[Federal Register Volume 77, Number 35 (Wednesday, February 22, 2012)]
[Rules and Regulations]
[Pages 10368-10369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-4091]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 10 and 163

[CBP Dec. 12-02; USCBP-2011-0030]
RIN 1515-AD75


Duty-Free Treatment of Certain Visual and Auditory Materials

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule, without change, the 
proposed amendments to the U.S. Customs and Border Protection (CBP) 
regulations to permit an applicant to file the

[[Page 10369]]

documentation required for duty-free treatment of certain visual and 
auditory materials of an educational, scientific, or cultural character 
under subheading 9817.00.40, Harmonized Tariff Schedule of the United 
States (HTSUS), at any time prior to the liquidation of the entry. This 
change allots more time for the importer to provide the necessary 
certification documentation to CBP and serves to align the filing of 
required certification documentation with a change in CBP policy that 
extended the liquidation cycle for entries in the ordinary course of 
business from 90 days to 314 days after the date of entry.

DATES: Effective date: March 23, 2012.

FOR FURTHER INFORMATION CONTACT: Robert Dinerstein, Valuation and 
Special Programs Branch, Regulations and Rulings, Office of 
International Trade, (202) 325-0132.

SUPPLEMENTARY INFORMATION:

Background

    On August 19, 2011, U.S. Customs and Border Protection (CBP) 
published in the Federal Register (76 FR 51914) a proposal to amend 
title 19 of the Code of Federal Regulations (19 CFR) regarding the 
filing of documentation for duty-free treatment of certain visual and 
auditory materials of an educational, scientific, or cultural character 
under subheading 9817.00.40, HTSUS. Specifically, CBP proposed 
amendments to the regulations to provide for the suspension of the 
liquidation cycle for entries in the ordinary course of business from 
90 days to 314 days after the date of entry, or until the required 
documentation is submitted, whichever occurs first. This proposal also 
proposed to make a non-substantive change to the listing in the 
Appendix to Part 163 to reflect the State Department rather than the 
abolished U.S. Information Agency (USIA).
    CBP solicited comments from the public on the proposed rulemaking; 
however, CBP received no comments in response to its solicitation in 76 
FR 51914.

Conclusion

    In light of the fact that no comments were submitted in response to 
CBP's solicitation of public comment, CBP has determined to adopt as a 
final rule the proposed amendments in the Notice of Proposed Rulemaking 
published in the Federal Register (76 FR 51914) on August 19, 2011.

The Regulatory Flexibility Act and Executive Order 12866

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
Federal agencies to examine the impact a rule will have on small 
entities. A small entity may be: a small business (defined as any 
independently owned and operated business not dominant in its field 
that qualifies as a small business under the Small Business Act); a 
small not-for-profit organization; or a small governmental jurisdiction 
(locality with fewer than 50,000 people). Because these amendments 
provide more time for an importer to obtain the State Department 
certificate, CBP certifies under 5 U.S.C. 605(b) that the amendments 
will not have a significant economic impact on a substantial number of 
small entities. Further, these amendments do not meet the criteria for 
a ``significant regulatory action'' as specified in Executive Order 
12866.

Paperwork Reduction Act

    As there are no new collections of information in this document, 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
are inapplicable.

Signing Authority

    This rulemaking is being issued in accordance with 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 CBP 
revenue functions.

List of Subjects

19 CFR Part 10

    Customs duties and inspection, Entry, Imports, Preference programs, 
Reporting and recordkeeping requirements, Trade agreements.

19 CFR Part 163

    Administrative practice and procedure, Customs duties and 
inspection, Exports, Imports, Reporting and recordkeeping requirements, 
Trade agreements.

Amendments to the CBP Regulations

    For the reasons set forth above, parts 10 and 163 of title 19 of 
the Code of Federal Regulations (19 CFR parts 10 and 163) are amended 
as set forth below.

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

0
1. The general authority citation for part 10 continues to read and a 
specific authority is added for Sec.  10.121 as follows:

    Authority:  19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 
1498, 1508, 1623, 1624, 3314.
* * * * *
    Section 10.121 also issued under 19 U.S.C. 2501.
* * * * *

0
2. Section 10.121(b) is revised to read as follows:


Sec.  10.121  Visual or auditory materials of an educational, 
scientific, or cultural character.

* * * * *
    (b) Articles entered under subheading 9817.00.40, HTSUS, will be 
released from CBP custody prior to submission of the document required 
in paragraph (a) of this section only upon the deposit of estimated 
duties with the port director. Liquidation of an entry which has been 
released under this procedure will be suspended for a period of 314 
days from the date of entry or until the required document is 
submitted, whichever comes first. In the event that documentation is 
not submitted before liquidation, the merchandise will be classified 
and liquidated in the ordinary course, without regard to subheading 
9817.00.40, HTSUS.

PART 163--RECORDKEEPING

0
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.
* * * * *

Appendix to Part 163--[Amended]

0
4. Section IV is amended by removing the listing ``Sec.  10.121 
Certificate from USIA for visual/auditory materials'' and adding in its 
place the listing ``Sec.  10.121 Certificate from the U.S. Department 
of State for visual/auditory materials''.

David V. Aguilar,
Acting Commissioner, U.S. Customs and Border Protection.
    Approved: February 16, 2012.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2012-4091 Filed 2-21-12; 8:45 am]
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