56712 Federal Register / Vol. 73, No. 190 / Tuesday, September 30, 2008 / Rules and Regulations 

$30,000 and the remaining amount 

($720,000) goes to a charity. Under 

paragraph (e) of this section, the 

maximum coverage, as to each joint 

account owner, would be the greater of 

$500,000 or the aggregate amount (as to 

each joint owner) of the interest of each 

different beneficiary named in the trust, 

to a limit of $100,000 per account owner 

per beneficiary. The beneficial interests 

in the trust considered for purposes of 

determining coverage for account owner 

A are: $300,000 for the children (three 

times $100,000), $75,000 for the cousin, 

$15,000 for the friend and $100,000 for 

the charity ($360,000 subject to the 

$100,000 per-beneficiary limitation). As 

to A, the aggregate amount of the 

beneficial interests eligible for deposit 

insurance coverage, thus, is $490,000. 

Hence, the maximum coverage afforded 

to joint account owner A would be 

$500,000, the greater of $500,000 or 

$490,000 (the aggregate of all the 

beneficial interests attributable to A, 

limited to $100,000 per beneficiary). 

The same analysis and coverage 

determination also would apply to B. 

(2) Notwithstanding paragraph (f)(1) 

of this section, where the owners of a 

joint revocable trust account are 

themselves the sole beneficiaries of the 

corresponding trust, the account shall 

be insured as a joint account under 

section 330.9 and shall not be insured 

under the provisions of this section. 

(Example: If A and B establish a 

payable-on-death account naming 

themselves as the sole beneficiaries of 

the account, the account will be insured 

as a joint account because the account 

does not satisfy the intent requirement 

(under paragraph (a) of this section) that 

the funds in the account belong to the 

named beneficiaries upon the owners’ 

death. The beneficiaries are in fact the 

actual owners of the funds during the 

account owners’ lifetimes.) 

(g) For deposit accounts held in 

connection with a living trust that 

provides for a life-estate interest for 

designated beneficiaries, the FDIC shall 

value each such life estate interest as the 

SMDIA for purposes of determining the 

insurance coverage available to the 

account owner. 

(h) Revocable trusts that become 

irrevocable trusts. Notwithstanding the 

provisions in section 330.13 on the 

insurance coverage of irrevocable trust 

accounts, a revocable trust account shall 

continue to be insured under the 

provisions of this section even if the 

corresponding revocable trust, upon the 

death of one or more of the owners 

thereof, converts, in part or entirely, to 

an irrevocable trust. (Example: Assume 

A and B have a trust account in 

connection with a living trust, of which 

they are joint grantors. If upon the death 

of either A or B the trust transforms into 

an irrevocable trust as to the deceased 

grantor’s ownership in the trust, the 

account will continue to be insured 

under the provisions of this section.) 

(i) This section shall be effective as of 

September 26, 2008 for all existing and 

future revocable trust accounts and for 

existing and future irrevocable trust 

accounts resulting from formal 

revocable trust accounts. 

Dated at Washington DC, this 26th day of 

September 2008. 

By order of the Board of Directors. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. E8–23058 Filed 9–26–08; 4:15 pm] 

BILLING CODE 6714–01–P 

FEDERAL HOUSING FINANCE BOARD 

12 CFR Part 906 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Part 1206 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

Office of Federal Housing Enterprise 

Oversight 

12 CFR Part 1701 

RIN 2590–AA00 

Assessments 

AGENCIES: Federal Housing Finance 

Board; Office of Federal Housing 

Enterprise Oversight; Federal Housing 

Finance Agency. 

ACTION: Final rule. 

SUMMARY: The Federal Housing Finance 

Board, Office of Federal Housing 

Enterprise Oversight and Federal 

Housing Finance Agency (FHFA) are 

establishing policy and procedures for 

the FHFA to impose assessments on the 

Federal National Mortgage Association 

(Fannie Mae), Federal Home Loan 

Mortgage Corporation (Freddie Mac), 

and Federal Home Loan Banks (Banks) 

(collectively, Regulated Entities), 

through a final rule, pursuant to 12 

U.S.C. 4516. 

