Federal Register / Vol. 66, No. 28 / Friday, February 9, 2001 / Rules and Regulations 9643

§ 94.1 [Amended]

2. In § 94.1, paragraph (a)(2) is

amended by removing the words

‘‘Republic of South Africa except the

province of KwaZulu-Natal and except

the foot-and-mouth disease controlled

area (which extends from the Republic

of South Africa’s border with

Mozambique approximately 30 to 90

kilometers into the Republic of South

Africa to include Kruger National Park

and surveillance and control zones

around the park, and elsewhere extends,

from east to west, approximately 10 to

20 kilometers into the Republic of South

Africa along its borders with

Mozambique, Swaziland, Zimbabwe,

Botswana, and the southeast part of the

border with Namibia),’’.

§ 94.11 [Amended]

3. In § 94.11, paragraph (a) is

amended by removing the words

‘‘Republic of South Africa except the

province of KwaZulu-Natal and except

the foot-and-mouth disease controlled

area (which extends from the Republic

of South Africa’s border with

Mozambique approximately 30 to 90

kilometers into the Republic of South

Africa to include Kruger National Park

and surveillance and control zones

around the park, and elsewhere extends,

from east to west, approximately 10 to

20 kilometers into the Republic of South

Africa along its borders with

Mozambique, Swaziland, Zimbabwe,

Botswana, and the southeast part of the

border with Namibia),’’.

Done in Washington, DC, this 18th day of

January 2001.

Bobby R. Acord,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 01–2166 Filed 2–8–01; 8:45 am]

BILLING CODE 3410–34–U

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 163 and 178

[T.D. 01–17]

RIN 1515–AC78

Duty-Free Treatment for Certain

Beverages Made With Caribbean Rum

AGENCY: Customs Service, Department

of the Treasury.

ACTION: Interim rule; solicitation of

comments.

SUMMARY: This document amends the

Customs Regulations, on an interim

basis, in order to implement a change

made by the Trade and Development

Act of 2000 to the Caribbean Basin

Economic Recovery Act, also known as

the Caribbean Basin Initiative (CBI), that

enables certain liqueurs and spirituous

beverages to obtain duty-free entry

under specified conditions when the

beverages are processed in the territory

of Canada from rum that is the growth,

product or manufacture either of a CBI

beneficiary country or of the U.S. Virgin

Islands. The interim regulations set

forth the certification and supporting

documentation requirements that are

necessary to establish compliance with

the statutory law, thereby ensuring that

the rum beverages are properly entitled

to duty-free entry under the CBI.

DATES: Interim rule effective on

February 9, 2001. This interim rule is

effective for all products entered or

withdrawn from warehouse for

consumption on or after February 9,

2001. Comments must be received on or

before April 10, 2001.

ADDRESSES: Written comments may be

addressed to and inspected at the

Regulations Branch, U.S. Customs

Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT:

Leon Hayward, Office of Field

Operations, (202–927–9704).

SUPPLEMENTARY INFORMATION:

Background

The Caribbean Basin Economic

Recovery Act (19 U.S.C. 2701–2707)

(CBERA) establishes an economic

recovery program for nations of the

Caribbean and Central America. Under

the CBERA, also referred to as the

Caribbean Basin Initiative (CBI), the

President is authorized to proclaim

duty-free treatment for all eligible

articles of a beneficiary country (19

U.S.C. 2701).

A beneficiary country under the CBI

refers to any country listed in 19 U.S.C.

2702(b) with respect to which there is

in effect a proclamation by the President

designating the country as a beneficiary

country for purposes of the CBI (19

U.S.C. 2702(a)(1)(A)). A rule of origin

specifies under what conditions an

article will be considered to be a

product of a beneficiary country—in

brief, the article must be wholly the

growth, product or manufacture of a

beneficiary country, or must be a new or

different article of commerce that has

been grown, produced, or manufactured

in the beneficiary country (19 U.S.C.

2703(a)).

Sections 10.191 through 10.198b of

the Customs Regulations (19 CFR

10.191–10.198b) currently implement

the duty-free aspects of the CBI.

In pertinent part, in order to be

entitled to duty-free treatment under the

CBI, an article otherwise eligible for

such treatment must be imported

directly from a beneficiary country into

the customs territory of the United

States (19 U.S.C. 2703(a)(1)(A); 19 CFR

10.193).

