[Federal Register Volume 61, Number 156 (Monday, August 12, 1996)]
[Rules and Regulations]
[Page 41737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20398]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 12, 102 and 134

[T.D. 96-48]
RIN 1515-AB34


Rules for Determining the Country of Origin of a Good for 
Purposes of Annex 311 of the North American Free Trade Agreement; 
Corrections

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

ACTION: Final rule; corrections.

-----------------------------------------------------------------------

SUMMARY: This document makes corrections to the document published in 
the Federal Register which set forth final amendments to the Customs 
Regulations regarding the rules for determining when the country of 
origin of a good is one of the parties to the North American Free Trade 
Agreement (NAFTA) as required by Annex 311 of the NAFTA.

EFFECTIVE DATE: These corrections are effective August 5, 1996.

FOR FURTHER INFORMATION CONTACT: Sandra L. Gethers, Office of 
Regulations and Rulings (202-482-6980).

SUPPLEMENTARY INFORMATION:

Background

    On June 6, 1996, Customs published in the Federal Register (61 FR 
28932) as T.D. 96-48 a document which adopted as a final rule, with 
some modifications, interim amendments to the Customs Regulations that 
established the rules for determining when the country of origin of a 
good is one of the parties to the North American Free Trade Agreement 
(NAFTA) as required by Annex 311 of the NAFTA. Those final NAFTA 
Marking Rules apply only to all goods imported from Canada or Mexico 
other than textile and apparel products, and do not apply to trade with 
other countries. The June 6, 1996, notice provided for an August 5, 
1996, effective date for the final regulations. A document correcting 
several errors in T.D. 96-48 was published in the Federal Register on 
July 1, 1996 (61 FR 33845).
    This document corrects two additional errors published in T.D. 96-
48.
    One error involved the Discussion of Comments portion of the 
document under SUPPLEMENTARY INFORMATION. Specifically, the public 
comment discussion regarding the Sec. 102.20 tariff shift rule for 
subheadings 8482.10-8482.80 (bearings) dealt with only one comment, 
which was opposed to the proposed tariff shift rule. However, that 
comment discussion failed to reflect that another comment, which was in 
favor of the proposed rule, was also received by Customs. This document 
corrects the comment discussion to more accurately reflect the totality 
of public comments received on this matter.
    The second error involved the table under Sec. 102.20 of the final 
regulatory texts. Specifically, the entry for HTSUS 8540.71-8540.99 
reflected a typographical error in that the reference ``8540.99'' 
should have read ``8540.89'' in the ``HTSUS'' column and in the 
corresponding ``Tariff shift and/or other requirements'' column. This 
document sets forth the HTSUS entry in its entirety to correct this 
typographical error.

Corrections of Publication

    Accordingly, the document published in the Federal Register as T.D. 
96-48 on June 6, 1996 (61 FR 28932) is corrected as set forth below.

Correction to the Discussion of Comments Section

    On page 28949, in the third column, the paragraphs under the 
heading Subheadings 8482.10-8482.80 (Bearings) are corrected to read as 
follows:
    Comments: The Sec. 102.20 rule set forth in the May 5, 1995, notice 
of proposed rulemaking for subheadings 8482.10 through 8482.80 provides 
as follows:
    A change to subheading 8482.10 through 8482.80 from any other 
heading; or
    A change to subheading 8482.10 through 8482.80 from any other 
subheading, including another subheading within that group, except from 
inner or outer races or rings of subheading 8482.99.
    Two comments were received on the proposed rule. The first 
commentor claimed that the processes of grinding, polishing and heat 
treating of rings and races should confer origin. The second commenter 
strongly supported the Customs proposal and provided arguments 
supporting its position that unfinished races or rings, which have the 
essential characteristics of the finished components, should determine 
the country of origin of the bearings, whether or not additional heat 
treatment or other finishing operations are performed on the races or 
rings.
    Customs response: Customs agrees with the second commenter. It 
remains the position of Customs that the operations described by the 
first commenter are merely finishing operations which do not confer 
origin. None of these operations changes the essential character of the 
article which is processed. The name, character and use of the article 
remain the same after these operations are performed. See National Hand 
Tool Corp. v. United States, supra, wherein the court held that 
operations such as grinding, polishing and heat treating are merely 
finishing operations which do not constitute a substantial 
transformation. Therefore, the revision of the Sec. 102.20 rule for 
these goods should be adopted as proposed.

Correction to the Final Regulations

    At the bottom of page 28975, the entry for HTSUS 8540.71-8540.99 is 
corrected to read as follows:

8540.71-8540.89--A change to subheading 8540.71 through 8540.89 from 
any other subheading, including another subheading within that group.

    Dated: August 6, 1996.
Stuart P. Seidel,
Assistant Commissioner, Office of Regulations and Rulings.
[FR Doc. 96-20398 Filed 8-9-96; 8:45 am]
BILLING CODE 4820-02-P