[Federal Register Volume 59, Number 94 (Tuesday, May 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11856]


[[Page Unknown]]

[Federal Register: May 17, 1994]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 123, 145 and 178

[T.D. 94-47]
RIN 1515-AB40

 

Elimination of Certain Documentation Requirements for Articles 
Entered Under Various Special Tariff Treatment Programs and Provisions

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations by removing 
certain documentation requirements relating to the entry of articles 
claimed to be entitled to a partial duty exemption or duty-free 
treatment under various special tariff provisions or programs. These 
provisions and programs involve the following: (1) American goods 
returned; (2) U.S.-made photographic films and dry plates returned 
after having been exposed abroad; (3) goods exported for repairs or 
alterations; (4) U.S.-processed metal articles exported for further 
processing; (5) the Generalized System of Preferences; and (6) the 
Caribbean Basin Initiative. The amendments reduce regulatory procedures 
and paperwork and thus facilitate the entry process for both the public 
and Customs without affecting the ability of Customs to ensure 
compliance with the basic legal requirements under these provisions and 
programs.

EFFECTIVE DATE: June 16, 1994.

FOR FURTHER INFORMATION CONTACT: Craig Walker, Office of Regulations 
and Rulings, 202-482-6980.

SUPPLEMENTARY INFORMATION:

Background

    In order to reduce regulatory procedures and paperwork and thus 
facilitate the merchandise entry process, on January 15, 1993, Customs 
published in the Federal Register (58 FR 4615) a notice of proposed 
rulemaking to amend the Customs Regulations by removing certain 
documentation requirements relating to the entry of articles claimed to 
be entitled to a partial duty exemption or duty-free treatment under 
various special tariff provisions or programs.
    The substantive proposals set forth in the document involved the 
following:
    1. In order to eliminate procedural burdens and delays and 
duplications of information collection, it was proposed to remove or 
revise certain paragraphs within Sec. 10.1 of the Customs Regulations 
(19 CFR 10.1) to eliminate use of Customs Form 3311, Declaration for 
Free Entry of Returned American Products, for purposes of (a) duty-free 
treatment on products of the United States which are returned without 
having been advanced in value or improved in condition while abroad, as 
provided in subheading 9801.00.10, Harmonized Tariff Schedule of the 
United States (HTSUS), and (b) duty-free treatment on certain 
photographic films and dry plates manufactured in the United States and 
exposed abroad, as provided in subheading 9802.00.20, HTSUS. As a 
consequence of the elimination of Customs Form 3311 for purposes of 
these two tariff provisions, the document also proposed to amend 
Sec. 10.1 to require submission of a new declaration by the owner, 
importer, consignee or agent setting forth certain necessary and 
nonduplicative information elements contained on Customs Form 3311 and, 
where the returned article has a value of $1,000 or more and is not 
clearly marked with the name and address of the U.S. manufacturer, to 
allow the district director to require such other documentation or 
evidence as may be necessary to substantiate the claim for duty-free 
treatment.
    2. Again in order to eliminate procedural burdens and delays and 
duplications of information collection, it was proposed to revise 
Secs. 10.8 and 10.9 of the Customs Regulations (19 CFR 10.8 and 10.9) 
to eliminate use of Customs Form 4455, Certificate of Registration, for 
articles exported for repairs, alterations or processing and returned 
to the United States with a claim for reduced-duty treatment under 
subheading 9802.00.40, 9802.00.50 or 9802.00.60, HTSUS. As a 
consequence of the elimination of Customs Form 4455 for purposes of 
these three tariff provisions, the document also proposed to amend 
Secs. 10.8 and 10.9 to set forth a new standard format for the 
declaration by the owner, importer, consignee or agent required under 
the regulations in order to reflect certain necessary and 
nonduplicative information elements contained on Customs Form 4455.
    3. Finally, in order to reduce unnecessary paperwork, the document 
proposed to amend the Customs Regulations by eliminating use of the 
Certificate of Origin Form A in connection with claims for duty-free 
treatment under the Generalized System of Preferences (GSP) and the 
Caribbean Basin Initiative (CBI), principally by revising Sec. 10.173 
(19 CFR 10.173) in the case of the GSP and Sec. 10.198 (19 CFR 10.198) 
in the case of the CBI. Under the revised sections, the existing GSP or 
CBI Declaration would, if requested by Customs, serve as the basic 
documentary evidence to support the claim for duty-free treatment for 
merchandise not wholly the growth, product, or manufacture of the 
producing country and, in the case of merchandise which is wholly the 
growth, product, or manufacture of the producing country, a statement 
to that effect would have to be included on the commercial invoice or 
entry summary.
    The notice of proposed rulemaking invited public comments on the 
proposals, which would be considered before adoption of a final rule. 
The public comment period closed on March 16, 1993.

