Federal Register / Vol. 74, No. 48 / Friday, March 13, 2009 / Proposed Rules 10849 

presented in such format and in such 

type size and manner as to be simple 

and easy to understand. 

§ 320.6 Exception for certain depository 

institutions. 

The requirements of this part do not 

apply to any depository institution 

lacking federal deposit insurance and 

located within the United States that 

does not receive initial deposits of less 

than an amount equal to the standard 

maximum deposit insurance amount 

from individuals who are citizens or 

residents of the United States, other 

than money received in connection with 

any draft or similar instrument issued to 

transmit money. 

§ 320.7 Enforcement. 

Compliance with the requirements of 

this part shall be enforced under the 

Federal Trade Commission Act, 15 

U.S.C. 41 et seq. 

By direction of the Commission. 

Donald S. Clark, 

Secretary, 

[FR Doc. E9–5305 Filed 3–12–09: 8:45 am] 

BILLING CODE 6750–01–S 

DEPARTMENT OF HOMELAND 

SECURITY 

Bureau of Customs and Border 

Protection 

DEPARTMENT OF THE TREASURY 

19 CFR Part 10 

[USCBP–2008–0105] 

RIN 1505–AC07 

Cost or Value of Foreign Repairs, 

Alterations, or Processing 

AGENCIES: Customs and Border 

Protection, Department of Homeland 

Security; Department of the Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document proposes to 

amend the U.S. Customs and Border 

Protection (CBP) Regulations to exclude 

from the dutiable value of repairs, 

alterations, or processing performed 

abroad on articles exported from the 

United States and returned under 

subheading 9802.00.40, 9802.00.50, or 

9802.00.60, Harmonized Tariff Schedule 

of the United States (HTSUS), the value 

of U.S.-origin parts used in the foreign 

repairs, alterations, or processing. The 

proposed changes would provide an 

incentive to use U.S.-origin parts in the 

foreign repairs, alterations, or 

processing of articles entered under the 

above-referenced HTSUS provisions. 

DATES: Comments must be received on 

or before May 12, 2009. 

ADDRESSES: You may submit comments, 

identified by docket number, by one of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments 

via docket number USCBP–2008–0105. 

• Mail: Trade and Commercial 

Regulations Branch, Regulations and 

Rulings, Office of International Trade, 

U.S. Customs and Border Protection, 

799 9th Street, NW. (Mint Annex), 

Washington, DC 20229. 

Instructions: All submissions received 

must include the agency name and 

docket number for this rulemaking. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal information provided. For 

detailed instructions on submitting 

comments and additional information 

on the rulemaking process, see the 

‘‘Public Participation’’ heading of the 

SUPPLEMENTARY INFORMATION section of 

this document. 

Docket: For access to the docket to 

read background documents or 

comments received, go to http:// 

www.regulations.gov. Submitted 

comments may be inspected during 

regular business days between the hours 

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

Commercial Regulations Branch, 

Regulations and Rulings, Office of 

International Trade, U.S. Customs and 

Border Protection, 799 9th Street, NW., 

5th Floor, Washington, DC. 

Arrangements to inspect submitted 

comments should be made in advance 

by calling Mr. Joseph Clark at (202) 325– 

0118. 

FOR FURTHER INFORMATION CONTACT: 

Monika Brenner, Regulations and 

Rulings, Office of International Trade, 

202–325–0038. 

SUPPLEMENTARY INFORMATION: 

Public Participation 

Interested persons are invited to 

participate in this rulemaking by 

submitting written data, views, or 

arguments on all aspects of the 

proposed rule. CBP also invites 

comments that relate to the economic, 

environmental, or federalism effects that 

might result from this proposed rule. 

Comments that will provide the most 

assistance to CBP will reference a 

specific portion of the proposed rule, 

explain the reason for any 

recommended change, and include data, 

information, or authority that support 

such recommended change. See 

ADDRESSES above for information on 

how to submit comments. 

