[Federal Register Volume 79, Number 98 (Wednesday, May 21, 2014)]
[Rules and Regulations]
[Pages 29077-29078]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-11576]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

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

[USCBP-2013-0040; CBP Dec. 14-06]
RIN 1515-AD93


United States-Panama 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 interim amendments to the 
U.S. Customs and Border Protection (CBP) regulations which were 
published in the Federal Register on October 23, 2013, as CBP Dec. 13-
17, to implement the preferential tariff treatment and other customs-
related provisions of the United States-Panama Trade Promotion 
Agreement.

DATES: Final rule effective June 20, 2014.

FOR FURTHER INFORMATION CONTACT: 
    Textile Operational Aspects: Diane Liberta, Textile Operations 
Branch, Office of International Trade, (202) 863-6241.
    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 June 28, 2007, the United States and the Republic of Panama (the 
``Parties'') signed the United States-Panama Trade Promotion Agreement 
(``PANTPA'' or ``Agreement''). On October 21, 2011, the President 
signed into law the United States-Panama Trade Promotion Agreement 
Implementation Act (the ``Act''), Public Law 112-43, 125 Stat. 497 (19 
U.S.C. 3805 note), which approved and made statutory changes to 
implement the PANTPA. On October 29, 2012, the President signed 
Proclamation 8894 to implement the PANTPA. The Proclamation, which was 
published in the Federal Register on November 5, 2012, (77 FR 66507), 
modified the Harmonized Tariff Schedule of the United States 
(``HTSUS'') as set forth in Annexes I and II of Publication 4349 of the 
U.S. International Trade Commission.
    On October 23, 2013, CBP published CBP Dec. 13-17 in the Federal 
Register (78 FR 63052) setting forth interim amendments to implement 
the preferential tariff treatment and other customs-related provisions 
of the PANTPA and the Act. The majority of the PANTPA implementing 
regulations set forth in CBP Dec. 13-17 and adopted as final in this 
document have been included within Subpart S of Part 10 of the CBP 
regulations (19 CFR Part 10). However, in those cases in which PANTPA 
implementation is more appropriate in the context of an existing 
regulatory provision, the PANTPA regulatory text has been incorporated 
into an existing Part within the CBP regulations. CBP Dec. 13-17 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 PANTPA implementing regulations. 
Please refer to that document for further background information.
    Although the interim regulatory amendments were promulgated without 
prior public notice and comment procedures and took effect on October 
23, 2013, CBP Dec. 13-17 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 December 23, 
2013. CBP received one comment on CBP Dec. 13-17.

Discussion of Comments

    One response was received to the solicitation of comments on the 
interim rule set forth in CBP Dec. 13-17. The comment is discussed 
below.

Comment

    One commenter disagreed with the establishment of the PANTPA and 
suggested that the trade agreement would cause domestic economic issues 
and could cause social problems as well.

CBP Response

    The PANTPA Implementation Act was enacted by Congress. The 
commenter's concerns regarding the economic and social impact of the

[[Page 29078]]

PANTPA are, accordingly, beyond the scope of this rulemaking which 
deals with implementing the preferential tariff treatment and other 
customs-related provisions of the Act. Accordingly, it would be 
inappropriate for CBP to address the comment.

Conclusion

    After further review of the matter, and in light of the one 
comment, CBP has determined to adopt as final, with no changes, the 
interim rule published in the Federal Register (78 FR 63052) on October 
23, 2013.

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. 13-17 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 (OMB) 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.  10.2003, 10.2004, and 10.2007 of title 19 of the Code of 
Federal Regulations (19 CFR 10.2003, 10.2004, and 10.2007). This 
information is required in connection with general recordkeeping 
requirements (Sec.  10.2007), as well as claims for preferential tariff 
treatment under the PANTPA and the Act and will be used by CBP to 
determine eligibility for tariff preference under the PANTPA 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 500 hours. 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. Under the Paperwork Reduction Act, an agency may not 
conduct or sponsor and a person is not required to respond to a 
collection of information, unless it displays a valid OMB control 
number.

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 78 FR 63052 on October 23, 2013, is adopted as a 
final rule.

R. Gil Kerlikowske,
Commissioner.
    Approved: May 14, 2014.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.

[FR Doc. 2014-11576 Filed 5-20-14; 8:45 am]
BILLING CODE 9111-14-P