[Federal Register Volume 59, Number 71 (Wednesday, April 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8808]


[[Page Unknown]]

[Federal Register: April 13, 1994]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 10

[T.D. 94-40]
RIN 1515-AB45

 

Duty-Free Treatment To Be Accorded the Reimportation of Certain 
Articles Originally Imported Duty Free

AGENCY: Customs Service, Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations to implement a 
provision of the Trade and Tariff Act of 1984 that extends duty-free 
entry to the reimportation of certain articles originally imported duty 
free.

EFFECTIVE DATE: April 13, 1994.

FOR FURTHER INFORMATION CONTACT: Burton Schlissel, Special 
Classification Branch, Office of Regulations and Rulings, (202) 482-
6980.

SUPPLEMENTARY INFORMATION:

Background

    For many years U.S. law, specifically, subheading 9801.00.20 of the 
Harmonized Tariff Schedule of the United States (HTSUS) and its 
predecessor tariff provision, item 801.00 of the Tariff Schedules of 
the United States (TSUS), has not imposed a tariff on articles 
reimported into the United States if, after exportation, they were not 
advanced in value or improved in condition by any process of 
manufacture or other means while abroad. This provision, in effect, 
sought to avoid double taxation/duty of such articles.
    Subsequent to the promulgation of item 801.00, TSUS, Congress 
enacted two duty preference schemes--the Caribbean Basin Initiative or 
CBI (enacted as the Caribbean Basin Economic Recovery Act (CBERA), 19 
U.S.C. 2701-2706) and the Generalized System of Preferences or GSP (19 
U.S.C. 2461-2466)--that also provide duty-free treatment for certain 
imports from designated beneficiary developing countries (BDCs). Item 
801.00, TSUS, however, was drafted in language that precluded its 
application to articles that were entered duty free in the first 
instance. Thus, item 801.00, TSUS, operates to frustrate the purpose of 
those preference programs of encouraging development through trade.
    The Trade and Tariff Act of 1984 (the Act), 19 U.S.C. 1654 note, 
Public Law 98-573, 98 Stat. 2948, approved October 30, 1984, and 
effective as provided, was enacted to change the tariff treatment 
accorded certain articles and for other purposes. Section 118 of the 
Act, entitled ``Reimportation of certain articles originally imported 
duty free'' and effective November 14, 1984, sought to correct the 
unanticipated discriminatory effects of item 801.00, TSUS, on eligible 
products from BDCs by amending that provision to extend duty-free 
treatment to goods which were previously entered free of duty pursuant 
to the CBI and GSP preference programs.
    Section 10.108 of the Customs Regulations (19 CFR 10.108) pertains 
to the entry of reimported articles exported under lease, but has not 
been amended to reflect the provisions of section 118 of the Act. 
Accordingly, Sec. 10.108 is amended to enable articles initially 
entered duty free under the CBI and GSP programs to be exported and 
reimported duty free, provided the other requirements of subheading 
9801.00.20 are complied with.

Inapplicability of Public Notice and Delayed Effective Date 
Requirements, the Regulatory Flexibility Act, and Executive Order 12866

    Because this amendment merely reflects a statutory requirement that 
confers a benefit upon the public, pursuant to 5 U.S.C. 553(b)(B), 
notice and public procedure thereon are not required. Further, for the 
same reasons, good cause exists for dispensing with a delayed effective 
date under 5 U.S.C. 553(d) (1) and (3). Since this document is not 
subject to the notice and public procedure requirements of 5 U.S.C. 
553, it is not subject to provisions of the Regulatory Flexibility Act 
(5 U.S.C. 601 et seq.). This amendment is not a significant regulatory 
action as specified in E.O. 12866.

Drafting Information

    The principal author of this document was Gregory R. Vilders, 
Regulations Branch.

List of Subjects in 19 CFR Part 10

    Customs duties and inspection, Exports, Foreign relations, Imports, 
Preference programs, Reporting and recordkeeping requirements, Trade 
agreements (Caribbean Basin Initiative, Generalized System of 
Preferences).

Amendment to the Regulations

    To implement the provisions of section 118 of the Trade and Tariff 
Act of 1984, part 10, Customs Regulations (19 CFR part 10), is amended 
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 as 
follows:

    Authority: 19 U.S.C. 66, 1202, 1481, 1484, 1498, 1508, 1623, 
1624;
* * * * *
    2. Section 10.108 is revised to read as follows:


Sec. 10.108  Entry of reimported articles exported under lease.

    Free entry shall be accorded under subheading 9801.00.20, 
Harmonized Tariff Schedule of the United States (HTSUS), whenever it is 
established to the satisfaction of the district director that the 
article for which free entry is claimed was duty paid on a previous 
importation or was previously entered free of duty pursuant to the 
Caribbean Basin Economic Recovery Act or Title V of the Trade Act of 
1974, is being reimported without having been advanced in value or 
improved in condition by any process of manufacture or other means, was 
exported from the United States under a lease or similar use agreement, 
and is being reimported by or for the account of the person who 
imported it into, and exported it from, the United States.

    Approved: March 29, 1994.
George J. Weise,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-8808 Filed 4-12-94; 8:45 am]
BILLING CODE 4820-02-P