Background 

Subheadings 9802.00.40 and 

9802.00.50, HTSUS, provide a partial 

duty exemption for articles returned to 

the United States after having been 

exported to be advanced in value or 

improved in condition by repairs or 

alterations. Subheading 9802.00.40 

encompasses articles repaired or altered 

abroad pursuant to a warranty, while 

subheading 9802.00.50 encompasses 

articles repaired or altered abroad other 

than pursuant to a warranty. Articles 

entitled to classification under these 

tariff provisions are assessed duty based 

upon the value of the repairs or 

alterations. 

Subheading 9802.00.60, HTSUS, 

provides a partial duty exemption for 

articles of metal manufactured in the 

United States that are exported for 

further processing and then returned to 

the United States for further processing. 

Articles entitled to classification under 

this tariff provision are assessed duty 

based upon the value of the processing 

performed outside the United States. 

U.S. Note 3(a), subchapter II, Chapter 

98, HTSUS, states, in pertinent part, that 

for purposes of subheadings 9802.00.40, 

9802.00.50, and 9802.00.60, HTSUS, the 

‘‘value of repairs, alterations, processing 

or other change in condition outside the 

United States’’ is the cost to the 

importer of such change, or if no charge 

is made, the value of such change. 

Section 10.8 of the CBP regulations (19 

CFR 10.8), which implements 

subheadings 9802.00.40 and 9802.00.50, 

provides in paragraph (d) that the ‘‘cost 

or value of repairs or alterations’’ is 

limited to the cost or value of the repairs 

or alterations actually performed 

abroad, which will include all domestic 

and foreign articles furnished for the 

repairs or alterations, but will not 

include any of the expenses incurred in 

this country whether by way of 

engineering costs, preparation of plans 

or specifications, furnishing of tools or 

equipment for doing the repairs or 

alterations abroad, or otherwise. 

Similarly, § 10.9 of the CBP 

regulations (19 CFR 10.9(d)), which 

implements subheading 9802.00.60, 

provides in paragraph (d) that the ‘‘cost 

or value of processing’’ is limited to the 

cost or value of the processing actually 

performed abroad, which will include 

all domestic and foreign articles used in 

the processing, but will not include the 

exported U.S. metal article or any of the 

expenses incurred in this country 

whether by way of engineering costs, 

preparation of plans or specifications, 

furnishing of tools or equipment for 

doing the processing abroad, or 

otherwise. 


yshivers on PROD1PC66 with PROPOSALS
10850 Federal Register / Vol. 74, No. 48 / Friday, March 13, 2009 / Proposed Rules 

The words ‘‘which will include all 

domestic and foreign articles furnished 

for the repairs or alterations’’ in 

§ 10.8(d) and the words ‘‘which will 

include all domestic and foreign articles 

used in the processing’’ in § 10.9(d) 

were added to those regulatory 

provisions by T.D. 72–119, which was 

published in the Federal Register on 

May 2, 1972 (37 FR 8867). Neither T.D. 

72–119 nor the notice of proposed 

rulemaking (published in the Federal 

Register on May 4, 1971 (36 FR 8312)) 

which preceded the T.D. included any 

explanation or discussion regarding the 

above-referenced language added to 

§§ 10.8(d) and 10.9(d). However, the 

addition of this language has had the 

effect of requiring the value of U.S.- and 

foreign-origin parts used in the foreign 

repairs, alterations, or processing to be 

included in the dutiable value of articles 

entered under subheadings 9802.00.40, 

9802.00.50, and 9802.00.60, HTSUS. 

Explanation of Amendments 

As indicated in the above background 

discussion, there is nothing in the 

underlying statutory provisions 

(subheadings 9802.00.40, 9802.00.50, 

and 9802.00.60 and U.S. Note 3(a), 

subchapter II, Chapter 98, HTSUS) that 

mandates the inclusion of the value of 

U.S.-origin parts in the dutiable value of 

articles entered under these tariff 

provisions. The policy of requiring the 

value of U.S.-origin parts to be included 

in dutiable value under these 

circumstances, as reflected in the 

implementing regulations, clearly 

provides no incentive to use U.S., as 

opposed to foreign, parts in the foreign 

repairs, alterations, or processing. In 

order to encourage the use of U.S.-origin 

parts in the foreign repairs, alterations, 

or processing of articles entered under 

subheading 9802.00.40, 9802.00.50, and 

9802.00.60, CBP is proposing to amend 

§§ 10.8(d) and 10.9(d) by removing the 

words ‘‘domestic and’’ in the second 

sentence of each of these regulatory 

provisions. 

