[Federal Register Volume 73, Number 115 (Friday, June 13, 2008)]
[Rules and Regulations]
[Pages 33673-33691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13252]
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DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Parts 10, 24, 162, 163, and 178
[USCBP-2008-0060; CBP Dec. 08-22]
RIN 1505-AB84
Dominican Republic--Central America--United States Free Trade
Agreement
AGENCIES: Customs and Border Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Interim rule; solicitation of comments.
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SUMMARY: This rule amends title 19 of the Code of Federal Regulations
(``CFR'') on an interim basis to implement the preferential tariff
treatment and other customs-related provisions of the Dominican
Republic--Central America--United States Free Trade Agreement.
DATES: Interim rule effective June 13, 2008; comments must be received
by August 12, 2008.
ADDRESSES: You may submit comments, identified by docket number, by one
of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments via docket number
USCBP-2008-0060.
Mail: Trade and Commercial Regulations Branch, Regulations
and Rulings, U.S. Customs and Border Protection, 1300 Pennsylvania
Avenue, NW., (Mint Annex), Washington, DC 20229.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to http://www.regulations.gov, including any
personal information provided. For detailed instructions on submitting
comments and additional information on the rulemaking process, see the
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov. Submitted comments
may also be inspected during regular business days between the hours of
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch,
Regulations and Rulings, U.S. Customs and Border Protection, 799 9th
Street, NW., 5th Floor, Washington, DC. Arrangements to inspect
submitted comments should be made in advance by calling Mr. Joseph
Clark at (202) 572-8768.
FOR FURTHER INFORMATION CONTACT:
Textile Operational Aspects: Robert Abels, Office of International
Trade, (202) 344-1959.
Other Operational Aspects: Lori Whitehurst, Office of International
Trade, (202) 344-2722.
Audit Aspects: Mark Hanson, Regulatory Audit, (202) 344-2977.
Legal Aspects: Karen Greene, Office of International Trade, (202)
572-8838.
SUPPLEMENTARY INFORMATION:
Public Participation
Interested persons are invited to participate in this rulemaking by
[[Page 33674]]
submitting written data, views, or arguments on all aspects of the
interim rule. 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 regulations will reference a specific portion of the
interim rule, explain the reason for any recommended change, and
include data, information, or authority that support such recommended
change. See ADDRESSES above for information on how to submit comments.
Background
On August 5, 2004, the governments of Costa Rica, the Dominican
Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United
States signed the Dominican Republic--Central America--United States
Free Trade Agreement (``CAFTA-DR'' or ``Agreement''). The stated
objectives of the CAFTA-DR include: strengthening the special bonds of
friendship and cooperation among the signatory countries and promoting
regional economic integration; contributing to the harmonious
development and expansion of world trade and providing a catalyst to
broader international cooperation; creating an expanded and secure
market for goods and services produced in the region; establishing
clear and mutually advantageous rules governing trade among the
signatory countries; ensuring a predictable commercial framework for
business planning and investment; seeking to facilitate regional trade
by promoting efficient and transparent customs procedures that reduce
costs and ensure predictability for importers and exporters; fostering
creativity and innovation, and promoting trade in goods and services
that are the subject of intellectual property rights; promoting
transparency and eliminating bribery and corruption in international
trade and investment; protecting, enhancing, and enforcing basic
workers' rights; creating new employment opportunities and improving
working conditions and living standards in the region; and implementing
the Agreement in a manner consistent with environmental protection and
conservation, promoting sustainable development, and strengthening
cooperation on environmental matters.
The provisions of the CAFTA-DR were adopted by the United States
with the enactment on August 2, 2005, of the Dominican Republic--
Central America--United States Free Trade Agreement Implementation Act
(the ``Act''), Public Law 109-53, 119 Stat. 462 (19 U.S.C. 4001 et
seq.). Section 210 of the Act requires that regulations be prescribed
as necessary to implement these provisions of the CAFTA-DR.
On February 28, 2006, the President signed Proclamation 7987 to
implement the provisions of the CAFTA-DR with respect to El Salvador.
The Proclamation, which was published in the Federal Register on March
2, 2006 (71 FR 10827), modified the Harmonized Tariff Schedule of the
United States (``HTSUS'') as set forth in Annexes I and II of
Publication 3829 of the U.S. International Trade Commission. The
modifications to the HTSUS included the addition of new General Note
29, incorporating the relevant CAFTA-DR rules of origin as set forth in
the Act, and the insertion throughout the HTSUS of the preferential
duty rates applicable to individual products under the CAFTA-DR where
the special program indicator ``P'' appears in parenthesis in the
``Special'' rate of duty subcolumn. Presidential Proclamation 7996
dated March 31, 2006, which was published in the Federal Register on
April 4, 2006 (71 FR 16971), implemented the CAFTA-DR with respect to
Honduras and Nicaragua. Presidential Proclamation 8034 dated June 30,
2006, published in the Federal Register on July 6, 2006 (71 FR 38509),
implemented the CAFTA-DR with respect to Guatemala. Presidential
Proclamation 8111 dated February 28, 2007, published in the Federal
Register on March 6, 2007 (72 FR 10025), implemented the CAFTA-DR with
respect to the Dominican Republic.
Customs and Border Protection (``CBP'') is responsible for
administering the provisions of the CAFTA-DR and the Act that relate to
the importation of goods into the United States from a CAFTA-DR Party
for which the Agreement has entered into force. Those customs-related
CAFTA-DR provisions which require implementation through regulation
include certain tariff and non-tariff provisions within Chapter Two
(General Definitions), Chapter Three (National Treatment and Market
Access for Goods), and Chapter Four (Rules of Origin and Origin
Procedures).
Certain general definitions set forth in Chapter Two of the CAFTA-
DR have been incorporated into the CAFTA-DR implementing regulations.
The tariff-related provisions within CAFTA-DR Chapter Three that are
the subject of regulatory action in this interim rule are Article 3.6
(Goods Re-entered after Repair or Alteration) and those relating
specifically to textile and apparel goods are Article 3.24 (Customs
Cooperation), Article 3.25 (Rules of Origin and Related Matters),
Article 3.28 and Annex 3.28 (Preferential Tariff Treatment for Non-
Originating Apparel Goods of Nicaragua), and Article 3.29
(Definitions).
Section A of Chapter Four of the CAFTA-DR sets forth the rules for
determining whether an imported good qualifies as an originating good
of a Party and, as such, is therefore eligible for preferential tariff
(duty-free or reduced duty) treatment under the CAFTA-DR as provided
for in the HTSUS. The basic rules of origin in Section A of Chapter
Four are set forth in General Note 29, HTSUS. Under Article 4.1 of
Chapter Four, originating goods may be grouped in three broad
categories: (1) Goods that are wholly obtained or produced entirely in
the territory of one or more of the Parties; (2) goods that are
produced entirely in the territory of one or more of the Parties and
that satisfy the specific rules of origin in CAFTA-DR Annex 4.1 (change
in tariff classification requirement and/or regional value content
requirement) and all other applicable requirements of Chapter Four; and
(3) goods that are produced entirely in the territory of one or more of
the Parties exclusively from materials that originate in those
countries. Article 4.2 sets forth the methods for calculating the
regional value content of a good. Articles 4.3 and 4.4 set forth the
rules for determining the value of materials for purposes of
calculating the regional value content of a good and applying the de
minimis rule. Article 4.5 allows production that takes place in the
territory of one or more of the Parties to be accumulated such that,
provided other requirements are met, the resulting good is considered
originating. Article 4.6 provides a de minimis criterion. The remaining
Articles within Section A of Chapter Four consist of additional sub-
rules, applicable to the originating good concept, involving fungible
goods and materials, accessories, spare parts, and tools, packaging
materials, packing materials, indirect materials, transit and
transshipment, sets, and consultation and modifications. All Articles
within Section A are reflected in the CAFTA-DR implementing
regulations, except for Article 4.14 (Consultation and Modifications).
Section B of Chapter Four sets forth procedures that apply under
the CAFTA-DR in regard to claims for preferential tariff treatment.
Specifically, Section B includes provisions concerning obligations
related to importations and exportations, claims for preferential
tariff treatment, record keeping
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requirements, verification of preference claims, common guidelines, and
definitions of terms used within the context of the rules of origin.
All Articles within Section B, except for Article 4.21 (Common
Guidelines), are reflected in these implementing regulations.
In order to provide transparency and facilitate their use, the
majority of the CAFTA-DR implementing regulations set forth in this
document have been included within Subpart J in part 10 of the CBP
regulations (19 CFR part 10). However, implementation of the tariff
preference and related provisions of CAFTA-DR has also been effected
through amendments to a number of other regulatory provisions outside
of Subpart J, part 10 within the CBP regulations. The regulatory
changes are discussed below in the order in which they appear in this
document.
Discussion of Amendments
Part 10
Section 10.31(f) concerns temporary importations under bond. It is
amended by adding references to certain goods originating in a CAFTA-DR
Party for which, like goods originating in Canada, Mexico, Singapore,
Chile, Morocco, and Bahrain, no bond or other security will be required
when imported temporarily for prescribed uses. The provisions of CAFTA-
DR Article 3.5 (Temporary Admission of Goods) are already reflected in
existing temporary importation bond or other provisions contained in
Part 10 of the CBP regulations and in Chapter 98 of the HTSUS.
Part 10, Subpart J
General Provisions
Section 10.581 outlines the scope of Subpart J, Part 10 of the CBP
regulations. This section also clarifies that, except where the context
otherwise requires, the requirements contained in Subpart J, Part 10
are in addition to general administrative and enforcement provisions
set forth elsewhere in the CBP regulations. Thus, for example, the
specific merchandise entry requirements contained in Subpart J, Part 10
are in addition to the basic entry requirements contained in Parts 141-
143 of the CBP regulations.
Section 10.582 sets forth definitions of common terms used in
multiple contexts or places within Subpart J, Part 10. Although the
majority of the definitions in this section are based on definitions
contained in Article 2.1, Annex 2.1, and Article 3.29 of the CAFTA-DR,
and Sec. 3 of the Act, other definitions have also been included to
clarify the application of the regulatory texts. Additional definitions
that apply in a more limited Subpart J, Part 10 context are set forth
elsewhere with the substantive provisions to which they relate.
Import Requirements
Section 10.583 sets forth the procedure for claiming CAFTA-DR
preferential tariff treatment at the time of entry and, as provided in
CAFTA-DR Article 4.16.1, states that an importer may make a claim for
CAFTA-DR preferential tariff treatment based on a certification by the
importer, exporter, or producer or the importer's knowledge that the
good qualifies as an originating good. Section 10.583 also provides,
consistent with CAFTA-DR Article 4.15.4(d), that when an importer has
reason to believe that a claim is based on inaccurate information, the
importer must correct the claim and pay any duties that may be due.
Section 10.584, which is based on CAFTA-DR Articles 4.15.4 and
4.16, requires a U.S. importer, upon request, to submit a copy of the
certification of the importer, exporter, or producer if the
certification forms the basis for the claim. Section 10.584 specifies
the information that must be included on the certification, sets forth
the circumstances under which the certification may be prepared by the
exporter or producer of the good, and provides that the certification
may be used either for a single importation or for multiple
importations of identical goods.
Section 10.585 sets forth certain importer obligations regarding
the truthfulness of information and documents submitted in support of a
claim for preferential tariff treatment. Section 10.586, which is based
on CAFTA-DR Article 4.17, provides that the certification is not
required for certain non-commercial or low-value importations.
Section 10.587 implements CAFTA-DR Article 4.19 concerning the
maintenance of relevant records regarding the imported good.
Section 10.588, which reflects CAFTA-DR Article 4.15.2, authorizes
the denial of CAFTA-DR tariff benefits if the importer fails to comply
with any of the requirements under Subpart J, Part 10, CBP regulations.
Export Requirements
Section 10.589, which implements CAFTA-DR Articles 4.18 and 4.19.1,
sets forth certain obligations of a person who completes and issues a
certification for a good exported from the United States to a Party.
Paragraphs (a) and (b) of Sec. 10.589, reflecting CAFTA-DR Article
4.18.1, require a person who completes such a certification to provide
a copy of the certification to CBP upon request and to give prompt
notification of any errors in the certification to every person to whom
the certification was given. Paragraph (c) of Sec. 10.589 reflects
Article 4.19.1, concerning the recordkeeping requirements that apply to
a person who completes and issues a certification for a good exported
from the United States to a Party.
Post-Importation Duty Refund Claims
Sections 10.590 through 10.592 implement CAFTA-DR Article 4.15.5,
which allows an importer who did not claim CAFTA-DR tariff benefits on
a qualifying good at the time of importation to apply for a refund of
any excess duties at any time within one year after the date of
importation. Such a claim may be made even if liquidation of the entry
would otherwise be considered final under other provisions of law.
Rules of Origin
Sections 10.593 through 10.605 provide the implementing regulations
regarding the rules of origin provisions of General Note 29, HTSUS,
Chapter Four and Article 3.25 of the CAFTA-DR, and section 203 of the
Act.
