[Federal Register Volume 66, Number 78 (Monday, April 23, 2001)]
[Rules and Regulations]
[Pages 20392-20401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10004]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 10

[T.D. 01-33]
RIN 1515-AC85


Amendment to Wool Duty Refund Program

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

ACTION: Interim rule; solicitation of comments.

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SUMMARY: This document amends the Customs Regulations on an interim 
basis regarding the refund of duties paid on imports of certain wool 
products pursuant to section 505 of the Trade and Development Act of 
2000. Principally, this document amends the final rule published in the 
Federal Register on December 26, 2000, regarding the description of the 
types of wool products that are eligible to provide the basis for a 
wool duty refund for claim year 2000. This interim rule is necessary to 
accurately reflect the scope of section 505. This document also sets 
forth the tariff provisions that eligible wool products must be entered 
under in each of claim years 2000, 2001 and 2002 to substantiate a duty 
refund. These amendments reflect changes to the Harmonized Tariff 
Schedule by the Annex to Presidential Proclamation 7383. Other 
amendments involve non-

[[Page 20393]]

substantive editorial changes and the correction of typographical 
errors. Due to the changes to the final rule, Customs is reopening the 
time period within which to file an original or amended letter of 
intent to file a wool duty refund claim.

DATES: This interim rule is effective April 23, 2001. Letters of intent 
to file a wool duty refund claim, whether original or amended, must be 
received by Customs no later than May 8, 2001. Comments must be 
received on or before June 22, 2001.

ADDRESSES: Written comments (preferably in triplicate) should be 
submitted to and inspected at the Regulations Branch, Office of 
Regulations and Rulings, U.S. Customs Service, 1300 Pennsylvania 
Avenue, N.W., 3rd Floor, Washington, D.C. 20229.

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 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 December 26, 2000, Customs published in the Federal Register (65 
FR 81344), as T.D. 01-01, the final rule setting forth the eligibility, 
documentation and procedural requirements regarding Customs issuance of 
refunds of the duties paid on imports of certain wool products. The 
final regulation was added to the Customs Regulations at Sec. 10.184 
(19 CFR 10.184), effective January 25, 2001.
    Since the publication of T.D. 01-01, it has come to Customs 
attention that certain tariff subheadings identified in Sec. 10.184 of 
the Customs Regulations (19 CFR 10.184) do not accurately reflect the 
scope of section 505 in regard to the wool products that may 
substantiate a duty refund for claim year 2000. This document amends 
these regulatory provisions so as to conform to the terms of the 
statute.
    This document also amends Sec. 10.184 to reflect the new tariff 
provisions for certain worsted wool fabrics and wool yarns added to the 
Harmonized Tariff Schedule of the United States (HTSUS) by the Annex to 
Presidential Proclamation 7383, published in the Federal Register on 
December 6, 2000 (65 FR 76551), effective with respect to goods 
entered, or withdrawn from warehouse for consumption, on or after 
January 1, 2001. These new HTSUS tariff provisions affect the 
administration of the wool duty refund program in that they provide the 
basis for a wool duty refund for claim years 2001 and 2002, and replace 
certain HTSUS subheadings identified in the tariff provisions created 
in sections 501 and 502 that provide the basis for a wool duty refund 
for claim year 2000.
    Additionally, this document corrects several typographical errors 
and makes non-substantive editorial changes to Sec. 10.184.
    The amendments, corrections and editorial changes are described 
below.

Scope of Section 505 in Regard to the Wool Products That Are Eligible 
to Provide the Basis for a Wool Duty Refund

