[Federal Register Volume 65, Number 126 (Thursday, June 29, 2000)]
[Proposed Rules]
[Pages 40067-40069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16406]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 10
RIN 1515-AC59
Civil Aircraft
AGENCY: Customs Service, Department of the Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document proposes to amend the Customs Regulations
concerning the duty-free entry of civil aircraft merchandise to reflect
amendments to General Note 6 of the Harmonized Tariff Schedule of the
United States made by the Miscellaneous Trade and Technical Corrections
Act of 1996. This document invites the public to comment on the
proposed changes.
DATES: Comments must be received on or before August 28, 2000.
ADDRESSES: Written comments (preferably in triplicate), regarding both
the substantive aspects of the proposed rule and how it may be made
easier to understand, may be submitted to and inspected at the
Regulations Branch, Office of Regulations and Rulings, U.S. Customs
Service, 1300 Pennsylvania Avenue, NW., 3rd Floor, Washington, DC
20229.
FOR FURTHER INFORMATION CONTACT: Ms. Dixie Staple, Office of Field
Operations, at (202) 927-1131.
SUPPLEMENTARY INFORMATION:
Background
This document proposes to amend Sec. 10.183 of the Customs
Regulations (19 CFR 10.183), which concerns Customs duty-free treatment
of civil aircraft merchandise. Section 10.183 implements General Note 6
of the Harmonized Tariff Schedule of the United States (HTSUS) (19
U.S.C. 1202), which implements the Agreement on Trade in Civil Aircraft
(Title VI of the Trade Agreements Act of 1979, Pub. L. 96-39, 93 Stat.
144, July 26, 1979), to provide duty-free treatment for qualifying
civil aircraft merchandise upon compliance with certain requirements.
General Note 6 of the HTSUS was amended by section 12 of the
Miscellaneous Trade and Technical Corrections Act of 1996 (the Act),
Pub. L. 104-295, 110 Stat. 3514 (October 11, 1996). Prior to the
amendment, General Note 6, HTSUS, required that an importer entering
merchandise duty-free thereunder must file with Customs a written
statement certifying that the merchandise (i) Is civil aircraft or has
been imported for use in civil aircraft, (ii) will be so used, and
(iii) has been approved for civil aircraft use by, or an application
for approval has been submitted to, the Administrator of the Federal
Aviation Administration (FAA) (or has been approved by an airworthiness
authority in the country of exportation if such approval is recognized
by the FAA). General Note 6 defined the term ``civil aircraft'' as all
aircraft other than aircraft purchased for use by the Department of
Defense or the United States Coast Guard.
Prior to the amendment of General Note 6, HTSUS, Sec. 10.183 of the
Customs Regulations (19 CFR 10.183) provided that the written statement
required under General Note 6, HTSUS (referred to in the regulation as
a certificate or certification), must be filed with each entry summary
or be on file with Customs at the time of entry as a blanket statement
at the port where the entry is filed (19 CFR 10.183(c)). The regulation
also provided that the statement could not be treated as a missing
document for which a bond could be posted pending its later production
(under 19 CFR 141.66), and that failure to timely file the statement or
to have a valid blanket statement on file at the port would result in a
dutiable entry (19 CFR 10.183(c)(2)).
The Act amended General Note 6, HTSUS, to eliminate the statement
(certification) filing requirement and to provide that an importer
makes a claim for duty-free treatment under the General Note by
entering the merchandise under a tariff provision for which the program
indicator ``Free (C)'' appears in the ``Special'' subcolumn of the
tariff. This is accomplished by
[[Page 40068]]
placing the program indicator C'' on the entry summary. This claim, in
accordance with General Note 6 as amended by the Act, is deemed the
importer's certification that the merchandise being entered is civil
aircraft or has been imported for use in civil aircraft and will be so
used. Although the amendment eliminated the statement filing
requirement, it requires that an importer maintain documentation to
support the claim. It also provides that an importer may amend an entry
or file a written statement to claim duty-free treatment under General
Note 6, HTSUS, any time before the liquidation of the entry becomes
final.
