[Federal Register: October 18, 2006 (Volume 71, Number 201)]
[Rules and Regulations]
[Page 61399-61403]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18oc06-7]
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DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Parts 12 and 163
[USCBP-2006-0108; CBP Dec. 06-25]
RIN 1505-AB73
Entry of Softwood Lumber Products From Canada
AGENCIES: Customs and Border Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Interim rule.
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SUMMARY: This document sets forth interim amendments to title 19 of the
Code of Federal Regulations (CFR) establishing special entry
requirements applicable to shipments of softwood lumber products from
Canada. The interim amendments involve the collection of additional
entry summary information for purposes of monitoring and enforcing the
Softwood Lumber Agreement between the Governments of Canada and the
United States, entered into on September 12, 2006.
DATES: Interim rule effective October 16, 2006. Comments must be
received on or before December 18, 2006.
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-2006-0108.
Mail: Trade and Commercial Regulations Branch, Office of
Regulations and Rulings, Bureau of Customs and Border Protection, 1300
Pennsylvania Avenue, NW. (Mint Annex), Washington, DC 20229.
Instructions: All submissions received must include the agency name
and
[[Page 61400]]
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 Office of Regulations and Rulings, Bureau
of 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: Millie Gleason, Office of Field
Operations, Tel: (202) 344-1131.
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. The Bureau of 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
Softwood Lumber Agreement
On September 12, 2006, the Governments of the United States and
Canada (the ``Parties'') signed a bilateral Softwood Lumber Agreement
(``SLA 2006'') concerning trade in softwood lumber products. The scope
of the SLA 2006 is limited to the softwood lumber products listed as
covered by the Agreement in Annex 1A of that document. A copy of the
SLA 2006 is available for public viewing on the website of the Office
of the United States Trade Representative located at http://www.ustr.gov
.
The SLA 2006 entered into force on October 12, 2006, (effective
date), as designated by the Parties in an exchange of letters
certifying that certain conditions have been met pursuant to Article
II.1 of the Agreement. Unless terminated according to the terms set
forth in Article XX, the SLA 2006 will remain in force until October
12, 2013, and may be extended by agreement of the Parties for an
additional 2 years.
The SLA 2006, in pertinent part requires:
The United States to retroactively revoke, in their
entirety, any antidumping (AD) and countervailing duty (CVD) orders
that relate to softwood lumber products beginning May 22, 2002 (the
initiation date of the order) to the effective date of the Agreement,
without the possibility of their reinstatement, and terminates all U.S.
Department of Commerce proceedings related to the orders. The United
States is also required to liquidate unliquidated entries subject to
AD/CVD orders made on or after May 22, 2002, without regard to
antidumping or countervailing duties, and with interest, pursuant to 19
U.S.C. 1677g(b).
The United States to not initiate and/or take action
concerning trade remedy investigations.
Canada to apply export measures to exports of Softwood
Lumber Products to the United States. For example, Canada will impose
either an export charge or an export charge coupled with a volume
restraint on exports of softwood lumber products to the United States
from each Region described in 5 the Agreement and issue Export Permits
on each entry of softwood lumber products exported from Canada to the
United States.
SLA 2006 Entry Requirements
In addition to the entry and entry summary information otherwise
required for importation into the United States, as per section 484 of
the Tariff Act of 1930, as amended, (19 U.S.C. 1484), the SLA 2006
obligates the United States to require that a U.S. importer provide
specific information in connection with each entry of covered softwood
lumber products from Canada. The information required under the SLA
2006 includes the following data elements:
(1) The Region of Origin of the softwood lumber product. The
identified Regions are: Alberta, British Columbia (B.C.) Coast, B.C.
Interior, Manitoba, Ontario, Saskatchewan, and Quebec. The regions
designated as B.C. Coast and B.C. Interior are defined in Forest
Regions and Districts Regulation, B.C. Reg, 123/2003, which is
available for public viewing at http://www.qp.gov.bc.ca/statreg/reg/F/Forest/123_2003.htm
.
(2) The Export Permit Number issued by the Government of Canada for
the shipment; and
(3) The original paper Certificate of Origin issued by the Maritime
Lumber Bureau, where applicable.