    Section 505 provides that wool products ``of the kind'' described 
in HTSUS subheadings 9902.51.11, 9902.51.12, 9902.51.13 or 9902.51.14 
are eligible to provide the basis for a wool duty refund for claim 
years 2000, 2001 and 2002. These 9902 subheadings were created in 
sections 501 and 502, and were added to the HTSUS on January 1, 2001.
    In Sec. 10.184, paragraphs (c), (d), (f) and (g) provide that 
certain wool products ``of the kind'' described in the chapter 51, 
HTSUS, tariff provisions cited in the 9902, HTSUS, subheadings created 
in sections 501 and 502, may be used to substantiate a wool duty refund 
for claim year 2000. For claim years 2001 and 2002, the current 
regulations correctly reference wool products ``of the kind'' described 
in the 9902, HTSUS, subheadings created in sections 501 and 502. For 
claim year 2000, however, the current regulations do not accurately 
reflect the scope of section 505 in that the chapter 51, HTSUS, tariff 
provisions referenced therein are broader than the 9902, HTSUS, 
subheadings because the latter are subject to additional statutory 
conditions. In this regard, it is noted that the heading texts to HTSUS 
provisions 5112.11.20 and 5112.19.90 do not contain the statutory 
condition that the wool fabrics must be ``certified by the importer as 
suitable for use in making suits, suit-type jackets, or trousers,'' as 
is found in the heading texts to 9902.51.11 and 9902.51.12. Also, the 
heading texts to HTSUS provisions 5107.10.00 (wool yarn) and 5101.11, 
5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 5104.00, 5105.21 
and 5105.29 (wool fiber and top) do not contain limiting micron 
criteria, as do the heading texts to 9902.51.13 and 9902.51.14.
    For this reason, paragraphs (c), (d), (f) and (g) in Sec. 10.184 
are amended to accurately reflect the scope of section 505 by providing 
that wool products of the kind described in HTSUS subheadings 
9902.51.11, 9902.51.12, 9902.51.13 and 9902.51.14 provide the basis for 
a wool duty refund for claim years 2000, 2001 and 2002.
    It should be noted that section 505 does not require that eligible 
wool products be entered under these 9902, HTSUS, subheadings. Customs 
is of the view that use of the statutory construction ``of the kind'' 
in section 505(a), (b) and (c) reflects Congress' intent to permit wool 
products entered under the chapter 51, HTSUS, subheadings identified in 
the tariff provisions created in sections 501 and 502 to be used to 
substantiate a wool duty refund claim for all three claim years, so 
long as the products entered under these chapter 51 tariff provisions 
are ``of the kind'' described in the relevant 9902, HTSUS, subheadings 
set forth in section 505. The fact that the relevant 9902, HTSUS, 
subheadings were not in effect in the tariff schedule until January 1, 
2001, supports the view that Congress could not have intended to 
require entry under these tariff provisions.

Amendments To Conform Sec. 10.184 to Section 505

    To reflect the scope of section 505 in regard to the types of wool 
products that are eligible to provide the basis for a wool duty refund 
claim, the following amendments are required to the regulatory text:
    (1) Within Sec. 10.184, paragraphs (c)(1), (c)(2) and (c)(3) are 
amended to reflect that for all three claim years section 505 
authorizes limited refunds of the duties paid on entries of wool 
products of the kind described in HTSUS subheadings 9902.51.11, 
9902.51.12, 9902.51.13 or 9902.51.14; and
    (2) Within Sec. 10.184, the following paragraphs are amended to 
reflect that the referenced wool products must be ``of the kind'' 
described in HTSUS subheadings 9902.51.11, 9902.51.12, 9902.51.13 or 
9902.51.14: (d)(2)(i)(D)(1); (d)(2)(ii) (affidavit item 1); 
(d)(3)(i)(E)(1); (d)(3)(ii) (affidavit item 1); (f); (g)(3)(iii); 
(g)(3)(iii)(A); (g)(3)(iv) (affidavit item 1); and (g)(3)(vi) 
(affidavit item 1).

[[Page 20394]]

Amendments to Sec. 10.184 To Reflect Additions to the HTSUS Effected by 
the Annex to Presidential Proclamation 7383

