Federal Register / Vol. 61, No. 104 / Wednesday, May 29, 1996 / Rules and Regulations 26783

airspace within the Great Barrington, MA,

and Hudson, NY, Class E airspace areas.

* * * * *

Issued in Burlington, MA, on May 28, 1996

David J. Hurley,

Manager, Air Traffic Division, New England

Region.

[FR Doc. 96–13424 Filed 5–28–96; 8:45 am]

BILLING CODE 4910–B–M

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

15 CFR Part 2011

Implementation of Tariff-Rate Quota for

Imports of Sugar

AGENCY: Office of the United States

Trade Representative (USTR).

ACTION: Final rule.

SUMMARY: This rule makes final the

interim final rule published on October

4, 1990 in the Federal Register

governing certificates of quota eligibility

for imports of sugar, specialty sugar, and

allocations for ‘‘Other Specified

Countries and Areas’’, with a change

responding to comments received on

that interim final rule and with

conforming changes to reflect the entry

into force of the Agreement Establishing

the World Trade Organization (WTO).

EFFECTIVE DATE: May 29, 1996.

ADDRESSES: Office of the United States

Trade Representative, Office of

Agricultural Affairs, 600 17th Street

NW., Washington, DC 20506.

FOR FURTHER INFORMATION CONTACT:

Thomas Perkins, Senior Economist for

Agricultural Affairs, Room 421, Office of

the United States Trade Representative,

Washington, DC 20506; telephone: (202)

395–6127.

SUPPLEMENTARY INFORMATION: As a result

of the Uruguay Round Agreements,

approved by the Congress in section 101

of the Uruguay Round Agreements Act

(URAA) (Pub. L. 103–465), the United

States has replaced the previous tariffrate quota (TRQ) for imports of certain

sugars, syrups, and molasses with a new

tariff-rate quota provided in Schedule

XX—United States of America annexed

to the Marrakesh Protocol to the General

Agreement on Tariffs and Trade 1994

(GATT 1994). Pursuant to section 111 of

the URAA, the President proclaimed a

number of changes to the Harmonized

Tariff Schedule of the United States

(HTS) to implement the new sugar TRQ

(President Proclamation No. 6763 of

December 23, 1994). The changes

include, among other things, changes in

the HTS item numbers for imports of

sugar, the deletion of notes to the HTS,

and the proclaiming of new notes to the

HTS.

A number of conforming changes

need to be made to the sugar regulations

issued by the United States Trade

Representative (USTR) to reflect these

changes to the HTS. This rule makes

those conforming changes, as well as

some technical and clerical

amendments. Those conforming

changes include correcting the

references to the HTS to reflect the new

HTS item numbers and removing

subpart C as unnecessary in light of the

fact that the allocations under the new

TRQ will be announced annually.

In addition, when the United States

Trade Representative promulgated the

current rule on October 4, 1990 (55 FR

40648), it did so as an interim rule and

invited public comments. This rule

includes an amendment to the

definition of specialty sugar in response

to the comments received.

Summary of Issues Raised by Public

Comments

Four public comments were received.

Specialty Sugars

One commenter requested that certain

edible sugar decorations be added to the

list of products eligible for potential

treatment as ‘‘specialty sugars.’’

Pursuant to this public comment, this

final rule adds to that list sugar

decorations. Two informal comments

that were received after the December 4,

1990, deadline requested that various

other specified sugar products be added

to the list of products eligible for

treatment as ‘‘specialty sugars.’’ The

Office of the United States Trade

Representative, responding to these

written comments, has added to the list:

golden granulated sugar, muscovado,

molasses sugar and sugar cubes. The

United States Trade Representative has

determined that these specific items are

appropriate because they represent

specialty sugars within the normal

commerce of the United States.

The United States Trade

Representative also has determined that

it is appropriate to provide in the

definition for other forms of sugar

determined by the United States Trade

Representative to be specialty sugar

products within the normal commerce

of the United States.

Another commenter requested that

rock candy be removed from the list of

products which are eligible for potential

treatment as specialty sugar. The

commenter’s suggestion was not

adopted primarily because rock candy

appears to qualify as specialty sugar.

Reallocation of Quota Shortfalls

Finally, a commenter suggested that

the rule contain a provision that if a

country were not fully utilizing its

allocation under the tariff-rate quota,

then that country’s allocation would be

automatically reallocated to other

countries. The commenter’s suggestion

was not adopted in the final rule

because a general provision to that effect

is unnecessary given alternative means

by which unused allocations may be

reallocated on a case-by-case bais when

appropriate. Moreover, the HTS

authorizes the USTR, in consultation

with the Secretaries of State and

Agriculture, to modify or suspend a

country’s allocation for the remainder of

a quota year whenever he or she

determines that a country will not be

filling such allocation and he or she

finds that such action is appropriate to

carry out the rights or obligations of the

United States under any international

agreement to which the United States is

a party or is appropriate to promote the

economic interests of the United States.