DATES: The final rule will become 

effective on September 30, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Frank Wright, Senior Counsel (OFHEO), 

(202) 414–6439; Mark Kinsey, Chief 

Financial Officer (OFHEO), (202) 414– 

3816; Michele Horowitz, Chief Financial 

Officer (FHFB), (202) 408–2878; Janice 

A. Kaye, Associate General Counsel 

(FHFB), (202) 408–2505 (not toll free 

numbers), Fourth Floor, 1700 G Street, 

NW., Washington DC 20552. The 

telephone number for the 

Telecommunications Device for the Deaf 

is (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On July 30, 2008, the President signed 

the Federal Housing Finance Regulatory 

Reform Act of 2008 (Act) (Pub. L. 110– 

289, 122 Stat. 2564). Among other 

things, the Act transferred the 

supervisory and oversight 

responsibilities over the Banks, Fannie 

Mae, and Freddie Mac to a new 

independent executive branch agency 

known as the Federal Housing Finance 

Agency. To fund the operations of the 

FHFA, the Act amended section 1316 of 

the Federal Housing Enterprises 

Financial Safety and Soundness Act of 

1992 (Safety and Soundness Act), 

codified at 12 U.S.C. 4516. The Act also 

removed the provisions of section 38 of 

the Federal Home Loan Bank Act, which 

were codified at 12 U.S.C. 1438(b), that 

had authorized the Federal Housing 

Finance Board (FHFB) to impose 

assessments on the Banks in an amount 

sufficient to provide for the payment of 

the FHFB’s estimated expenses for the 

period covered by the assessment. This 

final rule will implement the FHFA’s 

authority to establish and collect 

assessments from the Regulated Entities 

and will also remove the regulatory 

provisions that had implemented the 

authority of the Office of Federal 

Housing Enterprise Oversight (OFHEO) 

to assess Fannie Mae and Freddie Mac 

(12 CFR part 1701) and the authority of 

the FHFB to assess the Banks (12 CFR 

906.1–2). 

II. Analysis of the Final Rule 

In accordance with section 1316A of 

the Act, part 1206 of the final rule 

authorizes the FHFA to impose 

assessments on the Regulated Entities to 

pay its estimated costs and expenses. 

See 12 U.S.C. 4516. The rule recognizes 

and addresses the differences between 

the Banks and the Enterprises, where 

appropriate. 

The final rule authorizes the FHFA to 

establish annual assessments for the 

Regulated Entities to provide for the 

payment of the FHFA’s costs and 

expenses and maintain a working 

capital fund. The final rule provides for 

the allocation of the annual assessments 

between the Enterprises and the Banks, 

with the Enterprises paying 

proportional shares sufficient to provide 

for payment of the costs and expenses 


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Federal Register / Vol. 73, No. 190 / Tuesday, September 30, 2008 / Rules and Regulations 56713 

relating to the Enterprises, and the 

Banks paying proportional shares 

sufficient to provide for payment of the 

costs and expenses relating to the 

Banks. The shares paid by the 

Enterprises will be based on the 

proportions of total exposure for the 

Enterprises, and the shares paid by the 

Banks will be based on the proportions 

of their minimum required regulatory 

capital, a measure based on the capital 

that the Banks are required to hold by 

their regulator, rather than a measure of 

actual capital held. Under this rule, 

each Regulated Entity must pay an 

amount equal to one-half of its annual 

assessment twice each year. This 

represents a significant change to the 

assessment procedure of the FHFB, 

under which the FHFB made an 

assessment annually and the Banks 

made payments in monthly 

installments. 

This final rule also establishes the 

procedure for the FHFA to increase or 

adjust the amount of the semiannual 

payment for a Regulated Entity or to 

make additional assessments for a 

Regulated Entity, under certain 

circumstances. 

This final rule also implements 

another significant change in 

establishing the procedures for 

collecting funds for a working capital 

fund for the FHFA, under which the 

FHFA shall collect those assessments 

deemed necessary to establish an 

operating reserve that is intended to 

provide for the payment of large or 

multiyear capital and operating 

expenditures, as well as unanticipated 

expenses. 

The final rule also implements notice 

and review provisions for the FHFA 

under which the FHFA will provide to 

each Regulated Entity written notice of 

the projected budget for the FHFA for 

the upcoming year, and the assessments 

and semiannual payments to be 

collected under this rule. 

Notice and Public Participation 

The notice and comment procedure 

required by the Administrative 

Procedure Act is inapplicable to this 

final rule because it is a rule of agency 

procedure. See 5 U.S.C. 553(b)(3)(A). 

Paperwork Reduction Act 

The regulation does not contain any 

information collection requirement that 

requires the approval of the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

3501 et seq.). 

Regulatory Flexibility Act 

Because the FHFA is promulgating 

part 1206 in the form of a final rule and 

not as a proposed rule, the provisions of 

the Regulatory Flexibility Act do not 

apply. See 5 U.S.C. 601(2), 603(a). 