    The Annex to Presidential Proclamation 7383 provides for the 
following HTSUS subheading substitutions, effective on or after January 
1, 2001:
     5112.11.20 is replaced by subheadings 5112.11.30 and 
5112.11.60;
     5112.19.90 is replaced by subheadings 5112.19.60 and 
5112.19.95; and
     5107.10.00 is replaced by subheading 5107.10.30.
    Because of these substitutions, it is necessary to clarify which 
chapter 51, HTSUS, tariff provisions may provide the basis for a wool 
duty refund for each claim year. To that end, it is noted that the 
chapter 51, HTSUS, subheadings cited in the heading text to HTSUS 
subheading 9902.51.14 were not replaced by the Annex, and remain 
eligible to provide the basis for a wool duty refund for claim years 
2000, 2001 and 2002. Those tariff provisions that were replaced in the 
HTSUS by the Annex are only eligible to provide the basis for a wool 
duty refund claim for claim year 2000. The new tariff provisions added 
to the HTSUS by the Annex that replace the chapter 51 subheadings 
identified in the heading texts to the chapter 99, HTSUS, tariff 
provisions created in sections 501 and 502 are eligible to provide the 
basis for a wool duty refund claim for claim years 2001 and 2002. The 
9902, HTSUS, subheadings identified in section 505 are eligible to 
provide the basis for a wool duty refund for claims years 2001 and 
2002.
    Accordingly, to reflect the language of Presidential Proclamation 
7383, within Sec. 10.184, paragraphs (f), (g)(3)(iii)(E) and (F), and 
(g)(3)(iv) (affidavit items 5(a) and 5(b)) are amended to reflect the 
additions to the HTSUS implemented by the proclamation and to specify 
the chapter 51 HTSUS subheadings that are eligible to substantiate a 
wool duty refund claim for each claim year.

Clarifications to Sec. 10.184

    To enhance the clarity of the final regulation, the following 
amendments are made to the regulatory text:
    (1) Within Sec. 10.184, paragraphs (c)(1), (c)(2) and (c)(3) are 
amended to include the tariff heading texts for the 9902 HTSUS 
subheadings cited in section 505;
    (2) Within Sec. 10.184, paragraphs (c)(1), (c)(2) and (c)(3) are 
amended to include the chapter 51, HTSUS, subheadings under which 
eligible wool products must be entered in calendar year 1999;
    (3) Within Sec. 10.184, paragraphs (c)(1), (c)(2) and (c)(3) are 
amended by adding the adjective ``U.S.'' before the word 
``manufacturer'' in the first sentence of each of these provisions;
    (4) Within Sec. 10.184, paragraph (c)(1) is amended by adding the 
term ``imported or'' before the word ``purchased'' at the end of the 
first sentence;
    (5) Within Sec. 10.184, paragraphs (c)(2) and (c)(3) are amended by 
adding the term ``to the manufacturer'' after the word ``refunded'' in 
the second sentence of each provision;
    (6) Within Sec. 10.184, the following paragraphs are amended to 
clarify under which HTSUS tariff provisions eligible wool products must 
be entered in specific calendar years for purposes of substantiating a 
wool duty refund claim: (d)(2); (d)(2)(i)(A); (d)(2)(i)(D)(2); 
(d)(2)(i)(D)(5); (d)(2)(ii) (affidavit item 2); (d)(2)(ii) (affidavit 
item 5(a)); (d)(2)(iii)(A); (d)(2)(iv) (affidavit item 1); (d)(3); 
(d)(3)(i)(A); (d)(3)(i)(E)(2); (d)(3)(ii) (affidavit item 2); and 
(d)(3)(ii) (affidavit item 5); (f); (g)(3)(iii)(E) and (F); (g)(3)(iv) 
(affidavit items 5(a) and 5(b));
    (7) Within Sec. 10.184, the following paragraphs are amended to 
clarify that the term ``fabric'' referenced therein is worsted wool 
fabric of the kind described in HTSUS subheadings 9902.51.11 or 
9902.51.12 and, where appropriate, to clarify that such fabric may be 
entered under HTSUS subheadings 5112.11.20, 5112.19.90, 5112.11.30, 
5112.11.60, 5112.19.60 or 5112.19.95 in specific calendar claim years: 
(f); (g)(3)(iii)(E) and (F); and (g)(3)(iv) (affidavit items 5(a) and 
5(b));
    (8) Within Sec. 10.184, the following paragraphs are amended by 
removing the word ``attests'' and adding the word ``certifies'' in its 
place to clarify that the affidavit serves as the claimant's 
certification, for purposes of this section, that the subject worsted 
wool fabric has an average fiber diameter of a particular micron and 
that the fabric is suitable for use in making men's or boys' suits, 
suit-type jackets, or trousers: (d)(2)(ii) (affidavit item 6); 
(d)(2)(iv) (affidavit item 5); (d)(3)(ii) (affidavit item 6); 
(g)(3)(ii) (affidavit item 7); (g)(3)(iv) (affidavit item 6); and 
(g)(3)(vi) (affidavit item 6);
    (9) Within Sec. 10.184, paragraph (d)(2)(iii)(C) is amended by 
inserting the word ``such'' before the word ``fabric'' in the tenth 
line of the paragraph to clarify that the referenced fabric is worsted 
wool fabric of the kind described in (d)(2)(iii)(A) as corrected. The 
same amendment is made to paragraph (d)(2)(iv) (affidavit item 3);
    (10) Within Sec. 10.184, the last sentence in paragraph (d)(4), and 
paragraphs (d)(4)(i), (ii) and (iii), require rewording to clarify and 
simplify the regulatory text describing the required content of a 
letter of intent where the manufacturer is both an importer and a 
purchaser of eligible worsted wool fabric;
    (11) Within Sec. 10.184, the following paragraphs are amended to 
clarify that the relevant time frame is not a specific claim year or 
the ``current calendar year'', but rather ``the calendar year for which 
a duty refund is sought'': (g)(3)(i)(A); (g)(3)(ii) (affidavit item 1); 
(g)(3)(iii)(A), (B), (E) and (F); (g)(3)(iv) (affidavit items 2, 5(a) 
and 5(b)); (g)(3)(v)(A) and (C); and (g)(3)(vi) (affidavit item 3);
    (12) Within Sec. 10.184, the following paragraphs are amended to 
clarify that the referenced eligible wool products need to have been 
imported in calendar year 1999, but the duties need not have been paid 
in calendar year 1999: (d)(2)(i)(D)(5); (d)(2)(ii) (affidavit items 
5(a) and 5(b)); (d)(2)(iii)(C); (d)(2)(iv) (affidavit item 3); 
(d)(3)(i)(E)(5); (d)(3)(ii) (affidavit item 5); and (e); and
    (13) As a result of the changes described in item (12) above, 
Customs is reopening the time to file a letter of intent and/or an 
amended letter of intent. Section 10.184(d)(6) is amended by changing 
the date that a manufacturer's letter of intent must be received by 
Customs from March 31, 2001, until May 8, 2001.

