[Federal Register Volume 61, Number 141 (Monday, July 22, 1996)]
[Rules and Regulations]
[Pages 37817-37818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18545]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 102
[T.D. 96-56]
Rules of Origin for Textile and Apparel Products
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Final rule.
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SUMMARY: This document sets forth technical corrections to the Customs
Regulations which govern the determination of the country of origin of
textile and apparel products for purposes of laws enforced by Customs.
The changes involve an updating of certain tariff subheading references
and the correction of an error in the text of one tariff shift rule.
EFFECTIVE DATE: July 22, 1996.
FOR FURTHER INFORMATION CONTACT: Phil Robins, Office of Regulations and
Rulings (202-482-7029).
SUPPLEMENTARY INFORMATION:
Background
On September 5, 1995, Customs published T.D. 95-69 in the Federal
Register (60 FR 46188) containing final amendments to the Customs
Regulations to set forth standards governing the determination of the
country of origin of textile and apparel products for purposes of laws
enforced by Customs. The regulatory amendments primarily implemented
the provisions of section 334 of the Uruguay Round Agreements Act
(Public Law 103-465, 108 Stat. 4809) and included a new Sec. 102.21 (19
CFR 102.21) which covers the majority of the section 334 provisions and
applies to goods entered, or withdrawn from warehouse, for consumption
on or after July 1, 1996.
Section 102.21(b)(5) defines a ``textile or apparel product'' as a
good classifiable in specified chapters, headings or subheadings of the
Harmonized Tariff Schedule of the United States (HTSUS). Section
102.21(c) sets forth the general rules for determining the country of
origin of a textile or apparel product and, in paragraph (c)(2), allows
for the determination of the country of origin of a good on the basis
of a tariff classification change and/or other requirement specified
for the good in paragraph (e). Paragraph (e) of Sec. 102.21
incorporates a table consisting of a list of HTSUS headings and
subheadings together with corresponding specified tariff shift and/or
other requirements.
The HTSUS references in the Sec. 102.21 texts were based on the
1995 version of the HTSUS. However, the 1996 version of the HTSUS
incorporates a number of subheading number changes as a result of
amendments made to the international Harmonized System, one of which
involved the redesignation of subheading 7019.10 as subheading 7019.19
and another of which involved the replacement of subheading 7019.20 by
new subheadings 7019.40-7019.59. Accordingly, this document makes the
following changes within the Sec. 102.21 texts to conform them to the
1996 HTSUS: (1) in the list of HTSUS headings and subheadings in
paragraph (b)(5), ``7019.10.15'' is changed to read ``7019.19.15'' and
``7019.10.28'' is changed to read ``7019.19.28'' and ``7019.20'' is
changed to read ``7019.40-59''; (2) in the table under paragraph (e),
in the ``HTSUS'' column, ``7019.10.15'' is changed to read
``7019.19.15'' and ``7019.10.28'' is changed to read ``7019.19.28'' and
``7019.20'' is changed to read ``7019.40-7019.59'', and in the
corresponding specific rules in the ``Tariff shift and/or other
requirements'' column, each reference to ``7019.10.15'' is changed to
read ``7019.19.15'' and each reference to ``7019.10.28'' is changed to
read ``7019.19.28'' and the reference to ``7019.20'' is changed to read
``7019.40 through 7019.59''; and (3) also in the ``Tariff shift and/or
other requirements'' column in the table under paragraph (e), in the
second tariff shift rule for newly designated subheadings 7019.19.15
and 7019.19.28, the exception clause is changed to read ``except from
subheading 7019.19.30 through 7019.19.90, 7019.31.00 through
7019.39.50, and 7019.90''.
In addition, it is noted that in the table under paragraph (e) of
Sec. 102.21, the tariff shift rule for newly designated subheadings
7019.40-7019.59 (which cover woven fabrics of rovings and other woven
fabrics) specifies a change from any other ``heading'' and includes a
proviso that the change must be the result of a fabric-making process.
