[Federal Register Volume 65, Number 248 (Tuesday, December 26, 2000)]
[Rules and Regulations]
[Pages 81344-81356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32836]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10 and 178

[T.D. 01-01]
RIN 1515-AC79


Refund of Duties Paid on Imports of Certain Wool Products

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

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule the proposed amendments 
to the Customs Regulations that provide for the refund of duties paid 
on imports of certain wool products. This document implements the 
provisions of section 505 of Title V of the Trade and Development Act 
of 2000, whereby U.S. manufacturers of certain wool articles are 
eligible to claim a limited refund of duties paid in each of calendar 
years 2000, 2001, and 2002 on imports of select wool products. The 
maximum amount eligible to be refunded in each of these claim years is 
limited to an amount not to exceed one-third of the amount of duties 
actually paid on such wool products imported in calendar year 1999. 
This document adds to the Customs Regulations the eligibility, 
documentation and procedural requirements necessary to substantiate a 
wool duty refund claim, and makes conforming changes to other 
regulatory provisions that are impacted by these requirements.

EFFECTIVE DATE: January 25, 2001.

FOR FURTHER INFORMATION CONTACT: Bruce Ingalls, Chief, Entry and 
Drawback Management (202) 927-1082.

SUPPLEMENTARY INFORMATION:

Background

    On May 18, 2000, President Clinton signed into law the Trade and 
Development Act of 2000 (``the Act''), Public Law 106-200, 114 Stat. 
251. Title

[[Page 81345]]

V of the Act concerns imports of certain wool articles and sets forth 
provisions intended to provide tariff relief to U.S. manufacturers of 
specific wool products. Within Title V, section 505 permits eligible 
U.S. manufacturers to claim a limited refund of duties paid on imports 
of select wool articles.
    On October 26, 2000, Customs published a document in the Federal 
Register (65 FR 64178) that proposed to amend the Customs Regulations 
to provide for the refund of duties paid on imports of certain wool 
products, as authorized by section 505 of Title V of the Act. In that 
document, Customs explained the eligibility, documentation and 
procedural requirements necessary to file and substantiate a wool duty 
refund claim. On November 6, 2000, a document was published in the 
Federal Register (65 FR 66589) that corrected several typographical 
errors in the proposed rulemaking.
    The proposed rulemaking was intended to implement the terms of 
section 505 in new Sec. 10.184 of the Customs Regulations. The proposed 
rules set forth the eligibility, documentation and procedural 
requirements necessary for a claimant to establish the amount of duties 
paid on eligible wool products in calendar year 1999, and to 
substantiate a claim for a duty refund in the years 2000, 2001 and 
2002, pursuant to the terms of the statute.

Wool Duty Refunds Authorized by Section 505

    Section 505 authorizes duty refunds on certain worsted wool 
fabrics, wool yarn and wool fiber and wool top. The wool duty refunds 
authorized by section 505 were set forth in Sec. 10.184(c) of the 
proposed regulations.

Letter of Intent To File a Wool Duty Refund Claim

    As section 505 limits the amount of duties that may be refunded to 
a claimant in each of calendar years 2000, 2001, and 2002 to an amount 
not to exceed one-third of the amount of duties paid on eligible wool 
products in calendar year 1999, Customs proposed that an eligible 
manufacturer that anticipates seeking a section 505 duty refund in 
calendar years 2000, 2001, and 2002, must file with Customs a letter of 
intent to that effect, along with documentation that substantiates, to 
Customs satisfaction, the amount of duties paid on eligible wool 
products imported in calendar year 1999. The procedural and 
documentation requirements for filing a letter of intent were set forth 
in Sec. 10.184(d) of the proposed regulations.

Customs Verification Letter

    Section 10.184(e) of the proposed rulemaking provided that Customs 
would issue a wool duty refund verification letter to each prospective 
claimant that timely and completely substantiates, to Customs 
satisfaction, the amount of duties paid on eligible wool products 
imported in calendar year 1999.

Procedures for Filing a Wool Duty Refund Claim

    The proposed rulemaking, at Sec. 10.184(g), identified two classes 
of claimants that may file a wool duty refund claim: manufacturers who 
are the importers of eligible wool merchandise and manufacturers who 
are not the importers of worsted wool fabric. For both types of 
manufacturers, it was proposed that an eligible claimant be permitted 
to submit to Customs a request for a refund of duties paid on imports 
of eligible wool products in each of calendar years 2000, 2001 and 
2002. The proposed rulemaking stated that all duty refund claims must 
be substantiated by relevant entry summary information and, in the case 
of non-importing manufacturers, the entry summary information may be 
submitted to Customs by the manufacturer or the importer.

Discussion of Comments

    Sixteen comments from the public were received in response to the 
publication of the notice of proposed rulemaking. A description of the 
comments, together with Customs analysis thereof, is set forth below.
    Comment: Filing a Letter of Intent or Claim Where the Manufacturer 
is Both an Importer of Worsted Wool Fabric and a Purchaser of Such 
Fabric in a Single Claim Year. The proposed regulations identify three 
types of claimants who can file a letter of intent for purposes of 
claiming a wool duty refund: eligible manufacturers who import eligible 
wool merchandise; eligible manufacturers who do not import worsted wool 
fabric, but who possess the relevant entry summary numbers for the 
imported fabric; and eligible manufacturers who do not import worsted 
wool fabric, and who do not possess the relevant entry summary 
information. The documentation these manufacturers must submit to 
substantiate their letters of intent was described in proposed 
Sec. 10.184(d)(1), (d)(2) and (d)(3). Several commenters state that the 
proposed regulations suggest that a claimant can only be described by 
one of the three types of claimant categories, and accordingly is 
limited to filing one letter of intent under either proposed paragraph 
(d)(1), (d)(2) or (d)(3). One of these commenters suggests that as an 
eligible manufacturer may have been both an importer and a purchaser of 
eligible wool fabric in calendar year 1999, the final regulations 
should permit such a manufacturer to be able to file a letter of 
intent, with appropriate substantiating information, under any 
combination of proposed Sec. 10.184(d)(1), (d)(2) and (d)(3). To this 
end, this commenter suggests that the final regulations should either 
require more than one letter of intent for such a manufacturer or, 
preferably, that a single letter of intent may be filed that identifies 
the specific classes under which an eligible manufacturer is filing, 
together with the attachments/affidavits required for each class of 
manufacturer.
    Several commenters raise the same issue regarding the procedures 
for filing a wool duty refund claim, as set forth in proposed 
Sec. 10.184(g)(3)(i) through (g)(3)(vi). They note that as a 
manufacturer may be both an importer of eligible wool fabric and a 
purchaser of such imported fabric, the final regulations should permit 
a manufacturer to be able to file a single claim pursuant to the 
documentation requirements for both categorizations.
    On a related note, several commenters state that there may be 
instances where a non-importing manufacturer purchases worsted wool 
fabric from more than one importer/supplier, and some importers are 
willing to provide the manufacturer with the relevant entry summary 
information and some are only willing to provide such information 
directly to Customs. In these instances, these commenters suggest that 
the final regulations should permit a manufacturer, both for purposes 
of filing a letter of intent and for filing a duty refund claim, to be 
able to submit relevant entry summary information directly to Customs 
and to have such information submitted to Customs by the importer/
supplier.
    Customs Response: Customs agrees that the proposed regulations did 
not expressly state that a manufacturer may file a letter of intent 
under any combination of Sec. 10.184(d)(1), (d)(2) and (d)(3). As it 
was Customs intent to permit this, the final regulations provide the 
documentation requirements for filing a letter of intent where the 
manufacturer is described by two or more of paragraphs (d)(1), (d)(2) 
or (d)(3) of this section. This is set forth in Sec. 10.184(d)(4). 
Additionally, Sec. 10.184(g)(3)(vii) is added to the final regulations 
to reflect the fact that, for purposes of filing a claim, a 
manufacturer may be both an importer

[[Page 81346]]

