[Federal Register Volume 72, Number 123 (Wednesday, June 27, 2007)]
[Rules and Regulations]
[Pages 35154-35160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-3133]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 10, 163, and 178

[USCBP-2007-0001]
[CBP Dec. 07-50]
RIN 1505-AB75


United States-Jordan Free Trade Agreement

AGENCIES: Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Interim regulations; solicitation of comments.

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SUMMARY: This document amends title 19 of the Code of Federal 
Regulations (``CFR'') on an interim basis to implement the preferential 
tariff treatment and other customs-related provisions of the U.S.-
Jordan Free Trade Agreement entered into by the United States and the 
Hashemite Kingdom of Jordan.

DATES: Interim rule effective June 27, 2007; comments must be received 
by August 27, 2007.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments via docket number 
USCBP-2007-0001.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, Office of International Trade, U.S. Customs and Border 
Protection, 1300 Pennsylvania Avenue, NW. (Mint Annex), Washington, DC 
20229.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Submitted comments 
may also be inspected during regular business days between the hours of 
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch, 
Regulations and Rulings, U.S. Customs and Border Protection, 799 9th 
Street, NW., 5th Floor, Washington, DC. Arrangements to inspect 
submitted comments should be made in advance by calling Mr. Joseph 
Clark at (202) 572-8768.

FOR FURTHER INFORMATION CONTACT:
    Operational Aspects: Seth Mazze, Office of International Trade 
(202-344-2634).
    Legal Aspects: Holly Files, Office of International Trade (202-572-
8817).

SUPPLEMENTARY INFORMATION:

Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of the 
interim rule. CBP also invites comments that relate to the economic, 
environmental, or federalism effects that might result from this 
interim rule. Comments that will provide the most assistance to CBP 
will reference a specific portion of the interim rule, explain the 
reason for any recommended change, and include data, information, or 
authority that support such recommended change. See ADDRESSES above for 
information on how to submit comments.

Background

    On October 24, 2000, the United States and the Hashemite Kingdom of 
Jordan (the ``Parties'') signed the U.S.-Jordan Free Trade Agreement 
(``US-JFTA''), which is designed to eliminate tariffs and other trade 
barriers between the two countries. The provisions of the US-JFTA were 
adopted by the United States with the enactment on September 28, 2001 
of the United States-Jordan Free Trade Area Implementation Act (the 
``Act''), Public Law 107-43, 115 Stat. 243 (19 U.S.C. 2112 note). On 
December 7, 2001, the President signed Proclamation 7512 to implement 
the provisions of the US-JFTA. The Proclamation, which was published in 
the Federal Register on December 13, 2001 (66 FR 64497), modified the 
Harmonized Tariff Schedule of the United States (``HTSUS'') as set 
forth in Annexes I and II of the Proclamation. The modifications to the 
HTSUS included the addition of new General Note 18, incorporating the 
relevant US-JFTA rules of origin as set forth in the Act, and the 
insertion throughout the HTSUS of the preferential duty rates 
applicable to individual products under the US-JFTA where the special 
program indicator ``JO'' appears in parenthesis in the ``Special'' rate 
of duty subcolumn.
    U.S. Customs and Border Protection (``CBP'') is responsible for 
administering the provisions of the US-JFTA and the Act that relate to 
the importation of goods into the United States from Jordan. Therefore, 
the regulations set forth in this document pertain specifically to US-
JFTA customs-related provisions, such as rules of origin, that govern 
the duty-free or reduced-duty treatment of products imported into the 
United States from Jordan. These rules do not confer origin or 
establish a criterion for determining the origin of imported goods for 
any other purpose. For example, origin determinations for country of 
origin marking purposes under 19 U.S.C. 1304 are not affected.
    Article 2 and Annex 2.2 of the US-JFTA set forth the rules of 
origin and documentary requirements that apply for purposes of 
obtaining preferential treatment under the US-JFTA. Annex 2.1 of the 
US-JFTA sets forth the terms for the immediate elimination or staged 
reduction of duties on products of Jordan, with all products to become 
duty free within a ten-year period (by the year 2010).
    Under Annex 2.2 of the US-JFTA and Sec.  102 of the Act, to be 
eligible for reduced or duty-free treatment under the US-JFTA, a good 
imported into the United States from Jordan must meet three basic 
requirements: (1) It must be imported directly from Jordan into the 
customs territory of the United States; (2) it must be a product of 
Jordan, i.e., it must be either wholly the growth, product, or 
manufacture of Jordan or a new or different article of commerce that 
has been grown, produced, or manufactured in Jordan; and (3) if it is a 
new or different article of commerce, it must have a minimum domestic 
content, i.e., at least 35 percent of its appraised value must be 
attributed to the cost or value of materials produced in Jordan plus 
the direct costs of processing operations performed in Jordan. Annex 
2.2 of the US-JFTA further provides that: (1) The cost or value of 
U.S.-produced materials may be counted toward the Jordanian domestic 
content requirement to a maximum of 15 percent of the appraised value 
of the imported good; and (2) simple combining or packaging operations 
or mere dilution with water or another substance will confer neither 
Jordanian origin on an imported good nor Jordanian or U.S. origin on a 
constituent material of an imported good.
    In addition, for purposes of demonstrating compliance with the 
origin criteria, Annex 2.2 of the US-

