symbol ``L'' must 
appear in the HTS tariff category containing an intermediate chemical 
enumerated in this HTS appendix for Customs to allow duty-free entry 
upon claims therefor by importers. This action is effective as of the 
date of entry into force of the WTO Agreement, i.e., January 1, 1995.
    Actions 2. (b) and (c) realign language in particular HTS legal 
notes to ensure that the tariff treatment intended under the NAFTA is 
achieved. The modification corrects an error incorporated in a previous 
proclamation and is effective as of the date of that erroneous 
modification. The correction ensures that particular provisions dealing 
with textile and apparel differentiate between originating goods 
(including ``products of'' Canada or Mexico) and non-originating goods 
(including ``imports from'' these countries--potentially applicable to 
transshipped third-country goods as well as other goods not 
substantially transformed into NAFTA originating goods) under the terms 
of HTS general note 12.
    The actions designated as 2.(d) and 2.(e) correct typographical or 
spelling errors and are effective as of the date the particular HTS 
categories were established or modified.
    The action is section 3.(a) make a conforming change (reflecting a 
renumbering of an HTS category) in one NAFTA tariff shift rule in 
general note 12(t), and reinsert another tariff shift rule that 
previously was erroneously deleted, effective as of the date of the 
prior action or deletion, respectively.
    Actions designated as 3.(b) and 3.(c) make conforming changes that 
reflect in one set of HTS provisions the previous, but unrecognized, 
modifications to other provisions. The changes are effective as of the 
date of the previous modifications to these corresponding HTS 
provisions.
    The action designated as 3.(d) corrects the omission of a 
conforming change from Proclamation 6857 of December 11, 1995. The 
cited note to subchapter II of chapter 98 should have been modified to 
reflect a World Customs Organization (WCO) change in the status of the 
note. The WCO elevated additional U.S. note 1 to section XV from its 
prior status as a U.S. note to the status of international-level note 3 
to section XV. As a result of this WCO action the note is now included 
in the annex to the Harmonized System Convention.
    The action designated as 4. corrects an omission from Proclamation 
6982 of April 1, 1997, which modified the scope of duty-free treatment 
accorded under the pharmaceuticals appendix to the HTS.
    Section 5. corrects 3 typographical errors in the Federal Register 
notice that was published and was effective on April 28, 1997, which 
made certain changes in NAFTA rules of origin set forth in general note 
12 to the HTS.
    The actions in section 6. correct an omission and errors in 
Proclamation 7007 of May 30, 1997, which modified duty-free treatment 
under the GSP for least-developed beneficiary developing countries. The 
first action provides such treatment to a subheading created in the 
proclamation, and the second action deletes from the list of HTS 
subheadings that were designated for the new GSP treatment certain 
tariff categories that were already eligible for GSP benefits.
    The action designated as 7. corrects the advertent deletion of a 
preexisting duty suspension provision from the HTS and recognize the 
goods covered under the former duty suspension now fall in another 
provision of chapter 84. As a result of this prior change in 
classification, the duty suspension provision of chapter 99 must be 
amended to reflect the permanent tariff subheading now applicable to 
these goods. The continuation of the duty suspension (which had been 
scheduled to continue through the close of 2000) allows the subject 
products to continue to enter the customs territory free of duty.
    The actions designated as 8. correct errors in dates in provisions 
of the cited proclamation so that future proclaimed actions could be 
administered as intended.
    Actions designated as 9. (a) and (b) correct two errors in staging 
tables in the HTS. The staging table for general rates of duty 
contained erroneous 1997 and 1998 duty rates for subheading 2620.90.20, 
in that the two rates shown in the staging table should have been 
reversed. Thus, as presently proclaimed, the 1997 duty rate is too low 
and the 1998 duty rate would increase before returning to the scheduled 
1999 stage; it was intended that the 1998 and 1999 rates be the same. 
This notice also corrects the inadvertent omission of the final staged 
Canada rate under the NAFTA for subheading 8529.90.88. As presently 
proclaimed, the 1997 duty rate of ``0.5% (CA)'' would not be eliminated 
as scheduled on January 1, 1998.
    Actions designated as 9. (c) through (h) correct previously 
proclaimed provisions of the general notes to the HTS to update 
statutory references and thereby reflect the amendments to title V of 
the Trade Act of 1974 concerning the Generalized System of Preferences 
(GSP). Some of these provisions deal with the freely associated states 
(see general note 10), because the statute implementing the compacts of 
free association imposed certain criteria of the GSP program as 
limitations on imports.
    The action designated as 10. corrects omissions from Proclamation 
6914 of August 28, 1966, which modified the allocation of tariff-rate 
quotas for certain cheeses from the EC 15. For the enumerated cheese 
quota notes, Proclamation 6914 modified the notes by changing the 
references to ``EC 12'' to read ``EC 15'' but did not provide for the 
increased quota access for the years 1999 and 2000 as set forth in 
Proclamation 6763 of December 23, 1994.
Ambassador Charlene Barshefsky,
United States Trade Representative.