Analysis of Comments

    A total of eight commenters responded to the solicitation of 
comments during the public comment period. Of these, four commenters 
put forth no objections to the proposed regulatory changes and 
affirmatively supported one or more aspects thereof. The remaining 
commenters, although generally supportive of the purpose of the 
proposed amendments, also presented some objections and suggested some 
changes regarding the proposals. These objections and suggested 
changes, and the Customs responses thereto, are set forth below.
    Comment: It is unclear how the elimination of Customs Forms 3311 
and 4455 in the circumstances described in the notice would eliminate 
an administrative burden on Customs and provide benefits to the trade 
community when essentially the same information will be required in a 
different format (e.g., ``statements'' and ``declarations''). The 
change may add an element of confusion which could negate the 
simplification efforts. Customs Form 3311 should be retained for 
articles entered under subheading 9801.00.10, HTSUS, as the form is 
concise, provides all the information needed by Customs, and would 
eliminate the need for a new document (the declaration by the owner, 
importer, consignee or agent). Although present Sec. 10.1(a)(3) 
requires the certificate of exportation on the bottom portion of 
Customs Form 3311 to be executed by the district director at the port 
of exportation, the current version of CF 3311 contains no certificate 
of exportation.
    Customs response: The comment regarding the certificate of 
exportation is correct. However, Customs notes that the present 
regulatory provision would take precedence so as to require a 
certificate of exportation even where the extant form does not include 
it. The elimination of Customs Form 3311 in the circumstances set forth 
in the notice will rectify this anomalous situation, and it is further 
noted that where Customs Form 3311 would continue in use, the 
underlying regulatory provisions (Secs. 10.1 (g), (h), (i) and (j)) 
either do not mention, or expressly provide for non-use of, the 
certificate of exportation.
    Customs continues to believe that the elimination of Customs Forms 
3311 and 4455 under the circumstances set forth in the notice would 
save time and expense for both Customs and the importing community. 
Although the proposed amendments to Sec. 10.1 would require the 
submission of a new document (the declaration by the owner, importer, 
consignee or agent) to reflect certain information elements of Customs 
Form 3311, the declaration would not include other information 
available elsewhere in the entry package but currently required by 
Customs Form 3311. Such latter information includes the port and 
district, the date, the entry number and date, and the marks, numbers, 
description and value of the articles returned.
    Similar benefits would result from the elimination of Customs Form 
4455 for articles entered under subheadings 9802.00.40, 9802.00.50, and 
9802.00.60, HTSUS. The proposed amendments to Secs. 10.8 and 10.9 would 
eliminate the frequently impractical and time-consuming procedure 
involving examination of the goods and endorsement of the Customs Form 
4455 by a Customs officer prior to exportation. In addition, certain 
information set forth elsewhere in the entry package but currently 
required to be provided on Customs Form 4455 would no longer be 
required, including the name of the exporting carrier, the bill of 
lading or insured number, the reason the articles are exported, a 
description of the articles, and the number and kind of packages.
    Although some confusion on the part of the trade community and 
Customs may be inevitable whenever documentation requirements are 
eliminated or changed in some way, Customs believes that the benefits 
which would accrue from eliminating unnecessary procedures and 
redundant information collections far outweigh any temporary 
difficulties that may result. In order to minimize any confusion which 
could otherwise result when the proposed amendments to Secs. 10.1, 10.8 
and 10.9 (as well as to Secs. 10.173 and 10.198 relating to the 
elimination of the Certificate of Origin Form A) take effect as a final 
rule, Customs will issue appropriate instructions to Customs field 
offices, for dissemination to the trade community as well, regarding 
the changed documentation requirements.
    Comment: There is no need to require that the declaration by the 
owner, importer, consignee or agent provided for in proposed 
Sec. 10.1(a)(2) include the reason for the return of the U.S.-origin 
article. This information is already provided to Customs when the 
importer inserts on the entry summary the appropriate statistical 
suffix under subheading 9801.00.10, HTSUS.
    Customs response: Customs agrees. Accordingly, Sec. 10.1(a)(2) as 
set forth below has been modified to not include in the declaration by 
the owner, importer, consignee, or agent the reason for the return of 
the articles.
    Comment: The reference in paragraphs (a) and (b) of proposed 
Sec. 10.1 to ``$1,000'' should be replaced by ``$1,250'' which is 
currently the general maximum for informal entries.
    Customs response: Customs agrees. Accordingly, the references to 
``$1,000'' are changed to ``$1,250'' in Secs. 10.1(a) and (b) as set 
forth below.
    Comment: Proposed Sec. 10.1(b) gives the district director 
discretion to require ``such other documentation or evidence as may be 
necessary to substantiate the claim for duty-free treatment'' where the 
value of the returned articles exceeds $1,000 and they are not clearly 
marked with the name and address of the U.S. manufacturer. This 
provision should be revised to specifically identify the kind of 
additional documentation and evidence that would be acceptable, as well 
as the circumstances under which such documentation or evidence could 
be requested. Without this change, there would be no limit to the 
number and types of documents and evidence that district directors 
could require, perhaps resulting in increased, rather than reduced, 
paperwork as well as less administrative uniformity among the Customs 
districts.
    Customs response: As a general proposition, an importer must meet 
its burden of satisfying a district director that articles are entitled 
to duty-free treatment under subheading 9801.00.10 or 9802.00.20, 
HTSUS. It is a common practice for district directors to request a 
statement from the U.S. manufacturer of the article verifying that the 
article was, in fact, made in the United States. In order to ensure 
that only those articles meeting the conditions and requirements of 
these tariff provisions will receive duty-free treatment, Customs 
believes it is important for district directors to have the discretion 
to require a U.S. manufacturer's certificate or some other appropriate 
document or other evidence of U.S. origin.
    Proposed Sec. 10.1(b) was derived, to a great extent, from the 
following sentence which appears on the current version of Customs Form 
3311:

    If the value of the article is $10,000 or more and the articles 
are not clearly marked with the name and address of U.S. 
manufacturer, please attach copies of any documentation or other 
evidence that you have that will support or substantiate your claim 
for duty-free status as American Goods Returned.