Accordingly, in the case of rum

produced in a beneficiary country and

then imported into Canada for

processing into a rum beverage, the

beverage would not be eligible for dutyfree treatment under the CBI because it

is not imported directly from a

beneficiary country into the United

States. At the same time, the beverage

would also be ineligible for duty-free

treatment under the North American

Free Trade Agreement Implementation

Act (19 U.S.C. 3301 et seq.) (NAFTA)

because the processing it undergoes in

Canada would not be sufficient to

qualify it as a NAFTA originating good

(19 U.S.C. 3332; General Note 12,

Harmonized Tariff Schedule of the

United States (HTSUS); 19 CFR 181.131;

and the appendix to 19 CFR part 181).

Beverages Made in Canada With

Caribbean Rum; Amendment of CBERA

by Trade and Development Act of 2000

To address the foregoing

circumstances, the Caribbean Basin

Economic Recovery Act has now been

further amended by section 212 of the

Trade and Development Act of 2000

(Pub. L. 106–200, 114 Stat. 251, enacted

on May 18, 2000) (Act). Section 212 of

this Act adds a new paragraph (a)(6) to

section 213(a) of the CBERA (19 U.S.C.

2703(a)(6)), in order to provide for dutyfree entry under certain conditions for

liqueurs and spirituous beverages that

are produced in the territory of Canada

from rum that is the growth, product, or

manufacture either of a beneficiary

country under the CBI or of the U.S.

Virgin Islands.

Specifically, under 19 U.S.C.

2703(a)(6), a liqueur or spirituous

beverage that is imported directly into

the Customs territory of the United

States from the territory of Canada and

that is classifiable under subheading

2208.90 or 2208.40, Harmonized Tariff

Schedule of the United States (HTSUS),

will be entitled to duty-free entry under

the CBERA if such liqueur or beverage

is produced in the territory of Canada

from rum, provided that the rum: (1) Is

the growth, product, or manufacture of

a beneficiary country or of the U.S.

Virgin Islands; (2) is imported directly

into the territory of Canada from a

beneficiary country or from the U.S.

Virgin Islands; and (3) accounts for at

least 90 percent by volume of the

9644 Federal Register / Vol. 66, No. 28 / Friday, February 9, 2001 / Rules and Regulations

alcoholic content of the liqueur or

spirituous beverage.

In order to implement the provision

allowing for duty-free admission for

liqueurs and spirituous beverages

produced in the territory of Canada from

Caribbean rum, Customs is issuing an

interim regulation (§ 10.199) which

prescribes the certification and

supporting documentary requirements

and recordkeeping responsibilities that

must be observed in order to afford

duty-free admission for those beverages

that properly qualify for such treatment,

and to otherwise ensure compliance

with the requirements of the statutory

law.

In this latter regard, the importer must

be prepared to submit to the port

director, if requested, documentary

evidence that the liqueurs or rum

beverages were imported into the U.S.

directly from the territory of Canada.

This evidence may include documents

such as a bill of lading, invoice, air

waybill, freight waybill, or cargo

manifest. Likewise, the port director

may require that the importer submit

documentary evidence that the rum

used in producing the liqueurs or

spirituous beverages was imported

directly into the territory of Canada

from a beneficiary country or from the

U.S. Virgin Islands. This evidence may

include documents such as a Canadian

customs entry, Canadian customs

invoice, Canadian customs manifest,

cargo manifest, bill of lading, landing

certificate, airway bill, or freight

waybill. In either case, any evidence of

direct shipment, as described, may be

subject to such verification as deemed

necessary by the port director.

In addition, the importer must be

ready to present directly to the port

director, if requested, a declaration

prepared by the producer or

manufacturer of the rum in the

beneficiary country (or in the U.S.

Virgin Islands, if applicable) that attests

to the specific origin of the rum. Any

records, including production records,

supporting the declaration must

likewise be available for submission to

the port director, and the declaration

and supporting records may be subject

to any verification believed necessary by

the port director.

Moreover, the importer must be

prepared to submit directly to the port

director, if requested, a declaration

prepared by the Canadian processor

who produced the liqueur(s) or

spirituous beverage(s) for which dutyfree entry is claimed under section

213(a)(6) of the Caribbean Basin

Economic Recovery Act (19 U.S.C.

