[Federal Register Volume 72, Number 43 (Tuesday, March 6, 2007)]
[Rules and Regulations]
[Pages 10006-10011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-996]


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DEPARTMENT OF COMMERCE

International Trade Administration

19 CFR Part 361

[Docket Number: 060316072-5251-02]
RIN 0625-AA70


Mexican Cement Import Licensing System

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Final rule.

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SUMMARY: Import Administration (IA) issues this final rule to add new 
regulations implementing the Mexican Cement Import Licensing System in 
accordance with the Agreement between the Office of the United States 
Trade Representative and the Department of Commerce of the United 
States of America and the Ministry of Economy of the United Mexican 
States (Secretar[iacute]a de Econom[iacute]a) on Trade in Cement 
(Agreement), signed March 6, 2006. This final rule requires all 
importers of cement from Mexico covered by the scope of the Agreement 
to obtain an import license from the Department of Commerce (Commerce) 
prior to completing their U.S. Customs and Border Protection (CBP) 
entry summary documentation. To obtain the import license, the 
importer, or the importer's broker or agent, must complete a form 
supplying certain information to Commerce about the Mexican Cement 
importation. The import license number will be generated immediately 
upon submitting the information and will be needed to complete the CBP 
entry documentation. IA will use the information recorded on the import 
license form as the basis for monitoring compliance with the Agreement.
    In addition, IA informs the public of the approval by the Office of 
Management and Budget (OMB) of the collection-of-information 
requirements contained in this final rule and publishes the OMB control 
numbers for those collections.

DATES: This final rule is effective April 5, 2007. Filers will be able 
to obtain their user identification numbers on or after March 16, 2007 
and apply for import licenses on or after April 5, 2007.

FOR FURTHER INFORMATION CONTACT: Sally C. Gannon (202) 482-0162; Judith 
Wey Rudman (202) 482-0192; or Jonathan Herzog (202) 482-4271. 
Additional information is available on Commerce's import licensing Web 
site http://ia.ita.doc.gov/cement-agreement/index.html.

SUPPLEMENTARY INFORMATION: IA issues this final rule to add new 
regulations implementing the Mexican Cement Import Licensing System 
(MCILS) in accordance with the Agreement, signed March 6, 2006. This 
final rule requires all importers of cement from Mexico covered by the 
scope of the Agreement to obtain an import license from Commerce prior 
to completing their CBP entry summary documentation. To obtain an 
import license, the importer, or the importer's broker or agent, must 
complete a form providing certain information to Commerce about the 
Mexican Cement importation. The import license number will be generated 
immediately upon submitting the information and will be needed to 
complete the CBP entry summary documentation. IA will use the 
information recorded in the import license form as the basis for 
monitoring compliance with the Agreement.
    The proposed rule was published on May 31, 2006 (71 FR 30836) 
(``proposed rule''), inviting parties to submit comments through June 
30, 2006. The rationale and authority for the program were provided in 
the preamble to the proposed rule and are not repeated here.
    Comments on the Proposed Rule: Comments received during the public 
comment period set forth in the proposed rule are addressed in this 
final rule. Four parties submitted comments on the proposed rule. Most 
of the comments supported the licensing program and focused on a 
particular aspect of the licensing program concerning which the party 
wanted clarification or an adjustment. The comments are summarized 
below, with comments raised by more than one party addressed first. 
Please note that the numbering used in the proposed

[[Page 10007]]