[[Page 35155]]

JFTA establishes the requirements for submitting a declaration, when 
requested by CBP, that provides all pertinent information concerning 
the production or manufacture of an imported good.
    In this document, CBP is setting forth in a new Subpart K in Part 
10 of title 19 of the Code of Federal Regulations (CBP regulations) on 
an interim basis, regulations to implement the preferential tariff 
treatment and other customs-related provisions of the US-JFTA.
    The interim regulations are discussed in detail below.

Discussion of Amendments

Part 10, Subpart K

General Provisions
    Section 10.701 outlines the scope of new Subpart K, Part 10, of the 
CBP regulations. This section also clarifies that, except where the 
context otherwise requires, the requirements contained in Subpart K, 
Part 10, are in addition to general administrative and enforcement 
provisions set forth elsewhere in the CBP regulations. Thus, for 
example, the specific merchandise entry requirements contained in 
Subpart K, Part 10, are in addition to the basic entry requirements 
contained in Parts 141-143 of the CBP regulations.
    Section 10.702 sets forth definitions of terms or expressions used 
in multiple contexts or places within Subpart K, Part 10. The 
definition of ``wholly the growth, product, or manufacture of Jordan'' 
in paragraph (r) reflects the definition set forth in Annex 2.2 of the 
US-JFTA except that reference is made to ``Jordan'' rather than to a 
``Party'' in order to reflect a U.S. import context. Additional 
definitions that apply in a more limited Subpart K, Part 10, context 
are set forth elsewhere with the substantive provisions to which they 
relate.
Import Requirements
    Section 10.703 sets forth the procedure for claiming US-JFTA 
preferential tariff treatment at the time of importation. Unlike 
certain other free trade agreements to which the United States is a 
Party, such as the North American Free Trade Agreement (NAFTA) and the 
United States-Chile Free Trade Agreement (US-CFTA), the US-JFTA does 
not specify a procedure for making a post-importation claim. Therefore, 
Subpart K, Part 10, contains no regulatory provisions governing such 
claims. However, a protest against an alleged error in the liquidation 
of an entry may be brought under the normal procedures to contest a 
denial of US-JFTA benefits (see Part 174, CBP regulations (19 CFR Part 
174)).
    Section 10.704, as provided in Annex 2.2, paragraph 10(b), of the 
US-JFTA, requires a U.S. importer, upon request, to submit a 
declaration setting forth all pertinent information concerning the 
production or manufacture of the good. Section 10.705 sets forth 
certain importer obligations regarding the truthfulness of information 
and documents submitted in support of a claim for preferential tariff 
treatment.
    Section 10.706 provides that the importer's declaration is not 
required for certain non-commercial or low-value importations.
    Section 10.707 implements the portion of Annex 2.2, paragraph 10(b) 
of the US-JFTA concerning the maintenance of records necessary for the 
preparation of the declaration.
    Section 10.708 provides for the denial of US-JFTA tariff benefits 
if the importer fails to comply with any of the requirements under 
Subpart K, Part 10, CBP regulations.
Rules of Origin
    Section 10.709 sets forth the basic country of origin rules for 
obtaining preferential tariff treatment under the US-JFTA, as set forth 
in Annex 2.2 of the US-JFTA, Sec.  102 of the Act, and General Note 18, 
HTSUS. Paragraph (a)(1) requires an eligible US-JFTA good to be either 
``wholly the growth, product, or manufacture of Jordan'' or ``new or 
different article of commerce which has been grown, produced, or 
