[Federal Register Volume 61, Number 214 (Monday, November 4, 1996)]
[Proposed Rules]
[Pages 56645-56647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28170]


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

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 18 and 114

RIN 1515-AC03


Bilateral Carnet Agreement Between the American Institute in 
Taiwan and the Taipei Economic and Cultural Representative Office

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

ACTION: Notice of proposed rulemaking.

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

SUMMARY: This document proposes amendments to those Customs Regulations 
which apply to carnets to reflect a recently signed bilateral agreement 
between the Taipei Economic and Cultural Representative in the United 
States (TECRO) and the American Institute in Taiwan (AIT). This 
agreement established a TECRO/AIT Carnet for the temporary admission of 
goods, commercial samples and professional equipment.

DATES: Comments must be received on or before January 3, 1997.

ADDRESSES: Comments (preferably in triplicate) may be submitted to the 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service, Franklin Court, 1301 Constitution Avenue, NW., Washington, DC 
20229, and may be inspected at Franklin Court, 1099 14th Street, NW., 
Washington, DC.

FOR FURTHER INFORMATION CONTACT:

[[Page 56646]]

Sharon Goodson or Dennis Sequeira, International Organizations and 
Agreements Division, 202-927-0971.

SUPPLEMENTARY INFORMATION:

Background

    A carnet is an international customs document, backed by an 
internationally valid guarantee, which may be used for the entry of 
articles under various customs procedures such as temporary importation 
and transportation in bond. The carnet is used in place of the usual 
national customs documentation and guarantees the payment of duties 
(including taxes and associated penalties) which may become due if the 
carnet requirements are not satisfied. The existence of a single 
document rather than numerous national documents facilitates 
international commerce.
    The carnet guarantee is based on chains of national guaranteeing 
associations established in the countries accepting the carnets. The 
guaranteeing association is jointly and severally liable with the 
carnet holder for payment of the sums due in the event of noncompliance 
with the conditions or the procedures for which the carnet is used.

Benefits of the TECRO/AIT Carnet

    In recent years, trade between the United States and Taiwan has 
increased. It is expected that this trend will continue, and that such 
trade can be facilitated through the use of carnets. However, Taiwan is 
currently ineligible to accede to the ATA Carnet Convention, under 
which carnets facilitate trade among more than fifty contracting 
parties. Thus, Taiwan has sought access to the carnet facility through 
the recently concluded TECRO/AIT Carnet Agreement. This agreement was 
negotiated pursuant to the authority contained in 22 U.S.C. 3305.
    A Notice informing the public that Customs is accepting 
applications from parties desiring to undertake the obligation of an 
issuing and guaranteeing association for the TECRO/AIT carnet agreement 
that is the subject of this Notice of Proposed Rulemaking is also being 
published in this issue of the Federal Register.

Comments

    Before adopting this proposal, consideration will be given to any 
written comments (preferably in triplicate) that are timely submitted 
to Customs. All such comments received from the public pursuant to this 
notice of proposed rulemaking will be available for public inspection 
in accordance with the Freedom of Information Act (5 U.S.C. 552), 
Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and 
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular 
business days between the hours of 9:00 a.m. and 4:30 p.m., at the 
Regulations Branch, 1099 14th Street, NW., Suite 4000, Washington, DC.

Regulatory Flexibility Act

    Insofar as the proposed amendment is intended to facilitate 
international trade and remove some existing impediments to the conduct 
of business, pursuant to the provisions of the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.), it is certified that the amendment, if 
adopted, will not have a significant economic impact on a substantial 
number of small entities. Accordingly, it is not subject to the 
regulatory analysis or other requirements of 5 U.S.C. 603 and 604.

Executive Order 12866

    The proposed amendment does not meet the criteria for a 
``significant regulatory action'' under E.O. 12866.

Drafting Information

    The principal author of this document was Peter T. Lynch, 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service. However, personnel from other offices participated in its 
development.

List of Subjects

19 CFR Part 10

    Customs duties and inspection, Exports, Reporting and recordkeeping 
requirements.

19 CFR Part 18

    Customs duties and inspection, Common carriers, Surety bonds, 
Exports.

19 CFR Part 114

    Customs duties and inspection, Exports, Trade agreements.

Proposed Amendments to the Regulations

    It is proposed to amend Parts 10, 18 and 114 of the Customs 
Regulations (19 CFR parts 10, 18 and 114) as set forth below:

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

    1. The general authority citation for Part 10 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508, 
1623, 1624, 3314.
* * * * *
    2. It is proposed to amend Sec. 10.31 by adding in paragraphs 
(a)(1) and (a)(2) the phrase ``or a TECRO/AIT carnet'' immediately 
after the words ``A.T.A. carnet''.
    3. It is proposed to amend Sec. 10.39(d)(2) by adding the words 
``or Agreement'' immediately after the phrase ``in the Convention''.