Definitions
Section 10.593 sets forth terms that are defined for purposes of
the rules of origin.
General Rules of Origin
Section 10.594 sets forth the basic rules of origin established in
Article 4.1 of the CAFTA-DR, section 203(b) of the Act, and General
Note 29(b), HTSUS. The provisions of Sec. 10.594 apply both to the
determination of the status of an imported good as an originating good
for purposes of preferential tariff treatment and to the determination
of the status of a material as an originating material used in a good
which is subject to a determination under General Note 29, HTSUS.
Section 10.594(a) specifies those goods that are originating goods
because they are wholly obtained or produced entirely in the territory
of one or more of the Parties.
Section 10.594(b) provides that goods that have been produced
entirely in the territory of one or more of the Parties so that each
non-originating material undergoes an applicable change in tariff
classification and satisfies any applicable regional value content or
other requirement set forth in General Note 29, HTSUS, are originating
goods.
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Essential to the rules in Sec. 10.594(b) are the specific rules of
General Note 29(n), HTSUS, which are incorporated by reference.
Section 10.594(c) provides that goods that have been produced
entirely in the territory of one or more of the Parties exclusively
from originating materials are originating goods.
Value Content
Section 10.595 reflects CAFTA-DR Article 4.2 concerning the basic
rules that apply for purposes of determining whether an imported good
satisfies a minimum regional value content (``RVC'') requirement.
Section 10.596, reflecting CAFTA-DR Articles 4.3 and 4.4, sets forth
the rules for determining the value of a material for purposes of
calculating the regional value content of a good as well as for
purposes of applying the de minimis rules.
Accumulation
Section 10.597, which is derived from CAFTA-DR Article 4.5, sets
forth the rule by which originating materials from the territory of one
or more of the Parties that are used in the production of a good in the
territory of another Party will be considered to originate in the
territory of that other country. In addition, this section also
establishes that a good that is produced by one or more producers in
the territory of one or more of the Parties is an originating good if
the good satisfies all of the applicable requirements of the rules of
origin of the CAFTA-DR.
De Minimis
Section 10.598, as provided for in CAFTA-DR Article 4.6, sets forth
de minimis rules for goods that may be considered to qualify as
originating goods even though they fail to qualify as originating goods
under the rules specified in Sec. 10.594. There are a number of
exceptions to the de minimis rule as well as a separate rule for
textile and apparel goods.
Fungible Goods and Materials
Section 10.599, as provided for in CAFTA-DR Article 4.7, sets forth
the rules by which ``fungible'' goods or materials may be claimed as
originating.
Accessories, Spare Parts, or Tools
Section 10.600, as set forth in CAFTA-DR Article 4.8, specifies the
conditions under which a good's standard accessories, spare parts, or
tools are: (1) Treated as originating goods; and (2) disregarded in
determining whether all non-originating materials undergo an applicable
change in tariff classification under General Note 29(n), HTSUS.
Packaging Materials and Packing Materials
Sections 10.601 and 10.602, which are derived from CAFTA-DR
Articles 4.9 and 4.10, respectively, provide that retail packaging
materials and packing materials for shipment are to be disregarded with
respect to their actual origin in determining whether non-originating
materials undergo an applicable change in tariff classification under
General Note 29(n), HTSUS. These sections also set forth the treatment
of packaging and packing materials for purposes of the regional value
content requirement of the note.
Indirect Materials
Section 10.603, as set forth in CAFTA-DR Article 4.11, provides
that indirect materials, as defined in Sec. 10.582(m), are considered
to be originating materials without regard to where they are produced.
Transit and Transshipment
Section 10.604, which is derived from CAFTA-DR Article 4.12, sets
forth the rule that an originating good loses its originating status
and is treated as a non-originating good if, subsequent to production
in the territory of one or more of the Parties that qualifies the good
as originating, the good: (1) Undergoes production outside the
territories of the Parties, other than certain specified minor
operations; or (2) does not remain under the control of customs
authorities in the territory of a non-Party.
Goods Classifiable as Goods Put Up in Sets
Section 10.605, which is based on CAFTA-DR Articles 3.25.9 (Rules
of Origin and Related Matters) and 4.13 (Sets of Goods), provides that,
notwithstanding the specific rules of General Note 29(n), HTSUS, goods
classifiable as goods put up in sets for retail sale as provided for in
General Rule of Interpretation 3, HTSUS, will not qualify as
originating goods unless: (1) Each of the goods in the set is an
originating good; or (2) the total value of the non-originating goods
in the set does not exceed 10 percent of the adjusted value of the set
in the case of textile or apparel goods, or 15 percent of the adjusted
value of the set in the case of goods other than textile or apparel
goods.
Tariff Preference Level
Section 10.606 sets forth procedures for claiming CAFTA-DR tariff
benefits for certain non-originating cotton or man-made fiber apparel
goods of Nicaragua that are entitled to preference under an applicable
tariff preference level (``TPL'').
Section 10.607, which is based on CAFTA-DR Article 3.28 and Annex
3.28, describes the non-originating cotton or man-made fiber apparel
goods of Nicaragua that are eligible for TPL claims under the CAFTA-DR.
Section 10.608, as authorized by Sec. 1634(c)(1) of the Pension
Protection Act of 2006 (Pub. L. 109-280, 120 Stat. 1163), requires an
importer claiming preferential tariff treatment on a non-originating
cotton or man-made fiber apparel good of Nicaragua specified in Sec.
10.607 to submit a certificate of eligibility issued by the Government
of Nicaragua.
Consistent with Sec. 10.604, Sec. 10.609 provides that a good of
Nicaragua that is otherwise eligible for preferential tariff treatment
under an applicable TPL will not be considered eligible for preference
if it: (1) Undergoes production outside the territories of the Parties,
other than certain specified minor operations; or (2) does not remain
under the control of customs authorities in the territory of a non-
Party.
Section 10.610 provides for the denial of a TPL claim if the
importer fails to comply with any applicable requirement under Subpart
J, Part 10, CBP regulations, including the failure to provide
documentation, when requested by CBP, establishing that the good met
the conditions relating to transshipment set forth in Sec. 10.609(a).
Origin Verifications and Determinations
Section 10.616 implements CAFTA-DR Article 4.20 which concerns the
conduct of verifications to determine whether imported goods are
originating goods entitled to CAFTA-DR preferential tariff treatment.
This section also governs the conduct of verifications directed to
producers of materials that are used in the production of a good for
which CAFTA-DR preferential duty treatment is claimed.
Section 10.617, which reflects CAFTA-DR Article 3.24, sets forth
the verification and enforcement procedures specifically relating to
trade in textile and apparel goods.
Section 10.618 provides the procedures that apply when preferential
tariff treatment is denied on the basis of an origin verification
conducted under this subpart.
Section 10.619 implements CAFTA-DR Article 4.20.5 and Sec. 206(b)
of the Act, concerning the denial of preferential tariff treatment in
situations in which there is a pattern of conduct
[[Page 33677]]
by an importer, exporter, or producer of false or unsupported CAFTA-DR
preference claims.
Penalties
Section 10.620 concerns the general application of penalties to
CAFTA-DR transactions and is based on CAFTA-DR Article 5.9.
Section 10.621 reflects CAFTA-DR Article 4.15.3 and Sec. 206(a)(1)
of the Act with regard to an exception to the application of penalties
in the case of an importer who promptly and voluntarily makes a
corrected claim and pays any duties owing.
Section 10.622 implements CAFTA-DR Article 4.18.2 and Sec.
206(a)(2) of the Act, concerning an exception to the application of
penalties in the case of a U.S. exporter or producer who promptly and
voluntarily provides notification of the making of an incorrect
certification with respect to a good exported to a Party.
Section 10.623 sets forth the circumstances under which the making
of a corrected claim or certification by an importer or the providing
of notification of an incorrect certification by a U.S. exporter or
producer will be considered to have been done ``promptly and
voluntarily''. Corrected claims or certifications that fail to meet
these requirements are not excepted from penalties, although the U.S.
importer, exporter, or producer making the corrected claim or
certification may, depending on the circumstances, qualify for a
reduced penalty as a prior disclosure under 19 U.S.C. 1592(c)(4).
Section 10.623 also specifies the content of the statement that must
accompany each corrected claim or certification.
Goods Returned After Repair or Alteration
Section 10.624 implements CAFTA-DR Article 3.6 regarding duty-free
treatment for goods re-entered after repair or alteration in a CAFTA-DR
Party.
Retroactive Preferential Tariff Treatment for Textile and Apparel Goods
Current Sec. 10.699 of the CBP regulations, which sets forth the
conditions and requirements that apply for purposes of submitting
requests for refunds of any excess customs duties paid with respect to
entries of textile or apparel goods entitled to retroactive tariff
treatment under the CAFTA-DR (see CAFTA-DR Article 3.20 and Sec. 205
of the Act), is redesignated as Sec. 10.625 so as to conform
numerically to the new provisions added to Subpart J, Part 10, by this
interim rule. In addition, paragraph (a) of redesignated Sec. 10.625,
relating to the applicability of this section, is revised by deleting
certain redundant language set forth in new Sec. 10.581 (Scope) of
Subpart J, Part 10.
Part 24
An amendment is made to Sec. 24.23(c), which concerns the
merchandise processing fee, to implement Sec. 204 of the Act,
providing that the merchandise processing fee is not applicable to
goods that qualify as originating goods under the CAFTA-DR.
Part 162
Part 162 contains regulations regarding the inspection and
examination of, among other things, imported merchandise. A cross-
reference is added to Sec. 162.0, which is the scope section of the
part, to refer readers to the additional CAFTA-DR records maintenance
and examination provisions contained in Subpart J, Part 10, CBP
regulations.
Part 163
A conforming amendment is made to Sec. 163.1 to include the
maintenance of any documentation that the importer may have in support
of a claim for preference under the CAFTA-DR as an activity for which
records must be maintained. Also, the list of records and information
required for the entry of merchandise appearing in the Appendix to Part
163 (commonly known as the (a)(1)(A) list) is also amended to add the
documentation in the importer's possession supporting an CAFTA-DR claim
for preferential tariff treatment.
Part 178
Part 178 sets forth the control numbers assigned to information
collections of CBP by the Office of Management and Budget, pursuant to
the Paperwork Reduction Act of 1995, Public Law 104-13. The list
contained in Sec. 178.2 is amended to add the information collections
used by CBP to determine eligibility for preferential tariff treatment
under the CAFTA-DR and the Act.
Inapplicability of Notice and Delayed Effective Date Requirements
Under the Administrative Procedure Act (``APA'') (5 U.S.C. 553),
agencies generally are required to publish a notice of proposed
rulemaking in the Federal Register that solicits public comment on the
proposed regulatory amendments, consider public comments in deciding on
the content of the final amendments, and publish the final amendments
at least 30 days prior to their effective date. However, section
553(a)(1) of the APA provides that the standard prior notice and
comment procedures do not apply to an agency rulemaking to the extent
that it involves a foreign affairs function of the United States. CBP
has determined that these interim regulations involve a foreign affairs
function of the United States because they implement preferential
tariff treatment and related provisions of the CAFTA-DR. Therefore, the
rulemaking requirements under the APA do not apply and this interim
rule will be effective upon publication. However, CBP is soliciting
comments in this interim rule and will consider all comments received
before issuing a final rule.
Executive Order 12866 and Regulatory Flexibility Act
CBP has determined that this document is not a regulation or rule
subject to the provisions of Executive Order 12866 of September 30,
1993 (58 FR 51735, October 1993), because it pertains to a foreign
affairs function of the United States and implements an international
agreement, as described above, and therefore is specifically exempted
by section 3(d)(2) of Executive Order 12866. Because a notice of
proposed rulemaking is not required under section 553(b) of the APA for
the reasons described above, the provisions of the Regulatory
Flexibility Act, as amended (5 U.S.C. 601 et seq.), do not apply to
this rulemaking. Accordingly, this interim rule is not subject to the
regulatory analysis requirements or other requirements of 5 U.S.C. 603
and 604.
Paperwork Reduction Act
These regulations are being issued without prior notice and public
procedure pursuant to the APA, as described above. For this reason, the
collections of information contained in these regulations have been
reviewed and, pending receipt and evaluation of public comments,
approved by the Office of Management and Budget in accordance with the
requirements of the Paperwork Reduction Act (44 U.S.C. 3507) under
control number 1651-0125.
The collections of information in these regulations are in
Sec. Sec. 10.583 and 10.584. This information is required in
connection with claims for preferential tariff treatment under the
CAFTA-DR and the Act and will be used by CBP to determine eligibility
for tariff preference under the CAFTA-DR and the Act. The likely
respondents are business organizations including importers, exporters
and manufacturers.
Estimated total annual reporting burden: 4,000 hours.
[[Page 33678]]
Estimated average annual burden per respondent: .2 hours.
Estimated number of respondents: 20,000.
Estimated annual frequency of responses: 1.
