[Federal Register Volume 65, Number 24 (Friday, February 4, 2000)]
[Rules and Regulations]
[Pages 5430-5431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-2518]



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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 132 and 163

[T.D. 00-7]
RIN 1515-AC55


Export Certificates for Sugar-Containing Products Subject to 
Tariff-Rate Quota

AGENCY:  U.S. Customs Service, Department of the Treasury.

ACTION:  Interim rule; solicitation of comments.

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SUMMARY:  This document amends the Customs Regulations on an interim 
basis to set forth the form and manner by which an importer establishes 
that a valid export certificate is in effect for certain sugar-
containing products subject to a tariff-rate quota, that are products 
of a participating country, as defined in an interim rule of the United 
States Trade Representative (USTR). The export certificate is necessary 
to enable the importer to claim the in-quota rate of duty on the sugar-
containing products.

DATES:  Interim rule effective on February 4, 2000. The interim rule is 
applicable to products of a participating country as described in the 
USTR interim rule that are entered or withdrawn from warehouse for 
consumption on or after February 4, 2000. Comments must be received on 
or before April 4, 2000.

ADDRESS:  Written comments may be addressed to and inspected at the 
Regulations Branch, U.S. Customs Service, 1300 Pennsylvania Avenue, 
NW., 3rd Floor, Washington, D.C. 20229.

FOR FURTHER INFORMATION CONTACT: Leon Hayward, Office of Field 
Operations, (202-927-9704).

SUPPLEMENTARY INFORMATION:

Background

    As a result of the Uruguay Round Agreements, approved by Congress 
in section 101 of the Uruguay Round Agreements Act (URAA) (Pub. L. 103-
465), the President, by Presidential Proclamation No. 6763, established 
a tariff-rate quota for imported sugar-containing products.
    Under a tariff-rate quota, the United States applies one tariff 
rate, known as the in-quota tariff rate, to imports of a product up to 
a particular amount, known as the in-quota quantity, and another, 
higher rate, known as the over-quota rate, to imports of a product in 
excess of the given amount. The preferential, in-quota tariff rate 
would be applicable only to the extent that the aggregate in-quota 
quantity of a product allocated to a country had not been exceeded.
    Under Presidential Proclamation No. 7235, dated October 7, 1999, 
the United States Trade Representative (USTR) was given authority under 
section 404(a) of the URAA to implement the tariff-rate quota for 
sugar-containing products to ensure that they do not disrupt the 
orderly marketing of such products in the United States. The USTR has 
already assigned Canada an in-quota allocation of the sugar-containing 
products (64 FR 54719; October 7, 1999).
    As part of the implementation of this tariff-rate quota, the USTR 
has established an export-certificate program under which exporting 
countries that have an allocation of the in-quota quantity and that 
wish to participate in the program may use export certificates for 
their sugar-containing products that are exported to the United States. 
The USTR has issued an interim rule establishing regulations for this 
export-certificate program (15 CFR part 2015) (64 FR 67152; December 1, 
1999). The USTR interim rule has an effective date of January 31, 2000.
    An exporting country wishing to participate in the export-
certificate program must notify the USTR and provide the necessary 
supporting information. As defined in the USTR interim regulations (15 
CFR 2015.2(e)), a participating country is a country that has received 
an allocation of the in-quota quantity of the tariff-rate quota, and 
that the USTR has determined, and has so informed Customs, is eligible 
to use export certificates for their sugar-containing products exported 
to the United States. The USTR has stated that it intends to publish a 
notice in the Federal Register whenever a country becomes, or ceases to 
be, a participating country.
    The particular sugar-containing products subject to a tariff-rate 
quota for which the USTR has established the export-certificate program 
are described in additional U.S. Note 8 to chapter 17 of the Harmonized 
Tariff Schedule of the United States (HTSUS). Specifically, unless 
excepted as provided in additional U.S. Note 3 to chapter 17, HTSUS, 
the imported sugar-containing products covered by the export-
certificate program contain over 10 percent by dry weight of sugars 
derived from cane or sugar beets, whether or not mixed with other 
ingredients, and they are classified under one of the following HTSUS 
subheadings: 1701.91.54, 1704.90.74, 1806.20.75, 1806.20.95, 
1806.90.55, 1901.90.56, 2101.12.54, 2101.20.54, 2106.90.78, or 
2106.90.95.
    While a country does not need to participate in the export-
certificate program in order to receive the in-quota tariff rate for 
its share of the in-quota quantity, using export certificates assures 
the exporting country that only those exported sugar-containing 
products that it intends for the United States market are counted 
against its in-quota allocation. As already noted, this helps ensure 
that such products do not disrupt the orderly marketing of sugar-
containing products in the United States.
    On December 4, 1998, the Governments of the United States and 
Canada entered into a Record of Understanding regarding Areas of 
Agricultural Trade. In Annex 17 of this Record of Understanding, the 
United States agreed to require an export permit issued by the 
Government of Canada in order to enable an importer to claim the in-
quota tariff rate for those sugar-containing products of Canadian 
origin described in additional U.S. Note 8 to chapter 17, HTSUS. Canada 
will thus be a participating country in this export-certificate program 
as of January 31, 2000, the effective date of the USTR interim rule, as 
indicated above.
    In accordance with the interim rulemaking of the USTR, Customs is 
issuing this interim rule in order to set forth a new Sec. 132.17, 
Customs Regulations (19 CFR 132.17), that prescribes the form and 
manner by which an importer establishes that a valid export certificate 
exists, including a unique number for the certificate that must be 
referenced on the entry or withdrawal from warehouse for consumption, 
whether filed in paper form or electronically. This will ensure that no 
imports of the specified sugar-containing products of a participating 
country are counted against the country's in-quota allocation unless 
the products are covered by a proper export certificate. The export 
certificate is necessary in this regard in order to enable the importer 
to claim the in-quota rate of duty on the sugar-containing products.
    In addition, the Interim (a)(1)(A) List set forth as an Appendix to 
part 163, Customs Regulations (19 CFR part 163, Appendix), that lists 
the records required for the entry of merchandise, is revised to add a 
reference to the requirement in new Sec. 132.17 that an importer 
possess a valid export certificate for sugar-containing products that 
are subject to a tariff-rate quota and that are products of a 
participating country, in order for the importer to be