List of Subjects 

12 CFR Part 906 

Assessments, Federal home loan 

banks, Government contracts, Minority 

businesses, Mortgages, Reporting and 

recordkeeping requirements, Women 

and minority businesses. 

12 CFR Part 1206 

Assessments, Federal home loan 

banks, Government Sponsored 

Enterprises, Reporting and 

recordkeeping requirements. 

12 CFR Part 1701 

Government Sponsored Enterprises, 

Reporting and recordkeeping 

requirements. 

Authority and Issuance 

■ Accordingly, for the reasons stated in 

the preamble, the Federal Housing 

Finance Agency hereby amends 

chapters IX, XII, and XVII of Title 12, 

Code of Federal Regulations as follows: 

Chapter IX—Federal Housing Finance 

Board 

PART 906—OPERATIONS 

■ 1. The authority citation for part 906 

is revised to read as follows: 

Authority: 12 U.S.C. 4516. 

Subpart A—[Removed] 

■ 2. Remove and reserve subpart A, 

consisting of §§ 906.1 through 906.2. 

Chapter XII—Federal Housing Finance 

Agency 

■ 3. Add Subchapter A, consisting of 

part 1206 to read as follows: 

Subchapter A—Organization and 

Operations 

PART 1206—ASSESSMENTS 

Sec. 

1206.1 Purpose. 

1206.2 Definitions. 

1206.3 Annual assessments. 

1206.4 Increased costs of regulation. 

1206.5 Working capital fund. 

1206.6 Notice and review. 

1206.7 Delinquent payment. 

1206.8 Enforcement of payment. 

Authority: 12 U.S.C. 4516. 

§ 1206.1 Purpose. 

This part sets forth the policy and 

procedures of the FHFA with respect to 

the establishment and collection of the 

assessments of the Regulated Entities 

under 12 U.S.C. 4516. 

§ 1206.2 Definitions. 

As used in this part: 

Act means the Federal Housing 

Finance Regulatory Reform Act of 2008. 

Adequately capitalized means the 

adequately capitalized capital 

classification under 12 U.S.C. 1364 and 

related regulations. 

Director means the Director of the 

Federal Housing Finance Agency or his 

or her designee. 

Enterprise means the Federal National 

Mortgage Association or the Federal 

Home Loan Mortgage Corporation; and 

‘‘Enterprises’’ means, collectively, the 

Federal National Mortgage Association 

and the Federal Home Loan Mortgage 

Corporation. 

Federal Home Loan Bank, or Bank, 

means a Federal Home Loan Bank 

established under section 12 of the 

Federal Home Loan Bank Act (12 U.S.C. 

1432). 

FHFA means the Federal Housing 

Finance Agency. 

Minimum required regulatory capital 

means the highest amount of capital 

necessary for a Bank to comply with any 

of the capital requirements established 

by the Director and applicable to it. 

Regulated Entity means the Federal 

National Mortgage Association, the 

Federal Home Loan Mortgage 

Corporation, or any of the Federal Home 

Loan Banks. 

Surplus funds means any amounts 

that are not obligated as of September 30 

of the fiscal year for which the 

assessment was made. 

Total exposure means the sum, as of 

the most recent June quarterly minimum 

capital report of the Enterprise, of the 

amounts of the following assets and offbalance sheet obligations that are used 

to calculate the quarterly minimum 

capital requirement of the Enterprise 

under 12 CFR part 1750: 

(1) On-balance sheet assets; 

(2) Guaranteed mortgage-backed 

securities; and 

(3) Other off-balance sheet obligations 

as determined by the Director. 

Working capital fund means an 

account for amounts collected from the 

Regulated Entities to establish an 

operating reserve that is intended to 

provide for the payment of large or 

multiyear capital and operating 

expenditures, as well as unanticipated 

expenses. 

§ 1206.3 Annual assessments. 

(a) Establishing assessments. The 

Director shall establish annual 

assessments on the Regulated Entities in 

an amount sufficient to maintain a 

working capital fund and provide for 

the payment of the FHFA’s costs and 

expenses, including, but not limited to: 


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(1) Expenses of any examinations 

under 12 U.S.C. 4517 and section 20 of 

the Federal Home Loan Bank Act (12 

U.S.C. 1440); 

(2) Expenses of obtaining any reviews 

and credit assessments under 12 U.S.C. 