It is further noted that heading 7019 (which covers glass fibers and
articles thereof) includes subheadings for glass fiber rovings
(subheading 7019.12.00) and yarns (subheadings 7019.19.05-7019.19.28)
which are the products from which the fabrics of subheadings 7019.40-
7019.59 are made and without which those fabrics could not exist.
Therefore, by specifying a change from any other ``heading'' (that is,
any heading other than heading 7019) rather than a change from any
other ``subheading'' (so as to allow a change from subheadings
7019.12.00 and 7019.19.05-7019.19.28), the tariff shift rule for
subheadings 7019.40-7019.59 has no substantive utility because the rule
disallows the very tariff shifts that would be involved in producing
the goods covered by those subheadings. Accordingly, this document
amends the tariff shift rule for subheadings 7019.40-7019.59 to refer
to a change from any other ``subheading'' in order to correct this
obvious drafting error.
Executive Order 12866, Regulatory Flexibility Act, and Inapplicability
of Notice and Delayed Effective Date Requirements
This document does not meet the criteria for a ``significant
regulatory action'' as specified in Executive Order 12866. In addition,
pursuant to the provisions of the Regulatory Flexibility Act (5 U.S.C.
601 et seq.), it is certified that the amendments will not have a
significant economic impact on a substantial number of small entities
because the amendments either merely conform the regulations to
existing statutory provisions or correct an obvious error. For the same
reasons and in view of the July 1, 1996, effective date of the
regulatory provisions to which these amendments relate, it is
determined pursuant to the provisions of 5 U.S.C. 553(b)(B) that notice
and public procedures thereon are unnecessary and contrary to the
public interest, and it is determined pursuant to the provisions of 5
U.S.C. 553(d)(3) that good cause exists for dispensing with a delayed
effective date.
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 in 19 CFR Part 102
Customs duties and inspections, Imports, Reporting and
recordkeeping requirements, Rules of origin, Trade agreements.
Amendments to the Regulations
Accordingly, for the reasons stated above, Part 102, Customs
Regulations (19 CFR Part 102), is amended as set forth below.
[[Page 37818]]
PART 102--RULES OF ORIGIN
1. The authority citation for Part 102 continues to read as
follows:
Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized
Tariff Schedule of the United States), 1624, 3314, 3592.
Sec. 102.21 [Amended]
2. Section 102.21(b)(5) is amended by removing the listings
``7019.10.15'' and ``7019.10.28'' and ``7019.20'' and adding, in their
place in numerical order, the listings ``7019.19.15'' and
``7019.19.28'' and ``7019.40-59''.
3. In Sec. 102.21(e), the table is amended by removing the entries
for HTSUS 7019.10.15 and HTSUS 7019.10.28 and HTSUS 7019.20 and adding,
in their place, entries for HTSUS 7019.19.15 and HTSUS 7019.19.28 and
HTSUS 7019.40-7019.59 to read as follows:
Sec. 102.21 Textile and apparel products.
* * * * *
(e) * * *
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HTSUS Tariff shift and/or other requirements
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* * * *
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7019.19.15.................. (1) If the good is of filaments, a change
to subheading 7019.19.15 from any other
heading, provided that the change is the
result of an extrusion process.
(2) If the good is of staple fibers, a
change to subheading 7019.19.15 from any
other subheading, except from subheading
7019.19.30 through 7019.19.90, 7019.31.00
through 7019.39.50, and 7019.90, and
provided that the change is the result of
a spinning process.
7019.19.28.................. (1) If the good is of filaments, a change
to subheading 7019.19.28 from any other
heading, provided that the change is the
result of an extrusion process.
(2) If the good is of staple fibers, a
change to subheading 7019.19.28 from any
other subheading, except from subheading
7019.19.30 through 7019.19.90, 7019.31.00
through 7019.39.50, and 7019.90, and
provided that the change is the result of
a spinning process.
7019.40-7019.59............. A change to subheading 7019.40 through
7019.59 from any other subheading,
provided that the change is the result of
a fabric-making process.
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George J. Weise,
Commissioner of Customs.
Approved: June 17, 1996.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 96-18545 Filed 7-19-96; 8:45 am]
BILLING CODE 4820-02-P