manufactured in Jordan,'' reflecting standards set forth in Annex 2.2, 
paragraph 1(a), of the US-JFTA and Sec.  102(a)(1)(A)(ii) of the Act. 
Paragraph (a)(2) of Sec.  10.709 references the value-content 
requirement set forth in Annex 2.2, paragraph 1(c), of the US-JFTA and 
Sec.  102(a)(1)(B) of the Act.
    Paragraph (b)(1) of Sec.  10.709 implements Annex 2.2, paragraph 2, 
of the US-JFTA and Sec.  102(a)(2) of the Act, relating to the simple 
combining or packaging or mere dilution exceptions to the ``new or 
different article of commerce'' requirement. Since the language in the 
US-JFTA and the Act in this regard is identical to that used in the 
Caribbean Basin Economic Recovery Act (``CBERA'') (see 19 U.S.C. 
2703(a)(2)), paragraph (b)(1) incorporates by reference the examples 
and principles set forth in Sec.  10.195(a)(2) of CBP's implementing 
CBERA regulations (19 CFR 10.195(a)(2)). Paragraph (b)(2) reflects the 
exception to the ``new or different article of commerce'' requirement 
set forth in the footnote to Annex 2.2, paragraph 4, of the US-JFTA and 
in Sec.  102(d) of the Act, relating to the processing of certain 
fruits into juices.
    Paragraph (c) of Sec.  10.709 provides that the rules of origin for 
textile and apparel products found in Sec.  102.21 of the CBP 
regulations (19 CFR 102.21) will be used to determine whether textile 
and apparel goods from Jordan satisfy the ``wholly the growth, product, 
or manufacture'' or ``new or different article of commerce'' 
requirements of Sec.  10.709(a), consistent with Annex 2.2, paragraph 
9, of the US-JFTA and Sec.  102(c) of the Act.
    Section 10.710 sets forth provisions relating to the 35 percent 
value-content requirement of the US-JFTA. Paragraph (a) specifies the 
basic requirement contained in Annex 2.2, paragraph 1(c), of the US-
JFTA and Sec.  102(a)(1)(B)(i) of the Act.
    Paragraph (b) allows the inclusion of U.S.-produced materials up to 
15 percent of the appraised value, as provided for in Annex 2.2, 
paragraph 5, of the US-JFTA and Sec.  102(a)(1)(B)(ii) of the Act. 
Paragraph (c) concerns the cost or value of materials that may be 
applied toward satisfaction of the 35 percent value-content requirement 
and is based on provisions contained in the US-JFTA, the Act, and Sec.  
10.196 of CBP's CBERA regulations (19 CFR 10.196). Paragraph (c)(1) 
defines ``materials produced in Jordan'' in a manner similar to the 
approach taken in section 10.196(a) of CBP's CBERA regulations. 
Paragraph (c)(1)(ii) was specifically drafted to reflect: (1) The 
application of the simple combining or packaging or mere dilution 
language to materials, as provided in Annex 2.2, paragraph 2, of the 
US-JFTA; and (2) the country of origin language which also applies to 
materials under Annex 2.2, paragraph 4, of the US-JFTA. The last 
sentence of paragraph (c)(1)(ii) refers to the useful examples 
contained in Sec.  10.196(a) of CBP's CBERA regulations, and the words 
``except where the context otherwise requires'' are intended to alert 
the reader to the fact that some aspects of those examples apply only 
in a CBERA context. Paragraph (c)(2) sets forth the elements includable 
under the cost or value of materials, as provided in Annex 2.2, 
paragraph 6, of the US-JFTA.
    Paragraph (d) sets forth provisions regarding direct costs of 
processing operations for purposes of the 35 percent value-content 
requirement, as contained in Annex 2.2, paragraph 7, of the US-JFTA and 
Sec.  102(b) of the Act.
    Section 10.711 reflects the definition of ``imported directly,'' as 
set forth in Annex 2.2, paragraph 8, of the US-JFTA.

[[Page 35156]]

    Section 10.712 provides that claims for preferential tariff 
treatment under the US-JFTA will be subject to such verification as the 
CBP port director deems necessary.

