[Federal Register Volume 61, Number 46 (Thursday, March 7, 1996)]
[Notices]
[Pages 9197-9198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5327]



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INTERNATIONAL TRADE COMMISSION

[Investigation No. 332-360]


International Harmonization of Customs Rules of Origin

AGENCY: International Trade Commission.

ACTION: Request for public comment on draft proposals for chapters 64-
70.

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EFFECTIVE DATE: February 28, 1996.

FOR FURTHER INFORMATION CONTACT: Eugene A. Rosengarden, Director, 
Office of Tariff Affairs and Trade Agreements (O/TA&TA) (202-205-2595), 
or Lawrence A. DiRicco (202-205-2606).
    Parties having an interest in particular products or HTS chapters 
and desiring to be included on a mailing list to receive available 
documents pertaining thereto should advise Diane Whitfield by phone 
(202-205-2610) or by mail at the Commission, 500 E Street SW., Room 
404, Washington, DC 20436. Hearing impaired persons are advised that 
information on this matter can be obtained by contacting the 
Commission's TDD terminal on 202-205-1810. The media should contact 
Margaret O'Laughlin, Director, Office of Public Affairs (202-205-1819).

BACKGROUND: Following receipt of a letter from the United States Trade 
Representative (USTR) on January 25, 1995, the Commission instituted 
Investigation No. 332-360, International Harmonization of Customs Rules 
of Origin, under section 332(g) of the Tariff Act of 1930 (60 FR 19605, 
April 19, 1995).
    The investigation is intended to provide the basis for Commission 
participation in work pertaining to the Uruguay Round Agreement on 
Rules of Origin (ARO), under the General Agreement on Tariffs and Trade 
(GATT) 1994 and adopted along with the Agreement Establishing the World 
Trade Organization (WTO).
    The ARO is designed to harmonize and clarify nonpreferential rules 
of origin for goods in trade on the basis of the substantial 
transformation test; achieve discipline in the rules' administration; 
and provide a framework for notification, review, consultation, and 
dispute settlement. These harmonized rules are intended to make 
country-of-origin determinations impartial, predictable, transparent, 
consistent, and neutral, and to avoid restrictive or distortive effects 
on international trade. The ARO provides that technical work to those 
ends will be undertaken by the Customs Cooperation Council (CCC) (now 
informally known as the World Customs Organization or WCO), which must 
report on specified matters relating to such rules for further action 
by parties to the ARO. Eventually, the WTO Ministerial Conference is to 
``establish the results of the harmonization work program in an annex 
as an integral part'' of the ARO.
    In order to carry out the work, the ARO calls for the establishment 
of a Committee on Rules of Origin of the WTO and a Technical Committee 
on Rules of Origin (TCRO) of the CCC. These Committees bear the primary 
responsibility for developing rules that achieve the objectives of the 
ARO.
    A major component of the work program is the harmonization of 
origin rules for the purpose of providing more certainty in the conduct 
of world trade. To this end, the agreement contemplates a 3-year CCC 
program, to be initiated as soon as possible after the entry into force 
of the Agreement Establishing the WTO. Under the ARO, the TCRO is to 
undertake (1) to develop harmonized definitions of goods considered 
wholly obtained in one country, and of minimal processes or operations 
deemed not to confer origin, (2) to consider the use of change in 
Harmonized System classification as a means of reflecting substantial 
transformation, and (3) for those products or sectors where a change of 
tariff classification does not allow for the reflection of substantial 
transformation, to develop supplementary or exclusive origin criteria 
based on value, manufacturing or processing operations or on other 
standards.
    To assist in the Commission's participation in work under the 
Agreement on Rules of Origin (ARO), the Commission is making available 
for public comment draft proposed rules for goods of:

