49934 Federal Register / Vol. 73, No. 165 / Monday, August 25, 2008 / Rules and Regulations 

Correction to Final Rule 

■ Accordingly, pursuant to the authority 

delegated to me, the legal description as 

published in the Federal Register on 

July 30, 2008 (73 FR 44147), Airspace 

Docket No. 07–ASO–27, FAA Docket 

No. FAA–2008–0187, and incorporated 

by reference in 14 CFR 71.1, is corrected 

as follows: 

§ 71.1 [Amended] 

Paragraph 2004 Jet Routes. 

* * * * * 

■ On page 44148 correct the legal 

description for J–73, to read as follows: 

J–73 [Corrected] 

From Dolphin, FL; LaBelle, FL; INT Labelle 

313° and Lakeland, FL, 161° radials; 

Lakeland; Seminole, FL; La Grange, GA; 

Nashville, TN; Pocket City, IN; to 

Northbrook, IL. 

* * * * * 

Issued in Washington, DC, on August 13, 

2008. 

Edith V. Parish, 

Manager, Airspace and Rules Group. 

[FR Doc. E8–19276 Filed 8–22–08; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Bureau of Customs and Border 

Protection 

DEPARTMENT OF THE TREASURY 

[Docket No. USCBP–2008–0052; CBP Dec. 

08–32] 

19 CFR Parts 12 and 163 

RIN 1505–AB98 

Entry Requirements for Certain 

Softwood Lumber Products Exported 

From Any Country Into the United 

States 

AGENCIES: Customs and Border 

Protection, Department of Homeland 

Security; Department of the Treasury. 

ACTION: Interim rule; solicitation of 

comments. 

SUMMARY: This document sets forth 

interim amendments to title 19 of the 

Code of Federal Regulations (CFR) that 

prescribe special entry requirements 

applicable to certain softwood lumber 

and softwood lumber products exported 

from any country into the United States. 

The softwood lumber and softwood 

lumber products subject to these interim 

entry requirements are those described 

in section 804(a) within Title VIII 

(Softwood Lumber Act of 2008 or ‘‘the 

Act’’) of the Tariff Act of 1930, as added 

by section 3301 of Title III, Subtitle D, 

of the Food, Conservation, and Energy 

Act of 2008 (Pub. L. 110–246, enacted 

June 18, 2008). Within Title VIII, section 

803 requires the President to establish 

and maintain an importer declaration 

program with respect to the importation 

of certain softwood lumber and 

softwood lumber products and 

prescribes special entry requirements 

whereby importers must submit the 

export price, estimated export charge, if 

any, and an importer declaration with 

the entry summary. There are also new 

recordkeeping requirements applicable 

to certain imports of softwood lumber 

home packages and kits which are 

subject to declaration requirements, but 

which are not subject to the softwood 

lumber importer declaration program of 

section 803 of the Act. These interim 

amendments set forth the procedural 

and documentation requirements 

necessary to implement the entry 

requirements specified in the statute. 

DATES: This interim rule is effective on 

September 18, 2008. Comments must be 

received on or before October 24, 2008. 

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 No. USCBP 2008–0052. 

• Mail: Trade and Commercial 

Regulations Branch, Regulations and 

Rulings, U.S. Customs and Border 

Protection, 1300 Pennsylvania Avenue, 

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 also 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 Joseph Clark at (202) 572–

8768. 

FOR FURTHER INFORMATION CONTACT: 

Joseph M. Rees, Director, Trade 

Agreements and Communications 

Division, Office of International Trade, 

Tel: (202) 863–6065. 

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 interim 

rule. Customs and Border Protection 

(CBP) also invites comments that relate 

to the economic, environmental, or 

federalism effects that might result from 

this interim rule. Comments that will 

provide the most assistance to CBP in 

developing these procedures will 

reference a specific portion of the 

interim rule, explain the reason for any 

recommended change, and include data, 

information, or authority that supports 

such recommended change. 

Background 

I. Softwood Lumber Act of 2008: 

Importer Declaration Program 

Section 3301, within Title III, Subtitle 

D, of the Food, Conservation, and 

Energy Act of 2008 (Pub. L. 110–246) 

was enacted June 18, 2008, and amends 

the Tariff Act of 1930 (19 U.S.C. 1202 

et seq.) by adding a new Title VIII, 

entitled the ‘‘Softwood Lumber Act of 

2008’’ (‘‘the Act’’). The Act requires the 

President to establish and maintain an 

importer declaration program with 

respect to the importation of certain 

softwood lumber and softwood lumber 

products and prescribes special entry 

requirements whereby importers must 

provide the export price, estimated 

export charge, if any, and an importer 

declaration with the entry summary 

documentation. The Act also imposes 

new recordkeeping requirements 

applicable to certain imports of 

softwood lumber home packages and 

kits. 