2703(a)(6)). The declaration must affirm,

among other things, that the processor

received the rum from the exporter or

owner in the CBI beneficiary country or

the U.S. Virgin Islands, as applicable;

and that the processor used the rum in

producing the liqueurs or other

spirituous beverages. Production

records, for each lot of liqueur/beverage

produced, must establish the quantity of

rum qualifying under 19 U.S.C.

2703(a)(6) that is used in producing the

liqueur/beverage (non-qualifying rum

may not be substituted for use in

producing the liqueurs or beverages);

the alcoholic content by volume of the

finished liqueur/beverage; and the

specific alcoholic content by volume of

the processed liqueur/beverage that is

attributable to the qualifying rum.

The importer must be prepared to

submit to the port director, if requested,

the declaration and/or the underlying

documentation, including any

supporting documents and records,

necessary for the preparation of the

declaration, for a period of 5 years from

the date of entry of the related liqueurs

or spirituous beverages, as provided in

§ 163.4(a), Customs Regulations (19 CFR

163.4(a)). If requested during this time,

the importer must submit to the port

director the declaration and/or any

underlying documentation within 60

calendar days of the date of the request

or any additional period as the port

director may allow for good cause

shown. The declaration and related

documentation may be subject to such

verification as the port director deems

necessary.

Also, the foregoing time periods apply

to the retention and submission of

documentary evidence concerning the

origin of the rum, its direct shipment

into the territory of Canada and the

direct shipment of the corresponding

finished liqueurs and spirituous

beverages from Canada into the United

States.

Furthermore, the importer must

establish and implement a system of

internal controls which demonstrate

that reasonable care was exercised in

the claim for duty-free treatment under

the CBI. These controls should include

tests to assure the accuracy and

availability of records that evidence: the

origin of the rum; the direct shipment of

the rum from a beneficiary country or

from the U.S. Virgin Islands to Canada;

the alcohol content of the finished

liqueur/beverage imported from Canada;

and the direct shipment of the finished

liqueur/beverage from Canada to the

United States.

Comments

Before adopting this interim

regulation as a final rule, consideration

will be given to any written comments

that are timely submitted to Customs.

Customs specifically requests comments

on the clarity of this interim rule and

how it may be made easier to

understand. Comments submitted will

be available for public inspection in

accordance with the Freedom of

Information Act (5 U.S.C. 552), § 1.4,

Treasury Department Regulations (31

CFR 1.4), and § 103.11(b), Customs

Regulations (19 CFR 103.11(b)), on

regular business days between the hours

of 9:00 a.m. and 4:30 p.m. at the

Regulations Branch, U.S. Customs

Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, DC.

Inapplicability of Notice and Delayed

Effective Date Requirements, the

Regulatory Flexibility Act, and

Executive Order 12866

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

553(b)(B), Customs has determined that

good cause exists for dispensing with

prior public notice and comment

procedures on these interim regulations.

The interim regulations afford a

preferential tariff benefit to the

importing public; they reflect, and

provide a necessary and reasonable

means for enforcing, statutory

requirements that are already in effect;

and they closely parallel existing

regulatory provisions that implement

similar trade preference programs. Also,

for these same reasons, there is no need

for a delayed effective date under 5

U.S.C. 553(d). Because no notice of

proposed rulemaking is required for

interim regulations, the provisions of

the Regulatory Flexibility Act (5 U.S.C.

601 et seq.) do not apply. Nor does this

document meet the criteria for a

‘‘significant regulatory action’’ as

specified in E.O. 12866.

Paperwork Reduction Act

The collection of information

involved in this interim rule has already

been approved by the Office of

Management and Budget (OMB) in

accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507)

and assigned OMB Control Number

1515–0194 (Documentation

requirements for articles entered under

various special tariff treatment

provisions). This collection includes a

claim for duty-free entry of eligible

articles under the Caribbean Basin

Initiative. This rule does not present any

substantive changes to the existing

approved information collection. An

agency may not conduct or sponsor, and

a person is not required to respond to,

a collection of information unless the

collection of information displays a

valid control number assigned by OMB.

Federal Register / Vol. 66, No. 28 / Friday, February 9, 2001 / Rules and Regulations 9645

Part 178, Customs Regulations (19

CFR part 178), containing the list of

approved information collections, is

revised to make reference to new

§ 10.199.

List of Subjects

19 CFR PART 10

Customs duties and inspection,

Exports, Foreign relations, Imports,

International traffic, Preference

programs, Reporting and recordkeeping

requirements, Shipments, Trade

agreements (Caribbean Basin Initiative,

Generalized System of Preferences, U.S.-

Canada Free Trade Agreement, etc.).