These statutory amendments to General Note 6, HTSUS, establish the
basis for the amendments to Sec. 10.183 proposed in this document. The
proposed amendments to the regulation expand its coverage, eliminate
the requirement that supporting documentation be filed with each entry
summary, require that supporting documentation be maintained in the
importer's records, eliminate the statement (certification) filing
requirement, allow an importer to make a claim under General Note 6,
HTSUS, after the filing of an entry but before its liquidation becomes
final, and provide that no interest attaches to refunds of duty
resulting from post-entry claims.
Comments
Before adopting this proposal as a final rule, consideration will
be given to any written comments timely submitted to Customs. Comments
submitted will be available for public inspection in accordance with
the Freedom of Information Act (5 U.S.C. 552), Sec. 1.4 of the Treasury
Department Regulations (31 CFR 1.4), and Sec. 103.11(b) of the Customs
Regulations (19 CFR 103.11(b)) on regular business days between the
hours of 9 a.m. and 4:30 p.m. at the Regulations Branch, Office of
Regulations and Rulings, U.S. Customs Service, 1300 Pennsylvania
Avenue, NW., 3rd Floor, Washington, DC
Eexcutive Order 12866
This document does not meet the criteria for a ``significant
regulatory action'' as specified in E.O. 12866.
Regulatory Flexibility Act
Adoption of the proposed amendments regarding civil aircraft will
make importations of such merchandise less burdensome for importers
than is the case under current regulations. Accordingly, pursuant to
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.), it is certified that the proposed amendments to the Customs
Regulations, if adopted, will not have a significant economic impact on
a substantial number of small entities. The proposed amendments are not
subject to the regulatory analysis or other requirements of 5 U.S.C.
603 and 604.
Paperwork Reduction Act
The collection of information contained in this notice has
previously been reviewed and approved by the Office of Management and
Budget (OMB) under OMB control number 1515-0065 (Entry Summary), 1515-
0069 (Immediate Delivery Application), and 1515-0144 (Customs Bond
Structure). This rule does not propose any substantive changes to the
existing approved information collection.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid control number.
Drafting Information
The principal author of this document was Bill Conrad, Office of
Regulations and Rulings, U.S. Customs Service. However, personnel from
other offices contributed in its development.
List of Subjects IN 19 CFR Part 10
Aircraft, Customs duties and inspection, Entry, Reporting and
recordkeeping requirements.
Proposed Amendments to the Regulations
For the reasons stated in the preamble, part 10 of the Customs
Regulations (19 CFR Part 10) is proposed to be amended as follows:
PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,
ETC.
1. The general authority citation for part 10 continues to read,
and the specific authority citation for Sec. 10.183 is added, as
follows:
Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized
Tariff Schedule of the United States (HTSUS)),
1321,1481,1484,1498,1508,1623, 1624, 3314;
* * * * *
Section 10.183 also issued under 19 U.S.C. 1202 (General Note 6,
HTSUS);
* * * * *
2. Section 10.183 is revised to read as follows:
Sec. 10.183 Duty-free entry of civil aircraft, aircraft engines,
ground flight simulators, parts, components, and subassemblies.