Title VIII is comprised of sections 801 

through 809, which set forth the 

components of the softwood lumber 

importer declaration program. These 

sections, in pertinent part: 

• Define certain terms and phrases 

applicable to the program (section 802). 

• Prescribe entry requirements and 

the establishment of an electronic 

record thereof (section 803). 

• Establish the scope of the program 

and require the importer to retain and 

produce documentation pertaining to 

the entry of certain softwood lumber 

home packages and kits (section 804). 


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Federal Register / Vol. 73, No. 165 / Monday, August 25, 2008 / Rules and Regulations 49935 

• Require the Department of 

Commerce to make monthly 

determinations as to export charges to 

be collected by a country of export from 

exporters of covered softwood lumber 

products to ensure compliance with any 

international agreements entered into by 

that country and the United States 

(section 805). 

• Require the Secretary of the 

Treasury to conduct reconciliations to 

ensure the proper implementation and 

operation of international agreements 

entered into between a country of export 

of softwood lumber or softwood lumber 

products described in section 804(a) and 

the United States. The Secretary will 

reconcile: (1) The export price declared 

by a United States importer pursuant to 

section 803(b)(1) with the export price 

reported to the United States by the 

country of export, if any; and (2) the 

export price declared by a United States 

importer pursuant to section 803(b)(1) 

with the revised export price reported to 

the United States by the country of 

export, if any (section 806). 

• Require the Secretary of the 

Treasury to periodically verify the 

declarations made by a United States 

importer pursuant to section 803(c), 

including a determination as to whether 

the export price declared by a United 

States importer is the same as the export 

price provided on the export permit, if 

any, issued by the country of export and 

whether the estimated export charge 

declared by a United States importer 

pursuant to section 803(b)(2) is 

consistent with the determination 

published by the Under Secretary for 

International Trade of the Department of 

Commerce pursuant to section 805(b) 

(section 807). 

• Prescribe applicable penalties 

(section 808). 

• Require the submission of 

congressional reports by various 

government entities (section 809). 

II. Softwood Lumber Act of 2008: Entry 

Requirements 

Section 803 requires importers of 

covered softwood lumber and softwood 

lumber products (i.e., those products 

described in section 804(a) of the Act) 

to submit to CBP certain data with the 

entry summary. The required entry 

information consists of: 

• The export price for each line of 

softwood lumber or softwood lumber 

products (as defined in section 802(5)); 

• The estimated export charge, if any, 

applicable to each line of softwood 

lumber or softwood lumber products as 

calculated by applying the percentage 

determined and published by the Under 

Secretary for International Trade of the 

Department of Commerce, pursuant to 

section 805, to the export price; and 

• An importer declaration that 

verifies that ‘‘the person has made 

appropriate inquiry, including seeking 

appropriate documentation from the 

exporter and consulting the 

determinations published by the Under 

Secretary for International Trade of the 

Department of Commerce pursuant to 

section 805(b)’’ and, to the best of the 

person’s knowledge and belief, the 

export price provided is determined in 

accordance with the definition set forth 

in section 802(5), the export price 

provided is consistent with the export 

price provided on the export permit, if 

any, granted by the country of export, 

and the exporter has paid, or committed 

to pay, all export charges due in 

accordance with the volume, export 

price, and export charge rate or rates, if 

any, as calculated under an 

international agreement entered into by 

the country of export and the United 

States and consistent with the export 

charge determinations published by the 

Under Secretary for International Trade 

of the Department of Commerce. 

III. Description of Softwood Lumber and 

Softwood Lumber Products Covered by 

the Softwood Lumber Act of 2008 

Section 804 of the Act sets forth the 

scope of softwood lumber and softwood 

lumber products covered by the 

importer declaration program 

established under section 803. All 

softwood lumber and softwood lumber 

products classified under subheading 

4407.10.00, 4409.10.10, 4409.10.20, or 

4409.10.90 of the Harmonized Tariff 

Schedule of the United States (HTSUS) 

are subject to the importer declaration 

program established under section 803 

including the following softwood 

lumber, flooring, and siding: 

(1) Coniferous wood, sawn or chipped 

lengthwise, sliced or peeled, whether or 

not planed, sanded, or finger-jointed, of 

a thickness exceeding 6 millimeters; 

