[Federal Register Volume 67, Number 169 (Friday, August 30, 2002)]
[Rules and Regulations]
[Pages 55722-55723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22225]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 132 and 163

[T.D. 02-50]
RIN 1515-AC83


Licenses for Certain Worsted Wool Fabrics Subject to Tariff-Rate 
Quota

AGENCY: Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule, without change, the 
interim rule amending the Customs Regulations that was published in the 
Federal Register on May 1, 2001, as T.D. 01-35. The interim rule set 
forth the form and manner by which an importer establishes that a valid 
license, issued under regulations of the U.S. Department of Commerce, 
is in effect for certain worsted wool fabric that is the subject of a 
tariff-rate quota. Such a license, issued by the U.S. Department of 
Commerce, is necessary in order to enable the importer to claim the in-
quota rate of duty on the worsted wool fabric.

DATES: Final rule effective on August 30, 2002.

FOR FURTHER INFORMATION CONTACT: Thomas Fitzpatrick, Office of Field 
Operations, (202-927-5385).

SUPPLEMENTARY INFORMATION:   

Background

    Under section 501 of the Trade and Development Act of 2000 (the 
``Act'') (Pub. L. 106-200, 114 Stat. 251; May 18, 2000), the Harmonized 
Tariff Schedule of the United States (HTSUS) was amended to establish a 
tariff-rate quota for certain worsted wool fabrics that are entered or 
withdrawn from warehouse for consumption, on or after January 1, 2001.
    Generally, under a tariff-rate quota, the United States applies one 
tariff rate, known as the in-quota rate, to imports of a product up to 
a particular amount, known as the in-quota quantity, and another, 
higher rate, known as the over-quota rate, to imports of a product in 
excess of the given amount. The preferential, in-quota rate would be 
applicable to the product only to the extent that the aggregate in-
quota quantity of the product that is entered or withdrawn for 
consumption is not exceeded during the quota year.
    To establish the tariff-rate quota for worsted wool fabrics, 
subchapter 2 of Chapter 99, HTSUS, was amended by section 501(a) and 
(b) of the Act to add two subheadings, 9902.51.11 and 9902.51.12, 
respectively.
    The two subheadings created by section 501(a) and (b) of the Act 
describe certain fabrics of worsted wool provided for in subheadings 
5111.11.70, 5111.19.60, 5112.11.20 and 5112.19.90, HTSUS. Since the 
passage of the Act, the President issued Presidential Proclamation 7383 
(December 1, 2000). The Annex to that Presidential Proclamation 
provided, in pertinent part, for the following HTSUS substitutions, 
effective on or after January 1, 2001:
    Subheading 5112.11.20 is replaced by subheadings 5112.11.30 and 
5112.11.60; and
    Subheading 5112.19.90 is replaced by subheadings 5112.19.60 and 
5112.19.95.
    Further, it is noted that HTSUS subheadings 5111.11.70 and 
5111.19.60 do not provide for worsted wool fabric so fabrics described 
in those subheadings would not meet the description of fabrics that 
could fall under the tariff rate quota.
    Accordingly, the tariff rate quota is applicable to certain fabrics 
of worsted wool provided for in subheadings 5112.11.30, 5112.11.60, 
5112.19.60 and 5112.19.95, HTSUS, that are described in and entered 
under subheadings 9902.51.11 and 9902.51.12, HTSUS.

