[Federal Register Volume 61, Number 104 (Wednesday, May 29, 1996)]
[Rules and Regulations]
[Pages 26783-26785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12807]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
15 CFR Part 2011
Implementation of Tariff-Rate Quota for Imports of Sugar
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Final rule.
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SUMMARY: This rule makes final the interim final rule published on
October 4, 1990 in the Federal Register governing certificates of quota
eligibility for imports of sugar, specialty sugar, and allocations for
``Other Specified Countries and Areas'', with a change responding to
comments received on that interim final rule and with conforming
changes to reflect the entry into force of the Agreement Establishing
the World Trade Organization (WTO).
EFFECTIVE DATE: May 29, 1996.
ADDRESSES: Office of the United States Trade Representative, Office of
Agricultural Affairs, 600 17th Street NW., Washington, DC 20506.
FOR FURTHER INFORMATION CONTACT:
Thomas Perkins, Senior Economist for Agricultural Affairs, Room 421,
Office of the United States Trade Representative, Washington, DC 20506;
telephone: (202) 395-6127.
SUPPLEMENTARY INFORMATION: As a result of the Uruguay Round Agreements,
approved by the Congress in section 101 of the Uruguay Round Agreements
Act (URAA) (Pub. L. 103-465), the United States has replaced the
previous tariff-rate quota (TRQ) for imports of certain sugars, syrups,
and molasses with a new tariff-rate quota provided in Schedule XX--
United States of America annexed to the Marrakesh Protocol to the
General Agreement on Tariffs and Trade 1994 (GATT 1994). Pursuant to
section 111 of the URAA, the President proclaimed a number of changes
to the Harmonized Tariff Schedule of the United States (HTS) to
implement the new sugar TRQ (President Proclamation No. 6763 of
December 23, 1994). The changes include, among other things, changes in
the HTS item numbers for imports of sugar, the deletion of notes to the
HTS, and the proclaiming of new notes to the HTS.
A number of conforming changes need to be made to the sugar
regulations issued by the United States Trade Representative (USTR) to
reflect these changes to the HTS. This rule makes those conforming
changes, as well as some technical and clerical amendments. Those
conforming changes include correcting the references to the HTS to
reflect the new HTS item numbers and removing subpart C as unnecessary
in light of the fact that the allocations under the new TRQ will be
announced annually.
In addition, when the United States Trade Representative
promulgated the current rule on October 4, 1990 (55 FR 40648), it did
so as an interim rule and invited public comments. This rule includes
an amendment to the definition of specialty sugar in response to the
comments received.
Summary of Issues Raised by Public Comments
Four public comments were received.
Specialty Sugars
One commenter requested that certain edible sugar decorations be
added to the list of products eligible for potential treatment as
``specialty sugars.'' Pursuant to this public comment, this final rule
adds to that list sugar decorations. Two informal comments that were
received after the December 4, 1990, deadline requested that various
other specified sugar products be added to the list of products
eligible for treatment as ``specialty sugars.'' The Office of the
United States Trade Representative, responding to these written
comments, has added to the list: golden granulated sugar, muscovado,
molasses sugar and sugar cubes. The United States Trade Representative
has determined that these specific items are appropriate because they
represent specialty sugars within the normal commerce of the United
States.
The United States Trade Representative also has determined that it
is appropriate to provide in the definition for other forms of sugar
determined by the United States Trade Representative to be specialty
sugar products within the normal commerce of the United States.
Another commenter requested that rock candy be removed from the
list of products which are eligible for potential treatment as
specialty sugar. The commenter's suggestion was not adopted primarily
because rock candy appears to qualify as specialty sugar.
Reallocation of Quota Shortfalls
Finally, a commenter suggested that the rule contain a provision
that if a country were not fully utilizing its allocation under the
tariff-rate quota, then that country's allocation would be
automatically reallocated to other countries. The commenter's
suggestion was not adopted in the final rule because a general
provision to that effect is unnecessary given alternative means by
which unused allocations may be reallocated on a case-by-case bais when
appropriate. Moreover, the HTS authorizes the USTR, in consultation
with the Secretaries of State and Agriculture, to modify or suspend a
country's allocation for the remainder of a quota year whenever he or
she determines that a country will not be filling such allocation and
he or she finds that such action is appropriate to carry out the rights
or obligations of the United States under any international agreement
to which the United States is a party or is appropriate to promote the
economic interests of the United States.
Review
This rule has been determined to be a ``significant regulatory
action'' under Executive Order 12866.
