[Federal Register Volume 65, Number 218 (Thursday, November 9, 2000)]
[Rules and Regulations]
[Pages 67260-67264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28772]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR PART 10

[T.D. 00-68]
RIN 1515-AC76


United States-Caribbean Basin Trade Partnership Act and Caribbean 
Basin Initiative

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

ACTION: Interim regulations; corrections.

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[[Page 67261]]

SUMMARY: This document makes corrections to the document published in 
the Federal Register on October 5, 2000, as T.D. 00-68 which set forth 
interim amendments to the Customs Regulations primarily to implement 
the trade benefit provisions for Caribbean Basin countries contained in 
Title II of the Trade and Development Act of 2000, referred to as the 
United States-Caribbean Basin Trade Partnership Act.

DATES: These corrections are effective October 1, 2000; written 
comments must be submitted by December 4, 2000, in the manner 
prescribed in T.D. 00-68.

FOR FURTHER INFORMATION CONTACT: Cynthia Reese, Office of Regulations 
and Rulings (202-927-1361).

SUPPLEMENTARY INFORMATION:

Background

    On October 5, 2000, Customs published in the Federal Register (65 
FR 59650) T.D. 00-68 to set forth interim amendments to the Customs 
Regulations primarily to implement the trade benefit provisions for 
Caribbean Basin countries contained in Title II of the Trade and 
Development Act of 2000. The trade benefits under Title II, also 
referred to as the United States-Caribbean Basin Trade Partnership Act 
(the CBTPA), apply to Caribbean Basin countries designated by the 
President and involve the entry of specific textile and apparel 
articles free of duty and free of any quantitative restrictions, 
limitations, or consultation levels and the extension of NAFTA duty 
treatment standards to non-textile articles that are excluded from 
duty-free treatment under the Caribbean Basin Initiative (CBI) program. 
Those interim regulatory amendments took effect on October 1, 2000, to 
coincide with the effective date of the relevant statutory provisions.
    This document rectifies some omissions and corrects some other 
errors published in T.D. 00-68. Two errors were in the preamble portion 
of the document and involved a misplacement of two numbers regarding 
the estimated information collection burden under the Paperwork 
Reduction Act. The remaining corrections set forth in this document 
involve the following aspects of the interim regulations:
    1. The amendatory instruction for the authority citation to Part 10 
should have stated that the general authority citation ``is revised'' 
(rather than ``continues'') to read as follows, because that general 
authority citation as set forth in T.D. 00-68 includes a change to 
reflect that General Note 20 of the Harmonized Tariff Schedule of the 
United States (HTSUS) was redesignated as General Note 22 in the Annex 
to Presidential Proclamation 7351 of October 2, 2000 (published in the 
Federal Register at 65 FR 59329 on October 4, 2000) which implemented 
the CBTPA.
    2. In the first sentence of Sec. 10.221, the word ``Basin'' was 
inadvertently omitted from the title of the CBTPA.
    3. The definition of ``assembled in one or more CBTPA beneficiary 
countries'' under Sec. 10.222 includes a parenthetical specification of 
items (that is, thread, decorative embellishments, buttons, zippers, or 
similar components) that are not considered to be components for 
purposes of assembly under the text. However, Customs has reconsidered 
this matter and now believes that inclusion of this parenthetical 
limiting language, which is not mandated by the statute, was in error 
because in some contexts it may be inconsistent with applicable 
judicial precedent as regards what may be considered a component for 
assembly purposes. Accordingly, this parenthetical reference should be 
removed from the text of the definition.
    4. The definition of ``CBTPA beneficiary country'' under 
Sec. 10.222 refers to a beneficiary country designated by the President 
but does not refer to the additional statutory requirement that the 
President determine whether a designated beneficiary country has 
satisfied the requirements of 19 U.S.C. 2703(b)(4)(A)(ii) (the 
authority for making that determination was delegated to the United 
States Trade Representative (USTR) in Presidential Proclamation 7351). 
Since the determination regarding the requirements of 19 U.S.C. 
2703(b)(4)(A)(ii) is a necessary condition of eligibility for the CBTPA 
trade benefits for each beneficiary country and thus operates as a 
condition precedent to application of the implementing regulations, the 
definition must be corrected to reflect this additional statutory 
requirement.
    5. Within Sec. 10.223, paragraph (a)(4) requires some wording 
changes to conform more closely to the terms of corresponding 
subheading 9820.11.09 which was added to the HTSUS by the Annex to 
Presidential Proclamation 7351.
    6. Within Sec. 10.223, paragraph (a)(8) requires some wording 
changes to conform more closely to the terms of corresponding 
subheading 9820.11.27 which was added to the HTSUS by the Annex to 
Presidential Proclamation 7351.
    7. Within Sec. 10.223, in paragraph (a)(9), the words ``or his 
designee'' should be added after ``the President'' to cover any future 
delegation of authority by the President in this context.
    8. Within Sec. 10.223, the words ``in a CBTPA beneficiary country'' 
need to be added after the word ``assembled'' in paragraph (a)(11) to 
reflect the wording of corresponding subheading 9820.11.21 which was 
added to the HTSUS by the Annex to Presidential Proclamation 7351.
    9. Within Sec. 10.223, paragraph (a)(12) describes certain knitted 
or crocheted apparel articles and was included to reflect the terms of 
subheading 9820.11.18 which was added to the HTSUS by the Annex to 
Presidential Proclamation 7351. The word ``wholly'' appears in the 
regulatory text before the word ``assembled'' but is not included in 
the text of the HTSUS subheading. In addition, the regulatory text 
includes, after the words ``assembled in one or more CBTPA beneficiary 
countries,'' the words ``or the United States'' which do not appear in 
the HTSUS subheading text. Accordingly, the words ``wholly'' and ``or 
the United States'' must be removed from the regulatory text to ensure 
conformity with the HTSUS subheading text.
    10. Also with regard to paragraph (a)(12) of Sec. 10.223, 
appropriate and necessary references to that provision were 
inadvertently omitted from the following regulatory provisions:
    a. In paragraph (b)(1)(i)(A) of Sec. 10.223, which concerns the 
special rule for foreign findings and trimmings, the sewing thread 
exception at the end must include a reference to paragraph (a)(12) in 
addition to the reference to paragraph (a)(3) because both provisions 
refer to ``thread formed in the United States.''
    b. In paragraph (b)(1)(i)(D) of Sec. 10.223, which concerns the de 
minimis rule for fibers and yarns not wholly formed in the United 
States or in one or more CBTPA beneficiary countries, the exception for 
elastomeric yarns (which must be wholly formed in the United States) 
must include a reference to paragraph (a)(12) in addition to the 
reference to paragraphs (a)(1) through (a)(5) because all of those 
provisions refer to ``yarns wholly formed in the United States.''
    c. In paragraph (b)(2) of Sec. 10.223, which concerns the special 
rule for nylon filament yarn, reference is made to an article otherwise 
described under ``paragraph (a)(1), (a)(2) or (a)(3) of this section,'' 
because those three regulatory provisions correspond to the two 
statutory provisions (that is, ``clause (i) or (ii)'' of 19 U.S.C. 
2703(b)(2)(A)) referred to in the statutory nylon filament yarn 
provision (that is, 19 U.S.C. 2703(b)(2)(A)(vii)(IV)). It is noted that 
the nylon filament yarn rule is also reflected in U.S. Note 3(d) to new 
Subchapter XX of Chapter 98 of the

