[Federal Register Volume 63, Number 18 (Wednesday, January 28, 1998)]
[Rules and Regulations]
[Pages 4167-4168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1950]



[[Page 4167]]

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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.

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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.
* * * * *


Sec. 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''.


Sec. 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.
* * * * *


Sec. 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.


Sec. 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.

[[Page 4168]]

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 Sec. 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:


Sec. 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:


Sec. 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).


Sec. 114.3  [Amended]

    4. In Sec. 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.


Sec. 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:


Sec. 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:


Sec. 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.


Sec. 114.24  [Amended]

    8. Section 114.24 is amended by adding the phrase ``or TECRO/AIT'' 
immediately after the abbreviation ``A.T.A.''.


Sec. 114.25  [Amended]

    9. Section 114.25 is amended by adding the phrase ``or TECRO/AIT'' 
immediately after the abbreviation ``A.T.A.''.


Sec. 114.26  [Amended]

    10. In Sec. 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.


Sec. 114.31  [Amended]

    11. Section 114.31(b) is amended by adding the phrase ``or TECRO/
AIT'' immediately after the abbreviation ``A.T.A.''.


Sec. 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''.


Sec. 114.33  [Amended]

    13. Section 114.33 is amended by adding the words ``or Agreement'' 
immediately after the word ``Convention''.


Sec. 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