of worsted wool fabric and a purchaser of such fabric in the same claim 
year. The final regulations also permit, at Sec. 10.184(d)(2)(i)(D), 
(d)(2)(ii), (g)(3)(iii) and (g)(3)(iv), a non-importing manufacturer to 
be able to submit relevant entry summary numbers directly to Customs, 
and to have such entry information submitted directly to Customs by the 
importer(s), all in conjunction with a single claim.
    Comment: Changes to proposed Sec. 10.184(d)(2)(i)(D) and 
Sec. 10.184(d)(2)(ii) and (d)(3)(ii). One commenter suggests two 
clarifying changes to Sec. 10.184(d). First, it is suggested that 
proposed Sec. 10.184(d)(2)(i)(D)(5) and (D)(6) be redesignated in the 
final regulations as (d)(2)(i)(D)(5a) and (d)(2)(i)(D)(5b), 
respectively, so as to correlate to the itemization in the related 
affidavit set forth at proposed Sec. 10.184(d)(2)(ii). Second, the 
commenter suggests that the heading text of the affidavits set forth at 
proposed Sec. 10.184(d)(2)(ii) and (d)(3)(ii) be amended to include the 
following description in the parenthetical reference: ``* * * for the 
fabric identified in the invoices submitted with this affidavit)''.
    Customs Response: The final regulations reflect, at 
Sec. 10.184(d)(2)(ii) and (d)(3)(ii), the amended affidavit heading 
text suggested by the commenter. Customs will not redesignate 
Sec. 10.184(d)(2)(i)(D)(5) and (d)(2)(i)(D)(6), in that the drafting 
rules prescribed by the Federal Register do not permit the change as 
suggested.
    Comment: Place to File a Letter of Intent. One commenter notes that 
the proposed regulations did not specify where a letter of intent and 
related documentation should be filed.
    Customs Response: Customs recognizes the omission. The final 
regulations create a new Sec. 10.184(d)(7) that sets forth the place 
where a letter of intent must be filed.
    Comment: Issuance of Verification Letters. Several commenters 
request clarification of the time within which Customs will send 
written verification letters to prospective claimants. Proposed 
Sec. 10.184(e) provided that Customs will issue a prospective claimant 
a written verification letter within 30 calendar days from the date 
Customs receives a completed letter of intent. The commenters note that 
Customs may not have the information it needs within 30 days of 
receiving a prospective claimant's letter of intent that relies on 
invoices to substantiate the amount of duties paid in calendar year 
1999, and therefore will either have to file an amended verification 
letter at a later date or wait until 30 calendar days from the close of 
the filing date for letters of intent.
    Customs Response: Customs agrees that the date by which Customs 
will issue a verification letter requires clarification. The proposed 
rule stated that, in all cases, Customs will issue a verification 
letter within 30 calendar days of receiving a prospective claimant's 
letter of intent. The verification letter sets forth the amount of wool 
duty refund the prospective claimant is eligible to receive and, where 
invoices were used to substantiate the amount claimed in the letter of 
intent, the percentage deducted from the invoice amounts with an 
accompanying explanation.
    Where invoices are used to substantiate a letter of intent, Customs 
must wait until it has received all such letters of intent because the 
agency will need to compare the aggregate amount of duties being 
claimed for each importer, as evidenced by invoices, with the amount 
actually paid by each importer, as evidenced by the Automated 
Commercial System (ACS). In other words, in situations where invoices 
are used to substantiate a letter of intent, Customs will not be able 
to ascertain the percentage to be deducted from each invoice amount, 
and consequently determine the maximum refund amount that a prospective 
claimant is eligible to claim, until it has received all letters of 
intent that rely on invoices. Customs will have to receive all letters 
of intent that rely on invoices in order to calculate the aggregate 
amount of duties attributable to each importer and compare this amount 
with the amount paid by each importer as indicated by ACS. As a result, 
it will not be possible for Customs to issue a verification letter 
within 30 calendar days after receiving a prospective claimant's letter 
of intent that relies on invoices, in that Customs will not have the 
necessary information to determine the amount to deduct from each 
invoice amount. Accordingly, this final rule reflects that Customs will 
issue a verification letter in response to a letter of intent that uses 
invoices, in whole or in part, to substantiate the amount of duties 
paid in calendar year 1999 within 30 days from the closing date for 
filing letters of intent. It is further noted, that this document 
extends the date, as proposed, by which Customs must receive all 
letters of intent. See discussion below. The time frame within which 
Customs will issue a verification letter in response to a letter of 
intent that is substantiated solely by entry summary information 
remains unchanged from the terms set forth in the proposed rulemaking 
(i.e., 30 calendar days from the date Customs receives the letter of 
intent).
    Comment: Extension of Time to File a Letter of Intent. Two 
commenters suggest that Customs extend the time period to submit a 
letter of intent so as to allow prospective claimants adequate time to 
collect the requisite information.
    Customs Response: Customs agrees. The final regulations provide in 
Sec. 10.184(d)(4) that a manufacturer's letter of intent must be 
received by Customs no later than March 31, 2001, unless this date is 
extended upon due notice in the Federal Register.
    Comment: A Claimant May File Only One Wool Duty Refund Claim, and 
Amended Claims Where Applicable, for Each Claim Year. Proposed 
Sec. 10.184(g)(1) stated that a claimant may submit to Customs, once 
per calendar year, a request for a refund of duties paid on imports of 
eligible wool products in each of calendar years 2000, 2001, and 2002. 
Several commenters note that this time limitation seemingly precludes a 
claimant from filing two separate wool duty refund claims for two 
different claim years in the same calendar year. The commenters suggest 
that the regulations should provide that a claimant may file only one 
wool duty refund claim for each claim year; however, refund claims for 
two different claim years may be filed within the same calendar year.
    Customs Response: It was Customs intent to permit a claimant to 
file more than one refund claim in a given calendar year, so long as 
the refund claims were for different claim years. Customs agrees with 
the commenters that the proposed language seemingly precluded this. 
Therefore, this final rule provides at Sec. 10.184(g)(1) that a 
claimant may file one claim for a wool duty refund for each of claim 
years 2000, 2001, and 2002, including, where applicable, any related 
amended claims for such claim year. There is no prohibition against a 
claimant filing two separate claims in a single calendar year, so long 
as the claims are for two different claim years.
    Comment: Time to File a Wool Duty Refund Claim and Amended Claims. 
Several commenters request that Customs extend the deadlines for filing 
wool duty refund claims and amended claims, and clarify the meaning of 
the term ``defective claim''. Proposed Sec. 10.184(g)(1) provided that 
all claims for a wool duty refund, whether original or amended, must be 
received by Customs within 90 calendar days from the last day of the 
calendar year for which a wool duty refund is being sought. The 
proposed rule provided that a claim may be amended within 30

[[Page 81347]]

calendar days from the date of the original submission or, if Customs 
has notified the claimant in writing that the claim is insufficient to 
support a duty refund claim or is otherwise defective, within 30 
calendar days from the date of the Customs notification. The commenters 
suggest extending these deadlines so that a claim may be filed by 
December 31 of the year following the claim year for which a wool duty 
refund is being sought, and that a claim may be amended within 90 
calendar days from the date of the original submission or December 31, 
whichever date is sooner. The commenters suggest that the time period 
to file an amended claim in response to a Customs notice of 
insufficient or defective claim be extended to 90 calendar days from 
the date of such notice, without the imposition of the December 31 
deadline, described above, that is applicable to all other claims and 
amended claims. Lastly, the commenters suggest that the term 
``defective claim'' include a claim that identifies one or more entry 
summaries that are not available for a refund.
    Customs Response: Customs agrees with the comments. Accordingly, in 
this final regulation Customs is extending the deadlines set forth in 
proposed Sec. 10.184(g)(1) for filing a wool duty refund claim and 
related amendments. The final regulations state, at Sec. 10.184(g)(1), 
that should Customs notify a claimant in writing that the claim is 
insufficient to support a duty refund claim or is otherwise defective, 
Customs must receive the claimant's subsequent amended claim or claims 
within 90 calendar days from the date of such notification. Regarding 
the term ``defective claim,'' Customs is providing in a parenthetical 
reference provided at Sec. 10.184(g)(1) that an example of a defective 
claim is a claim that relies on any entry summary that is ineligible 
for a wool duty refund, as provided for in Sec. 10.184(j). In order to 
facilitate the administrative processing of wool duty refund claims, 
the final regulations provide at Sec. 10.184(h) that no duty refund 
will be issued to a claimant until the applicable amendment period has 
expired or unless the claimant has provided Customs with a signed 
waiver of amendment.
    Comment: No Interest Payable in Wool Duty Refunds. Several 
commenters note that the proposed regulation does not describe the 
circumstances when interest may be payable on wool duty refunds.
    Customs Response: Customs will not pay interest on wool duty refund 
claims. The United States Supreme Court, in Library of Congress v. 
Shaw, 478 U.S. 310, 106 S. Ct. 2957 (1986), held that interest cannot 
be recovered in a suit against the Federal Government in the absence of 
an express waiver of sovereign immunity, by specific contractual or 
statutory provision or by express consent by Congress. Section 505 does 
not expressly waive the government's sovereign immunity from an award 
of interest. Moreover, there can be no such waiver ``by implication or 
by use of ambiguous language,'' as held by the Supreme Court in United 
States v. N.Y. Rayon Importing Co., 329 U.S., at 659. The statute that 
authorizes Customs to pay interest on certain duties and fees is 
codified at 19 U.S.C. 1505. It specifically refers to payments of 
interest on ``excess moneys deposited'' which shall accrue through the 
``date of liquidation or reliquidation of the applicable entry or 
reconciliation.'' 19 U.S.C. 1505(c). Customs payment of claims for 
refunds under these regulations is not a payment of excess moneys 
deposited, nor is it triggered by the liquidation of an entry or 
reconciliation. Rather, these claims are analogous to claims for 
drawback. Just as no interest is paid on drawback claims, so no 
interest will be paid on these claims. After Customs has verified that 
the entry summaries associated with the claim have finally liquidated 
and the period for amending the claim has expired or the claimant has 
expressly waived the right to amend the claim, Customs will issue a 
courtesy notice informing the claimant that the payment will be 
forthcoming. No notice of liquidation or reliquidation will be posted 
regarding the claim.
    Comment: Definition of the term ``Supplier''. Several commenters 
suggest that Customs define the term ``supplier'' to mean the entity 
who is not the importer that sold the fabric directly to the 
manufacturer.
    Customs Response: Customs agrees with the commenters' view that the 
term ``supplier,'' in the context of these regulations, means an entity 
who is not the importer that sells fabric directly to the manufacturer. 
We do not think it is necessary to formally define this term in the 
final regulation. Customs believes that the meaning of the term 
``supplier,'' as intended by Customs and suggested by the commenters, 
is clear from the context in which it appears in the regulations (i.e., 
the claimant purchased imported worsted wool fabric ``from an 
identified importer or from an identified supplier'').
    Comment: Definition of the term ``Manufacturer''. Several 
commenters state that the term ``manufacturer'' should be clarified so 
as to describe who is eligible to claim a wool duty refund under the 
terms of these regulations. To that end, the commenters note that some 
manufacturers are producers of eligible products (i.e., custom 
tailors), some are subsidiaries of larger companies or purchasers of 
eligible wool products from related companies, and some manufacturers 
acquire other manufacturers or undergo reorganizations that result in 
an assignation of legal interests.
    Customs Response: Customs is of the view that it is not feasible to 
attempt to identify in the final regulations each business relationship 
or transaction that may affect the eligibility of a manufacturer to 
claim a refund, have another party file a letter of intent or refund 
claim on the manufacturer's behalf, or assign a successor-in-interest 
to an existing wool duty refund claim, etc. Customs will decide whether 
such situations affect the right to file a wool duty refund claim on a 
case by case basis. Any questions in this regard should be submitted to 
Customs as an attachment to a letter of intent or wool duty refund 
claim. Regarding the more specific questions of whether a custom tailor 
is an eligible claimant for purposes of the wool duty refund program 
and whether the legal assignee of an eligible manufacturer may exercise 
the assignor's claim rights, Customs notes the following. Customs is of 
the view that so long as a custom tailor manufactures men's or boys' 
suits, suit-type jackets or trousers, of imported worsted wool, the 
tailor is described by the terms set forth in Sec. 10.184(c)(1) and 
there is no need to include any clarification in regard to this class 
of manufacturer. The final regulations reflect, however, in 
Sec. 10.184(f)(7), that an eligible claimant may be the legal assignee, 
as established to Customs satisfaction, of the existing wool duty 
refund claim rights of an eligible manufacturer described in paragraphs 
(f)(1), (f)(2), (f)(3), (f)(4), (f)(5) or (f)(6) of Sec. 10.184. The 
final regulations also set forth, at new paragraphs (d)(5) and 
(g)(viii), the documentation that a legal assignee of a manufacturer's 
wool duty refund claim rights must provide to Customs for purposes of 
filing a letter of intent and a refund claim.
    Comment: Confidentiality. One commenter expresses concern with 
respect to confidential treatment of certain commercial information. 
Specifically, the commenter notes that as proposed Sec. 10.184(e) 
provided that a verification letter issued to a prospective claimant 
will contain the ACS-generated amount of duties paid by a specific 
importer in calendar year 1999, the prospective claimant will be 
advised of the amount of duty paid by