rule, 19 CFR 360.201 through 360.205, has changed to 19 CFR 361.101 
through 361.105 for purposes of this final rule. Therefore, all 
references in this document refer to 19 CFR 361.101 through 361.105.
    Comment 1: Access to Information.
    The Southern Tier Cement Committee (STCC) and Holcim (US), Inc. 
(Holcim) comment that, due to the limited amount of public, non-
proprietary information expected to be generated by the MCILS, little 
aggregate information will be available for publication on IA's Web 
site. Therefore, according to the STCC and Holcim, it is important that 
Commerce provide interested parties timely access to the information 
derived from the MCILS in accordance with the administrative protective 
order in effect for this Agreement in order that the parties may review 
whether the Mexican exporters are complying with the terms of the 
Agreement. Similarly, GCC Cemento, S.A. de C.V. and GCC Rio Grande, 
Inc. (collectively GCCC) ask Commerce to clarify the sort of aggregate 
information that would be made available to the public and to confirm 
that business proprietary data would not be revealed.
    Commerce Response: As noted in the SUPPLEMENTARY INFORMATION 
section of the proposed rule, certain aggregate information collected 
from the MCILS will be available on the IA Web site. No business 
proprietary information will be posted on the Web site, i.e., posted 
information will not be specific to a particular port or company. 
Instead, publicly available information will consist of the total 
quantity of Mexican Cement imports for all sub-regions combined. 
Further, Commerce will provide quarterly reports of information 
collected on the MCILS to parties that have been approved for access to 
business proprietary information under the administrative protective 
order in effect for this Agreement. See Appendix 26 of the Agreement, 
``Agreement for Disclosure of and Access to Business Proprietary 
Information.''
    Commerce has added 19 CFR 361.101(a)(5) to this final rule to 
address concerns about access to information and the use of business 
proprietary information.
    Comment 2: Maintaining Up-To-Date Information.
    The STCC comments that, unlike 19 CFR 360.102(b), which governs 
Commerce's Steel Import Monitoring and Analysis (SIMA) licensing 
system, 19 CFR 361.102(a)(2) does not include the language, ``It is the 
responsibility of the applicant to keep the information up-to-date,'' 
when discussing the information necessary to obtain a user 
identification number. The STCC asks that this language be added in 
order to ensure that the applicants for an import license from the 
MCILS will be aware of their responsibility to keep their information 
current.
    Commerce Response: Commerce agrees with the STCC in this regard. 
For the purposes of this final rule, Commerce has added the sentence, 
``It is the responsibility of the applicant to keep the information up-
to-date,'' to 19 CFR 361.102(a)(2).
    Comment 3: Types of Entries.
    GCCC comments that Commerce used the phrase ``all imports of 
Mexican Cement'' in 19 CFR 361.101(a)(3), and the phrase ``all entries 
for consumption of covered Mexican Cement products'' in 19 CFR 
361.101(b) when describing what products will require an import 
license. GCCC comments that Commerce should clarify whether all imports 
of Mexican Cement or all entries of Mexican Cement for consumption 
would require an import license. Specifically, GCCC asks whether a 
sample for testing purposes, which is not an entry for consumption, 
would require an import license.
    Commerce Response: In order to provide Commerce with the ability to 
monitor this Agreement effectively, all entries of Mexican Cement 
