[Federal Register Volume 61, Number 231 (Friday, November 29, 1996)]
[Rules and Regulations]
[Pages 60531-60533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30398]


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DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket No. 960606162-6293-02]
RIN 0607-AA21


Collection of Canadian Province of Origin Information on Customs 
Entry Records

AGENCIES: Bureau of the Census, Commerce and U.S. Customs Service, 
Treasury.

ACTION: Final rule.

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SUMMARY: The Bureau of the Census (Census) has determined that Canadian 
Province of Origin information is required for all U.S. imports that 
originate in Canada. Census has asked the U.S. Customs Service 
(Customs) to begin collecting this information. This action is taken to 
fulfill the requirements of the 1987 agreement between the United 
States and Canada under which the countries agreed to replace their 
requirements for reporting export data by substituting exchanged import 
information. The Department of Treasury concurs with the provisions 
contained in this final rule.

Effective Date: This rule will become effective February 27, 1997.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be directed to C. Harvey Monk, Jr., Bureau of the Census, 
Washington, D.C. 20233, by telephone on (301) 457-2255 or by fax on 
(301) 457-2645. For information on the specific Customs reporting 
requirements contact: J. Edgar Nichols, U.S. Customs Service, Room 
6216, 1301 Constitution Avenue, N.W., Washington, D.C. 20229, by 
telephone on (202) 927-1426 or by fax on (202) 927-0165.

SUPPLEMENTARY INFORMATION: Effective in January 1990, the United States 
and Canada each replaced their requirements for reporting export data 
by agreeing to substitute exchanged import information. This 
substitution of exchanged import information allowed the countries to 
eliminate the requirements that exporters in both countries provide 
separate export information on the millions of shipments crossing the 
U.S. and Canadian border each year. A Memorandum of Understanding (MOU) 
implementing the exchange was signed by the United States and Canada on 
July 29, 1987.
    Under the terms of the MOU, the United States and Canada agreed to 
collect several new data elements on their respective import records. 
These elements improve both countries' statistical data and allow 
elimination of export reporting. One of the data elements that the 
United States agreed to collect in the MOU is the Canadian Province of 
Origin where the specific goods exported to the United States were 
produced. Census has attempted in the past to derive this information 
from related information now reported on Customs entry records as part 
of the required Identification of the Foreign Manufacturer. The quality 
of this derived information, however, has proven unsatisfactory. In 
many cases the Province currently reported does not identify the 
location where the goods were manufactured or assembled or mined, 
grown, or otherwise produced. Instead, it represents a corporate 
headquarters or the location of the Canadian vendor.

Response to Comments

    The Census Bureau issued a Notice of Proposed Rulemaking and 
Request for Comments in the Federal Register (61 FR 36318) on 
Wednesday, July 10, 1996. The Bureau of the Census received eight 
letters commenting on the proposed rule. The Census Bureau replied to 
each of these respondents.
    Two of the respondents pointed out an ambiguity in the definition 
of province of origin. In order to clarify this definition, the wording 
in the program requirements and the Foreign Trade Statistics 
Regulations (FTSR), 15 CFR 30.80 (a) and (b), is modified. The wording 
is changed to clarify that for goods determined under applicable 
Customs rules to originate in Canada, the Canadian province of origin 
should be: (1) For manufactured or assembled goods, that province in 
which the final manufacture or assembly is performed prior to exporting 
the goods to the United States; and (2) For nonmanufactured goods, that 
province where the goods were originally grown, mined, or otherwise 
produced. One of these respondents also expressed concern that the 
notice was establishing new criteria for determining the origin of 
goods for imports from Canada. In order to clarify this issue, the 
wording in the program requirements and the

[[Page 60532]]

FTSR, 15 CFR 30.80, is changed to emphasize that the determination of 
country of origin continues under applicable Customs rules of origin. 
In light of these comments, the final rule is revised as referenced 
above.
    Five of the respondents expressed concern with the expected burdens 
either to U.S. importers or Canadian exporters in determining the 
actual Canadian Province of Origin. Some respondents stress that this 
is of particular concern when the exporter is a distributor shipping 
goods from various Canadian manufacturers. In response to these 
comments, we note in the rule that when the true Province of Origin is 
unknown, the location of the vendor can be reported.
    The eighth respondent proposed a revision to the definition of the 
Province of Manufacture for reporting softwood lumber. This definition 
was established by a final rule published on April 9, 1996 and was not 
directly addressed in the proposed rule. Thus, no change to the final 
rule has been made with respect to this specific comment. However, some 
minor changes were made to make the wording consistent throughout 15 
CFR 30.80.