[[Page 67262]]

HTSUS as added by the Annex to Presidential Proclamation 7351. Since 
that U.S. Note 3(d) also includes a reference to HTSUS subheading 
9820.11.18, a reference to paragraph (a)(12) should be added to 
paragraph (b)(2) of Sec. 10.223.
    d. Finally, the second sentence of paragraph (a) of Sec. 10.225, 
which concerns the filing of claims for preferential treatment, refers 
to articles described in paragraphs (a)(1) through (a)(11) and thus 
requires the addition of a reference to paragraph (a)(12) to be 
complete.
    11. In the Textile Certificate of Origin set forth under paragraph 
(b) of Sec. 10.224, the reference to Caribbean yarn must be removed 
from block 7 because the statutory and regulatory texts do not mention 
Caribbean yarn, and the description of preference group D must be 
corrected to conform more closely to the wording of paragraph (a)(4) of 
Sec. 10.223 as corrected in this document. The complete Certificate 
incorporating these corrections is set forth in this document.
    12. As in the case of Sec. 10.221 mentioned above, the word 
``Basin'' was inadvertently omitted from the title of the CBTPA in the 
first sentence of Sec. 10.231.
    13. Finally, for the same reasons stated above in the case of 
Sec. 10.222, the definition of ``CBTPA beneficiary country'' under 
Sec. 10.232 must be corrected to reflect the additional statutory 
requirement under 19 U.S.C. 2703(b)(4)(A)(ii).

Corrections of Publication

    Accordingly, the document published in the Federal Register as T.D. 
00-68 on October 5, 2000 (65 FR 59650) is corrected as set forth below.

Corrections to the Preamble

    1. On page 59657, in the second column, in the second line the 
number ``440'' is corrected to read ``42'' and in the fourth line the 
number ``42'' is corrected to read ``440''.

Corrections to the Interim Regulations

    2. On page 59657, in the third column, in the amendatory language 
in instruction paragraph 1, pertaining to the general authority 
citation for Part 10, the word ``continues'' is corrected to read ``is 
revised''.


Sec. 10.221  [Corrected]

    3. On page 59658, in the third column, in Sec. 10.221, the first 
sentence is corrected by adding the word ``Basin'' between the words 
``Caribbean'' and ``Trade''.


Sec. 10.222  [Corrected]

    4. On page 59658, in the third column, in Sec. 10.222, the 
definition of ``assembled in one or more CBTPA beneficiary countries'' 
is corrected by removing the parenthetical phrase ``(other than thread, 
decorative embellishments, buttons, zippers, or similar components)''.


