64178 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

the Federal Aviation Administration

proposes to amend part 39 of the

Federal Aviation Regulations (14 CFR

part 39) as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. FAA amends § 39.13 by adding a

new airworthiness directive (AD) to

read as follows:

Dornier Luftfahrt GMBH: Docket No. 2000–

CE–AD

(a) What airplanes are affected by this AD?

This AD affects Models 228–100, 228–101,

228–200, and 228–201, 228–202, and 228–

212 airplanes, all serial numbers, that:

(1) Are certificated in any category; and

(2) Have windshield spray nozzle option

SCN 3109 installed.

(b) Who must comply with this AD?

Anyone who wishes to operate any of the

above airplanes must comply with this AD.

(c) What problem does this AD address?

The actions specified by this AD are intended

to prevent the windshield spray nozzle

heating system from overheating, which

could result in smoke in the cockpit and

prompt the crew to initiate emergency

actions.

(d) What actions must I accomplish to

address this problem? To address this

problem, you must accomplish the following:

Action Compliance time Procedures

(1) Deactivate the windshield spray nozzle

heating elements by cutting wire ME16F20

at the splice at frame 7. Cap (MS2574–2

caps) and stow cables.

Within the next 100 hours time-in-service (TIS)

after the effective date of this AD, unless already accomplished.

Dornier All Operators Telefax (AOT) No.

AOT–228–30–022, dated September 9,

1998, references this action.

(2) Do not install, on any affected airplane,

windshield spray nozzle option SCN 3109.

As of the effective date of this AD ................... Not Applicable.

(e) Can I comply with this AD in any other

way? You may use an alternative method of

compliance or adjust the compliance time if:

(1) Your alternative method of compliance

provides an equivalent level of safety; and

(2) The Manager, Small Airplane

Directorate, approves your alternative.

Submit your request through an FAA

Principal Maintenance Inspector, who may

add comments and then send it to the

Manager, Small Airplane Directorate.

Note 1: This AD applies to each airplane

identified in paragraph (a) of this AD,

regardless of whether it has been modified,

altered, or repaired in the area subject to the

requirements of this AD. For airplanes that

have been modified, altered, or repaired so

that the performance of the requirements of

this AD is affected, the owner/operator must

request approval for an alternative method of

compliance in accordance with paragraph (e)

of this AD. The request should include an

assessment of the effect of the modification,

alteration, or repair on the unsafe condition

addressed by this AD; and, if you have not

eliminated the unsafe condition, specific

actions you propose to address it.

(f) Where can I get information about any

already-approved alternative methods of

compliance? Contact Karl M. Schletzbaum,

Aerospace Engineer, FAA, Small Airplane

Directorate, 901 Locust, Room 301, Kansas

City, Missouri 64106; telephone: (816) 329–

4146; facsimile: (816) 329–4090.

(g) What if I need to fly the airplane to

another location to comply with this AD? The

FAA can issue a special flight permit under

sections 21.197 and 21.199 of the Federal

Aviation Regulations (14 CFR 21.197 and

21.199) to operate your airplane to a location

where you can accomplish the requirements

of this AD.

(h) How do I get copies of the documents

referenced in this AD? You may obtain copies

of the documents referenced in this AD from

Dornier Luftfahrt GmbH, Product Support,

P.O. Box 1103, D–82230 Wessling, Federal

Republic of Germany; telephone: (08153)

302631; facsimile: (08153) 304463. You may

examine these documents at FAA, Central

Region, Office of the Regional Counsel, 901

Locust, Room 506, Kansas City, Missouri

64106.

Note 2: The subject of this AD is addressed

in German AD Number 1999–030/2, dated

April 8, 1999.

Issued in Kansas City, Missouri, on

October 20, 2000.

James E. Jackson,

Acting Manager, Small Airplane Directorate,,

Aircraft Certification Service.

[FR Doc. 00–27563 Filed 10–25–00; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 10

[T.D. 00–74]

RIN 1515–AC79

Refund of Duties Paid on Imports of

Certain Wool Products

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document proposes to

amend the Customs Regulations to

implement the provisions of section 505

of Title V of the Trade and Development

Act of 2000. Section 505 permits U.S.

manufacturers of certain wool articles to

claim a limited refund of duties paid in

each of calendar years 2000, 2001, and

2002 on imports of select wool

products. The maximum amount

eligible to be refunded in each of these

successive claim years is limited to an

amount not to exceed one-third of the

amount of duties actually paid on such

wool products imported in calendar

year 1999. The proposed amendments

contained in this document set forth the

eligibility, documentation, and

procedural requirements necessary to

substantiate a claim for a duty refund

under the terms of the statute.

DATES: Comments must be received on

or before November 16, 2000.

ADDRESSES: Written comments

(preferably in triplicate) may be

submitted to and inspected at the

Regulations Branch, Office of

Regulations and Rulings, U.S. Customs

Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, DC. 20229.

FOR FURTHER INFORMATION CONTACT:

Bruce Ingalls, Chief, Entry and

Drawback Management (202) 927–1082.

SUPPLEMENTARY INFORMATION:

Background

On May 18, 2000, President Clinton

signed into law the Trade and

Development Act of 2000 (‘‘the Act’’),

Public Law 106–200, 114 Stat. 251. Title

V of the Act concerns imports of certain

wool articles and sets forth provisions

intended to provide tariff relief to U.S.

manufacturers of men’s and boys’

worsted wool suits, suit-type jackets,

and trousers. Within Title V, section 505

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules 64179

provides for a limited refund of duties

paid on imports of certain wool articles.

Section 505

Paragraph (a) of section 505 provides

for a refund of duties paid on imports

of certain worsted wool fabrics.

Specifically, paragraph (a) provides for

a limited refund of duties paid, in each

of calendar years 2000, 2001 and 2002,

on imports of worsted wool fabrics of

the kind described in subheadings

9902.51.11 or 9902.51.12 of the

Harmonized Tariff Schedule of the

United States (HTSUS), to

manufacturers of men’s or boys’ suits,

suit-type jackets, or trousers of such

imported worsted wool fabric, who may

or may not be the importer of the

worsted wool fabric. The amount of

duties eligible to be refunded to the

manufacturer in each of calendar years

2000, 2001, and 2002 is limited to an

amount not to exceed one-third of the

amount of duties actually paid by the

manufacturer or the importer on such

worsted wool fabrics imported in

calendar year 1999.

It is noted that the statute prohibits a

broker or other individual acting on

behalf of the manufacturer from being

eligible to claim such a duty refund.

Section 505(b) provides for a refund

of duties paid on imports of certain

wool yarn. This provision permits a

manufacturer of worsted wool fabric,

who has imported wool yarn of the kind

described in subheading 9902.51.13,

HTSUS, to be eligible to claim a limited

refund of the duties paid on entries of

such wool yarn in each of calendar

years 2000, 2001, and 2002. The amount

of duties eligible to be refunded in each

of these calendar years is limited to an

amount not to exceed one-third of the

amount of duties actually paid by the

importing-manufacturer on such wool

yarn imported in calendar year 1999.

Section 505(c) provides for a refund of

duties paid on imports of certain wool

fiber and wool top. Paragraph (c)

permits a manufacturer of wool yarn or

wool fabric, who has imported wool

fiber or wool top of the kind described

in subheading 9902.51.14, HTSUS, to be

eligible to claim a limited refund of the

duties paid on entries of such wool fiber

or wool top in each of calendar years

2000, 2001, and 2002. Again, the

amount of duties eligible to be refunded

in each of these calendar years is

limited to an amount not to exceed onethird of the amount of duties actually

paid by the importing-manufacturer on

such wool yarn imported in calendar

year 1999.

It should be noted that while sections

505(b) and (c) require that a

manufacturer also be the importer in

order to be eligible to claim a wool duty

refund under the terms of the statute,

section 505(a) does not require a

manufacturer of men’s or boys’ suits,

suit-type jackets, or trousers of worsted

wool fabric to also be the importer of the

worsted wool fabric to be eligible for the

refund.

Section 505(d) requires that any

claimant applying for a wool duty

refund must identify each entry

involved and provide appropriate

information by which Customs is able to

substantiate a claim for a refund of

duties under this statute.

HTSUS Subheadings Identified in

Sections 501, 502 and 505 of the Act

Paragraphs (a), (b) and (c) to section

505 identify the HTSUS tariff provisions

set forth in subchapter II of chapter 99

that provide the basis for a duty refund

claim under this section. The chapter 99

provisions were promulgated in sections

501 and 502 of the Act for purposes of

implementing temporary duty

reductions and temporary duty

suspensions for certain wool products.