Pursuant to the Unfunded Mandates Reform Act of 1995, USTR has
assessed the effects of this rulemaking action on state, local, and
tribal governments, and the private sector. This action does not compel
the expenditure of $100 million or more by any state, local, or tribal
government, or by anyone in the private sector, and therefore a
statement under section 202 of the Act is not required.
Pursuant to the Paperwork Reduction Act of 1980, the Office of
Management and Budget has approved the information collection
requirements imposed by this rule under Office of Management and Budget
control number 0551-0014. Comments on any burden resulting from the
information collection requirements of this regulation may be forwarded
to: Desk Officer for Agriculture, Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, DC 20503. These
programs are not subject to the provisions of Executive Order 12372
which required intergovernmental consultation with State and local
officials.
No regulatory flexibility analysis is required for this rule since
neither 5 U.S.C. 553 nor any other provision of law requires
publication of a general notice of proposed rulemaking with respect to
this rule. However, the United States Trade Representative has also
determined that the rule will not have
[[Page 26784]]
a significant economic impact on a substantial number of small
entities.
List of Subjects in 15 CFR Part 2011
Certificates of quota eligibility, imports, specialty sugars,
sugar.
Accordingly, the interim rule amending 15 CFR part 2011 which
published at 55 FR 40648 (October 4, 1990) is adopted as a final rule
with the following changes:
PART 2011--ALLOCATION OF TARIFF-RATE QUOTA ON IMPORTED SUGARS,
SYRUPS AND MOLASSES
1. The authority citation for part 2011 is revised to read as
follows:
Authority: 19 U.S.C. 3601, Presidential Proclamation No. 6763,
Additional U.S. note 5 to chapter 17 of the Harmonized Tariff
Schedule of the United States.
Section 2011.101 is revised to read as follows:
Sec. 2011.101 General.
This subpart sets forth the terms and conditions under which
certificates of quota eligibility will be issued to foreign countries
that have been allocated a share of the U.S. sugar tariff-rate quota.
Except as otherwise provided in this subpart, sugar imported from a
foreign country may not be entered unless such sugar is accompanied by
a certificate of quota eligibility. This subpart applies only to the
ability to enter sugar at the in-quota tariff rates of the quota
(subheadings 1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10,
1702.90.10, and 2106.90.44 of the HTS). Nothing in this subpart shall
affect the ability to enter articles at the over-quota tariff rate
(subheadings 1701.11.50, 1701.12.50, 1701.91.30, 1701.99.50,
1702.90.20, 2106.90.46).
3. Section 2011.102 is amended by redesignating paragraphs (g)
through (m) as paragraph (h) through (n) respectively, adding a new
paragraph (g), and revising paragraphs (a), (c), (e), (f), (j), (k),
(l), and (n) (as so redesignated) to read as follows:
Sec. 2011.102 Definitions.
* * * * *
(a) ``Additional U.S. Note 5'' means additional U.S. Note 5 to
chapter 17 of the HTS, including any amendments thereto.
* * * * *
(c) ``Certificate of quota eligibility'' or ``certificate'' means a
certificate issued by the Secretary to a foreign country that, when
duly executed and issued by the certifying authority of such foreign
country, authorizes the entry into the United States of sugar produced
in such country.
* * * * *
(e) ``Enter'' or ``Entry'' means to enter or withdraw from
warehouse, or the entry or withdrawal from warehouse, for consumption
in the customs territory of the United States.
(f) ``Foreign country'' means, for any quota period, any foreign
country or area with which an agreement or arrangement described in
section 2011.106 is in effect for that quota period and to which the
United States Trade Representative has allocated a particular quantity
of the quota.
(g) ``HTS'' means the Harmonized Tariff Schedule of the United
States.
* * * * *
(j) ``Quota'' means the tariff-rate quota on imports of sugar
provided in additional U.S. Note 5.
(k) ``Quota period'' means the period October 1 of a calendar year
through September 30 of the following calendar year.
(1) ``Raw value'' has the meaning provided in additional U.S. Note
5.
* * * * *
(n) ``Sugar'' means sugars, syrups, and molasses described in
subheadings 1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10, 1702.90.10,
and 2106.90.44 of the HTS, but does not include for any foreign country
for any quota period specialty sugars as defined in subpart B of this
part if a quantity of the quota for that quota period has been reserved
for specialty sugars and an amount of that quota quantity has been
allocated to that country.