included within the scope of the Agreement, including samples, whether 
or not for consumption, will be required to be accompanied by an import 
license issued through the MCILS. Commerce has added this clarification 
to 19 CFR 361.101(a)(3) and (b) of the final rule.
    Commerce has also clarified 19 CFR 361.101(b) to state that all 
shipments of covered Mexican Cement into FTZs, known as FTZ admissions, 
will require an import license prior to the filing of FTZ admission 
documents as stated in 19 CFR 361.101(c).
    Comment 4: Multiple Products.
    GCCC comments that, in the proposed rule, both the preamble and 19 
CFR 361.101(a)(4) state that a single import license may cover multiple 
products as long as certain information on the import license remains 
the same. However, GCCC notes that the information which must remain 
the same differs between the two provisions and requests that Commerce 
clarify what information is required to be the same in order for an 
import license to cover multiple products.
    Commerce Response: In order for an import license to cover multiple 
products, the following information must remain the same: Company Name, 
Address, City, State, Zip, Contact Name, Contact Phone, Contact Fax, 
Contact E-mail, Importer Name, Exporter Name, Manufacturer Name, 
Country of Origin, Country of Exportation, Expected Port of Entry, 
Expected Date of Importation, Expected Date of Export, Customs Entry 
Number (if known), Date License Valid From, Date License Valid Through, 
Date of Application, Subregion of Final Destination, Type of 
Affiliation, U.S. Affiliate's Name, Address, County, City, State, Zip, 
the Mexican Export License Number, and Disaster Relief Statement. Only 
the product-specific information (i.e., HTSUS Number, Product 
Description, Quantity, Unit, Entered Value in U.S. $, and Unit Value) 
may differ, if a single import license is used to cover multiple 
products. Commerce has added this clarification to 19 CFR 361.101(a)(4) 
of the final rule.
    Comment 5: Customs Entry Number Requirement.
    GCCC comments that 19 CFR 361.103(b) and (c)(xiii) of the proposed 
rule are ambiguous as to whether the CBP entry number is required to be 
reported on the application for an import license if known at the time 
of completing the application. GCCC requests that Commerce clarify 
whether the CBP entry number is required to be reported on the 
application for an import license if it is known at the time of 
application.
    Commerce Response: If the CBP entry number is known to the 
applicant at the time of applying for an import license, the party 
filing the application is required to report the CBP entry number. 
Commerce has added this clarification to 19 CFR 361.103(b) of the final 
rule.
    Comment 6: Final Destination.
    GCCC notes that 19 CFR 361.103(c)(xii) of the proposed rule states 
that an applicant must indicate the address of the silo/warehouse where 
the Mexican Cement will be kept until shipment to the first 
unaffiliated purchaser. According to GCCC, Mexican Cement that is 
stored in a silo or warehouse may be shipped to either an affiliated 
purchaser for resale or consumption, or to an unaffiliated purchaser. 
Therefore, GCCC requests that 19 CFR 361.103(c)(xii) of the proposed 
rule be amended to reflect this alternative.
    GCCC also comments, with regard to 19 CFR 361.103(xii) of the 
proposed rule, that Mexican Cement may be stored in a silo or warehouse 
in one region and then later shipped to a different region, if the 
final customer is not known at the time of entry and application for 
the import license. Therefore, GCCC requests that Commerce confirm that 
in such a situation, the final destination should be identified as the 
silo or warehouse