Typographical Errors and Non-Substantive Editorial Changes

    Several typographical errors and editorial changes require the 
following corrections to the regulatory text:
    (1) Within Sec. 10.184, in paragraph (b), the third word ``for'' is 
removed and the word ``of'' is added in its place;
    (2) Within Sec. 10.184, the duplicative term ``duty refund'' at the 
end of paragraph (g)(3)(viii) is removed;
    (3) Within Sec. 10.184, in paragraphs (d)(2)(i)(D)(1) and 
(d)(3)(i)(E)(1), the word ``fabric'' is added after the word ``wool';
    (4) Within Sec. 10.184, in paragraph (d)(2)(iii)(C), the word 
``duty'' is removed and the word ``duties'' is added in its place;
    (5) Within Sec. 10.184, the following paragraphs are corrected by 
removing the word ``is'' and adding in its place the term ``is/was'': 
(d)(2)(iv) (affidavit item 1); (g)(3)(i)(A); (g)(3)(ii) (affidavit item 
1); (g)(3)(iii)(A); (g)(3)(iv) (affidavit item 1); and (g)(3)(vi) 
(affidavit item 1);
    (6) Within Sec. 10.184, the following paragraphs are corrected to 
reflect the redesignations made in paragraph (f): (g)(3)(i)(A); 
(g)(3)(ii)(affidavit item 1); and (g)(3)(viii);

[[Page 20395]]

    (7) Within Sec. 10.184, paragraphs (d)(3)(i)(B) and (C) are 
corrected by removing the term ``(d)(2)(i)(A)'' and adding in its place 
``(d)(3)(i)(A)'';
    (8) Within Sec. 10.184, paragraphs (d)(3)(i)(E)(3) and (4) are 
corrected by removing the term ``(d)(3)(i)(D)(2)'' and adding in its 
place ``(d)(3)(i)(E)(2)''; and
    (9) Within Sec. 10.184, paragraph (e) is corrected by removing the 
term ``(d)(5)'' and adding in its place ``(d)(6)''.
    Because of the number of changes to the final rule published in the 
Federal Register on December 26, 2000, Sec. 10.184 is republished in 
its entirety in this document.