    5. On page 59658, in the third column, in Sec. 10.222, the 
definition of ``CBTPA beneficiary country'' is corrected to read:
* * * * *
    CBTPA beneficiary country. ``CBTPA beneficiary country'' means a 
``beneficiary country'' as defined in Sec. 10.191(b)(1) for purposes of 
the CBERA which the President also has designated as a beneficiary 
country for purposes of preferential treatment of textile and apparel 
articles under 19 U.S.C. 2703(b)(2) and which has been the subject of a 
finding by the President or his designee, published in the Federal 
Register, that the beneficiary country has satisfied the requirements 
of 19 U.S.C. 2703(b)(4)(A)(ii).
* * * * *


Sec. 10.223  [Corrected]

    6. On page 59659, in the second column, in Sec. 10.223, paragraph 
(a)(4) is corrected to read:
* * * * *
    (a) * * *
    (4) Apparel articles (other than socks provided for in heading 6115 
of the HTSUS) knit to shape in a CBTPA beneficiary country from yarns 
wholly formed in the United States, and knitted or crocheted apparel 
articles (other than non-underwear t-shirts) cut and wholly assembled 
in one or more CBTPA beneficiary countries from fabrics formed in one 
or more CBTPA beneficiary countries or in one or more CBTPA beneficiary 
countries and the United States from yarns wholly formed in the United 
States (including fabrics not formed from yarns, if those fabrics are 
classifiable under heading 5602 or 5603 of the HTSUS and are formed in 
one or more CBTPA beneficiary countries);
* * * * *


    7. On page 59659, in the third column, in Sec. 10.223, paragraph 
(a)(8) is corrected to read:
* * * * *
    (a) * * *
    (8) Apparel articles that are both cut (or knit-to-shape) and sewn 
or otherwise assembled in one or more CBTPA beneficiary countries from 
fabrics or yarn that the President or his designee has designated in 
the Federal Register as not available in commercial quantities in the 
United States;
* * * * *

    8. On page 59659, in the third column, in Sec. 10.223, the text of 
paragraph (a)(9) is corrected by adding the words ``or his designee'' 
after the words ``the President'';


    9. On page 59659, in the third column, in Sec. 10.223, the text of 
paragraph (a)(11) is corrected by adding the words ``in a CBTPA 
beneficiary country'' after the word ``assembled''.


    10. On page 59660, in the first column, in Sec. 10.223, the text of 
paragraph (a)(12) is corrected by removing the word ``wholly'' before 
the word ``assembled'' and by removing the words ``or the United 
States'' after the word ``countries''.


    11. On page 59660, in the first column, in Sec. 10.223, the text of 
paragraph (b)(1)(i)(A) is corrected by adding the reference ``or 
(a)(12)'' after the reference ``paragraph (a)(3)''.


    12. On page 59660, in the second column, in Sec. 10.223, the text 
of paragraph (b)(1)(i)(D) is corrected by adding the reference ``or 
(a)(12)'' after the reference ``paragraph (a)(1) through (a)(5)''.


    13. On page 59660, in the second column, in Sec. 10.223, the text 
of paragraph (b)(2) is corrected by removing the reference ``paragraph 
(a)(1), (a)(2) or (a)(3)'' and adding, in its place, the reference 
``paragraph (a)(1), (a)(2), (a)(3) or (a)(12)''.


Sec. 10.224  [Corrected]

    14. On page 59661, in Sec. 10.224, the Textile Certificate of 
Origin under paragraph (b) is corrected to read:
* * * * *
    (b) * * *
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[[Page 67263]]

[GRAPHIC] [TIFF OMITTED] TR09NO00.012

Sec. 10.225  [Corrected]

    15. On page 59662, in the second column, in Sec. 10.225, the second 
sentence of paragraph (a) is corrected by removing the reference 
``Sec. 10.223(a)(2) through (a)(9) and (a)(11)'' and adding, in its 
place, the reference ``Sec. 10.223(a)(2) through (a)(9), (a)(11) or 
(a)(12)''.


Sec. 10.231  [Corrected]

    16. On page 59663, in the third column, in Sec. 10.231, the first 
sentence is corrected by adding the word ``Basin'' between the words 
``Caribbean'' and ``Trade''.


Sec. 10.232  [Corrected]

    17. On page 59663, in the third column, in Sec. 10.232, the 
definition of

[[Page 67264]]

``CBTPA beneficiary country'' is corrected to read:
* * * * *
    CBTPA beneficiary country. ``CBTPA beneficiary country'' means a 
``beneficiary country'' as defined in Sec. 10.191(b)(1) for purposes of 
the CBERA which the President also has designated as a beneficiary 
country for purposes of preferential duty treatment of articles under 
19 U.S.C. 2703(b)(3) and which has been the subject of a finding by the 
President or his designee, published in the Federal Register, that the 
beneficiary country has satisfied the requirements of 19 U.S.C. 
2703(b)(4)(A)(ii).
* * * * *

    Dated: November 3, 2000.
John P. Simpson,
 Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-28772 Filed 11-06-00; 4:01 pm]
BILLING CODE 4820-02-P