[[Page 10008]]

where the cement is stored upon importation, even if the cement is 
ultimately consumed or sold in a different sub-region.
    Commerce Response: During the negotiation of this Agreement, 
Commerce worked with all of the interested parties and their 
representatives, including GCCC, to develop the type of information 
needed to be collected by the MCILS in order for the system to be 
effective. Commerce and Secretar[iacute]a de Econom[iacute]a submitted 
several rounds of draft agreement text, including the appendices, for 
comment and review by the interested parties. After extensive 
deliberation and negotiation, all parties agreed to the Agreement and 
its related Appendices. Appendix 20 of the Agreement defines ``Final 
Destination'' exactly as it appears in 19 CFR 361.103(c)(xii) of the 
proposed rule and as intended by the drafters of the Agreement. As 
such, Commerce cannot modify the language of 19 CFR 361.103(c)(xii) of 
the final rule without modifying the terms of the Agreement. Therefore, 
for the purposes of the final rule, Commerce will not amend the 
language of 19 CFR 361.103(c)(xii) as GCCC has requested.
    In its entirety, the Agreement establishes a three-part monitoring 
system that includes export licenses issued by the Government of 
Mexico, an import license issued by Commerce, and monthly sales reports 
provided by the Mexican exporters and related importers. In accordance 
with Appendix 22 of the Agreement, any Mexican party exporting Mexican 
Cement to the United States is required to obtain an export license 
which states the ``Sub-Region of Final Destination'' to which the 
Mexican Cement is being exported. The export license number is to be 
reported on the import license issued by Commerce. Further, in 
accordance with Appendix 20 of the Agreement, to obtain an import 
license from Commerce, the importer must provide the ``Sub-Region of 
Final Destination'' in addition to the ``Final Destination.'' ``Sub-
Region of Final Destination'' is defined in Appendix 20 as the ``Sub-
region where either the Mexican Cement will be consumed by an 
affiliated company to make concrete or concrete products or the Sub-
region of the first unaffiliated purchaser of Mexican Cement.'' The 
Sub-Region of Final Destination reported on the Mexican export license 
must match the Sub-Region of Final Destination reported on the import 
license. Thus, when reporting ``Final Destination'' as set out in 19 
CFR 361.103(c)(xii) of the final rule, the final destination, including 
the silo or warehouse in which the Mexican Cement may be stored, may 
not differ from the Sub-Region of Final Destination reported on both 
the export and import licenses. In a situation where the end customer 
is not known at the time of importation and the product is stored in a 
silo or warehouse, if the Mexican Cement is sold into a Sub-region 
other than that listed on the export and import licenses, Commerce may 
commence an investigation pursuant to the terms of the Agreement, 
including, but not limited to, initiating a changed circumstances 
review in accordance with Section VII of the Agreement.
    Comment 7: Mexican Export License Number.
    GCCC comments that when the company ships Mexican Cement, the 
tonnage in a shipment may be covered by two separate Mexican Export 
Licenses, if the tonnage limit for one Mexican Export License is 
reached and a new Mexican Export License is needed to cover the 
additional quantity. Therefore, GCCC requests that Commerce confirm 
whether it will require the importer to identify the tonnage and value 
that correspond to each Export License, or if it will require the 
importer to list the total quantity and value for the entire shipment 
and list both Mexican Export License Numbers on its application for an 
import license.
    Cemex, S.A. de C.V. (Cemex) comments that the proposed rule does 
not explicitly say whether a single import license may be used for more 
than one entry if all of the information on the import license is the 
same and requests that Commerce explicitly state in the final rule if a 
single import license may be used for more than one entry.
    Commerce Response: The MCILS and the Mexican Export License systems 
are being established to track the quantity and value of Mexican Cement 
shipments accurately and on a real-time basis. Commerce must be able to 
trace specific quantities and values from a given Mexican Export 
License to an import license to ensure proper monitoring of the 
Agreement's sub-regional quotas. As designed, the application for an 
import license will only allow for the applicant to enter a single 
Mexican export license number. Thus, if a shipment of 100 metric tons 
(MT) is entered into the United States, 60 MT of which applies to one 
Mexican Export License, and 40 MT of which applies to a second Mexican 
Export License, the importer must obtain an import license for 60 MT 
and a second import license for 40 MT.
    Further, a separate import license is also required for each entry 
made pursuant to separate export licenses. Therefore, a separate import 
license is required for every entry of Mexican Cement. Commerce has 
added language clarifying these requirements in 19 CFR 361.101(a)(4) 
and (d) of the final rule.
    Comment 8: Copies of Licenses.
    GCCC comments that because only Commerce will have access to the 
completed import licenses after the date they are issued, Commerce 
should state how long it intends to maintain the import licenses. GCCC 
requests that Commerce maintain copies for the entire period that the 
Agreement is in effect. Cemex comments that the proposed rule does not 
provide a time frame in which Commerce will be required to issue a copy 
of an import license to a requesting party. Cemex suggests that 
Commerce be required to issue a copy of an import license within 24 
hours of when it is requested, and that it would be useful if there 
were an expedited procedure for obtaining a copy in a shorter period of 
time where the absence of a copy of the import license is impeding 
entry of Mexican Cement.
    Commerce Response: An importer will be able to access copies of the 
import licenses it has obtained through the MCILS via the MCILS Web 
site. In the event that the MCILS Web site is not accessible, Commerce 
will normally issue a copy by fax or standard mail within two business 
days. However, where the absence of an import license impedes entry of 
Mexican Cement, Commerce will make every effort to work with the 
importer and CBP to resolve the problem as quickly as possible.
    Comment 9: Correcting/Cancelling Import Licenses.
    GCCC raises two questions. First, 19 CFR 361.103(e) of the proposed 
rule states that applicants may cancel import licenses which contain 
errors prior to entry and file for a new import license with corrected 
information. GCCC asks whether there is a way to correct inadvertent 
errors to the import license after entry. Second, GCCC asks how 
Commerce will address situations in which an importer obtains an import 
license, but is notified of a cancelled sale after the entry date.
    Commerce Response: It is Commerce's intent that the MCILS monitor 
imports of Mexican Cement as accurately as possible. Any errors 
contained in an import license should be corrected prior to entry by 
correcting the import license or by cancelling the import license and 
applying for a new import license. In the situation where an 
inadvertent error