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able to claim the applicable in-quota rate of duty.
    Also, Sec. 132.15, Customs Regulations (19 CFR 132.15), is revised 
to make provision for electronic entry filing in the case of beef 
subject to a tariff-rate quota, for which the importer must similarly 
possess a valid export certificate in order to claim the in-quota rate 
of duty.

Comments

    Before adopting this interim regulation as a final rule, 
consideration will be given to any written comments that are timely 
submitted to Customs. Customs specifically requests comments on the 
clarity of this interim rule and how it may be made easier to 
understand. Comments submitted will be available for public inspection 
in accordance with the Freedom of Information Act (5 U.S.C. 552), 
Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and 
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular 
business days between the hours of 9:00 a.m. and 4:30 p.m. at the 
Regulations Branch, U.S. Customs Service, 1300 Pennsylvania Avenue, 
NW., 3rd Floor, Washington D.C.

Inapplicability of Notice and Delayed Effective Date Requirements, 
the Regulatory Flexibility Act, and Executive Order 12866

    Pursuant to the provisions of 5 U.S.C. 553(a), public notice is 
inapplicable to this interim rule because it is within the foreign 
affairs function of the United States. Also, for the above reason, 
there is no need for a delayed effective date under 5 U.S.C. 553(d). 
Because no notice of proposed rulemaking is required for interim 
regulations, the provisions of the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.) do not apply; and because this document involves a foreign 
affairs function of the United States and implements an international 
agreement, it is not subject to the provisions of E.O. 12866.