Comments concerning the collections of information and the accuracy
of the estimated annual burden, and suggestions for reducing that
burden, should be directed to the Office of Management and Budget,
Attention: Desk Officer for the Department of the Treasury, Office of
Information and Regulatory Affairs, Washington, DC 20503. A copy should
also be sent to the Trade and Commercial Regulations Branch,
Regulations and Rulings, U.S. Customs and Border Protection, 1300
Pennsylvania Avenue, NW. (Mint Annex), Washington, DC 20229.
Signing Authority
This document is being issued in accordance with Sec. 0.1(a)(1) of
the CBP regulations (19 CFR 0.1(a)(1)) pertaining to the authority of
the Secretary of the Treasury (or his/her delegate) to approve
regulations related to certain customs revenue functions.
List of Subjects
19 CFR Part 10
Alterations, Bonds, Customs duties and inspection, Exports,
Imports, Preference programs, Repairs, Reporting and recordkeeping
requirements, Trade agreements.
19 CFR Part 24
Accounting, Customs duties and inspection, Financial and accounting
procedures, Reporting and recordkeeping requirements, Trade agreements,
User fees.
19 CFR Part 162
Administrative practice and procedure, Customs duties and
inspection, Penalties, Trade agreements.
19 CFR Part 163
Administrative practice and procedure, Customs duties and
inspection, Exports, Imports, Reporting and recordkeeping requirements,
Trade agreements.
19 CFR Part 178
Administrative practice and procedure, Exports, Imports, Reporting
and recordkeeping requirements.
Amendments to the Regulations
0
Accordingly, chapter I of title 19, Code of Federal Regulations (19 CFR
chapter I), is amended as set forth below.
PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,
ETC.
1. The general authority citation for part 10 continues to read,
the specific authority for Sec. 10.699 is removed, and the specific
authority for Sec. Sec. 10.581 through 10.625 is added, to read as
follows:
Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508,
1623, 1624, 3314;
* * * * *
Sections 10.581 through 10.625 also issued under 19 U.S.C. 1202
(General Note 29, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 109-53, 119
Stat. 462 (19 U.S.C. 4001 note).
* * * * *
0
2. In Sec. 10.31, paragraph (f), the last sentence is revised to read
as follows:
Sec. 10.31 Entry; bond.
* * * * *
(f) * * * In addition, notwithstanding any other provision of this
paragraph, in the case of professional equipment necessary for carrying
out the business activity, trade or profession of a business person,
equipment for the press or for sound or television broadcasting,
cinematographic equipment, articles imported for sports purposes and
articles intended for display or demonstration, if brought into the
United States by a resident of Canada, Mexico, Singapore, Chile,
Morocco, Bahrain, El Salvador, Guatemala, Honduras, Nicaragua, or the
Dominican Republic and entered under Chapter 98, Subchapter XIII,
HTSUS, no bond or other security will be required if the entered
article is a good originating, within the meaning of General Note 12,
25, 26, 27, or 29, HTSUS, in the country of which the importer is a
resident.
* * * * *
0
3. Part 10, CBP regulations, is amended by revising Subpart J to read
as follows:
Subpart J--Dominican Republic--Central America--United States Free
Trade Agreement
Sec.
General Provisions
10.581 Scope.
10.582 General definitions.
Import Requirements
10.583 Filing of claim for preferential tariff treatment upon
importation.
10.584 Certification.
10.585 Importer obligations.
10.586 Certification not required.
10.587 Maintenance of records.
10.588 Effect of noncompliance; failure to provide documentation
regarding transshipment.
Export Requirements
10.589 Certification for goods exported to a Party.
Post-Importation Duty Refund Claims
10.590 Right to make post-importation claim and refund duties.
10.591 Filing procedures.
10.592 CBP processing procedures.
Rules of Origin
10.593 Definitions.
10.594 Originating goods.
10.595 Regional value content.
10.596 Value of materials.
10.597 Accumulation.
10.598 De minimis.
10.599 Fungible goods and materials.
10.600 Accessories, spare parts, or tools.
10.601 Retail packaging materials and containers.
10.602 Packing materials and containers for shipment.
10.603 Indirect materials.
10.604 Transit and transshipment.
10.605 Goods classifiable as goods put up in sets.
Tariff Preference Level
10.606 Filing of claim for tariff preference level.
10.607 Goods eligible for tariff preference level claims.
10.608 Submission of certificate of eligibility.
10.609 Transshipment of non-originating cotton or man-made fiber
apparel goods.
10.610 Effect of noncompliance; failure to provide documentation
regarding transshipment of non-originating cotton or man-made fiber
apparel goods.
Origin Verifications and Determinations
10.616 Verification and justification of claim for preferential
tariff treatment.
10.617 Special rule for verifications in a Party of U.S. imports of
textile and apparel goods.
10.618 Issuance of negative origin determinations.
10.619 Repeated false or unsupported preference claims.
Penalties
10.620 General.
10.621 Corrected claim or certification by importers.
10.622 Corrected certification by exporters or producers.
10.623 Framework for correcting claims or certifications.
Goods Returned After Repair or Alteration
10.624 Goods re-entered after repair or alteration in a Party.
Retroactive Preferential Tariff Treatment for Textile and Apparel Goods
10.625 Refunds of excess customs duties.
[[Page 33679]]
Subpart J--Dominican Republic--Central America--United States Free
Trade Agreement
General Provisions
Sec. 10.581 Scope.
This subpart implements the duty preference and related customs
provisions applicable to imported and exported goods under the
Dominican Republic--Central America--United States Free Trade Agreement
(the CAFTA-DR) signed on August 5, 2004, and under the Dominican
Republic--Central America--United States Free Trade Agreement
Implementation Act (the Act; Pub. L. 109-53, 119 Stat. 462 (19 U.S.C.
4001 et seq.), as amended by section 1634 of the Pension Protection Act
of 2006 (Pub. L. 109-280, 120 Stat. 1167). Except as otherwise
specified in this subpart, the procedures and other requirements set
forth in this subpart are in addition to the customs procedures and
requirements of general application contained elsewhere in this
chapter. Additional provisions implementing certain aspects of the
CAFTA-DR and the Act are contained in parts 24, 162, and 163 of this
chapter.
Sec. 10.582 General definitions.
As used in this subpart, the following terms will have the meanings
indicated unless either the context in which they are used requires a
different meaning or a different definition is prescribed for a
particular section of this subpart:
(a) Claim for preferential tariff treatment. ``Claim for
preferential tariff treatment'' means a claim that a good is entitled
to the duty rate applicable under the CAFTA-DR to an originating good
or other good specified in the CAFTA-DR, and to an exemption from the
merchandise processing fee;
(b) Claim of origin. ``Claim of origin'' means a claim that a
textile or apparel good is an originating good or a good of a Party;
(c) Customs authority. ``Customs authority'' means the competent
governmental unit that is responsible under the law of a Party for the
administration of customs laws and regulations;
(d) Customs duty. ``Customs duty'' includes any customs or import
duty and a charge of any kind imposed in connection with the
importation of a good, including any form of surtax or surcharge in
connection with such importation, but, for purposes of implementing the
CAFTA-DR, does not include any:
(1) Charge equivalent to an internal tax imposed consistently with
Article III:2 of GATT 1994 in respect of like, directly competitive, or
substitutable goods of the Party, or in respect of goods from which the
imported good has been manufactured or produced in whole or in part;
(2) Antidumping or countervailing duty that is applied pursuant to
a Party's Domestic law; or
(3) Fee or other charge in connection with importation commensurate
with the cost of services rendered;
(e) Customs Valuation Agreement. ``Customs Valuation Agreement''
means the Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994, which is part of the WTO
Agreement;
(f) Days. ``Days'' means calendar days;
(g) Enterprise. ``Enterprise'' means any entity constituted or
organized under applicable law, whether or not for profit, and whether
privately owned or governmentally owned, including any corporation,
trust, partnership, sole proprietorship, joint venture, or other
association;
(h) GATT 1994. ``GATT 1994'' means the General Agreement on Tariffs
and Trade 1994, which is part of the WTO Agreement;
(i) Harmonized System. ``Harmonized System'' means the Harmonized
Commodity Description and Coding System, including its General Rules of
Interpretation, Section Notes, and Chapter Notes, as adopted and
implemented by the Parties in their respective tariff laws;
(j) Heading. ``Heading'' means the first four digits in the tariff
classification number under the Harmonized System;
(k) HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the
United States as promulgated by the U.S. International Trade
Commission;
(l) Identical goods. ``Identical goods'' means goods that are
produced in the same country and are the same in all respects,
including physical characteristics, quality, and reputation, but
excluding minor differences in appearance.
(m) Indirect material. ``Indirect material'' means a good used in
the production, testing, or inspection of a good in the territory of
one or more of the Parties but not physically incorporated into the
good, or a good used in the maintenance of buildings or the operation
of equipment associated with the production of a good in the territory
of one or more of the Parties, including:
(1) Fuel and energy;
(2) Tools, dies, and molds;
(3) Spare parts and materials used in the maintenance of equipment
or buildings;
(4) Lubricants, greases, compounding materials, and other materials
used in production or used to operate equipment or buildings;
(5) Gloves, glasses, footwear, clothing, safety equipment, and
supplies;
(6) Equipment, devices, and supplies used for testing or inspecting
the good;
(7) Catalysts and solvents; and
(8) Any other goods that are not incorporated into the good but the
use of which in the production of the good can reasonably be
demonstrated to be a part of that production;
(n) Originating. ``Originating'' means qualifying for preferential
tariff treatment under the rules of origin set out in CAFTA-DR Chapter
Four (Rules of Origin and Origin Procedures) and General Note 29,
HTSUS;
(o) Party. ``Party'' means:
(1) The United States; and
(2) Costa Rica, the Dominican Republic, El Salvador, Guatemala,
Honduras, or Nicaragua, for such time as the CAFTA-DR is in force
between the United States and that country;
(p) Person. ``Person'' means a natural person or an enterprise;
(q) Preferential tariff treatment. ``Preferential tariff
treatment'' means the duty rate applicable under the CAFTA-DR to an
originating good or other good specified in the CAFTA-DR, and an
exemption from the merchandise processing fee;
(r) Subheading. ``Subheading'' means the first six digits in the
tariff classification number under the Harmonized System;
(s) Tariff preference level. ``Tariff preference level'' means a
quantitative limit for certain non-originating apparel goods that may
be entitled to preferential tariff treatment based on the goods meeting
the requirements set forth in Sec. Sec. 10.606 through 10.610 of this
subpart.
(t) Textile or apparel good. ``Textile or apparel good'' means a
good listed in the Annex to the Agreement on Textiles and Clothing
(commonly referred to as ``the ATC''), which is part of the WTO
Agreement, except for those goods listed in Annex 3.29 of the CAFTA-DR;
(u) Territory. ``Territory'' means:
(1) With respect to each Party other than the United States, the
land, maritime, and air space under its sovereignty and the exclusive
economic zone and the continental shelf within which it exercises
sovereign rights and jurisdiction in accordance with international law
and its domestic law;
(2) With respect to the United States:
(i) The customs territory of the United States, which includes the
50 states, the District of Columbia, and Puerto Rico;
(ii) The foreign trade zones located in the United States and
Puerto Rico; and
[[Page 33680]]
(iii) Any areas beyond the territorial seas of the United States
within which, in accordance with international law and its domestic
law, the United States may exercise rights with respect to the seabed
and subsoil and their natural resources;
(v) WTO. ``WTO'' means the World Trade Organization; and
(w) WTO Agreement. ``WTO Agreement'' means the Marrakesh Agreement
Establishing the World Trade Organization of April 15, 1994.
Import Requirements
Sec. 10.583 Filing of claim for preferential tariff treatment upon
importation.
(a) Basis of claim. An importer may make a claim for CAFTA-DR
preferential tariff treatment, including an exemption from the
merchandise processing fee, based on:
(1) A certification, as specified in Sec. 10.584 of this subpart,
that is prepared by the importer, exporter, or producer of the good; or
(2) The importer's knowledge that the good qualifies as an
originating good, including reasonable reliance on information in the
importer's possession that the good is an originating good.
(b) Making a claim. The claim is made by including on the entry
summary, or equivalent documentation, the letter ``P'' or ``P+'' as a
prefix to the subheading of the HTSUS under which each qualifying good
is classified, or by the method specified for equivalent reporting via
an authorized electronic data interchange system.
(c) Corrected claim. If, after making the claim specified in
paragraph (a) of this section, the importer has reason to believe that
the claim is based on inaccurate information or is otherwise invalid,
the importer must, within 30 calendar days after the date of discovery
of the error, correct the claim and pay any duties that may be due. The
importer must submit a statement either in writing or via an authorized
electronic data interchange system to the CBP office where the original
claim was filed specifying the correction (see Sec. Sec. 10.621 and
10.623 of this subpart).
Sec. 10.584 Certification.