Program Requirements

    In order to comply with the MOU, the two-letter designation of the 
Canadian Province of Origin must be reported on U.S. entry summary 
records when the Country of Origin is Canada. This information is 
required only for United States imports that under applicable Customs 
rules of origin are determined to originate in Canada. For 
nonmanufactured goods determined to originate in Canada, the Province 
of Origin is defined as the province where the imported goods were 
originally grown, mined, or otherwise produced. For goods of Canadian 
origin that are manufactured or assembled in Canada, with the exception 
of specific softwood lumber products, the Province of Origin is that in 
which the final manufacture or assembly is performed prior to exporting 
that good to the United States. In cases where the Province in which 
the merchandise was manufactured, assembled, grown, mined, or otherwise 
produced is unknown, the Province in which the Canadian vendor is 
located may be reported.
    For all shipments of certain softwood lumber products classified 
under U.S. Harmonized System tariff items 4407.1000, 4409.1010, 
4409.1090, or 4409.1020, the Census Bureau began, effective April 5, 
1996, to require information on Canadian Province of Manufacture. This 
requirement was made to allow the United States to carry out the 
requirements of an agreement concluded with Canada on the amount of 
certain softwood lumber products exported to the United States 
annually.
    The reporting of the Province of Origin applies to the paper as 
well as Automated Broker Interface (ABI) entry summaries. For those 
reporting on paper forms, the Province of Origin code is to replace the 
Country of Origin data on the Customs Form (CF) 7501, Entry Summary. 
This requirement would apply only for imports for which the Country of 
Origin is Canada.
    All electronic Automated Broker Interface (ABI) Entry Summaries for 
imports originating in Canada would also require the new Canadian 
Province of Origin code to be reported when the Country of Origin is 
Canada. The Province of Origin should be transmitted for each entry 
summary line item in the A40 record positions 6-7.

Collection of Information Requirements

    For imports of Canada only, the Province of Origin Code replaces 
the Country of Origin data on the CF 7501, Entry Summary form and in 
positions 6-7 of the ABI A40 electronic record.
    Valid Canadian Province/Territory Codes are:

XA--Alberta
XB--New Brunswick
XC--British Columbia
XM--Manitoba
XN--Nova Scotia
XO--Ontario
XP--Prince Edward Island
XQ--Quebec
XS--Saskatchewan
XT--Northwest Territories
XW--Newfoundland
XY--Yukon Territory

    The authority to collect this information is provided under Title 
13, United States Code, Section 301 (13 U.S.C. 301). This legislation 
authorizes the Secretary of Commerce to collect from persons importing 
into or exporting from the United States necessary or appropriate 
information to foster, promote, develop, and further the commerce, 
domestic and foreign, of the United States.
    Notwithstanding any other provision of law, no person is required 
to respond to nor shall a person be subject to a penalty for failure to 
comply with a collection of information subject to the requirements of 
the Paperwork Reduction Act unless that collection of information 
displays a currently valid OMB Control Number.
    The collection of information on Canadian Province of Origin 
supplements information currently required on the Customs paper form CF 
7501 and the ABI automated electronic reporting form A40 for specific 
softwood lumber imports from Canada. The collection of information 
requirement contained in this Rulemaking has been approved by the 
Office of Management and Budget (OMB) under OMB Control No. 1515-0065. 
For further information on the OMB submission, contact J. Edgar 
Nichols, U.S. Customs Service, Room 6216, 1301 Constitution Avenue, 
N.W., Washington, D.C. 20229-0001, by telephone on (202) 927-1426 or by 
fax (202) 927-0165.