Inapplicability of Notice and Delayed Effective Date Requirements

    Under the Administrative Procedure Act (``APA'') (5 U.S.C. 553), 
agencies generally are required to publish a notice of proposed 
rulemaking in the Federal Register that solicits public comment on the 
proposed regulatory amendments, consider public comments in deciding on 
the content of the final amendments, and publish the final amendments 
at least 30 days prior to their effective date. However, section 
553(a)(1) of the APA provides that the standard prior notice and 
comment procedures and delayed effective date provisions of 5 U.S.C. 
553(d) do not apply to an agency rulemaking to the extent that it 
involves a foreign affairs function of the United States. CBP has 
determined that these interim regulations involve a foreign affairs 
function of the United States because they implement preferential 
tariff treatment and related provisions of the US-JFTA. Therefore, the 
rulemaking requirements under the APA do not apply and this interim 
rule will be effective upon publication. However, CBP is soliciting 
comments in this interim rule and will consider all comments it 
receives before issuing a final rule.

Executive Order 12866 and Regulatory Flexibility Act

    CBP has determined that this document is not a regulation or rule 
subject to the provisions of Executive Order 12866 of September 30, 
1993 (58 FR 51735, October 1993), because it pertains to a foreign 
affairs function of the United States and implements an international 
agreement, as described above, and therefore is specifically exempted 
by section 3(d)(2) of Executive Order 12866. Because a notice of 
proposed rulemaking is not required under section 553(b) of the APA for 
the reasons described above, CBP notes that the provisions of the 
Regulatory Flexibility Act, as amended (5 U.S.C. 601 et seq.), do not 
apply to this rulemaking. Accordingly, CBP also notes that this interim 
rule is not subject to the regulatory analysis requirements or other 
requirements of 5 U.S.C. 603 and 604.

Paperwork Reduction Act

    These regulations are being issued without prior notice and public 
procedure pursuant to the Administrative Procedure Act (5 U.S.C. 553). 
For this reason, the collections of information contained in these 
regulations have been reviewed and, pending receipt and evaluation of 
public comments, approved by the Office of Management and Budget in 
accordance with the requirements of the Paperwork Reduction Act (44 
U.S.C. 3507) under control number 1651-0128.
    The collections of information in these regulations are in 
Sec. Sec.  10.703 and 10.704. This information is required in 
connection with claims for preferential tariff treatment and for the 
purpose of the exercise of other rights under the US-JFTA and the Act 
and will be used by CBP to determine eligibility for a tariff 
preference or other rights or benefits under the US-JFTA and the Act. 
The likely respondents are business organizations including importers, 
exporters and manufacturers.
    Estimated total annual reporting burden: 500.
    Estimated average annual burden per respondent: 12 minutes.
    Estimated number of respondents: 2,500.
    Estimated annual frequency of responses: 1.
    Comments concerning the collections of information and the accuracy 
of the estimated annual burden, and suggestions for reducing that 
burden, should be directed to the Office of Management and Budget, 
Attention: Desk Officer for the Department of the Treasury, Office of 
Information and Regulatory Affairs, Washington, DC 20503. A copy should 
also be sent to the Trade and Commercial Regulations Branch, 
Regulations and Rulings, U.S. Customs and Border Protection, 1300 
Pennsylvania Avenue, NW. (Mint Annex), Washington, DC 20229.

Signing Authority

    This document is being issued in accordance with section 0.1(a)(1) 
of the CBP Regulations (19 CFR 0.1(a)(1)) pertaining to the authority 
of the Secretary of the Treasury (or his/her delegate) to approve 
regulations related to certain customs revenue functions.

List of Subjects

19 CFR Part 10

    Customs duties and inspection, Exports, Imports, Preference 
programs, Reporting and recordkeeping requirements, Trade agreements 
(United States-Jordan Free Trade Agreement).

19 CFR Part 163

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

19 CFR Part 178

    Administrative practice and procedure, Exports, Imports, Reporting 
and recordkeeping requirements.

Amendments to the CBP Regulations

0
Accordingly, chapter I of title 19, Code of Federal Regulations (19 CFR 
chapter I), is amended as set forth below.

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

0
1. The general authority citation for part 10 continues to read and the 
specific authority for new Subpart K is added to read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508, 
1623, 1624, 3314;
* * * * *
    Sections 10.701 through 10.712 also issued under 19 U.S.C. 1202 
(General Note 18, HTSUS) and Pub. L. 107-43, 115 Stat. 243 (19 
U.S.C. 2112 note).


