[Federal Register Volume 78, Number 190 (Tuesday, October 1, 2013)]
[Rules and Regulations]
[Pages 60191-60193]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-23837]


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DEPARTMENT OF HOMELAND SECURITY

Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 10, 24, 162, 163, and 178

[USCBP-2012-0017; CBP Dec. 13-16]
RIN 1515-AD88


United States-Colombia Trade Promotion Agreement

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule, with some changes, 
interim amendments to the U.S. Customs and Border Protection (CBP) 
regulations which were published in the Federal Register on September 
26, 2012, as CBP Dec. 12-16, to implement the preferential tariff 
treatment and other customs-related provisions of the United States-
Colombia Trade Promotion Agreement.

DATES: Effective October 31, 2013.

FOR FURTHER INFORMATION CONTACT: Textile Operational Aspects: 
Jacqueline Sprungle, Trade Policy and Programs, Office of International 
Trade, (202) 863-6517.
    Other Operational Aspects: Katrina Chang, Trade Policy and 
Programs, Office of International Trade, (202) 863-6532.
    Legal Aspects: Karen Greene, Regulations and Rulings, Office of 
International Trade, (202) 325-0041.

SUPPLEMENTARY INFORMATION: 

Background

    On November 22, 2006, the United States and Colombia signed the 
United States-Colombia Trade Promotion Agreement (``CTPA'' or 
``Agreement''), and on June 28, 2007, the Parties signed a protocol 
amending the Agreement. On October 21, 2011, the President signed into 
law the United States-Colombia Trade Promotion Agreement Implementation 
Act (the ``Act''), Public Law 112-42, 125 Stat. 462 (19 U.S.C. 3805 
note), which approved and made statutory changes to implement the CTPA.
    On September 26, 2012, CBP published CBP Dec. 12-16 in the Federal 
Register (77 FR 59064) setting forth interim amendments to implement 
the preferential tariff treatment and other customs-related provisions 
of the CTPA and the Act. Please refer to those documents for further 
background information.
    The majority of the CTPA implementing regulations set forth in CBP 
Dec. 12-16 and adopted as final in this document have been included 
within Subpart T of Part 10 of the CBP regulations (19 CFR Part 10). 
However, in those cases in which CTPA implementation is more 
appropriate in the context of an existing regulatory provision, the 
CTPA regulatory text has been incorporated into an existing Part within 
the CBP regulations. CBP Dec. 12-16 also sets forth a number of cross-
references and other consequential changes to existing regulatory 
provisions to clarify the relationship between those existing 
provisions and the new CTPA implementing regulations.
    Although the interim regulatory amendments were promulgated without 
prior public notice and comment procedures and took effect on September 
26, 2012, CBP Dec. 12-16 provided for the submission of public comments 
which would be considered before adoption of the interim regulations as 
a final rule. The prescribed public comment closed on November 26, 
2012. CBP received no comments on CBP Dec. 12-16.

Conclusion

    After further review of the matter, and in light of the fact that 
no comments were submitted in response to CBP's solicitation of public 
comment, CBP has determined to adopt as final, with the changes 
described below, the interim rule published in the Federal Register (77 
FR 59064) on September 26, 2012.
    The changes in this document are set forth below:
     Amend Sec.  10.3007(a) to clarify, as per Article 4.17.2 
of the CTPA, that an importer that claims preferential tariff treatment 
for a good imported into the United States under Sec.  10.3003(b), 
based

[[Page 60192]]

on either the importer's certification or its knowledge, must maintain, 
for a minimum of five years after the date of importation of the good, 
all records and documents ``necessary'' to demonstrate that the good 
qualifies for preferential tariff treatment under the CTPA. An importer 
claiming preferential tariff treatment for a good imported into the 
United States under Sec.  10.3003(b) based on the certification issued 
by the exporter or producer must maintain, for a minimum of five years 
after the date of importation of the good, the certification issued by 
the exporter or producer.
     Amend Sec.  10.3011(a) to clarify that a post-importation 
claim may be filed by paper or by the method specified for equivalent 
reporting via an authorized electronic data interchange system;
     Amend Sec.  10.3013(b)(1), which incorrectly lists 
subheading 8704.10 twice. The first reference to that subheading 
should, instead, refer to subheading 8702.10, HTSUS, as per section 
203(n)(2)(A) of the Act;
     Amend Sec.  10.3016(a) to clarify 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, by removing the exception language pertaining to 
Sec.  10.3024;
     Amend Sec.  10.3016(c)(1)(i) by removing the parenthetical 
text pertaining to ``cost of freight,'' as section 203(d)(2)(A) of the 
Act does not contain that language;
     Amend Sec.  10.3027 by redesignating existing paragraph 
(c) as paragraph (d) and existing paragraph (d) as paragraph (c) to 
better reflect the order of the actions CBP will take, depending on the 
findings during and upon completion of the verification, and by 
replacing the word ``Assistance'' with the word ``Action'' in the 
heading text to existing paragraph (d), to reflect section 208 of the 
Act; and
     Amend Sec.  10.3034(a) by adding a clarifying sentence, as 
per Article 2.6.3(b) of the CTPA, which states that the term ``repairs 
or alterations'' does not include an operation or process that 
transforms an unfinished good into a finished good.
    Lastly, although this does not concern a correction to the 
regulatory text of Subpart T, it is noted that reference in the interim 
rule's preamble (77 FR 59065) to ``Subchapter XXI'' of Chapter 99 of 
the Harmonized Tariff Schedule of the United States (HTSUS) is 
incorrect and should, instead, read, ``Subchapter XVIII'' to Chapter 
99, HTSUS.