Review

This rule has been determined to be

a ‘‘significant regulatory action’’ under

Executive Order 12866.

Pursuant to the Unfunded Mandates

Reform Act of 1995, USTR has assessed

the effects of this rulemaking action on

state, local, and tribal governments, and

the private sector. This action does not

compel the expenditure of $100 million

or more by any state, local, or tribal

government, or by anyone in the private

sector, and therefore a statement under

section 202 of the Act is not required.

Pursuant to the Paperwork Reduction

Act of 1980, the Office of Management

and Budget has approved the

information collection requirements

imposed by this rule under Office of

Management and Budget control

number 0551–0014. Comments on any

burden resulting from the information

collection requirements of this

regulation may be forwarded to: Desk

Officer for Agriculture, Office of

Information and Regulatory Affairs,

Office of Management and Budget,

Washington, DC 20503. These programs

are not subject to the provisions of

Executive Order 12372 which required

intergovernmental consultation with

State and local officials.

No regulatory flexibility analysis is

required for this rule since neither 5

U.S.C. 553 nor any other provision of

law requires publication of a general

notice of proposed rulemaking with

respect to this rule. However, the United

States Trade Representative has also

determined that the rule will not have
26784 Federal Register / Vol. 61, No. 104 / Wednesday, May 29, 1996 / Rules and Regulations

a significant economic impact on a

substantial number of small entities.

List of Subjects in 15 CFR Part 2011

Certificates of quota eligibility,

imports, specialty sugars, sugar.

Accordingly, the interim rule

amending 15 CFR part 2011 which

published at 55 FR 40648 (October 4,

1990) is adopted as a final rule with the

following changes:

PART 2011—ALLOCATION OF TARIFFRATE QUOTA ON IMPORTED

SUGARS, SYRUPS AND MOLASSES

1. The authority citation for part 2011

is revised to read as follows:

Authority: 19 U.S.C. 3601, Presidential

Proclamation No. 6763, Additional U.S. note

5 to chapter 17 of the Harmonized Tariff

Schedule of the United States.

Section 2011.101 is revised to read as

follows:

§ 2011.101 General.

This subpart sets forth the terms and

conditions under which certificates of

quota eligibility will be issued to foreign

countries that have been allocated a

share of the U.S. sugar tariff-rate quota.

Except as otherwise provided in this

subpart, sugar imported from a foreign

country may not be entered unless such

sugar is accompanied by a certificate of

quota eligibility. This subpart applies

only to the ability to enter sugar at the

in-quota tariff rates of the quota

(subheadings 1701.11.10, 1701.12.10,

1701.91.10, 1701.99.10, 1702.90.10, and

2106.90.44 of the HTS). Nothing in this

subpart shall affect the ability to enter

articles at the over-quota tariff rate

(subheadings 1701.11.50, 1701.12.50,

1701.91.30, 1701.99.50, 1702.90.20,

2106.90.46).

3. Section 2011.102 is amended by

redesignating paragraphs (g) through (m)

as paragraph (h) through (n)

respectively, adding a new paragraph

(g), and revising paragraphs (a), (c), (e),

(f), (j), (k), (l), and (n) (as so

redesignated) to read as follows:

§ 2011.102 Definitions.

* * * * *

(a) ‘‘Additional U.S. Note 5’’ means

additional U.S. Note 5 to chapter 17 of

the HTS, including any amendments

thereto.

* * * * *

(c) ‘‘Certificate of quota eligibility’’ or

‘‘certificate’’ means a certificate issued

by the Secretary to a foreign country

that, when duly executed and issued by

the certifying authority of such foreign

country, authorizes the entry into the

United States of sugar produced in such

country.

* * * * *

(e) ‘‘Enter’’ or ‘‘Entry’’ means to enter

or withdraw from warehouse, or the

entry or withdrawal from warehouse, for

consumption in the customs territory of

the United States.

(f) ‘‘Foreign country’’ means, for any

quota period, any foreign country or

area with which an agreement or

arrangement described in section

2011.106 is in effect for that quota

period and to which the United States

Trade Representative has allocated a

particular quantity of the quota.

(g) ‘‘HTS’’ means the Harmonized

Tariff Schedule of the United States.

* * * * *

(j) ‘‘Quota’’ means the tariff-rate quota

on imports of sugar provided in

additional U.S. Note 5.

(k) ‘‘Quota period’’ means the period

October 1 of a calendar year through

September 30 of the following calendar

year.

(1) ‘‘Raw value’’ has the meaning

provided in additional U.S. Note 5.