(a) General. An importer who makes a claim under Sec. 10.583(b) of
this subpart based on a certification of the importer, exporter, or
producer that the good qualifies as originating must submit, at the
request of the port director, a copy of the certification. The
certification:
(1) Need not be in a prescribed format but must be in writing or
must be transmitted electronically pursuant to any electronic means
authorized by CBP for that purpose;
(2) Must be in the possession of the importer at the time the claim
for preferential tariff treatment is made if the certification forms
the basis for the claim;
(3) Must include the following information:
(i) The legal name, address, telephone, and e-mail address (if any)
of the importer of record of the good, the exporter of the good (if
different from the producer), and the producer of the good;
(ii) The legal name, address, telephone, and e-mail address (if
any) of the responsible official or authorized agent of the importer,
exporter, or producer signing the certification (if different from the
information required by paragraph (a)(3)(i) of this section);
(iii) A description of the good for which preferential tariff
treatment is claimed, which must be sufficiently detailed to relate it
to the invoice and the HS nomenclature;
(iv) The HTSUS tariff classification, to six or more digits, as
necessary for the specific change in tariff classification rule for the
good set forth in General Note 29(n), HTSUS; and
(v) The applicable rule of origin set forth in General Note 29,
HTSUS, under which the good qualifies as an originating good; and
(4) Must include a statement, in substantially the following form:
``I certify that:
The information on this document is true and accurate and I
assume the responsibility for proving such representations. I
understand that I am liable for any false statements or material
omissions made on or in connection with this document;
I agree to maintain and present upon request, documentation
necessary to support these representations;
The goods originated or are considered to have originated in the
territory of one or more of the Parties, and comply with the origin
requirements specified for those goods in the Dominican Republic--
Central America--United States Free Trade Agreement; there has been
no further production or any other operation outside the territories
of the Parties, other than unloading, reloading, or any other
operation necessary to preserve the goods in good condition or to
transport the goods to the United States; the goods remained under
the control of customs authorities while in the territory of a non-
Party; and
This document consists of ---- pages, including all
attachments.''
(b) Responsible official or agent. The certification provided for
in paragraph (a) of this section must be signed and dated by a
responsible official of the importer, exporter, or producer, or by the
importer's, exporter's, or producer's authorized agent having knowledge
of the relevant facts.
(c) Language. The certification provided for in paragraph (a) of
this section must be completed in either the English language or the
language of the exporting Party. In the latter case, the port director
may require the importer to submit an English translation of the
certification.
(d) Certification by the exporter or producer. A certification may
be prepared by the exporter or producer of the good on the basis of:
(1) The exporter's or producer's knowledge that the good is
originating; or
(2) In the case of an exporter, reasonable reliance on the
producer's certification that the good is originating.
(e) Applicability of certification. The certification provided for
in paragraph (a) of this section may be applicable to:
(1) A single shipment of a good into the United States; or
(2) Multiple shipments of identical goods into the United States
that occur within a specified blanket period, not exceeding 12 months,
set out in the certification.
(f) Validity of certification. A certification that is properly
completed, signed, and dated in accordance with the requirements of
this section will be accepted as valid for four years following the
date on which it was signed.
Sec. 10.585 Importer obligations.
(a) General. An importer who makes a claim for preferential tariff
treatment under Sec. 10.583(b) of this subpart:
(1) Will be deemed to have certified that the good is eligible for
preferential tariff treatment under the CAFTA-DR;
(2) Is responsible for the truthfulness of the claim and of all the
information and data contained in the certification provided for in
Sec. 10.584 of this subpart;
(3) Is responsible for submitting any supporting documents
requested by CBP, and for the truthfulness of the information contained
in those documents. When a certification prepared by an exporter or
producer forms the basis of a claim for preferential tariff treatment,
and CBP requests the submission of supporting documents, the importer
will provide to CBP, or arrange for the direct submission by the
exporter or producer, all information relied on by the exporter or
producer in preparing the certification.
(b) Information provided by exporter or producer. The fact that the
importer has made a claim or submitted a certification based on
information provided by an exporter or producer will not relieve the
importer of the
[[Page 33681]]
responsibility referred to in paragraph (a) of this section.
(c) Exemption from penalties. An importer will not be subject to
civil or administrative penalties under 19 U.S.C. 1592 for making an
incorrect claim for preferential tariff treatment or submitting an
incorrect certification, provided that the importer promptly and
voluntarily corrects the claim or certification and pays any duty owing
(see Sec. Sec. 10.621 and 10.623 of this subpart).
Sec. 10.586 Certification not required.
(a) General. Except as otherwise provided in paragraph (b) of this
section, an importer will not be required to submit a copy of a
certification under Sec. 10.584 of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation for which the value of the originating
goods does not exceed U.S. $2,500.
(b) Exception. If the port director determines that an importation
described in paragraph (a) of this section is part of a series of
importations carried out or planned for the purpose of evading
compliance with the certification requirements of Sec. 10.584 of this
subpart, the port director will notify the importer that for that
importation the importer must submit to CBP a copy of the
certification. The importer must submit such a copy within 30 days from
the date of the notice. Failure to timely submit a copy of the
certification will result in denial of the claim for preferential
tariff treatment.
Sec. 10.587 Maintenance of records.
(a) General. An importer claiming preferential tariff treatment for
a good imported into the United States under Sec. 10.583(b) of this
subpart must maintain, for a minimum of five years after the date of
importation of the good, all records and documents that the importer
has demonstrating that the good qualifies for preferential tariff
treatment under the CAFTA-DR. These records are in addition to any
other records that the importer is required to prepare, maintain, or
make available to CBP under part 163 of this chapter.
(b) Method of maintenance. The records and documents referred to in
paragraph (a) of this section must be maintained by importers as
provided in Sec. 163.5 of this chapter.
Sec. 10.588 Effect of noncompliance; failure to provide documentation
regarding transshipment.
(a) General. If the importer fails to comply with any requirement
under this subpart, including submission of a complete certification
prepared in accordance with Sec. 10.584 of this subpart, when
requested, the port director may deny preferential tariff treatment to
the imported good.
(b) Failure to provide documentation regarding transshipment. Where
the requirements for preferential tariff treatment set forth elsewhere
in this subpart are met, the port director nevertheless may deny
preferential tariff treatment to an originating good if the good is
shipped through or transshipped in a country other than a Party to the
CAFTA-DR, and the importer of the good does not provide, at the request
of the port director, evidence demonstrating to the satisfaction of the
port director that the conditions set forth in Sec. 10.604(a) of this
subpart were met.
Export Requirements
Sec. 10.589 Certification for goods exported to a Party.
(a) Submission of certification to CBP. Any person who completes
and issues a certification for a good exported from the United States
to a Party must provide a copy of the certification (or such other
medium or format approved by the Party's customs authority for that
purpose) to CBP upon request.
(b) Notification of errors in certification. Any person who
completes and issues a certification for a good exported from the
United States to a Party and who has reason to believe that the
certification contains or is based on incorrect information must
promptly notify every person to whom the certification was provided of
any change that could affect the accuracy or validity of the
certification. Notification of an incorrect certification must also be
given either in writing or via an authorized electronic data
interchange system to CBP specifying the correction (see Sec. Sec.
10.622 and 10.623 of this subpart).
(c) Maintenance of records--(1) General. Any person who completes
and issues a certification for a good exported from the United States
to a Party must maintain, for a period of at least five years after the
date the certification was signed, all records and supporting documents
relating to the origin of a good for which the certification was
issued, including the certification or copies thereof and records and
documents associated with:
(i) The purchase, cost, and value of, and payment for, the good;
(ii) The purchase, cost, and value of, and payment for, all
materials, including indirect materials, used in the production of the
good; and
(iii) The production of the good in the form in which the good was
exported.
(2) Method of maintenance. The records referred to in paragraph (c)
of this section must be maintained as provided in Sec. 163.5 of this
chapter.
(3) Availability of records. For purposes of determining compliance
with the provisions of this part, the records required to be maintained
under this section must be stored and made available for examination
and inspection by the port director or other appropriate CBP officer in
the same manner as provided in Part 163 of this chapter.
Post-Importation Duty Refund Claims
Sec. 10.590 Right to make post-importation claim and refund duties.
Notwithstanding any other available remedy, where a good would have
qualified as an originating good when it was imported into the United
States but no claim for preferential tariff treatment was made, the
importer of that good may file a claim for a refund of any excess
duties at any time within one year after the date of importation of the
good in accordance with the procedures set forth in Sec. 10.591 of
this subpart. Subject to the provisions of Sec. 10.588 of this
subpart, CBP may refund any excess duties by liquidation or
reliquidation of the entry covering the good in accordance with Sec.
10.592(c) of this subpart.
Sec. 10.591 Filing procedures.
(a) Place of filing. A post-importation claim for a refund must be
filed with the director of the port at which the entry covering the
good was filed.
(b) Contents of claim. A post-importation claim for a refund must
be filed by presentation of the following:
(1) A written declaration stating that the good qualified as an
originating good at the time of importation and setting forth the
number and date of the entry or entries covering the good;
(2) A copy of a certification prepared in accordance with Sec.
10.584 of this subpart if a certification forms the basis for the
claim, or other information demonstrating that the good qualifies for
preferential tariff treatment;
(3) A written statement indicating whether the importer of the good
provided a copy of the entry summary or equivalent documentation to any
other person. If such documentation was so provided, the statement must
identify each recipient by name, CBP identification number, and address
and must specify the date on which the documentation was provided; and
(4) A written statement indicating whether or not any person has
filed a
[[Page 33682]]
protest relating to the good under any provision of law; and if any
such protest has been filed, the statement must identify the protest by
number and date.
Sec. 10.592 CBP processing procedures.
(a) Status determination. After receipt of a post-importation claim
under Sec. 10.591 of this subpart, the port director will determine
whether the entry covering the good has been liquidated and, if
liquidation has taken place, whether the liquidation has become final.
(b) Pending protest or judicial review. If the port director
determines that any protest relating to the good has not been finally
decided, the port director will suspend action on the claim filed under
Sec. 10.591 of this subpart until the decision on the protest becomes
final. If a summons involving the tariff classification or dutiability
of the good is filed in the Court of International Trade, the port
director will suspend action on the claim filed under Sec. 10.591 of
this subpart until judicial review has been completed.
(c) Allowance of claim. (1) Unliquidated entry. If the port
director determines that a claim for a refund filed under Sec. 10.591
of this subpart should be allowed and the entry covering the good has
not been liquidated, the port director will take into account the claim
for refund in connection with the liquidation of the entry.
(2) Liquidated entry. If the port director determines that a claim
for a refund filed under Sec. 10.591 of this subpart should be allowed
and the entry covering the good has been liquidated, whether or not the
liquidation has become final, the entry must be reliquidated in order
to effect a refund of duties under this section. If the entry is
otherwise to be reliquidated based on administrative review of a
protest or as a result of judicial review, the port director will
reliquidate the entry taking into account the claim for refund under
Sec. 10.591 of this subpart.
(d) Denial of claim. (1) General. The port director may deny a
claim for a refund filed under Sec. 10.591 of this subpart if the
claim was not filed timely, if the importer has not complied with the
requirements of Sec. 10.591 of this subpart, or if, following
initiation of an origin verification under Sec. 10.616 of this
subpart, the port director determines either that the imported good did
not qualify as an originating good at the time of importation or that a
basis exists upon which preferential tariff treatment may be denied
under Sec. 10.616 of this subpart.
(2) Unliquidated entry. If the port director determines that a
claim for a refund filed under this subpart should be denied and the
entry covering the good has not been liquidated, the port director will
deny the claim in connection with the liquidation of the entry, and
notice of the denial and the reason for the denial will be provided to
the importer in writing or via an authorized electronic data
interchange system.
(3) Liquidated entry. If the port director determines that a claim
for a refund filed under this subpart should be denied and the entry
covering the good has been liquidated, whether or not the liquidation
has become final, the claim may be denied without reliquidation of the
entry. If the entry is otherwise to be reliquidated based on
administrative review of a protest or as a result of judicial review,
such reliquidation may include denial of the claim filed under this
subpart. In either case, the port director will provide notice of the
denial and the reason for the denial to the importer in writing or via
an authorized electronic data interchange system.
Rules of Origin
Sec. 10.593 Definitions.
