[Federal Register Volume 65, Number 240 (Wednesday, December 13, 2000)]
[Rules and Regulations]
[Pages 77816-77818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31700]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Parts 132 and 163
[T.D. 00--86]
RIN 1515-AC54
Export Certificates for Lamb Meat 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 December 2, 1999, as T.D. 99-87. The interim rule
set forth the form and manner by which an importer establishes that a
valid export certificate is in effect for certain fresh, chilled or
frozen lamb meat that is the subject of a tariff-rate quota, and the
product of a participating country, as defined in interim regulations
of the United States Trade Representative (USTR). The export
certificate enables the importer to claim the in-quota rate of duty on
the lamb meat.
EFFECTIVE DATE: December 13, 2000.
FOR FURTHER INFORMATION CONTACT: Cynthia Porter, Office of Field
Operations, (202-927-5399).
SUPPLEMENTARY INFORMATION:
Background
By Presidential Proclamation No. 7208 dated July 7, 1999, as
modified by Presidential Proclamation No. 7214 of July 30, 1999, the
President, acting under the authority of section 203 of the Trade Act
of 1974 (19 U.S.C. 2253), established a tariff-rate quota with respect
to certain fresh, chilled or frozen lamb meat exported to the United
States on or after July 22, 1999.
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.
[[Page 77817]]
It is noted that the tariff-rate quota on lamb meat was established
in response to a determination by the U.S. International Trade
Commission under section 202 of the Trade Act of 1974 (19 U.S.C. 2252)
that lamb meat was being imported into the United States in such
increased quantities as to substantially threaten serious injury to the
domestic lamb meat industry. The tariff-rate quota is temporary in
duration, being established for a period of three years and one day. It
is intended to help facilitate efforts during this period by the
domestic lamb meat industry to adjust to the increased import
competition.
Specifically, the lamb meat covered by the tariff-rate quota
consists of fresh, chilled or frozen lamb meat that is classified in
subheading 0204.10.00, 0204.22.20, 0204.23.20, 0204.30.00, 0204.42.20,
or 0204.43.20 of the Harmonized Tariff Schedule of the United States
(HTSUS). In order to implement the tariff-rate quota for the described
lamb meat, Presidential Proclamation No. 7208, as amended by
Presidential Proclamation No. 7214, modified subchapter III of Chapter
99, HTSUS, so as to list the in-quota quantities of lamb meat allocated
to those countries covered by the tariff-rate quota, together with the
in-quota and over-quota rates of duty applicable to the lamb meat.
Under Presidential Proclamation No. 7214, the United States Trade
Representative (USTR) was given authority to administer the tariff-rate
quota on the imported lamb meat.
As part of the implementation of this tariff-rate quota, the USTR
offered exporting countries that have an allocation of the in-quota
quantity the opportunity to use export certificates for their lamb meat
exports to the United States. 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 an exporting country that only those
exports that it intends for the United States market are counted
against its in-quota allocation, and it helps ensure that such imports
do not disrupt the orderly marketing of lamb meat in the United States.
The USTR issued an interim rule establishing regulations for this
export-certificate program (15 CFR part 2014) (64 FR 56429; October 20,
1999). To this end, 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 interim
regulations (15 CFR 2014.2(c)), 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 lamb meat
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. In this connection,
Australia and New Zealand have already requested, and have been
approved by USTR, to use export certificates for their lamb meat that
is exported to the United States, as noted in the USTR interim rule.
Accordingly, by a document published in the Federal Register (64 FR
67481) on December 2, 1999, as T.D. 99-87, Customs issued an interim
rule setting forth a new Sec. 132.16, Customs Regulations (19 CFR
132.16), in order to implement the USTR interim rule. Section 132.16
prescribes 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. This was intended to ensure that no imports
of the specified lamb meat products of a participating country would be
counted against the country's in-quota allocation unless the products
were covered by a proper export certificate. The export certificate
enables the importer to claim the in-quota rate of duty on the lamb
meat.
In addition, the interim rule revised the Interim (a)(1)(A) list of
records required for the entry of merchandise, that is set forth in an
Appendix to part 163, Customs Regulations (19 CFR part 163, Appendix).