Annex

    Corrections: The HTS is modified as set forth below with respect to 
goods entered, or withdrawn from warehouse for consumption, on or after 
the effective dates specified for the enumerated actions:

    1. Effective on January 1, 1994, U.S. note 3 to subchapter II of 
chapter 98 of the HTS is modified by redesignating subdivision (d) 
as subdivision (e), and by inserting the following new subdivision 
in alphabetical sequence:
    ``(d) For the purposes of subheadings 9802.00.40 and 9802.00.50, 
the rates of duty in the ``Special'' subcolumn of column 1 followed 
by the symbol ``CA'' or ``MX'' in parentheses shall apply to any 
goods which are returned to the United States after having been 
repaired or altered in Canada or in Mexico, respectively, whether or 
not such goods are goods of Canada or goods of Mexico under the 
terms of general note 12 to the tariff schedule.''
    2. Effective on January 1, 1995, the HTS is modified as follows:
    (a) For subheading 2922.49.37, the Rates of Duty 1--Special 
subcolumn is modified by inserting, in alphabetical sequence, the

[[Page 67683]]

symbol ``L'' in the parentheses following the ``Free'' rate of duty 
in such subcolumn.
    (b) In the additional U.S. notes to HTS section XI listed below, 
the expression ``articles the product of Canada'' is deleted at each 
instance and the expression ``Imports from Canada'' is inserted in 
lieu thereof.

additional U.S. note 3(a); additional U.S. note 4(c)
additional U.S. note 3(f); additional U.S. note 5(a)
additional U.S. note 4(a); additional U.S. note 5(c)
    (c) In the additional U.S. notes to HTS section XI listed below, 
the expression ``articles the product of Mexico'' is deleted at each 
instance and the expression ``imports from Mexico'' is inserted in 
lieu thereof.

additional U.S. note 3(b); additional U.S. note 4(b)
additional U.S. note 3(c); additional U.S. note 4(d)
additional U.S. note 3(d); additional U.S. note 5(b)
additional U.S. note 3(e); additional U.S. note 5(d)
additional U.S. note 3(g)