For purposes of Sec. Sec. 10.593 through 10.605:
(a) Adjusted value. ``Adjusted value'' means the value determined
in accordance with Articles 1 through 8, Article 15, and the
corresponding interpretative notes of the Customs Valuation Agreement,
adjusted, if necessary, to exclude:
(1) Any costs, charges, or expenses incurred for transportation,
insurance and related services incident to the international shipment
of the good from the country of exportation to the place of
importation; and
(2) The value of packing materials and containers for shipment as
defined in paragraph (m) of this section;
(b) Class of motor vehicles. ``Class of motor vehicles'' means any
one of the following categories of motor vehicles:
(1) Motor vehicles provided for in subheading 8701.20, 8704.10,
8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, HTSUS,
or motor vehicles for the transport of 16 or more persons provided for
in subheading 8702.10 or 8702.90, HTSUS;
(2) Motor vehicles provided for in subheading 8701.10 or any of
subheadings 8701.30 through 8701.90, HTSUS;
(3) Motor vehicles provided for the transport of 15 or fewer
persons provided for in subheading 8702.10 or 8702.90, HTSUS, or motor
vehicles provided for in subheading 8704.21 or 8704.31, HTSUS; or
(4) Motor vehicles provided for in subheadings 8703.21 through
8703.90, HTSUS;
(c) Exporter. ``Exporter'' means a person who exports goods from
the territory of a Party;
(d) Fungible good or material. ``Fungible good or material'' means
a good or material, as the case may be, that is interchangeable with
another good or material for commercial purposes and the properties of
which are essentially identical to such other good or material;
(e) Generally Accepted Accounting Principles. ``Generally Accepted
Accounting Principles'' means the recognized consensus or substantial
authoritative support in the territory of a Party, with respect to the
recording of revenues, expenses, costs, assets, and liabilities, the
disclosure of information, and the preparation of financial statements.
These principles may encompass broad guidelines of general application
as well as detailed standards, practices, and procedures;
(f) Good. ``Good'' means any merchandise, product, article, or
material;
(g) Goods wholly obtained or produced entirely in the territory of
one or more of the Parties. ``Goods wholly obtained or produced
entirely in the territory of one or more of the Parties'' means:
(1) Plants and plant products harvested or gathered in the
territory of one or more of the Parties;
(2) Live animals born and raised in the territory of one or more of
the Parties;
(3) Goods obtained in the territory of one or more of the Parties
from live animals;
(4) Goods obtained from hunting, trapping, fishing, or aquaculture
conducted in the territory of one or more of the Parties;
(5) Minerals and other natural resources not included in paragraphs
(g)(1) through (g)(4) of this section that are extracted or taken in
the territory of one or more of the Parties;
(6) Fish, shellfish, and other marine life taken from the sea,
seabed, or subsoil outside the territory of one or more of the Parties
by vessels registered or recorded with a Party and flying its flag;
(7) Goods produced on board factory ships from the goods referred
to in paragraph (g)(6) of this section, if such factory ships are
registered or recorded with a Party and flying its flag;
[[Page 33683]]
(8) Goods taken by a Party or a person of a Party from the seabed
or subsoil outside territorial waters, if a Party has rights to exploit
such seabed or subsoil;
(9) Goods taken from outer space, provided they are obtained by a
Party or a person of a Party and not processed in the territory of a
non-Party;
(10) Waste and scrap derived from:
(i) Manufacturing or processing operations in the territory of one
or more of the Parties; or
(ii) Used goods collected in the territory of one or more of the
Parties, if such goods are fit only for the recovery of raw materials;
(11) Recovered goods derived in the territory of one or more of the
Parties from used goods, and used in the territory of a Party in the
production of remanufactured goods; and
(12) Goods produced in the territory of one or more of the Parties
exclusively from goods referred to in any of paragraphs (g)(1) through
(g)(10) of this section, or from the derivatives of such goods, at any
stage of production;
(h) Material. ``Material'' means a good that is used in the
production of another good, including a part or an ingredient;
(i) Model line. ``Model line'' means a group of motor vehicles
having the same platform or model name;
(j) Net cost. ``Net cost'' means total cost minus sales promotion,
marketing, and after-sales service costs, royalties, shipping and
packing costs, and non-allowable interest costs that are included in
the total cost;
(k) Non-allowable interest costs. ``Non-allowable interest costs''
means interest costs incurred by a producer that exceed 700 basis
points above the applicable official interest rates for comparable
maturities of the Party in which the producer is located;
(l) Non-originating good or non-originating material. ``Non-
originating good'' or ``non-originating material'' means a good or
material, as the case may be, that does not qualify as originating
under General Note 29, HTSUS, or this subpart;
(m) Packing materials and containers for shipment. ``Packing
materials and containers for shipment'' means the goods used to protect
a good during its transportation to the United States, and does not
include the packaging materials and containers in which a good is
packaged for retail sale;
(n) Producer. ``Producer'' means a person who engages in the
production of a good in the territory of a Party;
(o) Production. ``Production'' means growing, mining, harvesting,
fishing, raising, trapping, hunting, manufacturing, processing,
assembling, or disassembling a good;
(p) Reasonably allocate. ``Reasonably allocate'' means to apportion
in a manner that would be appropriate under generally accepted
accounting principles;
(q) Recovered goods. ``Recovered goods'' means materials in the
form of individual parts that are the result of:
(1) The disassembly of used goods into individual parts; and
(2) The cleaning, inspecting, testing, or other processing that is
necessary to improve such individual parts to sound working condition;
(r) Remanufactured good. ``Remanufactured good'' means a good that
is classified in Chapter 84, 85, or 87, or heading 9026, 9031, or 9032,
HTSUS, other than a good classified in heading 8418 or 8516, HTSUS, and
that:
(1) Is entirely or partially comprised of recovered goods; and
(2) Has a similar life expectancy and enjoys a factory warranty
similar to a new good that is classified in one of the enumerated HTSUS
chapters or headings;
(s) Royalties. ``Royalties'' means payments of any kind, including
payments under technical assistance agreements or similar agreements,
made as consideration for the use of, or right to use, any copyright,
literary, artistic, or scientific work, patent, trademark, design,
model, plan, secret formula or process, excluding those payments under
technical assistance agreements or similar agreements that can be
related to specific services such as:
(1) Personnel training, without regard to where performed; and
(2) If performed in the territory of one or more of the Parties,
engineering, tooling, die-setting, software design and similar computer
services;
(t) Sales promotion, marketing, and after-sales service costs.
``Sales promotion, marketing, and after-sales service costs'' means the
following costs related to sales promotion, marketing, and after-sales
service:
(1) Sales and marketing promotion; media advertising; advertising
and market research; promotional and demonstration materials; exhibits;
sales conferences, trade shows and conventions; banners; marketing
displays; free samples; sales, marketing and after-sales service
literature (product brochures, catalogs, technical literature, price
lists, service manuals, sales aid information); establishment and
protection of logos and trademarks; sponsorships; wholesale and retail
restocking charges; entertainment;
(2) Sales and marketing incentives; consumer, retailer or
wholesaler rebates; merchandise incentives;
(3) Salaries and wages, sales commissions, bonuses, benefits (for
example, medical, insurance, pension), traveling and living expenses,
membership and professional fees, for sales promotion, marketing and
after-sales service personnel;
(4) Recruiting and training of sales promotion, marketing and
after-sales service personnel, and after-sales training of customers'
employees, where such costs are identified separately for sales
promotion, marketing and after-sales service of goods on the financial
statements or cost accounts of the producer;
(5) Product liability insurance;
(6) Office supplies for sales promotion, marketing and after-sales
service of goods, where such costs are identified separately for sales
promotion, marketing and after-sales service of goods on the financial
statements or cost accounts of the producer;
(7) Telephone, mail and other communications, where such costs are
identified separately for sales promotion, marketing and after-sales
service of goods on the financial statements or cost accounts of the
producer;
(8) Rent and depreciation of sales promotion, marketing and after-
sales service offices and distribution centers;
(9) Property insurance premiums, taxes, cost of utilities, and
repair and maintenance of sales promotion, marketing and after-sales
service offices and distribution centers, where such costs are
identified separately for sales promotion, marketing and after-sales
service of goods on the financial statements or cost accounts of the
producer; and
(10) Payments by the producer to other persons for warranty
repairs;
(u) Self-produced material. ``Self-produced material'' means an
originating material that is produced by a producer of a good and used
in the production of that good;
(v) Shipping and packing costs. ``Shipping and packing costs''
means the costs incurred in packing a good for shipment and shipping
the good from the point of direct shipment to the buyer, excluding the
costs of preparing and packaging the good for retail sale;
(w) Total cost. ``Total cost'' means all product costs, period
costs, and other costs for a good incurred in the territory of one or
more of the Parties. Product costs are costs that are associated with
the production of a good and include the value of materials, direct
labor costs, and direct overhead. Period costs are costs, other than
product costs, that are expensed in the period in which they
[[Page 33684]]
are incurred, such as selling expenses and general and administrative
expenses. Other costs are all costs recorded on the books of the
producer that are not product costs or period costs, such as interest.
Total cost does not include profits that are earned by the producer,
regardless of whether they are retained by the producer or paid out to
other persons as dividends, or taxes paid on those profits, including
capital gains taxes;
(x) Used. ``Used'' means used or consumed in the production of
goods; and
(y) Value. ``Value'' means the value of a good or material for
purposes of calculating customs duties or for purposes of applying this
subpart.
Sec. 10.594 Originating goods.
Except as otherwise provided in this subpart and General Note
29(m), HTSUS, a good imported into the customs territory of the United
States will be considered an originating good under the CAFTA-DR only
if:
(a) The good is wholly obtained or produced entirely in the
territory of one or more of the Parties;
(b) The good is produced entirely in the territory of one or more
of the Parties and:
(1) Each non-originating material used in the production of the
good undergoes an applicable change in tariff classification specified
in General Note 29(n), HTSUS, and the good satisfies all other
applicable requirements of General Note 29, HTSUS; or
(2) The good otherwise satisfies any applicable regional value
content or other requirements specified in General Note 29(n), HTSUS,
and satisfies all other applicable requirements of General Note 29,
HTSUS; or
(c) The good is produced entirely in the territory of one or more
of the Parties exclusively from originating materials.
Sec. 10.595 Regional value content.
(a) General. Except for goods to which paragraph (d) of this
section applies, where General Note 29(n), HTSUS, sets forth a rule
that specifies a regional value content test for a good, the regional
value content of such good must be calculated by the importer,
exporter, or producer of the good on the basis of the build-down method
described in paragraph (b) of this section or the build-up method
described in paragraph (c) of this section.
(b) Build-down method. Under the build-down method, the regional
value content must be calculated on the basis of the formula RVC =
((AV-VNM)/AV) x 100, where RVC is the regional value content, expressed
as a percentage; AV is the adjusted value of the good; and VNM is the
value of non-originating materials that are acquired and used by the
producer in the production of the good, but does not include the value
of a material that is self-produced.
(c) Build-up method. Under the build-up method, the regional value
content must be calculated on the basis of the formula RVC = (VOM/AV) x
100, where RVC is the regional value content, expressed as a
percentage; AV is the adjusted value of the good; and VOM is the value
of originating materials that are acquired or self-produced and used by
the producer in the production of the good.
(d) Special rule for certain automotive goods.
(1) General. Where General Note 29(n), HTSUS, sets forth a rule
that specifies a regional value content test for an automotive good
provided for in any of subheadings 8407.31 through 8407.34, subheading
8408.20, heading 8409, or headings 8701 through 8708, HTSUS, the
regional value content of such good may be calculated by the importer,
exporter, or producer of the good on the basis of the net cost method
described in paragraph (d)(2) of this section.
(2) Net cost method. Under the net cost method, the regional value
content is calculated on the basis of the formula RVC = ((NC-VNM)/NC) x
100, where RVC is the regional value content, expressed as a
percentage; NC is the net cost of the good; and VNM is the value of
non-originating materials that are acquired and used by the producer in
the production of the good, but does not include the value of a
material that is self-produced. Consistent with the provisions
regarding allocation of costs set out in generally accepted accounting
principles, the net cost of the good must be determined by:
(i) Calculating the total cost incurred with respect to all goods
produced by the producer of the automotive good, subtracting any sales
promotion, marketing and after-sales service costs, royalties, shipping
and packing costs, and non-allowable interest costs that are included
in the total cost of all such goods, and then reasonably allocating the
resulting net cost of those goods to the automotive good;
(ii) Calculating the total cost incurred with respect to all goods
produced by the producer of the automotive good, reasonably allocating
the total cost to the automotive good, and then subtracting any sales
promotion, marketing and after-sales service costs, royalties, shipping
and packing costs, and non-allowable interest costs that are included
in the portion of the total cost allocated to the automotive good; or
(iii) Reasonably allocating each cost that forms part of the total
costs incurred with respect to the automotive good so that the
aggregate of these costs does not include any sales promotion,
marketing and after-sales service costs, royalties, shipping and
packing costs, or non-allowable interest costs.
(3) Motor vehicles.
(i) General. For purposes of calculating the regional value content
under the net cost method for an automotive good that is a motor
vehicle provided for in any of headings 8701 through 8705, an importer,
exporter, or producer may average the amounts calculated under the
formula set forth in paragraph (d)(2) of this section over the
producer's fiscal year using any one of the categories described in
paragraph (d)(3)(ii) of this section either on the basis of all motor
vehicles in the category or those motor vehicles in the category that
are exported to the territory of one or more Parties.
