[Federal Register Volume 75, Number 181 (Monday, September 20, 2010)]
[Notices]
[Pages 57293-57295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-23396]


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 INTERNATIONAL TRADE COMMISSION

[Investigation No. 1205-9]


Certain Festive Articles: Recommendations for Modifying the 
Harmonized Tariff Schedule of the United States

AGENCY: United States International Trade Commission.

ACTION: Notice of institution of investigation and opportunity to 
present written views on proposed recommendations.

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SUMMARY: Following receipt of a letter from U.S. Customs and Border 
Protection (CBP), the Commission instituted investigation No. 1205-9, 
Certain Festive Articles: Recommendations for Modifying the Harmonized 
Tariff Schedule of the United States, pursuant to section 1205 of the 
Omnibus Trade and Competitiveness Act of 1988 (19 U.S.C. 3005), for the 
purpose of making recommendations to the President regarding the 
addition of a U.S. note and the amendment or replacement of certain 
classification provisions in subchapter XVII of chapter 98 of the 
Harmonized Tariff Schedule of the United States (HTS) relating to 
certain utilitarian articles that incorporate a festive design, 
decoration, emblem, or motif.

DATES: October 22, 2010: Deadline for filing written views relating to 
the Commission's proposed recommendations.
    November 29, 2010: Transmittal of the Commission's recommendations 
to the President.

ADDRESSES: All Commission offices are located in the United States 
International Trade Commission Building, 500 E Street, SW., Washington, 
DC. All written submissions should be addressed to the Secretary, 
United States International Trade Commission, 500 E Street, SW., 
Washington, DC 20436. The public record for this collection of 
proposals may be viewed on the Commission's electronic docket (EDIS) at 
http://www.usitc.gov/secretary/edis.htm.

FOR FURTHER INFORMATION CONTACT: Fred Schottman, Nomenclature Analyst 
(202-205-2077, [email protected]), or Janis L. Summers, Attorney 
Advisor (202-205-2605, [email protected]), of the Office of 
Tariff Affairs and Trade Agreements (fax 202-205-2616). The media 
should contact Margaret O'Laughlin, Office of External Affairs (202-
205-1819), [email protected]). Hearing impaired individuals 
may obtain information on this matter by contacting the Commission's 
TDD terminal at 202-205-1810. General information concerning the 
Commission may also be obtained by accessing its Internet Web site 
(http://www.usitc.gov). Persons with mobility impairments who will need 
special assistance in gaining access to the Commission should contact 
the Office of the Secretary at 202-205-2000.
    Background: Section 1205(a) of the Omnibus Trade and 
Competitiveness Act of 1988 (the 1988 Act) (19 U.S.C. 3005(a)) provides 
that the Commission shall keep the HTS under continuous review and 
periodically recommend to the President such modifications in the HTS 
as the Commission considers necessary or appropriate to accomplish five 
general objectives. Among these stated objectives, section 1205(a)(2) 
of the 1988 Act directs the Commission to consider changes to the HTS 
to promote the uniform application of the Harmonized System Convention 
and particularly the Protocol thereto, which contains the Harmonized 
System nomenclature structure and accompanying legal notes. Subsections 
(b) through (d) of section 1205 describe the procedures the Commission 
is to follow in formulating recommendations, including with respect to 
soliciting and considering views of interested Federal

[[Page 57294]]

agencies and the public. Section 1205(b)(1) requires that the 
Commission give notice of proposed recommendations and afford 
reasonable opportunity for interested parties to present their views in 
writing.
    In a letter dated July 1, 2010, from Myles B. Harmon, Director, 
Commercial and Trade Facilitation Division, CBP asked that the 
Commission conduct an investigation under section 1205 for the purpose 
of making recommendations to the President regarding the addition of a 
U.S. note and the amendment or replacement of certain classification 
provisions in chapter 98 of the HTS relating to certain utilitarian 
articles that incorporate a festive design, decoration, emblem, or 
motif. The letter included CBP's proposed language for a U.S. note and 
proposed changes in two U.S. tariff rate lines at the 8-digit level 
that take into account (a) Federal court decisions on the 
classification of particular utilitarian articles, and (b) the 
amendment of note 1 to chapter 95 of the international Harmonized 
System by the World Customs Organization (WCO).
    CBP's letter requested that the following U.S. note 9 be inserted 
in subchapter XVII of chapter 98:

    9. Heading 9817.95.02 applies only to tableware, kitchenware 
(except baking pans, cookie cutters, cookie stamps and presses) and 
toilet articles of chapter 39, 69 or 70; carpets and other textile 
floor coverings of chapter 57; apparel and accessories of chapter 61 
or 62; and made-up textile articles of chapter 63.
    The letter further requested that existing HTS subheadings 
9817.95.01 and 9817.95.05 and superior text thereto be replaced by:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
9817.95.01...........  Utilitarian      Free............            25%.
                        articles
                        (including but
                        not limited to
                        Seder plates,
                        blessing cups,
                        menorahs or
                        kinaras) of a
                        kind used in
                        the home in
                        the
                        performance of
                        specific
                        religious or
                        cultural
                        ritual
                        celebrations
                        for religious
                        or cultural
                        holidays, or
                        religious
                        festive
                        occasions
                        (provided for
                        in subheading
                        3924.10,
                        3926.90,
                        6307.90,
                        6911.10,
                        6912.00,
                        7013.22,
                        7013.28,
                        7013.41,
                        7013.49,
                        9405.20,
                        9405.40 or
                        9405.50).
9817.95.02...........  Utilitarian      Free............            25%.
                        articles, each
                        incorporating
                        a symbol and/
                        or motif that
                        is closely
                        associated
                        with a festive
                        occasion (for
                        example,
                        Christmas,
                        Easter,
                        Halloween or
                        Thanksgiving),
                        the foregoing
                        articles used
                        or displayed
                        principally
                        during that
                        festive
                        occasion and
                        not typically
                        at any other
                        time, under
                        the terms of
                        U.S. note 9 to
                        this
                        subchapter.
------------------------------------------------------------------------

CBP's letter provided additional background on the tariff 
classification of utilitarian articles that incorporate a festive 
design, decoration, emblem, or motif. The letter summarized relevant 
court decisions and decisions of CBP that are the basis of CBP's 
request. A copy of CBP's letter is being posted on the Commission's Web 
site at http://www.usitc.gov/tariff_affairs/modifications_hts.htm.
    The Commission believes that a modification of CBP's description 
for heading 9817.95.02 should be considered in order to clarify the 
intended scope of the heading and conform to normal HTS language. The 
Commission proposes that a phrase included in the request letter's 
description for that heading as ``a festive occasion (for example, 
Christmas, Easter, Halloween, or Thanksgiving)'' be replaced by 
``Christmas, Easter, Halloween, Thanksgiving or similar festive 
occasion''.
    The Harmonized System nomenclature, which is maintained by the WCO, 
provides a uniform structural basis for the customs tariffs and 
statistical nomenclatures of all major trading countries of the world, 
including the United States. The Harmonized System comprises the 
broadest principles of classification and levels of categories in the 
HTS, comprising the general rules of interpretation, section and 
chapter titles, section and chapter legal notes, and heading and 
subheading texts to the 6-digit level of detail. Additional U.S. notes, 
further subdivisions (8-digit subheadings and 10-digit statistical 
annotations) and statistical notes, as well as the entirety of chapters 
98 and 99 and several appendixes, are national legal and statistical 
detail added for the administration of the U.S. tariff and statistical 
programs and are not part of the international HS.
    An up-to-date copy of the HTS, which incorporates the international 
HS in its overall structure, can be found on the Commission's Web site 
(http://www.usitc.gov/tata/hts/bychapter/index.htm). Hard copies and 
electronic copies on CD can be found at many of the 1,400 Federal 
Depository Libraries located throughout the United States and its 
territories; further information about these locations can be found at 
http://www.gpoaccess.gov/fdlp.html or by contacting GPO Access at the 
Government Printing Office at this telephone number: 866-512-1800.
    The Commission will prepare recommendations for the President in 
the form of a single report. In preparing these recommendations, the 
Commission will take into account CBP's request, as well as all other 
appropriate legal and technical considerations relating to HTS chapters 
39, 57, 61, 62, 63, 69, 70, 94, and 95. The Commission will consider 
and include, where appropriate, the input submitted by other agencies 
and interested parties. Submissions from other agencies and the public 
must be filed by October 22, 2010, in order to be assured of 
consideration in the Commission's report and recommendations to the 
President.
    Written submissions should be filed in accordance with the 
procedures below. Such submissions should take into account the 
classification of the merchandise concerned under the international 
Harmonized System as well as domestic judicial decisions and seek to 
further the goals set out by section 1205 of the 1988 Act and the 
Harmonized System Convention. No proposals for changes to existing U.S. 
rates of duty or to 10-digit statistical annotations or notes will be 
considered by the Commission during its review. However, the Commission 
will examine information concerning the rates of duty currently 
utilized by importers in liquidated and undisputed entries of specific 
festive articles that are the subject of this investigation. The 
changes in the HTS that may result from this investigation are not 
intended to alter current tariff rates. The changes instead are 
intended to ensure that existing tariff treatment continues to be 
applicable following the implementation of new U.S. tariff provisions, 
taking into account HTS changes that were proclaimed as of February 3, 
2007, and related judicial decisions and CBP classification rulings.
    Proposed Recommendations: Section 1205(b)(1) of the 1988 Act 
requires that the Commission give notice of proposed recommendations 
and afford reasonable opportunity for interested parties to present 
their views in writing.
    The Commission hereby gives notice that its proposed 
recommendations in this investigation for purposes of section 
1205(b)(1) of the 1988 Act are as follows:
    (1) Adopt CBP's proposed language for U.S. note 9, to be inserted 
in