Although the chapter 99 subheadings

do not become effective until January 1,

2001, they are statutorily defined in

sections 501 and 502 of the Act as

including subheadings for eligible wool

products that were in effect in the 1999

and 2000 HTSUS. As section 505

permits claims for duty refunds to be

made in calendar year 2000, and the

amount of duties eligible to be refunded

for claim year 2000 is limited to an

amount not to exceed one-third of

duties actually paid on select wool

products imported in calendar year

1999, it is necessary to identify the 1999

and 2000, HTSUS, wool provisions that

correlate to the chapter 99 subheadings

identified in section 505. To that end, it

is noted that:

• Section 501(a)(1) creates new

subheading 9902.51.11, HTSUS, that

describes ‘‘[F]abrics, of worsted wool,

with average fiber diameters greater

than 18.5 micron, all the foregoing

certified by the importer as suitable for

use in making suits, suit-type jackets, or

trousers (provided for in subheading

5111.11.70, 5111.19.60, 5112.11.20, or

5112.19.90)’’;

• Section 501(b)(1) creates new

subheading 9902.51.12, HTSUS, that

describes ‘‘[F]abrics, of worsted wool,

with average fiber diameters of 18.5

micron or less, all the foregoing certified

by the importer as suitable for use in

making suits, suit-type jackets, or

trousers (provided for in subheading

5111.11.70, 5111.19.60, 5112.11.20, or

5112.19.90)’’;

• Section 502(a) creates new

subheading 9902.51.13, HTSUS, that

describes ‘‘[Y]arn, of combed wool, not

put up for retail sale, containing 85

percent or more by weight of wool,

formed with wool fibers having

diameters of 18.5 micron or less

(provided for in subheading

5107.10.00)’’; and

• Section 502(b) creates new

subheading 9902.51.14, HTSUS, that

describes ‘‘[W]ool fiber, waste, garnetted

stock, combed wool, or wool top, having

average fiber diameters of 18.5 micron

or less (provided for in subheadings

5101.11; 5101.19; 5101.21; 5101.29;

5101.30; 5103.10; 5103.20; 5104.00;

5105.21; or 5105.29)’’.

Proposed Implementation

In this document, Customs is

proposing its implementation of section

505. As the wool duty refund program

authorized by section 505 limits the

total amount of refunds available to

eligible claimants in each of calendar

years 2000, 2001 and 2002, to an

amount not to exceed one-third of the

duties paid on eligible wool products

imported in calendar year 1999,

Customs needs to determine the total

amount of duties paid in calendar year

1999 both on an aggregate level and per

claimant.

Using ACS To Determine the Amount of

Duty Refund Eligible To Be Received in

Each of Calendar Years 2000, 2001 and

2002

Customs will use government data

generated by the Automated

Commercial System (ACS) to determine

the total amount of duties paid on

eligible wool products imported in

calendar year 1999. To this end,

separate ACS queries will be run to

determine the total amount of duties

paid on wool products imported in

calendar year 1999 for the following

HTSUS subheading categories:

• 5112.11.20 and 5112.19.90;

• 5107.10.00; and

• 5101.11, 5101.19, 5101.21, 5101.29,

5101.30, 5103.10, 5103.20, 5104.00,

5105.21, and 5105.29.

For purposes of duty refund claims

made pursuant to section 505(a), onethird of the ACS-generated amount for

duties paid on 1999 imports of

merchandise described in HTSUS

subheadings 5112.11.20 and 5112.19.90

will establish the maximum amount that

is eligible to be refunded in calendar

years 2000, 2001, and 2002.

For purposes of duty refund claims

made pursuant to section 505(b), onethird of the ACS-generated amount for

duties paid on 1999 imports of

merchandise described in HTSUS

subheadings 5107.10.0 will establish the

64180 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

maximum amount that is eligible to be

refunded in calendar years 2000, 2001,

and 2002.

For purposes of duty refund claims

made pursuant to section 505(c), onethird of the ACS-generated amount for

duties paid on 1999 imports of

merchandise described in HTSUS

subheadings 5101.11, 5101.19, 5101.21,

5101.29, 5101.30, 5103.10, 5103.20,

5104.00, 5105.21, and 5105.29 will

establish the maximum amount that is

eligible to be refunded in calendar years

2000, 2001, and 2002.

It should be noted that although onethird of the ACS-generated figure for

each of these categories establishes the

maximum amount that is eligible to be

refunded in calendar years 2000, 2001,

and 2002, this entire amount may not

necessarily be refunded. Only those

amounts of duties that are substantiated

by manufacturers, to Customs

satisfaction, will be eligible for refund.

Carded Wool Fabrics Do Not Provide the

Basis for a Section 505 Wool Duty

Refund

Customs notes that HTSUS

subheadings 5111.11.70 and 5111.19.60

are not included in the above discussion

for the following reason. Section 505(a)

of the Act authorizes a refund of duties

paid on imports of worsted wool fabrics.

Section 505(a) references two new

HTSUS subheadings, 9902.51.11 and

9902.51.12, that describe worsted wool

fabrics and were intended to provide the

basis for a wool duty refund under the

terms of the statute. Even though these

chapter 99 tariff provisions were created

in section 501(a)(1) of the Act and are

statutorily defined as including HTSUS

subheadings 5111.11.70 and 5111.19.60,

these two HTSUS subheadings provide

for carded wool fabrics and not worsted

wool fabrics. Accordingly, Customs will

not consider them purposes of the

proposed wool duty refund program.

Rather, Customs will only consider the

correlating subheadings covering

worsted wool fabrics identified above,

i.e., HTSUS subheadings 5112.11.20 and

5112.19.90.

Proposed Customs Regulations

Customs is proposing to amend the

Customs Regulations by adding a new

§ 10.184 to implement the terms of

section 505. Section 10.184 sets forth

the proposed eligibility, documentation

and procedural requirements necessary

for a claimant to establish the amount of

duties paid on eligible wool products in

calendar year 1999, and to substantiate

a claim for a duty refund in the years

2000, 2001 and 2002 under the statute.

Prospective Wool Duty Refund

Claimants Must File a Letter of Intent

With Customs To Substantiate the

Amount of Duties Paid on Eligible Wool

Products Imported in Calendar Year

1999

Customs is proposing that an eligible

manufacturer that expects to seek a

section 505 duty refund in calendar

years 2000, 2001, and 2002, must file

with Customs a letter of intent to that

effect, along with documentation that

substantiates, to Customs satisfaction,

the amount of duties paid on eligible

wool products imported in calendar

year 1999.

As section 505 permits both

importing-manufacturers and, in limited

circumstances, manufacturers who are

not importers, to claim a duty refund,

the proposed requirements for filing a

letter of intent, with appropriate

substantiating documentation, are

different for each class of claimant.

Substantiating the Amount of Duties

Paid on Eligible Wool Products

Imported in Calendar Year 1999 Where

the Manufacturer Is the Importer

In the case of a manufacturer who is

the importer of the eligible wool

products imported in calendar year

1999, it is proposed that the letter of

intent set forth the total amount of

duties actually paid by the importingmanufacturer on such merchandise. The

prospective claimant must attach to the

letter of intent a list of relevant entry

summary numbers that substantiates

this amount. The importingmanufacturer may not list any entry

summary number that did not liquidate

under the HTSUS subheadings that

provide a basis for a wool duty refund.

Substantiating the Amount of Duties

Paid on Worsted Wool Fabric Imported

in Calendar Year 1999 Where the

Manufacturer Is Not the Importer, but

Relevant Entry Summary Information Is

Available

In the case of a manufacturer who is

not the importer of worsted wool fabric

imported in calendar year 1999, it is

proposed that the manufacturer’s letter

of intent must identify the importer(s) or

supplier(s) who sold such fabric to the

manufacturer. It is further proposed that

the non-importing manufacturer must

attach to the letter of intent copies of all

relevant invoices, a completed Customs

Form (CF) 5106—Importer ID Input

Record (for purposes of administering

the duty refund), and a signed affidavit

that states that the manufacturer

purchased the imported worsted wool

fabric from an identified importer(s), or

from an identified supplier(s) who has

provided the manufacturer with

invoices or other substantiating

documentation that establishes that the

identified supplier(s) purchased such

fabric from the identified importer(s).

The manufacturer’s signed affidavit

must state that either the importer of the

worsted wool fabric has agreed to

provide the relevant entry summary

numbers directly to the manufacturer, in

which case the relevant entry summary

numbers will be attached to the

manufacturer’s signed affidavit, or the

importer has agreed to submit the

relevant entry summary information

directly to Customs as an attachment to

the importer’s signed affidavit.

