[Federal Register Volume 64, Number 230 (Wednesday, December 1, 1999)]
[Rules and Regulations]
[Pages 67152-67154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30808]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

15 CFR Part 2015


Implementation of Tariff-Rate Quota for Imports of Sugar-
Containing Products

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Interim rule with request for comments.

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SUMMARY: This rule provides for export certificates to accompany 
imports of certain sugar-containing products under the tariff-rate 
quota for sugar-containing products established as a result of the 
Uruguay Round Agreements.

DATES: Effective Date: Interim rule effective on January 31, 2000.

[[Page 67153]]

Comments: Comments must be received by January 31, 2000.

ADDRESSES: Comments may be sent to Sharon Bomer Lauritsen, Director of 
Agricultural Affairs and Technical Barriers to Trade, Agricultural 
Affairs, Office of the United States Trade Representative, 600 17th 
Street, NW, Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: Sharon Bomer Lauritsen, Director of 
Agricultural Affairs and Technical Barriers to Trade, Agricultural 
Affairs, Office of the United States Trade Representative, 600 17th 
Street, NW, Washington, DC 20508; telephone: (202) 395-3167.

SUPPLEMENTARY INFORMATION: 

Background

    As a result of the Uruguay Round Agreements, approved by the 
Congress in section 101 of the Uruguay Round Agreements Act (URAA) 
(Pub. L. 103-465, the President, by Presidential Proclamation No. 6763, 
has established a tariff-quota for sugar-containing products. (Under a 
tariff-rate quota, the United States applies one tariff rate, known as 
the ``in-quota tariff rate,'' to imports of a product up to a 
particular amount, known as the ``in-quota quantity,'' and a different, 
higher tariff rate, known as the ``over-quota tariff rate,'' to imports 
of the product in excess of that amount.) The United States has 
assigned Canada a particular share of the in-quota quantity. Sugar-
containing products from Mexico may enter the United States under a 
separate tariff-rate quota established under the North American Free 
Trade Agreement.
    Pursuant to Presidential Proclamation No. 7235, October 7, 1999, 
the United States Trade Representative is delegated authority under 
section 404(a) of the URAA to take such action as may be necessary in 
implementing the tariff-rate quotas for sugar-containing products to 
ensure that imports do not disrupt the orderly marketing of commodities 
in the United States.
    As part of the implementation of the tariff-rate quotas, the United 
States is offering exporting countries that have an allocation of the 
in-quota quantity the opportunity to use export certificates for their 
sugar-containing product exports to the United States. Using export 
certificates assures an exporting country that only those exports that 
it intends for the United States market are counted against its in-
quota allocation, and in this ensures that imports do not disrupt the 
orderly marketing of sugar-containing products in the United States. 
However, a country does not need to participate in the export 
certificate program to receive its in-quota tariff rate for its share 
of the in-quota quantity.
    In Annex 17 of the December 4, 1998, Record of Understanding 
between the Governments of the United States of America and Canada 
regarding Areas of Agricultural Trade, the United States agreed to 
require an export permit issued by the Government of Canada as a 
condition for eligibility for the in-quota duty for certain sugar-
containing products of Canadian origin for which the exporter or 
importer is claiming preferential tariff treatment on entry into the 
United States.
    Under the interim rule, a country wishing to avail itself of export 
certificates must notify USTR, provide the necessary supporting 
information, and otherwise satisfy USTR that the country is a 
participating country. (USTR intends to publish a notice in the Federal 
Register whenever a country becomes, or ceases to be, a participating 
country.) In light of the request by the Government of Canada to 
participate in the export certificate program, the United States will 
require as a condition of eligibility for the in-quota duty that all 
sugar-containing products entered into the United States from Canada be 
accompanied by an export certificate issued by the Government of 
Canada. The United States Customs Service will then be responsible for 
ensuring that no imports of sugar-containing products from that country 
are counted against Canada's in-quota allocation unless there is a 
proper export certificate issued for that sugar-containing product.
    The United States Customs Service will separately issue regulations 
governing Customs implementation of this rule.