(2) Coniferous wood siding (including 

strips and friezes for parquet flooring, 

not assembled) continuously shaped 

(tongued, grooved, rabbeted, chamfered, 

v-jointed, beaded, molded, rounded, or 

the like) along any of its edges or faces, 

whether or not planed, sanded, or 

finger-jointed; 

(3) Other coniferous wood (including 

strips and friezes for parquet flooring, 

not assembled) continuously shaped 

(tongued, grooved, rabbeted, chamfered, 

v-jointed, beaded, molded, rounded, or 

the like) along any of its edges or faces 

(other than wood moldings and wood 

dowel rods) whether or not planed, 

sanded, or finger-jointed; 

(4) Coniferous wood flooring 

(including strips and friezes for parquet 

flooring, not assembled) continuously 

shaped (tongued, grooved, rabbeted, 

chamfered, v-jointed, beaded, molded, 

rounded, or the like) along any of its 

edges or faces, whether or not planed, 

sanded, or finger-jointed; and 

(5) Coniferous drilled and notched 

lumber and angle cut lumber. 

In addition, any product classified 

under subheading 4409.10.05 of the 

HTSUS that is continually shaped along 

its end or side edges, and unless 

excepted or excluded from the 

declaration requirement, softwood 

lumber products that are stringers, 

radius-cut box-spring frame 

components, fence pickets, truss 

components, pallet components, and 

door and window frame parts classified 

under subheading 4418.90.46.95, 

4421.90.70.40, or 4421.90.97.40 of the 

HTSUS are covered by the Act. 

The following products are not 

subject to the importer declaration 

program established under section 803 

because they are defined as excluded 

from the program: 

(1) Trusses and truss kits, properly 

classified under subheading 4418.90 of 

the HTSUS; 

(2) I-joist beams; 

(3) Assembled box-spring frames; 

(4) Pallets and pallet kits, properly 

classified under subheading 4415.20 of 

HTSUS; 

(5) Garage doors; 

(6) Edge-glued wood, properly 

classified under subheading 

4421.90.97.40 of the HTSUS; 

(7) Complete door frames; 

(8) Complete window frames; 

(9) Furniture; 

(10) Articles brought into the United 

States temporarily and for which an 

exemption from duty is claimed under 

subchapter XIII of chapter 98 of the 

HTSUS; and 

(11) Household and personal effects. 

Also, the following softwood lumber 

products are not subject to the importer 

declaration program established under 

section 803 because they are defined as 

excepted from the program: 

(1) Stringers (pallet components used 

for runners), if the stringers have at least 

two notches on the side, positioned at 

equal distance from the center, to 

properly accommodate forklift blades; 

and are properly classified under 

subheading 4421.90.97.40 of the 

HTSUS; 

(2) Box-spring frame kits, if the kits 

contain two wooden side rails; two 

wooden end (or top) rails; and varying 

numbers of wooden slats; and the side 

rails and the end rails are radius-cut at 

both ends. Box spring frame kits must 


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49936 Federal Register / Vol. 73, No. 165 / Monday, August 25, 2008 / Rules and Regulations 

be individually packaged, and contain 

the exact number of wooden 

components needed to make the boxspring frame described on the entry 

documents, with no further processing 

required. None of the components 

contained in the package may exceed 

one inch in actual thickness or 83 

inches in length. 

(3) Radius-cut box-spring frame 

components, not exceeding one inch in 

actual thickness or 83 inches in length, 

ready for assembly without further 

processing, if radius cuts are present on 

both ends of the boards and are 

substantial cuts so as to completely 

round one corner. 

(4) Fence pickets requiring no further 

processing and properly classified 

under subheading 4421.90.70 of the 

HTSUS, one inch or less in actual 

thickness, up to eight inches wide, and 

six feet or less in length, and having 

finials or decorative cuttings that clearly 

identify them as fence pickets (in the 

case of dog-eared fence pickets, the 

corners of the boards shall be cut off so 

as to remove pieces of wood in the 

shape of isosceles right angle triangles 

with sides measuring 3⁄4 of an inch or 

more). 

(5) Lumber originating in the United 

States that is exported to another 

country for minor processing and 

imported into the United States if the 

processing occurring in another country 

is limited to kiln drying, planing to 

create smooth-to-size board, and 

sanding; and the importer establishes to 

CBP’s satisfaction upon entry that the 

lumber originated in the United States. 