[[Page 10009]]

is discovered after entry, applicants will be able to correct the 
import license or cancel the import license and apply for a new import 
license. Commerce will monitor such actions closely and reserves the 
right to investigate corrections made after entry. If Commerce 
determines that an error corrected after entry was not an inadvertent 
error, Commerce may take appropriate action in accordance with the 
terms of the Agreement.
    Further, all Mexican Cement imported into the United States covered 
by the scope of the Agreement is required to have an import license. 
This requirement includes any Mexican Cement imported into the United 
States pursuant to a sale that is cancelled after entry.
    Comment 10: Typographical Error.
    The STCC comments that there appears to be a typographical error in 
19 CFR 361.104 of the proposed rule.
    Commerce Response: Commerce agrees and has corrected this error by 
adding the word ``or'' to the sentence in 19 CFR 361.104 of the final 
rule.

Regulatory Flexibility Act

    The Chief Counsel for Regulation certified to the Chief Counsel for 
Advocacy of the Small Business Administration that the proposed rule, 
if adopted, will not have a significant impact on a substantial number 
of small entities as that term is defined in the Regulatory Flexibility 
Act, 5 U.S.C. 601 et seq. A summary of the factual basis for this 
certification is below.
    Commerce is unable to determine the number of brokerage companies 
and importers that would be impacted by this rule as Commerce does not 
collect this information. However, based on historical data, Commerce 
estimates that there are few brokerage companies and importers that 
would be considered small entities under Small Business 
Administration's standard (5 U.S.C. 603(b)(3)). Typically, larger 
brokers handle Mexican Cement shipments because of the capital that is 
needed upfront to handle bonds and other costs. Each importer or broker 
must fill out the import license form for each entry of the subject 
merchandise. Based on CBP entry summary information, we estimate that 
12,150 import licenses will be issued each year. Of this number, only a 
small percentage of import licenses would be requested by a small 
entity as a result of this rule.
    Even if this rule impacted a large number of small entities, these 
entities would not incur significant costs to comply with the proposed 
regulations. Most brokerage companies that are currently involved in 
filing required documentation for importing goods into the United 
States, specifically CBP documentation, are accustomed to CBP's 
automated systems. Today, more than 99 percent of CBP filings are 
handled electronically. Therefore, the web-based nature of this simple 
import license application should not impose a significant cost to any 
firm in completing this new requirement. However, should a company 
prefer or need to apply for an ID or import license by other than 
electronic means, a fax/phone option will be available at Commerce 
during regular business hours. There is no cost to register for a 
company-specific user identification number and no cost to apply for an 
import license.
    Each import license form is expected to take at most about 10 
minutes to complete using much of the same information the brokers will 
use to complete their CBP entry summary documentation. The response 
time should not vary widely because the same information is used to 
fill out other required CBP documents. The estimated average cost to 
private sector respondents is $20.00 per hour.
    Based on the estimated 12,150 import licenses that will be issued 
each year, the total cost to respondents as a result of this rule is 
$40,500.00. Based on historic CBP information, there are few small 
entities that would be affected by this rule. Therefore, of this 
amount, only a small percentage of the total cost would be incurred by 
small entities. Based on these figures, this action will not have a 
significant economic impact on a substantial number of small entities. 
No comments were received regarding the economic impact of this rule. 
As a result, no Final Regulatory Flexibility Analysis was prepared.

Paperwork Reduction Act

    This final rule contains collection-of-information requirements 
subject to review and approval by OMB under the Paperwork Reduction 
Act. These requirements have been approved by OMB under the Paperwork 
Reduction Act (OMB No.: 0625-0259; Expiration Date: December 31, 2009). 
The public reporting burden for these collections of information is 
estimated at 10 minutes. Parties must maintain copies in accordance 
with CBP's existing requirements. The import licensing system requests 
information already required of an importer, approval is automatic, and 
the importer will have ample opportunity and time to apply. These 
estimates of time required to complete an application include the time 
for reviewing instructions, searching existing data sources, gathering 
and maintaining the data needed, and completing and reviewing the 
collection of information.
    All responses to this collection of information are mandatory, and 
will be provided to the extent allowed by law. Notwithstanding any 
other provision of law, no person is required to respond to, nor shall 
any person be subject to a penalty for failure to comply with, a 
collection of information subject to the Paperwork Reduction Act unless 
that collection displays a valid OMB Control Number. Send comments on 
the reporting burden estimate or any other aspect of the requirements 
in this final rule to OMB at the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, DC 20503 
(Attention: ITA Desk Officer).