[[Page 81348]]

each of their importers or suppliers. The commenter is of the view that 
a prospective claimant will be able to calculate from this information 
the prices paid for imported fabric and the mark-up cost. The 
commenter, citing section 645 of the Trade Secrets Act (18 U.S.C. 1905) 
posits that release of this information may violate the prohibition 
against release of confidential information by government officials.
    Customs Response: In response to the concern expressed by the 
commenter, Customs is deleting reference in the verification letter to 
the ACS-generated amount of duties paid by a specific importer in 
calendar year 1999. Section 10.184(e) of the final regulations reflects 
this approach.
    Comment: Use of Invoices to Substantiate Wool Duty Refund Claims. 
One commenter questions why the proposed regulations permit a 
manufacturer to substantiate a letter of intent by providing Customs 
with invoices for worsted wool fabric imported in calendar year 1999, 
but requires entry summary information to substantiate a wool duty 
refund claim.
    Customs Response: Section 505(d) requires that ``any person 
applying for a rebate under this section shall properly identify and 
make appropriate claim to the United States Customs Service for each 
entry involved.'' For this reason, the final regulations implementing 
the statute require a claimant to identify to Customs the entry 
summaries that provide the basis for a wool duty refund claim. Invoices 
do not provide the requisite information to substantiate a wool duty 
refund as mandated by section 505.
    Comment: Retroactive Substitution of Entry Summary Numbers for 
Purposes of Drawback Claims. One commenter notes that where an importer 
provides entry summary numbers to its customers or directly to Customs 
for purposes of substantiating a wool duty refund claim, and the 
importer later learns that a drawback claim is available on one or more 
of those entry summaries, the drawback claim is invalid. The commenter 
suggests that in this situation the importer be allowed to replace the 
entry summaries identified to Customs to substantiate a wool duty 
refund claim with other comparable entry summaries, so long as the 
amount of duty paid in connection with the replacement entries is not 
less than the duty paid on the original entry.
    Customs Response: First, it is important to recognize that in the 
situation posited by the commenter, the importer's drawback claim may 
not necessarily be forfeited. As set forth in Sec. 10.184(j)(3) of the 
proposed regulations, if an entry has been used to provide the basis 
for a duty refund claim pursuant to section 505, and the entire amount 
of duties paid on that entry was refunded to the claimant, a claim for 
drawback that is based on that entry will be denied by Customs. If an 
entry has been used to substantiate a claim for a section 505 duty 
refund, and an amount in duties paid on that entry has not been 
refunded, the remaining amount may be eligible for drawback. An entry 
that has already had 99% of the duties paid on that entry refunded by 
way of a drawback claim may not be used to provide the basis for a wool 
duty refund claim. Based on the foregoing, the crucial determination as 
to whether an importer can replace an entry summary that has already 
been identified to Customs for purposes of substantiating a claim with 
another entry summary that has had a comparable amount of duties paid 
in connection with that entry is whether the wool duty refund claim has 
been processed yet. If so, and the entire amount of duties paid on that 
entry was refunded to the claimant, no substitution of entry summaries 
will be permitted, and a claim for drawback that is based on that entry 
will be denied by Customs. If, however, the section 505 claim has not 
yet been processed, Sec. 10.184(j)(3) of the final regulations will 
permit an importer to replace or substitute an entry summary pursuant 
to the terms discussed above.
    Comment: Importer's Affidavit in Support of a Non-Importing 
Manufacturer's Letter of Intent. One commenter inquires whether an 
importer's affidavit in support of a non-importing manufacturer's 
letter of intent, set forth in proposed Sec. 10.184(d)(2)(iv), covers a 
single manufacturer.
    Customs Response: Each importer's affidavit in support of a non-
importing manufacturer's letter of intent applies only to the specific 
manufacturer or supplier(s) identified in the affidavit.
    Comment: Request that Importers be Permitted to File on Behalf of 
Manufacturers. One commenter requests that importers be permitted to 
file wool duty refund claims on behalf of smaller manufacturers.
    Customs Response: For administrative and legal purposes, Customs 
considers it important that a manufacturer file a claim on its own 
behalf, in that the manufacturer, or a knowledgeable authorized officer 
or employee of the manufacturer, is required to provide a statement to 
Customs attesting to the truth and accuracy of the submitted 
information.
    Comment: Allocation of Fabric Prices by an Importer. One commenter 
notes that as some manufacturers purchase fabric at different prices 
from different sources at different times of the year, it may not be 
possible for an importer to determine which fabric entry, or portion of 
an entry, was sold to a particular manufacturer. The commenter 
questions how an importer will be able to determine a method of 
allocating the higher price fabrics to its customers.
    Customs Response: Customs does not require that an importer 
allocate to a manufacturer the specific entry for the fabric that was 
sold to that manufacturer. Rather, the importer need only allocate 
those entries on which an amount was paid in duties that substantiates 
the amount of duty refund being claimed by the manufacturer.
    Comment: Distinction between HTSUS provisions that may be used to 
substantiate wool duty refund claims for claim year 2000, and for claim 
years 2001 and 2002. One commenter notes that the language in proposed 
Sec. 10.184(c)(2) that read, ``[A] manufacturer of worsted wool fabric, 
who imports wool yarn of the kind described in HTSUS subheadings 
5107.10.00 and 9902.51.13 * * * ,'' should be changed to read, in 
pertinent part, ``* * * 5107.10.00 or 9902.51.13 * * *.'' The commenter 
points out that the amended language should reflect the construction 
used in paragraphs (c)(1) and (c)(3).
    Customs Response: This comment precipitated Customs review of the 
entire structure of Sec. 10.184(c) and (f). It is Customs view that a 
distinction must be made in the final regulations as to which tariff 
provisions may be used to substantiate a wool duty refund in each of 
claim years 2000, 2001, and 2002. In this regard, the final regulations 
state that the chapter 51, HTSUS, provisions identified in paragraphs 
(c) and (f) provide the basis for a wool duty refund for claim year 
2000, and the HTSUS 9902 subheadings identified in these paragraphs 
provide the basis for a refund for claims years 2001 and 2002. This 
distinction is necessitated by the terms of section 505, which only 
authorizes the refund of duties paid in each of claim years 2000, 2001, 
and 2002, on imports of certain wool products described in HTSUS 
subheadings 9902.51.11, 9902.51.12, 9902.51.13 and 9902.5114. As these 
9902, HTSUS, provisions will only go into effect on January 1, 2001, it 
is impossible for a claimant to use these provisions to substantiate a 
year 2000 claim. For this reason, Customs is permitting claimants to 
substantiate year 2000 claims with the chapter 51,

[[Page 81349]]