4. Section 2011.103 is amended by revising paragraphs (a) and
(b)(3) to read as follows:
Sec. 2011.103 Entry into the United States.
(a) General. Except as otherwise provided in Secs. 2011.104,
2011.109, and 2011.110, no sugar that is the product of a foreign
country may be permitted entry unless at the time of entry the person
entering such sugar presents to the appropriate customs official a
valid and properly executed certificate of quota eligibility for such
sugar.
(b) * * *
(3) This paragraph (b) shall not affect the manner in which the
amount of sugar (raw value) entered is determined fo purposes of
administering the quota.
5. Section 2011.104(a) is revised to read as follows:
Sec. 2011.104 Waiver.
(a) General. The Secretary may waive, with respect to individual
shipments, any or all of the requirements of this subpart if he or she
determines that a waiver will not impair the proper operation of the
sugar quota system, that it will not have the effect of modifying the
allocation of sugar made pursuant to the provisions of subdivision (b)
of additional U.S. Note 5, and that such waiver is justified by
unusual, unavoidable, or otherwise appropriate circumstances. Such
circumstances include, but are not limited to, loss or destruction of
the certificate, unavoidable delays in transmittal of the certificate
to the port of entry, and clerical errors in the execution or issuance
of the certificate.
* * * * *
6. Section 2011.105(b) is revised to read as follows:
Sec. 2011.105 Form and applicability of certificate.
* * * * *
(b) Other limitations. The Secretary may attach such other terms,
limitations, or conditions to individual certificates of quota
eligibility as he or she determines are appropriate to carry out the
purposes of this subpart, provided that such other terms, limitations,
or conditions will not have the effect of modifying the allocation of
sugar made pursaunt to the provisions of subdivision (b) of additional
U.S. Note 5. Such terms, limitations, or conditions may include, but
are not limited to, maximum quantities per certificate and a specified
period of time during which the certificate shall be valid. In no event
shall the maximum quantity per certificate exceed 10,000 short tons.
* * * * *
7. Section 2011.107(b) introductory text is revised to read as
follows:
Sec. 2011.107 Issuance of certificates to foreign countries.
* * * * *
(b) Adjustments. The Secretary may adjust the amount of
certificates issued to a certifying authority for any quota period,
provided that such adjustment will not have the effect of modifying the
allocation of sugar made pursaunt to the provisions of subdivision (b)
of additional U.S. Note 5 to reflect:
* * * * *
8. Section 2011.109(a) is revised to read as follows:
Sec. 2011.109 Suspension or revocation of individual certificates.
(a) Suspension or revocation. The Secretary may suspend, revoke,
modify or add further limitations to any certificate if the Secretary
determines that such action or actions is necessary to ensure the
effective operation of the import quota system for sugar and that
[[Page 26785]]
such suspension, revocation, modification or addition of further
limitations will not have the effect of modifying the allocation of
sugar made pursuant to the provisions of subdivision (b) of additional
U.S. Note 5.
* * * * *
9. Section 2011.201 is revised to read as follows:
Sec. 2011.201 General.
This subpart sets forth the terms and conditions under which
certificates will be issued to U.S. importers for importing specialty
sugars from specialty sugar source countries. Specialty sugars imported
from specialty sugar source countries may not be entered unless
accompanied by a specialty sugar certificate. This subpart applies only
to the ability to enter specialty sugar at the in-quota tariff rates of
the quota (subheadings 1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10,
1702.90.10, and 2106.90.44 of the HTS). Nothing in this subpart shall
affect the ability to enter articles at the over-quota tariff rate
(subheadings 1701.11.50, 1701.12.50, 1701.91.30, 1701.99.50,
1702.90.20, 2106.90.46).
10. Section 2011.202 is amended by removing paragraph (g),
redesignating paragraphs (h) through (j) as paragraphs (g) through (i),
respectively, revising paragraphs (b), (c), (f), (g), and (i), as
redesignated, and adding a new paragraph (j) as follows:
Sec. 2011.202 Definitions.
* * * * *
(b) ``Certificate'' means a specialty sugar certificate issued by
the Certifying Authority permitting the entry of specialty sugar.
(c) ``Certifying Authority'' means the Team Leader, Import Quota
Programs, Foreign Agricultural Service, U.S. Department of Agriculture,
or his or her designee.
* * * * *
(f) ``Person'' means any individual, partnership, corporation,
association, estate, trust, or other legal entity, and, wherever
applicable, any unit, instrumentality, or agency, of a government,
domestic or foreign.