Executive Order 12866

    It has been determined that this rule is significant for purposes 
of Executive Order 12866 of September 30, 1993 (``Regulatory Planning 
and Review'') (58 FR 51735 (October 4, 1993)).

Executive Order 13132

    This rule does not contain policies with federalism implications as 
that term is defined in section 1(a) of Executive Order 13132, dated 
August 4, 1999 (64 FR 43255 (August 10, 1999)).

0
For the reasons set out in the preamble, 19 CFR part 361 is added as 
follows:

PART 361--MEXICAN CEMENT IMPORT LICENSING SYSTEM

Sec.
361.101 Mexican Cement Import Licensing System.
361.102 Online registration.
361.103 Automatic issuance of import licenses.
361.104 Fees.
361.105 Hours of operation.

    Authority: 13 U.S.C. 301(a) and 302.


Sec.  361.101  Mexican Cement Import Licensing System.

    (a) In general. (1) On March 6, 2006, the Agreement between the 
Office of the United States Trade Representative and the Department of 
Commerce of the United States of America and the Ministry of Economy of 
the United Mexican States (Secretaria de Economia) on Trade in Cement 
(Agreement) was signed. Pursuant to the Agreement, the United States 
has agreed to implement an import licensing system for imports of 
merchandise covered by the scope of the antidumping duty order on 
Cement from Mexico. Some of the data to be collected is in addition to 
data currently collected by U.S. Customs and Border Protection (USCBP). 
The data collected

[[Page 10010]]