Required Content of an Importer’s

Signed Affidavit in Support of a NonImporting Manufacturer’s Letter of

Intent

If an importer chooses to assist in the

substantiation of a manufacturer’s letter

of intent, and elects to submit the

relevant entry summary numbers

directly to Customs, it is proposed that

the importer must submit such

information as an attachment to a signed

affidavit. The attached entry summary

numbers must substantiate the amount

of fabric sold to the identified

manufacturer, as evidenced by the

manufacturer’s submitted invoices, and

the importer must state that no entry

summary number has been listed that

did not liquidate under HTSUS

subheadings 5112.11.20 or 5112.19.90.

The importer’s signed affidavit must

attest to the fact that the importer sold

worsted wool fabric, of a kind described

in HTSUS subheadings 5112.11.20 or

5112.19.90, and imported in calendar

year 1999, either directly to the

identified manufacturer or to the

manufacturer through an identified

third-party supplier.

Substantiating the Amount of Duties

Paid on Worsted Wool Fabric Imported

in Calendar Year 1999 Where the

Manufacturer Is Not the Importer, and

Entry Summary Information Is Not

Available

Where a manufacturer is the

purchaser, but not the importer, of

worsted wool fabric of the kind

imported in calendar year 1999 and

described in HTSUS subheadings

5112.11.20 or 5112.19.90, and the

importer of such fabric is unable or

unwilling to provide the relevant entry

summary numbers to either the

manufacturer or Customs, Customs is

aware that it may be difficult for the

manufacturer to reconstruct the amount

of duties actually paid on such imports.

Accordingly, it is proposed that in such

circumstances a non-importing

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules 64181

manufacturer may attempt to

substantiate the amount of duties paid

on calendar year 1999 imports of

worsted wool fabric by submitting

relevant calendar year 1999 invoices to

Customs. Although early year 1999

invoices may describe fabric that was

actually imported in calendar year 1998,

and, conversely, some worsted wool

fabric that was actually imported in

calendar year 1999 may be described in

invoices dated year 2000 and later,

Customs is of the view that limiting

acceptable invoices for purposes of

substantiating the amount of duties paid

in calendar year 1999 to those invoices

that are dated calendar year 1999

represents a reasonable compromise. An

invoice used for this purpose must

relate to fabric that is of the kind

described in HTSUS subheadings

5112.11.20 or 5112.19.90. Additionally,

it is proposed that where an invoice is

used to substantiate the amount of

duties paid on worsted wool fabric

imported in calendar year 1999, an

adjustment must be made to the

monetary amount reflected in the

invoice as that amount includes the

fabric seller’s mark-up, each supplier’s

mark-up in a distribution chain, as well

as the duties already paid upon

importation of the fabric. To take this

into account Customs proposes, and is

seeking public comment on, the use of

the following formula to deduct markup and calculate the duties paid on the

adjusted invoice amount:

(1) Customs will deduct 10 percent (to

reflect seller’s imputed mark-up) from

any invoice amount used to substantiate

the amount of duties paid on worsted

wool fabric imported in calendar year

1999;

(2) Customs will divide the resulting

adjusted invoice amount by 100% plus

the duty rate (the 1999 ad valorem duty

rate of 30.6% applicable to subheadings

5112.11.20 and 5112.19.90) to back out

the duty and determine the appraised

value; and

(3) Customs will then multiply the

appraised value times the 30.6% duty

rate.

Although this formula is offered as a

reasonable means of calculating the

amount of duties paid on an invoice

amount, there remain several variables

that may substantially alter the accuracy

of this formula. First, it is noted that

there is no definitive way to establish

that the fabric described in an invoice

was, in fact, imported in calendar year

1999. Second, the 10% figure (a figure

offered to Customs as reasonable by the

trade) may be too low or, in the event

there are several intermediary fabric

sellers, there may be more than one

mark-up reflected in the invoice

amount. To ensure that these variables

do not result in an artificially high

baseline from which the calendar year

2000, 2001 and 2002 duty refunds are

calculated, Customs will use ACS to

determine importer-specific aggregate

1999 duty payments on HTSUS

subheadings 5112.11.20 and 5112.19.90.

Customs will then compare the ACS

determination with the importerspecific aggregates of all claimants. If

the amount claimed exceeds the ACS

amount, Customs will adjust the

formula used for claims based on

invoices associated with that importer.

For example, if several manufacturers

source their imported worsted wool

fabric from the same importer, the

aggregate amount claimed by those

manufacturers as their 1999 duty

payments may not exceed the aggregate

amount paid by that importer in 1999.

If the aggregate amount claimed for that

importer exceeds the ACS aggregate, it

is proposed that the 10% deduction,

described in step 1 of the duty

computation formula discussed above,

for all invoice amounts associated with

that importer which were used to

substantiate the amount of duties paid

in calendar year 1999 will be increased

on a pro rata basis to ensure that

aggregate claims do not exceed the ACSgenerated amount. In this event,

amounts substantiated by entry

summary numbers will not be reduced.

Thus, if one manufacturer bases his

letter of intent on entry summaries

associated with an importer and two

other manufacturers, whose source is

the same importer, base their letters of

intent on invoices, and ACS indicates

1999 duty payments are less than the

total ascribed to that importer in letters

of intent, the 1999 duty amounts

claimed by the manufacturer whose

letter of intent is based on entry

summaries will not be affected.

However, the duty amounts claimed by

the other two manufacturers will be

reduced on a pro rata basis.

Invoices May Only Be Used To

Substantiate the Amount of Duties Paid

on Worsted Wool Fabric in Calendar

Year 1999, and May Not Be Used To

Substantiate Duties Paid in Claim Years

2000, 2001 and 2002

Section 505(d) requires a wool duty

refund claimant to properly identify and

make appropriate claim to Customs for

each entry used to substantiate the

amount of duties paid on eligible wool

products in each of calendar claim years

2000, 2001 and 2002. Accordingly,

invoices may not be used to substantiate

the amount of duties paid in each of

these claim years, and may only be used

for purposes of substantiating the

amount of duties paid on worsted wool

fabric imported in calendar year 1999

where the relevant entry summary

information is not available.

Time To File Letter of Intent

It is proposed that a prospective wool

duty refund claimant’s letter of intent,

including all related substantiating

documentation and, where necessary,

the importer’s signed affidavit with

attached entry summary information,

must be received by Customs no later

than January 31, 2001, unless this date

is extended upon due notice in the

Federal Register.

Claimant’s Individual Share of the Total

Amount of Duties Eligible To Be

Refunded

Customs will calculate each

claimant’s individual share of the total

amount of duties eligible to be refunded

based on submitted documentation that

substantiates, to Customs satisfaction,

the amount of duties paid by each

claimant, or importer on whom the

claimant relies, on eligible wool

products imported in calendar year

1999. One-third of a claimant’s

individual share will constitute the

maximum amount that claimant may

receive in each of calendar years 2000,

2001, and 2002.

Wool Duty Refund Verification Letter

It is proposed that Customs will issue

a wool duty refund verification letter to

each prospective claimant that timely

and completely substantiates, to

Customs satisfaction, the amount of

duties paid on eligible wool products

imported in calendar year 1999. The

verification letter will set forth the

prospective claimant’s Customs

identification number for purposes of

the wool duty refund program, the ACSgenerated amount of duties paid on

calendar year 1999 imports of the

eligible wool products per importer that

provide the basis for the prospective

claimant’s wool duty refund claim, the

maximum amount of wool duty refund

that the prospective claimant is eligible

to receive in each of calendar years

2000, 2001, and 2002, and, where the

aggregate amount of eligible individual

refunds exceeds the relevant ACSgenerated amount, the pro rata

deduction used to adjust the maximum

amount of wool duty refund that the

prospective claimant will be eligible to

receive in each of the claim years.

Customs proposes to issue a

verification letter to the manufacturer

no later than 30 calendar days from the

date the manufacturer’s letter of intent,

and all required supporting

documentation, is received by Customs,

64182 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

unless this date is extended upon due

notice in the Federal Register.

Procedures for Filing a Section 505

Wool Duty Refund Claim

As section 505(d) requires claimants

to identify each entry that provides the

basis for a wool duty refund, it is

proposed that all claims for a refund of

duties paid on imports of eligible wool

products in each of calendar years 2000,

2001, and 2002, must be substantiated

by a list of entry summary numbers for

that merchandise. No wool duty refunds

will be issued to a claimant until all

entry summary numbers submitted to

Customs for purposes of substantiating

the claim are liquidated.