    Proposed Sec. 10.1(b) contained a $1,000 minimum amount (changed in 
this document to $1,250 as stated above) rather than the $10,000 used 
in the above-quoted sentence because (1) the $1,000 figure appears in 
present Sec. 10.1(b) which is analogous in function to proposed 
Sec. 10.1(b), and (2) it was determined that use of the higher amount 
would unnecessarily restrict the district director's ability to ensure 
that only articles meeting the terms of subheading 9801.00.10 or 
9802.00.20, HTSUS, would receive duty-free treatment. It should be 
noted that whereas the submission of additional documentation or 
evidence is required by the above-quoted sentence on Customs Form 3311 
under the described circumstances, it was made discretionary with the 
district director in proposed new Sec. 10.1(b).
    Customs agrees that new Sec. 10.1(b) should set forth examples of 
the types of additional documentation or evidence that would be 
acceptable. Accordingly, the following second sentence has been added 
to Sec. 10.1(b) as set forth below: ``Such documentation or evidence 
may include a statement from the U.S. manufacturer verifying that the 
articles were made in the United States, or a U.S. export invoice, bill 
of lading or airway bill evidencing the U.S. origin of the articles 
and/or the reason for the exportation of the articles.''
    Comment: The declaration by the foreign shipper presently required 
in Sec. 10.1(a)(1) (which would remain unchanged in the proposed 
amendments to Sec. 10.1) should be eliminated because it is rarely 
submitted or required. Moreover, since the foreign shipper usually has 
no specific knowledge of the origin of the returned article, his/her 
statement regarding the U.S. origin of the article is meaningless.
    Customs response: Customs does not agree that the declaration of 
the foreign shipper presently required by Sec. 10.1(a)(1) should be 
eliminated. It contains information which assists the district director 
in determining whether the imported articles meet the conditions and 
requirements of subheading 9801.00.10, HTSUS, such as whether the 
articles were advanced in value or improved in condition while abroad. 
The declaration similarly assists the district director in regard to 
entries under subheading 9802.00.20, HTSUS. If the district director 
determines that this declaration is unnecessary, he/she may waive 
production of the document pursuant to Sec. 10.1(d).
    It is true that in most cases the foreign shipper will not have 
specific knowledge of the U.S. origin of the returned article. For this 
reason, and because the declaration of the owner, importer, consignee 
or agent includes the identity and location of the U.S. manufacturer, 
Customs agrees that the portion of the declaration of the foreign 
shipper regarding the U.S. origin of the article should be deleted. 
Section 10.1(a)(1), as set forth below, has been modified accordingly.
    Comment: The documentation requirements in proposed Sec. 10.8 fail 
to cover articles entered duty free under statistical suffix 10 of 
subheading 9802.00.50, HTSUS. This statistical breakout encompasses 
``Articles for which duty free treatment is claimed under U.S. Note 
2(b) to this subchapter'' (Subchapter II, Chapter 98, HTSUS). Note 2(b) 
provides that no article (except textile and apparel articles, 
petroleum and certain petroleum products) may be treated as a foreign 
article or as subject to duty if it is assembled or processed in a CBI 
beneficiary country wholly of components or ingredients of U.S. origin 
and neither the article nor the components or ingredients enters the 
commerce of a non-CBI country.
    Customs response: The statutory provision (section 222 of the 
Customs and Trade Act of 1990, Public Law 101-382, 104 Stat. 629) which 
amended Note 2 to create this separate duty-free program failed to 
provide for a separate HTSUS subheading under which articles qualifying 
for such treatment may be entered. Therefore, as a matter of 
administrative convenience, statistical suffix 10 of subheading 
9802.00.50, HTSUS, was specifically created for the entry of certain 
Note 2(b) articles. The conditions and requirements of Note 2(b) are 
entirely different from those of subheading 9802.00.50, HTSUS. Thus, 
Customs believes that including the documentation requirements for Note 
2(b) articles in Sec. 10.8 would be unnecessarily confusing. Customs 
intends to publish separate regulatory proposals relating to Note 2(b) 
in the near future.
    Comment: The notice proposes to eliminate the requirement in 
Secs. 10.173 and 10.198 that the importer or consignee file a 
Certificate of Origin Form A with Customs in connection with the entry 
of articles for which duty-free treatment is claimed under the GSP and 
CBI. Why is the Form A also not being eliminated as a documentation 
requirement under the U.S.-Israel Free Trade Area Implementation Act of 
1985?
    Customs response: Unlike the GSP and CBI, the U.S.-Israel Free 
Trade Area (FTA) Agreement specifically provides in Annex 3 for the 
submission of a Certificate of Origin when the claim for duty-free or 
reduced-duty treatment is made. Therefore, eliminating the Certificate 
of Origin Form A for articles claimed to be entitled to special tariff 
treatment under the U.S.-Israel FTA would require modifications to the 
Agreement itself. The United States cannot undertake such action 
unilaterally.
    Comment: Proposed Secs. 10.173(a)(2) and 10.198(a)(2), relating to 
the GSP and CBI, respectively, provide that where merchandise covered 
by a formal entry is wholly the growth, product, or manufacture of a 
single beneficiary country, a statement to that effect shall be 
included on the commercial invoice and entry summary. Requiring the 
statement on both the commercial invoice and entry summary is a 
wasteful duplication of information collection; it should be required 
only on the invoice.
    Customs response: Customs agrees that the statement should be 
required only on the commercial invoice provided to Customs. Sections 
10.173(a)(2) and 10.198(a)(2) as set forth below have been modified 
accordingly.
    Comment: While the ``wholly the growth, product or manufacture'' 
statement is required by proposed Secs. 10.173(a)(2) and 10.198(a)(2), 
no such similar statement is required by proposed Secs. 10.173(a)(1) 
and 10.198(a)(1), relating to merchandise which is not ``wholly the 
growth, product, or manufacture'' of a beneficiary country. With the 
elimination of the Form A, it would be prudent to require, with respect 
to all merchandise for which GSP or CBI treatment is requested, a 
statement on the commercial invoice that the merchandise either is or 
is not ``wholly the growth, product or manufacture'' of a beneficiary 
country and that the merchandise satisfies all of the GSP or CBI 
requirements for duty-free entry. The proposed regulations should 
authorize the district director to waive the requirement for such a 
statement on the commercial invoices where he/she is otherwise 
satisfied that the merchandise qualifies for GSP or CBI treatment.
    Customs response: In instances in which the commercial invoice does 
not include a statement that the merchandise is ``wholly the growth, 
product or manufacture'' of a beneficiary country, Customs believes 
that it can reasonably be inferred that the merchandise is not such. 
Thus, it is not necessary to require the suggested negative statement 
in those instances. Moreover, it is Customs position that when a claim 
for GSP or CBI treatment is made, the importer is asserting that the 
merchandise satisfies all of the GSP or CBI requirements for duty-free 
entry. Therefore, there is no need to require a separate statement on 
the commercial invoice that the merchandise satisfies those 
requirements.