Rulemaking Requirements

    This rule is exempt from all requirements of Section 553 of the 
Administrative Procedures Act because it deals with a foreign affairs 
function (5 U.S.C. 553 (a)(1)).
    This rule is exempt from the requirements of Executive Order 12866.
    This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 12612.

List of Subjects in 15 CFR Part 30

    Economic statistics, Foreign trade, Imports, Reporting and 
recordkeeping requirements.

    For the reasons set out in the preamble, Part 30 is amended as 
follows:

PART 30--FOREIGN TRADE STATISTICS REGULATIONS

    1. The authority citation for 15 CFR Part 30 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization Plan 
No. 5 of 1950 (3 CFR 1949-1953 Camp., 1004); Department of Commerce 
Organization Order No. 35-2A. August 4, 1975, 40 CFR 42765.

Subpart F--Special Provisions for Particular Types of Import 
Transactions

    2. Section 30.80 is amended to add paragraphs (a), (b), (c), and 
(d) to read as follows:


Sec. 30.80  Imports from Canada.

* * * * *
    (a) When certain softwood lumber products described under 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings 
4407.1000, 4409.1010, 4409.1090, and 4409.1020 are imported from 
Canada, import entry records are required to show a valid Canadian 
Province of Manufacture Code. The Canadian Province of Manufacture is 
determined on a first mill basis (the point at which the item

[[Page 60533]]

was first manufactured into a covered lumber product). For purposes of 
determination, Province of Manufacture is the first province where the 
subject merchandise underwent a change in tariff classification to the 
tariff classes cited in this paragraph (a). The Province of Manufacture 
Code should replace the Country of Origin code on the CF 7501, Entry 
Summary form. For electronic Automated Broker Interface (ABI) entry 
summaries, the Canadian Province Code should be transmitted in 
positions 6-7 of the A40 records. These requirements apply only for 
imports of certain softwood lumber products for which the Country of 
Origin is Canada.
    (b) All other imports from Canada, including certain softwood 
lumber products not covered in paragraph (a) of this section, will 
require the two-letter designation of the Canadian Province of Origin 
to be reported on U.S. entry summary records. This information is 
required only for United States imports that under applicable Customs 
rules of origin are determined to originate in Canada. For 
nonmanufactured goods determined to be of Canadian origin, the Province 
of Origin is defined as the Province where the exported goods were 
originally grown, mined, or otherwise produced. For goods of Canadian 
origin that are manufactured or assembled in Canada, with the exception 
of the certain softwood lumber products described in paragraph (a) of 
this section, the Province of Origin is that in which the final 
manufacture or assembly is performed prior to exporting that good to 
the United States. In cases where the province in which the merchandise 
was manufactured or assembled or grown, mined, or otherwise produced is 
unknown, the province in which the Canadian vendor is located can be 
reported. For those reporting on paper forms the Province of Origin 
code replaces the country of origin code on the CF 7501, Entry Summary 
form.
    (c) All electronic Automated Broker Interface (ABI) entry summaries 
for imports originating in Canada also require the new Canadian 
Province of Origin code to be transmitted for each entry summary line 
item in the A40 record positions 6-7.
    (d) The Province of Origin code replaces the Country of Origin code 
only for imports that have been determined, under applicable Customs 
rules, to originate in Canada.
    Valid Canadian Province/Territory Codes are:

XA--Alberta
XB--New Brunswick
XC--British Columbia
XM--Manitoba
XN--Nova Scotia
XO--Ontario
XP--Prince Edward Island
XQ--Quebec
XS--Saskatchewan
XT--Northwest Territories
XW--Newfoundland
XY--Yukon Territory

    Dated: November 21, 1996.
Martha Farnsworth Riche,
Director, Bureau of the Census.

    Concurred:

    Dated: November 1, 1996.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff & Trade Enforcement), 
Department of the Treasury.
[FR Doc. 96-30398 Filed 11-27-96; 8:45 am]
BILLING CODE 3510-07-P