(6) Any softwood lumber or softwood 

lumber product that originated in the 

United States, if the importer, exporter, 

foreign processor, or original United 

States producer establishes to CBP’s 

satisfaction upon entry that the 

softwood lumber entered and 

documented as originating in the United 

States was first produced in the United 

States; and 

(7) Softwood lumber or softwood 

lumber products contained in a single 

family home package or kit, regardless 

of the classification under the HTSUS, 

if the importer declares that the 

following requirements have been met: 

(i) The package or kit constitutes a full 

package of the number of wooden pieces 

specified in the plan, design, or 

blueprint necessary to produce a home 

of at least 700 square feet produced to 

a specified plan, design, or blueprint; 

(ii) the package or kit contains all 

necessary internal and external doors 

and windows, nails, screws, glue, 

subfloor, sheathing, beams, posts, and 

connectors; and if included in the 

purchase contract, the decking, trim, 

drywall, and roof shingles specified in 

the plan, design, or blueprint; (iii) prior 

to importation, the package or kit is sold 

to a United States retailer that sells 

complete home packages or kits 

pursuant to a valid purchase contract 

referencing the particular home design, 

plan, or blueprint, and the contract is 

signed by a customer not affiliated with 

the importer; and (iv) softwood lumber 

products entered as part of the package 

or kit, whether in a single entry or 

multiple entries on multiple days, are to 

be used solely for the construction of 

the single family home specified by the 

home design, plan, or blueprint 

matching the CBP import entry. 

For each entry of softwood lumber 

products contained in a single family 

home package for which the importer 

declares that these four requirements are 

met, the importer must retain and make 

available to CBP upon request the 

following documentation: 

(1) A copy of the appropriate home 

design, plan, or blueprint matching the 

customs entry in the United States; 

(2) A purchase contract from a retailer 

of home kits or packages signed by a 

customer not affiliated with the 

importer; 

(3) A listing of all parts in the package 

or kit being entered into the United 

States that conforms to the home design, 

plan, or blueprint for which such parts 

are being imported; and 

(4) If a single contract involves 

multiple entries, an identification of all 

the items required to be listed under 

item (3) that are included in each 

individual shipment. 

IV. Interim Amendments at 19 CFR 

12.142 To Promulgate Softwood Lumber 

Importer Declaration Program 

In accordance with the Act’s 

requirements, this document makes 

interim amendments to part 12 of title 

19 of the CFR to provide an appropriate 

regulatory basis with respect to 

shipments of softwood lumber and 

softwood lumber products for the 

collection of export price, estimated 

export charge, if any, importer 

declaration and, if applicable, softwood 

lumber home packages and kits 

documentation. 

The interim amendments to 19 CFR 

part 12 set forth in this document add 

a new § 12.142 (19 CFR 12.142) which 

requires the importer to electronically 

transmit the export price, the estimated 

export charge, if any, and the importer 

declaration on the entry summary in 

any case in which softwood lumber or 

softwood lumber products described in 

section 804(a) of the Act are imported 

into the United States (entries of 

softwood lumber and softwood lumber 

products for which a Certificate of 

Origin has been issued from Canada’s 

Maritime Lumber Bureau must be 

submitted to CBP in paper. See 19 CFR 

12.140(c)). The new interim amendment 

also requires importers of softwood 

lumber home packages and kits 

described in section 804(c)(7)(A)(i) 

through (iv) of the Act to retain, and 

provide to CBP upon request, certain 

documentation pertaining to, inter alia, 

design plans, purchase contracts, and 

part listings. 

It is noted that section 803(b)(1) and 

(2) of the Act require that information 

regarding the export price and estimated 

export charge be submitted for ‘‘each 

shipment.’’ Accordingly, the interim 

amendment requires that the requisite 

information associated with each 

shipment be included on a single line 

on the entry summary. 

V. Recordkeeping Requirements 

Any substantiating documentation 

that supports an importer’s softwood 

lumber declaration, and copies of the 

softwood lumber home packages and 

kits documentation, are subject to the 

recordkeeping provisions set forth in 

part 163 of title 19 to the CFR. 

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 amended by 

this document to include the softwood 

lumber home packages and kits 

documentation requirement mandated 

by the Act, as well as any substantiating 

documentation that supports an 

importer’s softwood lumber declaration. 

This document amends section IV of the 

Appendix by adding a new § 12.142 that 

lists softwood lumber home packages 

and kits documentation and any 

substantiating documentation that 

supports an importer’s softwood lumber 

importer declaration as new entry 

records. 

VI. Penalties 

Failure to timely provide the required 

softwood lumber entry data will 

constitute a breach of the terms of the 

importer’s bond under § 113.62(b) of 

title 19 of the CFR (19 CFR 113.62) and 

could give rise to a claim for liquidated 

damages under the bond equal to the 

value of the merchandise involved in 

the default. 