(ii) Categories. The categories referred to in paragraph (d)(3)(i)
of this section are as follows:
(A) The same model line of motor vehicles, in the same class of
vehicles, produced in the same plant in the territory of a Party, as
the motor vehicle for which the regional value content is being
calculated;
(B) The same class of motor vehicles, and produced in the same
plant in the territory of a Party, as the motor vehicle for which the
regional value content is being calculated; and
(C) The same model line of motor vehicles produced in the territory
of a Party as the motor vehicle for which the regional value content is
being calculated.
(4) Other automotive goods. (i) General. For purposes of
calculating the regional value content under the net cost method for
automotive goods provided for in any of subheadings 8407.31 through
8407.34, subheading 8408.20, heading 8409, 8706, 8707, or 8708, HTSUS,
that are produced in the same plant, an importer, exporter, or producer
may:
(A) Average the amounts calculated under the formula set forth in
paragraph (d)(2) of this section over any of the following: The fiscal
year, or any quarter or month, of the motor vehicle producer to whom
the automotive good is sold, or the fiscal year, or any quarter or
month, of the producer of the automotive good, provided the goods were
produced during the fiscal year, quarter, or month that is the basis
for the calculation;
[[Page 33685]]
(B) Determine the average referred to in paragraph (d)(4)(i) of
this section separately for such goods sold to one or more motor
vehicle producers; or
(C) Make a separate determination under paragraph (d)(4)(i) or
(d)(4)(ii) for automotive goods that are exported to the territory of
one or more Parties.
(ii) Duration of use. A person selecting an averaging period of one
month or quarter under paragraph (d)(4)(i)(A) of this section must
continue to use that method for that category of automotive goods
throughout the fiscal year.
Sec. 10.596 Value of materials.
(a) Calculating the value of materials. Except as provided in Sec.
10.603, for purposes of calculating the regional value content of a
good under General Note 29(n), HTSUS, and for purposes of applying the
de minimis (see Sec. 10.598 of this subpart) provisions of General
Note 29(n), HTSUS, the value of a material is:
(1) In the case of a material imported by the producer of the good,
the adjusted value of the material;
(2) In the case of a material acquired by the producer in the
territory where the good is produced, the value, determined in
accordance with Articles 1 through 8, Article 15, and the corresponding
interpretative notes of the Customs Valuation Agreement, of the
material with reasonable modifications to the provisions of the Customs
Valuation Agreement as may be required due to the absence of an
importation by the producer (including, but not limited to, treating a
domestic purchase by the producer as if it were a sale for export to
the country of importation); or
(3) In the case of a self-produced material, the sum of:
(i) All expenses incurred in the production of the material,
including general expenses; and
(ii) An amount for profit equivalent to the profit added in the
normal course of trade.
(b) Examples. The following examples illustrate application of the
principles set forth in paragraph (a)(2) of this section:
Example 1. A producer in El Salvador purchases material x from
an unrelated seller in El Salvador for $100. Under the provisions of
Article 1 of the Customs Valuation Agreement, transaction value is
the price actually paid or payable for the goods when sold for
export to the country of importation adjusted in accordance with the
provisions of Article 8. In order to apply Article 1 to this
domestic purchase by the producer, such purchase is treated as if it
were a sale for export to the country of importation. Therefore, for
purposes of determining the adjusted value of material x, Article 1
transaction value is the price actually paid or payable for the
goods when sold to the producer in El Salvador ($100), adjusted in
accordance with the provisions of Article 8. In this example, it is
irrelevant whether material x was initially imported into El
Salvador by the seller (or by anyone else). So long as the producer
acquired material x in El Salvador, it is intended that the value of
material x will be determined on the basis of the price actually
paid or payable by the producer adjusted in accordance with the
provisions of Article 8.
Example 2. Same facts as in Example 1, except that the sale
between the seller and the producer is subject to certain
restrictions that preclude the application of Article 1. Under
Article 2 of the Customs Valuation Agreement, the value is the
transaction value of identical goods sold for export to the same
country of importation and exported at or about the same time as the
goods being valued. In order to permit the application of Article 2
to the domestic acquisition by the producer, it should be modified
so that the value is the transaction value of identical goods sold
within El Salvador at or about the same time the goods were sold to
the producer in El Salvador. Thus, if the seller of material x also
sold an identical material to another buyer in El Salvador without
restrictions, that other sale would be used to determine the
adjusted value of material x.
(c) Permissible additions to, and deductions from, the value of
materials.
(1) Additions to originating materials. For originating materials,
the following expenses, if not included under paragraph (a) of this
section, may be added to the value of the originating material:
(i) The costs of freight, insurance, packing, and all other costs
incurred in transporting the material within or between the territory
of one or more of the Parties to the location of the producer;
(ii) Duties, taxes, and customs brokerage fees on the material paid
in the territory of one or more of the Parties, other than duties and
taxes that are waived, refunded, refundable, or otherwise recoverable,
including credit against duty or tax paid or payable; and
(iii) The cost of waste and spoilage resulting from the use of the
material in the production of the good, less the value of renewable
scrap or byproducts.
(2) Deductions from non-originating materials. For non-originating
materials, if included under paragraph (a) of this section, the
following expenses may be deducted from the value of the non-
originating material:
(i) The costs of freight, insurance, packing, and all other costs
incurred in transporting the material within or between the territory
of one or more of the Parties to the location of the producer;
(ii) Duties, taxes, and customs brokerage fees on the material paid
in the territory of one or more of the Parties, other than duties and
taxes that are waived, refunded, refundable, or otherwise recoverable,
including credit against duty or tax paid or payable;
(iii) The cost of waste and spoilage resulting from the use of the
material in the production of the good, less the value of renewable
scrap or by-products; and
(iv) The cost of originating materials used in the production of
the non-originating material in the territory of one or more of the
Parties.
(d) Accounting method. Any cost or value referenced in General Note
29, HTSUS, and this subpart, must be recorded and maintained in
accordance with the Generally Accepted Accounting Principles applicable
in the territory of the Party in which the good is produced.
Sec. 10.597 Accumulation.
(a) Originating materials from the territory of one or more of the
Parties that are used in the production of a good in the territory of
another Party will be considered to originate in the territory of that
other Party.
(b) A good that is produced in the territory of one or more of the
Parties by one or more producers is an originating good if the good
satisfies the requirements of Sec. 10.594 of this subpart and all
other applicable requirements of General Note 29, HTSUS.
Sec. 10.598 De minimis.
(a) General. Except as provided in paragraphs (b) and (c) of this
section, a good that does not undergo a change in tariff classification
pursuant to General Note 29(n), HTSUS, is an originating good if:
(1) The value of all non-originating materials used in the
production of the good that do not undergo the applicable change in
tariff classification does not exceed 10 percent of the adjusted value
of the good;
(2) The value of the non-originating materials described in
paragraph (a)(1) of this section is included in the value of non-
originating materials for any applicable regional value content
requirement for the good under General Note 29(n), HTSUS; and
(3) The good meets all other applicable requirements of General
Note 29, HTSUS.
(b) Exceptions. Paragraph (a) does not apply to:
(1) A non-originating material provided for in Chapter 4, HTSUS, or
a non-originating dairy preparation containing over 10 percent by
weight of milk solids provided for in subheading 1901.90 or 2106.90,
HTSUS, that is used
[[Page 33686]]
in the production of a good provided for in Chapter 4, HTSUS;
(2) A non-originating material provided for in Chapter 4, HTSUS, or
a non-originating dairy preparation containing over 10 percent by
weight of milk solids provided for in subheading 1901.90, HTSUS, that
is used in the production of the following goods:
(i) Infant preparations containing over 10 percent by weight of
milk solids provided for in subheading 1901.10, HTSUS;
(ii) Mixes and doughs, containing over 25 percent by weight of
butterfat, not put up for retail sale, provided for in subheading
1901.20, HTSUS;
(iii) Dairy preparations containing over 10 percent by weight of
milk solids provided for in subheading 1901.90 or 2106.90, HTSUS;
(iv) Goods provided for in heading 2105, HTSUS;
(v) Beverages containing milk provided for in subheading 2202.90,
HTSUS; and
(vi) Animal feeds containing over 10 percent by weight of milk
solids provided for in subheading 2309.90, HTSUS; and
(3) A non-originating material provided for in heading 0805, HTSUS,
or any of subheadings 2009.11 through 2009.39, HTSUS, that is used in
the production of a good provided for in any of subheadings 2009.11
through 2009.39, HTSUS, or in fruit or vegetable juice of any single
fruit or vegetable, fortified with minerals or vitamins, concentrated
or unconcentrated, provided for in subheading 2106.90 or 2202.90,
HTSUS;
(4) A non-originating material provided for in heading 0901 or
2101, HTSUS, that is used in the production of a good provided for in
heading 0901 or 2101, HTSUS;
(5) A non-originating material provided for in heading 1006, HTSUS,
that is used in the production of a good provided for in heading 1102
or 1103, HTSUS, or subheading 1904.90, HTSUS;
(6) A non-originating material provided for in Chapter 15, HTSUS,
that is used in the production of a good provided for in Chapter 15,
HTSUS;
(7) A non-originating material provided for in heading 1701, HTSUS,
that is used in the production of a good provided for in any of
headings 1701 through 1703, HTSUS;
(8) A non-originating material provided for in Chapter 17, HTSUS,
that is used in the production of a good provided for in subheading
1806.10, HTSUS; and
(9) Except as provided in paragraphs (b)(1) through (b)(8) of this
section and General Note 29(n), HTSUS, a non-originating material used
in the production of a good provided for in any of Chapters 1 through
24, HTSUS, unless the non-originating material is provided for in a
different subheading than the good for which origin is being determined
under this subpart.
(c) Textile and apparel goods. (1) General. Except as provided in
paragraph (c)(2) of this section, a textile or apparel good that is not
an originating good because certain fibers or yarns used in the
production of the component of the good that determines the tariff
classification of the good do not undergo an applicable change in
tariff classification set out in General Note 29(n), HTSUS, will
nevertheless be considered to be an originating good if:
(i) The total weight of all such fibers or yarns in that component
is not more than 10 percent of the total weight of that component; or
(ii) The yarns are nylon filament yarns (other than elastomeric
yarns) that are provided for in subheading 5402.10.30, 5402.10.60,
5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90,
5402.51.00, or 5402.61.00, HTSUS, and that are products of Canada,
Mexico, or Israel.
(2) Exception for goods containing elastomeric yarns. A textile or
apparel good containing elastomeric yarns (excluding latex) in the
component of the good that determines the tariff classification of the
good will be considered an originating good only if such yarns are
wholly formed in the territory of a Party. For purposes of this
paragraph, ``wholly formed'' means that all the production processes
and finishing operations, starting with the extrusion of filaments,
strips, film, or sheet, and including slitting a film or sheet into
strip, or the spinning of all fibers into yarn, or both, and ending
with a finished yarn or plied yarn, took place in the territory of a
Party.
(3) Yarn, fabric, or fiber. For purposes of paragraph (c) of this
section, in the case of a textile or apparel good that is a yarn,
fabric, or group of fibers, the term ``component of the good that
determines the tariff classification of the good'' means all of the
fibers in the yarn, fabric, or group of fibers.
Sec. 10.599 Fungible goods and materials.
(a) General. A person claiming that a fungible good or material is
an originating good may base the claim either on the physical
segregation of the fungible good or material or by using an inventory
management method with respect to the fungible good or material. For
purposes of this section, the term ``inventory management method''
means:
(1) Averaging;
(2) ``Last-in, first-out;''
(3) ``First-in, first-out;'' or
(4) Any other method that is recognized in the Generally Accepted
Accounting Principles of the Party in which the production is performed
or otherwise accepted by that country.
(b) Duration of use. A person selecting an inventory management
method under paragraph (a) of this section for a particular fungible
good or material must continue to use that method for that fungible
good or material throughout the fiscal year of that person.
Sec. 10.600 Accessories, spare parts, or tools.
(a) General. Accessories, spare parts, or tools that are delivered
with a good and that form part of the good's standard accessories,
spare parts, or tools will be treated as originating goods if the good
is an originating good, and will be disregarded in determining whether
all the non-originating materials used in the production of the good
undergo an applicable change in tariff classification specified in
General Note 29(n), HTSUS, provided that:
(1) The accessories, spare parts, or tools are classified with, and
not invoiced separately from, the good, regardless of whether they
appear specified or separately identified in the invoice for the good;
and
(2) The quantities and value of the accessories, spare parts, or
tools are customary for the good.
(a) Regional value content. If the good is subject to a regional
value content requirement, the value of the accessories, spare parts,
or tools is taken into account as originating or non-originating
materials, as the case may be, in calculating the regional value
content of the good under Sec. 10.595 of this subpart.
Sec. 10.601 Retail packaging materials and containers.
(a) Effect on tariff shift rule. Packaging materials and containers
in which a good is packaged for retail sale, if classified with the
good for which preferential tariff treatment under the CAFTA-DR is
claimed, will be disregarded in determining whether all non-originating
materials used in the production of the good undergo the applicable
change in tariff classification set out in General Note 29(n), HTSUS.