HTSUS, tariff provisions identified in the regulations. Customs will 
not permit the chapter 51 tariff provisions to be used to substantiate 
wool duty refund claims for claim years 2001 and 2002, inasmuch as 
these tariff provisions are broader in scope (they contain no limiting 
micron criteria in their legal heading text) than the designated 9902, 
HTSUS, provisions. To do so would result in the Treasury Department 
refunding more monies than it is statutorily authorized to do.
    Comment: Micron Limitation. One commenter notes that the proposed 
regulations allowed no refund of duties paid on imports of wool yarn of 
18.5 micron or finer.
    Customs Response: As Congress did not expressly provide for the 
refund of duties paid on imports of wool yarn of 18.5 micron or finer 
in section 505, Customs, as an administrative agency, may not exceed 
what is statutorily authorized.
    Comment: Manufacturers of Wool Fabric and Wool Yarn. One commenter 
raises the issue that the proposed regulations did not provide for duty 
refunds where the manufacturer of wool fabric purchases imported wool 
yarn or where the manufacturer of wool yarn purchases imported wool 
fiber or wool top.
    Customs Response: Sections 505(b) and 505(c) require that 
manufacturers of wool fabric and wool yarn also be importers of 
eligible wool products in order to be eligible to receive a wool duty 
refund under the terms of the statute. It is noted that section 505(a) 
does not require a manufacturer of men's or boys' suits, suit-type 
jackets, or trousers of worsted wool fabric to also be an importer of 
worsted wool fabric to be eligible for the refund. Customs has 
interpreted this difference in statutory construction to mean that 
Congress did not intend to provide wool duty refunds under sections 
505(b) and 505(c) to manufacturers who are not importers.

Conclusion and Other Changes

    After analysis of the comments and further review of the matter, 
Customs has determined to adopt as a final rule the amendments proposed 
in the Notice of Proposed Rulemaking published in the Federal Register 
(65 FR 641780) on October 26, 2000, as corrected by the document 
published in the Federal Register (65 FR 66589) on November 6, 2000, 
with the changes mentioned in the comment discussion and with the 
following additional change that removes unnecessary language.
    Customs has removed the regulatory text language in proposed 
Sec. 10.184(j)(1) regarding the order of precedence for purposes of 
refunding duties paid on eligible wool imports. As each manufacturer 
that timely and completely files a claim pursuant to the terms set 
forth in this section, regardless of the date and time of filing, is 
eligible to receive its verified claim, there is no need to establish 
an order of precedence.

The Regulatory Flexibility Act and Executive Order 12866

    Because these amendments conform the Customs Regulations to reflect 
the terms of section 505, within Title V, of the Trade and Development 
Act of 2000, which authorizes a refund of duties paid on imports of 
certain wool articles, pursuant to the provisions of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., it is certified that these 
amendments will not have a significant impact on a substantial number 
of small entities. Further, these amendments do not meet the criteria 
for a ``significant regulatory action'' as specified in Executive Order 
12866.

Paperwork Reduction Act

    The collection of information contained in this final rule has been 
reviewed and approved by the Office of Management and Budget (OMB) in 
accordance with the requirements of the Paperwork Reduction Act of 1995 
(44 U.S.C. 3507) under control number 1515-0227. 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.
    The collection of information in this final rule is in Sec. 10.184 
of the Customs Regulations. The information requested is necessary to 
implement the terms of section 505 of the Trade and Development Act of 
2000, whereby Customs is authorized to substantiate and process claims 
for refunds of duties paid in each of calendar years 2000, 2001, and 
2002, on imports of certain wool products. The collection of 
information is required in order for a claimant to obtain the duty 
refund. The likely respondents are business organizations who seek a 
refund of duties paid on imports of eligible wool products in each of 
calendar years 2000, 2001, and 2002.
    The estimated average annual burden associated with the collection 
of information in this final rule is 290 hours per respondent or 
recordkeeper. Comments concerning the accuracy of this burden estimate 
and suggestions for reducing this burden should be sent to the U.S. 
Customs Service, Information Services Group, Office of Finance, 1300 
Pennsylvania Avenue, N.W. Washington, D.C. 20229, and to OMB, 
Attention: Desk Officer for the Department of the Treasury, Office of 
Information and Regulatory Affairs, Washington, D.C. 20503. A copy 
should also be sent to the Regulations Branch at the address set forth 
above.

Drafting Information

    The principal author of this document was Suzanne Kingsbury, Office 
of Regulations and Rulings, U.S. Customs Service. However, personnel 
from other offices participated in its development.

List of Subjects

19 CFR Part 10

    Customs duties and inspection, Imports, Reporting and recordkeeping 
requirements, Trade agreements.

19 CFR Part 178

    Administrative practice and procedure, Collections of information, 
Imports, Paperwork requirements, Reporting and recordkeeping 
requirements.

Amendments to the Regulations

    For the reasons stated in the preamble, parts 10 and 178 of the 
Customs Regulations (19 CFR parts 10 and 178) are amended as follows:

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

    1. The general authority citation for part 10 is revised, and a new 
specific authority citation for Sec. 10.184 is added, to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 22, Harmonized 
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508, 
1623, 1624, 3314.
* * * * *
    Section 10.184 is also issued under Sec. 505, Pub. L. 106-200, 
114 Stat. 251;
* * * * *

    2. A new Sec. 10.184 is added to read as follows:


Sec. 10.184  Refund of duties on certain wool imports.

    (a) General. Section 505 of Title V of Pub. L. 106-200 (114 Stat. 
251), entitled the Trade and Development Act of 2000, authorizes the 
President to refund duties paid on imports of eligible wool products. 
The statute permits eligible importing-manufacturers and, in certain 
circumstances, manufacturers who are not importers, to apply for a 
refund of duties paid on imports of eligible wool products in each of 
three succeeding years. Claimants are eligible for a refund of duties 
paid on imports of eligible

[[Page 81350]]

wool products in each of calendar years 2000, 2001 and 2002, limited to 
an amount not to exceed one-third of the duties paid on such wool 
products imported in calendar year 1999. This section sets forth the 
legal requirements and procedures that apply for purposes of obtaining 
this duty refund.
    (b) Eligible wool products. For purposes for this section, the term 
``eligible wool product'' means an imported wool product described 
under a Harmonized Tariff Schedule of the United States subheading 
listed under paragraph (c) of this section, relevant to a manufacturer 
of the particular wool products specified in paragraph (c).
    (c) Refunds authorized by section 505--(1) Worsted wool fabric. In 
calendar year 2000, a manufacturer of men's or boys' suits, suit-type 
jackets, or trousers, of imported worsted wool fabric of the kind 
described in HTSUS subheadings 5112.11.20 or 5112.19.90, and in each of 
calendar years 2001 and 2002, a manufacturer of men's or boys' suits, 
suit-type jackets, or trousers, of imported worsted wool fabric of the 
kind described in HTSUS subheadings 9902.51.11 or 9902.51.12, is 
eligible to claim a limited refund of the duties paid in such calendar 
years on entries of such fabrics that were purchased by the 
manufacturer. The amount of duties eligible to be refunded to the 
manufacturer in each of these calendar years is limited to an amount 
not to exceed one-third of the amount of duties paid on calendar year 
1999 imports of worsted wool fabrics described in HTSUS subheadings 
5112.11.20 or 5112.19.90 that were purchased by the manufacturer. A 
broker or other individual acting on behalf of the manufacturer is 
ineligible to claim a duty refund.
    (2) Wool yarn. A manufacturer of worsted wool fabric, who imports 
wool yarn of the kind described in HTSUS subheading 5107.10.00, is 
eligible to claim a limited refund of the duties paid by the 
manufacturer on entries of such wool yarn in calendar year 2000. A 
manufacturer of worsted wool fabric, who imports wool yarn of the kind 
described in HTSUS subheading 9902.51.13, is eligible to claim a 
limited refund of the duties paid by the manufacturer on entries of 
such wool yarn in each of calendar years 2001 and 2002. The amount of 
duties eligible to be refunded in each of these calendar years is 
limited to an amount not to exceed one-third of the amount of duties 
paid by the importing-manufacturer on wool yarn described in HTSUS 
subheading 5107.10.00 and imported in calendar year 1999.
    (3) Wool fiber and wool top. A manufacturer of wool yarn or wool 
fabric, who imports wool fiber or wool top of the kind described in 
HTSUS subheadings 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 
5103.20, 5104.00, 5105.21 or 5105.29, is eligible to claim a limited 
refund of the duties paid by the manufacturer on entries of such wool 
fiber or wool top in calendar year 2000. A manufacturer of wool yarn or 
wool fabric, who imports wool fiber or wool top of the kind described 
in HTSUS subheading 9902.51.14, is eligible to claim a limited refund 
of the duties paid by the manufacturer on entries of such wool fiber or 
wool top in each of calendar years 2001, and 2002. The amount of duties 
eligible to be refunded in each of these calendar years is limited to 
an amount not to exceed one-third of the amount of duties paid by the 
importing-manufacturer on wool fiber or wool top described in HTSUS 
subheadings 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 
5103.20, 5104.00, 5105.21 or 5105.29 and imported in calendar year 
1999.
    (d) Manufacturer's letter of intent to file a claim for a wool duty 
refund. A manufacturer that anticipates filing a wool duty refund claim 
in calendar years 2000, 2001, and 2002, pursuant to the terms of 
paragraph (c) of this section, must first file with Customs a letter of 
intent to that effect. A manufacturer's letter of intent must 
substantiate, to Customs satisfaction, the amount of duties paid on 
eligible wool products imported in calendar year 1999.
    (1) Documentation required where the manufacturer is the importer. 
Where a manufacturer is the importer of the eligible wool products 
imported in calendar year 1999, a letter of intent to file a wool duty 
refund claim must be signed by the manufacturer or a knowledgeable 
authorized officer or employee of the manufacturer and must state that, 
to the best of the signer's knowledge and belief, the information 
contained in the letter is accurate and truthful. The letter of intent 
must contain the following information:
    (i) A statement of the total amount of duties paid by the 
importing-manufacturer on eligible wool products imported in calendar 
year 1999;
    (ii) A list of relevant entry summary numbers, set forth as an 
attachment in either a paper or an electronic format (the latter 
submitted to Customs on diskette), that substantiates the amount set 
forth in paragraph (d)(1)(i) of this section; and
    (iii) A statement that no entry summary has been listed in 
paragraph (d)(1)(ii) of this section that did not liquidate under the 
HTSUS subheadings that provide a basis for a wool duty refund.
    (2) Documentation required where the manufacturer is not the 
importer, but the manufacturer possesses the relevant entry summary 
numbers. Where a manufacturer described in paragraph (c)(1) of this 
section is not the calendar year 1999 importer of worsted wool fabric 
of the kind described in HTSUS subheadings 5112.11.20 or 5112.19.90, 
but possesses the relevant entry summary numbers, a letter of intent to 
file a wool duty refund claim must be submitted to Customs and signed 
by the non-importing manufacturer or a knowledgeable authorized officer 
or employee of the manufacturer. The letter of intent must state that, 
to the best of the signer's knowledge and belief, the information 
contained in the letter is accurate and truthful.
    (i) The non-importing manufacturer's letter of intent must contain 
the following information:
    (A) A statement as to the identity of the importer(s) or 
supplier(s) who sold imported worsted wool fabric of the kind described 
in HTSUS subheadings 5112.11.20 or 5112.19.90 to the manufacturer;
    (B) Copies of all relevant invoices, set forth as an attachment, 
that demonstrate that the manufacturer purchased imported worsted wool 
fabric of the kind described in paragraph (d)(2)(i)(A) of this section 
from an identified importer(s) or identified supplier(s) and that 
establish, where applicable, that the identified supplier(s) purchased 
such fabric from the identified importer(s);
    (C) A completed Customs Form (CF) 5106--Importer ID Input Record, 
set forth as an attachment; and
    (D) A signed affidavit, set forth as an attachment, that contains 
the following information:
    (1) A statement that the affiant is a U.S. manufacturer of men's or 
boys' suits, suit-type jackets, or trousers, of imported worsted wool 
of the kind described in HTSUS subheadings 5112.11.20 or 5112.19.90 (in 
claim year 2000), or HTSUS subheadings 9902.51.11 or 9902.51.12 (in 
claim years 2001 and 2002);
    (2) A statement that the affiant was not the importer in calendar 
year 1999 of worsted wool fabric of the kind described in HTSUS 
subheadings 5112.11.20 or 5112.19.90;
    (3) A statement as to the quantity of imported worsted wool fabric 
of the kind described in paragraph (d)(2)(i)(D)(2) of this section that 
the affiant purchased from an identified importer(s) or from an 
identified