0
2. Part 10, CBP regulations, is amended by adding Subpart K to read as 
follows:
Subpart K--United States-Jordan Free Trade Agreement

General Provisions

Sec.
10.701 Scope.
10.702 Definitions.

Import Requirements

10.703 Filing of claim for preferential tariff treatment.
10.704 Declaration.
10.705 Importer obligations.
10.706 Declaration not required.
10.707 Maintenance of records.
10.708 Effect of noncompliance; failure to provide documentation 
regarding third-country transportation.

Rules of Origin

10.709 Country of origin criteria.
10.710 Value-content requirement.
10.711 Imported directly.

Origin Verifications

10.712 Verification of claim for preferential tariff treatment.

Subpart K--United States-Jordan Free Trade Agreement

General Provisions


Sec.  10.701  Scope.

    This subpart implements the duty preference and related customs 
provisions applicable to imported goods under the United States-Jordan 
Free

[[Page 35157]]

Trade Agreement (the US-JFTA) signed on October 24, 2000, and under the 
United States-Jordan Free Trade Area Implementation Act (the Act; 115 
Stat. 243). Except as otherwise specified in this subpart, the 
procedures and other requirements set forth in this subpart are in 
addition to the customs procedures and requirements of general 
application contained elsewhere in this chapter. Additional provisions 
implementing certain aspects of the US-JFTA are contained in Part 163 
of this chapter.


Sec.  10.702  Definitions.

    The following definitions apply for purposes of Sec. Sec.  10.701 
through 10.712:
    (a) Claim for preferential tariff treatment. ``Claim for 
preferential tariff treatment'' means a claim that a good is entitled 
to the duty rate applicable under the US-JFTA;
    (b) Customs authority. ``Customs authority'' means the competent 
authority that is responsible under the law of a country for the 
administration of customs laws and regulations;
    (c) Customs territory of the United States. ``Customs territory of 
the United States'' means the 50 states, the District of Columbia, and 
Puerto Rico;
    (d) Days. ``Days'' means calendar days unless otherwise specified;
    (e) Entered. ``Entered'' means entered, or withdrawn from warehouse 
for consumption, in the customs territory of the United States;
    (f) Good. ``Good'' means any merchandise, product, article, or 
material;
    (g) Harmonized System. ``Harmonized System'' means the Harmonized 
Commodity Description and Coding System, including its General Rules of 
Interpretation, Section Notes, and Chapter Notes, as adopted and 
implemented by the Parties in their respective tariff laws;
    (h) Heading. ``Heading'' means the first four digits in the tariff 
classification number under the Harmonized System;
    (i) HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the 
United States as promulgated by the U.S. International Trade 
Commission;
    (j) Material. ``Material'' means a good that is used in the 
production of another good;
    (k) New or different article of commerce. ``New or different 
article of commerce'' means a good that has been substantially 
transformed into a new and different article of commerce having a new 
name, character, or use distinct from the good or material from which 
it was so transformed;
    (l) Party. ``Party'' means the United States or the Hashemite 
Kingdom of Jordan;
    (m) Preferential tariff treatment. ``Preferential tariff 
treatment'' means the duty rate applicable under the US-JFTA;
    (n) Subheading. ``Subheading'' means the first six digits in the 
tariff classification number under the Harmonized System;
    (o) Territory. ``Territory'' means:
    (1) With respect to Jordan, the land, maritime and air space under 
its sovereignty, and the exclusive economic zone within which it 
exercises sovereign rights and jurisdiction in accordance with 
international law and its domestic law; and
    (2) With respect to the United States,
    (i) The customs territory of the United States, which includes the 
50 states, the District of Columbia, and Puerto Rico,
    (ii) The foreign trade zones located in the United States and 
Puerto Rico, and
    (iii) Any areas beyond the territorial seas of the United States 
within which, in accordance with international law and its domestic 
law, the United States may exercise rights with respect to the seabed 
and subsoil and their natural resources;
    (p) Textile or apparel good. ``Textile or apparel good'' means a 
good listed in the Annex to the Agreement on Textiles and Clothing 
(commonly referred to as ``the ATC''), which is part of the WTO 
Agreement;
    (q) WTO Agreement. ``WTO Agreement'' means the Marrakesh Agreement 
Establishing the World Trade Organization of April 15, 1994;
    (r) Wholly the growth, product, or manufacture of Jordan. ``Wholly 
the growth, product, or manufacture of Jordan'' refers both to any good 
which has been entirely grown, produced, or manufactured in Jordan and 
to all materials incorporated in a good which have been entirely grown, 
produced, or manufactured in Jordan, as distinguished from goods or 
materials imported into Jordan from another country, whether or not 
such goods or materials were substantially transformed into new or 
different articles of commerce after their importation into Jordan.