VII. Other Applicable Entry 

Requirements 

The softwood lumber entry data 

elements required by these interim 

regulations are not otherwise collected 

by CBP at time of entry and are in 

addition to the entry and entry summary 

information otherwise required for 


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Federal Register / Vol. 73, No. 165 / Monday, August 25, 2008 / Rules and Regulations 49937 

importation into the United States as 

per section 484 of the Tariff Act of 1930, 

as amended (19 U.S.C. 1484). 

In addition, imports of softwood 

lumber or softwood lumber products 

from Canada may also be subject to 

§ 12.140 of title 19 to the Code of 

Federal Regulations (19 CFR 12.140), 

which sets forth the entry requirements 

prescribed by the Softwood Lumber 

Agreement entered into between the 

Governments of the United States and 

Canada on September 12, 2006 (‘‘SLA 

2006’’). In this regard, it is also noted 

that even those importers of softwood 

lumber and softwood lumber products 

that are exempt from the terms of 19 

CFR 12.140 remain subject to the 

softwood lumber entry requirements 

contained in 19 CFR 12.142. 

Inapplicability of Notice and Delayed 

Effective Date Requirements 

Pursuant to 5 U.S.C. 553(b)(B) and 

(d)(3), CBP has determined that it would 

be impracticable and contrary to the 

public interest to delay publication of 

this rule in final form pending an 

opportunity for public comment and 

that there is good cause for this interim 

rule to become effective upon providing 

less then 30 days notice. These interim 

amendments conform the regulations to 

the entry requirements set forth in Title 

VIII of the Tariff Act of 1930, as 

amended (19 U.S.C. 1202 et seq.), which 

go into effect August 18, 2008, and 

inform the public of the procedures 

necessary to comply with the statutory 

requirements. For these reasons, 

pursuant to the provisions of 5 U.S.C. 

553(d)(3), CBP finds that there is good 

cause for dispensing with a 30-day 

delayed effective date. 

Regulatory Flexibility Act and 

Executive Order 12866 

Because no notice of proposed 

rulemaking is required for this interim 

rule, the provisions of the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.) do 

not apply. Further, these amendments 

do not meet the criteria for a 

‘‘significant regulatory action’’ as 

specified in E.O. 12866. 

Paperwork Reduction Act 

The collections of information in this 

document are contained in § 12.142(c) 

and (d) (19 CFR 12.142(c) and (d)). This 

information is used by CBP to fulfill its 

information collection obligations under 

Title VIII of the Tariff Act of 1930, as 

added by section 3301 within Title III, 

Subtitle D, of the Food, Conservation, 

and Energy Act of 2008 (Pub. L. 110–

246), whereby importers of certain 

softwood lumber and softwood lumber 

products are required to submit the 

export price, estimated export charge, if 

any, and an importer declaration with 

the entry summary information or, 

where applicable, to submit additional 

documentation required for home 

packages and kits. The likely 

respondents are business organizations 

including importers and brokers. 

The collection of information 

associated with the entry summary 

documentation (CBP Form 7501) was 

previously approved by the Office of 

Management and Budget under control 

number 1651–0052. In accordance with 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3507), CBP has submitted to 

OMB for review the following 

adjustments to the information provided 

to OMB for the previously approved 

OMB control number to account for the 

changes in this interim rule. An agency 

may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a valid control number 

assigned by OMB. 

Estimated annual reporting and/or 

recordkeeping burden: 266,000 hours. 

Number of responses per respondent 

and/or recordkeeper: 1,905. 

Estimated number of respondents 

and/or recordkeepers: 210. 

Estimated annual frequency of 

responses: 400,000. 

Estimated time per response: 40 

minutes (.333 hours). 

Comments on the collection of 

information should be sent to the Office 

of Management and Budget, Attention: 

Desk Officer for the Department of the 

Treasury, Office of Information and 

Regulatory Affairs, Washington, DC 

20503. A copy should also be sent to the 

Trade and Commercial Regulations 

Branch, Regulations and Rulings, Office 

of International Trade, Customs and 

Border Protection, 1300 Pennsylvania 

Avenue, NW. (Mint Annex), 

Washington, DC 20229. Comments 

should be submitted within the time 

frame that comments are due regarding 

the substance of the interim rule. 

Comments are invited on: (a) Whether 

the collection of information is 

necessary for the proper performance of 

the functions of the agency, including 

whether the information will have 

practical utility; (b) the accuracy of the 

agency’s estimate of the burden of the 

collection of the information; (c) ways to 

enhance the quality, utility, and clarity 

of the information to be collected; (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology; 

and (e) estimates of capital or startup 

costs and costs of operations, 

maintenance, and purchase of services 

to provide information. 