[[Page 57295]]

subchapter XVII of chapter 98 of the HTS; and
    (2) Adopt CBP's proposed language for HTS subheadings 9817.95.01 
and 9817.95.02 and the deletion of subheading 9817.95.05 with the 
exception of the one change noted above regarding the parenthetical 
expression shown in HTS subheading 9817.95.02, as requested, relating 
to festive occasions. Thus, HTS subheading 9817.95.02 would read as 
follows:

------------------------------------------------------------------------
        [emps]              [emps]           [emps]           [emps]
------------------------------------------------------------------------
9817.95.02...........  Utilitarian      Free............            25%.
                        articles, each
                        incorporating
                        a symbol and/
                        or motif that
                        is closely
                        associated
                        with
                        Christmas,
                        Easter,
                        Halloween,
                        Thanksgiving
                        or similar
                        festive
                        occasion, the
                        foregoing
                        articles used
                        or displayed
                        principally
                        during that
                        festive
                        occasion and
                        not typically
                        at any other
                        time, under
                        the terms of
                        U.S. note 9 to
                        this
                        subchapter.
------------------------------------------------------------------------

    Written Submissions: Interested parties and agencies are invited to 
file written submissions relating to the Commission's proposed 
recommendations. All written submissions should be addressed to the 
Secretary. Written submissions relating to CBP's request should be 
received no later than October 22, 2010. Submissions should refer to 
``Investigation No. 1205-9'' in a prominent place on the cover page 
and/or the first page. All written submissions must conform with the 
provisions of section 201.8 of the Commission's Rules of Practice and 
Procedure (19 CFR 201.8). Section 201.8 requires that a signed original 
(or a copy so designated) and fourteen (14) copies of each document be 
filed. In the event that confidential treatment of a document is 
requested, at least four (4) additional copies must be filed, in which 
the confidential information must be deleted (see the following 
paragraph for further information regarding confidential business 
information). The Commission's rules authorize filing submissions with 
the Secretary by facsimile or electronic means only to the extent 
permitted by section 201.8 of the rules (see Handbook for Electronic 
Filing Procedures, http://www.usitc.gov/secretary/fed_reg_notices/rules/documents/handbook_on_electronic_filing.pdf). Persons with 
questions regarding electronic filing should contact the Secretary 
(202-205-2000).
    Any submissions that contain confidential business information must 
also conform with the requirements of section 201.6 of the Commission's 
Rules of Practice and Procedure (19 CFR 201.6). Section 201.6 of the 
rules requires that the cover of the document and the individual pages 
be clearly marked as to whether they are the ``confidential'' or ``non-
confidential'' version, and that the confidential business information 
be clearly identified by means of brackets. All written submissions, 
except for confidential business information, will be made available 
for inspection by interested parties. Confidential business information 
received in the submissions may be made available to CBP during the 
examination of the requested HTS modifications. The Commission will not 
otherwise publish or release any confidential business information 
received, nor release it to other government agencies or other persons.

    By order of the Commission.

    Issued: September 13, 2010.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. 2010-23396 Filed 9-17-10; 8:45 am]
BILLING CODE 7020-02-P