[Federal Register Volume 67, Number 199 (Tuesday, October 15, 2002)]
[Notices]
[Pages 63729-63731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26123]


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DEPARTMENT OF THE TREASURY

Customs Service


List Of Foreign Entities Violating Textile Transshipment And 
Country of Origin Rules

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

ACTION: General notice.

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SUMMARY: This document notifies the public of foreign entities which 
have been issued a penalty claim under section 592 of the Tariff Act of 
1930, for certain violations of the customs laws. This list is 
authorized to be published by section 333 of the Uruguay Round 
Agreements Act.

DATES: This document notifies the public of the semiannual list for the 
6-month period starting October 1, 2002, and ending March 30, 2003.

FOR FURTHER INFORMATION CONTACT: For information regarding any of the 
operational aspects, contact Gregory Olsavsky, Fines, Penalties and 
Forfeitures Branch, Office of Field Operations, (202) 927-3119. For 
information regarding any of the legal aspects, contact Willem A. 
Daman, Office of Chief Counsel, (202) 927-6900.

SUPPLEMENTARY INFORMATION:

Background

    Section 333 of the Uruguay Round Agreements Act (URAA) (Public Law 
103-465, 108 Stat. 4809) (signed December 8, 1994), entitled Textile 
Transshipments, amended Part V of title IV of the Tariff Act of 1930 by 
creating a section 592A (19 U.S.C. 1592a), which authorizes the 
Secretary of the Treasury to publish in the Federal Register, on a 
semiannual basis, a list of the names of any producers, manufacturers, 
suppliers, sellers, exporters, or other persons located outside the 
Customs territory of the United States, when these entities and/or 
persons have been issued a penalty claim under section 592 of the 
Tariff Act, for certain violations of the customs laws, provided that 
certain conditions are satisfied.
    The violations of the customs laws referred to above are the 
following: (1) Using documentation, or providing documentation 
subsequently used by the importer of record, which indicates a false or 
fraudulent country of origin or source of textile or apparel products; 
(2) Using counterfeit visas, licenses, permits, bills of lading, or 
similar documentation, or providing counterfeit visas, licenses, 
permits, bills of lading, or similar documentation that is subsequently 
used by the importer of record, with respect to the entry into the 
Customs territory of the United States of textile or apparel products; 
(3) Manufacturing, producing, supplying, or selling textile or apparel 
products which are falsely or fraudulently labeled as to country of 
origin or source; and (4) Engaging in practices which aid or abet the 
transshipment, through a country other than the country of origin, of 
textile or apparel products in a manner which conceals the true origin 
of the textile or apparel products or permits the evasion of quotas on, 
or voluntary restraint agreements with respect to, imports of textile 
or apparel products.
    If a penalty claim has been issued with respect to any of the above

[[Page 63730]]

violations, and no petition in response to the claim has been filed, 
the name of the party to whom the penalty claim was issued will appear 
on the list. If a petition or supplemental petition for relief from the 
penalty claim is submitted under 19 U.S.C. 1618, in accord with the 
time periods established by sections 171.2 and 171.61, Customs 
Regulations (19 CFR 171.2, 171.61) and the petition is subsequently 
denied or the penalty is mitigated, and no further petition, if 
allowed, is received within 60 days of the denial or allowance of 
mitigation, then the administrative action shall be deemed to be final 
and administrative remedies will be deemed to be exhausted. 
Consequently, the name of the party to whom the penalty claim was 
issued will appear on the list. However, provision is made for an 
appeal to the Secretary of the Treasury by the person named on the 
list, for the removal of its name from the list. If the Secretary finds 
that such person or entity has not committed any of the enumerated 
violations for a period of not less than 3 years after the date on 
which the person or entity's name was published, the name will be 
removed from the list as of the next publication of the list.

