[Federal Register Volume 60, Number 70 (Wednesday, April 12, 1995)]
[Rules and Regulations]
[Pages 18542-18543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8917]



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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 10

[T.D. 95-30]
RIN 1515-AB69


Termination of the Bahamas as a Designated Beneficiary Developing 
Country Under the GSP

AGENCY: Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations pertaining to the 
Generalized System of Preferences (GSP) direct importation requirement 
by adding the Bahamas to the list of countries whose membership in an 
association of countries for GSP purposes has been terminated by the 
President. This amendment is intended to clarify that goods of a 
current beneficiary developing country (BDC) member of the Caribbean 
Common Market (CARICOM) may be shipped to the United States through the 
Bahamas and still be considered to be imported directly, provided other 
applicable regulatory requirements are met. Also, the authority 
citation for Part 10 is revised to reference an applicable General Note 
provision of the North American Free Trade Agreement.

EFFECTIVE DATE: April 12, 1995.

FOR FURTHER INFORMATION CONTACT: Lisa Crosby, Office of Field 
Operations (202) 927-0163.

SUPPLEMENTARY INFORMATION: Title V of the Trade Act of 1974, as amended 
(19 U.S.C. 2461-2465), authorizes the President to establish a 
Generalized System of Preferences (GSP)--a trade preference program--to 
provide duty-free treatment for articles which (1) are designated by 
the President as eligible articles for purposes of the GSP, (2) are the 
growth, product, or manufacture of a country designated by the 
President as a beneficiary developing country (BDC) for purposes of the 
GSP, (3) have at least 35 percent of their appraised value attributable 
to the cost or value of materials produced in the BDC and/or the direct 
costs of processing operations performed in the BDC, and (4) are 
imported directly from the BDC into the Customs territory of the United 
States. The Customs Regulations implementing the GSP are contained in 
Secs. 10.171-10.178 (19 CFR 10.171-10.178).
    Limitations on preferential treatment under the GSP are contained 
in 19 U.S.C. 2464. One of the limitations provided for concerns per 
capita gross national product of a BDC for the determination year: If 
the President determines that this measure of a designated BDC exceeds 
the applicable limit for the determination year, then the country will 
no longer be treated as a BDC. 19 U.S.C. 2464(f).
    On February 3, 1995, the President signed Presidential Proclamation 
6767, which provided, inter alia, that he had determined that the per 
capita gross national product of the Bahamas exceeded the applicable 
limit provided for in the Trade Act of 1974. Accordingly, the 
Proclamation deleted the Bahamas from the GSP lists of independent 
countries and member countries of the Caribbean Common Market 
(CARICOM), set forth in General Note 4(a) of the Harmonized Tariff 
Schedule of the United States (HTSUS).
    Section 10.175 of the Customs Regulations (19 CFR 10.175) concerns 
the GSP direct importation requirement. Paragraph (e)(1) of Sec. 10.175 
permits shipment to the United States from a BDC through the territory 
of a former BDC whose designation as a member of the same association 
for GSP purposes was terminated by the President pursuant to 19 U.S.C. 
2464, provided certain requirements are met. Paragraph (e)(2) of 
Sec. 10.175 lists such former BDC association members.
    This document amends Sec. 10.175(e)(2) of the Customs Regulations 
by adding the Bahamas to the list of countries whose membership in an 
association of countries for Generalized System of Preferences (GSP) 
purposes has been terminated by the President. This amendment is 
intended to clarify that goods of a current BDC member of the CARICOM 
may be shipped to the United States through the Bahamas and still be 
considered to be imported directly, provided the requirements of 
Sec. 10.175(e)(1) are satisfied.
    Also, the general authority citation for Part 10 is revised to 
reference certain General Note provisions of the Harmonized Tariff 
Schedule of the United States (HTSUS): General Note 12, which deals 
with provisions of the North American Free Trade Agreement, General 
Note 17, which deals with commingled goods, and General Note 20, which 
authorizes the Secretary of the Treasury to issue rules and regulations 
governing the admission of articles under the provisions of the tariff 
schedule. This document adds these reference changes.

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

    Because this regulation is necessary to support the objectives of 
the existing GSP program and since it constitutes a conforming 
amendment to a benefit already granted the general public, it is 
determined pursuant to 5 U.S.C. 553(b)(B) that notice and public 
procedures are unnecessary and contrary to the public interest. 
Furthermore, for the above reasons, it is determined that good cause 
exists under the provisions of 5 U.S.C. 553(d)(3) for dispensing with a 
delayed effective date. 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 does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Drafting Information

    The principal author of this document was Gregory R. Vilders, 
Attorney, Regulations Branch, U.S. Customs Service. However, personnel 
from other offices participated in its development.

List of Subjects in 19 CFR Part 10

    Customs duties and inspection, Foreign relations, Imports, 
Preference programs, Reporting and recordkeeping requirements, Trade 
agreements (Generalized System of Preferences). [[Page 18543]] 

Amendments to the Regulations

    For the reasons set forth above, 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 is revised to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 
1498, 1508, 1623, 1624;
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Sec. 10.175  [Amended]

    2. In Sec. 10.175, paragraph (e)(2) is amended by adding ``The 
Bahamas'' to the list of countries in appropriate alphabetical order.

    Approved: March 8, 1995.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
Michael H. Lane,
Acting Commissioner of Customs.
[FR Doc. 95-8917 Filed 4-11-95; 8:45 am]
BILLING CODE 4820-02-P