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 the Regulations 

■ For the reasons stated above, parts 12 

and 163 of title 19 of the Code of 

Federal Regulations (19 CFR parts 12 

and 163) are amended as set forth 

below. 

PART 12—SPECIAL CLASSES OF 

MERCHANDISE 

■ 1. The authority citation for part 12 

continues and a new specific authority 

for § 12.142 is added 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; 

* * * * * 

§ 12.142 also issued under 19 U.S.C. 1484; 

section 3301 of Pub. L. 110–246. 

* * * * * 

§ 12.140 [Undesignated center heading 

amended] 

■ 2. The undesignated center heading 

‘‘Softwood Lumber from Canada’’

preceding § 12.140 is amended by 

removing the words ‘‘from Canada’’. 

■ 3. A new § 12.142 is added to read as 

follows: 

§ 12.142 Entry of softwood lumber and 

softwood lumber products from any 

country into the United States. 

(a) In general. This section, pursuant 

to the ‘‘Softwood Lumber Act of 2008’’

(‘‘the Act’’) (Title VIII of the Tariff Act 

of 1930, as amended (19 U.S.C. 1202 et 

seq.)), prescribes entry requirements 

applicable to certain imports of 

softwood lumber and softwood lumber 

products exported from any country 

into the United States. 

(b) Softwood lumber products 

covered. The softwood lumber and 

softwood lumber products covered by 

this section are those products 

described in section 804(a) of Title VIII 


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49938 Federal Register / Vol. 73, No. 165 / Monday, August 25, 2008 / Rules and Regulations 

of the Tariff Act of 1930, as amended 

(19 U.S.C. 1202 et seq.). 

(c) Entry requirements for shipments 

subject to the importer declaration 

program. For each shipment of softwood 

lumber or softwood lumber products 

described in section 804(a) of Title VIII 

to the Tariff Act of 1930, as amended, 

(19 U.S.C. 1202 et seq.) that is entered 

or withdrawn from warehouse for 

consumption, in the customs territory of 

the United States, the following 

information must be electronically 

submitted to CBP (except that, pursuant 

to 19 CFR 12.140(c), entries of softwood 

lumber and softwood lumber products 

for which a Certificate of Origin has 

been issued from Canada’s Maritime 

Lumber Bureau must be submitted to 

CBP in paper): 

(1) Export price. Each importer must 

provide the export price, expressed in 

U.S. dollars, on the entry summary in 

the designated space provided on the 

CBP Form 7501. 

(i) For purposes of this section, 

‘‘export price’’ means one of the 

following: 

(A) In the case of softwood lumber or 

a softwood lumber product that has 

undergone only primary processing, the 

value that would be determined F.O.B. 

at the facility where the product 

underwent the last primary processing 

before export. 

(B) In the case of softwood lumber or 

a softwood lumber product that 

underwent the last remanufacturing 

before export by a manufacturer who 

does not hold tenure rights provided by 

the country of export, did not acquire 

standing timber directly from the 

country of export, and is not related to 

the person who holds tenure rights or 

acquired standing timber directly from 

the country of export, the value that 

would be determined F.O.B. at the 

facility where the softwood lumber or 

softwood lumber product underwent the 

last primary processing. 

(C) In the case of softwood lumber or 

a softwood lumber product that 

underwent the last remanufacturing 

before export by a manufacturer who 

holds tenure rights provided by the 

country of export, acquired standing 

timber directly from the country of 

export, or is related to the person who 

holds tenure rights or acquired standing 

timber directly from the country of 

export, the value that would be 

determined F.O.B. at the facility where 

the softwood lumber or softwood 

lumber product underwent the last 

processing before export. 

(D) In the case of softwood lumber or 

a softwood lumber product described in 

paragraphs (c)(1)(i)(A), (B) or (C) of this 

section for which an F.O.B. value 

cannot be determined, the export price 

will be the market price for the identical 

softwood lumber or softwood lumber 

product sold in an arm’s-length 

transaction in the country of export at 

approximately the same time as the 

exported softwood lumber or softwood 

lumber product. The market price will 

be determined in the following order of 

preference: 

(1) The market price for the softwood 

lumber or softwood lumber product sold 

at substantially the same level of trade 

(as described in 19 CFR 351.412(c)) as 

the exported softwood lumber or 

softwood lumber product but in 

different quantities. 

(2) The market price for the softwood 

lumber or softwood lumber product sold 

at a different level of trade (as defined 

in 19 CFR 351.412(c)) than the exported 

softwood lumber or softwood lumber 

product but in similar quantities. 