(a) Applicability. Except as provided in paragraph (b) of this
section, this section applies to aircraft, aircraft engines, and ground
flight simulators, including parts, components, and subassemblies
thereof, that qualify as civil aircraft under General Note 6 of the
Harmonized Tariff Schedule of the United States (HTSUS) by meeting the
following requirements:
(1) The aircraft, aircraft engines, ground flight simulators, or
parts, components, and subassemblies thereof, are used as original or
replacement equipment in the design, development, testing, evaluation,
manufacture, repair, maintenance, rebuilding, modification, or
conversion of aircraft; and
(2) They are either:
(i) Manufactured or operated pursuant to a certificate issued by
the Administrator of the Federal Aviation Administration (FAA) under 49
U.S.C. 44704, or pursuant to the approval of the airworthiness
authority in the country of exportation, if such approval is recognized
by the FAA as an acceptable substitute for the FAA certificate;
(ii) Covered by an application for such certificate, submitted to
and accepted by the FAA, filed by an existing type and production
certificate holder pursuant to 49 U.S.C. 44702 and implementing
regulations (Federal Aviation Administration Regulations, title 14,
Code of Federal Regulations); or
(iii) Covered by an application for such approval or certificate
which will be submitted in the future by an existing type and
production certificate holder, pending the completion of design or
other technical requirements stipulated by the FAA (applicable only to
the quantities of parts, components, and subassemblies as are required
to meet the stipulation).
(b) Department of Defense or U.S. Coast Guard use. If purchased for
use by the Department of Defense or the United States Coast Guard,
aircraft, aircraft engines, and ground flight simulators, including
parts, components, and subassemblies thereof, that qualify as civil
aircraft under General Note 6 of the HTSUS are subject to this section
only if they are used as original or replacement equipment in the
design, development, testing, evaluation, manufacture, repair,
maintenance, rebuilding, modification, or conversion of aircraft and
meet the requirements of either paragraph (a)(2)(i) or (a)(2)(ii) of
this section.
(c) Claim for admission free of duty. Merchandise qualifying under
paragraph (a) or paragraph (b) of this section is entitled to duty-free
admission in accordance with General Note 6, HTSUS, upon meeting the
requirements of this section. An
[[Page 40069]]
importer makes a claim for duty-free admission under this section and
General Note 6, HTSUS, by properly entering qualifying merchandise
under a provision for which the rate of duty ``Free (C)'' appears in
the ``Special'' subcolumn of the HTSUS and by placing the special
indicator ``C'' on the entry summary. The fact that qualifying
merchandise has previously been exported with benefit of drawback does
not preclude free entry under this section.
(d) Importer certification. In making a claim for duty-free
admission as provided for under paragraph (c) of this section, the
importer is deemed to certify, in accordance with General Note
6(a)(ii), HTSUS, that the imported merchandise is civil aircraft as
described in paragraph (a) or paragraph (b) of this section or has been
imported for use in civil aircraft and will be so used.
(e) Documentation. Each entry summary claiming duty-free admission
for imported merchandise in accordance with paragraph (c) of this
section must be supported by the written order or contract and any
additional documentation Customs may require to verify the claim for
duty-free admission, including evidence of compliance with the FAA
certification requirement of paragraph (a)(2)(i), (a)(2)(ii), or
(a)(2)(iii) of this section. This required documentation need not be
filed with the entry summary, but must be maintained in accordance with
the recordkeeping provisions of part 163 of this chapter. An importer
not in possession of the required supporting documentation at the time
of entry may not then claim duty-free admission under this section but
may later make a duty-free claim after entry in accordance with
paragraph (f) of this section. Customs may request production of
supporting documentation at any time to verify the claim for duty-free
admission. Proof of end use of the entered merchandise need not be
maintained.
(f) Post-entry claim. An importer may file a claim for duty-free
treatment under General Note 6, HTSUS, after filing an entry that made
no such duty-free claim, by filing a written statement with Customs any
time prior to liquidation or prior to the liquidation becoming final.
When filed, the written statement constitutes the importer's deemed
certification. In accordance with General Note 6, HTSUS, any refund
resulting from a claim made under this paragraph will be without
interest, notwithstanding the provision of 19 U.S.C. 1505(c).
(g) Verification. The port director will monitor and periodically
audit selected entries made under this section.
Approved: June 7, 2000.
Raymond W. Kelly,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-16406 Filed 6-28-00; 8:45 am]
BILLING CODE 4820-02-P