PART 18--TRANSPORTATION IN BOND AND MERCHANDISE IN TRANSIT

    1. The general authority citation for Part 18 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States), 1551, 1552, 1553, 
1624.
* * * * *
    2. It is proposed to amend Sec. 18.1 (a)(3) by adding the phrase 
``or TECRO/AIT'' immediately after the abbreviation ``A.T.A.'' each 
time it appears.
    3. It is proposed to amend Sec. 18.8 (a)(3) by adding the phrase 
``or TECRO/AIT'' immediately after the abbreviation ``A.T.A.'' each 
time it appears.

PART 114--CARNETS

    1. The authority citation for Part 114 is revised to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States), 1623, 1624.

    2. It is proposed to amend Sec. 114.1 (b) and (c) by adding the 
phrase ``or bilateral Agreement'' immediately after the words ``Customs 
Convention'' each time they appear, and by adding a new paragraph (g) 
to read as follows:


Sec. 114.1  Definitions.

* * * * *
    (g) TECRO/AIT Carnet. ``TECRO/AIT carnet'' means the document 
issued pursuant to the Bilateral Agreement between the Taipei Economic 
and Cultural Representative Office (TECRO) and the American Institute 
in Taiwan (AIT) to cover the temporary admission of goods.
    4. It is proposed to amend Sec. 114.2 by revising the section 
heading and the introductory paragraph and by adding a new paragraph 
(d) to read as follows:


Sec. 114.2  Customs Conventions and Agreements.

    The regulations in this part relate to carnets provided for in the 
following Customs Conventions and Agreements.
* * * * *
    (d) Agreement Between The Taipei Economic and Cultural 
Representative Office in the United States and The American Institute 
in Taiwan on

[[Page 56647]]

TECRO/AIT Carnet for the Temporary Admission of Goods (hereinafter 
referred to as the Agreement).
    5. It is proposed to amend Sec. 114.3 (a) introductory text and 
(a)(2) by adding the words ``or Agreement'' immediately after the word 
``Convention'' each time it appears.
    6. It is proposed to amend Sec. 114.11 by adding the words ``or 
Agreement'' immediately after the word ``Convention'' each time it 
appears.
    7. It is proposed to amend Sec. 114.22 by redesignating paragraph 
(d) as paragraph (e) and adding a new paragraph (d) to read as follows:


Sec. 114.22  Coverage of carnets.

* * * * *
    (d) TECRO/AIT Carnet--(1) Use. The TECRO/AIT carnet is acceptable 
for the following two categories of goods to be temporarily imported, 
unless importation is prohibited under the laws and regulations of the 
United States:
    (i) Professional equipment; and
    (ii) Commercial samples and advertising material imported for the 
purpose of being shown or demonstrated with a view to soliciting 
orders.
    (2) Issue and use. (i) Issuing associations shall indicate on the 
cover of the TECRO/AIT carnet the customs territory in which it is 
valid and the name and address of the guaranteeing association.
    (ii) The period fixed for re-exportation of goods imported under 
cover of a TECRO/AIT carnet shall not in any case exceed the period of 
validity of that carnet.
* * * * *
    8. It is proposed to amend Sec. 114.23 by adding a new paragraph 
(c) to read as follows:


Sec. 114.23  Maximum period.

* * * * *
    (c) TECRO/AIT carnet. A TECRO/AIT carnet shall not be issued with a 
period of validity exceeding one year from the date of issue. This 
period of validity cannot be extended and must be shown on the front 
cover of the carnet.
    9. It is proposed to amend Sec. 114.24 by adding the phrase ``or 
TECRO/AIT'' immediately after the abbreviation ``A.T.A.''.
    10. It is proposed to amend Sec. 114.25 by adding the phrase ``or 
TECRO/AIT'' immediately after the abbreviation ``A.T.A.''.
    11. It is proposed to amend Sec. 114.26 (a) and (b) by adding the 
phrase ``or TECRO/AIT'' immediately after the abbreviation ``A.T.A.'' 
each time it appears.
    12. It is proposed to amend Sec. 114.31(b) by adding the phrase 
``or TECRO/AIT'' immediately after the abbreviation ``A.T.A.''.
    13. It is proposed to amend Sec. 114.32 by adding the phrase ``or 
TECRO/AIT'' immediately after the abbreviation ``A.T.A.'' the first 
time it appears and by adding the phrase ``or TECRO/AIT Agreement'' 
immediately after the phrase ``A.T.A. Convention''.
    14. It is proposed to amend Sec. 114.33 by adding the words ``or 
Agreement'' immediately after the word ``Convention''.
    15. It is proposed to amend Sec. 114.34 by adding, in the heading 
and text of paragraph (b), the phrase ``or TECRO/AIT'' immediately 
after the abbreviation ``A.T.A.'' each time it appears.

    Approved: October 2, 1996.
George J. Weise,
Commissioner of Customs.
Timothy E. Skud,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 96-28170 Filed 11-1-96; 8:45 am]
BILLING CODE 4820-02-M