Comments

    Before adopting this interim regulation as a final rule, 
consideration will be given to any written comments timely submitted to 
Customs, including comments on the clarity of this interim rule and how 
it may be made easier to understand. Comments submitted will be 
available for public inspection in accordance with the Freedom of 
Information Act (5 U.S.C. 552), Sec. 1.4 of the Treasury Department 
Regulations (31 CFR 1.4), and Sec. 103.11(b) of the Customs Regulations 
(19 CFR 103.11(b)), on regular business days between the hours of 9 
a.m. and 4:30 p.m. at the Regulations Branch, Office of Regulations and 
Rulings, U.S. Customs Service, 1300 Pennsylvania Avenue, NW., 3rd 
Floor, Washington, DC.

Inapplicability of Prior Public Notice and Comment Procedures

    Customs has determined, pursuant to the provisions of 5 U.S.C. 
553(b)(B), that prior public notice and comment procedures on this 
regulation are unnecessary and contrary to the public interest. These 
regulations serve to align the Customs Regulations to section 505 of 
Title V of the Trade and Development Act of 2000, which went into 
effect May 18, 2000. The regulatory amendments inform the public of a 
change to the eligibility, documentation and procedural requirements 
necessary to substantiate a wool duty refund for claim year 2000, 
whereby eligible wool products must be of the kind described in HTSUS 
subheadings 9902.51.11, 9902.51.12, 9902.51.13 or 9902.51.14. 
Manufacturers eligible to receive these refunds need to know the 
amended requirements for applying for refunds as soon as possible. For 
these same reasons, pursuant to the provisions of 5 U.S.C. 553(d)(3), 
Customs finds that there is good cause for dispensing with a delayed 
effective date.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in Executive Order 12866.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for these 
interim regulations, the provisions of the Regulatory Flexibility Act 
(5 U.S.C. 601 et seq.) do not apply.

Paperwork Reduction Act

    The collection of information involved in this interim rule has 
already been 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) and assigned OMB control number 1515-0227. This rule 
does not propose any substantive change to the existing approved 
information collection.
    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.

Drafting Information

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

List of Subjects in 19 CFR Part 10

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

Amendments to the Regulations

    For the reasons stated in the preamble, 19 CFR part 10 is amended 
as follows:

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

    1. The general authority citation for part 10 and the specific 
authority for Sec. 10.184 continue 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 center heading is added entitled ``Wool Duty Refunds'' 
before Sec. 10.184.

    3. Section 10.184 is revised 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 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 of 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. For 
each of calendar years 2000, 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, is eligible to claim a limited refund of the 
duties paid in such calendar years on entries of such fabrics that were 
imported or purchased by the manufacturer. HTSUS subheading 9902.51.11 
provides for fabrics, of worsted wool, with average fiber diameters 
greater than 18.5 micron, all the foregoing certified by the importer 
as suitable for use in making suits, suit-type jackets, or trousers. 
HTSUS subheading 9902.51.12 provides for fabrics, of worsted wool, with 
average fiber diameters of 18.5 micron or less, all the foregoing 
certified by the importer as suitable for use in making suits, suit-
type jackets, or trousers. The amount of duties eligible to be refunded 
to the manufacturer for 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 fabric that was imported or purchased 
by the manufacturer and entered under HTSUS subheadings 5112.11.20 or 
5112.19.90. A broker or other individual acting on

[[Page 20396]]

behalf of the manufacturer is ineligible to claim a duty refund.
    (2) Wool yarn. For each of calendar years 2000, 2001 and 2002, a 
U.S. 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 in each of these years on such 
imported wool yarn. HTSUS subheading 9902.51.13 provides for yarn, of 
combed wool, not put up for retail sale, containing 85 percent or more 
by weight of wool, formed with wool fibers having diameters of 18.5 
micron or less. The amount of duties eligible to be refunded to the 
manufacturer for 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 calendar year 1999 imports of wool yarn entered under 
HTSUS subheading 5107.10.00.
    (3) Wool fiber and wool top. For each of calendar years 2000, 2001 
and 2002, a U.S. 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 in 
each of these years on such wool fiber or wool top. HTSUS subheading 
9902.51.14 provides for wool fiber, waste, garnetted stock, combed 
wool, or wool top, having average fiber diameters of 18.5 micron or 
less. The amount of duties eligible to be refunded to the manufacturer 
for 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 
calendar year 1999 imports of wool fiber or wool top entered under 
HTSUS subheadings 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 
5103.20, 5104.00, 5105.21 or 5105.29.
    (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 was not the calendar year 1999 importer of worsted wool fabric 
entered under 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 worsted wool fabric that was imported in calendar 
year 1999, and entered under 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 
fabric of the kind described in HTSUS subheadings 9902.51.11 or 
9902.51.12;
    (2) A statement that the affiant was not the importer in calendar 
year 1999 of worsted wool fabric entered under 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 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 on calendar year 
1999 imports of worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90, as 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 9902.51.11 or 9902.51.12;
    2. The undersigned was not the importer in calendar year 1999 of 
worsted wool fabric entered under HTSUS subheadings 5112.11.20 or 
5112.19.90;
    3. The undersigned purchased (specify quantity) of imported 
worsted wool fabric of

