[Federal Register Volume 67, Number 32 (Friday, February 15, 2002)]
[Rules and Regulations]
[Pages 7070-7072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4009]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 141

[T.D. 02-07]
RIN 1515-AD03


Andean Trade Preference Act

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

ACTION: Temporary rule.

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SUMMARY: This is a 90-day temporary rule. Duty-free treatment for 
eligible articles from beneficiary countries under the Andean Trade 
Preference Act (ATPA) expired on December 4, 2001. This document amends 
the Customs Regulations on a temporary basis to provide that effective 
February 15, 2002, importers of eligible articles that, but for the 
expiration of the ATPA, would have been entitled to duty-free treatment 
under the ATPA, may exercise the option to defer the payment of 
estimated Customs duties and fees after entry of those articles until 
May 16, 2002. The Administration anticipates that the duty-free 
treatment accorded to merchandise under the provisions of the ATPA will 
be restored and made

[[Page 7071]]

retroactive to the date of the initial termination of such duty-free 
treatment (December 4, 2001), and that there will be no extension of 
this extraordinary action.
    After consultation with the State Department, the Department of 
Commerce, the United States Trade Representative, the Office of 
National Drug Control Policy, and others, it has been determined that 
there is a national security interest to be furthered by an interim 
deferral of collection of estimated duties on products from the Andean 
nations. Action in this matter is also intended to relieve the 
importing public from having to deposit estimated duties and fees on 
eligible merchandise and then having to apply for a refund of the 
duties in the event duty-free treatment is retroactively re-authorized 
for such merchandise under the ATPA.

EFFECTIVE DATE: This temporary rule is effective on February 15, 2002, 
and expires on May 16, 2002. This temporary rule applies to imported 
merchandise that would have been subject to duty-free treatment had the 
ATPA not expired, that is entered or withdrawn from warehouse for 
consumption in the customs territory of the United States on or after 
February 15, 2002.

FOR FURTHER INFORMATION CONTACT: Leon Hayward, Office of Field 
Operations, 202-927-3271.

SUPPLEMENTARY INFORMATION:

Background

    Title II of Public Law 102-182 (105 Stat. 1233), enacted on 
December 4, 1991, and entitled the Andean Trade Preference Act (ATPA), 
authorized the President to proclaim duty-free treatment for all 
eligible articles from any beneficiary country, to designate countries 
as beneficiary countries, and to proclaim duty reductions for certain 
goods not eligible for duty-free treatment. The ATPA is codified at 19 
U.S.C. 3201-3206.
    Sections 10.202-10.208 of the Customs Regulations (19 CFR 10.202-
10.208) set forth the legal requirements and procedures that apply for 
purposes of obtaining duty-free or reduced duty treatment for articles 
from a beneficiary country. These articles are identified for purposes 
of receiving duty-free or reduced duty treatment in General Note 11, 
Harmonized Tariff Schedule of the United States (HTSUS), and in the 
``Special'' rate of duty column in the HTSUS. The beneficiary countries 
covered by the ATPA are Bolivia, Colombia, Ecuador and Peru (General 
Note 11(a), HTSUS).
    It is stated in 19 U.S.C. 3206(b) that no duty-free treatment 
extended to beneficiary countries under the ATPA will remain in effect 
10 years after December 4, 1991, which, as noted above, is the date of 
enactment of the ATPA.
    Nevertheless, the Administration anticipates that the duty-free 
treatment accorded to merchandise eligible for such treatment under the 
provisions of the ATPA will be restored and made retroactive to the 
date of initial termination (December 4, 2001).
    After consultation with the State Department, the Department of 
Commerce, the United States Trade Representative, the Office of 
National Drug Control Policy, and others, it has been determined that 
there is a national security interest to be furthered by an interim 
deferral of collection of estimated duties on merchandise from the 
Andean nations previously eligible for such treatment. The ATPA serves 
to help encourage and expand legitimate economic activities in 
countries combatting illegal narcotic production and trafficking and 
related criminal and terrorist activities.
    The ATPA explicitly references that satisfying the narcotics 
cooperation certification criteria set forth in section 481(h)(2)(A) of 
the Foreign Assistance Act of 1961 (deemed to be a reference to section 
490 of the Foreign Assistance Act, codified at 22 U.S.C. 2291j) is an 
important factor in determining a country's eligibility to be 
designated as a beneficiary under the ATPA. The Andean nations that 
have been designated as beneficiaries under the ATPA were last 
determined on March 1, 2001, to satisfy these criteria. (Section 591(5) 
of the Kenneth M. Ludden Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, Fiscal Year 2002 (Pub. L. 107-115, 
115 Stat. 2118, January 10, 2002), makes section 490 of the Foreign 
Assistance Act inoperative in FY 2002 and provides for modified 
procedures which contain many of the same elements as section 490.) 
Accordingly, an interim deferral of estimated duties and fees in 
anticipation of Congressional re-enactment of the ATPA within the next 
90 days is appropriate to further the national security interest in 
combating narcotic production and trafficking and related criminal and 
terrorist activities.
    To this end, Customs is amending Sec. 141.102 of the Customs 
Regulations (19 CFR 141.102) to provide that as of February 15, 2002, 
an importer of eligible articles that, but for the expiration of the 
ATPA, would have been entitled to duty-free treatment under the ATPA, 
may exercise the option to defer the payment of estimated Customs 
duties and fees on the entry of those articles until May 16, 2002.
    Action in this matter is intended to relieve the importing public 
from having to deposit estimated duties and fees on eligible 
merchandise and then having to apply for a refund of the duties in the 
event duty-free treatment is retroactively re-authorized for such 
merchandise under the ATPA in the next 90 days.
    If an importer chooses to use the option of filing estimated duties 
and fees more than 10 days after the date of entry of the merchandise, 
Customs will require paper filings of the entry and entry summary.

