[Federal Register Volume 62, Number 219 (Thursday, November 13, 1997)]
[Notices]
[Pages 60919-60920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29782]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 332-388]


Simplification of the Harmonized Tariff Schedule of the United 
States

AGENCY: United States International Trade Commission.

ACTION: Institution of investigation.

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EFFECTIVE DATE: November 5, 1997.

FOR FURTHER INFORMATION CONTACT: Eugene A. Rosengarden, Director, 
Office of Tariff Affairs and Trade Agreements (O/TA&TA) (202-205-2592). 
The O/TA&TA fax number is: 202/205-2616. Mr. Rosengarden may also be 
reached via Internet e-mail at [email protected]. Hearing impaired 
individuals are advised that information on this matter can be obtained 
by contacting our TDD terminal on (202) 205-1810. Media representatives 
should contact Margaret O'Laughlin, Public Affairs Officer (202-205-
1819). This notice, and any subsequent notices published pursuant to 
section 332(g) of the Tariff Act of 1930, may be obtained from the ITC 
Internet web server: http://www.usitc.gov.

SUMMARY: Following receipt of a letter from the Chairman, Committee 
on Ways and Means, U.S. House of Representatives, the Commission 
has instituted investigation No. 332-388, Simplification of the 
Harmonized Tariff Schedule of the United States, under section 
332(g) of the Tariff Act of 1930. The purpose of the investigation 
is to propose modifications to the Harmonized Tariff Schedule of 
the United States (HTS) in order to make it simpler, more 
transparent and easier to use.

Background:

    As requested by the Committee, the Commission will conduct the 
investigation in accordance with the following guidelines:

--The investigation should examine the difficulties arising from the 
complexity and size of the HTS, and the Commission should suggest 
modifications to alleviate compliance and administrative burdens for 
the business community and the U.S. Customs Service.
--Concession-rate levels scheduled to go into effect on January 1, 2004 
should be used as the basis for general rates and special rates of 
duty. Tariff categories scheduled for rate reductions beyond January 1, 
2004 should be identified and their staging schedules indicated in the 
report, along with any suggested modification that take delayed staging 
into account.
--Consistent with sound nomenclature principles and U.S. international 
obligations under the Harmonized System Convention, the Commission 
should suggest ways to simplify the U.S. tariff structure to the extent 
practicable without affecting duty-rate changes with a significant 
effect on U.S. industry and trade.
--For each of HTS chapters 1 through 97, the Commission should suggest 
appropriate methods of reflecting Column 2 rates. Consistent with 
guidelines for rate changes, the Commission should avoid proposing or 
maintaining rate lines solely for the purpose of reflecting Column 2 
rates of duty.
--The Commission should suggest conversions of all specific, compound, 
and complex rates of duty to ad valorem equivalent rates, provided that 
such conversions would not have significant effects on U.S. industry 
and trade. In calculating rate conversions, the Commission should use 
trade data from the three most recent calendar years.
--The Commission should suggest an appropriate simplification of HTS 
statistical reporting categories for consideration by the Committee for 
Statistical Annotation of the Tariff Schedules, in accordance with 
section 484(f) of the Tariff Act of 1930, as amended.

    The Committee on Ways and Means has requested that the Commission 
complete its investigation and submit its report to that Committee, the 
Committee on Finance of the Senate, and to the President, by July 13, 
2000.
    As requested by the Committee, the Commission will consult with 
interested agencies in the Executive Branch, including the Office of 
the U.S. Trade Representative, the U.S. Customs Service, and the U.S. 
Bureau of the Census. In addition, a primary focus of the investigation 
will be to obtain the broadest possible range of private-sector input 
including U.S. producers, U.S. importers, and, via foreign embassies, 
major foreign exporters to the United States. To that end, the 
Commission anticipates that frequent notices and repeated contacts with 
interested parties will take place. Commission staff expect to work 
closely with various industry groups to ensure that the Commission is 
in a position to understand their interests and will be able to see 
that their concerns are recognized in the development of proposals to 
simplify the U.S. tariff structure. The Commission believes that it is 
vital to have significant private-sector input during all phases of 
this work.
    The Commission will from time to time issue notices and solicit 
comments and proposals with respect to specific portions of the HTS. 
However, comments addressed to the overall scope and direction of this 
investigation must be submitted by C.O.B. May 29, 1998.
    Written Submissions: All submissions in connection with this 
investigation should be addressed to the Secretary, United States 
International Trade

[[Page 60920]]

Commission, 500 E Street S.W., Washington, D.C. 20436.
    Commercial or financial information that a party desires the 
Commission to treat as confidential must be submitted on separate 
sheets of paper, each clearly marked ``Confidential Business 
Information'' at the top. All submissions requesting confidential 
treatment must conform with the 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 made available for inspection by interested persons.
    Public Hearing: At an appropriate time during the investigation, 
the Commission will hold public hearings to obtain the views of 
interested parties. Any such hearings will be announced in a future 
public notice.

    Issued: November 6, 1997.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 97-29782 Filed 11-12-97; 8:45 am]
BILLING CODE 7020-02-P