(g) ``Quota'' means the tariff-rate quota on imports of sugar
provided in additional U.S. Note 5 to chapter 17 of the Harmonized
Tariff Schedule of the United States.
* * * * *
(i) ``Specialty sugar'' means brown slab sugar (also known as slab
sugar candy), pearl sugar (also known as perl sugar, perle sugar, and
nibs sugar), vanilla sugar, rock candy, demerara sugar, dragees for
cooking and baking, fondant (a creamy blend of sugar and glucose), ti
light sugar (99.2% sugar with the residual comprised of the artificial
sweeteners aspartame and acesulfame K), caster sugar, golden syrup,
ferdiana granella grossa, golden granulated sugar, muscovado, molasses
sugar, sugar decorations, sugar cubes, and other sugars, as determined
by the United States Trade Representative, that would be considered
specialty sugar products within the normal commerce of the United
States, all of which in addition:
(1) are sugars, syrups, or molasses described in subheading
1701.11.10, 1701.12.10, 1701.91.10, 1701.99.10, 1702.90.10, or
2106.90.44 of the Harmonized Tariff Schedule of the United States,
(2) are the product of a specialty sugar source country, and
* * * * *
(j) ``Specialty sugar source country'' means any country or area to
which the United States Trade Representative has allocated an amount of
the quantity reserved for the importation of specialty sugars under
additional U.S. Note 5 to chapter 17 of the Harmonized Tariff Schedule
of the United States.
11. Section 2011.203 is amended by revising paragraphs (a) and (c)
to read as follows:
Sec. 2011.203 Issuance of specialty sugar certificates.
(a) Specialty sugars imported into the United States from specialty
sugar source countries may be entered only if such specialty sugars are
accompanied by a certificate issued by the Certifying Authority.
* * * * *
(c) Subject to quota availability, an unlimited number of complying
shipments may enter under a given certificate and a given certificate
may cover more than one type of specialty sugar. Issuance of a
certificate does not guarantee the entry of any specific shipment of
specialty sugar, but only permits entry of such sugar if the amount
allocated to the specialty sugar source country is not already filled.
12. Section 2011.204 is revised to read as follows:
Sec. 2011.204 Entry of specialty sugars.
An importer or the importer's agent must present a certificate to
the appropriate customs official at the date of entry of specialty
sugars. Entry of specialty sugars shall be allowed only in conformity
with the description of sugars and other conditions, if any, stated in
the certificate.
13. Section 2011.206 is amended by revising paragraph (c) to read
as follows:
Sec. 2011.206 Suspension or revocation of individual certificates.
* * * * *
(c) The determination of the Certifying Authority under paragraph
(a) that the importer has failed to comply with the requirements of
this subpart may be appealed to the Director, Import Policy and Trade
Analysis Division, Foreign Agricultural Service (FAS), U.S. Department
of Agriculture, Washington, D.C. 20250, within 30 days from the date of
suspension or revocation. The request for reconsideration shall be
presented in writing and shall specifically state the reason or reasons
why such determination should not stand. The Director shall provide
such person with an opportunity for an informal hearing on such matter.
A further appeal may be made to the Administrator, FAS, U.S. Department
of Agriculture, Washington, D.C. 20250, within five working days of
receipt of the notification of the Director's decision. The Certifying
Authority may take action under paragraph (b) during the pendency of
any appeal.
14. Section 2011.207(a) is revised to read as follows:
Sec. 2011.207 Suspension of the certificate system.
(a) Suspension. The U.S. Trade Representative may suspend the
provisions of this subpart whenever he or she determines that the quota
is no longer in force or that this subpart is no longer necessary to
implement the quota. Notice of such suspension and the effective date
thereof shall be published in the Federal Register.
* * * * *
15. Subpart B of part 2011 is amended by adding Sec. 2011.208 to
read as follows:
Sec. 2011.208 Paperwork Reduction Act assigned number.
The Office of Management and Budget (OMB) has approved the
information collection requirements contained in the regulations in
this subpart in accordance with 44 U.S.C. Chapter 25 and OMB control
number 0551-0014 has been assigned with corresponding clearance
effective through April 30, 1997.
Subpart C--[Removed]
16. Subpart C of part 2011 is removed.
Signed at Washington, D.C. on May 15, 1996.
Charlene Barshefsky
Acting United States Trade Representative
[FR Doc. 96-12807 Filed 5-28-96; 8:45 am]
BILLING CODE 3190-01-M