[Federal Register Volume 65, Number 111 (Thursday, June 8, 2000)]
[Notices]
[Pages 36505-36506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14466]


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DEPARTMENT OF THE TREASURY

Customs Service

[T.D. 00-15]


Application of Producers' Good Versus Consumers' Good Test in 
Determining Country of Origin Marking

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Final interpretation; extension of delayed effective date.

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SUMMARY: On March 14, 2000, Customs published as T.D. 00-15 a notice 
setting forth a final interpretation stating that Customs would no 
longer rely on the distinction between producers' goods and consumers' 
goods in making country of origin marking determinations. The notice 
prescribed a delayed effective date of June 12, 2000, for the final 
interpretation. The effective date was applicable to pipe fittings and 
flanges produced in the United States from imported forgings except for 
those which were the subject of a ruling subject to the procedure 
specified in 19 U.S.C. 1625. This document advises the public that the 
delayed effective date period for pipe fittings and flanges is being 
extended by an additional 90 days.

DATES: This extension is effective June 8, 2000. T.D. 00-15 is 
applicable to pipe fittings and flanges on or after September 11, 2000.

FOR FURTHER INFORMATION CONTACT: Monika Brenner, Attorney, Special 
Classification and Marking Branch, Office of Regulations and Rulings 
(202-927-1254).

SUPPLEMENTARY INFORMATION:

Background

    On March 14, 2000, Customs published in the Federal Register (65 FR 
13827) T.D. 00-15 a notice setting forth a final interpretation that 
adopted a previously published proposal to the effect that Customs 
would no longer rely on the producers' good to consumers' good test of 
Midwood Industries Inc. v. United States, 313 F.Supp. 951 (Cust. Ct. 
1970), in determining whether a substantial transformation of an 
imported good has occurred for purposes of making a country of origin 
determination under the Customs

[[Page 36506]]

marking statute (section 304 of the Tariff Act of 1930, as amended (19 
U.S.C. 1304)).
    The preamble portion of T.D. 00-15 contained a discussion of the 
public comments solicited in response to the published proposal, 
including comments on whether a delayed effective date for the final 
Customs interpretation should be employed, consistent with the 
principle set forth in National Juice Products Association v. United 
States, 628 F.Supp. 978 (CIT 1986). One commenter argued in favor of a 
one-year delayed effective date period on the basis that the change 
proposed by Customs would be drastic for pipe fitting and flange 
producers because it would require the purchase and installation of new 
machinery. In response, Customs first noted that when the marking rules 
were adopted, importations from NAFTA countries became subject to a 
marking requirement and those importers were able to make these changes 
in far less than a one-year period. Although Customs specifically 
rejected the suggested one-year delay as not being necessary based on 
prior experience with other changes in country of origin marking 
regimes, Customs nevertheless agreed that a delayed effective date 
period would be appropriate. Accordingly, Customs stated in T.D. 00-15 
that although Customs would require that all pipe fittings and flanges 
produced in the United States from imported forgings be marked with the 
country of origin of the imported forging, Customs would make the 
change effective 90 days after publication of the notice in the Federal 
Register, except in the case of a ruling subject to the procedure 
specified in 19 U.S.C. 1625. The final interpretation set forth in T.D. 
00-15 therefore was published with a delayed effective date of June 12, 
2000.
    Customs has received a request on behalf of several companies 
seeking a further delay in the effective date of the notice. The 
request claims that these companies would suffer irreparable harm if 
the June 12, 2000, effective date set forth in T.D. 00-15 were not 
extended, because they are unable to comply with the marking 
requirements by that date. Customs believes based on this 
representation that it would be reasonable in the case of pipe fittings 
and flanges to provide up to 6 months from the March 14, 2000, 
publication of the final interpretation for producers and importers to 
conform to the new standard. Accordingly, Customs is modifying the 
effective date set forth in T.D. 00-15 in order to extend the delayed 
effective date period by an additional 90 days.

Extension of Delayed Effective Date Period

    Based on the above, in T.D. 00-15 published in the Federal Register 
on March 14, 2000, at 65 FR 13827, under the Effective Date caption the 
date ``June 12, 2000'' is revised to read ``September 11, 2000''.

    Approved: June 2, 2000.
Raymond W. Kelly,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-14466 Filed 6-7-00; 8:45 am]
BILLING CODE 4820-02-P