Exclusions From SLA 2006 Export Measures
Article X of the SLA 2006 identifies lumber products that are first
produced in certain Canadian provinces, or produced by specific
companies, as excluded from the export measures set forth in the
Agreement. Specifically, Article X provides that SLA 2006 export
measures will not apply to the following products:
(1) Softwood lumber products first produced in the Maritimes from
logs originating in the Maritimes or State of Maine, that are:
(i) Exported directly to the United States from a Maritime province
or
(ii) Shipped to a province that is not a Maritime province, and
reloaded or further processed and subsequently exported to the United
States, provided that the products are accompanied by an original
Certificate of Origin issued by the Maritime Lumber Bureau. An original
Certificate of Origin issued by the Maritime Lumber Bureau is a
required entry summary document by CBP. The Certificate must
specifically state that the corresponding CBP entries are for softwood
lumber products first produced in the Maritimes from logs originating
in the Maritimes or State of Maine;
(2) Softwood lumber products first produced in the Yukon, Northwest
Territories or Nunavut from logs originating therein; and
(3) Softwood lumber products produced by the companies listed in
Annex 10 of the SLA 2006.
Certificate of Origin From Maritime Lumber Bureau
As the SLA 2006 requires softwood lumber products whose Region of
Origin is the Maritimes to be accompanied by an original Certificate of
Origin issued by the Maritime Lumber Bureau, and provides that the
Certificate of Origin is a required entry summary document, CBP
requires importers of this commodity to submit the original paper
Certificate of Origin to CBP with the paper entry summary documentation
(CBP Form 7501) for each entry. All other entries of softwood lumber
products from Canada subject to the SLA 2006 may be filed
electronically using the CBP Form e-7501.
It is noted that the Certificate of Origin issued by the Maritime
Lumber Bureau is distinct from the NAFTA
[[Page 61401]]
Certificate of Origin required under Sec. 181.22 of title 19 of the
CFR.
This interim regulation adds the Certificate of Origin to the
``List of Records Required for the Entry of Merchandise'' set forth in
the Appendix to part 163. The list, commonly referred to as the
``(a)(1)(A) list,'' implements section 509(e) of the Trade Act of 1930,
as amended (19 U.S.C. 1509(e)), whereby CBP is required to identify and
publish a list of the records and entry information that is required to
be maintained and produced under section 509(a)(1)(A) of the Tariff Act
of 1930, as amended by title VI of Public Law 103-182 (19 U.S.C.
1509(a)(1)(A)). Section 509(a)(1)(A) requires the production of
records, within a reasonable time after demand by CBP, ``if such record
is required by law or regulation for the entry of the merchandise
(whether or not the Customs Service required its presentation at the
time of entry).''
SLA 2006 Exchange of Information and Monitoring
In order to facilitate monitoring of the SLA 2006, and in order to
ensure that Canadian exporters have obtained the required export
permits, the SLA 2006 also sets forth various cooperative measures
which include the periodic exchange of export and import information
collected by the two countries. The SLA 2006 also requires the Parties
to establish Technical Working Groups to ensure the effective
implementation and application of the export charges and the
administration of the customs-related aspects of the Agreement,
including export permits, volume restraints, data collection, and
exchange of information.
CBP Entry Requirements Specific to Softwood Lumber Products From Canada
in Revised 19 CFR 12.140
The purpose of this document is to provide an appropriate
regulatory context for the new requirements resulting from the SLA
2006. As these requirements relate to a special class of imported
products, CBP is of the view that a distinct provision pertaining to
this commodity and its specific entry requirements is appropriate. As
existing Sec. 12.140 of title 19 of the Code of Federal Regulations
(CFR) contains obsolete provisions pertaining to a prior Softwood
Lumber Agreement between the Governments of Canada and the United
States that expired in March, 2001, this document amends, on an interim
basis, Sec. 12.140 to set forth the entry requirements mandated by the
SLA 2006, as discussed below.
Section 12.140(a) sets forth definitions pertinent to the
administration of this provision.
Section 12.140(b) specifies the information required to be
collected pursuant to the SLA 2006. Importers are required to enter a
letter code representing the softwood lumber product's Canadian Region
of Origin in the data entry field entitled ``Country of Origin''
located on the CBP Form 7501. Importers must also enter a Canadian-
issued 8-digit export permit number preceded by a letter code
designating either: (1) The date of shipment; (2) a Canadian Region
whose exports of softwood lumber products are exempt from the export
measures contained in the SLA 2006; or (3) a company listed in Annex 10
of the SLA 2006 as exempt from the Agreement's export measures.
Section 12.140(c) states that where a softwood lumber product's
Region of Origin is the Maritimes, the original paper Certificate of
Origin issued by the Maritime Lumber Bureau must be submitted to CBP
with the paper entry summary documentation.
The letter codes described above are necessitated by the fact that
the Canadian-issued Export Permit Number consists of eight digits, and
the entry field for this data on the CBP Form 7501 holds nine digits.