Conclusion

    Accordingly, based on the comments received and the analysis of 
those comments as set forth above, Customs believes that the proposed 
regulatory amendments should be adopted as a final rule with certain 
changes thereto as discussed above and set forth below. As a 
consequence of the adoption of these substantive regulatory amendments, 
this document also includes an appropriate update of the list of 
information collection approvals contained in Sec. 178.2 of the Customs 
Regulations (19 CFR 178.2).

Regulatory Flexibility Act

    Pursuant to the provisions of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.), it is certified that the regulations will not have 
a significant economic impact on a substantial number of small 
entities. The regulations eliminate duplicative or otherwise 
unnecessary paperwork requirements and thus reduce the regulatory 
burden and consequent economic impact on those entities which file 
claims for tariff treatment under the subject provisions and programs. 
Accordingly, the regulations are not subject to the regulatory analysis 
or other requirements of 5 U.S.C. 603 and 604.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Paperwork Reduction Act

    The collection of information requirements contained in these final 
regulations have been reviewed and approved by the Office of Management 
and Budget in accordance with the Paperwork Reduction Act of 1980 (44 
U.S.C. 3504(h)) under control number 1515-0194. The estimated average 
annual burden associated with this collection is .6 hours per 
respondent or recordkeeper. Comments concerning the accuracy of this 
burden estimate and suggestions for reducing this burden should be 
directed to the U.S. Customs Service, Paperwork Management Branch, Room 
6316, 1301 Constitution Avenue, NW., Washington, DC 20229, or the 
Office of Management and Budget, Attention: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503.

Drafting Information

    The principal author of this document was Francis W. Foote, Office 
of Regulations and Rulings, U.S. Customs Service. However, personnel 
from other offices participated in its development.

List of Subjects

19 CFR Part 10

    Customs duties and inspection, Exports, Imports, Preference 
programs, Reporting and recordkeeping requirements.

19 CFR Part 123

    Canada, Customs duties and inspection, Imports, Mexico.

19 CFR Part 145

    Customs duties and inspection, Imports, Postal service.

19 CFR Part 178

    Collections of information, Paperwork requirements, Reporting and 
recordkeeping requirements.

Amendments to the Regulations

    Parts 10, 123, 145 and 178, Customs Regulations (19 CFR parts 10, 
123, 145 and 178), are amended as set forth below.

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

    1. The general authority citation for Part 10 is revised, and the 
specific authority citations for Secs. 10.171 through 10.178 and 
Secs. 10.191 through 10.198 continue to read, as follows:


    Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized 
Tariff Schedule of the United States), 1481, 1484, 1498, 1508, 1623, 
1624;
* * * * *
    Sections 10.171 through 10.178 also issued under 19 U.S.C. 2461 
et seq.;
    Sections 10.191 through 10.198 also issued under 19 U.S.C. 2701 
et seq.;
* * * * *
    2. In Sec. 10.1, paragraph (a)(3) is removed, and the introductory 
text of paragraph (a), the introductory text and paragraph of the 
declaration by the foreign shipper before the table in paragraph 
(a)(1), paragraphs (a)(2), (b), (d), (f) and (h)(2), the first sentence 
of paragraph (i), and the first sentence of paragraph (j)(2) are 
revised to read as follows:


Sec. 10.1  Domestic products; requirements on entry.

    (a) Except as otherwise provided for in paragraph (g), (h), (i) or 
(j) of this section or elsewhere in this part or in Sec. 145.35 of this 
chapter, the following documents shall be filed in connection with the 
entry of articles in a shipment valued over $1,250 and claimed to be 
free of duty under subheading 9801.00.10 or 9802.00.20, Harmonized 
Tariff Schedule of the United States (HTSUS):
    (1) A declaration by the foreign shipper in substantially the 
following form:


    I, ____________________________,
declare that to the best of my knowledge and belief the articles 
herein specified were exported from the United States, from the port 
of ________________ on or about ________________, 19______, and that 
they are returned without having been advanced in value or improved 
in condition by any process of manufacture or other means.
* * * * *
    (2) A declaration by the owner, importer, consignee, or agent 
having knowledge of the facts regarding the claim for free entry. If 
the owner or ultimate consignee is a corporation, such declaration may 
be signed by the president, vice president, secretary, or treasurer of 
the corporation, or may be signed by any employee or agent of the 
corporation who holds a power of attorney executed under the conditions 
outlined in subpart C, part 141 of this chapter and a certification by 
the corporation that such employee or other agent has or will have 
knowledge of the pertinent facts. This declaration shall be in 
substantially the following form:


    I, ____________________________,
declare that the (above) (attached) declaration by the foreign 
shipper is true and correct to the best of my knowledge and belief, 
that the articles were manufactured by ________________ (name of 
manufacturer) located in ________________ (city and state), that the 
articles were not manufactured or produced in the United States 
under subheading 9813.00.05, HTSUS, and that the articles were 
exported from the United States without benefit of drawback.