4519; 

(3) Expenses of any enforcement 

activities under 12 U.S.C. 3645; 

(4) Expenses of other FHFA litigation 

under 12 U.S.C. 4513; 

(5) Expenses relating to the 

maintenance of the FHFA records 

relating to examinations and other 

reviews of the Regulated Entities; 

(6) Such amounts in excess of actual 

expenses for any given year deemed 

necessary to maintain a working capital 

fund; 

(7) Expenses relating to monitoring 

and ensuring compliance with housing 

goals; 

(8) Expenses relating to conducting 

reviews of new products; 

(9) Expenses related to affordable 

housing and community programs; 

(10) Other administrative expenses of 

the FHFA; 

(11) Expenses related to preparing 

reports and studies; 

(12) Expenses relating to the 

collection of data and development of 

systems to calculate the House Price 

Index (HPI) and the conforming loan 

limit; 

(13) Amounts deemed necessary by 

the Director to wind up the affairs of the 

Office of Federal Housing Enterprise 

Oversight and the Federal Housing 

Finance Board; and 

(14) Expenses relating to other 

responsibilities of the FHFA under the 

Safety and Soundness Act, the Federal 

Home Loan Bank Act and the Act. 

(b) Allocating assessments. The 

Director shall allocate the annual 

assessments as follows: 

(1) Enterprises. Assessments collected 

from the Enterprises shall not exceed 

amounts sufficient to provide for 

payment of the costs and expenses 

relating to the Enterprises as determined 

by the Director. Each Enterprise shall 

pay a proportional share that bears the 

same ratio to the total portion of the 

annual assessment allocated to the 

Enterprises that the total exposure of 

each Enterprise bears to the total 

exposure of both Enterprises. 

(2) Federal Home Loan Banks. 

Assessments collected from the Banks 

shall not exceed amounts sufficient to 

provide for payment of the costs and 

expenses relating to the Banks as 

determined by the Director. Each Bank 

shall pay a pro rata share of the annual 

assessments based on the ratio between 

its minimum required regulatory capital 

and the aggregate minimum required 

regulatory capital of every Bank. 

(c) Timing and amount of semiannual 

payment. Each Regulated Entity shall 

pay on or before October 1 and April 1 

an amount equal to one-half of its 

annual assessment. 

(d) Surplus funds. Surplus funds shall 

be credited to the annual assessment by 

reducing the amount collected in the 

following semiannual period by the 

amount of the surplus funds. Surplus 

funds shall be allocated to all Regulated 

Entities in the same proportion in which 

they were collected, except as 

determined by the Director. 

§ 1206.4 Increased costs of regulation. 

(a) Increase for inadequate 

capitalization. The Director may, at his 

or her discretion, increase the amount of 

a semiannual payment allocated to a 

Regulated Entity that is not classified as 

adequately capitalized to pay additional 

estimated costs of regulation of that 

Regulated Entity. 

(b) Increase for enforcement activities. 

The Director may, at his or her 

discretion, adjust the amount of a 

semiannual payment allocated to a 

Regulated Entity to ensure that the 

Regulated Entity bears the estimated 

costs of enforcement activities under the 

Act related to that Regulated Entity. 

(c) Additional assessment for 

deficiencies. At any time, the Director 

may make and collect from any 

Regulated Entity an assessment, payable 

immediately or through increased 

semiannual payments, to cover the 

estimated amount of any deficiency for 

the semiannual period as a result of 

increased costs of regulation of a 

Regulated Entity due to its classification 

as other than adequately capitalized, or 

as a result of enforcement activities 

related to that Regulated Entity. Any 

amount remaining from such additional 

assessment and the semiannual 

payments at the end of any semiannual 

period during which such an additional 

assessment is made shall be deducted 

pro rata (based upon the amount of the 

additional assessments) from the 

assessment for the following semiannual 

period for that Regulated Entity. 

§ 1206.5 Working capital fund. 

(a) Assessments. The Director shall 

establish and collect from the Regulated 

Entities such assessments he or she 

deems necessary to maintain a working 

capital fund. 

(b) Purposes. Assessments collected to 

maintain the working capital fund shall 

be used to establish an operating reserve 

and to provide for the payment of large 

or multiyear capital and operating 

expenditures as well as unanticipated 

expenses. 

(c) Remittance of excess assessed 

funds. At the end of each year for which 

an assessment under this section is 

made, the Director shall remit to each 

Regulated Entity any amount of assessed 

and collected funds in excess of the 

amount the Director deems necessary to 

maintain a working capital fund in the 

same proportions as paid under the 

most recent annual assessment. 