Filing a Wool Duty Refund Claim Where

the Manufacturer Is the Importer

To file a wool duty refund claim, it is

proposed that a manufacturer who is the

importer of eligible wool products in

calendar years 2000, 2001, or 2002,

provide Customs with a copy of the

verification letter the manufacturer

received from Customs and a signed

affidavit that contains the following

information:

(1) A statement that the affiant is a

U.S. manufacturer of certain wool

products in the current calendar claim

year;

(2) A statement that the affiant

actually paid duties on imports of

eligible wool products in the current

calendar claim year;

(3) A statement as to the total amount

of duties paid on such merchandise in

the current calendar claim year;

(4) A list of current calendar claim

year entry summary numbers, set forth

as an attachment to the signed affidavit,

that substantiates the total amount of

duties paid as set forth in paragraph (3)

above, and does not exceed the affiant’s

individual share of duties eligible to be

refunded as set forth in the affiant’s

verification letter;

(5) A statement that the manufacturer

has not listed any entry summary in

paragraph (4) above that has had 99% or

more of the amount of duties paid on

that entry refunded pursuant to any

refund claim authorized by law; and

(6) A list of entry summary numbers,

set forth in paragraph (4) above, that is,

or may become, subject to any

outstanding drawback claim, protest, or

any other refund claim authorized by

law.

Filing a Wool Duty Refund Claim Where

the Manufacturer Is Not the Importer

Where a manufacturer of men’s or

boys’ suits, suit-type jackets, or trousers

of worsted wool fabric, of the kind

described in HTSUS subheadings

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12, is not the importer of such

fabric, the manufacturer may not

possess the requisite entry summary

numbers necessary to substantiate a

wool duty refund claim. In such

situations, it is proposed that the nonimporting manufacturer arrange for the

importer of such fabric to supply the

relevant entry summary numbers to

Customs. The importer may either

submit the relevant entry summary

numbers directly to the non-importing

manufacturer, who will attach this

information to the manufacturer’s

signed affidavit, or the importer may

submit this information directly to

Customs as an attachment to the

importer’s signed affidavit.

If the importer provides the relevant

entry summary numbers directly to the

non-importing manufacturer, it is

proposed that the manufacturer

substantiate a claim for a wool duty

refund by submitting to Customs a copy

of the verification letter the

manufacturer received from Customs,

copies of all relevant invoices, and a

signed affidavit that contains the

following information:

(1) A statement that the affiant is a

U.S. manufacturer, in the current

calendar year, of men’s or boys’ suits,

suit-type jackets, or trousers, of

imported worsted wool of the kind

described in HTSUS subheadings

5112.11.20, 5112.19.90, 9902.51.11, or

9902.51.12;

(2) A statement that the affiant is not

the importer, in the current calendar

claim year, of imported worsted wool

fabric of the kind described in

paragraph (1) above;

(3) A statement that the affiant

purchased imported worsted wool fabric

of the kind described in paragraph (1)

above from an identified importer(s) or

from an identified supplier(s), and

copies of relevant invoices are attached;

(4) Where the affiant purchased

imported worsted wool fabric of the

kind described in paragraph (1) above,

a statement that the affiant has

substantiating documentation that

establishes that such fabric was

imported by the identified importer(s);

and

(5) A list of relevant entry summary

numbers that substantiates the amount

of duties paid in the current calendar

year on worsted wool fabric of the kind

described in paragraph (1) above, that is

identified in the manufacturer’s

submitted invoice(s).

If the importer provides the relevant

entry summary numbers directly to

Customs as an attachment to the

importer’s signed affidavit, it is

proposed that the manufacturer

substantiate a claim for a wool duty

refund in the same manner as described

above, except that instead of submitting

the relevant entry summary numbers to

Customs, the non-importing

manufacturer must state in the affidavit

that the identified importer has agreed

to submit this information directly to

Customs as an attachment to the

importer’s signed affidavit. Unless

Customs timely receives signed

affidavits containing the requisite

substantiating information from both the

manufacturer and, where applicable, the

importer, the manufacturer’s claim for a

wool duty refund pursuant to section

505 will be deemed incomplete and

denied by Customs.

Required Content of an Importer’s

Signed Affidavit in Support of a NonImporting Manufacturer’s Wool Duty

Refund Claim

If an importer chooses to assist in the

substantiation of a non-importing

manufacturer’s wool duty refund claim

by submitting the relevant entry

summary numbers directly to Customs

as an attachment to the importer’s

signed affidavit, the affidavit must

contain the following information:

(1) A statement that the importer

actually paid duties in the current

calendar claim year on worsted wool

fabric of the kind described in HTSUS

subheadings 5112.11.20, 5112.19.90,

9902.51.11 or 9902.51.12;

(2) A statement that the importer sold

worsted wool fabric of the kind

described in paragraph (1) above to the

identified manufacturer or to an

identified supplier(s);

(3) A list of relevant entry summary

numbers for fabric of the kind described

in paragraph (1), in an amount that

substantiates that amount of fabric sold

to the manufacturer, as evidenced by the

manufacturer’s invoices;

(4) A list of any entry summary

numbers in paragraph (3) above that has

had 99% or more of the amount of

duties paid on that entry refunded

pursuant to any refund claim authorized

by law; and

(5) A list of entry summary numbers,

set forth in paragraph (3) above, that is,

or may become, subject to any

outstanding drawback claim, protest, or

any other refund claim authorized by

law.

Timely and Complete Wool Duty Refund

Claims

In order for a manufacturer’s wool

duty refund claim to be deemed timely

and complete, Customs must receive the

substantiating documentation proposed

above, including, where applicable, the

importer’s signed affidavit with relevant

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules 64183

attachments, no later than 90 calendar

days from the last day of the calendar

year in which duties were paid for

which a refund is being sought.

Section 505 Wool Duty Refund Claims

and Other Claims for Refunds or

Drawback

Once an entry summary has been

used to provide the basis for a duty

refund claim pursuant to section 505,

and the entire amount of duties paid on

eligible wool products is refunded to the

claimant, it is proposed that Customs

will deny any subsequent claim for

drawback of the same duties, or any

other claim for a refund of those duties.

However, if an entry summary has been

used to substantiate a claim for a section

505 duty refund, and an amount in

duties paid on that entry has not been

refunded, it is proposed that the

remaining amount may be eligible for

drawback or any other refund claim

authorized by law. Conversely, if an

entry summary has been used to

substantiate a drawback claim, or any

refund claim authorized by law, and an

amount in duties paid on that entry has

not been refunded, it is proposed that

the remaining amount may be eligible

for a subsequent section 505 duty

refund claim.

In situations where an entry summary

is eligible to substantiate a section 505

claim, as well as a claim for drawback

or any other claim authorized by law, it

is proposed that the claim that is

received first by Customs, and deemed

timely and complete, will be processed

first.

Comments

Before adopting this proposal as a

final rule, consideration will be given to

any written comments timely submitted

to Customs, including 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 of the Treasury

Department Regulations (31 CFR 1.4),

and § 103.11(b) of the Customs

Regulations (19 CFR 103.11(b)), on

regular business days between the hours

of 9 a.m. and 4:30 p.m. at the

Regulations Branch, Office of

Regulations and Rulings, U.S. Customs

Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, DC.

The Regulatory Flexibility Act and

Executive Order 12866

These proposed regulatory changes

implement the terms of section 505 of

the Trade and Development Act of 2000,

which went into effect May 18, 2000.

Because these proposed changes benefit

the public by allowing eligible

claimants to receive a refund of duties

paid on imports of certain wool

products, pursuant to the provisions of

the Regulatory Flexibility Act, 5 U.S.C.

601 et seq., it is certified that, if

adopted, the proposed amendments will

not have a significant impact on a

substantial number of small entities.

Further, these proposed amendments do

not meet the criteria for a ‘‘significant

regulatory action’’ as specified in E.O.

12866.

Paperwork Reduction Act

The collection of information

contained in this notice of proposed

rulemaking has been reviewed under

the requirements of the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507)

and, pending receipt and evaluation of

public comments, approved by the

Office of Management and Budget

(OMB) under control number 1515–

0227. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by OMB.

Comments on the collection of

information should be sent to OMB,

Attention: Desk Officer for the

Department of the Treasury, Office of

Information and Regulatory Affairs,

Washington, DC 20503. A copy should

also be sent to the Regulations Branch

at the address set forth above.

Comments should be submitted within

the time frame that comments are due

regarding the substance of the proposal.

Comments are invited on:

(a) Whether the collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information will have practical utility;

(b) The accuracy of the agency’s

estimate of the information collection

burden;

(c) Ways to enhance the quality,

utility, and clarity of the information to

be collected;

(d) Ways to minimize the information

collection burden on respondents,

including through the use of automated

collection techniques or other forms of

information technology; and

(e) Estimates of capital or start-up

costs and costs of operations,

maintenance, and purchase of services

to provide information.

The collection of information in this

proposed rule is in § 10.184. The

information requested is necessary to

implement the terms of section 505 of

the Trade and Development Act of 2000,

whereby Customs is authorized to

substantiate and process claims for

refunds of duties paid in each of

calendar years 2000, 2001, and 2002, on

imports of certain wool products. The

collection of information is required in

order for a claimant to obtain the duty

refund. The likely respondents are

business organizations who seek a

refund of duties paid on imports of

eligible wool products in each of

calendar years 2000, 2001, and 2002.