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(Date)

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(Address)

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(Signature)

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(Capacity)


    (b) In any case in which the value of the returned articles exceeds 
$1,250 and the articles are not clearly marked with the name and 
address of the U.S. manufacturer, the district director may require, in 
addition to the declarations required in paragraph (a) of this section, 
such other documentation or evidence as may be necessary to 
substantiate the claim for duty-free treatment. Such other 
documentation or evidence may include a statement from the U.S. 
manufacturer verifying that the articles were made in the United 
States, or a U.S. export invoice, bill of lading or airway bill 
evidencing the U.S. origin of the articles and/or the reason for the 
exportation of the articles.
* * * * *
    (d) If the district director is reasonably satisfied, because of 
the nature of the articles or production of other evidence, that the 
articles are imported in circumstances meeting the requirements of 
subheading 9801.00.10 or 9802.00.20, HTSUS, and related section and 
additional U.S. notes, he may waive the requirements for producing the 
documents specified in paragraph (a) of this section.
* * * * *
    (f) In the case of photographic films and dry plates manufactured 
in the United States (except motion picture films to be used for 
commercial purposes) exposed abroad and entered under subheading 
9802.00.20, HTSUS, the requirements of paragraphs (a) and (c) of this 
section are applicable except that the declaration by the foreign 
shipper provided for in paragraph (a)(1) to the effect that the 
articles ``are returned without having been advanced in value or 
improved in condition by any process of manufacture or other means'' 
shall be crossed out, and the entrant shall show on the declaration 
provided for in paragraph (a)(2) that the subject articles when 
exported were of U.S. manufacture and are returned after having been 
exposed, or exposed and developed, and, in the case of motion picture 
films, that they will not be used for commercial purposes.
* * * * *
    (h) * * *
    (2) The documentation described in paragraph (a) of this section 
shall not be required in connection with an entry for nonconsumable 
vessel stores and equipment on Customs Form 3311.
* * * * *
    (i) When the total value of articles of claimed American origin 
contained in any shipment does not exceed $250 and such articles are 
found to be unquestionably products of the United States and do not 
appear to have been advanced in value or improved in condition while 
abroad and no quota is involved, free entry thereof may be made under 
subheading 9801.00.10 on Customs Form 3311, executed by the owner, 
importer, consignee, or agent and filed in duplicate, without regard to 
the requirement of filing the documentation provided for in paragraph 
(a) of this section, unless the Customs officer has reason to believe 
that Customs drawback or exemption from internal revenue tax, or both, 
were probably allowed on exportation of the articles or that they are 
otherwise subject to duty. * * *
    (j) * * *
    (2) After having been either rejected or returned by the foreign 
purchaser to the United States for credit, free entry thereof may be 
made under subheading 9801.00.10, HTSUS, on Customs Form 3311 (a 
Customs Form 7501 must be submitted as well for such articles as 
provided in Sec. 143.23(h) of this chapter), executed by the owner, 
importer, consignee, or agent and filed in duplicate, without regard to 
the requirement of filing the documentation provided for in paragraph 
(a) of this section, unless the Customs officer has reason to believe 
that Customs drawback or exemption from internal revenue tax, or both, 
were probably allowed on exportation of the articles or that they are 
otherwise subject to duty. * * *
    3. Section 10.8 is revised to read as follows:


Sec. 10.8  Articles exported for repairs or alterations.

    (a) Except as otherwise provided for in this section, the following 
documents shall be filed in connection with the entry of articles which 
are returned after having been exported for repairs or alterations and 
which are claimed to be subject to duty only on the value of the 
repairs or alterations performed abroad under subheading 9802.00.40 or 
9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS):
    (1) A declaration from the person who performed such repairs or 
alterations, in substantially the following form:


  I, ________________,-------------------------------------------------
declare that the articles herein specified are the articles which, 
in the condition in which they were exported from the United States, 
were received by me (us) on ________________, 19________________, 
from ________________ (name and address of owner or exporter in the 
United States); that they were received by me (us) for the sole 
purpose of being repaired or altered; that only the repairs or 
alterations described below were performed by me (us); that the full 
cost or (when no charge is made) value of such repairs or 
alterations are correctly stated below; and that no substitution 
whatever has been made to replace any of the articles originally 
received by me (us) from the owner or exporter thereof mentioned 
above. 

------------------------------------------------------------------------
                                                 Full cost              
                                                or (when no             
                                                 charge is              
                                   Description  made) value  Total value
                                   of articles   of repairs  of articles
        Marks and numbers             and of         or         after   
                                    repairs or  alterations   repairs or
                                   alterations      (see     alterations
                                                 subchapter             
                                                II, chapter             
                                                 98, HTSUS)             
------------------------------------------------------------------------
                                   ...........  ...........  ...........
                                   ...........  ...........  ...........
                                   ...........  ...........  ...........
------------------------------------------------------------------------

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(Date)

----------------------------------------------------------------------
(Address)

----------------------------------------------------------------------
(Signature)

----------------------------------------------------------------------
(Capacity)


    (2) A declaration by the owner, importer, consignee, or agent 
having knowledge of the pertinent facts in substantially the following 
form:


      I, __________, __________
declare that the (above) (attached) declaration by the person who 
performed the repairs or alterations abroad is true and correct to 
the best of my knowledge and belief; that the articles were not 
manufactured or produced in the United States under subheading 
9813.00.05, HTSUS; that such articles were exported from the United 
States for repairs or alterations and without benefit of drawback 
from ________________ (port) on ________________, 
19________________; and that the articles entered in their repaired 
or altered condition are the same articles that were exported on the 
above date and that are identified in the (above) (attached) 
declaration.

