Federal Register / Vol. 63, No. 18 /Wednesday, January 28, 1998 /Rules and Regulations 4167

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 18, and 114

[T.D. 98—10]

RIN 1515–AC03

Bilateral Carnet Agreement Between

the American Institute in Taiwan and

the Taipei Economic and Cultural

Representative Office

AGENCY: Customs Service, Department

of the Treasury.

ACTION: Final rule.

SUMMARY: This document amends the

Customs Regulations which apply to

carnets to reflect a bilateral agreement

between the Taipei Economic and

Cultural Representative in the United

States (TECRO) and the American

Institute in Taiwan (AIT). This

agreement established a TECRO/AIT

Carnet for the temporary admission of

goods, commercial samples and

professional equipment.

EFFECTIVE DATE: February 27, 1998.

FOR FURTHER INFORMATION CONTACT:

Sharon Goodson or Dennis Sequeira,

International Organizations and

Agreements Division, U.S. Customs,

202–927–0971.

SUPPLEMENTARY INFORMATION:

Background

A carnet is an international customs

document, backed by an internationally

valid guarantee, which may be used for

the entry of articles under various

customs procedures such as temporary

importation and transportation in bond.

The carnet is used in place of the usual

national customs documentation and

guarantees the payment of duties

(including taxes and associated

penalties) which may become due if the

carnet requirements are not satisfied.

The existence of a single document

rather than numerous national

documents facilitates international

commerce.

The carnet guarantee is based on

chains of national guaranteeing

associations established in the countries

accepting the carnets. The guaranteeing

association is jointly and severally liable

with the carnet holder for payment of

the sums due in the event of

noncompliance with the conditions or

the procedures for which the carnet is

used.

Benefits of the TECRO/AIT Carnet

In recent years, trade between the

United States and Taiwan has increased.

It is expected that this trend will

continue, and that such trade can be

facilitated through the use of carnets.

However, Taiwan is currently ineligible

to accede to the A.T.A. (Admission

Temporaire—Temporary Admission)

Carnet Convention, under which carnets

facilitate trade among more than fifty

contracting parties. Thus, Taiwan has

sought access to the carnet facility

through the recently concluded bilateral

agreement between the Taipei Economic

and Cultural Representative in the

United States (TECRO) and the

American Institute in Taiwan (AIT).

This agreement established a TECRO/

AIT Carnet for the temporary admission

of goods, commercial samples and

professional equipment. This agreement

was negotiated pursuant to the authority

contained in 22 U.S.C. 3305.

On November 4, 1996, Customs

published a Notice of Proposed

Rulemaking in the Federal Register (61

FR 56645) which proposed amending

the Customs Regulations to reflect the

TECRO/AIT Carnet and solicited

comments on the proposal. No

comments were received in response to

the publication. After further

consideration, Customs has determined

to proceed to amend the regulations as

proposed.

A Notice informing the public of the

decision of the Commissioner of

Customs regarding the selection of an

issuing and guaranteeing association for

the TECRO/AIT carnet will be made in

a separate publication in the Federal

Register.

Regulatory Flexibility Act

Insofar as the amendment is intended

to facilitate international trade and

remove some existing impediments to

the conduct of business, pursuant to the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.), it is certified

that the amendment will not have a

significant economic impact on a

substantial number of small entities.

Accordingly, it is not subject to the

regulatory analysis or other

requirements of 5 U.S.C. 603 and 604.

Executive Order 12866

The amendment does not meet the

criteria for a ‘‘significant regulatory

action’’ under E.O. 12866.

Drafting Information

The principal author of this document

was Peter T. Lynch, Regulations Branch,

Office of Regulations and Rulings, U.S.

Customs Service. However, personnel

from other offices participated in its

development.

List of Subjects

19 CFR Part 10

Customs duties and inspection,

Exports, Reporting and recordkeeping

requirements.