§ 1206.6 Notice and review. 

(a) Written notice of budget. The 

Director shall provide to each Regulated 

Entity written notice of the projected 

budget for the Agency for the upcoming 

fiscal year. Such notice shall be 

provided at least 30 days before the 

beginning of the applicable fiscal year. 

(b) Written notice of assessments. The 

Director shall provide each Regulated 

Entity with written notice of 

assessments as follows: 

(1) Annual assessments. The Director 

shall provide each Regulated Entity 

with written notice of the annual 

assessment and the semiannual 

payments to be collected under this 

part. Notice of the annual assessment 

and semiannual payments shall be 

provided before the start of the new 

fiscal year. 

(2) Immediate assessments. The 

Director shall provide each Regulated 

Entity with written notice of any 

immediate assessments to be collected 

under § 1206.4 of this chapter. Notice of 

any immediate assessment and the 

required payments shall be provided at 

such reasonable time as determined by 

the Director. 

(3) Changes to assessments. The 

Director shall provide each Regulated 

Entity with written notice of any 

changes in the assessment procedures 

that the Director, in his or her sole 

discretion, deems necessary under the 

circumstances. 

(c) Request for review. At the written 

request of a Regulated Entity, the 

Director, in his or her discretion, may 

review the calculation of the 

proportional share of the annual 

assessment, the semiannual payments, 

and any partial payments to be collected 

under this part. The determination of 

the Director upon such review is final. 

Except as provided by the Director, 

review by the Director does not suspend 

the requirement that the Regulated 

Entity make the semiannual payment or 

partial payment on or before the date it 

is due. Any adjustments determined 

appropriate shall be credited or 

otherwise addressed by the following 

year’s assessment for that entity. 


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Federal Register / Vol. 73, No. 190 / Tuesday, September 30, 2008 / Rules and Regulations 56715 

§ 1206.7 Delinquent payment. 

The Director may assess interest and 

penalties on any delinquent semiannual 

payment or other payment assessed 

under this part in accordance with 31 

U.S.C. 3717 (interest and penalty on 

claims) and part 1704 of this title (debt 

collection). 

§ 1206.8 Enforcement of payment. 

The Director may enforce the payment 

of any assessment under 12 U.S.C. 4631 

(cease-and-desist proceedings), 12 

U.S.C. 4632 (temporary cease-and-desist 

orders), and 12 U.S.C. 4626 (civil money 

penalties). 

Chapter XVII—Office of Federal Housing 

Enterprise Oversight, Department of 

Housing and Urban Development 

PART 1701—[REMOVED] 

■ 4. Remove part 1701. 

Dated: September 25, 2008. 

James B. Lockhart III, 

Director, Federal Housing Finance Agency. 

[FR Doc. E8–23046 Filed 9–26–08; 4:15 pm] 

BILLING CODE 4220–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Bureau of Customs and Border 

Protection 

DEPARTMENT OF THE TREASURY 

19 CFR Parts 10, 163, and 178 

[Docket No. USCBP–2007–0062; CBP Dec. 

08–24] 

RIN 1505–AB82 

Haitian Hemispheric Opportunity 

Through Partnership Encouragement 

Acts of 2006 and 2008 

AGENCIES: Customs and Border 

Protection, Department of Homeland 

Security; Department of the Treasury. 

ACTION: Final rule. 

SUMMARY: This document adopts as a 

final rule, with some changes, interim 

amendments to title 19 of the Code of 

Federal Regulations which were 

published in the Federal Register on 

June 22, 2007, as CBP Dec. 07–43 to 

implement the duty-free provisions of 

the Haitian Hemispheric Opportunity 

through Partnership Encouragement 

(‘‘HOPE I’’) Act of 2006. The regulatory 

amendments adopted as a final rule in 

this document include changes 

necessitated by enactment of the Haitian 

Hemispheric Opportunity through 

Partnership Encouragement (‘‘HOPE II’’) 

Act of 2008. 

DATES: This final rule is effective on 

September 30, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Textile Operational Aspects: Robert 

Abels, Office of International Trade, 

(202) 863–6503. 

Other Operational Aspects: Heather 

Sykes, Office of International Trade, 

(202) 863–6099. 

Legal Aspects: Cynthia Reese, Office 

of International Trade, (202) 572–8812, 

or Craig Walker, Office of International 

Trade, (202) 572–8836. 