by the Mexican Cement Import Licensing System will be used by the 
Department of Commerce (Commerce) to monitor imports of Mexican Cement, 
as the imports occur.
    (2) Mexican Cement is defined as gray portland cement and clinker 
from Mexico. Gray portland cement is a hydraulic cement and the primary 
component of concrete. Clinker, an intermediate material produced when 
manufacturing cement, has no use other than being ground into finished 
cement. Specifically included within the scope of this definition are 
pozzolanic blended cements and oil well cements. Specifically excluded 
are white cement and Type ``S'' masonry cement. Gray portland cement is 
currently classifiable under the Harmonized Tariff Schedule of the 
United States (HTSUS) item number 2523.29 and cement clinker is 
currently classifiable under HTSUS item number 2523.10. Gray portland 
cement has also been entered under HTSUS item number 2523.90 as ``other 
hydraulic cements.'' These HTSUS subheadings are provided for 
convenience and USCBP purposes; the written definition is controlling 
for purposes of this Agreement.
    (3) The Mexican Cement Import Licensing System includes an online 
registration system. All imports of Mexican Cement covered by the scope 
of the Agreement, including samples, whether or not for consumption, 
are subject to the Mexican Cement Import Licensing requirements. 
Information gathered from these import licenses will be used to ensure 
that the terms of the Agreement are complied with and enforced.
    (4) A single import license may cover multiple products if the 
following information reported on the import license remains the same: 
Company Name, Address, City, State, Zip, Contact Name, Contact Phone, 
Contact Fax, Contact E-mail, Importer Name, Exporter Name, Manufacturer 
Name, Country of Origin, Country of Exportation, Expected Port of 
Entry, Expected Date of Importation, Expected Date of Export, Customs 
Entry Number (if known), Date License Valid From, Date License Valid 
Through, Date of Application, Subregion of Final Destination, Type of 
Affiliation, U.S. Affiliate's Name, Address, County, City, State, Zip, 
Mexican Export License Number, and Disaster Relief Statement. Separate 
import licenses will be required for each type of Mexican Cement entry 
if the above information differs. As a result, a single USCBP entry 
summary may require more than one Mexican Cement import license. The 
applicable import license(s) must cover the total quantity of Mexican 
Cement entered and should cover the same information provided on USCBP 
Form 7501.
    (5) Access to Information. (i) Information gathered by the Mexican 
Cement Import Licensing System will be treated as business proprietary 
information and will be subject to the administrative protective order 
in place for this Agreement. Commerce may elect to publish certain 
aggregate information collected by the Mexican Cement Import License 
System on the Import Administration Web site. Any information Commerce 
elects to publish will not include business proprietary information nor 
information from specific ports of entry or companies.
    (ii) In accordance with 19 CFR 351.305, interested parties who have 
been approved for access to business proprietary information under the 
administrative protective order in effect for this Agreement will 
receive a quarterly report of all information gathered by the Mexican 
Cement Import License System.
    (b) Covered Entries. All entries of Mexican Cement subject to the 
Agreement, including samples, whether or not for consumption, will 
require an import license prior to the filing of USCBP Form 7501, 
except as provided in Sec.  361.101(c). The import license number(s) 
must be reported on USCBP Form 7501 at the time of filing. There is no 
requirement to present physical copies of the import license forms at 
the time of filing USCBP Form 7501; however, copies must be maintained 
in accordance with USCBP's existing requirements. Submission of a USCBP 
Form 7501 without the required import license number(s) will be 
considered circumvention of the Agreement.
    (c) Foreign Trade Zone entries. All shipments of covered Mexican 
Cement into FTZs, known as FTZ admissions, will require an import 
license prior to the filing of FTZ admission documents. The import 
license number(s) must be reported on the application for FTZ admission 
and/or status designation (USCBP Form 214) at the time of filing. There 
is no requirement to present physical copies of the import license 
forms at the time of FTZ admission; however, copies must be maintained 
in accordance with USCBP's existing requirements. Submission of FTZ 
admission documents without the required import license number(s) will 
be considered circumvention of the Agreement. A further Mexican Cement 
import license will not be required for shipments from FTZs into the 
commerce of the United States.
    (d) Mexican Export License Requirement. Each importer is required 
to submit a valid Mexican Export License to USCBP with its 7501 entry 
summary. For multiple shipments at multiple ports, or multiple entries 
at one port, the original Mexican Export License shall be presented 
with the first 7501 entry summary and a copy of the Export License 
shall be presented with each subsequent 7501 entry summary. In the case 
where an entry is covered by two Mexican export licenses, the importer 
must obtain two separate import licenses (e.g., if a shipment of 100 
metric tons (MT) is entered into the United States, 60 MT of which 
applies to one Mexican Export License, and 40 MT of which applies to a 
second Mexican Export License, the importer must obtain an import 
license for 60 MT and a second import license for 40 MT).


Sec.  361.102  Online registration.

    (a) In General. (1) Any importer, importing company, customs broker 
or importer's agent with a U.S. street address may register and obtain 
the user identification number necessary to log on to the automatic 
Mexican Cement import license issuance system. Foreign companies may 
obtain a user identification number if they have a U.S. address through 
which they may be reached; P.O. Boxes will not be accepted. A user 
identification number normally will be issued within two business days. 
Companies will be able to register online through the import licensing 
Web site. However, should a company prefer to apply for a user 
identification number non-electronically, a phone/fax option will be 
available at Commerce during regular business hours.
    (2) This user identification number will be required in order to 
log on to the Mexican Cement import license issuance system. A single 
user identification number will be issued to an importing company, 
brokerage house or importer's agent. Operating units within the company 
(e.g., individual branches, divisions, or employees) will all use the 
same company user identification number. The Mexican Cement import 
license issuance system will be designed to allow multiple users of a 
single identification number from different locations within the 
company to enter information simultaneously.
    (b) Information required to obtain a user identification number. In 
order to obtain a user identification number, the importer, importing 
company, customs broker or importer's agent will be required to provide 
certain general information. This information will include: the filer's 
company name,

[[Page 10011]]

employer identification number (EIN) or USCBP ID number (where no EIN 
is available), U.S. street address, telephone number, e-mail address, 
and contact information for both the company headquarters and any 
branch offices that will be applying for Mexican Cement import 
licenses. It is the responsibility of the applicant to keep this 
information up-to-date. This information will not be released by 
Commerce, except as required by U.S. law.