Executive Order 12866

    This document is not a regulation 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.

Regulatory Flexibility Act

    CBP Dec. 12-16 was issued as an interim rule rather than a notice 
of proposed rulemaking because CBP had determined that the interim 
regulations involve a foreign affairs function of the United States 
pursuant to Sec.  553(a)(1) of the Administrative Procedure Act (APA). 
Because no notice of proposed rulemaking was required, the provisions 
of the Regulatory Flexibility Act, as amended (5 U.S.C. 601 et seq.), 
do not apply. Accordingly, this final rule is not subject to the 
regulatory analysis requirements or other requirements of 5 U.S.C. 603 
and 604.

Paperwork Reduction Act

    The collections of information contained in these regulations have 
previously been reviewed and approved by the Office of Management and 
Budget in accordance with the requirements of the Paperwork Reduction 
Act (44 U.S.C. 3507) under control number 1651-0117, which covers many 
of the free trade agreement requirements that CBP administers, and 
1651-0076, which covers general recordkeeping requirements. The 
collections of information in these regulations are in Sec. Sec.  
10.3003, 10.3004, and 10.3007. This information is required in 
connection with claims for preferential tariff treatment under the CTPA 
and the Act and will be used by CBP to determine eligibility for tariff 
preference under the CTPA and the Act. The likely respondents are 
business organizations including importers, exporters and 
manufacturers.
    The estimated average annual burden associated with the collection 
of information in this final rule is 0.2 hours per respondent or 
recordkeeper. Comments concerning the accuracy of this burden estimate 
and suggestions for reducing this 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, Office of 
International Trade, U.S. Customs and Border Protection, 90 K Street 
NE., 10th Floor, Washington, DC 20229-1177.

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 CBP 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 CBP Regulations

    Accordingly, the interim rule amending Parts 10, 24, 162, 163, and 
178 of the CBP regulations (19 CFR Parts 10, 24, 162, 163, and 178), 
which was published at 77 FR 59064 on September 26, 2012, is adopted as 
a final rule with the following changes:

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

0
1. The general authority citation for part 10 continues to read, and 
the specific authority for new Subpart T 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 10.3001 through 10.3034 also issued under 19 U.S.C. 
1202 (General Note

[[Page 60193]]

34, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 112-42, 125 Stat. 462 (19 
U.S.C. 3805 note).


0
2. Section 10.3007(a) is revised to read as follows:


Sec.  10.3007  Maintenance of records.

    (a) General. An importer claiming preferential tariff treatment for 
a good imported into the United States under Sec.  10.3003(b) based on 
either the importer's certification or its knowledge must maintain, for 
a minimum of five years after the date of importation of the good, all 
records and documents necessary to demonstrate that the good qualifies 
for preferential tariff treatment under the CTPA. An importer claiming 
preferential tariff treatment for a good imported into the United 
States under Sec.  10.3003(b) based on the certification issued by the 
exporter or producer must maintain, for a minimum of five years after 
the date of importation of the good, the certification issued by the 
exporter or producer. 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.
* * * * *

0
3. In Sec.  10.3011, paragraph (a) is amended by adding a sentence to 
the end to read as follows:


Sec.  10.3011  Filing procedures.

    (a) * * * The post-importation claim may be filed by paper or by 
the method specified for equivalent reporting via an authorized 
electronic data interchange system.
* * * * *


Sec.  10.3013  [Amended]

0
4. Section 10.3013(b)(1) is amended by removing the language, ``under 
8704.10'' and adding in its place the language, ``under 8702.10''.


Sec.  10.3016  [Amended]

0
5. In Sec.  10.3016:
0
a. Paragraph (a) introductory text is amended by removing the language, 
``Except as provided for in Sec.  10.3024, for'' and adding in its 
place the word, ``For''; and
0
b. Paragraph (c)(1)(i) is amended by removing the language, ``(``cost 
of freight'' includes the costs of all types of freight, including in-
land freight incurred within a Party's territory, regardless of the 
mode of transportation)''.


Sec.  10.3027  [Amended]

0
6. In Sec.  10.3027:
0
a. Paragraph (c) is redesignated as paragraph (d) and paragraph (d) is 
redesignated as paragraph (c); and
0
b. The heading for newly redesignated paragraph (c) is amended by 
removing the word ``Assistance'' and adding in its place the word 
``Action''.

0
7. In Sec.  10.3034, paragraph (a) is amended by adding a sentence to 
the end to read as follows:


Sec.  10.3034  Goods re-entered after repair or alteration in Colombia.

    (a) * * * The term `repairs or alterations' does not include an 
operation or process that transforms an unfinished good into a finished 
good.

 Thomas S. Winkowski,
 Acting Commissioner.
    Approved: September 25, 2013.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2013-23837 Filed 9-30-13; 8:45 am]
BILLING CODE 9111-14-P