SUPPLEMENTARY INFORMATION: 

Background 

On June 22, 2007, interim regulations 

were promulgated to implement the 

duty-free provisions of the Haitian 

Hemispheric Opportunity through 

Partnership Encouragement (‘‘HOPE I’’) 

Act of 2006. The regulatory 

amendments adopted as a final rule in 

this document include changes 

necessitated by the June 18, 2008 

enactment of the Haitian Hemispheric 

Opportunity through Partnership 

Encouragement (‘‘HOPE II’’) Act of 

2008. Detailed information on both the 

HOPE I and HOPE II Acts follows. 

Haitian Hemispheric Opportunity 

Through Partnership Encouragement 

Act of 2006 

On December 20, 2006, the President 

signed into law the Tax Relief and 

Health Care Act of 2006 (‘‘the 2006 

Act’’), Public Law 109–432, 120 Stat. 

2922. Title V of the Act concerns the 

extension of certain trade benefits to 

Haiti and is referred to in the Act as the 

‘‘Haitian Hemispheric Opportunity 

through Partnership Encouragement Act 

of 2006’’ (‘‘HOPE I Act’’). 

Section 5002 of the Act amended the 

Caribbean Basin Economic Recovery Act 

(the CBERA, also referred to as the 

Caribbean Basin Initiative, or CBI, 

statute codified at 19 U.S.C. 2701–2707) 

by adding a new section 213A, entitled 

‘‘Special Rules for Haiti’’ and codified at 

19 U.S.C. 2703A, to authorize the 

President to extend additional trade 

benefits to Haiti for a five-year period 

(ending on December 19, 2011) if the 

President determines that the country 

meets certain specified eligibility 

conditions and requirements. As created 

by the HOPE I Act, section 213A of the 

CBERA consisted of six principal 

subsections, each of which is 

summarized below. 

Subsection (a) of section 213A of the 

CBERA set forth definitions of several 

terms used in section 213A. Subsection 

(b) of section 213A specified the 

conditions and requirements that must 

be met for certain apparel articles from 

Haiti to receive duty-free treatment. 

Subsection (c) of section 213A of the 

CBERA provided for the duty-free 

treatment of any article classifiable in 

subheading 8544.30.00 of the 

Harmonized Tariff Schedule of the 

United States (HTSUS) (wiring sets), as 

in effect on December 20, 2006, that is 

the product or manufacture of Haiti and 

is imported directly from Haiti into the 

customs territory of the United States, 

provided a specified value-content 

requirement is met. 

Subsection (d) of section 213A set 

forth certain eligibility requirements 

that Haiti must meet as a prerequisite 

for articles to receive duty-free 

treatment under this section. This 

subsection required that the President 

determine whether Haiti met these 

requirements within 90 days after the 

date of enactment of the HOPE Act (or 

by March 20, 2007). 

Subsection (e) of section 213A 

(redesignated as subsection (f) by HOPE 

II Act) provided that preferential tariff 

treatment for apparel articles under this 

section shall not apply unless the 

President certifies to Congress that Haiti 

is meeting certain conditions, such as 

the adoption of an effective visa system, 

that are primarily intended to avoid 

illegal transshipment situations. 

Subsection (f) of section 213A 

(redesignated as subsection (g) by HOPE 

II Act) provided that the President shall 

issue regulations to carry out this 

section not later than 180 days after the 

date of enactment of the HOPE Act. 

Section 213A(f) further provided that 

the President shall consult with the 

Committee on Ways and Means of the 

House of Representatives and the 

Committee on Finance of the Senate in 

preparing such regulations. CBP 

consulted with the Committee on Ways 

and Means and the Committee on 

Finance regarding the implementing 

interim regulations. 

For a more detailed description of the 

statutory provisions set forth in the 

HOPE I Act, please see CBP Dec. 07–43. 

On March 19, 2007, the President 

signed Proclamation 8114 to implement 

the provisions of the HOPE I Act, among 

other purposes. The Proclamation, 

which was published in the Federal 

Register on March 22, 2007 (72 FR 

13655), included determinations by the 

President that Haiti (1) meets the 

eligibility requirements set forth in 

section 213A(d) of the CBERA and (2) is 

meeting the conditions set forth in 

section 213A(e) (redesignated as section 

213A(f) by HOPE II). The Proclamation 

also modified subchapter XX of Chapter 

98 of the Harmonized Tariff Schedule of 

the United States (‘‘HTSUS’’) as set forth 

in Annex 1 to the Proclamation. The 


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