Estimated total annual reporting and/

or recordkeeping burden: 8,600 hours.

Estimated average annual burden per

respondent/recordkeeper: 290 hours.

Estimated number of respondents

and/or recordkeepers: 30.

Estimated annual frequency of

response: 2.

If this proposal is adopted, part 178 of

the Customs Regulations (19 CFR part

178), which lists the information

collections contained in the regulations

and control numbers assigned by OMB,

will be amended accordingly

Drafting Information

The principal author of this document

was Suzanne Kingsbury, Regulations

Branch, Office of Regulations and

Rulings, U.S. Customs Service.

However, personnel from other offices

participated in its development.

List of Subjects in 19 CFR Part 10

Customs duties and inspection,

Imports, Reporting and recordkeeping

requirements, Trade agreements.

Proposed Amendment to the

Regulations

For the reasons stated above, it is

proposed to amend part 10 of the

Customs Regulations (19 CFR part 10) as

set forth below.

PART 10—ARTICLES CONDITIONALLY

FREE, SUBJECT TO A REDUCED

RATE, ETC.

1. The general authority citation for

part 10 is revised, and a new specific

authority citation for § 10.184 is added,

to read as follows:

Authority: 19 U.S.C. 66, 1202 (General

Note 22, Harmonized Tariff Schedule of the

United States), 1321, 1481, 1484, 1498, 1508,

1623, 1624, 3314.

* * * * *

Section 10.184 is also issued under

Sec. 505, Pub. L. 106–200, 114 Stat. 251;

* * * * *

2. A new center heading and wool

refunds § 10.184 is added to read as

follows:

§ 10.184 Refund of duties on certain wool

imports.

(a) General. Section 505 of Title V of

Pub. L. 106–200 (114 Stat. 251), entitled

64184 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

the Trade and Development Act of 2000,

authorizes the President to refund

duties paid on imports of eligible wool

products. The statute permits eligible

importing-manufacturers and, in certain

circumstances, manufacturers who are

not importers, to apply for a refund of

duties paid on imports of eligible wool

products in each of three succeeding

years. Claimants are eligible for a refund

of duties paid on imports of eligible

wool products in each of calendar years

2000, 2001 and 2002, limited to an

amount not to exceed one-third of the

duties paid on such wool products

imported in calendar year 1999. This

section sets forth the legal requirements

and procedures that apply for purposes

of obtaining this duty refund.

(b) Eligible wool products. For

purposes for this section, the term

‘‘eligible wool product’’ means an

imported wool product described under

a Harmonized Tariff Schedule of the

United States subheading listed under

paragraph (c) of this section, relevant to

a manufacturer of the particular wool

products specified in paragraph (c).

(c) Refunds authorized by section

505—(1) Worsted wool fabric. In each of

calendar years 2000, 2001, and 2002, a

manufacturer of men’s or boys’ suits,

suit-type jackets, or trousers, of

imported worsted wool fabric of the

kind described in HTSUS subheadings

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12, is eligible to claim a refund

of the duties paid on entries of such

fabric that were purchased by the

manufacturer. The amount of duties

eligible to be refunded to the

manufacturer in each of these calendar

years is limited to an amount not to

exceed one-third of the amount of duties

paid on calendar year 1999 imports of

such worsted wool fabrics that were

purchased by the manufacturer. A

broker or other individual acting on

behalf of the manufacturer is ineligible

to claim a duty refund.

(2) Wool yarn. A manufacturer of

worsted wool fabric, who imports wool

yarn of the kind described in HTSUS

subheadings 5107.10.00 and 9902.51.13,

is eligible to claim a limited refund of

the duties paid by the manufacturer on

entries of such wool yarn in each of

calendar years 2000, 2001, and 2002.

The amount of duties eligible to be

refunded in each of these calendar years

is limited to an amount not to exceed

one-third of the amount of duties paid

by the importing-manufacturer on such

wool yarn imported in calendar year

1999.

(3) Wool fiber and wool top. A

manufacturer of wool yarn or wool

fabric, who imports wool fiber or wool

top of the kind described in HTSUS

subheadings 5101.11, 5101.19, 5101.21,

5101.29, 5101.30, 5103.10, 5103.20,

5104.00, 5105.21, 5105.29, or

9902.51.14, is eligible to claim a limited

refund of the duties paid by the

manufacturer on entries of such wool

fiber or wool top in each of calendar

years 2000, 2001, and 2002. The amount

of duties eligible to be refunded in each

of these calendar years is limited to an

amount not to exceed one-third of the

amount of duties paid by the importingmanufacturer on such wool yarn

imported in calendar year 1999.

(d) Manufacturer’s letter of intent to

file a claim for a wool duty refund. A

manufacturer that expects to file a wool

duty refund claim in calendar years

2000, 2001, and 2002, pursuant to the

terms of paragraph (c) of this section,

must first file with Customs a letter of

intent to that effect. A manufacturer’s

letter of intent must substantiate, to

Customs satisfaction, the amount of

duties paid on eligible wool products

imported in calendar year 1999.

(1) Documentation required where the

manufacturer is the importer. Where a

manufacturer is the importer of the

eligible wool products imported in

calendar year 1999, a letter of intent to

file a wool duty refund claim must be

signed by the manufacturer or a

knowledgeable authorized officer or

employee of the manufacturer and must

state that, to the best of the signer’s

knowledge and belief, the information

contained in the letter is accurate and

truthful. The letter of intent must

contain the following information:

(i) A statement of the total amount of

duties paid by the importingmanufacturer on eligible wool products

imported in calendar year 1999;

(ii) A list of relevant entry summary

numbers, set forth as an attachment in

either a paper or an electronic format

(the latter submitted to Customs on

diskette), that substantiates the amount

set forth in paragraph (d)(1)(i) of this

section; and

(iii) A statement that no entry

summary has been listed in paragraph

(d)(1)(ii) of this section that did not

liquidate under the HTSUS subheadings

that provide a basis for a wool duty

refund.

(1) Documentation required where the

manufacturer is not the importer, but

the manufacturer possesses the relevant

entry summary numbers. Where a

manufacturer described in paragraph

(c)(1) of this section is not the calendar

year 1999 importer of worsted wool

fabric of the kind described in HTSUS

subheadings 5112.11.20 or 5112.19.90,

but possesses the relevant entry

summary numbers, a letter of intent to

file a wool duty refund claim must be

submitted to Customs and signed by the

non-importing manufacturer or a

knowledgeable authorized officer or

employee of the manufacturer. The

letter of intent must state that, to the

best of the signer’s knowledge and

belief, the information contained in the

letter is accurate and truthful.

(i) The non-importing manufacturer’s

letter of intent must contain the

following information:

(A) A statement as to the identity of

the importer(s) or supplier(s) who sold

imported worsted wool fabric of the

kind described in HTSUS subheadings

5512.11.20 or 5112.19.90 to the

manufacturer;

(B) Copies of all relevant invoices, set

forth as an attachment, that demonstrate

that the manufacturer purchased

imported worsted wool fabric of the

kind described in paragraph (d)(2)(i)(A)

of this section from an identified

importer(s) or identified supplier(s) and

that establish, where applicable, that the

identified supplier(s) purchased such

fabric from the identified importer(s);

(B) A completed Customs Form (CF)

5106—Importer ID Input Record, set

forth as an attachment; and

(D) A signed affidavit, set forth as an

attachment, that contains the following

information:

(1) A statement that the affiant is a

U.S. manufacturer of men’s or boys’

suits, suit-type jackets, or trousers, of

imported worsted wool of the kind

described in HTSUS subheadings

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12;

(2) A statement that the affiant was

not the importer in calendar year 1999

of worsted wool fabric of the kind

described in HTSUS subheadings

5112.11.20 or 5112.19.90;

(3) A statement as to the quantity of

imported worsted wool fabric of the

kind described in paragraph

(d)(2)(i)(D)(2) of this section that the

affiant purchased from an identified

importer(s) or from an identified

supplier(s), with copies of relevant

invoices attached;

(4) If the affiant purchased fabric of

the kind described in paragraph

(d)(2)(i)(D)(2) of this section from an

identified supplier, a statement that the

affiant has been provided with

substantiating documentation that

establishes that the subject fabric was

imported by the identified importer; and

(5) A statement by the affiant that the

identified importer(s) has provided a list

of relevant entry summary numbers

directly to the affiant that substantiates

the amount of duties paid in calendar

year 1999 on the fabric identified in the

submitted invoices, and such

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules 64185

information is set forth as an

attachment; or

(6) A statement by the affiant that the

identified importer has agreed to submit

a signed affidavit directly to Customs

with the relevant entry summary

numbers attached.