----------------------------------------------------------------------
(Date)

----------------------------------------------------------------------
(Address)

----------------------------------------------------------------------
(Signature)

----------------------------------------------------------------------
(Capacity)

    (b) The district director may require such additional documentation 
as is deemed necessary to prove actual exportation of the articles from 
the United States for repairs or alterations, such as a foreign customs 
entry, foreign customs invoice, foreign landing certificate, bill of 
lading, or an airway bill.
    (c) If the district director concerned is satisfied, because of the 
nature of the articles or production of other evidence, that the 
articles are imported under circumstances meeting the requirements of 
subheading 9802.00.40 or 9802.00.50, HTSUS, and related section and 
additional U.S. notes, he may waive submission of the declarations 
provided for in paragraph (a) of this section.
    (d) The district director shall require at the time of entry a 
deposit of estimated duties based upon the full cost or value of the 
repairs or alterations. The cost or value of the repairs or alterations 
outside the United States, which is to be set forth in the invoice and 
entry papers as the basis for the assessment of duty under subheading 
9802.00.40 or 9802.00.50, HTSUS, shall be limited to the cost or value 
of the repairs or alterations actually performed abroad, which will 
include all domestic and foreign articles furnished for the repairs or 
alterations but shall not include any of the expenses incurred in this 
country whether by way of engineering costs, preparation of plans or 
specifications, furnishing of tools or equipment for doing the repairs 
or alterations abroad, or otherwise.
    4. Section 10.9 is revised to read as follows:


Sec. 10.9  Articles exported for processing.

    (a) Except as otherwise provided for in this section, the following 
documents shall be filed in connection with the entry of articles which 
are returned after having been exported for further processing and 
which are claimed to be subject to duty only on the value of the 
processing performed abroad under subheading 9802.00.60, Harmonized 
Tariff Schedule of the United States (HTSUS):
    (1) A declaration by the person who performed the processing 
abroad, in substantially the following form:

      I, __________, __________
declare that the articles herein specified are the articles which, 
in the condition in which they were exported from the United States, 
were received by me (us) on ____________, 19 ______, from 
________________ (name and address of owner or exporter in the 
United States); that they were received by me (us) for the sole 
purpose of being processed; that only the processing described below 
was effected by me (us); that the full cost or (when no charge is 
made) value of such processing and the value of the articles after 
processing are correctly stated below; and that no substitution 
whatever has been made to replace any of the articles originally 
received by me (us) from the owner or exporter thereof mentioned 
above. 

------------------------------------------------------------------------
                                                   Full cost            
                                                   or (when             
                                                   no charge            
                                                   is made)             
                                     Description   value of      Total  
                                     of articles  processing   value of 
         Marks and numbers              and of       (see      articles 
                                     processing   subchapter     after  
                                                      II,     processing
                                                    chapter             
                                                  98, HTSUS)            
                                                                        
------------------------------------------------------------------------
                                     ...........  ..........  ..........
                                     ...........  ..........  ..........
                                     ...........  ..........  ..........
------------------------------------------------------------------------

----------------------------------------------------------------------
(Date)

----------------------------------------------------------------------
(Address)

----------------------------------------------------------------------
(Signature)

----------------------------------------------------------------------
(Capacity)

    (2) A declaration by the owner, importer, consignee, or agent 
having knowledge of the pertinent facts in substantially the following 
form:

  I, ,P----------------------------------------------------------------
declare that the (above) (attached) declaration by the person who 
performed the processing abroad is true and correct to the best of 
my knowledge and belief; that the articles were manufactured in the 
United States by ________________ (name and address) or, if of 
foreign origin, were subjected to ________________ (show processes 
of manufacture, such as molding, casting, machining) in the United 
States by ________________ (name and address); that the articles 
were not manufactured or produced in the United States under 
subheading 9813.00.05, HTSUS; that the articles were exported for 
processing and without benefit of drawback from ________________ 
(port) on ____________, 19 ______; that the articles entered in 
their processed condition are otherwise the same articles that were 
exported on the above date and that are identified in the (above) 
(attached) declaration; and that the returned articles will be 
subjected to ________________ (describe processing to be performed 
in the United States) by ________________ (name and address of U.S. 
processor).

----------------------------------------------------------------------
(Date)

----------------------------------------------------------------------
(Address)

----------------------------------------------------------------------
(Signature)

----------------------------------------------------------------------
(Capacity)

    (b) The district director may require such additional documentation 
as is deemed necessary to prove actual exportation of the articles from 
the United States for processing, such as a foreign customs entry, 
foreign customs invoice, foreign landing certificate, bill of lading, 
or an airway bill.
    (c) If the district director concerned is satisfied, because of the 
nature of the articles or production of other evidence, that the 
articles are imported under circumstances meeting the requirements of 
subheading 9802.00.60, HTSUS, and related section and additional U.S. 
notes, he may waive submission of the declarations provided for in 
paragraph (a) of this section.
    (d) The district director shall require at the time of entry a 
deposit of estimated duties based upon the full cost or value of the 
processing. The cost or value of the processing outside the United 
States, which is to be set forth in the invoice and entry papers as the 
basis for the assessment of duty under subheading 9802.00.60, HTSUS, 
shall be limited to the cost or value of the processing actually 
performed abroad, which will include all domestic and foreign articles 
used in the processing but shall not include the exported United States 
metal article or any of the expenses incurred in this country whether 
by way of engineering costs, preparation of plans or specifications, 
furnishing of tools or equipment for doing the processing abroad, or 
otherwise.


Sec. 10.172  [Amended]

    5. Section 10.172 is amended by removing the last sentence.
    6. The section heading and the text of section 10.173 are revised 
to read as follows:


Sec. 10.173  Evidence of country of origin.