19 CFR PART 163

Administrative practice and

procedure, Customs duties and

inspection, Imports, Reporting and

recordkeeping requirements.

19 CFR PART 178

Administrative practice and

procedure, Collections of information,

Imports, Paperwork requirements,

Reporting and recordkeeping

requirements.

Amendments to the Regulations

Accordingly, parts 10, 163 and 178,

Customs Regulations (19 CFR parts 10,

163 and 178), are amended as set forth

below.

PART 10—ARTICLES CONDITIONALLY

FREE, SUBJECT TO A REDUCED

RATE, ETC.

1. The general authority for part 10 is

revised to read as follows, and the

specific sectional authority for part 10 is

amended by removing the sectional

authority citation, ‘‘sections 10.191

through 10.198b also issued under 19

U.S.C. 2701 et seq.’’, and by adding a

new sectional authority citation in its

place to read as follows:

Authority: 19 U.S.C. 66, 1202 (General

Note 22, Harmonized Tariff Schedule of the

United States (HTSUS)), 1321, 1481, 1484,

1498, 1508, 1623, 1624, 3314.

* * * * *

Sections 10.191 through 10.199 also

issued under 19 U.S.C. 2701 et seq.;

* * * * *

2. In § 10.191:

a. Paragraph (b)(1) is amended by

removing the reference ‘‘§ 10.198b’’ and

by adding, in its place, the reference

‘‘§ 10.199’’;

b. Paragraph (b)(3) is amended by

removing the reference ‘‘§ 10.198a’’ and

by adding, in its place, the reference

‘‘§ 10.199’’; and

c. Paragraph (b)(4) is amended by

removing the reference ‘‘§ 10.198b’’ and

by adding, in its place, the reference

‘‘§ 10.199’’.

3. Part 10 is amended by adding a

new § 10.199 under the heading entitled

‘‘CARIBBEAN BASIN INITIATIVE’’ to

read as follows:

§ 10. 199 Duty-free entry for certain

beverages produced in Canada from

Caribbean rum.

(a) General. A liqueur or other

spirituous beverage that is imported

directly from the territory of Canada and

that is classifiable under subheading

2208.40 or 2208.90, Harmonized Tariff

Schedule of the United States (HTSUS),

will be entitled, upon entry or

withdrawal from warehouse for

consumption, to duty-free treatment

under section 213(a)(6) of the Caribbean

Basin Economic Recovery Act (19 U.S.C.

2703(a)(6)), also known as the Caribbean

Basin Initiative (CBI), if the liqueur or

spirituous beverage has been produced

in the territory of Canada from rum,

provided that the rum:

(1) Is the growth, product, or

manufacture either of a beneficiary

country or of the U.S. Virgin Islands;

(2) Was imported directly into the

territory of Canada from a beneficiary

country or from the U.S. Virgin Islands;

and

(3) Accounts for at least 90 percent of

the alcoholic content by volume of the

liqueur or spirituous beverage.

(b) Claim for exemption from duty

under CBI. A claim for an exemption

from duty for a liqueur or spirituous

beverage under section 213(a)(6) of the

Caribbean Basin Economic Recovery Act

(19 U.S.C. 2703(a)(6)) may be made by

entering such liqueur or beverage under

subheading 9817.22.05, HTSUS, on the

entry summary document or its

electronic equivalent. In order to claim

the exemption, the importer must have

the records described in paragraphs (d),

(e), (f) and (g) of this section so that,

upon Customs request, the importer can

establish that:

(1) The rum used to produce the

liqueur/beverage is the growth, product

or manufacture either of a beneficiary

country or of the U.S. Virgin Islands;

(2) The rum was shipped directly

from a beneficiary country or from the

U.S. Virgin Islands to Canada;

(3) The liqueur/beverage was

produced in Canada;

(4) The rum accounts for at least 90%

of the alcohol content of the liqueur/

beverage; and

(5) The liqueur/beverage was shipped

directly from Canada to the United

States.

(c) Imported directly. For liqueur or

other spirituous beverage imported from

Canada to qualify for duty-free entry

under the CBI, the liqueur or spirituous

beverage must be imported directly into

the customs territory of the United

States from Canada; and the rum used

in its production must have been

imported directly into the territory of

Canada either from a beneficiary

country or from the U.S. Virgin Islands.

