[Federal Register Volume 76, Number 161 (Friday, August 19, 2011)]
[Proposed Rules]
[Pages 51914-51916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21275]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Parts 10 and 163
[USCBP-2011-0030]
RIN 1515-AD75
Duty-Free Treatment of Certain Visual and Auditory Materials
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document proposes to amend the U.S. Customs and Border
Protection (CBP) regulations pertaining to the filing of documentation
related to free entry of certain merchandise under Chapter 98 of the
Harmonized Tariff Schedule of the United States (HTSUS). The proposed
amendment would permit an applicant to file the documentation required
for duty-free treatment of certain visual and auditory materials of an
educational, scientific, or cultural character under subheading
9817.00.40, HTSUS, at any time prior to the liquidation of the entry.
The regulation currently requires the filing of this documentation
within 90 days of the date of entry. The proposed change would provide
more time for the importer to provide the necessary certification
documentation to CBP and would serve to align the filing of required
certification documentation with a change in CBP policy that extended
the liquidation cycle for entries in the ordinary course of business
from 90 days to 314 days after the date of entry. The change is
consistent with other regulations that govern the duty-free treatment
of merchandise under Chapter 98, HTSUS.
DATES: Written comments must be received on or before October 18, 2011.
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 No. USCBP
2011-0030.
Mail: Trade and Commercial Regulations Branch, Regulations
and Rulings, U.S. Customs and Border Protection, 799 9th Street, NW.,
(Mint Annex), Washington, DC 20229-1179.
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, Office of International Trade, 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 Joseph Clark at (202) 325-0118.
FOR FURTHER INFORMATION CONTACT: Robert Dinerstein, Valuation and
Special Programs Branch, Regulations and Rulings, Office of
International Trade, (202) 325-0132.
SUPPLEMENTARY INFORMATION:
Public Participation
Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of this
proposed rule. U.S. Customs and Border Protection (CBP) also invites
comments that relate to the economic, environmental, or federalism
effects that might result from this proposed rule. Comments that will
provide the most assistance to CBP in developing these procedures will
reference a specific portion of the proposed rule, explain the reason
for any recommended change, and include data, information, or authority
that supports such recommended change. See ADDRESSES above for
information on how to submit comments.
Background
The United States signed the ``Agreement for Facilitating the
International Circulation of Visual and Auditory Materials of an
Educational, Scientific, and Cultural Character'' made at Beirut,
Lebanon (also referred to as the ``Beirut Agreement'') in 1948. By
Public Law 89-634, 80 Stat. 879, 19 U.S.C. 2501 (October 8, 1966),
which amended the Tariff Schedules of the United States, and Executive
Order 11311, 31 FR 13413 (Oct. 18, 1966), the United States implemented
its obligations under the Agreement to
[[Page 51915]]
allow certain qualifying visual and auditory materials to be imported
into the United States duty-free. The provision for duty-free treatment
for these materials is now set forth under subheading 9817.00.40 of the
Harmonized Tariff Schedule of the United States (HTSUS).
CBP coordinates with the U.S. Department of State in administering
the obligations of the United States under the Beirut Agreement. The
Department of State is the agency responsible for determining whether
articles qualify under the Agreement for duty-free treatment under
subheading 9817.00.40 of the HTSUS, and CBP is responsible for ensuring
that duty-free treatment for merchandise entered under that HTSUS
subheading is provided only if the Department of State has certified
that the articles qualify. The relevant regulations of the Department
of State are set forth in 22 CFR part 61 and the regulation detailing
the Department of State's issuance of the certification document is set
forth at 22 CFR 61.8. The relevant CBP regulation is 19 CFR 10.121. As
the program currently is administered, an applicant is required to file
the Department of State's certification document in connection with an
entry covering articles for which duty-free treatment is sought. See 19
CFR 10.121(a).
This document proposes to amend the CBP regulation regarding the
time period in which a party seeking duty-free treatment under
subheading 9817.00.40 of the HTSUS must provide certification from the
Department of State. If the required documentation has not been filed
with CBP at the time of entry for merchandise entered under subheading
9817.00.40, HTSUS, section 10.121(b) of the CBP regulations permits
liquidation to be suspended for 90 days after entry to allow an
applicant time to obtain the certifying Department of State document.
This proposed amendment would permit more time for the importer to
provide the necessary certification documentation to CBP.
This document proposes to amend 19 CFR 10.121(b) by removing the
language which provides for the suspension of liquidation of an entry
for 90 days and to provide, instead, that the required documentation
may be filed with CBP any time prior to liquidation. This 90-day
suspension provision was promulgated in 1966 and section 10.121(b) does
not reflect the subsequent amendments to 19 U.S.C. 1504 or changes to
CBP policy regarding liquidation. Under current law, CBP has up to one
year to liquidate an entry before it is deemed liquidated by operation
of law. See 19 U.S.C. 1504. Historically, the majority of entries were
liquidated within 90 days in the ordinary course of business; however,
this policy was changed by the agency when the volume of trade
increased by extending the liquidation cycle from 90 days after entry
to 314 days after entry. See 314-Day Liquidation Cycle-Trade Notice,
CSMS 97-000727 (Aug. 3, 1997). It is noted that there is no
statutory provision preventing CBP from liquidating an entry at any
time during the one-year period after entry of the merchandise and
prior to the conclusion of the 314-day liquidation cycle if all the
required documentation has been filed.
