[Federal Register Volume 61, Number 250 (Friday, December 27, 1996)]
[Notices]
[Pages 68295-68296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33012]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. 332-360]
International Harmonization of Customs Rules of Origin
AGENCY: United States International Trade Commission.
ACTION: Request for public comment on draft proposals for chapters 50-
63 (Textiles).
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EFFECTIVE DATE: December 20, 1996.
FOR FURTHER INFORMATION CONTACT: Eugene A. Rosengarden, Director,
Office of Tariff Affairs and Trade Agreements (O/TA&TA) (202-205-2595),
or Jan Summers (202-205-2605).
Parties having an interest in particular products or HTS chapters
and desiring to be included on a mailing list to receive available
documents pertaining thereto should advise Diane Whitfield by phone
(202-205-2610) or by mail at the Commission, 500 E St SW, Room 404,
Washington, D.C. 20436. Hearing impaired persons are advised that
information on this matter can be obtained by contacting the
Commission's TDD terminal on 202-205-1810. The media should contact
Margaret O'Laughlin, Director, Office of Public Affairs (202-205-
1819).
BACKGROUND: Following receipt of a letter from the United States Trade
Representative (USTR) on January 25, 1995, the Commission instituted
Investigation No. 332-360, International Harmonization of Customs Rules
of Origin, under section 332(g) of the Tariff Act of 1930 (60 FR 19605,
April 19, 1995).
The investigation is intended to provide the basis for Commission
participation in work pertaining to the Uruguay Round Agreement on
Rules of Origin (ARO), under the General Agreement on Tariffs and Trade
(GATT) 1994 and adopted along with the Agreement Establishing the World
Trade Organization (WTO).
The ARO is designed to harmonize and clarify nonpreferential rules
of origin for goods in trade on the basis of the substantial
transformation test; achieve discipline in the rules' administration;
and provide a framework for notification, review, consultation, and
dispute settlement. These harmonized rules are intended to make
country-of-origin determinations impartial, predictable, transparent,
consistent, and neutral, and to avoid restrictive or distortive effects
on international trade. The ARO provides that technical work to those
ends will be undertaken by the Customs Cooperation Council (CCC) (now
informally known as the World Customs Organization or WCO), which must
report on specified matters relating to such rules for further action
by parties to the ARO. Eventually, the WTO Ministerial Conference is to
``establish the results of the harmonization work program in an annex
as an integral part'' of the ARO.
In order to carry out the work, the ARO calls for the establishment
of a Committee on Rules of Origin of the WTO and a Technical Committee
on Rules of Origin (TCRO) of the WCO. These Committees bear the primary
responsibility for developing rules that achieve the objectives of the
ARO.
A major component of the work program is the harmonization of
origin rules for the purpose of providing more certainty in the conduct
of world trade. To this end, the agreement contemplates a 3-year WCO
program, which was formally initiated in July, 1995. Under the ARO, the
TCRO is to undertake (1) to develop harmonized definitions of goods
considered wholly obtained in one country, and of minimal processes or
operations deemed not to confer origin, (2) to consider the use of
change in Harmonized System classification as a means of reflecting
substantial transformation, and (3) for those products or sectors where
a change of tariff classification does not allow for the reflection of
substantial transformation, to develop supplementary or exclusive
origin criteria based on value, manufacturing or processing operations
or on other standards.
The draft rules for chapters 50-63 of the Harmonized System that
are being made available for public comment cover goods that are not
considered to be wholly made in a single country. The rules rely
largely on the change of heading as a basis for ascribing origin.
Copies of the proposed revised rules will be available from the Office
of the Secretary at the Commission, from the Commission's Internet web
server (http://www.usitc.gov), or by submitting a request on the Office
of Tariff Affairs and Trade Agreements voice messaging system, 202-205-
2592. Due to their length, the rules will not be available by FAX.
These proposals are intended to serve as the basis for the U.S.
proposal to the Technical Committee on Rules of Origin of the WCO. The
proposals are based on the principles of application enacted by
Congress in Section 334 of the Uruguay Round Agreements Act (19 U.S.C.
3592) with respect to country of origin determinations for textile
goods but may not necessarily reflect or restate existing Customs
treatment in all cases for all current nonpreferential purposes. Based
upon a decision of the Trade Policy Staff Committee, the proposals are
intended for future harmonization for the nonpreferential purposes
indicated in the ARO for application on a global basis. The proposals
may undergo change as proposals from other government administrations
and the private sector are received and considered.
Under the circumstances, the proposals should not be cited as
authority for the application of current domestic law.
If eventually adopted by the TCRO for submission to the Committee
on Rules of Origin of the World Trade Organization, these proposals
would comprise an important element of the ARO work program to develop
harmonized, non-preferential country of origin rules, as discussed in
the Commission's earlier notice. Thus, in view of the importance of
these rules, the Commission seeks to ascertain the views of interested
parties concerning the extent to which the proposed rules reflect the
standard of substantial transformation provided in the Agreement.
Forthcoming Commission notices will advise the public on the
progress of the TCRO's work and will contain any harmonized definitions
or rules that have been provisionally or finally adopted.
WRITTEN SUBMISSIONS: Interested persons are invited to submit written
statements concerning this phase of the Commission's investigation.
Written statements should be submitted as quickly as possible, and
follow-up statements are permitted; but all statements must be received
at the Commission by the close of business on February 7, 1997 in order
to be considered. Information supplied to the Customs Service in
statements filed pursuant to notices of that agency has been given to
us and need not be separately provided to the Commission. Again, the
Commission notes that it is particularly interested in receiving input
from the private sector on the effects of the various proposed rules
and definitions on U.S. exports. Commercial or financial information
which a submitter desires the Commission to treat as confidential must
be submitted on separate sheets of paper, each marked ``Confidential
Business Information'' at the top. All submissions requesting
confidential treatment must conform with the requirements of
[[Page 68296]]
section 201.6 of the Commission's Rules of Practice and Procedure (19
CFR 201.6). All written submissions, except for confidential business
information, will be available for inspection by interested persons.
All submissions should be addressed to the Office of the Secretary,
United States International Trade Commission, 500 E Street SW.,
Washington, DC 20436.
Issued: December 23, 1996.
By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 96-33012 Filed 12-26-96; 8:45 am]
BILLING CODE 7020-02-P