Sec.  361.103  Automatic issuance of import licenses.

    (a) In general. Mexican Cement import licenses will be issued to 
registered importers, customs brokers or their agents through the 
automatic Mexican Cement Import Licensing System. The import licenses 
will be issued automatically after the completion of the form.
    (b) USCBP entry number. Filers are required to report a USCBP entry 
number to obtain an import license if the USCBP entry number is known 
at the time of filing for the import license.
    (c) Information required to obtain an import license. (1) The 
following information is required to be reported in order to obtain an 
import license (if using the automatic licensing system, some of this 
information will be provided automatically from information submitted 
as part of the registration process):
    (i) Applicant company name and address;
    (ii) Applicant contact name, phone number, fax number and e-mail 
address;
    (iii) Importer name;
    (iv) Exporter name;
    (v) Manufacturer name;
    (vi) Country of origin;
    (vii) Country of exportation;
    (viii) Expected date of export;
    (ix) Expected date of import;
    (x) Expected port of entry;
    (xi) Sub-Region of Final Destination: Indicate the Sub-region where 
either the Mexican Cement will be consumed by an affiliated company to 
make concrete or concrete products or the Sub-region of the first 
unaffiliated purchaser of the Mexican Cement.
    (xii) Final Destination: Indicate the complete name and address 
(including county) of either the affiliated company that will consume 
the Mexican Cement or the first unaffiliated purchaser of the Mexican 
Cement. If either is not known when the Import License is issued, 
indicate the address (including county) where the Mexican Cement will 
be siloed/warehoused until the time of shipment to the first 
unaffiliated purchaser.
    (xiii) USCBP entry number, if known;
    (xiv) Current Harmonized Tariff System of the United States (HTSUS) 
number (from Chapter 25 of the HTSUS);
    (xv) Quantity (in metric tons);
    (xvi) Customs value (U.S. $);
    (xvii) Whether the entry is made pursuant to the disaster relief 
provisions of the Agreement; and
    (xviii) Mexican Export License Number.
    (2) Certain fields will be automatically completed by the automatic 
import license system based on information submitted by the filer 
(e.g., product category, unit value). Filers should review these fields 
to help confirm the accuracy of the submitted data.
    (3) Upon completion of the form, the importer, customs broker or 
the importer's agent will certify as to the accuracy and completeness 
of the information and submit the form electronically. After submitting 
the completed form, the system will automatically issue a Mexican 
Cement import license number. The refreshed form containing the 
submitted information and the newly issued import license number will 
appear on the screen (the ``import license form''). If needed, copies 
of completed import license forms can be requested from Commerce during 
normal business hours.
    (d) Duration of the Mexican Cement import license. The Mexican 
Cement import license can be applied for up to 30 days prior to the 
expected date of importation and until the date of filing of USCBP Form 
7501, or in the case of FTZ entries, the filing of USCBP Form 214. The 
Mexican Cement import license is valid for 60 days; however, import 
licenses that were valid on the date of importation but expired prior 
to the filing of USCBP Form 7501 will be accepted.
    (e) Correcting submitted license information. If an error is 
discovered in the import license after the entry date listed on USCBP 
Form 7501, filers will be able to correct the import license or cancel 
the import license and obtain a new import license. Commerce reserves 
the right to verify any changes made to an import license after entry 
and may take appropriate action under the terms of the Agreement if it 
determines that a violation of the Agreement has occurred.


Sec.  361.104  Fees.

    No fees will be charged for obtaining a user identification number 
or issuing a Mexican Cement import license.


Sec.  361.105  Hours of operation.

    The automatic licensing system will generally be accessible 24 
hours a day, 7 days a week but may be down at selected times for server 
maintenance. If the system is down for an extended period of time, 
parties will be able to obtain import licenses from Commerce directly 
via fax during regular business hours.

    Dated: February 28, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. 07-996 Filed 3-5-07; 8:45 am]
BILLING CODE 3510-DS-P