19 CFR Part 18

Common carriers, Customs duties and

inspection, Exports, Surety bonds.

19 CFR Part 114

Customs duties and inspection,

Exports, Trade agreements.

Amendments to the Regulations

Parts 10, 18 and 114 of the Customs

Regulations (19 CFR parts 10, 18 and

114) are amended as set forth below:

PART 10—ARTICLES CONDITIONALLY

FREE, SUBJECT TO A REDUCED

RATE, ETC.

1. The general authority citation for

part 10 continues to read as follows:

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

Note 20, Harmonized Tariff Schedule of the

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

1623, 1624, 3314.

* * * * *

§ 10.31 [Amended]

2. Section 10.31 is amended by

adding in paragraphs (a)(1) and (a)(2)

the phrase ‘‘or a TECRO/AIT carnet’’

immediately after the words ‘‘A.T.A.

carnet’’.

§ 10.39 [Amended]

3. Section 10.39(d)(2) is amended by

adding the words ‘‘or Agreement’’

immediately after the phrase ‘‘in the

Convention’’.

PART 18—TRANSPORTATION IN

BOND AND MERCHANDISE IN

TRANSIT

1. The general authority citation for

part 18 is revised to read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202

(General Note 20, Harmonized Tariff

Schedule of the United States), 1551, 1552,

1553, 1624.

* * * * *

§ 18.1 [Amended]

2. Section 18.1(a)(3) is amended by

adding the phrase ‘‘or TECRO/AIT’’

immediately after the abbreviation

‘‘A.T.A.’’ each time it appears.

§ 18.8 [Amended]

3. Section 18.8(e)(3) is amended by

adding the phrase ‘‘or TECRO/AIT’’

immediately after the abbreviation

‘‘A.T.A.’’ each time it appears.
4168 Federal Register / Vol. 63, No. 18 /Wednesday, January 28, 1998 /Rules and Regulations

PART 114—CARNETS

1. The authority citation for part 114

is revised to read as follows:

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

Note 20, Harmonized Tariff Schedule of the

United States), 1623, 1624.

2. In § 114.1, paragraphs (b) and (c)

are amended by adding the phrase ‘‘or

bilateral Agreement’’ immediately after

the words ‘‘Customs Convention’’ each

time they appear, and a new paragraph

(g) is added to read as follows:

§ 114.1 Definitions.

* * * * *

(g) TECRO/AIT Carnet. ‘‘TECRO/AIT

carnet’’ means the document issued

pursuant to the Bilateral Agreement

between the Taipei Economic and

Cultural Representative Office (TECRO)

and the American Institute in Taiwan

(AIT) to cover the temporary admission

of goods.

3. Section 114.2 is amended by

revising the section heading and the

introductory text and by adding a new

paragraph (d) to read as follows:

§ 114.2 Customs Conventions and

Agreements.

The regulations in this part relate to

carnets provided for in the following

Customs Conventions and Agreements:

* * * * *

(d) Agreement Between the Taipei

Economic and Cultural Representative

Office in the United States and the

American Institute in Taiwan on

TECRO/AIT Carnet for the Temporary

Admission of Goods (hereinafter

referred to as the Agreement).

§ 114.3 [Amended]

4. In § 114.3, the introductory text in

paragraph (a) and paragraph (a)(2) are

amended by adding the words ‘‘or

Agreement’’ immediately after the word

‘‘Convention’’ each time it appears.

§ 114.11 [Amended]

5. Section 114.11 is amended by

adding the words ‘‘or Agreement’’

immediately after the word

‘‘Convention’’ each time it appears.

6. Section 114.22 is amended by

redesignating paragraph (d) as

paragraph (e) and adding a new

paragraph (d) to read as follows:

§ 114.22 Coverage of carnets.