Section 10.112 of title 19 CFR (19 CFR 10.112) permits the filing
of documentation related to free entry of merchandise under Chapter 98,
HTSUS, at any time prior to liquidation of an entry or, if liquidated,
before the liquidation becomes final. Section 10.121(b) is proposed to
be amended to be consistent with 19 CFR 10.112 and the change in CBP's
current liquidation practice. Therefore, the suspension of liquidation
of an entry for a period of 90 days from the date of entry to allow an
applicant to file the required documentation in order to qualify for an
exemption from duty under subheading 9817.00.40, HTSUS, would be
replaced with a suspension of liquidation of an entry for a period of
314 days from the date of entry.
Lastly, we note that this proposed change to 19 CFR 10.121(b) is
also consistent with other CBP regulations that govern the duty free
treatment of merchandise under Chapter 98, HTSUS. For instance, the
regulations implementing the Florence Agreement on scientific
instruments and apparatus were amended to merely required that the
Department of Commerce's certifying documentation be submitted to CBP
prior to liquidation. See 19 CFR 10.112 and 15 CFR 301.8 (74 FR 30462,
June 26, 2009).
Other Changes
This document also proposes to make a non-substantive change to a
listing in the Appendix to part 163--Interim (a)(1)(A) List. The
listing ``Sec. 10.121 Certificate from USIA for visual/auditory
materials'' currently references USIA (United States Information
Agency). Since USIA was abolished in 1999 by the Foreign Affairs Reform
and Restructuring Act of 1998, and its functions were transferred to
the U.S. Department of State, this listing is outdated. This document
will amend the listing in the Appendix to Part 163 to reflect the State
Department rather than USIA.
Regulatory Flexibility Act
Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), we
have considered whether this proposed rule would have a significant
impact on a substantial number of small entities. A small entity may be
a small business (defined as any independently owned and operated
business not dominant in its field that qualifies as a small business
per the Small Business Act); a small not-for-profit organization; or a
small governmental jurisdiction (locality with fewer than 50,000
people).
As this proposed amendment would provide more time for an importer
to obtain the State Department certificate, CBP certifies under 5
U.S.C. 605(b) that the proposed amendments, if adopted, will not have a
significant economic impact on a substantial number of small entities.
CBP welcomes any comments regarding this finding.
Executive Order 12866
This proposed rule is not a ``significant regulatory action'' as
defined by Executive Order 12866.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507), an agency may not conduct, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number assigned by Office of
Management and Budget (OMB). The information collected under 19 CFR
10.121 is included under OMB control number 1651-0067. There are no new
collections of information proposed in this document.
Signing Authority
This regulation is being issued in accordance with 19 CFR 0.1(a)(1)
pertaining to the authority of the Secretary of the Treasury (or his/
her delegate) to approve regulations pertaining to certain customs
revenue functions.
List of Subjects
19 CFR Part 10
Customs duties and inspection, Entry, Imports, Preference programs,
Reporting and recordkeeping requirements, Trade agreements.
19 CFR Part 163
Administrative practice and procedure, Customs duties and
inspection, Exports, Imports, Reporting and recordkeeping requirements,
Trade agreements.
[[Page 51916]]
Proposed Amendments to the CBP Regulations
For the reasons set forth above, it is proposed to amend parts 10
and 163 of title 19 of the Code of Federal Regulations 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 and
a specific authority is added for Sec. 10.121 as follows:
Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484,
1498, 1508, 1623, 1624, 3314.
* * * * *
Section 10.121 also issued under 19 U.S.C. 2501;
* * * * *
2. Section 10.121(b) is revised to read as follows:
Sec. 10.121 Visual or auditory materials of an educational,
scientific, or cultural character.
* * * * *
(b) Articles entered under subheading 9817.00.40, HTSUS, will be
released from CBP custody prior to submission of the document required
in paragraph (a) of this section only upon the deposit of estimated
duties with the port director. Liquidation of an entry which has been
released under this procedure will be suspended for a period of 314
days from the date of entry or until the required document is
submitted, whichever comes first. In the event that documentation is
not submitted before liquidation, the merchandise will be classified
and liquidated in the ordinary course, without regard to subheading
9817.00.40, HTSUS.
PART 163--RECORDKEEPING
3. The authority citation for part 163 continues to read as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1484, 1508, 1509, 1510,
1624.
* * * * *
Appendix to Part 163--[Amended]
4. Section IV is amended by removing the listing ``Sec. 10.121
Certificate from USIA for visual/auditory materials'' and adding in its
place the listing ``Sec. 10.121 Certificate from the U.S. Department
of State for visual/auditory materials''.
Alan D. Bersin,
Commissioner, U.S. Customs and Border Protection.
Approved: August 16, 2011.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2011-21275 Filed 8-18-11; 8:45 am]
BILLING CODE 9111-14-P