(b) Effect on regional value content calculation. If the good is
subject to a regional value content requirement, the value of such
packaging materials and containers will be taken into account as
originating or non-originating materials, as the case may be, in
calculating the regional value content of the good.
[[Page 33687]]
Example 1. Guatemalan Producer A of good C imports 100 non-
originating blister packages to be used as retail packaging for good
C. As provided in Sec. 10.596(a)(1) of this subpart, the value of
the blister packages is their adjusted value, which in this case is
$10. Good C has a regional value content requirement. The United
States importer of good C decides to use the build-down method, RVC
= ((AV-VNM)/AV) x 100 (see Sec. 10.595(b) of this subpart), in
determining whether good C satisfies the regional value content
requirement. In applying this method, the non-originating blister
packages are taken into account as non-originating. As such, their
$10 adjusted value is included in the VNM, value of non-originating
materials, of good C.
Example 2. Same facts as in Example 1, except that the blister
packages are originating. In this case, the adjusted value of the
originating blister packages would not be included as part of the
VNM of good C under the build-down method. However, if the U.S.
importer had used the build-up method, RVC = (VOM/AV) x100 (see
Sec. 10.595(c) of this subpart), the adjusted value of the blister
packaging would be included as part of the VOM, value of originating
material.
Sec. 10.602 Packing materials and containers for shipment.
(a) Effect on tariff shift rule. Packing materials and containers
for shipment, as defined in Sec. 10.593(m) of this subpart, are to be
disregarded in determining whether the non-originating materials used
in the production of the good undergo an applicable change in tariff
classification set out in General Note 29(n), HTSUS. Accordingly, such
materials and containers are not required to undergo the applicable
change in tariff classification even if they are non-originating.
(b) Effect on regional value content calculation. Packing materials
and containers for shipment, as defined in Sec. 10.593(m) of this
subpart, are to be disregarded in determining the regional value
content of a good imported into the United States. Accordingly, in
applying the build-down, build-up, or net cost method for determining
the regional value content of a good imported into the United States,
the value of such packing materials and containers for shipment
(whether originating or non-originating) is disregarded and not
included in AV, adjusted value, VNM, value of non-originating
materials, VOM, value of originating materials, or NC, net cost of a
good.
Example. Producer A of the Dominican Republic produces good C.
Producer A ships good C to the United States in a shipping container
that it purchased from Company B in the Dominican Republic. The
shipping container is originating. The value of the shipping
container determined under section Sec. 10.596(a)(2) of this
subpart is $3. Good C is subject to a regional value content
requirement. The transaction value of good C is $100, which includes
the $3 shipping container. The United States importer decides to use
the build-up method, RVC = (VOM/AV) x 100 (see Sec. 10.595(c) of
this subpart), in determining whether good C satisfies the regional
value content requirement. In determining the AV, adjusted value, of
good C imported into the U.S., paragraph (b) of this section and the
definition of AV require a $3 deduction for the value of the
shipping container. Therefore, the AV is $97 ($100-$3). In addition,
the value of the shipping container is disregarded and not included
in the VOM, value of originating materials.
Sec. 10.603 Indirect materials.
An indirect material, as defined in Sec. 10.582(m) of this
subpart, will be considered to be an originating material without
regard to where it is produced.
Example. Honduran Producer C produces good C using non-
originating material A. Producer C imports non-originating rubber
gloves for use by workers in the production of good C. Good C is
subject to a tariff shift requirement. As provided in Sec.
10.594(b)(1) of this subpart and General Note 29(n), each of the
non-originating materials in good C must undergo the specified
change in tariff classification in order for good C to be considered
originating. Although non-originating material A must undergo the
applicable tariff shift in order for good C to be considered
originating, the rubber gloves do not because they are indirect
materials and are considered originating without regard to where
they are produced.
Sec. 10.604 Transit and transshipment.
(a) General. A good that has undergone production necessary to
qualify as an originating good under Sec. 10.594 of this subpart will
not be considered an originating good if, subsequent to that
production, the good:
(1) Undergoes further production or any other operation outside the
territories of the Parties, other than unloading, reloading, or any
other operation necessary to preserve the good in good condition or to
transport the good to the territory of a Party; or
(2) Does not remain under the control of customs authorities in the
territory of a non-Party.
(b) Documentary evidence. An importer making a claim that a good is
originating may be required to demonstrate, to CBP's satisfaction, that
the conditions and requirements set forth in paragraph (a) of this
section were met. An importer may demonstrate compliance with this
section by submitting documentary evidence. Such evidence may include,
but is not limited to, bills of lading, airway bills, packing lists,
commercial invoices, receiving and inventory records, and customs entry
and exit documents.
Sec. 10.605 Goods classifiable as goods put up in sets.
Notwithstanding the specific rules set forth in General Note 29(n),
HTSUS, goods classifiable as goods put up in sets for retail sale as
provided for in General Rule of Interpretation 3, HTSUS, will not be
considered to be originating goods unless:
(a) Each of the goods in the set is an originating good; or
(b) The total value of the non-originating goods in the set does
not exceed;
(1) In the case of textile or apparel goods, 10 percent of the
adjusted value of the set; or
(2) In the case of a good other than a textile or apparel good, 15
percent of the adjusted value of the set.
Tariff Preference Level
Sec. 10.606 Filing of claim for tariff preference level.
A cotton or man-made fiber apparel good of Nicaragua described in
Sec. 10.607 of this subpart that does not qualify as an originating
good under Sec. 10.594 of this subpart may nevertheless be entitled to
preferential tariff treatment under the CAFTA-DR under an applicable
tariff preference level (TPL). To make a TPL claim, the importer must
include on the entry summary, or equivalent documentation, the
applicable subheading in Chapter 99 of the HTSUS (9915.61.01)
immediately above the applicable subheading in Chapter 61 or 62 of the
HTSUS under which each non-originating cotton or man-made fiber apparel
good is classified.
Sec. 10.607 Goods eligible for tariff preference level claims.
Goods eligible for a TPL claim consist of cotton or man-made fiber
apparel goods provided for in U.S. Note 15(b), Subchapter XV, Chapter
99, HTSUS, that are both cut (or knit-to-shape) and sewn or otherwise
assembled in the territory of Nicaragua, and that meet the applicable
conditions for preferential tariff treatment under the CAFTA-DR, other
than the condition that they are originating goods. The preferential
tariff treatment is limited to the quantities specified in U.S. Note
15(c), Subchapter XV, Chapter 99, HTSUS.
Sec. 10.608 Submission of certificate of eligibility.
An importer who claims preferential tariff treatment on a non-
originating cotton or man-made fiber apparel good must submit a
certificate of eligibility issued by an authorized official of the
Government of Nicaragua, demonstrating that the good is eligible
[[Page 33688]]
for entry under the applicable TPL, as set forth in Sec. 10.607 of
this subpart. The certificate of eligibility must be in writing or must
be transmitted electronically pursuant to any electronic means
authorized by CBP for that purpose.
Sec. 10.609 Transshipment of non-originating cotton or man-made fiber
apparel goods.
(a) General. A good will not be considered eligible for
preferential tariff treatment under an applicable TPL by reason of
having undergone production that would enable the good to qualify for
preferential tariff treatment if subsequent to that production the
good:
(1) Undergoes production or any other operation outside the
territories of the Parties, other than unloading, reloading, or any
other operation necessary to preserve the good in good condition or to
transport the good to the territory of a Party; or
(2) Does not remain under the control of customs authorities in the
territory of a non-Party.
(b) Documentary evidence. An importer making a claim for
preferential tariff treatment under an applicable TPL may be required
to demonstrate, to CBP's satisfaction, that the requirements set forth
in paragraph (a) of this section were met. An importer may demonstrate
compliance with these requirements by submitting documentary evidence.
Such evidence may include, but is not limited to, bills of lading,
airway bills, packing lists, commercial invoices, receiving and
inventory records, and customs entry and exit documents.
Sec. 10.610 Effect of noncompliance; failure to provide documentation
regarding transshipment of non-originating cotton or man-made fiber
apparel goods.
(a) Effect of noncompliance. If an importer of a good for which a
TPL claim is made fails to comply with any applicable requirement under
this subpart, the port director may deny preferential tariff treatment
to the imported good.
(b) Failure to provide documentation regarding transshipment. Where
the requirements for preferential tariff treatment set forth elsewhere
in this subpart are met, the port director nevertheless may deny
preferential tariff treatment to a good for which a TPL claim is made
if the good is shipped through or transshipped in a country other than
a Party, and the importer of the good does not provide, at the request
of the port director, evidence demonstrating to the satisfaction of the
port director that the requirements set forth in Sec. 10.609(a) of
this subpart were met.
Origin Verifications and Determinations
Sec. 10.616 Verification and justification of claim for preferential
tariff treatment.
(a) Verification. A claim for preferential tariff treatment made
under Sec. 10.583(b) of this subpart, including any statements or
other information submitted to CBP in support of the claim, will be
subject to such verification as the port director deems necessary. In
the event that the port director is provided with insufficient
information to verify or substantiate the claim, or the exporter or
producer fails to consent to a verification visit, the port director
may deny the claim for preferential treatment. A verification of a
claim for preferential tariff treatment under CAFTA-DR for goods
imported into the United States may be conducted by means of one or
more of the following:
(1) Written requests for information from the importer, exporter,
or producer;
(2) Written questionnaires to the importer, exporter, or producer;
(3) Visits to the premises of the exporter or producer in the
territory of the Party in which the good is produced, to review the
records of the type referred to in Sec. 10.589(c)(1) of this subpart
or to observe the facilities used in the production of the good, in
accordance with the framework that the Parties develop for conducting
verifications; and
(4) Such other procedures to which the Parties may agree.
(b) Applicable accounting principles. When conducting a
verification of origin to which Generally Accepted Accounting
Principles may be relevant, CBP will apply and accept the Generally
Accepted Accounting Principles applicable in the country of production.
Sec. 10.617 Special rule for verifications in a Party of U.S. imports
of textile and apparel goods.
(a) Procedures to determine whether a claim of origin is accurate.
(1) General. For the purpose of determining that a claim of origin for
a textile or apparel good is accurate, CBP may request that the
government of a Party conduct a verification, regardless of whether a
claim is made for preferential tariff treatment.
(2) Actions during a verification. While a verification under this
paragraph is being conducted, CBP may take appropriate action, which
may include:
(i) Suspending the application of preferential tariff treatment to
the textile or apparel good for which a claim for preferential tariff
treatment has been made, if CBP determines there is insufficient
information to support the claim;
(ii) Denying the application of preferential tariff treatment to
the textile or apparel good for which a claim for preferential tariff
treatment has been made that is the subject of a verification if CBP
determines that an enterprise has provided incorrect information to
support the claim;
(iii) Detention of any textile or apparel good exported or produced
by the enterprise subject to the verification if CBP determines there
is insufficient information to determine the country of origin of any
such good; and
(iv) Denying entry to any textile or apparel good exported or
produced by the enterprise subject to the verification if CBP
determines that the enterprise has provided incorrect information as to
the country of origin of any such good.
(3) Actions following a verification. On completion of a
verification under this paragraph, CBP may take appropriate action,
which may include:
(i) Denying the application of preferential tariff treatment to the
textile or apparel good for which a claim for preferential tariff
treatment has been made that is the subject of a verification if CBP
determines there is insufficient information, or that the enterprise
has provided incorrect information, to support the claim; and
(ii) Denying entry to any textile or apparel good exported or
produced by the enterprise subject to the verification if CBP
determines there is insufficient information to determine, or that the
enterprise has provided incorrect information as to, the country of
origin of any such good.
(b) Procedures to determine compliance with applicable customs laws
and regulations of the U.S. (1) General. For purposes of enabling CBP
to determine that an exporter or producer is complying with applicable
customs laws, regulations, and procedures regarding trade in textile
and apparel goods, CBP may request that the government of a Party
conduct a verification.
(2) Actions during a verification. While a verification under this
paragraph is being conducted, CBP may take appropriate action, which
may include:
(i) Suspending the application of preferential tariff treatment to
any textile or apparel good exported or produced by the enterprise
subject to the verification if CBP determines there is insufficient
information to support a claim for preferential tariff treatment with
respect to any such good;
[[Page 33689]]
(ii) Denying the application of preferential tariff treatment to
any textile or apparel good exported or produced by the enterprise
subject to the verification if CBP determines that the enterprise has
provided incorrect information to support a claim for preferential
tariff treatment with respect to any such good;
(iii) Detention of any textile or apparel good exported or produced
by the enterprise subject to the verification if CBP determines there
is insufficient information to determine the country of origin of any
such good; and
(iv) Denying entry to any textile or apparel good exported or
produced by the enterprise subject to the verification if CBP
determines that the enterprise has provided incorrect information as to
the country of origin of any such good.