Reasonable Care Required

    Section 592A also requires any importer of record entering, 
introducing, or attempting to introduce into the commerce of the United 
States textile or apparel products that were either directly or 
indirectly produced, manufactured, supplied, sold, exported, or 
transported by such named person to show, to the satisfaction of the 
Secretary, that such importer has exercised reasonable care to ensure 
that the textile or apparel products are accompanied by documentation, 
packaging, and labeling that are accurate as to its origin. Reliance 
solely upon information regarding the imported product from a person 
named on the list is clearly not the exercise of reasonable care. Thus, 
the textile and apparel importers who have some commercial relationship 
with one or more of the listed parties must exercise a degree of 
reasonable care in ensuring that the documentation covering the 
imported merchandise, as well as its packaging and labeling, is 
accurate as to the country of origin of the merchandise. This degree of 
reasonable care must involve reliance on more than information supplied 
by the named party.
    In meeting the reasonable care standard when importing textile or 
apparel products and when dealing with a party named on the list 
published pursuant to section 592A of the Tariff Act of 1930, an 
importer should consider the following questions in attempting to 
ensure that the documentation, packaging, and labeling is accurate as 
to the country of origin of the imported merchandise. The list of 
questions is not exhaustive but is illustrative.
    (1) Has the importer had a prior relationship with the named party?
    (2) Has the importer had any detentions and/or seizures of textile 
or apparel products that were directly or indirectly produced, 
supplied, or transported by the named party?
    (3) Has the importer visited the company's premises and ascertained 
that the company has the capacity to produce the merchandise?
    (4) Where a claim of an origin conferring process is made in 
accordance with 19 CFR 102.21, has the importer ascertained that the 
named party actually performed the required process?
    (5) Is the named party operating from the same country as is 
represented by that party on the documentation, packaging or labeling?
    (6) Have quotas for the imported merchandise closed or are they 
nearing closing from the main producer countries for this commodity?
    (7) What is the history of this country regarding this commodity?
    (8) Have you asked questions of your supplier regarding the origin 
of the product?
    (9) Where the importation is accompanied by a visa, permit, or 
license, has the importer verified with the supplier or manufacturer 
that the visa, permit, and/or license is both valid and accurate as to 
its origin? Has the importer scrutinized the visa, permit or license as 
to any irregularities that would call its authenticity into question?
    The law authorizes a semiannual publication of the names of the 
foreign entities and/or persons. On March 20, 2002, Customs published a 
Notice in the Federal Register (67 FR 13044) which identified 10 (ten) 
entities which fell within the purview of section 592A of the Tariff 
Act of 1930.

592A List

    For the period ending September 30, 2002, Customs has identified 3 
(three) foreign entities that fall within the purview of section 592A 
of the Tariff Act of 1930. This list reflects no new entities and seven 
removals to the 10 entities named on the list published on March 20, 
2002. The parties on the current list were assessed a penalty claim 
under 19 U.S.C. 1592, for one or more of the four above-described 
violations. The administrative penalty action was concluded against the 
parties by one of the actions noted above as having terminated the 
administrative process.
    The names and addresses of the 3 foreign parties which have been 
assessed penalties by Customs for violations of section 592 are listed 
below pursuant to section 592A. This list supersedes any previously 
published list. The names and addresses of the 3 foreign parties are as 
follows (the parenthesis following the listing sets forth the month and 
year in which the name of the company was first published in the 
Federal Register):
    Everlite Manufacturing Company, P.O. Box 90936, Tsimshatsui, 
Kowloon, Hong Kong (3/01).
    Fairfield Line (HK) Co. Ltd., 60-66 Wing Tai Commer., Bldg. 1/F, 
Sheung Wan, Hong Kong (3/01).
    G.P. Wedding Service Centre, Lee Hing Industrial Building, 10 
Cheung Yue Street 11th Floor, Cheung Sha Wan, Kowloon, Hong Kong. (10/
00)
    Any of the above parties may petition to have its name removed from 
the list. Such petitions, to include any documentation that the 
petitioner deems pertinent to the petition, should be forwarded to the 
Assistant Commissioner, Office of Field Operations, United States 
Customs Service, 1300 Pennsylvania Avenue, NW., Washington, DC 20229.

Additional Foreign Entities

    In the March 20, 2002, Federal Register notice, Customs also 
solicited information regarding the whereabouts of 3 foreign entities, 
which were identified by name and known address, concerning alleged 
violations of section 592. Persons with knowledge of the whereabouts of 
those 3 entities were requested to contact the Assistant Commissioner, 
Office of Field Operations, United States Customs Service, 1300 
Pennsylvania Avenue, NW., Washington, DC 20229.
    In this document, a new list is being published which contains the 
name and last known address of one entity. This reflects the removal of 
two entities from the list of 3 entities published on March 20, 2002.
    Customs is soliciting information regarding the whereabouts of the 
following one foreign entity concerning alleged violations of section 
592. Its name and last known address are listed below (the parenthesis 
following the listing sets forth the month and year in which the name 
of the company was first published in the Federal Register):


[[Page 63731]]


Lai Cheong Gloves Factory, Kar Wah Industrial Building, 8 Leung Yip 
Street, Room 101, 1-F, Yuen Long, New Territories, Hong Kong. (3/00)

    If you have any information as to a correct mailing address for the 
above-named firm, please send that information to the Assistant 
Commissioner, Office of Field Operations, U.S. Customs Service, 1300 
Pennsylvania Avenue, NW., Washington, DC 20229.

    Dated: October 9, 2002.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 02-26123 Filed 10-11-02; 8:45 am]
BILLING CODE 4820-02-P