Import Requirements


Sec.  10.703  Filing of claim for preferential tariff treatment.

    An importer may make a claim for US-JFTA preferential tariff 
treatment by including on the entry summary, or equivalent 
documentation, the symbol ``JO'' as a prefix to the subheading of the 
HTSUS under which each qualifying good is classified, or by the method 
specified for equivalent reporting via an authorized electronic data 
interchange system.


Sec.  10.704  Declaration.

    (a) Contents. An importer who claims preferential tariff treatment 
for a good under the US-JFTA must submit, at the request of the port 
director, a declaration setting forth all pertinent information 
concerning the production or manufacture of the good. A declaration 
submitted to CBP under this paragraph:
    (1) Need not be in a prescribed format but must be in writing or 
must be transmitted electronically pursuant to any electronic means 
authorized by CBP for that purpose;
    (2) Must include the following information:
    (i) The legal name, address, telephone, and e-mail address (if any) 
of the importer of record of the good;
    (ii) The legal name, address, telephone, and e-mail address (if 
any) of the responsible official or authorized agent of the importer 
signing the declaration (if different from the information required by 
paragraph (a)(2)(i) of this section);
    (iii) The legal name, address, telephone and e-mail address (if 
any) of the exporter of the good (if different from the producer);
    (iv) The legal name, address, telephone and e-mail address (if any) 
of the producer of the good (if known);
    (v) A description of the good, quantity, numbers, and marks of 
packages, invoice numbers, and bills of lading;
    (vi) A description of the operations performed in the production of 
the good in Jordan and identification of the direct costs of processing 
operations;
    (vii) A description of any materials used in the production of the 
good that are wholly the growth, product, or manufacture of Jordan or 
the United States, and a statement as to the cost or value of such 
materials;
    (viii) A description of the operations performed on, and a 
statement as to the origin and cost or value of, any foreign materials 
used in the good that are claimed to have been sufficiently processed 
in Jordan so as to be materials produced in Jordan; and
    (ix) A description of the origin and cost or value of any foreign 
materials used in the good that have not been substantially transformed 
in Jordan.
    (3) Must include a statement, in substantially the following form:

    ``I certify that:
    The information on this document is true and accurate and I 
assume the responsibility for proving such representations. I 
understand that I am liable for any false statements or material 
omissions made on or in connection with this document;

[[Page 35158]]

    I agree to maintain, and present upon request, documentation 
necessary to support these representations;
    The goods comply with all the requirements for preferential 
tariff treatment specified for those goods in the United States-
Jordan Free Trade Agreement; and
    This document consists of ---- pages, including all 
attachments.''

    (b) Responsible official or agent. The declaration must be signed 
and dated by a responsible official of the importer or by the 
importer's authorized agent having knowledge of the relevant facts.
    (c) Language. The declaration must be completed in the English 
language.
    (d) Applicability of declaration. The declaration may be applicable 
to:
    (1) A single importation of a good into the United States, 
including a single shipment that results in the filing of one or more 
entries and a series of shipments that results in the filing of one 
entry; or
    (2) Multiple importations of identical goods into the United States 
that occur within a specified blanket period, not exceeding 12 months, 
set out in the declaration. For purposes of this paragraph, ``identical 
goods'' means goods that are the same in all respects relevant to the 
production that qualifies the goods for preferential tariff treatment.


Sec.  10.705  Importer obligations.

    (a) General. An importer who makes a claim for preferential tariff 
treatment under Sec.  10.703 of this subpart:
    (1) Will be deemed to have certified that the good is eligible for 
preferential tariff treatment under the US-JFTA:
    (2) Is responsible for the truthfulness of the information and data 
contained in the declaration provided for in Sec.  10.704 of this 
subpart;
    (3) Is responsible for submitting any supporting documents 
requested by CBP and for the truthfulness of the information contained 
in those documents. CBP will allow for the direct submission by the 
exporter or producer of business confidential or other sensitive 
information, including cost and sourcing information.
    (b) Information provided by exporter or producer. The fact that the 
importer has made a claim for preferential tariff treatment or prepared 
a declaration based on information provided by an exporter or producer 
will not relieve the importer of the responsibility referred to in 
paragraph (a) of this section.