(ii) A non-importing manufacturer’s

affidavit to substantiate the amount of

duties paid on worsted wool fabric

imported in calendar year 1999 must be

signed by the manufacturer or a

knowledgeable authorized officer or

employee of the manufacturer, and be

submitted to Customs in the following

format:

Non-Importing Manufacturer’s Affidavit in

Support of a Letter of Intent To File a Wool

Duty Refund Claim (Where the

Manufacturer Possesses the Relevant Entry

Summary Numbers)

1. The undersigned, (name of

manufacturer), is a U.S. manufacturer of

men’s or boys’ suits, suit-type jackets, or

trousers, of imported worsted wool fabric of

the kind described in HTSUS subheadings

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12;

2. The undersigned was not the importer

in calendar year 1999 of worsted wool fabric

of the kind described in item (1) above;

3. The undersigned purchased (specify

quantity) of imported worsted wool fabric of

the kind described in item (1) above from

(name of importer) or from a supplier (name

of supplier), and copies of the relevant

invoices are attached;

4. Where the undersigned purchased

imported worsted wool fabric of the kind

described in item (1) above from (name of

supplier), the undersigned has substantiating

documentation that establishes that such

fabric was imported by (name of importer);

5(a). Attached is a list of relevant entry

summary numbers, provided directly to the

undersigned by (name of importer), that

substantiates the amount of duties paid in

calendar year 1999 on the fabric identified in

the attached invoices; or

5(b). The importer, (name of importer), has

agreed to submit a signed affidavit directly to

Customs that attests to the fact that the

importer sold imported worsted wool fabric

of the kind described in item (1) above to the

undersigned or to identified supplier(s), and

to attach a list of the relevant entry summary

numbers that substantiates the amount of

duties paid in calendar year 1999 on the

fabric identified in the attached invoices; and

6. The undersigned attests that the

information set forth in this affidavit is true

and accurate to the best of the affiant’s

knowledge and belief.

(iii) If an importer assists in the

substantiation of a non-importing

manufacturer’s letter of intent by

submitting relevant entry summary

numbers directly to Customs as an

attachment to a signed affidavit, the

importer’s affidavit must be signed by

the importer or a knowledgeable officer

or employee of the importer and must

state that, to the best of the affiant’s

knowledge and belief, the information

contained in the affidavit is accurate

and truthful. The importer’s signed

affidavit must contain the following

information:

(A) A statement that the affiant paid

duties on worsted wool fabric of the

kind described in HTSUS subheadings

5112.11.20 or 5112.19.90, imported in

calendar year 1999;

(B) Identification of the claimant, or

supplier to the claimant, to whom the

affiant sold imported worsted wool

fabric of the kind described in

paragraph (d)(2)(iii)(A) of this section;

(C) A list of relevant entry summary

numbers for worsted wool fabric of the

kind described in paragraph

(d)(2)(iii)(A) of this section, imported in

calendar year 1999, set forth as an

attachment in either a paper or an

electronic format (the latter submitted to

Customs on diskette), that substantiates

the amount of duty paid in calendar

year 1999 on the fabric sold to the

identified claimant or identified

supplier, as evidenced by the claimant’s

invoices; and

(D) A statement that the importer has

not listed any entry summary in

paragraph (d)(2)(iii)(C) of this section

that did not liquidate under HTSUS

subheadings 5112.11.20 or 5112.19.90.

(iv) The importer’s affidavit in

support of a non-importing

manufacturer’s letter of intent to claim

a wool duty refund must be signed by

the importer or a knowledgeable officer

or employee of the importer, and be

submitted to Customs in the following

format:

Importer’s Affidavit in Support of a NonImporting Manufacturer’s Letter of Intent To

Claim a Wool Duty Refund

1. The undersigned, (name of importer), is

an importer who paid duties on worsted

wool fabric of the kind described in HTSUS

subheadings 5112.11.20 or 5112.19.90,

imported in calendar year 1999;

2. The undersigned sold worsted wool

fabric of the kind described in item (1) above

to a manufacturer identified as (name of

manufacturer) or to a supplier(s) identified as

(name of supplier);

3. Attached is a list of relevant entry

summary numbers for worsted wool fabric of

the kind described in item (1) above that

substantiates the amount of duties paid in

calendar year 1999 on the fabric that was

sold to (name of manufacturer) or to (name

of supplier(s)) by the undersigned;

4. The undersigned has not listed any entry

summary in item (3) above that did not

liquidate under HTSUS subheadings

5512.11.20 or 5112.11.90; and

5. The undersigned attests that the

information set forth in this affidavit is true

and accurate to the best of the affiant’s

knowledge and belief.

(3) Documentation required where the

manufacturer is not the importer and

the manufacturer does not possess the

relevant entry summary numbers.

Where a manufacturer described in

paragraph (c)(1) of this section is not the

calendar year 1999 importer of worsted

wool fabric of the kind described in

HTSUS subheadings 5112.11.20 or

5112.19.90, and does not possess the

relevant entry summary numbers, a

letter of intent to file a wool duty refund

claim must be submitted to Customs

and signed by the non-importing

manufacturer or a knowledgeable

authorized officer or employee of the

manufacturer. The letter of intent must

state that, to the best of the signer’s

knowledge and belief, the information

contained in the letter is accurate and

truthful.

(i) The non-importing manufacturer’s

letter of intent, where the manufacturer

does not possess the relevant entry

summary numbers, must contain the

following information:

(A) A statement as to the identity of

the importer(s) or supplier(s) who sold

imported worsted wool fabric of the

kind described in HTSUS subheadings

5512.11.20 or 5112.19.90 to the nonimporting manufacturer;

(B) Copies of all relevant calendar

year 1999 invoices, set forth as an

attachment, that demonstrate that the

non-importing manufacturer purchased

imported worsted wool fabric of the

kind described in paragraph (d)(2)(i)(A)

of this section from an identified

importer(s) or identified supplier(s);

(C) A statement that if the nonimporting manufacturer purchased

imported worsted wool fabric of the

kind described in paragraph (d)(2)(i)(A)

of this section from an identified

supplier, the manufacturer has

substantiating documentation that

establishes that such fabric was

imported by the identified importer;

(D) A completed Customs Form (CF)

5106—Importer ID Input Record, set

forth as an attachment; and

(E) A signed affidavit, set forth as an

attachment, that contains the following

information:

(1) A statement that the affiant is a

U.S. manufacturer of men’s or boys’

suits, suit-type jackets, or trousers, of

imported worsted wool of the kind

described in HTSUS subheadings

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12;

(2) A statement that the affiant was

not the importer in calendar year 1999

of worsted wool fabric of the kind

described in HTSUS subheadings

5112.11.20 or 5112.19.90;

(3) A statement of the quantity of

imported worsted wool fabric of the

64186 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

kind described in paragraph

(d)(3)(i)(D)(2) of this section that the

affiant purchased from an identified

importer(s) or from an identified

supplier(s), with copies of the relevant

invoices attached;

(4) A statement that where the affiant

purchased imported worsted wool fabric

of the kind described in paragraph

(d)(3)(i)(D)(2) of this section from an

identified supplier, the affiant has

substantiating documentation that

establishes that such fabric was

imported by the identified importer; and

(5) A statement by the affiant that a

good faith effort was made to contact the

identified importer and request relevant

entry summary numbers that

substantiate the amount of duties paid

in calendar year 1999 on fabric

identified in the submitted invoices, but

the identified importer is unable or

unwilling to provide such assistance.

(ii) A non-importing manufacturer’s

affidavit to substantiate the amount of

duties paid by the importer on worsted

wool fabric imported in calendar year

1999, where no entry summary numbers

are available, must be signed by the

manufacturer or a knowledgeable

authorized officer or employee of the

manufacturer, and be submitted to

Customs in the following format:

Non-Importing Manufacturer’s Affidavit in

Support of a Letter of Intent To File a Wool

Duty Refund Claim (Where the

Manufacturer Does Not Possess the Relevant

Entry Summary Numbers)

1. The undersigned, (name of

manufacturer), is a U.S. manufacturer of

men’s or boys’ suits, suit-type jackets, or

trousers, of imported worsted wool fabric of

the kind described in HTSUS subheadings

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12;

2. The undersigned was not the importer

in calendar year 1999 of worsted wool fabric

of the kind described in item (1) above;

3. The undersigned purchased (specify

quantity) of imported worsted wool fabric of

the kind described in item (1) above from

(name of importer) or from a supplier (name

of supplier), and copies of relevant invoices

are attached;

4. If the undersigned has purchased

imported worsted wool fabric of the kind

described in item (1) above from (name of

supplier), the undersigned has substantiating

documentation that establishes that such

fabric was imported by (name of importer);

5. The undersigned attests that a good faith

effort was made to contact the identified

importer(s) and request that relevant entry

summary numbers be provided to either the

undersigned or directly to Customs that

substantiate the amount of duties paid in

calendar year 1999 on fabric identified in the

submitted invoices, but the identified

importer is unable or unwilling to provide

such assistance.