[[Page 81351]]

supplier(s), with copies of relevant invoices attached;
    (4) If the affiant purchased fabric of the kind described in 
paragraph (d)(2)(i)(D)(2) of this section from an identified supplier, 
a statement that the affiant has been provided with substantiating 
documentation that establishes that the subject fabric was imported by 
the identified importer; and
    (5) A statement by the affiant that the identified importer(s) has 
provided a list of relevant entry summary numbers directly to the 
affiant that substantiates the amount of duties paid in calendar year 
1999 on the fabric identified in the submitted invoices, and such 
information is set forth as an attachment; and/or
    (6) A statement by the affiant that the identified importer has 
agreed to submit a signed affidavit directly to Customs with the 
relevant entry summary numbers attached.
    (ii) A non-importing manufacturer's affidavit to substantiate the 
amount of duties paid on worsted wool fabric imported in calendar year 
1999 must be signed by the manufacturer or a knowledgeable authorized 
officer or employee of the manufacturer, and be submitted to Customs in 
the following format:

Non-Importing Manufacturer's Affidavit in Support of a Letter of 
Intent to File a Wool Duty Refund Claim (where the manufacturer 
possesses the relevant entry summary numbers for the fabric 
identified in the invoices submitted with this affidavit)

    1. The undersigned, (name of manufacturer), is a U.S. 
manufacturer of men's or boys' suits, suit-type jackets, or 
trousers, of imported worsted wool fabric of the kind described in 
HTSUS subheadings 5112.11.20 or 5112.19.90 (in claim year 2000), or 
HTSUS subheadings 9902.51.11 or 9902.51.12 (in claim years 2001 and 
2002);
    2. The undersigned was not the importer in calendar year 1999 of 
worsted wool fabric of the kind described in HTSUS subheadings 
5112.11.20 or 5112.19.90;
    3. The undersigned purchased (specify quantity) of imported 
worsted wool fabric of the kind described in item (2) above from 
(name of importer) or from a supplier (name of supplier), and copies 
of the relevant invoices are attached;
    4. Where the undersigned purchased imported worsted wool fabric 
of the kind described in item (2) above from (name of supplier), the 
undersigned has substantiating documentation that establishes that 
such fabric was imported by (name of importer);
    5(a). Attached is a list of relevant entry summary numbers, 
provided directly to the undersigned by (name of importer), that 
substantiates the amount of duties paid in calendar year 1999 on the 
fabric identified in the attached invoices; and/or
    5(b). The importer, (name of importer), has agreed to submit a 
signed affidavit directly to Customs that attests to the fact that 
the importer sold imported worsted wool fabric of the kind described 
in item (2) above to the undersigned or to identified supplier(s), 
and to attach a list of the relevant entry summary numbers that 
substantiates the amount of duties paid in calendar year 1999 on the 
fabric identified in the attached invoices; and
    6. The undersigned attests that the information set forth in 
this affidavit is true and accurate to the best of the affiant's 
knowledge and belief.

    (iii) If an importer assists in the substantiation of a non-
importing manufacturer's letter of intent by submitting relevant entry 
summary numbers directly to Customs as an attachment to a signed 
affidavit, the importer's affidavit must be signed by the importer or a 
knowledgeable officer or employee of the importer and must state that, 
to the best of the affiant's knowledge and belief, the information 
contained in the affidavit is accurate and truthful. The importer's 
signed affidavit must contain the following information:
    (A) A statement that the affiant paid duties on worsted wool fabric 
of the kind described in HTSUS subheadings 5112.11.20 or 5112.19.90, 
imported in calendar year 1999;
    (B) Identification of the claimant, or supplier to the claimant, to 
whom the affiant sold imported worsted wool fabric of the kind 
described in paragraph (d)(2)(iii)(A) of this section;
    (C) A list of relevant entry summary numbers for worsted wool 
fabric of the kind described in paragraph (d)(2)(iii)(A) of this 
section, imported in calendar year 1999, set forth as an attachment in 
either a paper or an electronic format (the latter submitted to Customs 
on diskette), that substantiates the amount of duty paid in calendar 
year 1999 on the fabric sold to the identified claimant or identified 
supplier, as evidenced by the claimant's invoices; and
    (D) A statement that the importer has not listed any entry summary 
in paragraph (d)(2)(iii)(C) of this section that did not liquidate 
under HTSUS subheadings 5112.11.20 or 5112.19.90.
    (iv) The importer's affidavit in support of a non-importing 
manufacturer's letter of intent to claim a wool duty refund must be 
signed by the importer or a knowledgeable officer or employee of the 
importer, and be submitted to Customs in the following format:

Importer's Affidavit in Support of a Non-Importing Manufacturer's 
Letter of Intent to Claim a Wool Duty Refund

    1. The undersigned, (name of importer), is an importer who paid 
duties on worsted wool fabric of the kind described in HTSUS 
subheadings 5112.11.20 or 5112.19.90, imported in calendar year 
1999;
    2. The undersigned sold worsted wool fabric of the kind 
described in item (1) above to a manufacturer identified as (name of 
manufacturer) or to a supplier(s) identified as (name of supplier);
    3. Attached is a list of relevant entry summary numbers for 
worsted wool fabric of the kind described in item (1) above that 
substantiates the amount of duties paid in calendar year 1999 on the 
fabric that was sold to (name of manufacturer) or to (name of 
supplier(s)) by the undersigned;
    4. The undersigned has not listed any entry summary in item (3) 
above that did not liquidate under HTSUS subheadings 5112.11.20 or 
5112.11.90; and
    5. The undersigned attests that the information set forth in 
this affidavit is true and accurate to the best of the affiant's 
knowledge and belief.