[[Page 20397]]

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 on calendar year 1999 
imports of worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90, as 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 on calendar year 1999 
imports of such worsted wool fabric, as identified in the attached 
invoices; and
    6. The undersigned certifies 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 calendar year 1999 
imports of worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90;
    (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 duties paid on such 
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/was an importer who 
paid duties on calendar year 1999 imports of worsted wool fabric 
entered under HTSUS subheadings 5112.11.20 or 5112.19.90;
    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 on calendar year 1999 
imports of such fabric that was sold to (name of manufacturer) or to 
(name of supplier) 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 certifies 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 was not the calendar year 1999 importer of worsted wool 
fabric entered under 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 entered under 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)(3)(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)(3)(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;
    (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 
fabric of the kind described in HTSUS subheadings 9902.51.11 or 
9902.51.12;
    (2) A statement that the affiant was not the importer in calendar 
year 1999 of worsted wool fabric entered under 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)(E)(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)(E)(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 on calendar year 
1999 imports of worsted wool 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 estimate and 
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

[[Page 20398]]

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 9902.51.11 or 9902.51.12;
    2. The undersigned was not the importer in calendar year 1999 of 
worsted wool fabric entered under 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 on calendar year 
1999 imports of worsted wool fabric entered under HTSUS subheadings 
5112.11.20 or 5112.19.90, as identified in the submitted invoices, 
but the identified importer is unable or unwilling to provide such 
assistance; and
    6. The undersigned certifies 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, and must contain the following:
    (i) Where the manufacturer is the importer, the information 
described in paragraph (d)(1) of this section;
    (ii) Where the manufacturer is not the importer, but the 
manufacturer possesses the relevant entry summary numbers, 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); and/or
    (iii)Where the manufacturer is not the importer, and the 
manufacturer does not possess the relevant entry summary numbers, 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 amendments, 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 May 8, 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)(6) 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 on eligible wool products 
imported 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, instead, 
invoices are used to estimate and substantiate the amount of duties 
paid on eligible wool fabrics imported in calendar year 1999, the 
amount of duties will be determined by deducting 10 percent from the 
invoice amounts (to deduct imputed profits and costs), dividing the 
resulting adjusted invoice amounts by 130.6% 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 wool duty refund for 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, in each calendar year for which a wool duty 
refund claim is being made, a claimant must be:
    (1) A U.S. manufacturer of men's or boys' suits, suit-type jackets, 
or trousers,

[[Page 20399]]