6. The undersigned attests that the

information set forth in this affidavit is true

and accurate to the best of the affiant’s

knowledge and belief.

(4) Time to file a letter of intent. A

manufacturer’s letter of intent to file a

wool duty refund claim, including all

attachments and, where applicable, the

importer’s signed affidavit in support of

the manufacturer’s letter of intent, must

be received by Customs no later than

January 31, 2001, unless this date is

extended upon due notice in the

Federal Register.

(e) Customs verification letter.

Customs will issue to a prospective

claimant a written verification letter

within 30 calendar days from the date

Customs receives a timely and complete

letter of intent that substantiates, to

Customs satisfaction, the amount of

duties paid on eligible wool products

imported in calendar year 1999. The

amount of potential duty refund will be

based on the quantity of eligible wool

products that was imported by the

prospective claimant or, where the

prospective claimant was not the

importer, purchased by the prospective

claimant (as indicated by submitted

invoices). If entry summary numbers are

used to substantiate the amount of

duties paid on eligible wool products in

calendar year 1999, the potential refund

amount will be limited to the amount of

duties paid on such entry summaries

that is attributable to that quantity of

eligible wool products. If invoices are

used to substantiate the amount of

duties paid on worsted wool fabrics in

calendar year 1999, the amount of

duties will be determined by deducting

10 percent from the invoice amounts,

dividing the resulting adjusted invoice

amounts by 100% plus the duty rate

(30.6%) to back out the duty, and then

multiplying that amount times the duty

rate (30.6%). If the aggregate amount of

duties attributable to an importer

exceeds the amount of duties paid by

that importer in calendar year 1999, as

indicated by ACS, an adjustment will be

made to those claimants requiring use of

the invoice formula. The percentage

deducted from the invoice amounts for

those claimants will be increased on a

pro rata basis to ensure that the

aggregate amount to be refunded does

not exceed the ACS amount. Refund

amounts substantiated by entry

summary numbers will not be reduced.

A letter of verification will set forth the

following information:

(1) The prospective claimant’s claim

identification number;

(2) The ACS-generated amount of

duties paid on calendar year 1999

imports of the eligible wool products

per importer that provide the basis for

the prospective claimant’s wool duty

refund claim;

(3) The maximum amount of wool

duty refund that the individual

prospective claimant will be eligible to

receive in each of calendar years 2000,

2001, and 2002; and

(4) Where invoices are used to

substantiate the amount of duties paid

on worsted wool fabric in calendar year

1999, the percentage that was deducted

from the invoice amounts, with

accompanying explanation.

(f) Eligibility criteria to claim a duty

refund in calendar years 2000, 2001,

and 2002. To be eligible to claim a

refund of duties paid on imports of

certain wool products in calendar years

2000, 2001, and 2002, a claimant must

be in receipt of a claim verification

letter from Customs. Additionally, in

each such calendar year a claimant must

be:

(1) A U.S. manufacturer of men’s or

boys’ suits, suit-type jackets, or trousers,

of imported worsted wool fabric of the

kind described in HTSUS subheadings

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12, for which duties were paid

in that year;

(2) A U.S. manufacturer of worsted

wool fabric who paid duties in that year

on imported wool yarn of the kind

described in HTSUS subheadings

5107.10.00 or 9902.51.13; or

(3) A U.S. manufacturer of wool yarn

or wool fabric who paid duties in that

year on imported wool fiber or wool top

of the kind described in HTSUS

subheadings 5101.11, 5101.19, 5101.21,

5101.29, 5101.30, 5103.10, 5103.20,

5104.00, 5105.21, 5105.29 or

9902.51.14.

(g) Procedures for filing a claim—(1)

Time to file. An eligible claimant may

submit to Customs, once per calendar

year, a request for a refund of duties

paid on imports of eligible wool

products in each of calendar years 2000,

2001, and 2002. A claim may be

amended within 30 calendar days from

the date of the original submission or,

if Customs has notified the claimant in

writing that the claim is insufficient to

support a duty refund claim or is

otherwise defective, within 30 calendar

days from the date of the Customs

notification. All claims for a wool duty

refund, whether original or amended,

must be received by Customs within 90

calendar days from the last day of the

calendar year for which a wool duty

refund is being sought.

(1) Place to file. A claim for a refund

of duties paid on imports of eligible

wool products must be submitted to:

U.S. Customs Service, Wool Refund

Claim, Residual Liquidation and Protest

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules 64187

Branch, Rm. 761, 6 World Trade Center,

New York, N.Y. 10048–0945.

(2) Documentation. (i) Where the

manufacturer is the importer. To file a

wool duty refund claim, an importingmanufacturer must provide Customs

with a copy of the verification letter the

claimant received from Customs and an

affidavit, signed by the manufacturer or

a knowledgeable officer or employee of

the manufacturer, that contains the

following information:

(A) A statement that the affiant is a

U.S. manufacturer of the kind described

in either paragraphs (f)(1), (f)(2) or (f)(3)

of this section, in the current calendar

claim year;

(B) A statement of the total amount of

duties paid by the affiant in that year on

eligible wool products;

(C) The total amount of duty refund

being claimed;

(D) A list of relevant entry summary

numbers, set forth as an attachment and

submitted to Customs in either a paper

or an electronic format (the latter on

diskette), that substantiates the amount

of duties for which a refund is being

claimed in paragraph (g)(3)(i)(C) of this

section, and does not exceed the

affiant’s share of duties eligible to be

refunded as set forth in the attached

verification letter;

(E) A statement that no entry

summary has been listed in paragraph

(g)(3)(i)(D) of this section that has

already had 99% or more of the amount

of duties paid on that entry refunded

pursuant to any refund claim authorized

by law; and

(F) A statement that identifies, if

applicable, any entry summary listed in

paragraph (g)(3)(i)(D) of this section that

is, or may become, subject to an

outstanding drawback claim, protest, or

any other refund claim authorized by

law.

(ii) Form of affidavit. An importingmanufacturer’s signed affidavit to

substantiate a wool duty refund claim in

calendar years 2000, 2001, or 2002 must

be signed by the manufacturer, or a

knowledgeable officer or employee of

the manufacturer, and be submitted to

Customs in the following format:

Importing-Manufacturer’s Affidavit in

Support of a Claim for a Wool Duty Refund

Under Section 505 of the Trade and

Development Act of 2000, for Calendar Year

1. The undersigned, (name of

manufacturer), is a U.S. manufacturer of the

kind described in either paragraph (f)(1) [l],

(f)(2) [l] or (f)(3) [l] [check one] of § 10.184

of the Customs Regulations (19 CFR

10.184(f), in the current calendar claim year;

2. The undersigned paid (total amount of

duties paid) in calendar year llll on

eligible wool products;

3. The amount of wool duty refund being

claimed is $llll;

4. Attached is a list of the relevant current

claim year entry summary numbers that

substantiate the amount of duty refund being

claimed in item (3) above;

5. The undersigned has not listed any entry

summary in item (4) above that has had 99%

or more of the amount of duties paid on that

entry refunded pursuant to any refund claim

authorized by law;

6. The undersigned will list any entry

summary in item (4) above that is, or may

become, subject to an outstanding drawback

claim, protest, or any other refund claim

authorized by law; and

7. The undersigned attests that the

information set forth in this affidavit is true

and accurate to the best of the affiant’s

knowledge and belief.

(iii) Where the manufacturer is not the

importer. To file a wool duty refund

claim a manufacturer of men’s or boys’

suits, suit-type jackets, or trousers, of

imported worsted wool fabric of the

kind described in HSTUS subheadings

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12, who is a purchaser but not

the importer of such fabric, must

provide Customs with a copy of the

verification letter the claimant received

from Customs and an affidavit signed by

the manufacturer, or a knowledgeable

officer or employee of the manufacturer,

that contains the following information:

(A) A statement that the affiant is a

U.S. manufacturer in the current

calendar claim year of men’s or boys’

suits, suit-type jackets, or trousers, of

imported worsted wool fabric of the

kind described in HTSUS subheadings

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12;

(B) A statement that the affiant is not

the importer in the current calendar

year of imported worsted wool fabric of

the kind described in paragraph

(g)(3)(iii)(A) of this section;

(C) A statement as to the quantity of

imported worsted wool fabric of the

kind described in paragraph

(g)(3)(iii)(A) of this section that the

affiant purchased from an identified

importer(s) or from an identified

supplier(s), with copies of relevant

invoices attached;

(D) A statement that where the affiant

purchased imported worsted wool fabric

of the kind described in paragraph

(g)(3)(iii)(A) of this section from an

identified supplier(s), the affiant has

substantiating documentation that

establishes that such fabric was

imported by the identified importer(s);

(E) A statement by the affiant that the

identified importer(s) has provided a list

of relevant entry summary numbers

directly to the affiant that substantiates

the amount of duties paid in the current

calendar claim year on the fabric

identified in the submitted invoices,

and such information is set forth as an

attachment; or

(F) A statement by the affiant that the

identified importer(s) has agreed to

submit a signed affidavit directly to

Customs with the relevant entry

summary numbers attached, that

substantiates the amount of duties paid

in the current calendar claim year on

the fabric identified in the submitted

invoices.