Comments

    Before adopting this interim regulation as a final rule, 
consideration will be given to any written comments that are timely 
submitted to USTR. Each person submitting a comment should include his 
or her name and address, and give reasons for any recommendation. After 
the comment period closes, USTR will publish in the Federal Register a 
final rule on this subject, together with a discussion of comments 
received and any amendments made to the interim rule as a result of the 
comments.
    To simplify the processing and consideration of comments, 
commenters are encouraged to submit documents in electronic form 
accompanied by an original and one paper copy. All documents submitted 
in electronic form should be on DOS formatted 3.5'' diskettes, and 
should be prepared in either WordPerfect format or a format that the 
WordPerfect program can convert and import into WordPerfect.

The Regulatory Flexibility Act and Executive Order 12866

    Pursuant to the provisions of 5 U.S.C. 553(a), public notice is 
inapplicable to this interim rule because it is within the foreign 
affairs function of the United States. Also, for the above reason, 
there is no need for a delayed effective date under 5 U.S.C. 553(d). No 
regulatory flexibility analysis is required for this rule since neither 
5 U.S.C. 553 nor any other provision of law requires publication of a 
general notice of proposed rulemaking with respect to this rule. 
Because no notice of proposed rulemaking is required for interim 
regulations, the provisions of the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.) do not apply; and because this document involves a foreign 
affairs function of the United States and implements an international 
agreement, it is not subject to the provisions of E.O. 12866.

List of Subjects in 15 CFR Part 2015

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

    For the reasons set out in the preamble, 15 CFR is amended by 
adding the following new part 2015 to read as follows:

PART 2015--IMPLEMENTATION OF TARIFF-RATE QUOTAS FOR SUGAR-
CONTAINING PRODUCTS

Sec.
2015.1  Purpose.
2015.2  Definitions.
2015.3  Export certificates.

    Authority: Sec. 404, Pub. L. 103-465, 108 Stat. 4809; 
Proclamation 6763, 3 CFR, 1994 Comp., p. 147; Proclamation 7235, 64 
FR 55611, October 13, 1999.


Sec. 2015.1  Purpose.

    The purpose of this part is to provide for the implementation of 
the tariff-rate quota for sugar-containing products established as a 
result of the Uruguay Round Agreements, approved by the Congress in 
section 101 of the Uruguay Round Agreements Act (Pub. L. 103-465). In 
particular, this party provides for the administration of export 
certificates where a country that has an allocation of the in-quota 
quantity under a tariff-rate quota has chosen to use export 
certificates.


Sec. 2015.2  Definitions.

    For the purpose of this subpart, the following terms shall have the 
following meanings:

[[Page 67154]]

    (a) In-quota sugar-containing products means any article classified 
under any of the subheadings of the HTS specified in additional U.S. 
note 8 to chapter 17 of the HTS that is entered under the in-quota rate 
of duty.
    (b) Allocated country means a country to which an allocation of a 
particular quantity of sugar-containing products has been assigned.
    (c) Enter or Entered means to enter, or withdraw from warehouse, 
for consumption.
    (d) HTS means the Harmonized Tariff Schedule of the United States.
    (e) Participating Country means any allocated country that USTR has 
determined is, and has notified the U.S. Customs Service as being, 
eligible to use export certificates.
    (f) USTR means the United States Trade Representative or the 
designee of the United States Trade Representative.


Sec. 2915.3  Export certificates.

    (a) To claim the in-quota rate of duty on sugar-containing products 
of a participating country, the United States importer must make a 
declaration to the United States Customs Service, in the form and 
manner determined by the United States Customs Service, that a valid 
export certificate is in effect with respect to those sugar-containing 
products.
    (b) To be valid, an export certificate shall:
    (1) Be issued by or under the supervision of the government of the 
participating country;
    (2) Specify the name of the party to whom the certificate is 
issued, the product description and quantity, shipment date, and the 
quota year for which the export certificate is in effect;
    (3) Have a distinct and uniquely identifiable number; and
    (4) Be used in the quota year for which it is in effect.
Charlene Barshefsky,
United States Trade Representative.
[FR Doc. 99-30808 Filed 11-30-99; 8:45 am]
BILLING CODE 3190-01-M