(3) The market price for the softwood 

lumber or softwood lumber product sold 

at a different level of trade (as defined 

in 19 CFR 351.412(c)) than the exported 

softwood lumber or softwood lumber 

product and in different quantities. 

(ii) For purposes of paragraph (c)(1) of 

this section, the following definitions 

apply: 

(A) F.O.B. The term ‘‘F.O.B.’’ means a 

value consisting of all charges payable 

by a purchaser, including those charges 

incurred in the placement of 

merchandise on board of a conveyance 

for shipment, but does not include the 

actual shipping charges or any 

applicable export charges. 

(B) Related to the person. The term 

‘‘related to the person’’ means: 

(1) A person bears a relationship to 

such other person described in section 

152(a) of the Internal Revenue Code of 

1986; 

(2) A person bears a relationship to 

such person described in section 267(b) 

of the Internal Revenue Code of 1986, 

except that ‘‘5 percent’’ will be 

substituted for ‘‘50 percent’’ each place 

it appears; 

(3) The person and such other person 

are part of a controlled group of 

corporations, as that term is defined in 

section 1563(a) of the Internal Revenue 

Code of 1986, except that ‘‘5 percent’’

will be substituted for ‘‘80 percent’’

each place it appears; 

(4) The person is an officer or director 

of such other person; or 

(5) The person is the employer of such 

other person. 

(C) Tenure rights. The term ‘‘tenure 

rights’’ means rights to harvest timber 

from public land granted by the country 

of export. 

(2) Estimated export charge. (i) Each 

importer must provide the estimated 

export charge, if any, to be collected by 

the country (including any political 

subdivision of the country) from which 

the softwood lumber or softwood 

lumber product was exported pursuant 

to an international agreement entered 

into by that country and the United 

States as calculated by applying the 

percentage determined and published 

by the Under Secretary for International 

Trade of the Department of Commerce 

to the export price. Any applicable 

estimated export charge must be 

expressed in U.S. dollars and reported 

on the entry summary in the designated 

space. 

(ii) For purposes of this paragraph, the 

terms ‘‘estimated export charge’’ or 

‘‘export charge’’ mean any tax, charge, 

or other fee collected by the country 

from which softwood lumber or a 

softwood lumber product, as described 

in section 804(a) within Title VIII of the 

Tariff Act of 1930 (19 U.S.C. 1202 et 

seq.), as amended, is exported pursuant 

to an international agreement entered 

into by that country and the United 

States. 

(3) Importer declaration. (i) Each 

importer, except as provided in 

paragraph (c)(3)(ii) of this section, must 

provide a softwood lumber declaration 

on the electronic entry summary by 

entering the letter code ‘‘Y’’ in the first 

space of the field designated for the 

estimated export charge data. 

(ii) Each importer of softwood lumber 

and softwood lumber products for 

which a Certificate of Origin has been 

issued from Canada’s Maritime Lumber 

Bureau must provide a softwood lumber 

declaration on the paper entry summary 

by entering the letter code ‘‘Y’’ in the 

first space of the field designated for the 

estimated export charge. See 19 CFR 

12.140(c), 

(iii) The letter code ‘‘Y’’ represents the 

importer’s declaration to CBP that: 

(A) The importer has made 

appropriate inquiry, including seeking 

appropriate documentation from the 

exporter and consulting the 

determinations published by the Under 

Secretary for International Trade of the 

Department of Commerce pursuant to 

section 805(b) of Title VIII of the Tariff 

Act of 1930, as amended (19 U.S.C. 1202 

et seq.); and 

(B) To the best of the person’s 

knowledge and belief: 

(1) The export price provided is 

determined in accordance with the 

definition set forth in section 802(5) of 

Title VIII of the Tariff Act of 1930, as 

amended (19 U.S.C. 1202 et seq.); 

(2) The export price provided is 

consistent with the export price 

provided on the export permit, if any, 

granted by the country of export; and 


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Federal Register / Vol. 73, No. 165 / Monday, August 25, 2008 / Rules and Regulations 49939 

(3) The exporter has paid, or 

committed to pay, all export charges 

due in accordance with the volume, 

export price, and export charge rate or 

rates, if any, as calculated under an 

international agreement entered into by 

the country of export and the United 

States and consistent with the export 

charge determinations published by the 

Under Secretary for International Trade 

of the Department of Commerce. 

(iv) Any substantiating 

documentation that supports an 

importer’s softwood lumber declaration 

is subject to the recordkeeping 

provisions set forth in part 163 of title 

19 to the CFR. 

