[Federal Register Volume 72, Number 43 (Tuesday, March 6, 2007)]
[Rules and Regulations]
[Pages 10004-10006]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-997]



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Part II





Department of Homeland Security





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 Bureau of Customs and Border Protection



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Department of the Treasury





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Department of Commerce





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International Trade Administration



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19 CFR Parts 12, 163, and 361



 Entry of Certain Cement Products From Mexico Requiring a Commerce 
Department Import License and Mexican Cement Import Licensing System; 
Final Rules

Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / Rules 
and Regulations

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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 12 and 163

[CBP Dec. 07-05 and USCBP-2006-0020]
RIN 1505-AB68


Entry of Certain Cement Products From Mexico Requiring a Commerce 
Department Import License

AGENCIES: Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends title 19 of the Code of Federal 
Regulations (19 CFR) to set forth special requirements for the entry of 
certain cement products from Mexico requiring a United States 
Department of Commerce import license. The cement products in question 
are those listed in the Agreement on Trade in Cement, entered into 
between the Office of the United States Trade Representative, the 
United States Department of Commerce, and Mexico's Secretaria de 
Economia, on March 6, 2006. The changes implemented by this document 
require an importer to submit to Customs and Border Protection (CBP) an 
import license number on the entry summary (CBP Form 7501) or on the 
application for foreign trade zone (FTZ) admission and/or status 
designation (CBP Form 214), for any cement product for which the United 
States Department of Commerce requires an import license under its 
cement licensing and import monitoring program. Additionally, an 
importer must submit a hard copy of the original valid Mexican export 
license with the entry documentation or provide such document to the 
FTZ operator, unless directed otherwise by CBP.

EFFECTIVE DATE: April 5, 2007.

FOR FURTHER INFORMATION CONTACT: Alice Buchanan, Office of 
International Trade, Tel: (202) 344-2697.

SUPPLEMENTARY INFORMATION:

Background

    On March 6, 2006, the Office of the United States Trade 
Representative (USTR), the United States Department of Commerce 
(Commerce), and the Ministry of Economy of the United Mexican States 
(Secretaria de Economia) signed a bilateral Trade in Cement Agreement 
(Agreement) concerning trade in cement between the United States and 
Mexico. The Agreement applies only to cement from Mexico as defined in 
Section I.L. of the Agreement. A copy of the Agreement is available on 
the Commerce Web site: http://www.ia.ita.doc.gov/download/mexico-cement/cement-final-agreement.pdf. The Agreement requires the creation 
of an Export Licensing Program by Mexico and an Import Licensing 
Program by Commerce to enforce certain quantitative restrictions 
contained in the Agreement.
    On May 31, 2006, the International Trade Administration of the 
Department of Commerce published a document in the Federal Register (71 
FR 30836) proposing a rule, set forth at Sec. Sec.  360.201 through 
360.205 of the Code of Federal Regulations (19 CFR 360.201 through 
306.205) (changed to Sec. Sec.  361.101 through 361.105 in ITA's final 
rule), that would establish a cement licensing and import monitoring 
program as directed under the terms of the Agreement. Although Commerce 
was vested with primary responsibility for the Mexican Cement import 
licensing and monitoring procedures, the Secretary of the Treasury, 
through the Bureau of Customs and Border Protection (CBP), is primarily 
responsible for the promulgation and administration of regulations 
regarding the importation and entry of merchandise into the United 
States. Accordingly, in conjunction with the Department of Commerce, on 
June 1, 2006, CBP published in the Federal Register (71 FR 31125) a 
proposal to add a new Sec.  12.155 to title 19 of the CFR (19 CFR 
12.155) which requires the inclusion of a cement import license number 
on the entry summary (CBP Form 7501) or the application for admission 
to a FTZ (CBP Form 214), and the submission of a valid Mexican export 
license with the entry summary documentation, in any case in which a 
cement import license is required to be obtained under the Commerce 
regulations. It was proposed that the entry (unless otherwise directed 
by CBP) must be a paper filing, and the license number must be 
included: on the entry summary (CBP Form 7501), at the time of filing, 
in the case of merchandise entered or withdrawn from warehouse for 
consumption in the customs territory of the United States; or, on CBP 
Form 214, at the time of filing under part 146 of this chapter, in the 
case of merchandise admitted into a foreign trade zone.
    Comments were solicited on the proposal.

Discussion of Comments

    Two comments were received in response to the solicitation of 
public comment in 71 FR 31125. A description of the comments received, 
together with CBP's analyses, is set forth below.

Comment

    Two commenters inquired as to where on the CBP Form 7501 the import 
license number should be identified.

CBP Response

    The import license number must be reported in column 33 of the 
newly reformatted CBP Form 7501 (or column 34 of the previous version 
of the CBP Form 7501, which remains valid). If the entry summary 
requires more than one cement import license, each license number must 
be reported within the column on the line item covering the subject 
cement. On the CBP Form 214, the import license number must be reported 
in box 16. If the CBP Form 214 is submitted in an electronic format 
(CBP Form e-214), the import license number must be reported as per 
instructions provided to the trade and made available for public 
viewing at http://www.cbp.gov/.

