5430 Federal Register / Vol. 65, No. 24 / Friday, February 4, 2000 / Rules and Regulations

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 132 and 163

[T.D. 00–7]

RIN 1515–AC55

Export Certificates for SugarContaining Products Subject to TariffRate Quota

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: Interim rule; solicitation of

comments.

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 inquota rate of duty on the sugarcontaining 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withdrawn from warehouse for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 sugarcontaining 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 overquota 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 sugarcontaining 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 inquota 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 sugarcontaining 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 exportcertificate 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 inquota allocation. As already noted, this

helps ensure that such products do not

disrupt the orderly marketing of sugarcontaining 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 sugarcontaining products of Canadian origin

described in additional U.S. Note 8 to

chapter 17, HTSUS. Canada will thus be

a participating country in this exportcertificate 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 § 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 sugarcontaining 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 inquota rate of duty on the sugarcontaining 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 § 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

Federal Register / Vol. 65, No. 24 / Friday, February 4, 2000 / Rules and Regulations 5431

able to claim the applicable in-quota

rate of duty.

Also, § 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), § 1.4,

Treasury Department Regulations (31

CFR 1.4), and § 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.

§ 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:

§ 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 § 132.17 to subpart B to read as

follows:

§ 132.17 Export certificate for sugarcontaining 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 § 163.4(a) of this

chapter, and must be made available to

Customs upon request in accordance

with § 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, ‘‘§ 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:

‘‘§§ 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]

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