* * * * *

(n) ‘‘Sugar’’ means sugars, syrups, and

molasses described in subheadings

1701.11.10, 1701.12.10, 1701.91.10,

1701.99.10, 1702.90.10, and 2106.90.44

of the HTS, but does not include for any

foreign country for any quota period

specialty sugars as defined in subpart B

of this part if a quantity of the quota for

that quota period has been reserved for

specialty sugars and an amount of that

quota quantity has been allocated to that

country.

4. Section 2011.103 is amended by

revising paragraphs (a) and (b)(3) to read

as follows:

§ 2011.103 Entry into the United States.

(a) General. Except as otherwise

provided in §§ 2011.104, 2011.109, and

2011.110, no sugar that is the product of

a foreign country may be permitted

entry unless at the time of entry the

person entering such sugar presents to

the appropriate customs official a valid

and properly executed certificate of

quota eligibility for such sugar.

(b) * * *

(3) This paragraph (b) shall not affect

the manner in which the amount of

sugar (raw value) entered is determined

fo purposes of administering the quota.

5. Section 2011.104(a) is revised to

read as follows:

§ 2011.104 Waiver.

(a) General. The Secretary may waive,

with respect to individual shipments,

any or all of the requirements of this

subpart if he or she determines that a

waiver will not impair the proper

operation of the sugar quota system, that

it will not have the effect of modifying

the allocation of sugar made pursuant to

the provisions of subdivision (b) of

additional U.S. Note 5, and that such

waiver is justified by unusual,

unavoidable, or otherwise appropriate

circumstances. Such circumstances

include, but are not limited to, loss or

destruction of the certificate,

unavoidable delays in transmittal of the

certificate to the port of entry, and

clerical errors in the execution or

issuance of the certificate.

* * * * *

6. Section 2011.105(b) is revised to

read as follows:

§ 2011.105 Form and applicability of

certificate.

* * * * *

(b) Other limitations. The Secretary

may attach such other terms,

limitations, or conditions to individual

certificates of quota eligibility as he or

she determines are appropriate to carry

out the purposes of this subpart,

provided that such other terms,

limitations, or conditions will not have

the effect of modifying the allocation of

sugar made pursaunt to the provisions

of subdivision (b) of additional U.S.

Note 5. Such terms, limitations, or

conditions may include, but are not

limited to, maximum quantities per

certificate and a specified period of time

during which the certificate shall be

valid. In no event shall the maximum

quantity per certificate exceed 10,000

short tons.

* * * * *

7. Section 2011.107(b) introductory

text is revised to read as follows:

§ 2011.107 Issuance of certificates to

foreign countries.

* * * * *

(b) Adjustments. The Secretary may

adjust the amount of certificates issued

to a certifying authority for any quota

period, provided that such adjustment

will not have the effect of modifying the

allocation of sugar made pursaunt to the

provisions of subdivision (b) of

additional U.S. Note 5 to reflect:

* * * * *

8. Section 2011.109(a) is revised to

read as follows:

§ 2011.109 Suspension or revocation of

individual certificates.

(a) Suspension or revocation. The

Secretary may suspend, revoke, modify

or add further limitations to any

certificate if the Secretary determines

that such action or actions is necessary

to ensure the effective operation of the

import quota system for sugar and that
Federal Register / Vol. 61, No. 104 / Wednesday, May 29, 1996 / Rules and Regulations 26785

such suspension, revocation,

modification or addition of further

limitations will not have the effect of

modifying the allocation of sugar made

pursuant to the provisions of

subdivision (b) of additional U.S. Note

5.

* * * * *

9. Section 2011.201 is revised to read

as follows:

§ 2011.201 General.

This subpart sets forth the terms and

conditions under which certificates will

be issued to U.S. importers for

importing specialty sugars from

specialty sugar source countries.

Specialty sugars imported from

specialty sugar source countries may not

be entered unless accompanied by a

specialty sugar certificate. This subpart

applies only to the ability to enter

specialty sugar at the in-quota tariff

rates of the quota (subheadings

1701.11.10, 1701.12.10, 1701.91.10,

1701.99.10, 1702.90.10, and 2106.90.44

of the HTS). Nothing in this subpart

shall affect the ability to enter articles at

the over-quota tariff rate (subheadings

1701.11.50, 1701.12.50, 1701.91.30,

1701.99.50, 1702.90.20, 2106.90.46).

10. Section 2011.202 is amended by

removing paragraph (g), redesignating

paragraphs (h) through (j) as paragraphs

(g) through (i), respectively, revising

paragraphs (b), (c), (f), (g), and (i), as

redesignated, and adding a new

paragraph (j) as follows:

§ 2011.202 Definitions.

* * * * *

(b) ‘‘Certificate’’ means a specialty

sugar certificate issued by the Certifying

Authority permitting the entry of

specialty sugar.

(c) ‘‘Certifying Authority’’ means the

Team Leader, Import Quota Programs,

Foreign Agricultural Service, U.S.