(1) ‘‘Imported directly’’ into the

customs territory of the United States

from Canada means:

(i) Direct shipment from the territory

of Canada to the U.S. without passing

through the territory of any other

country; or

(ii) If the shipment is from the

territory of Canada to the U.S. through

the territory of any other country, the

liqueurs and spirituous beverages do not

enter into the commerce of any other

country while en route to the U.S.; or

(iii) If the shipment is from the

territory of Canada to the U.S. through

the territory of another country, and the

invoices and other documents do not

show the U.S. as the final destination,

the liqueurs and spirituous beverages in

the shipment are imported directly only

if they:

(A) Remained under the control of the

customs authority of the intermediate

country;

(B) Did not enter into the commerce

of the intermediate country except for

the purpose of sale other than at retail,

and the port director is satisfied that the

importation results from the original

commercial transaction between the

importer and the producer or the latter’s

sales agent; and

(C) Were not subjected to operations

other than loading and unloading, and

other activities necessary to preserve the

products in good condition.

(2) ‘‘Imported directly’’ from a

beneficiary country or from the U.S.

Virgin Islands into the territory of

Canada means:

(i) Direct shipment from a beneficiary

country or from the U.S. Virgin Islands

into the territory of Canada without

passing through the territory of any nonbeneficiary country; or

(ii) If the shipment is from a

beneficiary country or from the U.S.

Virgin Islands into the territory of

Canada through the territory of any nonbeneficiary country, the rum does not

enter into the commerce of any nonbeneficiary country while en route to

Canada; or

(iii) If the shipment is from a

beneficiary country or from the U.S.

Virgin Islands into the territory of

Canada through the territory of any nonbeneficiary country, the rum in the

shipment is imported directly into the

territory of Canada only if it:

9646 Federal Register / Vol. 66, No. 28 / Friday, February 9, 2001 / Rules and Regulations

(A) Remained under the control of the

customs authority of the intermediate

country;

(B) Did not enter into the commerce

of the intermediate country except for

the purpose of sale other than at retail;

and

(C) Was not subjected to operations in

the intermediate country other than

loading and unloading, and other

activities necessary to preserve the

product in good condition.

(d) Evidence of direct shipment.

(1) Liqueurs or spirituous beverages

imported from Canada. The importer

must be prepared to provide to the port

director, if requested, documentary

evidence that the liqueurs or spirituous

beverages were imported directly from

the territory of Canada, as described in

paragraph (c)(1) of this section. This

evidence may include documents such

as a bill of lading, invoice, air waybill,

freight waybill, or cargo manifest. Any

evidence of the direct shipment of these

liqueurs or spirituous beverages from

Canada into the U.S. may be subject to

such verification as deemed necessary

by the port director.

(2) Rum imported into Canada from

beneficiary country or U.S. Virgin

Islands. The importer must be prepared

to provide to the port director, if

requested, evidence that the rum used

in producing the liqueurs or spirituous

beverages was imported directly into the

territory of Canada from a beneficiary

country or from the U.S. Virgin Islands,

as described in paragraph (c)(2) of this

section. This evidence may include

documents such as a Canadian customs

entry, Canadian customs invoice,

Canadian customs manifest, cargo

manifest, bill of lading, landing

certificate, airway bill, or freight

waybill. Any evidence of the direct

shipment of the rum from a beneficiary

country or from the U.S. Virgin Islands

into the territory of Canada for use there

in producing the liqueurs or other

spirituous beverages may be subject to

such verification as deemed necessary

by the port director.

(e) Origin of rum used in production

of liqueur or spirituous beverage. 

(1) Origin criteria. In order for a

liqueur or spirituous beverage covered

by this section to be entitled to duty-free

entry under the CBI, the rum used in

producing the liqueur or spirituous

beverage in the territory of Canada must

be wholly the growth, product, or

manufacture either of a beneficiary

country under the CBI or of the U.S.

Virgin Islands, or must constitute a new

or different article of commerce that was

produced or manufactured in a

beneficiary country or in the U.S. Virgin

Islands. Such rum will not be

considered to have been grown,

produced, or manufactured in a

beneficiary country or in the U.S. Virgin

Islands by virtue of having merely

undergone blending, combining or

packaging operations, or mere dilution

with water or mere dilution with

another substance that does not

materially alter the characteristics of the

product.

