[Federal Register Volume 67, Number 154 (Friday, August 9, 2002)]
[Rules and Regulations]
[Pages 51751-51752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20166]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 67, No. 154 / Friday, August 9, 2002 / Rules 
and Regulations

[[Page 51751]]



DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 102

[T.D. 02-47]


Technical Corrections: Rules of Origin for Textile and Apparel 
Products

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

ACTION: Interim rule; corrections.

-----------------------------------------------------------------------

SUMMARY: This document makes technical corrections to the Customs 
Regulations to reflect the terms of the 2002 Harmonized Tariff Schedule 
of the United States within the country of origin rules for certain 
textile and apparel products. The document also corrects an error in 
the rules regarding the scope of the definition of the term ``textile 
or apparel product.''

DATES: These corrections are effective August 9, 2002.

FURTHER INFORMATION CONTACT: Shari Suzuki, Textile Branch, Office of 
Regulations and Rulings, U.S. Customs Service, 1300 Pennsylvania 
Avenue, NW., Washington, DC, 20229, Tel. (202) 572-8818.

SUPPLEMENTARY INFORMATION:

Background

    Section 334 of the Uruguay Round Agreements Act (URAA), Public Law 
103-465, 108 Stat. 4809 (19 U.S.C. 3592), directs the Secretary of the 
Treasury to prescribe rules implementing certain principles for 
determining the origin of textiles and apparel products. Section 102.21 
of the Customs Regulations (19 CFR 102.21) implements section 334 of 
the URAA.
    On May 1, 2001, Customs published in the Federal Register (66 FR 
21660), as T.D. 01-36, an interim rule amending Sec. 102.21 of the 
Customs Regulations (19 CFR 102.21) to align the existing country of 
origin rules for certain textile and apparel products with the 
statutory amendments to section 334 of the URAA, effected by section 
405 of Title IV of the Trade and Development Act of 2000. A technical 
correction to T.D. 01-36 was published in the Federal Register (66 FR 
23981) on May 10, 2001.

Need for Correction

    Recent changes to the 2002 Harmonized Tariff Schedule of the United 
States (HTSUS) have resulted in the transfer of certain goods, for 
classification purposes, to newly created tariff provisions. Because of 
these classification changes, there are certain textile products which 
were intended under the scope of 19 U.S.C. 3592 to be covered by the 
rules of origin set forth in Sec. 102.21 but, as a result of the 
changes to the 2002 HTSUS, are currently excluded from the scope of 
that regulatory provision or are not provided for within the tariff 
shift rules referenced in Sec. 102.21(c)(2).
    For example, it is noted that goods previously classifiable under 
heading 6002, HTSUS, which provides for ``other knitted or crocheted 
fabrics,'' are now classifiable under HTSUS headings 6002 through 6006 
(as a result of the creation of new headings 6003 through 6006). As new 
HTSUS headings 6003 through 6006 are not included in the tariff shift 
rules set forth in Sec. 102.21(e), the goods classifiable under these 
provisions are currently precluded from having their origin determined 
pursuant to Sec. 102.21(c)(2). The technical corrections in this 
document amend the tariff shift rules in Sec. 102.21(e) to add these 
new tariff provisions.
    Similarly, a new subheading has been created at 4202.92.05, HTSUS, 
which provides for ``insulated food and beverage bags with an outer 
surface of textile materials.'' This document amends Sec. 102.21 to 
include reference to this new tariff provision.
    A technical correction to Sec. 102.21 is also necessary to reflect 
that the listing in Sec. 102.21(b)(5) of the HTSUS headings and 
subheadings that describe the textile and apparel products covered by 
these rules of origin inadvertently excluded a subheading which, 
pursuant to 19 U.S.C. 3592, should have been included. Section 
102.21(b)(5) does not include subheading 9404.90.20, HTSUS, which 
provides for pillows, cushions, and similar furnishings of materials 
other than cotton. Section 3592, the statutory provision authorizing 
the rules of origin for textile and apparel products, explicitly 
includes subheading 9404.90, HTSUS, within the scope of the provision. 
See 19 U.S.C. 3592(b)(2)(A). Because Sec. 102.21(b)(5) lists 9404, 
HTSUS, tariff provisions at a greater level of specificity (i.e., to 
the 8-digit level) than is statutorily required (i.e., to the 6-digit 
level), the regulation is inadvertently more restrictive in scope than 
the authorizing statute.
    This document corrects Sec. 102.21(b)(5) to reflect the terms of 
the authorizing statute to include HTSUS subheading 9404.90 as a tariff 
provision that is within the definition of a textile and apparel 
product covered by these rules of origin (and deletes the more specific 
tariff references to subheadings 9404.90.10 and 9404.90.80-95). By this 
correction, it is clear that pillows, cushions, and similar furnishings 
of materials other than cotton are textile and apparel products covered 
by the regulation. These changes will also serve to align 
Sec. 102.21(b)(5) to Sec. 102.21(e)(1) which lists a tariff shift rule 
for HTSUS 9404.90.
    Lastly, this document corrects a typographical error in 
Sec. 102.21(e)(1) whereby the number ``17'' inadvertently appears in 
the tariff shift rule for HTSUS 6301-6303.
    For the reasons set forth above, this document makes technical 
corrections to Sec. 102.21 to reflect the terms of the 2002 HTSUS, to 
conform Sec. 102.21 to the scope of the authorizing statute, and to 
correct a typographical error.