Department of Agriculture, or his or her

designee.

* * * * *

(f) ‘‘Person’’ means any individual,

partnership, corporation, association,

estate, trust, or other legal entity, and,

wherever applicable, any unit,

instrumentality, or agency, of a

government, domestic or foreign.

(g) ‘‘Quota’’ means the tariff-rate quota

on imports of sugar provided in

additional U.S. Note 5 to chapter 17 of

the Harmonized Tariff Schedule of the

United States.

* * * * *

(i) ‘‘Specialty sugar’’ means brown

slab sugar (also known as slab sugar

candy), pearl sugar (also known as perl

sugar, perle sugar, and nibs sugar),

vanilla sugar, rock candy, demerara

sugar, dragees for cooking and baking,

fondant (a creamy blend of sugar and

glucose), ti light sugar (99.2% sugar

with the residual comprised of the

artificial sweeteners aspartame and

acesulfame K), caster sugar, golden

syrup, ferdiana granella grossa, golden

granulated sugar, muscovado, molasses

sugar, sugar decorations, sugar cubes,

and other sugars, as determined by the

United States Trade Representative, that

would be considered specialty sugar

products within the normal commerce

of the United States, all of which in

addition:

(1) are sugars, syrups, or molasses

described in subheading 1701.11.10,

1701.12.10, 1701.91.10, 1701.99.10,

1702.90.10, or 2106.90.44 of the

Harmonized Tariff Schedule of the

United States,

(2) are the product of a specialty sugar

source country, and

* * * * *

(j) ‘‘Specialty sugar source country’’

means any country or area to which the

United States Trade Representative has

allocated an amount of the quantity

reserved for the importation of specialty

sugars under additional U.S. Note 5 to

chapter 17 of the Harmonized Tariff

Schedule of the United States.

11. Section 2011.203 is amended by

revising paragraphs (a) and (c) to read as

follows:

§ 2011.203 Issuance of specialty sugar

certificates.

(a) Specialty sugars imported into the

United States from specialty sugar

source countries may be entered only if

such specialty sugars are accompanied

by a certificate issued by the Certifying

Authority.

* * * * *

(c) Subject to quota availability, an

unlimited number of complying

shipments may enter under a given

certificate and a given certificate may

cover more than one type of specialty

sugar. Issuance of a certificate does not

guarantee the entry of any specific

shipment of specialty sugar, but only

permits entry of such sugar if the

amount allocated to the specialty sugar

source country is not already filled.

12. Section 2011.204 is revised to read

as follows:

§ 2011.204 Entry of specialty sugars.

An importer or the importer’s agent

must present a certificate to the

appropriate customs official at the date

of entry of specialty sugars. Entry of

specialty sugars shall be allowed only in

conformity with the description of

sugars and other conditions, if any,

stated in the certificate.

13. Section 2011.206 is amended by

revising paragraph (c) to read as follows:

§ 2011.206 Suspension or revocation of

individual certificates.

* * * * *

(c) The determination of the

Certifying Authority under paragraph (a)

that the importer has failed to comply

with the requirements of this subpart

may be appealed to the Director, Import

Policy and Trade Analysis Division,

Foreign Agricultural Service (FAS), U.S.

Department of Agriculture, Washington,

D.C. 20250, within 30 days from the

date of suspension or revocation. The

request for reconsideration shall be

presented in writing and shall

specifically state the reason or reasons

why such determination should not

stand. The Director shall provide such

person with an opportunity for an

informal hearing on such matter. A

further appeal may be made to the

Administrator, FAS, U.S. Department of

Agriculture, Washington, D.C. 20250,

within five working days of receipt of

the notification of the Director’s

decision. The Certifying Authority may

take action under paragraph (b) during

the pendency of any appeal.

14. Section 2011.207(a) is revised to

read as follows:

§ 2011.207 Suspension of the certificate

system.

(a) Suspension. The U.S. Trade

Representative may suspend the

provisions of this subpart whenever he

or she determines that the quota is no

longer in force or that this subpart is no

longer necessary to implement the

quota. Notice of such suspension and

the effective date thereof shall be

published in the Federal Register.

* * * * *

15. Subpart B of part 2011 is amended

by adding § 2011.208 to read as follows:

§ 2011.208 Paperwork Reduction Act

assigned number.

The Office of Management and Budget

(OMB) has approved the information

collection requirements contained in the

regulations in this subpart in

accordance with 44 U.S.C. Chapter 25

and OMB control number 0551–0014

has been assigned with corresponding

clearance effective through April 30,

1997.

Subpart C—[Removed]

16. Subpart C of part 2011 is removed.

Signed at Washington, D.C. on May 15,

1996.

Charlene Barshefsky

Acting United States Trade Representative

[FR Doc. 96–12807 Filed 5–28–96; 8:45 am]

BILLING CODE 3190–01–M