(2) Evidence of origin of rum.—(i)

Declaration. The importer must be

prepared to submit directly to the port

director, if requested, a declaration

prepared and signed by the person who

produced or manufactured the rum,

affirming that the rum is the growth,

product or manufacture of a beneficiary

country or of the U.S. Virgin Islands.

While no particular form is prescribed

for the declaration, it must include all

pertinent information concerning the

processing operations by which the rum

was produced or manufactured, the

address of the producer or

manufacturer, the title of the party

signing the declaration, and the date it

is signed.

(ii) Records supporting declaration.

The supporting records, including those

production records, that are necessary

for the preparation of the declaration

must also be available for submission to

the port director if requested. The

declaration and any supporting

evidence as to the origin of the rum may

be subject to such verification as

deemed necessary by the port director.

(f) Canadian processor declaration;

supporting documentation.—(1)

Canadian processor declaration. The

importer must be prepared to submit

directly to the port director, if

requested, a declaration prepared by the

person who produced the liqueur(s)

and/or the spirituous beverage(s) in

Canada, setting forth all pertinent

information concerning the production

of the liqueurs/beverages. The

declaration will be in substantially the

following form:

I, lll declare that the liqueurs

and/or spirituous beverages here

specified are the products that were

produced by me (us), as described

below, with the use of rum that was

received by me (us); that the rum used

in producing the liqueurs/beverages was

received by me (us) on lll (date),

from lll (name and address of owner

or exporter in the beneficiary country or

in the U.S. Virgin Islands, as

applicable); and that such rum accounts

for at least 90 percent of the alcoholic

content by volume, as shown below, of

each liqueur or spirituous beverage so

produced.

Marks and

numbers

Description of

products and

of processing

Alcoholic

content of

products; alcoholic content (%) attributable to

rum 1

.................. .................

.................. .................

.................. .................

.................. .................

.................. .................

1The production records must establish, for

each lot of liqueur/beverage produced, the

quantity of rum the growth, product or manufacture of a CBI beneficiary country or of the

U.S. Virgin Islands under 19 U.S.C. 2703(a)(6)

that is used in producing the finished liqueur/

beverage; the alcoholic content by volume of

the finished liqueur/beverage; and the alcoholic content by volume of the finished liqueur/

beverage, expressed as a percentage, that is

attributable to the qualifying rum. If rum from

two or more qualifying sources (e.g., rum the

growth, product or manufacture of a CBI beneficiary country or of the U.S. Virgin Islands and

other rum the growth, product or manufacture

of another CBI country) are used in processing the liqueur/beverage, the alcoholic content requirement may be met by aggregating

the alcoholic content of the finished liqueur/

beverage that is attributable to rum from each

of the qualifying sources used in processing

the finished liqueur/beverage, as reflected in

the production records.

Date llllllllllllllllll

Address llllllllllllllll

Signature llllllllllllllll

Title llllllllllllllllll

(2) Availability of supporting

documents. The information, including

any supporting documents and records,

necessary for the preparation of the

declaration, as described in paragraph

(f)(1) of this section, must be available

for submission to the port director, if

requested. The declaration and any

supporting evidence may be subject to

such verification as deemed necessary

by the port director. The specific

documentary evidence necessary to

support the declaration consists of those

documents and records which

satisfactorily establish:

(i) The receipt of the rum by the

Canadian processor, including the date

of receipt and the name and address of

the party from whom the rum was

received (the owner or exporter in the

beneficiary country or the U.S. Virgin

Islands); and

(ii) For each lot of liqueur/beverage

produced and included in the

declaration, the specific identification of

the production lot(s) involved; the

quantity of qualifying rum that is used

in producing the finished liqueur/

beverage, including a description of the

processing and of the finished products;

the alcoholic content by volume of the

finished liqueur/beverage; and the

alcoholic content by volume of the

finished liqueur/beverage, expressed as

Federal Register / Vol. 66, No. 28 / Friday, February 9, 2001 / Rules and Regulations 9647

a percentage, that is attributable to the

qualifying rum.

(g) Importer system for review of

necessary recordkeeping. The importer

will establish and implement a system

of internal controls which demonstrate

that reasonable care was exercised in its

claim for duty-free treatment under the

CBI. These controls should include tests

to assure the accuracy and availability

of records that establish:

(1) The origin of the rum;

(2) The direct shipment of the rum

from a beneficiary country or from the

U.S. Virgin Islands to Canada;

(3) The alcohol content of the finished

liqueur/beverage imported from Canada;

and

(4) The direct shipment of the

finished liqueur/beverage from Canada

to the United States.

