[Federal Register Volume 62, Number 48 (Wednesday, March 12, 1997)]
[Notices]
[Pages 11464-11465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6191]



[[Page 11464]]

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

INTERNATIONAL TRADE COMMISSION

[Investigation No. 332-360]


International Harmonization of Customs Rules of Origin

AGENCY: United States International Trade Commission.

ACTION: Request for public comments on draft proposals for chapters 82-
84 and 86-89.

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

EFFECTIVE DATE: March 5, 1997.

FOR FURTHER INFORMATION CONTACT: Eugene A. Rosengarden, Director, 
Office of Tariff Affairs and Trade Agreements (O/TA&TA) (202-205-2595), 
Lawrence DiRicco--chapters 82-83, 86-89 (202-205-2606), or Craig 
Houser--chapter 84 (202-205-2597).
    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 telephone 
(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 in the Office of External Relations (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 this work, the ARO called 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 other standards.
    The draft U.S. proposed rules for the goods of:

Chapter 82--Tools, implements, cutlery, spoons and forks, of base 
metal; parts thereof of base metal
Chapter 83--Miscellaneous articles of base metal
Chapter 84--Nuclear reactors, boilers, machinery and mechanical 
appliances; parts thereof
Chapter 86--Railway or tramway locomotives, rolling-stock and parts 
thereof; railway or tramway track fixtures and fittings and parts 
thereof; mechanical (including electro-mechanical) traffic signalling 
equipment of all kinds
Chapter 87--Vehicles other than railway or tramway rolling-stock, and 
parts and accessories thereof
Chapter 88--Aircraft, spacecraft, and parts thereof
Chapter 89--Ships, boats and floating structures

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 home page (http://www.usitc.gov), or by submitting a request 
on the Office of Tariff Affairs and Trade Agreements voice messaging 
system (202-205-2592).
    These proposals are intended to serve as the basis for the U.S. 
proposal to the TCRO of WCO. 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 close of business on April 15, 1997, in order to be 
considered. 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 as well as 
imports.
    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

[[Page 11465]]

requirements of 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.

    By order of the Commission.

    Issued: March 6, 1997.
Donna R. Koehnke,
Secretary.
[FR Doc. 97-6191 Filed 3-11-97; 8:45 am]
BILLING CODE 7020-02-P