* * * * *

(d) TECRO/AIT carnet.—(1) Use. The

TECRO/AIT carnet is acceptable for the

following two categories of goods to be

temporarily imported, unless

importation is prohibited under the

laws and regulations of the United

States:

(i) Professional equipment; and

(ii) Commercial samples and

advertising material imported for the

purpose of being shown or

demonstrated with a view to soliciting

orders.

(2) Issue and use. (i) Issuing

associations shall indicate on the cover

of the TECRO/AIT carnet the customs

territory in which it is valid and the

name and address of the guaranteeing

association.

(ii) The period fixed for re-exportation

of goods imported under cover of a

TECRO/AIT carnet shall not in any case

exceed the period of validity of that

carnet.

* * * * *

7. Section 114.23 is amended by

adding a new paragraph (c) to read as

follows:

§ 114.23 Maximum period.

* * * * *

(c) TECRO/AIT carnet. A TECRO/AIT

carnet shall not be issued with a period

of validity exceeding one year from the

date of issue. This period of validity

cannot be extended and must be shown

on the front cover of the carnet.

§ 114.24 [Amended]

8. Section 114.24 is amended by

adding the phrase ‘‘or TECRO/AIT’’

immediately after the abbreviation

‘‘A.T.A.’’.

§ 114.25 [Amended]

9. Section 114.25 is amended by

adding the phrase ‘‘or TECRO/AIT’’

immediately after the abbreviation

‘‘A.T.A.’’.

§ 114.26 [Amended]

10. In § 114.26, paragraphs (a) and (b)

are amended by adding the phrase ‘‘or

TECRO/AIT’’ immediately after the

abbreviation ‘‘A.T.A.’’ each time it

appears.

§ 114.31 [Amended]

11. Section 114.31(b) is amended by

adding the phrase ‘‘or TECRO/AIT’’

immediately after the abbreviation

‘‘A.T.A.’’.

§ 114.32 [Amended]

12. Section 114.32 is amended by

adding the phrase ‘‘or TECRO/AIT’’

immediately after the abbreviation

‘‘A.T.A.’’ the first time it appears and by

adding the phrase ‘‘or TECRO/AIT

Agreement’’ immediately after the

phrase ‘‘A.T.A. Convention’’.

§ 114.33 [Amended]

13. Section 114.33 is amended by

adding the words ‘‘or Agreement’’

immediately after the word

‘‘Convention’’.

§ 114.34 [Amended]

14. Section 114.34 is amended by

adding, in the heading and text of

paragraph (b), the phrase ‘‘or TECRO/

AIT’’ immediately after the abbreviation

‘‘A.T.A.’’ each time it appears.

George J. Weise,

Commissioner of Customs.

Approved: August 22, 1997.

Dennis M. O’Connell,

Acting Deputy Assistant Secretary of the

Treasury.

[FR Doc. 98–1950 Filed 1–27–98; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8762]

RIN 1545–AB43

Installment Obligations Received From

Liquidating Corporations

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations relating to the use of the

installment method to report the gain

recognized by a shareholder who

receives, in exchange for the

shareholder’s stock, certain installment

obligations that are distributed upon the

complete liquidation of a corporation.

Changes to the applicable tax law were

made by the Installment Sales Revision

Act of 1980 and the Tax Reform Act of

1986. These regulations affect taxpayers

who receive installment obligations in

exchange for their stock upon the

complete liquidation of a corporation.

DATES: This regulation is effective

January 28, 1998.

For dates of applicability, see § 1.453–

11(e) of these regulations.

FOR FURTHER INFORMATION CONTACT:

George F. Wright, (202) 662–4950 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

Section 453(h), relating to the tax

treatment of installment obligations

received by a shareholder from a

liquidating corporation, was added to

the Internal Revenue Code of 1954 by

the Installment Sales Revision Act of

1980, Pub. L. 96–471, 94 Stat. 2247,

2250. Proposed regulations under

section 453(h) were published in the

Federal Register for January 13, 1984

(49 FR 1742). Subsequently, section