    (a) Shipments covered by a formal entry.
    (1) Merchandise not wholly the growth, product, or manufacture of a 
beneficiary developing country.
    (i) Declaration. In a case involving merchandise covered by a 
formal entry which is not wholly the growth, product, or manufacture of 
a single beneficiary developing country, the exporter of the 
merchandise or other appropriate party having knowledge of the relevant 
facts shall be prepared to submit directly to the district director, 
upon request, a declaration setting forth all pertinent detailed 
information concerning the production or manufacture of the 
merchandise. When requested by the district director, the declaration 
shall be prepared in substantially the following form:

GSP DECLARATION

  I,-------------------------------------------------------------------
(name), hereby declare that the articles described below were 
produced or manufactured in ________________ (country) by means of 
processing operations performed in that country as set forth below 
and were also subjected to processing operations in the other 
country or countries which are members of the same association of 
countries as set forth below and incorporate materials produced in 
the country named above or in any other country or countries which 
are members of the same association of countries as set forth below: 


----------------------------------------------------------------------------------------------------------------
                                                          Processing operations        Materials produced in a  
                                                          performed on articles        beneficiary developing   
                                                     ------------------------------   country or members of the 
                                                                                          same association      
                                        Description                                -----------------------------
     Number and date of invoices        of articles    Description                   Description                
                                        and quantity  of processing   Direct costs   of material,               
                                                        operations   of processing    production   Cost or value
                                                       and country    operations     process, and   of material 
                                                      of processing                   country of                
                                                                                      production                
----------------------------------------------------------------------------------------------------------------
                                       .............  .............  .............  .............  .............
                                       .............  .............  .............  .............  .............
                                       .............  .............  .............  .............  .............
                                       .............  .............  .............  .............  .............
----------------------------------------------------------------------------------------------------------------

Date-------------------------------------------------------------------
Address----------------------------------------------------------------
Signature--------------------------------------------------------------
Title------------------------------------------------------------------

    (ii) Retention of records and submission of declaration. The 
information necessary for preparation of the declaration shall be 
retained in the files of the party responsible for its preparation and 
submission for a period of 5 years. In the event that the district 
director requests submission of the declaration during the 5-year 
period, it shall be submitted by the appropriate party directly to the 
district director within 60 days of the date of the request or such 
additional period as the district director may allow for good cause 
shown. Failure to submit the declaration in a timely fashion will 
result in a denial of duty-free treatment.
    (2) Merchandise wholly the growth, product, or manufacture of a 
beneficiary developing country. In a case involving merchandise covered 
by a formal entry which is wholly the growth, product, or manufacture 
of a single beneficiary developing country, a statement to that effect 
shall be included on the commercial invoice provided to Customs.
    (b) Shipments covered by an informal entry. Although the filing of 
the declaration provided for in paragraph (a)(1)(i) of this section 
will not be required for a shipment covered by an informal entry, the 
district director may require such other evidence of country of origin 
as deemed necessary.
    (c) Verification of documentation. Any evidence of country of 
origin submitted under this section shall be subject to such 
verification as the district director deems necessary. In the event 
that the district director is prevented from obtaining the necessary 
verification, the district director may treat the entry as dutiable.
    7. Section 10.175 is amended by removing paragraphs (c)(3) and 
(c)(4), redesignating paragraph (c)(5) as (c)(3), and revising 
paragraph (e)(1) to read as follows:


Sec. 10.175  Imported directly defined.

* * * * *
    (e)(1) Shipment to the U.S. from a beneficiary developing country 
which is a member of an association of countries treated as one country 
under section 502(a)(3), Trade Act of 1974, as amended (19 U.S.C. 
2462(a)(3)), through the territory of a former beneficiary developing 
country whose designation as a member of the same association for GSP 
purposes was terminated by the President pursuant to section 504, Trade 
Act of 1974, as amended (19 U.S.C. 2464), provided the articles in the 
shipment did not enter into the commerce of the former beneficiary 
developing country except for purposes of performing one or more of the 
operations specified in paragraph (c)(1) of this section and except for 
purposes of purchase or resale, other than at retail, for export.
* * * * *


Sec. 10.192  [Amended]

    8. Section 10.192 is amended by removing the last sentence.
    9. Section 10.198 is revised to read as follows:


Sec. 10.198  Evidence of country of origin.

    (a) Shipments covered by a formal entry.
    (1) Articles not wholly the growth, product, or manufacture of a 
beneficiary country.
    (i) Declaration. In a case involving an article covered by a formal 
entry which is not wholly the growth, product, or manufacture of a 
single beneficiary country, the exporter or other appropriate party 
having knowledge of the relevant facts in the beneficiary country where 
the article was produced or last processed shall be prepared to submit 
directly to the district director, upon request, a declaration setting 
forth all pertinent detailed information concerning the production or 
manufacture of the article. When requested by the district director, 
the declaration shall be prepared in substantially the following form:

CBI Declaration

    I. ____________________________,
(name), hereby declare that the articles described below (a) were 
produced or manufactured in ________________ (country) by means of 
processing operations performed in that country as set forth below 
and were also subjected to processing operations in the other 
beneficiary country or countries (including the Commonwealth of 
Puerto Rico and the U.S. Virgin Islands) as set forth below and (b) 
incorporate materials produced in the country named above or in any 
other beneficiary country or countries (including the Commonwealth 
of Puerto Rico and the U.S. Virgin Islands) or in the customs 
territory of the United States (other than the Commonwealth of 
Puerto Rico) as set forth below: 