Comment

    One commenter inquired as to how long an importer must maintain 
copies of the import license, and in what format the records must be 
maintained (i.e., hard copy or electronic), in order to comply with CBP 
regulations.

CBP Response

    Copies of Mexican Cement Import Licenses must be retained pursuant 
to the provisions set forth in part 163 of title 19 of the CFR. Section 
163.4 (19 CFR 163.4) prescribes a record retention period of 5 years 
from the date of entry. Section 163.5 (19 CFR 163.5) prescribes methods 
for the storage of records. Specifically, Sec.  163.5(a) states that 
persons required to maintain records (as per Sec.  163.2) must retain 
the original, whether paper or electronic, for the prescribed retention 
period. The term ``original,'' when used in the context of the 
maintenance of records, is defined in Sec.  163.1(h) (19 CFR 163.1(h)) 
as pertaining to records that are ``in the condition in which they were 
made or received.'' The import license numbers at issue are to be 
generated via an automated Mexican Cement Import Licensing System (for 
a complete description, see 71 FR 30837, dated May 31, 2006), which 
provides a single opportunity to print the electronically generated 
import license number. For security reasons, the system does not allow 
users to retrieve previously issued

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licenses from the license system. Accordingly, the original hard copy 
print-out of the Mexican Cement Import License must be retained for the 
5 year retention period.

Department of Commerce Final Regulations

    In another document published in today's edition of the Federal 
Register, the Department of Commerce has finalized its proposal of May 
31, 2006.

Conclusion

    In conjunction with the final regulations adopted by the Department 
of Commerce, CBP, after analysis of the comments received in response 
to CBP's proposed rule and upon further consideration, has determined 
to adopt as a final rule the amendments proposed in the Notice of 
Proposed Rulemaking published in the Federal Register (71 FR 31125) on 
June 1, 2006 with modifications as set forth below.
    In the final rule, CBP will permit importers to report the import 
license number on either a paper or electronic version of the 
application for admission to a FTZ (CBP Form 214/e-214). This change 
from the proposal is being made to reflect that certain CBP ports are 
currently accepting electronic versions of the application for FTZ 
admission and/or status designation (CBP Form e-214) in lieu of paper 
copies. Paper copies of the CBP Form 214 will still be accepted; 
however, CBP is urging all members of the trade community to file 
electronic versions of the CBP Form e-214 where possible. Existing 
operational ports are listed at the CBP Web site located at http://www.cbp.gov/. The site will be updated to reflect new CBP Form e-214 
operational ports. Any questions regarding the CBP Form e-214 admission 
should be directed to the local CBP Port Director.
    Section 12.55 is restructured in this final rule to present a more 
logical organization. The recordkeeping provision in paragraph (c) is 
retitled as ``Import license information'' in the final rule. Paragraph 
(d), entitled, ``Export license information,'' now includes a reference 
to recordkeeping requirements relevant to export licenses.
    The language of Sec.  12.155(d) in the proposed rule is changed in 
the final rule to clarify that importers of Mexican cement must submit 
an original, physical copy of a valid Mexican export license to CBP 
with the entry summary documentation, unless otherwise directed by CBP. 
This language is added in the event CBP is able to process these types 
of entries electronically in the future. This provision is also changed 
in the final rule to clarify that the original physical copy of a valid 
Mexican export license must be provided to the FTZ operator with the 
CBP Form 214 in the case of a FTZ admission (unless otherwise directed 
by CBP) and, in such case, upon withdrawal from the FTZ no paper export 
license will be required to be submitted to CBP with the merchandise's 
subsequent entry summary documentation. Similarly, the language in 
proposed Sec.  12.155(b)(1) is changed in the final rule to clarify 
that no import license will be required on the CBP Form 7501 for 
Mexican cement that was previously admitted to a FTZ and for which an 
import license number was already provided to CBP on the CBP Form 214.
    The ``List of Records Required for the Entry of Merchandise'' set 
forth in the Appendix to part 163 of title 19 of the CFR (19 CFR part 
163) is also amended by this document to reflect the entry document 
requirements mandated by the Agreement. This document amends section IV 
of the Appendix by adding a new Sec.  12.155 that lists the Mexican 
Cement export license and import license as new entry records.

The Regulatory Flexibility Act

    Pursuant to 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. 
The amendment, which involves the addition of one data element, at the 
time of entry, to either one of two existing required CBP forms and a 
submission of a Mexican export license, as required by the Agreement 
and the Department of Commerce regulations, will have a negligible 
impact on importer operations. Accordingly, the amendment is not 
subject to the regulatory analysis or other requirements of 5 U.S.C. 
603 and 604.