Executive Order 12866, Regulatory Flexibility Act, Inapplicability 
of Prior Public Notice and Comment Procedures and Delayed Effective 
Date Requirements

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in Executive Order 12866. Because 
these amendments merely update the Customs Regulations by reflecting 
the terms of the 2002 HTSUS within the country of origin rules for 
certain textile and apparel products, and otherwise correct errors in 
those rules, 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 and 
that pursuant to the provisions of 5 U.S.C. 553(d)(3), there is good 
cause for dispensing with a

[[Page 51752]]

delayed effective date. Because the document is not subject to the 
requirements of 5 U.S.C. 553, as noted, it is not subject to the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

Drafting Information

    The principal author of this document was Ms. 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 102

    Customs duties and inspection, Imports, Rules of Origin, Trade 
agreements.

Amendments to the Regulations

    For the reasons stated above, part 102 of the Customs Regulations 
(19 CFR part 102) is amended as set forth below.

PART 102--RULES OF ORIGIN

    1. The authority citation for part 102 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 23, Harmonized 
Tariff Schedule of the United States), 1624, 3314, 3592.


    2. In Sec. 102.21:
    (a) Paragraph (b)(5) is amended by removing the listings 
``9404.90.10'' and ``9404.90.80-95'' and adding, in numerical order, 
the listings ``4202.92.05'' and ``9404.90'';
    (b) The table in paragraph (e)(1) is amended by:
    (i) Adding an entry, in numerical order, for ``4202.92.05'';
    (ii) Removing the number ``6002'' from the entries in the ``Tariff 
shift and/or other requirements'' column adjacent to the ``HTSUS'' 
entries for 3005.90, 5810.91-5810.99, 5908, 5909, 5910, 5911.10-
5911.20, 5911.31-5911.32, 5911.40, 5911.90, 6101-6117, 6210-6212, 
6406.10.77, 6406.10.90, 6406.99.15, 6502, 6504, 6505.90, 8804, and 
9113.90.40 and adding in its place the number ``6006'';
    (iii) Removing the number ``6002'' from the entries in the ``Tariff 
shift and/or other requirements'' column adjacent to the ``HTSUS'' 
entries for 5608, 5801-5803, 5901-5903, 5905, 5906-5907 and 
9612.10.9010 and adding in its place the phrase ``6002 through 6006'';
    (iv) Removing the entry for ``6001-6002'' and adding in its place 
the entry ``6001-6006''; and
    (v) Removing the number ``17'' from the entry in the ``Tariff shift 
and/or other requirements'' column adjacent to the ``HTSUS'' entry for 
6301-6306.
    The new entries read as follows:


Sec. 102.21  Textile and apparel products.

* * * * *
    (e) * * *--(1) * * *

------------------------------------------------------------------------
                                          Tariff shift and/or other
               HTSUS                             requirements
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
4202.92.05.........................  A change to subheading 4202.92.05
                                      from any other heading, provided
                                      that the change is the result of
                                      the good being wholly assembled in
                                      a single country, territory or
                                      insular possession.''
 
*                  *                  *                  *
                  *                  *                  *
6001-6006..........................  (1) Except for fabric of wool or of
                                      fine animal hair, a change from
                                      greige fabric of heading 6001
                                      through 6006 to finished fabric of
                                      heading 6001 through 6006 by both
                                      dyeing and printing when
                                      accompanied by two or more of the
                                      following finishing operations:
                                      bleaching, shrinking, fulling,
                                      napping, decating, permanent
                                      stiffening, weighting, permanent
                                      embossing, or moireing; or,
                                     (2) If the country of origin cannot
                                      be determined under paragraph (1)
                                      of this entry, a change to heading
                                      6001 through 6006 from any heading
                                      outside that group, provided that
                                      the change is the result of a
                                      fabric-making process.
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* * * * *

    Approved: August 6, 2002.
Robert C. Bonner,
Commissioner of Customs.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 02-20166 Filed 8-8-02; 8:45 am]
BILLING CODE 4820-02-P