(d) Entry requirements for home 

packages and kits—(1) Declaration and 

required documentation. Home 

packages and kits as described in 

section 804(c)(7)(A)(i) through (iv) of the 

Title VIII of the Tariff Act of 1930, as 

amended (19 U.S.C. 1202 et seq.) are not 

subject to the entry requirements set 

forth in paragraph (c) of this section. 

However, the importer is required to 

make a declaration pursuant to section 

804(c)(7)(B) and is required to retain 

and produce upon demand by CBP, the 

following documentation: 

(i) A copy of the appropriate home 

design, plan, or blueprint matching the 

customs entry in the United States. 

(ii) A purchase contract from a retailer 

of home kits or packages signed by a 

customer not affiliated with the 

importer. 

(iii) A listing of all parts in the 

package or kit being entered into the 

United States that conforms to the home 

design, plan, or blueprint for which 

such parts are being imported. 

(iv) If a single contract involved 

multiple entries, an identification of all 

the items required to be listed under 

paragraph (d)(1)(iii) of this section that 

are included in each individual 

shipment. 

(2) Records and retention. There is no 

requirement to present physical copies 

of the softwood lumber home packages 

and kits documentation to CBP at the 

time of filing the entry summary; 

however copies must be maintained in 

accordance with the applicable 

recordkeeping provisions set forth in 

part 163 of title 19 to the CFR. 

(e) Other softwood lumber entry 

requirements. Other entry requirements 

may be applicable to certain imports of 

softwood lumber or softwood lumber 

from Canada. Importers are advised to 

refer to § 12.140 (19 CFR 12.140) of this 

chapter for information regarding 

applicability and entry requirements. 

PART 163—RECORDKEEPING 

■ 4. 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. 

■ 5. The Appendix to part 163 is 

amended by adding, in numerical order, 

a listing for § 12.142 under section IV to 

read as follows: 

Appendix to Part 163—Interim (a)(1)(A) 

List 

* * * * * 

IV. * * * 

§ 12.142 Softwood Lumber Importer 

Declaration Supporting Documentation, 

Softwood Lumber Home Packages and Kits 

Documentation. 

* * * * * 

W. Ralph Basham, 

Commissioner, U.S. Customs and Border 

Protection. 

Approved: August 20, 2008. 

Timothy E. Skud, 

Deputy Assistant Secretary of the Treasury. 

[FR Doc. E8–19641 Filed 8–22–08; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Bureau of Customs and Border 

Protection 

DEPARTMENT OF THE TREASURY 

19 CFR Part 141 

[Docket No. USCBP–2008–0062] 

RIN 1505–AB96; CBP Dec. 08–31 

First Sale Declaration Requirement 

AGENCIES: Customs and Border 

Protection, Department of Homeland 

Security; Department of the Treasury. 

ACTION: Interim rule; solicitation of 

comments. 

SUMMARY: This document establishes an 

importer declaration requirement 

pursuant to section 15422(a) of the 

Food, Conservation, and Energy Act of 

2008 to assist Customs and Border 

Protection (CBP) in gathering 

information for all goods entered for 

consumption or withdrawn from 

warehouse for consumption on the 

transaction valuation of goods imported 

into the United States. Effective for a 

one-year period beginning August 20, 

2008, all importers will be required to 

provide a declaration to CBP at the time 

of filing a consumption entry when, in 

a series of sequential sales, the 

transaction value of the imported 

merchandise is determined on the basis 

of the ‘‘first or earlier sale’’ of goods—

the first sale in which the goods are 

‘‘sold for exportation to the United 

States’’ or any other sale earlier than the 

last sale prior to the introduction of the 

merchandise into the United States. CBP 

will then report the frequency of the use 

of the ‘‘first sale’’ rule and other 

associated data to the International 

Trade Commission (ITC) on a monthly 

basis. 

DATES: This interim rule is effective on 

August 20, 2008. Comments must be 

received on or before October 24, 2008. 

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–2008–0062. 

• Mail: Trade and Commercial 

Regulations Branch, U.S. Customs and 

Border Protection, 1300 Pennsylvania 

Avenue, 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 also be inspected on 

regular business days between the hours 

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

Commercial Regulations Branch, Office 

of International Trade, Regulations and 

Rulings, 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) 572–8768. 

FOR FURTHER INFORMATION CONTACT: 

Monika Brenner, Valuation and Special 

Programs Branch, Regulations and 

Rulings, Office of International Trade, 

(202) 572–8835. 

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 interim 

rule. Customs and Border Protection 


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