Executive Order 12866

    This amendment does not meet the criteria for a ``significant 
regulatory action'' as specified in Executive Order 12866.

Signing Authority

    This document is being issued in accordance with 19 CFR 0.1(a)(1).

List of Subjects

19 CFR Part 12

    Bonds, Customs duties and inspection, Entry of merchandise, 
Imports, prohibited merchandise, Reporting and recordkeeping 
requirements, Restricted merchandise.

19 CFR Part 163

    Customs duties and inspection, Reporting and recordkeeping 
requirements.

Amendment to CBP Regulations

0
For the reasons stated above, parts 12 and 163 of title 19 of the Code 
of Federal Regulations (19 CFR part 12) are amended as follows:

PART 12--SPECIAL CLASSES OF MERCHANDISE

0
1. The authority citation for part 12 continues to read in part as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), 
Harmonized Tariff Schedule of the United States (HTSUS)), 1624;
* * * * *

0
2. A new center heading and new Sec.  12.155 are added to read as 
follows:

Mexican Cement Products


Sec.  12.155  Entry or admission of Mexican cement products.

    (a) In general. On March 6, 2006, the United States Trade 
Representative, United States Department of Commerce and Mexico's 
Secretaria de Economia entered into an ``Agreement on Trade in Cement'' 
(Agreement). Pursuant to the Agreement, the United States Department of 
Commerce will administer an import licensing system that covers imports 
of Mexican cement as defined in section I.L. of the Agreement. The 
Secretary of the Treasury, through the Bureau of Customs and Border 
Protection (CBP), is responsible for the promulgation and 
administration of regulations regarding the entry of the subject 
merchandise into the United States. The Agreement will terminate on 
March 31, 2009, unless it has been terminated prior to that date.
    (b) Reporting the import license number. For every entry of 
merchandise for which a Mexican cement import license is required to be 
obtained under regulations promulgated by the U.S. Department of 
Commerce, set forth at 19 CFR 361.101 through 361.205, the entry 
(unless otherwise directed by CBP) must be a paper filing and the 
license number must be included:
    (1) On the entry summary, at the time of filing, in the case of 
merchandise entered or withdrawn from warehouse for consumption in the 
customs territory of the United States, except for Mexican cement that 
was previously admitted to a FTZ and for which an import license number 
was already provided to CBP on the CBP Form 214. If the entry summary 
requires more than one cement import

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license, each license number must be reported within the column on the 
line item covering the subject cement; or
    (2) On CBP Form 214 or on an electronic version of CBP Form 214 
(CBP Form e-214), as required by CBP, at the time of filing under part 
146 of this chapter, in the case of an application for foreign trade 
zone (FTZ) admission and/or status designation.
    (c) Import license information. There is no requirement to present 
physical copies of the import license to CBP at the time of filing 
either the CBP Form 7501 or CBP Form 214; however, importers must 
maintain copies in accordance with the applicable recordkeeping 
provisions set forth in the chapter.
    (d) Export license information. Under regulations promulgated by 
the U.S. Department of Commerce, set forth at 19 CFR 361.101(d), 
importers of Mexican cement must submit an original, physical copy of a 
valid Mexican export license to CBP with the entry summary 
documentation (unless otherwise directed by CBP). In the case of an 
application for FTZ admission and/or status designation, the original 
physical copy of a valid Mexican export license must be provided to the 
FTZ operator with the CBP Form 214 (unless otherwise directed by CBP) 
and, in such case, upon withdrawal from the FTZ no paper export license 
will be required to be submitted to CBP with the merchandise's 
subsequent entry summary documentation. For multiple shipments at 
multiple ports, or multiple entries at one port, the original physical 
copy of the Mexican export license must be submitted to CBP (unless 
otherwise directed by CBP) with the first entry summary or to the FTZ 
operator with the CBP Form 214 or CBP Form e-214, as required by CBP, 
and a copy of the export license must be presented with each subsequent 
entry summary or CBP Form 214/e-214. Importers must also retain copies 
of the export license issued by the Mexican Government pursuant to the 
recordkeeping requirements set forth in part 163 of this title.
    (e) Duration of requirements. The provisions set forth in this 
section are applicable for as long as the Agreement remains in effect.

PART 163--RECORDKEEPING

0
3. The authority citation for part 163 continues to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1484, 1508, 1509, 1510, 
1624.


0
4. The Appendix to part 163 is amended by adding a new listing, in 
numerical order, for Sec.  12.155 under section IV to read as follows:

Appendix to Part 163--Interim (a)(1)(A) List

* * * * *

IV. * * *


Sec.  12.155  Export license and import license for Mexican Cement.

* * * * *

Deborah J. Spero,
Acting Commissioner, Bureau of Customs and Border Protection.
    Approved: February 28, 2007.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 07-997 Filed 3-5-07; 8:45 am]
BILLING CODE 9111-14-P