of imported worsted wool fabric of the kind described in HTSUS 
subheadings 9902.51.11 or 9902.51.12, for which duties were paid on 
entries made under HTSUS subheadings 5112.11.20 or 5112.19.90 in 
calendar year 2000, or under HTSUS subheadings 5112.11.30, 5112.11.60, 
5112.19.60, 5112.19.95, 9902.51.11 or 9902.51.12 in calendar years 2001 
and 2002;
    (2) A U.S. manufacturer of worsted wool fabric who paid duties on 
imported wool yarn of the kind described in HTSUS subheading 9902.51.13 
and entered under HTSUS subheadings 5107.10.00 in calendar year 2000, 
or under HTSUS subheadings 5107.10.30 or 9902.51.13 in calendar years 
2001 and 2002;
    (3) A U.S. manufacturer of wool yarn or wool fabric who paid duties 
on imported wool fiber or wool top of the kind described in HTSUS 
subheading 9902.51.14 and entered under HTSUS subheadings 5101.11, 
5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 5104.00, 5105.21 
or 5105.29 in calendar years 2000, 2001 and 2002, or under HTSUS 
subheading 9902.51.14 in calendar years 2001 and 2002; and/or
    (4) A legal assignee of the existing wool duty refund claim rights 
of an eligible manufacturer described in paragraphs (f)(1), (f)(2) or 
(f)(3) 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/was a U.S. manufacturer of the 
kind described in paragraphs (f)(1), (f)(2) or (f)(3) of this section, 
in the calendar claim year for which a wool duty refund is being 
sought;
    (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/was a U.S. 
manufacturer of the kind described in paragraphs (f)(1) [__], (f)(2) 
[__] or (f)(3) [__] [check one] of Sec. 10.184 of the Customs 
Regulations (19 CFR 10.184(f)), in the calendar claim year for which 
a wool duty refund is being sought;
    2. The undersigned paid (total amount of duties paid) in 
calendar year __________ on eligible wool products;
    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 certifies 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 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 the affiant is/was a U.S. manufacturer in the 
calendar claim year for which a wool duty refund is being sought, 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;
    (B) A statement that the affiant was not the importer in the 
calendar claim year for which a wool duty refund is being sought of 
imported worsted wool fabric of the kind described in paragraph 
(g)(3)(iii)(A) of this section;
    (C) A statement as to the quantity of imported worsted wool fabric 
of the kind described in paragraph (g)(3)(iii)(A) of this section 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 (g)(3)(iii)(A) of this 
section from an identified supplier(s), the affiant has substantiating 
documentation that establishes that such fabric was

[[Page 20400]]

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 calendar 
claim year for which a wool duty refund is being sought on imported 
worsted wool fabric of the kind described in paragraph (g)(3)(iii)(A) 
of this section, as identified in the submitted invoices, and entered 
under HTSUS subheadings 5112.11.20 or 5112.19.90 in calendar year 2000, 
or under HTSUS subheadings 5112.11.30, 5112.11.60, 5112.19.60, 
5112.19.95, 9902.51.11 or 9902.51.12 in calendar years 2001 and 2002, 
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 calendar claim year for which a wool duty refund 
is being sought on imported worsted wool fabric of the kind described 
in paragraph (g)(3)(iii)(A) of this section, as identified in the 
submitted invoices, and entered under HTSUS subheadings 5112.11.20 or 
5112.19.90 in calendar year 2000, or under HTSUS subheadings 
5112.11.30, 5112.11.60, 5112.19.60, 5112.19.95, 9902.51.11 or 
9902.51.12 in calendar years 2001 and 2002.
    (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/was 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 9902.51.11 or 9902.51.12;
    2. The undersigned was not the importer in the calendar claim 
year for which a wool duty refund is being sought of 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 calendar claim year 
for which a wool duty refund is being sought, as evidenced by the 
attached invoices, on imported worsted wool fabric of the kind 
described in item (1) above and entered under HTSUS subheadings 
5112.11.20 or 5112.19.90 in calendar year 2000, or under HTSUS 
subheadings 5112.11.30, 5112.11.60, 5112.19.60, 5112.19.95, 
9902.51.11 or 9902.51.12 in calendar years 2001 and 2002; 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 relevant entry summary numbers that 
substantiates the amount of duties paid in the calendar claim year 
for which a wool duty refund is being sought, as evidenced by the 
attached invoices, on such fabric that was entered under HTSUS 
subheadings 5112.11.20 or 5112.19.90 in calendar year 2000, or under 
HTSUS subheadings 5112.11.30, 5112.11.60, 5112.19.60, 5112.19.95, 
9902.51.11 or 9902.51.12 in calendar years 2001 and 2002; and
    6. The undersigned certifies 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 to the total amount of duties that the importer 
paid in the calendar year for which a wool duty refund is being sought 
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 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 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 in the calendar claim year for which a wool duty 
refund is being sought 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/was an importer who 
paid duties in calendar year ______ on imported worsted wool 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 calendar claim year 
for which a wool duty refund is being sought on such fabric that was 
sold by the undersigned to (name of manufacturer) or to an 
identified supplier(s) (name of supplier(s));
    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 certifies 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

[[Page 20401]]

(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) or (f)(3) 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 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.
    (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.

Charles W. Winwood,
Acting Commissioner of Customs.
    Approved: April 9, 2001.
Timothy E. Skud,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 01-10004 Filed 4-20-01; 8:45 am]
BILLING CODE 4820-02-P