(3) Actions following a verification. On completion of a
verification under this paragraph, CBP may take appropriate action,
which may include:
(i) Denying the application of preferential tariff treatment to any
textile or apparel good exported or produced by the enterprise subject
to the verification if CBP determines there is insufficient
information, or that the enterprise has provided incorrect information,
to support a claim for preferential tariff treatment with respect to
any such good; and
(ii) Denying entry to any to any textile or apparel good exported
or produced by the enterprise subject to the verification if CBP
determines there is insufficient information to determine, or that the
enterprise has provided incorrect information as to, the country of
origin of any such good.
(c) Denial of permission to conduct a verification. If an
enterprise does not consent to a verification under this section, CBP
may deny preferential tariff treatment to the type of goods of the
enterprise that would have been the subject of the verification.
(d) Assistance by U.S. officials in conducting a verification
abroad. U.S. officials may undertake or assist in a verification under
this section by conducting visits in the territory of a Party, along
with the competent authorities of the Party, to the premises of an
exporter, producer or any other enterprise involved in the movement of
textile or apparel goods from a Party to the United States.
(e) Continuation of appropriate action. CBP may continue to take
appropriate action under paragraph (a) or (b) of this section until it
receives information sufficient to enable it to make the determination
described in paragraphs (a) and (b) of this section.
Sec. 10.618 Issuance of negative origin determinations.
If, as a result of an origin verification initiated under this
subpart, CBP determines that a claim for preferential tariff treatment
made under Sec. 10.583(b) of this subpart should be denied, it will
issue a determination in writing or via an authorized electronic data
interchange system to the importer that sets forth the following:
(a) A description of the good that was the subject of the
verification together with the identifying numbers and dates of the
import documents pertaining to the good;
(b) A statement setting forth the findings of fact made in
connection with the verification and upon which the determination is
based; and
(c) With specific reference to the rules applicable to originating
goods as set forth in General Note 29, HTSUS, and in Sec. Sec. 10.593
through 10.605 of this subpart, the legal basis for the determination.
Sec. 10.619 Repeated false or unsupported preference claims.
Where verification or other information reveals a pattern of
conduct by an importer, exporter, or producer of false or unsupported
representations that goods qualify under the CAFTA-DR rules of origin
set forth in General Note 29, HTSUS, CBP may suspend preferential
tariff treatment under the CAFTA-DR to entries of identical goods
covered by subsequent representations by that importer, exporter, or
producer until CBP determines that representations of that person are
in conformity with General Note 29, HTSUS.
Penalties
Sec. 10.620 General.
Except as otherwise provided in this subpart, all criminal, civil,
or administrative penalties which may be imposed on U.S. importers,
exporters, and producers for violations of the customs and related laws
and regulations will also apply to U.S. importers, exporters, and
producers for violations of the laws and regulations relating to the
CAFTA-DR.
Sec. 10.621 Corrected claim or certification by importers.
An importer who makes a corrected claim under Sec. 10.583(c) of
this subpart will not be subject to civil or administrative penalties
under 19 U.S.C. 1592 for having made an incorrect claim or having
submitted an incorrect certification, provided that the corrected claim
is promptly and voluntarily made.
Sec. 10.622 Corrected certification by U.S. exporters or producers.
Civil or administrative penalties provided for under 19 U.S.C. 1592
will not be imposed on an exporter or producer in the United States who
promptly and voluntarily provides written notification pursuant to
Sec. 10.589(b) with respect to the making of an incorrect
certification.
Sec. 10.623 Framework for correcting claims or certifications.
(a) ``Promptly and voluntarily'' defined. Except as provided for in
paragraph (b) of this section, for purposes of this subpart, the making
of a corrected claim or certification by an importer or the providing
of written notification of an incorrect certification by an exporter or
producer in the United States will be deemed to have been done promptly
and voluntarily if:
(1)(i) Done before the commencement of a formal investigation,
within the meaning of Sec. 162.74(g) of this chapter; or
(ii) Done before any of the events specified in Sec. 162.74(i) of
this chapter have occurred; or
(iii) Done within 30 days after the importer, exporter, or producer
initially becomes aware that the claim or certification is incorrect;
and
(2) Accompanied by a statement setting forth the information
specified in paragraph (c) of this section; and
(3) In the case of a corrected claim or certification by an
importer, accompanied or followed by a tender of any actual loss of
duties and merchandise processing fees, if applicable, in accordance
with paragraph (d) of this section.
(b) Exception in cases involving fraud or subsequent incorrect
claims-- (1) Fraud. Notwithstanding paragraph (a) of this section, a
person who acted fraudulently in making an incorrect claim or
certification may not make a voluntary correction of that claim or
certification. For purposes of this paragraph, the term ``fraud'' will
have the meaning set forth in paragraph (C)(3) of Appendix B to Part
171 of this chapter.
(2) Subsequent incorrect claims. An importer who makes one or more
incorrect claims after becoming aware that a claim involving the same
merchandise and circumstances is invalid may not make a voluntary
correction of the subsequent claims pursuant to paragraph (a) of this
section.
(c) Statement. For purposes of this subpart, each corrected claim
or certification must be accompanied by a statement, submitted in
writing or via
[[Page 33690]]
an authorized electronic data interchange system, which:
(1) Identifies the class or kind of good to which the incorrect
claim or certification relates;
(2) In the case of a corrected claim or certification by an
importer, identifies each affected import transaction, including each
port of importation and the approximate date of each importation;
(3) Specifies the nature of the incorrect statements or omissions
regarding the claim or certification; and
(4) Sets forth, to the best of the person's knowledge, the true and
accurate information or data which should have been covered by or
provided in the claim or certification, and states that the person will
provide any additional information or data which are unknown at the
time of making the corrected claim or certification within 30 days or
within any extension of that 30-day period as CBP may permit in order
for the person to obtain the information or data.
(d) Tender of actual loss of duties. A U.S. importer who makes a
corrected claim must tender any actual loss of duties at the time of
making the corrected claim, or within 30 days thereafter, or within any
extension of that 30-day period as CBP may allow in order for the
importer to obtain the information or data necessary to calculate the
duties owed.
Goods Returned After Repair or Alteration
Sec. 10.624 Goods re-entered after repair or alteration in a Party.
(a) General. This section sets forth the rules which apply for
purposes of obtaining duty-free treatment on goods returned after
repair or alteration in a Party as provided for in subheadings
9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been
repaired or altered in a Party, whether or not pursuant to a warranty,
are eligible for duty-free treatment, provided that the requirements of
this section are met. For purposes of this section, ``repairs or
alterations'' means restoration, addition, renovation, re-dyeing,
cleaning, re-sterilizing, or other treatment that does not destroy the
essential characteristics of, or create a new or commercially different
good from, the good exported from the United States.
(b) Goods not eligible for duty-free treatment after repair or
alteration. The duty-free treatment referred to in paragraph (a) of
this section will not apply to goods which, in their condition as
exported from the United States to a Party, are incomplete for their
intended use and for which the processing operation performed in the
Party constitutes an operation that is performed as a matter of course
in the preparation or manufacture of finished goods.
(c) Documentation. The provisions of paragraphs (a), (b), and (c)
of Sec. 10.8 of this part, relating to the documentary requirements
for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS,
will apply in connection with the entry of goods which are returned
from a Party after having been exported for repairs or alterations and
which are claimed to be duty free.
Retroactive Preferential Tariff Treatment for Textile and Apparel Goods
Sec. 10.625 Refunds of excess customs duties.
(a) Applicability. Section 205 of the Dominican Republic--Central
America--United States Free Trade Agreement Implementation Act, as
amended by section 1634(d) of the Pension Protection Act of 2006,
provides for the retroactive application of the Agreement and payment
of refunds for any excess duties paid with respect to entries of
textile and apparel goods of eligible CAFTA-DR countries that meet
certain conditions and requirements. Those conditions and requirements
are set forth in paragraphs (b) and (c) of this section.
(b) General. Notwithstanding 19 U.S.C. 1514 or any other provision
of law, and subject to paragraph (c) of this section, a textile or
apparel good of an eligible CAFTA-DR country that was entered or
withdrawn from warehouse for consumption on or after January 1, 2004,
and before the date of the entry into force of the Agreement with
respect to the last CAFTA-DR country will be liquidated or reliquidated
at the applicable rate of duty for that good set out in the Schedule of
the United States to Annex 3.3 of the Agreement, and CBP will refund
any excess customs duties paid with respect to such entry, with
interest accrued from the date of entry, provided:
(1) The good would have qualified as an originating good under
section 203 of the Act if the good had been entered after the date of
entry into force of the Agreement for that country; and
(2) Customs duties in excess of the applicable rate of duty for
that good set out in the Schedule of the United States to Annex 3.3 of
the Agreement were paid.
(c) Request for liquidation or reliquidation. Liquidation or
reliquidation may be made under paragraph (b) of this section with
respect to an entry of a textile or apparel good of an eligible CAFTA-
DR country only if a request for liquidation or reliquidation is filed
with the CBP port where the entry was originally filed within 90 days
after the date of the entry into force of the Agreement for the last
CAFTA-DR country, and the request contains sufficient information to
enable CBP:
(1) To locate the entry or to reconstruct the entry if it cannot be
located; and
(2) To determine that the good satisfies the conditions set forth
in paragraph (b) of this section.
(d) Definitions. For purposes of this section:
(1) ``Eligible CAFTA-DR country'' means a country that the United
States Trade Representative has determined, by notice published in the
Federal Register, to be an eligible country for purposes of section 205
of the Act;
(2) ``Last CAFTA-DR country'' means, of Costa Rica, the Dominican
Republic, El Salvador, Guatemala, Honduras, and Nicaragua, the last
country for which the Agreement enters into force; and
(3) ``Textile or apparel good'' means a good listed in the Annex to
the Agreement on Textiles and Clothing referred to in section 101(d)(4)
of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)), other than
a good listed in Annex 3.29 of the Agreement.
PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE
0
4. The general authority citation for part 24 and specific authority
for Sec. 24.23 continue to read as follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General
Note 3(i), Harmonized Tariff Schedule of the United States), 1505,
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 9701; Public Law 107-
296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).
* * * * *
Section 24.23 also issued under 19 U.S.C. 3332;
* * * * *
0
5. Section 24.23 is amended by adding a new paragraph (c)(9) to read as
follows:
Sec. 24.23 Fees for processing merchandise.
* * * * *
(c) * * *
(9) The ad valorem fee, surcharge, and specific fees provided under
paragraphs (b)(1) and (b)(2)(i) of this section will not apply to goods
that qualify as originating goods under section 203 of the Dominican
Republic-Central America-United States Free Trade
[[Page 33691]]
Agreement Implementation Act (see also General Note 29, HTSUS) that are
entered, or withdrawn from warehouse for consumption, on or after
January 1, 2005.
PART 162--INSPECTION, SEARCH, AND SEIZURE
0
6. The authority citation for part 162 continues to read in part as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1592, 1593a, 1624.
* * * * *
0
7. Section 162.0 is amended by revising the last sentence to read as
follows:
Sec. 162.0 Scope.
* * * Additional provisions concerning records maintenance and
examination applicable to U.S. importers, exporters and producers under
the U.S.-Chile Free Trade Agreement, the U.S.-Singapore Free Trade
Agreement, the Dominican Republic-Central America-U.S. Free Trade
Agreement, and the U.S.-Morocco Free Trade Agreement are contained in
Part 10, Subparts H, I, J, and M of this chapter, respectively.
PART 163--RECORDKEEPING
0
8. 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
9. Section 163.1(a)(2) is amended by redesignating paragraphs (a)(2)(x)
and (a)(2)(xi) as paragraphs (a)(2)(xi) and (a)(2)(xii), and adding a
new paragraph (a)(2)(x) to read as follows:
Sec. 163.1 Definitions.
* * * * *
(a) * * *
(2) * * *
(x) The maintenance of any documentation that the importer may have
in support of a claim for preferential tariff treatment under the
Dominican Republic-Central America-United States Free Trade Agreement
(CAFTA-DR), including an CAFTA-DR importer's certification.
* * * * *
0
10. The Appendix to part 163 is amended by adding a new listing under
section IV in numerical order to read as follows:
Appendix to Part 163--Interim (a)(1)(A) List
* * * * *
IV. * * *
Sec. 10.585 CAFTA-DR records that the importer may have in support of
a CAFTA-DR claim for preferential tariff treatment, including an
importer's certification.
* * * * *
PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS
0
11. 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.
0
12. Section 178.2 is amended by adding new listings for ``Sec. Sec.
10.583 and 10.584'' to the table in numerical order to read as follows:
Sec. 178.2 Listing of OMB control numbers.
------------------------------------------------------------------------
19 CFR Section Description OMB control No.
------------------------------------------------------------------------
* * * * * * *
Sec. Sec. 10.583 and Claim for 1651-0125
10.584.. preferential tariff
treatment under the
Dominican Republic-
Central America-US
Free Trade
Agreement..
* * * * * * *
------------------------------------------------------------------------
* * * * *
W. Ralph Basham,
Commissioner, U.S. Customs and Border Protection.
Approved: June 9, 2008.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. E8-13252 Filed 6-12-08; 8:45 am]
BILLING CODE 9111-14-P