----------------------------------------------------------------------------------------------------------------
                                                          Processing operations        Material produced in a   
                                                          performed on articles       beneficiary country or in 
                                                     ------------------------------           the U.S.          
                                                                                   -----------------------------
                                        Description    Description                   Description                
     Number and date of invoices        of articles   of processing   Direct costs   of material,               
                                        and quantity    operations   of processing    production   Cost or value
                                                       and country     operations    process, and   of material 
                                                      of processing                   country of                
                                                                                      production                
----------------------------------------------------------------------------------------------------------------
                                       .............  .............  .............  .............  .............
                                       .............  .............  .............  .............  .............
                                       .............  .............  .............  .............  .............
                                       .............  .............  .............  .............  .............
----------------------------------------------------------------------------------------------------------------

Date-------------------------------------------------------------------
Address----------------------------------------------------------------
Signature--------------------------------------------------------------
Title------------------------------------------------------------------

    (ii) Retention of records and submission of declaration. The 
information necessary for preparation of the declaration shall be 
retained in the files of the party responsible for its preparation and 
submission for a period of 5 years. In the event that the district 
director requests submission of the declaration during the 5-year 
period, it shall be submitted by the appropriate party directly to the 
district director within 60 days of the date of the request or such 
additional period as the district director may allow for good cause 
shown. Failure to submit the declaration in a timely fashion will 
result in a denial of duty-free treatment.
    (iii) Value added after final exportation. In a case in which value 
is added to an article in a bonded warehouse or in a foreign-trade zone 
in the Commonwealth of Puerto Rico or in the U.S. after final 
exportation of the article from a beneficiary country, in order to 
ensure compliance with the value requirement under Sec. 10.195(a), the 
declaration provided for in paragraph (a)(1)(i) of this section shall 
be filed by the importer or consignee with the entry summary as 
evidence of the country of origin. The declaration shall be properly 
completed by the party responsible for the addition of such value.
    (2) Merchandise wholly the growth, product, or manufacture of a 
beneficiary country. In a case involving merchandise covered by a 
formal entry which is wholly the growth, product, or manufacture of a 
single beneficiary country, a statement to that effect shall be 
included on the commercial invoice provided to Customs.
    (b) Shipments covered by an informal entry. Although the filing of 
the declaration provided for in paragraph (a)(1)(i) of this section 
will not be required for a shipment covered by an informal entry, the 
district director may require such other evidence of country of origin 
as deemed necessary.
    (c) Verification of documentation. Any evidence of country of 
origin submitted under this section shall be subject to such 
verification as the district director deems necessary. In the event 
that the district director is prevented from obtaining the necessary 
verification, the district director may treat the entry as dutiable.

PART 123--CUSTOMS RELATIONS WITH MEXICO AND CANADA

    1. The authority citation for Part 123 continues to read in part as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized 
Tariff Schedule of the United States), 1431, 1433, 1624;
* * * * *
    Section 123.4 also issued under 19 U.S.C. 1484, 1498;
* * * * *


Sec. 123.4  [Amended]

    2. Section 123.4(c) is amended by removing the reference 
``Sec. 10.1(f)'' and adding, in its place, the reference 
``Sec. 10.1(i)''.

PART 145--MAIL IMPORTATIONS

    1. The general authority citation for part 145 is revised, and the 
specific authority citation for Secs. 145.35 through 145.38 and 
Sec. 145.41 continues, to read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized 
Tariff Schedule of the United States), 1624.
* * * * *
    Sections 145.35 through 145.38, 145.41, also issued under 19 
U.S.C. 1498;
* * * * *


Sec. 145.35  [Amended]

    2. Section 145.35 is amended by removing the words ``an importer's 
declaration on Customs Form 3311'' and adding, in their place, the 
words ``the declarations provided for in Sec. 10.1(a) of this 
chapter''.

PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS

    1. The authority citation for part 178 continues to read as 
follows:

    Authority: 5 U.S.C. 301, 19 U.S.C. 1624, 44 U.S.C. 3501 et seq.

    2. Section 178.2 is amended by revising the listings for Secs. 10.1 
and 10.173, removing the listings for Secs. 10.8(e), 10.9(e), and 
10.191-10.198 and adding, in their place respectively, listings for 
Secs. 10.8, 10.9, and 10.198 to read as follows:


Sec. 178.2  Listing of OMB control numbers. 

----------------------------------------------------------------------------------------------------------------
                                                                                                    OMB control 
           19 CFR section                                    Description                                No.     
----------------------------------------------------------------------------------------------------------------
                                                                                                                
                                                  * * * * * * *                                                 
    Sec. 10.1......................  Declarations covering U.S. articles exported and returned         1515-0194
                                      without having been advanced in value or improved in                      
                                      condition.                                                                
    Sec. 10.8......................  Declarations covering articles exported for repairs or            1515-0194
                                      alterations and returned.                                                 
                                                                                                                
                                                                                                                
                                                  * * * * * * *                                                 
    Sec. 10.9......................  Declarations covering metal articles exported for                 1515-0194
                                      processing and returned for further processing.                           
                                                                                                                
                                                                                                                
                                                  * * * * * * *                                                 
    Sec. 10.173....................  Claim for duty-free entry of eligible articles under the          1515-0194
                                      Generalized System of Preferences.                                        
    Sec. 10.198....................  Claim for duty-free entry of eligible articles under the          1515-0194
                                      Caribbean Basin Initiative.                                               
                                                                                                                
                                                                                                                
                                                  * * * * * * *                                                 
----------------------------------------------------------------------------------------------------------------

    Approved: April 28, 1994.
Samuel H. Banks,
Acting Commissioner of Customs.
[FR Doc. 94-11856 Filed 5-16-94; 8:45 am]
BILLING CODE 4820-02-P