This document also proposes to edit 

§§ 10.8(d) and 10.9(d) by replacing the 

word ‘‘shall’’ each place it appears with 

the word ‘‘will’’. 

The Regulatory Flexibility Act and 

Executive Order 12866 

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 economic impact on a 

substantial number of small entities. 

The proposed rule would have the effect 

of excluding the value of U.S.-origin 

parts from the dutiable value of articles 

entered under subheadings 9802.00.40, 

9802.00.50, and 9802.00.60, HTSUS, 

thereby providing an incentive to use 

U.S.-origin parts in the foreign repairs, 

alterations, or processing of articles 

entered under these HTSUS provisions. 

As a result, it is expected that the 

proposed amendments will have the 

potential of providing a slight economic 

benefit for U.S. commercial interests. 

Accordingly, the proposed amendments 

are not subject to the regulatory analysis 

or other requirements of 5 U.S.C. 603 

and 604. This document does not meet 

the criteria for a ‘‘significant regulatory 

action’’ as specified in E.O. 12866. 

Signing Authority 

This document is being issued by CBP 

in accordance with § 0.1(a)(1) of the CBP 

Regulations (19 CFR 0.1(a)(1)), 

pertaining to the authority of the 

Secretary of the Treasury (or his/her 

delegate) to approve regulations related 

to certain CBP revenue functions. 

List of Subjects in 19 CFR Part 10 

Customs duties and inspection, Entry, 

Imports, Preference Programs, Reporting 

and recordkeeping requirements, 

Shipments. 

Proposed Amendments to the 

Regulations 

It is proposed to amend part 10 of the 

CBP 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 continues to read as follows: 

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

Note 3(i), Harmonized Tariff Schedule of the 

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

1623, 1624. 3314; 

* * * * * 

§ 10.8 [Amended] 

2. In § 10.8, paragraph (d) is amended 

by removing the word ‘‘shall’’ each 

place it appears and adding, in its place, 

the word ‘‘will’’, and by removing the 

words ‘‘domestic and’’ in the second 

sentence. 

§ 10.9 [Amended] 

3. In § 10.9, paragraph (d) is amended 

by removing the word ‘‘shall’’ each 

place it appears and adding, in its place, 

the word ‘‘will’’, and by removing the 

words ‘‘domestic and’’ in the second 

sentence. 

Jayson P. Ahern, 

Acting Commissioner, Customs and Border 

Protection. 

Approved: March 10, 2009. 

Timothy E. Skud, 

Deputy Assistant Secretary of the Treasury. 

[FR Doc. E9–5481 Filed 3–12–09; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2009–0073] 

RIN 1625–AA09 

Drawbridge Operation Regulation; 

Perquimans River, Hertford, NC 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

change the drawbridge operation 

regulations of the US17 Bridge, at mile 

12.0, across Perquimans River at 

Hertford, NC. This proposal would 

allow the drawbridge to operate on an 

advance notice basis during specific 

times of the year. The proposed change 

would result in more efficient use of the 

bridge during months of infrequent 

transit. 

DATES: Comments and related material 

must reach the Coast Guard on or before 

April 27, 2009. 

ADDRESSES: You may submit comments 

identified by Coast Guard docket 

number USCG–2009–0073 to the Docket 

Management Facility at the U.S. 

Department of Transportation. To avoid 

duplication, please use only one of the 

following methods: 

(1) Online: http:// 

www.regulations.gov. 

(2) Mail: Docket Management Facility 

(M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590– 

0001. 

(3) Hand delivery: Room W12–140 on 

the Ground Floor of the West Building, 

1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The telephone 

number is 202–366–9329. 

(4) Fax: 202–493–2251. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this proposed 

rule, call Sandra S. Elliott, Bridge 


yshivers on PROD1PC66 with PROPOSALS