    (3) Documentation required where the manufacturer is not the 
importer and the manufacturer does not possess the relevant entry 
summary numbers. Where a manufacturer described in paragraph (c)(1) of 
this section is not the calendar year 1999 importer of worsted wool 
fabric of the kind described in HTSUS subheadings 5112.11.20 or 
5112.19.90, and does not possess the relevant entry summary numbers, a 
letter of intent to file a wool duty refund claim must be submitted to 
Customs and signed by the non-importing manufacturer or a knowledgeable 
authorized officer or employee of the manufacturer. The letter of 
intent must state that, to the best of the signer's knowledge and 
belief, the information contained in the letter is accurate and 
truthful.
    (i) The non-importing manufacturer's letter of intent, where the 
manufacturer does not possess the relevant entry summary numbers, must 
contain the following information:
    (A) A statement as to the identity of the importer(s) or 
supplier(s) who sold imported worsted wool fabric of the kind described 
in HTSUS subheadings 5112.11.20 or 5112.19.90 to the non-importing 
manufacturer;
    (B) Copies of all relevant calendar year 1999 invoices, set forth 
as an attachment, that demonstrate that the non-importing manufacturer 
purchased imported worsted wool fabric of the kind described in 
paragraph (d)(2)(i)(A) of this section from an identified importer(s) 
or identified supplier(s);
    (C) A statement that if the non-importing manufacturer purchased 
imported worsted wool fabric of the kind described in paragraph 
(d)(2)(i)(A) of this section from an identified supplier, the 
manufacturer has substantiating documentation that establishes that 
such fabric was imported by the identified importer;

[[Page 81352]]

    (D) A completed Customs Form (CF) 5106--Importer ID Input Record, 
set forth as an attachment; and
    (E) A signed affidavit, set forth as an attachment, that contains 
the following information:
    (1) A statement that the affiant is a U.S. manufacturer of men's or 
boys' suits, suit-type jackets, or trousers, of imported worsted wool 
of the kind described in HTSUS subheadings 5112.11.20 or 5112.19.90 (in 
claim year 2000), or HTSUS subheadings 9902.51.11 or 9902.51.12 (in 
claim years 2001 and 2002);
    (2) A statement that the affiant was not the importer in calendar 
year 1999 of worsted wool fabric of the kind described in HTSUS 
subheadings 5112.11.20 or 5112.19.90;
    (3) A statement of the quantity of imported worsted wool fabric of 
the kind described in paragraph (d)(3)(i)(D)(2) of this section that 
the affiant purchased from an identified importer(s) or from an 
identified supplier(s), with copies of the relevant invoices attached;
    (4) A statement that where the affiant purchased imported worsted 
wool fabric of the kind described in paragraph (d)(3)(i)(D)(2) of this 
section from an identified supplier, the affiant has substantiating 
documentation that establishes that such fabric was imported by the 
identified importer; and
    (5) A statement by the affiant that a good faith effort was made to 
contact the identified importer and request relevant entry summary 
numbers that substantiate the amount of duties paid in calendar year 
1999 on fabric identified in the submitted invoices, but the identified 
importer is unable or unwilling to provide such assistance.
    (ii) A non-importing manufacturer's affidavit to substantiate the 
amount of duties paid by the importer on worsted wool fabric imported 
in calendar year 1999, where no entry summary numbers are available, 
must be signed by the manufacturer or a knowledgeable authorized 
officer or employee of the manufacturer, and be submitted to Customs in 
the following format:

Non-Importing Manufacturer's Affidavit in Support of a Letter of 
Intent to File a Wool Duty Refund Claim (where the manufacturer 
does not possess the relevant entry summary numbers for the fabric 
identified in the invoices submitted with this affidavit)

    1. The undersigned, (name of manufacturer), is a U.S. 
manufacturer of men's or boys' suits, suit-type jackets, or 
trousers, of imported worsted wool fabric of the kind described in 
HTSUS subheadings 5112.11.20 or 5112.19.90 (in claim year 2000), or 
HTSUS subheadings 9902.51.11 or 9902.51.12 (in claim years 2001 and 
2002);
    2. The undersigned was not the importer in calendar year 1999 of 
worsted wool fabric of the kind described in HTSUS subheadings 
5112.11.20 or 5112.19.90;
    3. The undersigned purchased (specify quantity) of imported 
worsted wool fabric of the kind described in item (2) above from 
(name of importer) or from a supplier (name of supplier), and copies 
of relevant invoices are attached;
    4. If the undersigned has purchased imported worsted wool fabric 
of the kind described in item (2) above from (name of supplier), the 
undersigned has substantiating documentation that establishes that 
such fabric was imported by (name of importer);
    5. The undersigned attests that a good faith effort was made to 
contact the identified importer(s) and request that relevant entry 
summary numbers be provided to either the undersigned or directly to 
Customs that substantiate the amount of duties paid in calendar year 
1999 on fabric identified in the submitted invoices, but the 
identified importer is unable or unwilling to provide such 
assistance;
    6. The undersigned attests that the information set forth in 
this affidavit is true and accurate to the best of the affiant's 
knowledge and belief.

    (4) Documentation required where the manufacturer is both an 
importer and a purchaser of eligible worsted wool fabric. Where a 
manufacturer described in paragraph (c)(1) of this section is both an 
importer and a purchaser of eligible worsted wool fabric, the 
manufacturer must submit to Customs a letter of intent to file a wool 
duty refund claim that is signed by the manufacturer or a knowledgeable 
authorized officer or employee of the manufacturer. The letter of 
intent must state that, to the best of the signer's knowledge and 
belief, the information contained in the letter is accurate and 
truthful.
    (i) With respect to fabric where the manufacturer is the importer, 
the letter of intent must contain the information described in 
paragraph (d)(1) of this section.
    (ii) With respect to such fabric where the manufacturer is not the 
importer, but the manufacturer possesses the relevant entry summary 
numbers, the letter of intent must contain the information described in 
paragraph (d)(2) of this section and the relevant entry summary numbers 
may be submitted directly to Customs by the manufacturer and/or the 
importer(s).
    (iii) With respect to such fabric where the manufacturer is not the 
importer, and the manufacturer does not possess the relevant entry 
summary numbers, the letter of intent must contain the information 
described in paragraph (d)(3) of this section.
    (5) Documentation required where a prospective claimant is the 
legal assignee of an eligible manufacturer's potential wool duty refund 
rights. To file a letter of intent where the prospective claimant is 
the legal assignee of any potential wool duty refund claim rights 
attributable to an eligible manufacturer described in paragraph (c) of 
this section, the facts of such legal assignation, and the identity of 
all affected parties, must be submitted to Customs in a written 
attachment to the letter of intent, and additional substantiating 
documentation must be available to Custom upon request. Only those 
assignees that substantiate, to Customs satisfaction, the terms and 
legality of the assignation will be eligible to claim a wool duty 
refund.
    (6) Time to file a letter of intent. A manufacturer's letter of 
intent to file a wool duty refund claim, including all attachments and, 
where applicable, the importer's signed affidavit in support of the 
manufacturer's letter of intent, must be received by Customs no later 
than March 31, 2001, unless this date is extended upon due notice in 
the Federal Register.
    (7) Place to file a letter of intent. A manufacturer's letter of 
intent to file a wool duty refund claim, including all attachments and, 
where applicable, the importer's signed affidavit in support of the 
manufacturer's letter of intent, must be submitted to: U.S. Customs 
Service, Wool Refund Claim, Residual Liquidation and Protest Branch, 
Rm. 761, 6 World Trade Center, New York, N.Y. 10048-0945.
    (e) Customs verification letter. Customs will issue to a 
prospective claimant a written verification letter within 30 calendar 
days from the date Customs receives a timely and complete letter of 
intent that relies solely on relevant entry summary numbers to 
substantiate, to Customs satisfaction, the amount of duties paid on 
eligible wool products imported in calendar year 1999. Where a 
prospective claimant submits a letter of intent that relies on 
invoices, in whole or in part, to substantiate, to Customs 
satisfaction, the amount of duties paid on eligible wool products 
imported in calendar year 1999, Customs will issue a verification 
letter to such prospective claimant within 30 calendar days after the 
date all letters of intent must be received by Customs, as set forth in 
paragraph (d)(5) of this section. The amount of potential duty refund 
will be based on the quantity of eligible wool products that was 
imported by the prospective claimant or, where the prospective claimant 
was not the importer, purchased by the prospective claimant (as 
indicated by submitted invoices). If entry summary numbers are used to 
substantiate the amount of duties paid