Paperwork Reduction Act

    The collections of information involved in this interim rule have 
already been approved by the Office of Management and Budget (OMB) in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
and assigned OMB Control Numbers 1515-0065 (Entry summary and 
continuation sheet) and 1515-0214 (General recordkeeping and record 
production requirements). This rule does not propose any substantive 
changes to the existing approved information collections.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid control number assigned by OMB.

List of Subjects

19 CFR Part 132

    Agriculture and agricultural products, Customs duties and 
inspection, Quotas, Reporting and recordkeeping requirements.

19 CFR Part 163

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

Amendment to the Regulations

    Accordingly, parts 132 and 163, Customs Regulations (19 CFR parts 
132 and 163), are amended as set forth below.

PART 132--QUOTAS

    1. The general authority citation for part 132 continues to read as 
follows, and the specific sectional authority under this part is 
revised to read as follows :

    Authority:  19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States (HTSUS)), 1623, 1624.
    Sec. 132.15 through 132.17 also issued under 19 U.S.C. 1202 
(additional U.S. Note 3 to Chapter 2, HTSUS; subchapter III of 
Chapter 99, HTSUS; and additional U.S. Note 8 to Chapter 17, HTSUS, 
respectively), 1484, 1508.


    2. Section 132.15 is amended by revising the second sentence of 
paragraph (a) to read as follows:


Sec. 132.15  Export certificate for beef subject to tariff-rate quota.

    (a) Requirement. * * * The importer must record the unique 
identifying number of the export certificate for the beef on the entry 
summary or warehouse withdrawal for consumption (Customs Form 7501, 
Column 34), or its electronic equivalent.
* * * * *

    3. Part 132 is amended by adding a new Sec. 132.17 to subpart B to 
read as follows:


Sec. 132.17  Export certificate for sugar-containing products subject 
to tariff-rate quota.

    (a) Requirement. For sugar-containing products described in 
additional U.S. Note 8 to chapter 17, HTSUS, that are classified in 
HTSUS subheading 1701.91.54, 1704.90.74, 1806.20.75, 1806.20.95, 
1806.90.55, 1901.90.56, 2101.12.54, 2101.20.54, 2106.90.78, or 
2106.90.95, and that are products of a participating country, as 
defined in 15 CFR 2015.2(e), the importer must possess a valid export 
certificate in order to claim the in-quota tariff rate of duty on the 
products at the time they are entered or withdrawn from warehouse for 
consumption. The importer must record the unique identifier of the 
export certificate for these products on the entry summary or warehouse 
withdrawal for consumption (Customs Form 7501, column 34), or its 
electronic equivalent.
    (b) Validity of export certificate. To be valid, the export 
certificate must meet the requirements of 15 CFR 2015.3(b), and with 
respect to the requirement of 15 CFR 2015.3(b)(3) that the certificate 
have a distinct and uniquely identifiable number, this unique 
identifier must consist of 8 characters in any alpha/numeric 
combination.
    (c) Retention and production of certificate to Customs. The export 
certificate is subject to the recordkeeping requirements of part 163 of 
this chapter (19 CFR part 163). Specifically, the certificate must be 
retained for a period of 5 years in accordance with Sec. 163.4(a) of 
this chapter, and must be made available to Customs upon request in 
accordance with Sec. 163.6(a) of this chapter.

PART 163--RECORDKEEPING

    1. 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]

    2. In the Appendix to part 163, under heading ``IV.'', the list of 
documents/records or information required for entry of special 
categories of merchandise is amended by removing the listing, 
``Sec. 132.15, 132.16 Export certificates, respectively, for beef or 
lamb meat subject to tariff-rate quota'', and by adding the following 
listing in its place:


``Secs. 132.15 through 132.17  Export certificates, respectively, for 
beef, lamb meat, or sugar-containing products subject to tariff-rate 
quota''.

Raymond W. Kelly,
Commissioner of Customs.

    Approved: January 19, 2000.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-2518 Filed 2-1-00; 3:31 Pm]
BILLING CODE 4820-02-P