[Federal Register Volume 65, Number 136 (Friday, July 14, 2000)]
[Rules and Regulations]
[Pages 43689-43690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17927]



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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 132 and 163

[T.D. 00-49]
RIN 1515-AC55


Export Certificates for Sugar-Containing Products Subject to 
Tariff-Rate Quota

AGENCY: Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule, without change, the 
interim rule amending the Customs Regulations that was published in the 
Federal Register on February 4, 2000, as T.D. 00-7. The interim rule 
set forth the form and manner by which an importer establishes that a 
valid export certificate is in effect for certain sugar-containing 
products subject to a tariff-rate quota, that are products of a 
participating country, as defined in regulations of the United States 
Trade Representative (USTR). The export certificate is necessary to 
enable the importer to claim the in-quota rate of duty on the sugar-
containing products.

EFFECTIVE DATE: July 14, 2000.

FOR FURTHER INFORMATION CONTACT: Leon Hayward, Office of Field 
Operations, (202-927-9704).

SUPPLEMENTARY INFORMATION:

Background

    As a result of the Uruguay Round Agreements, approved by Congress 
in section 101 of the Uruguay Round Agreements Act (URAA) (Pub. L. 103-
465), the President, by Presidential Proclamation No. 6763, established 
a tariff-rate quota for imported 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 another, 
higher rate, known as the over-quota rate, to imports of a product in 
excess of the given amount. The preferential, in-quota tariff rate 
would be applicable only to the extent that the aggregate in-quota 
quantity of a product allocated to a country had not been exceeded.
    Under Presidential Proclamation No. 7235, dated October 7, 1999, 
the United States Trade Representative (USTR) was given authority under 
section 404(a) of the URAA to implement the tariff-rate quota for 
sugar-containing products to ensure that they do not disrupt the 
orderly marketing of such products in the United States. The USTR has 
already assigned Canada an in-quota allocation of the sugar-containing 
products (64 FR 54719; October 7, 1999).
    As part of the implementation of this tariff-rate quota, the USTR 
has established an export-certificate program under which exporting 
countries that have an allocation of the in-quota quantity and that 
wish to participate in the program may use export certificates for 
their sugar-containing products that are exported to the United States. 
The USTR issued regulations for this export-certificate program (15 CFR 
part 2015) (64 FR 67152; December 1, 1999).
    An exporting country wishing to participate in the export-
certificate program must notify the USTR and provide the necessary 
supporting information. As defined in the USTR regulations (15 CFR 
2015.2(e)), a participating country is a country that has received an 
allocation of the in-quota quantity of the tariff-rate quota, and that 
the USTR has determined, and has so informed Customs, is eligible to 
use export certificates for their sugar-containing products exported to 
the United States. The USTR has stated that it intends to publish a 
notice in the Federal Register whenever a country becomes, or ceases to 
be, a participating country.
    The particular sugar-containing products subject to a tariff-rate 
quota for which the USTR has established the export-certificate program 
are described in additional U.S. Note 8 to chapter 17 of the Harmonized 
Tariff Schedule of the United States (HTSUS). Specifically, unless 
excepted as provided in additional U.S. Note 3 to chapter 17, HTSUS, 
the imported sugar-containing products covered by the export-
certificate program contain over 10 percent by dry weight of sugars 
derived from cane or sugar beets, whether or not mixed with other 
ingredients, and they are classified under one of the following HTSUS 
subheadings: 1701.91.54, 1704.90.74, 1806.20.75, 1806.20.95, 
1806.90.55, 1901.90.56, 2101.12.54, 2101.20.54, 2106.90.78, or 
2106.90.95.
    While a country does not need to participate in the export-
certificate program in order to receive the in-quota tariff rate for 
its share of the in-quota quantity, using export certificates assures 
the exporting country that only those exported sugar-containing 
products that it intends for the United States market are counted 
against its in-quota allocation. As already noted, this helps ensure 
that such products do not disrupt the orderly marketing of sugar-
containing products in the United States.
    On December 4, 1998, the Governments of the United States and 
Canada entered into a Record of Understanding regarding Areas of 
Agricultural Trade. In Annex 17 of this Record of Understanding, the 
United States agreed to require an export permit issued by the 
Government of Canada in order to enable an importer to claim the in-
quota tariff rate for those sugar-containing products of Canadian 
origin described in additional U.S. Note 8 to chapter 17, HTSUS. Canada 
was thus a participating country in this export-certificate program as 
of January 31, 2000, the effective date of the USTR rule.
    In accordance with the rulemaking of the USTR, by a document 
published in the Federal Register (65 FR 5430) on February 4, 2000, 
Customs issued an interim rule that added a new Sec. 132.17 to the 
Customs Regulations (19 CFR 132.17), in order to prescribe the form and 
manner by which an importer establishes that a valid export certificate 
exists, including a unique number for the certificate that must be 
referenced on the entry or withdrawal from warehouse for consumption, 
whether filed in paper form or electronically. This was intended to 
ensure that no imports of the specified sugar-containing products of a 
participating country are counted against the country's in-quota 
allocation unless the products are covered by a proper export 
certificate. The export certificate is necessary in this regard in 
order to enable the importer to claim the in-quota rate of duty on the 
sugar-containing products.
    In addition, the Interim (a)(1)(A) List set forth as an Appendix to 
part 163, Customs Regulations (19 CFR part 163, Appendix), that lists 
the records required for the entry of merchandise, was revised to add a 
reference to the requirement in new Sec. 132.17 that an importer 
possess a valid export certificate for sugar-containing products that 
are subject to a tariff-rate quota and that are products of a 
participating country, in order for the importer to be able to claim 
the applicable in-quota rate of duty.
    Also, Sec. 132.15, Customs Regulations (19 CFR 132.15), was revised 
to make provision for electronic entry filing in the case of beef 
subject to a tariff-rate quota, for which the importer must similarly 
possess a valid export certificate in order to claim the in-quota rate 
of duty.
    No comments were received from the public in response to the 
interim rule, and Customs has now determined to

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adopt the interim rule as a final rule without change.

The Regulatory Flexibility Act and Executive Order 12866

    As discussed in the interim rule, since the amendments are not 
subject to the notice and public procedure requirements of the 
Administrative Procedure Act (5 U.S.C. 553), they are not subject to 
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Also, 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.

Paperwork Reduction Act

    The collections of information involved in this interim rule have 
already been approved by the Office of Management and Budget (OMB) in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
and assigned OMB Control Numbers 1515-0065 (Entry summary and 
continuation sheet) and 1515-0214 (General recordkeeping and record 
production requirements). This rule does not propose any substantive 
changes to the existing approved information collections.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid control number assigned by OMB.

List of Subjects

19 CFR Part 132

    Agriculture and agricultural products, Customs duties and 
inspection, Quotas, Reporting and recordkeeping requirements.

19 CFR Part 163

    Administrative practice and procedure, Customs duties and 
inspection, Imports, Reporting and recordkeeping requirements.

Amendments to the Regulations

    Accordingly, the interim rule amending 19 CFR parts 132 and 163, 
which was published in the Federal Register at 65 FR 5430 on February 
4, 2000, is adopted as a final rule without change.

Raymond W. Kelly,
Commissioner of Customs.
    Approved: June 14, 2000.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-17927 Filed 7-13-00; 8:45 am]
BILLING CODE 4820-02-P