[[Page 81353]]

on eligible wool products in calendar year 1999, the potential refund 
amount will be limited to the amount of duties paid on such entry 
summaries that is attributable to that quantity of eligible wool 
products. If invoices are used to substantiate the amount of duties 
paid on worsted wool fabrics in calendar year 1999, the amount of 
duties will be determined by deducting 10 percent from the invoice 
amounts, dividing the resulting adjusted invoice amounts by 100% plus 
the duty rate (30.6%) to back out the duty, and then multiplying that 
amount times the duty rate (30.6%). If the aggregate amount of duties 
attributable to an importer exceeds the amount of duties paid by that 
importer in calendar year 1999, as indicated by ACS, an adjustment will 
be made to those claimants requiring use of the invoice formula. The 
percentage deducted from the invoice amounts for those claimants will 
be increased on a pro rata basis to ensure that the aggregate amount to 
be refunded does not exceed the ACS amount. Refund amounts 
substantiated by entry summary numbers will not be reduced. A letter of 
verification will set forth the following information:
    (1) The prospective claimant's claim identification number;
    (2) The maximum amount of wool duty refund that the individual 
prospective claimant will be eligible to receive in each of calendar 
years 2000, 2001, and 2002; and
    (3) Where invoices are used to substantiate the amount of duties 
paid on worsted wool fabric in calendar year 1999, the percentage that 
was deducted from the invoice amounts, with accompanying explanation.
    (f) Eligibility criteria to claim a duty refund in calendar years 
2000, 2001, and 2002. To be eligible to claim a refund of duties paid 
on imports of certain wool products in calendar years 2000, 2001, and 
2002, a claimant must be in receipt of a claim verification letter from 
Customs. Additionally, a claimant must be:
    (1) In calendar year 2000, a U.S. manufacturer of men's or boys' 
suits, suit-type jackets, or trousers, of imported worsted wool fabric 
of the kind described in HTSUS subheadings 5112.11.20 or 5112.19.90, 
for which duties were paid in that year;
    (2) In calendar years 2001 and 2002, a U.S. manufacturer of men's 
or boys' suits, suit-type jackets, or trousers, of imported worsted 
wool fabric of the kind described in HTSUS subheadings 9902.51.11 or 
9902.51.12, for which duties were paid in those years;
    (3) In calendar year 2000, a U.S. manufacturer of worsted wool 
fabric who paid duties in that year on imported wool yarn of the kind 
described in HTSUS subheading 5107.10.00;
    (4) In calendar years 2001 and 2002, a U.S. manufacturer of worsted 
wool fabric who paid duties in those years on imported wool yarn of the 
kind described in HTSUS subheading 9902.51.13;
    (5) In calendar year 2000, a U.S. manufacturer of wool yarn or wool 
fabric who paid duties in that year on imported wool fiber or wool top 
of the kind described in HTSUS subheadings 5101.11, 5101.19, 5101.21, 
5101.29, 5101.30, 5103.10, 5103.20, 5104.00, 5105.21 or 5105.29;
    (6) In calendar years 2001 and 2002, a U.S. manufacturer of wool 
yarn or wool fabric who paid duties in those years on imported wool 
fiber or wool top of the kind described in HTSUS subheading 9902.51.14; 
or
    (7) A legal assignee of the existing wool duty refund claim rights 
of an eligible manufacturer described in paragraphs (f)(1), (f)(2), 
(f)(3), (f)(4), (f)(5) or (f)(6) of this section.
    (g) Procedures for filing a claim--(1) Time to file. An eligible 
claimant may file with Customs one wool duty refund claim for each of 
calendar claim years 2000, 2001 and 2002, including, where applicable, 
related amended claims. A claim may be amended within 90 calendar days 
from the date of the original submission or, if Customs has notified 
the claimant in writing that the claim is insufficient to support the 
claim as requested or is otherwise defective (e.g., a claim that relies 
on an entry summary that is ineligible for a wool duty refund, as 
provided for in Sec. 10.184(j)), within 90 calendar days from the date 
of the Customs notification. All claims for a wool duty refund, whether 
original or amended in the absence of a Customs notification of 
insufficiency or defect, must be received by Customs no later than 
December 31 of the year following the calendar claim year for which a 
wool duty refund is being sought. An amended claim made in response to 
a Customs notification of insufficiency or defect may be submitted to 
Customs after the December 31 deadline applicable to all other claim 
submissions. A claimant may file two separate duty refund claims in a 
single calendar year, so long as the claims are for two different claim 
years.
    (2) Place to file. A claim for a refund of duties paid on imports 
of eligible wool products must be submitted to: U.S. Customs Service, 
Wool Refund Claim, Residual Liquidation and Protest Branch, Rm. 761, 6 
World Trade Center, New York, N.Y. 10048-0945.
    (3) Documentation. (i) Where the manufacturer is the importer. To 
file a wool duty refund claim, an importing-manufacturer must provide 
Customs with a copy of the verification letter the claimant received 
from Customs and an affidavit, signed by the manufacturer or a 
knowledgeable officer or employee of the manufacturer, that contains 
the following information:
    (A) A statement that the affiant is a U.S. manufacturer of the kind 
described in either paragraphs (f)(1), (f)(2), (f)(3), (f)(4), (f)(5) 
or (f)(6) of this section, in the current calendar claim year;
    (B) A statement of the total amount of duties paid by the affiant 
in that year on eligible wool products;
    (C) The total amount of duty refund being claimed;
    (D) A list of relevant entry summary numbers, set forth as an 
attachment and submitted to Customs in either a paper or an electronic 
format (the latter on diskette), that substantiates the amount of 
duties for which a refund is being claimed in paragraph (g)(3)(i)(C) of 
this section, and does not exceed the affiant's share of duties 
eligible to be refunded as set forth in the attached verification 
letter;
    (E) A statement that no entry summary has been listed in paragraph 
(g)(3)(i)(D) of this section that has already had 99% or more of the 
amount of duties paid on that entry refunded pursuant to any refund 
claim authorized by law; and
    (F) A statement that identifies, if applicable, any entry summary 
listed in paragraph (g)(3)(i)(D) of this section that is, or may 
become, subject to an outstanding drawback claim, protest, or any other 
refund claim authorized by law.
    (ii) Form of affidavit. An importing-manufacturer's signed 
affidavit to substantiate a wool duty refund claim in calendar years 
2000, 2001, or 2002 must be signed by the manufacturer, or a 
knowledgeable officer or employee of the manufacturer, and submitted to 
Customs in the following format:

Importing-Manufacturer's Affidavit in Support of a Claim for a Wool 
Duty Refund Under Section 505 of the Trade and Development Act of 
2000, for Calendar Year-

    1. The undersigned, (name of manufacturer), is a U.S. 
manufacturer of the kind described in either paragraphs (f)(1) [__], 
(f)(2) [__], (f)(3) [__], (f)(4) [__], (f)(5) [__], or (f)(6) [__] 
[check one] of Sec. 10.184 of the Customs Regulations (19 CFR 
10.184(f)), in the current calendar claim year;
    2. The undersigned paid (total amount of duties paid) in 
calendar year ________ on eligible wool products;

[[Page 81354]]

    3. The amount of wool duty refund being claimed is $____;
    4. Attached is a list of the relevant current claim year entry 
summary numbers that substantiate the amount of duty refund being 
claimed in item (3) above;
    5. The undersigned has not listed any entry summary in item (4) 
above that has had 99% or more of the amount of duties paid on that 
entry refunded pursuant to any refund claim authorized by law;
    6. The undersigned will list any entry summary in item (4) above 
that is, or may become, subject to an outstanding drawback claim, 
protest, or any other refund claim authorized by law; and
    7. The undersigned attests that the information set forth in 
this affidavit is true and accurate to the best of the affiant's 
knowledge and belief.

    (iii) Where the manufacturer is not the importer. To file a wool 
duty refund claim a manufacturer of men's or boys' suits, suit-type 
jackets, or trousers, of imported worsted wool fabric of the kind 
described in HSTUS subheadings 5112.11.20, 5112.19.90, 9902.51.11 or 
9902.51.12, who is a purchaser but not the importer of such fabric, 
must provide Customs with a copy of the verification letter the 
claimant received from Customs and an affidavit signed by the 
manufacturer, or a knowledgeable officer or employee of the 
manufacturer, that contains the following information:
    (A) A statement that in calendar claim year 2000, the affiant is a 
U.S. manufacturer of men's or boys' suits, suit-type jackets, or 
trousers, of imported worsted wool fabric of the kind described in 
HTSUS subheadings 5112.11.20 or 5112.19.90, or, a statement that in 
calendar claim years 2001 and 2002, the affiant is a U.S. manufacturer 
of men's or boys' suits, suit-type jackets, or trousers, of imported 
worsted wool fabric of the kind described in HTSUS subheadings 
9902.51.11 or 9902.51.12 in calendar claim years 2001 and 2002;
    (B) A statement that the affiant is not the importer in the current 
calendar year of imported worsted wool fabric of the kind described in 
paragraph (A) above;
    (C) A statement as to the quantity of imported worsted wool fabric 
of the kind described in paragraph (A) above that the affiant purchased 
from an identified importer(s) or from an identified supplier(s), with 
copies of relevant invoices attached;
    (D) A statement that where the affiant purchased imported worsted 
wool fabric of the kind described in paragraph (A) above from an 
identified supplier(s), the affiant has substantiating documentation 
that establishes that such fabric was imported by the identified 
importer(s); and
    (E) A statement by the affiant that the identified importer(s) has 
provided a list of relevant entry summary numbers directly to the 
affiant that substantiates the amount of duties paid in the current 
calendar claim year on the fabric identified in the submitted invoices, 
and such information is set forth as an attachment; and/or
    (F) A statement by the affiant that the identified importer(s) has 
agreed to submit a signed affidavit directly to Customs with the 
relevant entry summary numbers attached, that substantiates the amount 
of duties paid in the current calendar claim year on the fabric 
identified in the submitted invoices.
    (iv) Form of affidavit. A manufacturer who is not the importer of 
the imported worsted wool fabric must submit to Customs an affidavit to 
substantiate a wool duty refund claim in calendar years 2000, 2001, or 
2002, signed by the manufacturer or a knowledgeable officer or employee 
of the manufacturer, in the following format:

Non-Importing Manufacturer's Affidavit in Support of a Claim for a 
Duty Refund Under Section 505 of the Trade and Development Act of 
2000, for Calendar Year