Administration of Tariff-Rate Quota by U.S. Department of Commerce

    In implementing the in-quota limits on the quantities of worsted 
wool fabric that may be entered or withdrawn for consumption subject to 
the reduced tariffs afforded by subheadings 9902.51.11 and 9902.51.12, 
the U.S. Department of Commerce was delegated the authority under 
section 501(e) of the Act to fairly apportion these in-quota quantities 
among those persons, including firms, corporations and other legal 
entities, in the United States, who cut and sew men's and boys' worsted 
wool suits, suit-type jackets and trousers. This delegation of 
authority to the Department of Commerce was effected by Presidential 
Proclamation No. 7383 of December 1, 2000.
    Accordingly, the Department of Commerce issued regulations setting 
up a program for the allocation of the aggregate in-quota quantity 
established, respectively, for subheadings 9902.51.11 and 9902.51.12 
(15 CFR 335.1-335.7; see Federal Register dated January 22, 2001 (66 FR 
6459)).
    In pertinent part, under this program, the usage of the quota is 
allocated to U.S. suit-makers by virtue of licenses issued to them by 
the Department of Commerce. Each license is issued for a stated 
quantity of fabric and is required to have a unique control number. A 
suit-maker who has been issued such a license (a licensee) may enter 
worsted wool fabric under subheading 9902.51.11 or 9902.51.12 at the 
related in-quota rate of duty, up to the amount authorized in the 
license.
    However, if the importer of record is not the licensee, the 
importer must have received an authorization from the licensee to act 
on its behalf, in order to be entitled to the in-quota rate of duty. 
The licensee may only authorize an importer to import fabric under the 
license on its behalf by making such an authorization in writing or by 
an electronic notice to the importer and by providing a copy of such 
authorization to the Department of Commerce. This authorization must 
include the unique control number of the license; it must specifically 
cover the fabric being imported; and it must be in the possession of 
the importer at the time of filing the entry summary or warehouse 
withdrawal for consumption (Customs Form 7501), or its electronic 
equivalent, in order for the importer to be eligible for the applicable 
in-quota rate of duty.

Corresponding Customs Rulemaking

    In accordance with the rulemaking of the Department of Commerce, 
Customs issued an interim rule that was published in the Federal 
Register (66 FR 21664) on May 1, 2001, as T.D. 01-35. The interim rule 
added a new Sec. 132.18 to the Customs Regulations (19 CFR 132.18) in 
order to prescribe the form and manner by which an importer establishes 
that a valid license exists for worsted wool fabric subject to the 
tariff-rate quota that is entered under HTSUS subheading 9902.51.11 or 
9902.51.12. In particular, the unique control number assigned to the 
license must be referenced on the entry summary or warehouse withdrawal 
for consumption, or its electronic equivalent, in order to entitle the 
importer to claim the in-quota rate of duty on the worsted wool fabric.
    In addition, the interim rule revised the Interim (a)(1)(A) List 
set forth as an Appendix to part 163, Customs

[[Page 55723]]

Regulations (19 CFR part 163, Appendix) to make reference to the 
license or written authorization required under new Sec. 132.18. The 
(a)(1)(A) List provides a listing of the records and information 
required for the entry of merchandise.
    A document published in the Federal Register (66 FR 27453) on May 
17, 2001, set forth a correction to the interim rule regarding its 
effective date. As noted above, the rule applies to products that are 
entered, or withdrawn from warehouse, for consumption on or after 
January 1, 2001.
    No comments were received from the public in response to the 
interim rule, and Customs has now determined to adopt the interim rule 
as a final rule without change.

The Regulatory Flexibility Act and Executive Order 12866 and 
Inapplicability of Delayed Effective Date

    This final rule implements a preferential tariff benefit in favor 
of the importing public; it provides a necessary and reasonable means 
for carrying out this preferential tariff benefit; and it closely 
parallels existing regulatory provisions that implement similar trade 
preference programs. Accordingly, it has been determined, pursuant to 5 
U.S.C. 553(d)(3), that a delayed effective date is not required. 
Because no notice of proposed rulemaking was required, the provisions 
of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply. 
Nor does this final rule result in a ``significant regulatory action'' 
as specified in E.O. 12866.

Paperwork Reduction Act

    The collections of information concerning the interim rule had 
already been approved by the Office of Management and Budget (OMB) in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
and assigned OMB Control Numbers 1515-0065 (Entry summary and 
continuation sheet) and 1515-0124 (General recordkeeping and record 
production requirements). The interim rule did not make any material 
change to the existing approved information collections.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid control number assigned by OMB.

List of Subjects

19 CFR Part 132

    Customs duties and inspection, Quotas, Reporting and recordkeeping 
requirements.

19 CFR Part 163

    Administrative practice and procedure, Customs duties and 
inspection, Imports, Reporting and recordkeeping requirements.

Amendments to the Regulations

    Accordingly, the interim rule amending parts 132 and 163, Customs 
Regulations (19 CFR parts 132 and 163), which was published in the 
Federal Register at 66 FR 21664 on May 1, 2001, is adopted as a final 
rule without change.

Robert C. Bonner,
Commissioner of Customs.
    Approved: August 26, 2002.
Gordana S. Earp,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 02-22225 Filed 8-29-02; 8:45 am]
BILLING CODE 4820-02-P