Accordingly, CBP uses an alpha-numeric code system whereby the first
piece of data input into the Export Permit Number field on the CBP Form
7501 is a letter code designating either an exclusion from export
measures based on a product's Region of Origin or a company's exempt-
status, or the code is used to designate the date of shipment as
defined in Article XXI.16 of the SLA 2006, in which the first twelve
letters of the alphabet represent the twelve months of the year (e.g.,
``A'' represents January, ``B'' represents February, etc.). These codes
enable the United States to fulfill its information collection and
exchange obligations under Article XV of the Agreement by being able to
assess monthly volumes attributable to specific Regions and excluded
companies.
It is also noted that the SLA 2006 recognizes two separate and
distinct Canadian Regions comprising the territory of the Canadian
Province of British Columbia. Article XXI.45 of the Agreement
designates B.C. Coast and B.C. Interior as separate Regions for
purposes of the SLA 2006. As noted above, the geographic boundaries of
B.C. Coast and B.C. Interior are set forth in Forest Regions and
Districts Regulation, B.C. Reg, 123/2003. The code ``XD'' is to be used
to designate B.C. Coast in the ``Country of Origin'' data field on the
CBP Form 7501. The code ``XE'' is to be used to designate B.C.
Interior. These new codes, as well as the existing codes applicable to
the other Regions designated in the SLA 2006, are posted on the
Administrative Message Board in the Automated Commercial System (ACS).
In addition, this information will be provided to all Automated Broker
Interface (ABI) Administrative Message System filers.
The requirement to submit these data elements to CBP goes into
effect upon the date of filing of these interim amendments for public
inspection in the Federal Register.
As noted above, 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 reflect the entry
document requirements mandated by the SLA 2006. Section IV of the
Appendix currently lists 19 CFR 12.140 as the authority for the entry
records requirements, ``Province of first manufacture, export permit
number and fee status of softwood lumber from Canada.'' This document
revises that requirement to state that Sec. 12.140(c) requires a
``Certificate of Origin issued by Canada's Maritime Lumber Bureau.''
Comments
Submitted comments will be available for public inspection in
accordance with the Freedom of Information Act (5 U.S.C. 552) and Sec.
103.11(b) of title 19 of the CFR (19 CFR 103.11(b)), 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 Regulations and Rulings,
Customs and Border Protection, 799 9th St., NW., Washington, DC.
Arrangements to inspect submitted documents should be made in advance
by calling Joseph Clark at (202) 572-8768.
Inapplicability of Notice and Delayed Effective Date Requirements
Pursuant to 5 U.S.C. 553(a)(1), public notice and a delayed
effective date are inapplicable to this interim regulation because it
involves a foreign affairs function of the United States. The
collection of information provided for in this interim regulation is
required under the terms of the 2006 Softwood Lumber Agreement with
Canada and is necessary to ensure effective monitoring of the operation
of that Agreement.
Executive Order 12866
Because this rule involves a foreign affairs function of the United
States, it is not subject to Executive Order 12866 and has not been
reviewed by the Office of Management and Budget.
[[Page 61402]]
Regulatory Flexibility Act
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.
Paperwork Reduction Act
The collection of information referenced in this regulation, CBP
Form 7501, has been previously reviewed and approved by the Office of
Management and Budget in accordance with the requirements of the
Paperwork Reduction Act (44 U.S.C. 3507) under OMB-assigned control
number 1651-0022.
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
0
For the reasons stated above, parts 12 and 163 of title 19 of the Code
of Federal Regulations are amended as set forth below.
PART 12--SPECIAL CLASSES OF MERCHANDISE
0
1. The authority citation for part 12 continues 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.
* * * * *
0
2. Section 12.140 is revised to read as follows:
Sec. 12.140 Entry of softwood lumber products from Canada.
The requirements set forth in this section are applicable for as
long as the Softwood Lumber Agreement (SLA 2006), entered into on
September 12, 2006, by the Governments of the United States and Canada,
remains in effect.
(a) Definitions. The following definitions apply for purposes of
this section:
(1) British Columbia Coast. ``British Columbia Coast'' means the
Coastal Forest Regions as defined by the existing Forest Regions and
Districts Regulation, B.C. Reg. 123/2003.
(2) British Columbia Interior. ``British Columbia Interior'' means
the Northern Interior Forest Region and the Southern Interior Forest
Region as defined by the existing Forest Regions and Districts
Regulation, B.C. Reg. 123/2003.