    (d) The article description for HTS heading 9817.29.01 is 
modified by deleting ``3701.90.32'' and by inserting in lieu thereof 
``3707.90.32''.
    (e) The Intermediate Chemicals for Dyes Appendix to the HTS is 
modified by deleting the chemical name ``Banzamine, 2, 6-dichloro-4-
nitro'' and by inserting ``Benzamine, 2, 6-dichloro-4-nitro'' in 
lieu thereof, and by deleting the chemical name ``Benzeneamine, 2-
(triflouromethyl)-'' and by inserting ``Benzeneamine, 2-
(triflouromethyl)-'' in lieu thereof.
    3. Effective on January 1, 1996, the HTS is modified as follows:
    (a) The tariff classification rules (``TCRs'') in subdivision 
(t) of general note 12 to the HTS are modified by deleting from 
chapter rule 1 to chapter 61 and from chapter rule 1 to chapter 62 
the subheading number ``5407.60'' and by inserting in lieu thereof 
``5407.61''.
    (b) The article description for HTS subheading 6303.92.10 is 
modified by deleting ``5407.60.11, 5407.60.21 or 5407.60.91'' and by 
inserting in lieu thereof ``5407.61.11, 5407.61.21 or 5407.61.91''.
    (c) The article description for HTS subheading 9017.20.50 is 
modified by deleting ``8456.90.20'' and by inserting in lieu thereof 
``8456.99.10''.
    (d) U.S. note 3(d) to subchapter II of chapter 98 is modified by 
deleting ``additional U.S. note 1'' and inserting ``note 3'' in lieu 
thereof.
    4. Effective April 1, 1997, for subheading 2933.59.95, the Rates 
of Duty 1--special subcolumn is modified by inserting, in 
alphabetical sequence, the symbol ``K'' in the parentheses following 
the ``Free'' rate of duty in such subcolumn.
    5. Effective April 28, 1997, general note 12 to the HTS is 
modified as follows:
    (a) by numbering the tariff classification rule to chapter 82 
that reads ``A change to subheadings 8202.39 through 8202.99 from 
any other chapter.'' as TCR 4 to that chapter;
    (b) by modifying TCR 231 for chapter 84 by deleting ``tariff 
items,'' and by inserting in lieu thereof ``tariff item, ``; and
    (c) by deleting from TCR 90 for chapter 85 ``8428.12.62'' and by 
inserting in lieu thereof ``8528.12.62''.
    6. Effective May 31, 1997:
    (a) For HTS subheading 0802.90.98, the Rates of Duty 1--Special 
subcolumn is modified by inserting, immediately before the symbol 
``CA'' in parentheses, the symbol ``A+,''; and
    (b) Section (c) to Annex II to Presidential Proclamation 7007 is 
modified by deleting HTS subheadings 0802.90.90, 2901.29.50, 
8607.19.03, 9603.10.50 and 9603.10.60.
    7. Effective July 1, 1997, section B of Annex I to Presidential 
Proclamation 7011 of June 30, 1997, is modified by deleting the text 
of paragraph (68) and by inserting in lieu thereof the following: 
`Heading 9902.84.77 is modified by deleting ``8477.10.80'' and by 
inserting in lieu thereof ``8477.10.70''.'
    8. Effective on the date of publication of this notice in the 
Federal Register, section A(5) of Annex II to Presidential 
Proclamation 6969 is modified as follows:
    (a) by deleting, from subparagraph (a) of such section, the 
expression ``April 1, 1998, through March 31, 1999, inclusive'' and 
by inserting ``April 1 in any year through March 31, inclusive'' in 
lieu thereof; and
    (b) by deleting, from subparagraph (b) of such section, the 
expression ``April 1, 1999, through March 31, 2000, inclusive'' and 
by inserting ``April 1, 2000, through March 31, 2001, inclusive'' in 
lieu thereof.
    9. Effective January 1, 1998:
    (a) Section D of the Annex to Proclamation 6763 is modified by 
striking from the column headed ``1998'' for subheading 2620.90.20 
the duty rate of ``18.5 cents/kg on tungsten content + 4%'' and by 
inserting the duty rate ``17.6 cents/kg on tungsten content + 4%'' 
in lieu thereof; and
    (b) Subheading 8529.90.88 is modified by striking from the 
``Special'' rates of duty subcolumn the rate ``0.5% (CA)'' and by 
inserting in alphabetical sequence in the parenthetical expression 
following the duty rate of ``Free'' in such subcolumn the symbol 
``CA,''.
    (c) General note 3(iv)(C) is modified by deleting ``sections 
503(b) and 504(c) and by inserting ``sections 503(a)(2), 503(a)(3) 
and 503(c)'' in lieu thereof.
    (d) General note 4(a) is modified by deleting ``section 
502(a)(3) of the Trade Act of 1974 (19 U.S.C. 2462(a)(3)'' and by 
inserting ``section 507(2) of the Trade Act of 1974 (19 U.S.C. 
2467(2)'' in lieu thereof.
    (e) General note 4(b)(i) is modified by deleting ``section 
504(c)(6)'' and by inserting ``section 502(a)(2)'' in lieu thereof, 
by deleting ``section 504(c)'' and by inserting ``section 
503(c)(2)(A)'' in lieu thereof, and by deleting ``19 U.S.C. 
2464(c)'' and by inserting ``19 U.S.C. 2463(c)(2)(A)'' in lieu 
thereof.
    (f) The last paragraph of general note 4(c) is modified by 
deleting ``section 503(a)(3)'' and by inserting ``section 507(2)'' 
in lieu thereof.
    (g) General note 10(e)(i)(A) is modified by deleting ``section 
504(c)(1)(A) of the Trade Act of 1974 (19 U.S.C. 2464(c)(1)(A)'' and 
by inserting ``sections 503(c)(2)(A)(i)(I) and 503(c)(2)(A)(ii) of 
the Trade Act of 1974 (19 U.S.C. 2463(c)(2)(A)(i)(I) and 
503(c)(2)(A)(ii)'' in lieu thereof.
    (h) General note 10(f) is modified by deleting ``section 
504(c)(3) of the Trade Act of 1974 (19 U.S.C. 2464(c)(3)'' and by 
inserting ``section 503(c)(2)(F) of the Trade Act of 1974 (19 U.S.C. 
2463(c)(2)(F)'' in lieu thereof.
    10. Effective on January 1 in each of the following years, the 
enumerated additional U.S. notes to chapter 4 of the HTS are each 
modified by deleting the existing quantitative limitation set forth 
therein for the EC 15 and by inserting in lieu thereof the new 
quantitative limitation set forth in this table:

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                                                    1999         2000   
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(a) Additional U.S. note 17 to chapter 4......    2,729,000    2,779,000
(b) Additional U.S. note 18 to chapter 4......    1,096,333    1,263,000
(c) Additional U.S. note 19 to chapter 4......      337,333      354,000
(d) Additional U.S. note 21 to chapter 4......    3,965,333    4,082,000
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    Additional information regarding these technical modifications 
can be obtained by contacting the above-named officials of the USTR 
at the number noted above.
[FR Doc. 97-33752 Filed 12-24-97; 8:45 am]
BILLING CODE 3190-01-M