[Federal Register: May 13, 2004 (Volume 69, Number 93)]
[Notices]               
[Page 26615-26616]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13my04-136]                         

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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

 
List of Foreign Entities Violating Textile Transshipment and 
Country of Origin Rules

AGENCY: Bureau of Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: This document notifies the public of foreign entities which 
have been issued a penalty claim under section 592 of the Tariff Act of 
1930, for certain violations of the customs laws. This list is 
authorized to be published by section 333 of the Uruguay Round 
Agreements Act.

DATES: This document notifies the public of the semiannual list for the 
6-month period starting March 31, 2004, and ending September 30, 2004.

FOR FURTHER INFORMATION: For information regarding any of the 
operational aspects, contact Gregory Olsavsky, Fines, Penalties and 
Forfeitures Branch, Office of Field Operations, (202) 927-3119. For 
information regarding any of the legal aspects, contact Willem A. 
Daman, Office of Chief Counsel, (202) 927-6900.

SUPPLEMENTARY INFORMATION:

Background

    Section 333 of the Uruguay Round Agreements Act (URAA) (Pub. L. 
103-465, 108 Stat. 4809) (signed December 8, 1994), entitled Textile 
Transshipments, amended part V of title IV of the Tariff Act of 1930 by 
creating a section 592A (19 U.S.C. 1592a), which authorizes the 
Secretary of the Treasury to publish in the Federal Register, on a 
semiannual basis, a list of the names of any producers, manufacturers, 
suppliers, sellers, exporters, or other persons located outside the 
Customs territory of the United States, when these entities and/or 
persons have been issued a penalty claim under section 592 of the 
Tariff Act, for certain violations of the customs laws, provided that 
certain conditions are satisfied.
    The violations of the customs laws referred to above are the 
following: (1) Using documentation, or providing documentation 
subsequently used by the importer of record, which indicates a false or 
fraudulent country of origin or source of textile or apparel products; 
(2) Using counterfeit visas, licenses, permits, bills of lading, or 
similar documentation, or providing counterfeit visas, licenses, 
permits, bills of lading, or similar documentation that are 
subsequently used by the importer of record, with respect to the entry 
into the Customs territory of the United States of textile or apparel 
products; (3) Manufacturing, producing, supplying, or selling textile 
or apparel products which are falsely or fraudulently labeled as to 
country of origin or source; and (4) Engaging in practices which aid or 
abet the transshipment, through a country other than the country of 
origin, of textile or apparel products in a manner which conceals the 
true origin of the textile or apparel products or permits the evasion 
of quotas on, or voluntary restraint agreements with respect to, 
imports of textile or apparel products.
    If a penalty claim has been issued with respect to any of the above 
violations, and no petition in response to the claim has been filed, 
the name of the party to whom the penalty claim was issued will appear 
on the list. If a petition or supplemental petition for relief from the 
penalty claim is submitted under 19 U.S.C. 1618, in accord with the 
time periods established by Sec. Sec.  171.2 and 171.61, Customs and 
Border Protection (CBP) Regulations (19 CFR 171.2, 171.61) and the 
petition is subsequently denied or the penalty is mitigated, and no 
further petition, if allowed, is received within 60 days of the denial 
or allowance of mitigation, then the administrative action shall be

[[Page 26616]]

deemed to be final and administrative remedies will be deemed to be 
exhausted. Consequently, the name of the party to whom the penalty 
claim was issued will appear on the list. However, provision is made 
for an appeal to the Secretary of the Treasury (now delegated to the 
Secretary of Homeland Security) by the person named on the list, for 
the removal of its name from the list. If the Secretary finds that such 
person or entity has not committed any of the enumerated violations for 
a period of not less than 3 years after the date on which the person or 
entity's name was published, the name will be removed from the list as 
of the next publication of the list.

Reasonable Care Required

    Section 592A also requires any importer of record entering, 
introducing, or attempting to introduce into the commerce of the United 
States textile or apparel products that were either directly or 
indirectly produced, manufactured, supplied, sold, exported, or 
transported by such named person to show, to the satisfaction of the 
Secretary, that such importer has exercised reasonable care to ensure 
that the textile or apparel products are accompanied by documentation, 
packaging, and labeling that are accurate as to their origin. Reliance 
solely upon information regarding the imported product from a person 
named on the list is clearly not the exercise of reasonable care. Thus, 
the textile and apparel importers who have some commercial relationship 
with one or more of the listed parties must exercise a degree of 
reasonable care in ensuring that the documentation covering the 
imported merchandise, as well as its packaging and labeling, is 
accurate as to the country of origin of the merchandise. This degree of 
reasonable care must involve reliance on more than information supplied 
by the named party.
    In meeting the reasonable care standard when importing textile or 
apparel products and when dealing with a party named on the list 
published pursuant to section 592A of the Tariff Act of 1930, an 
importer should consider the following questions in attempting to 
ensure that the documentation, packaging, and labeling are accurate as 
to the country of origin of the imported merchandise. The list of 
questions is not exhaustive but is illustrative.
    (1) Has the importer had a prior relationship with the named party?
    (2) Has the importer had any detentions and/or seizures of textile 
or apparel products that were directly or indirectly produced, 
supplied, or transported by the named party?
    (3) Has the importer visited the company's premises and ascertained 
that the company has the capacity to produce the merchandise?
    (4) Where a claim of an origin conferring process is made in 
accordance with 19 CFR 102.21, has the importer ascertained that the 
named party actually performed the required process?
    (5) Is the named party operating from the same country as is 
represented by that party on the documentation, packaging or labeling?
    (6) Have quotas for the imported merchandise closed or are they 
nearing closing from the main producer countries for this commodity?
    (7) What is the history of this country regarding this commodity?
    (8) Have you asked questions of your supplier regarding the origin 
of the product?
    (9) Where the importation is accompanied by a visa, permit, or 
license, has the importer verified with the supplier or manufacturer 
that the visa, permit, and/or license is both valid and accurate as to 
its origin? Has the importer scrutinized the visa, permit or license as 
to any irregularities that would call its authenticity into question?
    The law authorizes a semiannual publication of the names of the 
foreign entities and/or persons. On October 8, 2003, CBP published a 
notice in the Federal Register (68 FR 58123) which identified two (2) 
entities which fell within the purview of section 592A of the Tariff 
Act of 1930.

592A List

    For the period ending March 30, 2004, CBP has identified no foreign 
entities that fall within the purview of section 592A of the Tariff Act 
of 1930. The two (2) entities named on the list published on October 8, 
2003, have not committed any of the enumerated violations for a period 
of not less than three (3) years after the initial publication of their 
names. Accordingly, these two (2) entities are removed and, as no new 
entities are named, CBP is not listing any foreign entities on the 592A 
list for the period starting March 31, 2004, and ending September 30, 
2004.

    Dated: May 6, 2004.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 04-10855 Filed 5-12-04; 8:45 am]

BILLING CODE 4820-02-P