Administrative Procedure Act, Regulatory Flexibility Act and 
Executive Order 12866

    After consultation with the Department of State, the Department of 
Commerce, the United States Trade Representative, the Office of 
National Drug Control Policy, and others, it has been determined that 
there is a national security interest to be furthered by an interim 
deferral of collection of estimated duties on merchandise from the 
Andean nations previously eligible for such treatment. Accordingly, 
because the national security interest at issue involves a foreign 
affairs function of the United States, notice and public procedure are 
not required pursuant to 5 U.S.C. 553(a)(1). This action will also 
provide the importing public an option to avoid having to deposit 
estimated duties and fees on eligible merchandise and then having to 
apply for a refund of the duties if, as expected, duty-free treatment 
is retroactively re-authorized for such merchandise under the ATPA in 
the next 90 days. Accordingly, notice and public procedure are not 
required pursuant to 5 U.S.C. 553(b)(B). For these same reasons, a 
delayed effective date is not required pursuant to 5 U.S.C. 553(a)(1) 
and (d)(1).
    Because no notice of proposed rulemaking is required, this 
temporary rule is not subject to the provisions of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). Nor is this temporary rule a 
``significant regulatory action'' for purposes of E.O. 12866.

List of Subjects in 19 CFR Part 141

    Customs duties and inspection, Entry of merchandise, Release of 
merchandise, Reporting and recordkeeping requirements.

Amendments to the Regulations

    Part 141, Customs Regulations (19 CFR part 141), is amended as set 
forth below.

[[Page 7072]]

PART 141--ENTRY OF MERCHANDISE

    1. The general authority citation for part 141 and the specific 
authority citation for subpart G continue to read, and a new specific 
authority citation for Sec. 141.102(e) is added in appropriate 
numerical order to read, as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624; 
46 U.S.C. App. 3, 91.
* * * * *
    Subpart G also issued under 19 U.S.C. 1505;
* * * * *
    Section 141.102(e) also issued under 19 U.S.C. 3;
* * * * *
    2. Section 141.102 is amended by adding a new paragraph (e) to read 
as follows:


Sec. 141.102  When deposit of estimated duties, estimated taxes, or 
both not required.

* * * * *
    (e) Merchandise otherwise duty-free under Andean Trade Preference 
Act (ATPA). For merchandise entered or withdrawn from warehouse for 
consumption in the customs territory of the United States on or after 
February 15, 2002, an importer of eligible articles that, but for the 
expiration of the Andean Trade Preference Act (ATPA), would have been 
entitled to duty-free treatment under the ATPA, may, at the importer's 
option, defer the payment of estimated Customs duties and fees on the 
entry of those articles until May 16, 2002. Merchandise eligible for 
duty-free treatment under the ATPA is identified in General Note 11, 
Harmonized Tariff Schedule of the United States (HTSUS), and in the 
relevant ``Special'' rate of duty column in the HTSUS. The procedure 
for obtaining duty-free treatment for merchandise otherwise eligible 
for such treatment under the ATPA is contained in Sec. 10.207 of this 
chapter. If the option is taken to deposit the estimated duties and 
fees more than 10 days from the date of entry, the entry and entry 
summary will not be accepted by Customs electronically.

Robert C. Bonner,
Commissioner of Customs.
    Approved: February 13, 2002.
Timothy E. Skud,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 02-4009 Filed 2-13-02; 4:46 pm]
BILLING CODE 4820-02-P