(h) Submission of documents to

Customs. The importer must be

prepared to submit directly to the port

director, if requested, those documents

and/or supporting records as described

in paragraphs (d), (e) and (f) of this

section, for a period of 5 years from the

date of entry of the related liqueurs and

spirituous beverages under section

213(a)(6) of the Caribbean Basin

Economic Recovery Act (19 U.S.C.

2703(a)(6)), as provided in § 163.4(a) of

this chapter. If requested, the importer

must submit such documents and/or

supporting records to the port director

within 60 calendar days of the date of

the request or such additional period as

the port director may allow for good

cause shown.

PART 163—RECORDKEEPING

1. 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.

2. The Appendix to part 163 is

amended by adding the following new

listing under section IV in appropriate

numerical order to read as follows:

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

List

* * * * *

IV. * * *

§ 10.199 Documents, etc. required for dutyfree entry of liqueurs and/or spirituous

beverages produced in Canada from CBI rum,

declaration of Canadian processor (plus

supporting information.

* * * * *

PART 178—APPROVAL OF

INFORMATION COLLECTION

REQUIREMENTS

1. The authority citation for part 178

continues to read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44

U.S.C. 3501 et seq.

2. Section 178.2 is amended by

adding the following in appropriate

numerical sequence according to the

section number under the columns

indicated:

§ 178.2 Listing of OMB control numbers.

19 CFR Section Description OMB control

No.

*******

§ 10.199 ....................................................................................... Claim for duty-free entry of rum beverages from Canada

under the Caribbean Basin Initiative.

1515–0194

*******

Raymond W. Kelly,

Commissioner of Customs.

Approved: February 5, 2001.

Timothy E. Skud,

Acting Deputy Assistant Secretary of the

Treasury.

[FR Doc. 01–3360 Filed 2–8–01; 8:45 am]

BILLING CODE 4820–02–U

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 191

[T.D. 01–18]

RIN 1515–AC67

Merchandise Processing Fee Eligible

To Be Claimed as Unused Merchandise

Drawback

AGENCY: Customs Service, Department

of the Treasury.

ACTION: Interim rule; solicitation of

comments.

SUMMARY: This document amends the

Customs Regulations on an interim basis

to indicate that merchandise processing

fees are eligible to be claimed as unused

merchandise drawback. The change is

made to reflect a recent court decision

in which merchandise processing fees

were found to be assessed under Federal

law and imposed by reason of

importation and therefore eligible to be

claimed as unused merchandise

drawback pursuant to 19 U.S.C. 1313(j).

The amendment will require a drawback

claimant to apportion the merchandise

processing fee to that merchandise that

provides the basis for drawback.

DATES: This interim rule is effective

February 9, 2001. Comments must be

received on or before April 10, 2001.

ADDRESSES: Written comments

(preferably in triplicate) may be

submitted to and inspected at the

Regulations Branch, Office of

Regulations and Rulings, U.S. Customs

Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT:

William G. Rosoff, Chief, Duty and

Refund Determinations Branch, Office

of Regulations and Rulings, U.S.

Customs Service, 1300 Pennsylvania

Avenue, NW., Washington, DC 20029,

Tel. (202) 927–2265.

SUPPLEMENTARY INFORMATION:

Background

Merchandise Processing Fees—19 U.S.C.

58c(a)(9)(A)

Merchandise processing fees are fees

the Secretary of the Treasury charges

and collects for the processing of

merchandise that is formally entered or

released into the United States. See 19

U.S.C. 58c(a)(9)(A). A merchandise

processing fee is assessed in an amount

equal to 0.21 percent of the value of the

imported merchandise, as determined

under 19 U.S.C. 1401a. Merchandise

processing fees are subject to two

monetary limits:

(1) A cap of $485 is imposed by 19

U.S.C. 58c(a)(9)(B)(i) for any release or

entry, including weekly Free Trade

Zone entries (see section 410 of the

Trade and Development Act of 2000,

Pub. L. 106–200, 114 Stat. 251, enacted

on May 18, 2000), for which the value

of merchandise subject to the fee

exceeds $230,952.38 ($485 ÷ .0021 =

$230,952.38); and

(2) For certain monthly entries, as

prescribed by Pub. L. 101–382, section

111(f), as amended, and implemented