(iv) Form of affidavit. A manufacturer

who is not the importer of the imported

worsted wool fabric must submit to

Customs an affidavit to substantiate a

wool duty refund claim in calendar

years 2000, 2001, or 2002, signed by the

manufacturer or a knowledgeable officer

or employee of the manufacturer, in the

following format:

Non-Importing Manufacturer’s Affidavit in

Support of a Claim for a Duty Refund Under

Section 505 of the Trade and Development

Act of 2000, for Calendar Year

1. The undersigned, (name of

manufacturer), is a U.S. manufacturer in

calendar year llll of men’s or boys’

suits, suit-type jackets, or trousers, of

imported worsted wool of the kind described

5112.11.20, 5112.19.90, 9902.51.11 or

9902.51.12;

2. The undersigned was not the importer

of imported worsted wool fabric of the kind

described in item (1) above;

3. The undersigned purchased (specify

quantity) of imported worsted wool fabric of

the kind described in item (1) above from

(name of importer(s)) or from a supplier(s),

and the relevant invoices are attached;

4. Where the undersigned purchased

imported worsted wool fabric of the kind

described in item (1) above from (name of

supplier), the undersigned has substantiating

documentation that establishes that such

fabric was imported by (name of importer);

5(a). Attached is a list of relevant entry

summary numbers, provided directly to the

undersigned by (name of importer), that

substantiates the amount of duties paid in the

current calendar claim year on the fabric

identified in the attached invoices; or

5(b). The importer, (name of importer), has

agreed to submit a signed affidavit directly to

Customs that attests to the fact that the

importer sold imported worsted wool fabric

of the kind described in item (1) above to the

undersigned or to (name of supplier), and has

agreed to attach a list of the relevant entry

summary numbers that substantiates the

amount of duties paid in the current calendar

claim year on

64188 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Proposed Rules

the fabric identified in the attached invoices;

and

6. The undersigned attests that the

information set forth in this affidavit is true

and accurate to the best of the affiant’s

knowledge and belief.

(v) Required content of an importer’s

signed affidavit in support of a

manufacturer’s wool duty refund claim.

Where an importer chooses to assist in

the substantiation of a non-importing

manufacturer’s wool duty refund claim

by submitting relevant entry summary

numbers directly to Customs, such entry

information must be set forth as an

attachment to an affidavit that is signed

by the importer or by a knowledgeable

officer or employee of the importer, and

must contain the following information:

(A) A statement as the total amount of

duties that the importer paid in the

current calendar claim year on worsted

wool fabric of the kind described in

paragraph (g)(3)(iii) of this section;

(B) A statement that the importer sold

worsted wool fabric of the kind

described in paragraph (g)(3)(iii) of this

section, to the identified manufacturer

or to the identified supplier(s);

(C) A list of relevant entry summary

numbers for the worsted wool fabric of

the kind described in paragraph

(g)(3)(iii) of this section, set forth as an

attachment in either a paper or an

electronic format (the latter submitted to

Customs on diskette), that substantiates

the amount of duties paid during the

current calendar claim year on such

fabric that was sold by the importer to

the identified manufacturer or to the

identified supplier(s);

(D) A statement that no entry

summary number has been listed in

paragraph (g)(3)(v)(C) of this section that

has already had 99% or more of the

amount of duties paid on that entry

refunded pursuant to any refund claim

authorized by law; and

(E) A statement that lists any entry

summary number in paragraph

(g)(3)(v)(C) of this section that is, or may

become, subject to an outstanding

drawback claim, protest, or any other

refund claim authorized by law.

(vi) Form of affidavit. The importer’s

affidavit in support of a manufacturer’s

wool duty refund claim must be signed

by the importer or by a knowledgeable

officer or employee of the importer, and

be submitted to Customs in the

following format:

Importer’s Affidavit in Support of a NonImporting Manufacturer’s Claim for a Duty

Refund Under Section 505 of the Trade and

Development Act of 2000, for Calendar Year

1. The undersigned, (name of importer), is

an importer who paid duties in calendar year

llll on worsted wool fabric of the kind

described in HTSUS subheadings 5112.11.20

or 5112.19.90, imported in calendar year

1999;

2. The undersigned sold worsted wool

fabric of the kind described in item (1) above

to a manufacturer identified as (name of

manufacturer) or to a supplier(s) identified as

(name of supplier);

3. Attached is a list of relevant entry

summary numbers for worsted wool fabric of

the kind described in item (1) above that

substantiates the amount of duties paid in the

current calendar claim year on such fabric

that was sold by the undersigned to (name

of manufacturer) or to an identified

supplier(s) (name of supplier);

4. The undersigned has not listed any entry

summary in item (3) above that has had 99%

or more of the amount of duties paid on that

entry refunded pursuant to any refund claim

authorized by law;

5. The undersigned will list any entry

summary in item (3) above that is, or may

become, subject to an outstanding drawback

claim, protest, or any other refund claim

authorized by law; and

6. The undersigned attests that the

information set forth in this affidavit is true

and accurate to the best of the affiant’s

knowledge and belief.

(h) Wool duty refund claim processing

procedures. Upon receipt of a timely

and complete wool duty refund claim

filed pursuant to the terms of this

section, Customs will determine the

liquidation status of the entry

summaries used to substantiate the

claim. No duty refund will be issued to

a claimant until all the entry summaries

identified for purposes of substantiating

the claim have been liquidated.

(i) Denial of a wool duty refund claim.

Customs may deny a wool duty refund

claim if the claim was not timely filed,

if the claimant is not eligible pursuant

to the terms of this section, or if the

claimant has not complied with the

requirements of this section. Customs

will provide the claimant with written

notice of the denial of the claim,

including the reason for the denial.

(j) Multiple refund claims and

pending judicial review—(1) Order of

precedence for multiple section 505

duty refund claims. An eligible claimant

is entitled to payment in order of the

precedence established by the date and

time of submission of a timely and

complete claim for a request for refund

of duties pursuant to the terms of this

section.

(2) Order of precedence for section

505 duty refund claims and other

refund claims. If a claim for a section

505 duty refund has been received by

Customs, and a protest, request for

reliquidation, drawback claim, or any

other refund claim authorized by law,

that relates to any of the eligible wool

products identified in any of the entry

summaries used to substantiate the filed

section 505 claim, has also been filed

with Customs but remains undecided,

the claim that was received first by

Customs, and deemed timely and

complete, will be processed first.

(3) Allowance or denial of subsequent

claims. If an entry has been used to

provide the basis for a duty refund

claim pursuant to section 505, and the

entire amount of duties paid on that

entry was refunded to the claimant, a

claim for drawback, or any other refund

claim authorized by law, that is based

on that entry, will be denied by

Customs. If an entry has been used to

substantiate a claim for a section 505

duty refund, and an amount in duties

paid on that entry has not been

refunded, the remaining amount may be

eligible for subsequent section 505 duty

refund claims, drawback, or any other

refund claim authorized by law. An

entry that has already had 99% or more

of the duties paid on that entry refunded

by way of a drawback claim, protest, or

any other claim authorized by law, may

not be used to provide the basis for a

wool duty refund claim.

(4) Pending judicial review. If a

summons involving the tariff

classification or the dutiability of an

imported wool product has been filed in

the Court of International Trade,

Customs will deem any entry summary

at issue in that judicial proceeding

ineligible to substantiate a duty refund

claim.

(k) Penalties and liquidated damages.

A wool duty refund claimant’s failure to

comply with any of the procedural

requirements set forth in this document,

or failure to adhere to all applicable

laws and regulations, may subject the

claimant to penalties, liquidated

damages or other administrative

sanctions.

Raymond W. Kelly,

Commissioner of Customs.

Approved: October 19, 2000.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 00–27522 Filed 10–24–00; 8:45 am]

BILLING CODE 4820–02–P