Chapter 64--Footwear, Gaiters and the Like; Parts of Such Articles
Chapter 65--Headgear and Parts Thereof
Chapter 66--Umbrellas, Sun Umbrellas, Walking-Sticks,Seat-Sticks, 
Whips, Riding-Crops, and Parts Thereof
Chapter 67--Prepared Feathers and Down and Articles Made of Feathers or 
of Down; Artificial Flowers; Articles of Human Hair
Chapter 68--Articles of Stone, Plaster, Cement, Asbestos, Mica or 
Similar Materials
Chapter 69--Ceramic Products
Chapter 70--Glass and Glassware

of the Harmonized System that are not considered to be wholly made in a 
single country. The rules rely largely on the change of heading as a 
basis for ascribing origin.
    Copies of the proposed revised rules will be available from the 
Office of the Secretary at the Commission, from the Commission's 
Internet web server (http://www.usitc.gov), or by submitting a request 
on the Office of Tariff Affairs and Trade Agreements voice messaging 
system, 202-205-2592 or by FAX at 202-205-2616.
    These proposals, which have been reviewed by interested government 
agencies, are intended to serve as the basis for the U.S. proposal to 
the Technical Committee on Rules of Origin (TCRO) of the Customs 
Cooperation Council (CCC) (now known as the World Customs Organization 
or WCO).

[[Page 9198]]

The proposals do not necessarily reflect or restate existing Customs 
treatment with respect to country of origin applications for all 
current non-preferential purposes. Based upon a decision of the Trade 
Policy Staff Committee, the proposals are intended for future 
harmonization for the nonpreferential purposes indicated in the ARO for 
application on a global basis. They seek to take into account not only 
U.S. Customs current positions on substantial transformation but 
additionally seek to consider the views of the business community and 
practices of our major trading partners as well. As such they represent 
an attempt at reaching a basis for agreement among the contracting 
parties. The proposals may undergo change as proposals from other 
government administrations and the private sector are received and 
considered. Under the circumstances, the proposals should not be cited 
as authority for the application of current domestic law.
    If eventually adopted by the TCRO for submission to the Committee 
on Rules of Origin of the World Trade Organization, these proposals 
would comprise an important element of the ARO work program to develop 
harmonized, non-preferential country of origin rules, as discussed in 
the Commission's earlier notice. Thus, in view of the importance of 
these rules, the Commission seeks to ascertain the views of interested 
parties concerning the extent to which the proposed rules reflect the 
standard of substantial transformation provided in the Agreement. In 
addition, comments are also invited on the format of the proposed rules 
and whether it is preferable to another presentation, such as the 
format for the presentation of the NAFTA origin or marking rules. 
Forthcoming Commission notices will advise the public on the progress 
of the TCRO's work and will contain any harmonized definitions or rules 
that have been provisionally or finally adopted.

WRITTEN SUBMISSIONS: Interested persons are invited to submit written 
statements concerning this phase of the Commission's investigation. 
Written statements should be submitted as quickly as possible, and 
follow-up statements are permitted; but all statements must be received 
at the Commission by the close of business on April 12, 1996, in order 
to be considered. Information supplied to the Customs Service in 
statements filed pursuant to notices of that agency has been given to 
us and need not be separately provided to the Commission. Again, the 
Commission notes that it is particularly interested in receiving input 
from the private sector on the effects of the various proposed rules 
and definitions on U.S. exports. Commercial or financial information 
which a submitter desires the Commission to treat as confidential must 
be submitted on separate sheets of paper, each marked ``Confidential 
Business Information'' at the top. All submissions requesting 
confidential treatment must conform with the requirements of section 
201.6 of the Commission's Rules of Practice and Procedure (19 CFR 
201.6). All written submissions, except for confidential business 
information, will be available for inspection by interested persons. 
All submissions should be addressed to the Office of the Secretary, 
U.S. International Trade Commission, 500 E Street SW., Washington, DC 
20436.

    Issued: March 1, 1996.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 96-5327 Filed 3-6-96; 8:45 am]
BILLING CODE 7020-02-P