As amended, the list made reference to the requirement in Sec. 132.15,
Customs Regulations (19 CFR 132.15) and in new Sec. 132.16, Customs
Regulations (19 CFR 132.16), that an importer possess a valid export
certificate, respectively, for beef or lamb meat subject to a tariff-
rate quota that is the product of a participating country, in order
that the importer may claim the applicable in-quota rate of duty. The
interim rule also made a technical correction to Sec. 132.15, Customs
Regulations.
Discussion of Comments
Two comments were received in response to the interim rule. Both
were submitted by or on behalf of trade associations. One commenter
unconditionally supported the interim rule. The other commenter
supported the establishment of an export-certificate program for lamb
meat subject to the tariff-rate quota, but raised a question about how
the applicable quota year under the export-certificate program was to
be determined. The specific issue raised by this commenter, together
with Customs response, is set forth below.
Comment
The commenter sought clarification as to whether the quota year
under the export-certificate program was to be based on the date of
entry or withdrawal for consumption, or on the date of exportation. The
commenter asserted that the quota period for purposes of administering
the tariff-rate quota for lamb meat should be based on the yearly
period in which the lamb meat is entered or withdrawn for consumption,
rather than on the yearly period in which the lamb meat is exported to
the United States. The commenter requested that Sec. 132.16 add a
specific provision to this effect. The commenter believed that basing
the quota period and the validity of the export certificate on the date
of exportation, rather than on the date of entry or withdrawal for
consumption, represented a departure from law as well as customary
practice.
Customs Response
The administration of the tariff-rate quota for lamb meat was
delegated to the USTR by Presidential Proclamation No. 7214 of July 30,
1999 (64 FR 42265; August 4, 1999). Thus, the determination of the
quota year for purposes of the export-certificate program implementing
this tariff-rate quota properly falls within the scope of USTR's
authority. In adopting its interim rule as a final rule (65 FR 40049;
June 29, 2000), the USTR has directly addressed the definition of the
quota year in this matter.
Specifically, in accordance with 15 CFR 2014.2(g) of the USTR final
rule, for purposes of applying the tariff-rate quota for lamb meat
under the export-certificate program, the quota year is the yearly
period in which the subject lamb meat is exported to the United States
(from July 22, 1999 through July 21, 2000, inclusive; from July 22,
2000 through July 21, 2001, inclusive; and from July 22, 2001 through
July 21, 2002, inclusive). This means that lamb meat covered by a valid
export certificate would be entitled, upon entry or withdrawal for
consumption, to the in-quota rate of duty that is in effect for the
period within which the lamb meat is exported to the United States (15
CFR 2014.2(g), 2014.3(b)(2) and 2014.3(b)(4) of the USTR final rule).
[[Page 77818]]
For example, lamb meat subject to the export-certificate program
that is exported on July 20, 2000, and entered for consumption on July
25, 2000, would be entitled to the in-quota rate of 9% ad valorem, if
it is covered by a valid export certificate, because this is the in-
quota rate in effect for the yearly (quota) period running from July
22, 1999, through July 21, 2000, inclusive, during which the product is
exported to the United States.
It is noted that the USTR final rule in this case is governed by
the Annex to Presidential Proclamation No. 7214 (64 FR 42265, at 42267)
which plainly applies the tariff-rate quota for lamb meat based upon
its date of exportation, as described above. To this effect, the Annex
so modified subchapter III of chapter 99 of the Harmonized Tariff
Schedule of the United States (HTSUS).
It is further noted that textile quotas, which are usually absolute
in nature, are also similarly determined based upon the date of export,
as opposed to the date of entry or withdrawal for consumption.
Conclusion
For these reasons, and after careful consideration of the comment
and further review of the matter, Customs concludes that the amendments
regarding parts 132 and 163, Customs Regulations (19 CFR parts 132 and
163) that appeared in the interim rule published in the Federal
Register (64 FR 67481) on December 2, 1999, as T.D. 99-87, should be
adopted as a final rule without change.
Inapplicability of Notice and Delayed Effective Date Requirements,
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 final 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).
Because this document is not subject to the requirements of 5 U.S.C.
553, as noted, 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, it is not subject to the
provisions of E.O. 12866.
Paperwork Reduction Act
The collections of information involved in this final 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 substantively change 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 amendments relating to parts 132 and 163 that
appeared in the interim rule that was published at 64 FR 67481 on
December 2, 1999, are adopted as a final rule without change.
Raymond W. Kelly,
Commissioner of Customs.
Approved: October 6, 2000.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-31700 Filed 12-12-00; 8:45 am]
BILLING CODE 4820-02-P