    1. The undersigned, (name of manufacturer), is a U.S. 
manufacturer in calendar year ____ of men's or boys' suits, suit-
type jackets, or trousers, of imported worsted wool fabric of the 
kind described in HTSUS subheadings 5112.11.20 or 5112.19.90 (in 
claim year 2000), or HTSUS subheadings 9902.51.11 or 9902.51.12 (in 
claim years 2001 and 2001);
    2. The undersigned was not the importer of imported worsted wool 
fabric of the kind described in item (1) above;
    3. The undersigned purchased (specify quantity) of imported 
worsted wool fabric of the kind described in item (1) above from 
(name of importer(s)) or from a supplier(s), and the relevant 
invoices are attached;
    4. Where the undersigned purchased imported worsted wool fabric 
of the kind described in item (1) above from (name of supplier), the 
undersigned has substantiating documentation that establishes that 
such fabric was imported by (name of importer);
    5(a). Attached is a list of relevant entry summary numbers, 
provided directly to the undersigned by (name of importer), that 
substantiates the amount of duties paid in the current calendar 
claim year on the fabric identified in the attached invoices; and/or
    5(b). The importer, (name of importer), has agreed to submit a 
signed affidavit directly to Customs that attests to the fact that 
the importer sold imported worsted wool fabric of the kind described 
in item (1) above to the undersigned or to (name of supplier), and 
has agreed to attach a list of the relevant entry summary numbers 
that substantiates the amount of duties paid in the current calendar 
claim year on the fabric identified in the attached invoices; and
    6. The undersigned attests that the information set forth in 
this affidavit is true and accurate to the best of the affiant's 
knowledge and belief.

    (v) Required content of an importer's signed affidavit in support 
of a manufacturer's wool duty refund claim. Where an importer chooses 
to assist in the substantiation of a non-importing manufacturer's wool 
duty refund claim by submitting relevant entry summary numbers directly 
to Customs, such entry information must be set forth as an attachment 
to an affidavit that is signed by the importer or by a knowledgeable 
officer or employee of the importer, and must contain the following 
information:
    (A) A statement as the total amount of duties that the importer 
paid in the current calendar claim year on worsted wool fabric of the 
kind described in paragraph (g)(3)(iii) of this section;
    (B) A statement that the importer sold worsted wool fabric of the 
kind described in paragraph (g)(3)(iii) of this section, to the 
identified manufacturer or to the identified supplier(s);
    (C) A list of relevant entry summary numbers for the worsted wool 
fabric of the kind described in paragraph (g)(3)(iii) of this section, 
set forth as an attachment in either a paper or an electronic format 
(the latter submitted to Customs on diskette), that substantiates the 
amount of duties paid during the current calendar claim year on such 
fabric that was sold by the importer to the identified manufacturer or 
to the identified supplier(s);
    (D) A statement that no entry summary number has been listed in 
paragraph (g)(3)(v)(C) of this section that has already had 99% or more 
of the amount of duties paid on that entry refunded pursuant to any 
refund claim authorized by law; and
    (E) A statement that lists any entry summary number in paragraph 
(g)(3)(v)(C) of this section that is, or may become, subject to an 
outstanding drawback claim, protest, or any other refund claim 
authorized by law.
    (vi) Form of affidavit. The importer's affidavit in support of 
manufacturer's wool duty refund claim must be signed by the importer or 
by a knowledgeable officer or employee of the importer, and be 
submitted to Customs in the following format:

Importer's Affidavit in Support of a Non-Importing Manufacturer's 
Claim for a Duty Refund Under Section 505 of the Trade and 
Development Act of 2000, for Calendar Year

    1. The undersigned, (name of importer), is an importer who 
[check one] paid duties in calendar year 2000 [__] on worsted wool 
fabric of the kind described in HTSUS subheadings 5112.11.20 or 
5112.19.90, or who paid duties in calendar year 2001 [__] or 
calendar year 2002 [__] on worsted wool

[[Page 81355]]

fabric of the kind described in HTSUS subheadings 9902.51.11 or 
9902.51.12;
    2. The undersigned sold worsted wool fabric of the kind 
described in item (1) above to a manufacturer identified as (name of 
manufacturer) or to a supplier(s) identified as (name of supplier);
    3. Attached is a list of relevant entry summary numbers for 
worsted wool fabric of the kind described in item (1) above that 
substantiates the amount of duties paid in the current calendar 
claim year on such fabric that was sold by the undersigned to (name 
of manufacturer) or to an identified supplier(s) (name of supplier);
    4. The undersigned has not listed any entry summary in item (3) 
above that has had 99% or more of the amount of duties paid on that 
entry refunded pursuant to any refund claim authorized by law;
    5. The undersigned will list any entry summary in item (3) above 
that is, or may become, subject to an outstanding drawback claim, 
protest, or any other refund claim authorized by law; and
    6. The undersigned attests that the information set forth in 
this affidavit is true and accurate to the best of the affiant's 
knowledge and belief.

    (vii) Documentation required where the manufacturer is both an 
importer and a purchaser of eligible worsted wool fabric. Where a 
manufacturer described in paragraph (c)(1) of this section is both an 
importer and a purchaser of eligible worsted wool fabric, the 
manufacturer must provide Customs with both the documentation described 
in paragraphs (g)(3)(i) and (g)(3)(ii) of this section, and the 
documentation described in paragraphs (g)(3)(iii) and (g)(3)(iv) of 
this section.
    (viii) Documentation required where the claimant is the legal 
assignee of an eligible manufacturer's wool duty refund claim rights. 
To file a wool duty refund claim where the claimant is the legal 
assignee of the existing wool duty refund claim rights of an eligible 
manufacturer described in paragraphs (f)(1), (f)(2), (f)(3), (f)(4), 
(f)(5) or (f)(6) of this section, the facts of such legal assignation, 
and the identity of all affected parties, must be submitted to Customs 
in a written attachment to the claim, and additional substantiating 
documentation must be available to Customs upon request. Only those 
assignees that substantiate, to Customs satisfaction, the terms and 
legality of the assignation will be eligible to claim a wool duty 
refund duty refund.
    (h) Wool duty refund claim processing procedures. Upon receipt of a 
timely and complete wool duty refund claim filed pursuant to the terms 
of this section, Customs will determine the liquidation status of the 
entry summaries used to substantiate the claim. No duty refund will be 
issued to a claimant until all the entry summaries identified for 
purposes of substantiating the claim have been finally liquidated and 
the applicable amendment period, as set forth in paragraph (g)(1) of 
this section has expired or the claimant has submitted to Customs a 
signed waiver of amendment.
    (i) Denial of a wool duty refund claim. Customs may deny a wool 
duty refund claim if the claim was not timely filed, if the claimant is 
not eligible pursuant to the terms of this section, or if the claimant 
has not complied with the requirements of this section. Customs will 
provide the claimant with written notice of the denial of the claim, 
including the reason for the denial.
    (j) Multiple refund claims and pending judicial review--(1) 
Allowance or denial of subsequent claims. If an entry has been used to 
provide the basis for a duty refund claim pursuant to this section, and 
the entire amount of duties paid on that entry was refunded to the 
claimant, a claim for drawback, or any other refund claim authorized by 
law, that is based on that entry, will be denied by Customs. If an 
entry has been used to substantiate a claim for a duty refund under 
this section, and an amount in duties paid on that entry has not been 
refunded, the remaining amount may be eligible for subsequent duty 
refund claims under this section, drawback, or any other refund claim 
authorized by law.
    An entry that has already had 99% or more of the duties paid on 
that entry refunded by way of a drawback claim, protest, or any other 
claim authorized by law, may not be used to provide the basis for a 
wool duty refund claim.
    (2) Substitution of entry summary numbers. If a duty refund claim 
under this section has not yet been processed by Customs, an importer 
may substitute an entry summary that has already been identified to 
Customs for purposes of substantiating the claim with another 
comparable entry summary, so long as the amount of duty paid in 
connection with the replacement entry is not less than the duty paid on 
the entry that was identified to Customs originally.
    (3) Pending judicial review. If a summons involving the tariff 
classification or the dutiability of an imported wool product has been 
filed in the Court of International Trade, Customs will deem any entry 
summary at issue in that judicial proceeding ineligible to substantiate 
a duty refund claim.
    (k) Penalties and liquidated damages. A wool duty refund claimant's 
failure to comply with any of the procedural requirements set forth in 
this document, or failure to adhere to all applicable laws and 
regulations, may subject the claimant to penalties, liquidated damages 
or other administrative sanctions.

PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS

    1. The authority citation for part 178 continues to read as 
follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 1624; 44 U.S.C. 3501 et seq.


    2. Section 178.2 is amended by adding a new listing to the table in 
numerical order to read as follows:


Sec. 178.2  Listing of OMB control numbers.

------------------------------------------------------------------------
        19 CFR Section               Description        OMB Control No.
------------------------------------------------------------------------
 
      *                   *                   *                   *
                                       *
Sec.  10.184..................  Refund of duties on            1515-0227
                                 certain wool
                                 imports..
 
      *                   *                   *                   *
                                       *
------------------------------------------------------------------------



[[Page 81356]]

Raymond W. Kelly,
Commissioner of Customs.
    Approved: December 20, 2000.

Timothy E. Skud,
Acting Deputy Assistant Secretary of the Treasury

[FR Doc. 00-32836 Filed 12-20-00; 3:09 pm]
BILLING CODE 4820-02-P