(3) Date of shipment. ``Date of shipment'' means, in the case of
products exported by rail, the date when the railcar that contains the
products is assembled to form part of a train for export; otherwise,
the date when the products are loaded aboard a conveyance for export.
If a shipment is transshipped through a Canadian reload center or other
inventory location, the date of shipment is the date the merchandise
leaves the reload center or other inventory location for final shipment
to the United States.
(4) Maritimes. ``Maritimes'' means New Brunswick, Canada; Nova
Scotia, Canada; Prince Edward Island, Canada; and Newfoundland and
Labrador, Canada.
(5) Region. ``Region'' means British Columbia Coast or British
Columbia Interior as defined in paragraphs (a)(1) and (2) of this
section; Alberta, Canada; Manitoba, Canada; Maritimes, Canada;
Northwest Territories, Canada; Nunavut Territory, Canada; Ontario,
Canada; Saskatchewan, Canada; Quebec, Canada; or Yukon Territory,
Canada.
(6) Region of Origin. ``Region of Origin'' means the Region where
the facility at which the softwood lumber product was first produced
into such a product is located, regardless of whether that product was
further processed (for example, by planing or kiln drying) or was
transformed from one softwood lumber product into another such product
(for example, a remanufactured product) in another Region, with the
following exceptions:
(i) The Region of Origin of softwood lumber products first produced
in the Maritime Provinces from logs originating in a non-Maritime
Region will be the Region where the logs originated; and
(ii) The Region of Origin of softwood lumber products first
produced in the Yukon, Northwest Territories or Nunavut (the
`Territories') from logs originating outside the Territories will be
the Region where the logs originated.
(7) SLA 2006. ``SLA 2006'' or ``SLA'' means the Softwood Lumber
Agreement entered into between the Governments of Canada and the United
States on September 12, 2006.
(8) Softwood lumber products. ``Softwood lumber products'' mean
those products described as covered by the SLA 2006 in Annex 1A of the
Agreement.
(b) Reporting requirements. In the case of softwood lumber products
from Canada listed in Annex 1A of the SLA 2006, the following
information must be included on the electronic entry summary
documentation (CBP Form 7501) for each entry:
(1) Region of Origin. The letter code representing a softwood
lumber product's Canadian Region of Origin, as posted on the
Administrative Message Board in the Automated Commercial System. (For
example, the letter code ``XD'' designates softwood lumber products
whose Region of Origin is British Columbia Coast. The letter code
``XE'' designates softwood lumber products whose Region of Origin is
British Columbia Interior.)
(2) Export Permit Number. The 8-digit Canadian-issued Export Permit
Number, preceded by one of the following letter codes:
(i) The letter code assigned to represent the date of shipment
(i.e., ``A'' represents January, ``B'' represents February, ``C''
represents March, etc.), except for those softwood lumber products
produced by a company listed in Annex 10 of the SLA 2006 or whose
Region of Origin is the Maritimes, Yukon, Northwest Territories or
Nunavut;
(ii) The letter code ``X'', which designates a company listed in
Annex 10 of the SLA 2006; or
(iii) The letter code assigned to represent the Maritimes (code M);
Yukon (code Y); Northwest Territories (code W); or Nunavut (code N),
for softwood lumber products originating in these regions.
(c) Original Maritime Certificate of Origin. Where a softwood
lumber product's Region of Origin is the Maritimes, the original paper
copy of the Certificate of Origin issued by the Maritime Lumber Bureau
must be submitted to CBP with the paper entry summary documentation for
each entry. The Certificate of Origin must specifically state that the
corresponding CBP entries are for softwood lumber products first
produced in the Maritimes from logs originating in the Maritimes or
State of Maine.
(d) Recordkeeping. Importers must retain copies of export permits,
certificates of origin, and any other substantiating documentation
issued by the Canadian Government pursuant to the recordkeeping
requirements set forth in part 163 of title 19 to the CFR.
[[Page 61403]]
PART 163--RECORDKEEPING
0
3. 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.
0
4. The Appendix to part 163 is amended by removing the listing for
Sec. 12.140 and adding in its place Sec. 12.140(c) under section IV
to read as follows:
Appendix to Part 163--Interim (a)(1)(A) List
* * * * *
IV. * * *
Sec. 12.140(c) Certificate of Origin issued by Canada's Maritime
Lumber Bureau.
* * * * *
Chris J. Clark,
Acting Commissioner, Bureau of Customs and Border Protection.
Approved: October 13, 2006.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 06-8761 Filed 10-16-06; 9:39 am]
BILLING CODE 9111-14-P