Sec.  10.706  Declaration not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an importer will not be required to submit a declaration under 
Sec.  10.704 of this subpart for:
    (1) A non-commercial importation of a good; or
    (2) A commercial importation for which the value of the goods does 
not exceed U.S. $2,500.
    (b) Exception. If the port director determines that an importation 
described in paragraph (a) of this section may reasonably be considered 
to have been carried out or planned for the purpose of evading 
compliance with the rules and procedures governing claims for 
preference under the US-JFTA, the port director will notify the 
importer that for that importation the importer must submit to CBP a 
declaration. The importer must submit such a declaration within 30 days 
from the date of the notice. Failure to timely submit the declaration 
will result in denial of the claim for preferential tariff treatment.


Sec.  10.707  Maintenance of records.

    (a) General. An importer claiming preferential tariff treatment for 
a good under Sec.  10.703 of this subpart must maintain, for five years 
after the date of the claim for preferential tariff treatment, all 
records and documents necessary for the preparation of the declaration.
    (b) Applicability of other recordkeeping requirements. The records 
and documents referred to in paragraph (a) of this section are in 
addition to any other records required to be made, kept, and made 
available to CBP under Part 163 of this chapter.
    (c) Method of maintenance. The records and documents referred to in 
paragraph (a) of this section must be maintained by importers as 
provided in Sec.  163.5 of this chapter.


Sec.  10.708  Effect of noncompliance; failure to provide documentation 
regarding third-country transportation.

    (a) Effect of noncompliance. If the importer fails to comply with 
any requirement under this subpart, including submission of a complete 
declaration under Sec.  10.704 of this subpart, when requested, the 
port director may deny preferential tariff treatment to the imported 
good.
    (b) Failure to provide documentation regarding third country 
transportation. Where the requirements for preferential tariff 
treatment set forth elsewhere in this subpart are met, the port 
director nevertheless may deny preferential treatment to a good if the 
good is shipped through or transshipped in a country other than Jordan 
or the United States, and the importer of the good does not provide, at 
the request of the port director, evidence demonstrating to the 
satisfaction of the port director that the good was ``imported 
directly'', as that term is defined in Sec.  10.711(a) of this subpart.

Rules of Origin


Sec.  10.709  Country of origin criteria.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, a good imported directly from Jordan into the customs 
territory of the United States will be eligible for preferential tariff 
treatment under the US-JFTA only if:
    (1) The good is either:
    (i) Wholly the growth, product, or manufacture of Jordan; or
    (ii) A new or different article of commerce that has been grown, 
produced, or manufactured in Jordan; and
    (2) With respect to a good described in paragraph (a)(1)(ii) of 
this section, the good satisfies the value-content requirement 
specified in Sec.  10.710 of this subpart.
    (b) Exceptions--(1) Combining, packaging, and diluting operations. 
No good will be considered to meet the requirements of paragraph (a)(1) 
of this section by virtue of having merely undergone simple combining 
or packaging operations, or mere dilution with water or mere dilution 
with another substance that does not materially alter the 
characteristics of the good. The principles and examples set forth in 
Sec.  10.195(a)(2) of this part will apply equally for purposes of this 
paragraph.
    (2) Certain juices. A good will not be considered to meet the 
requirements of paragraph (a)(1) of this section if the good:
    (i) Is imported into Jordan, and, at the time of importation, would 
be classified in heading 0805, HTSUS; and
    (ii) Is processed in Jordan into a good classified in any of 
subheadings 2009.11 through 2009.30, HTSUS.
    (c) Textile and apparel goods. For purposes of determining whether 
a textile or apparel good meets the requirements of paragraph (a)(1) of 
this section, the provisions of Sec.  102.21 of this chapter will 
apply.


Sec.  10.710  Value-content requirement.

    (a) General. A good described in Sec.  10.709(a)(1)(ii) may be 
eligible for preferential tariff treatment under the US-JFTA only if 
the sum of the cost or value of the materials produced in Jordan, plus 
the direct costs of processing operations performed in Jordan, is not 
less than 35 percent of the appraised value of the good at the time it 
is entered.
    (b) Materials produced in the United States. For purposes of 
determining the percentage referred to paragraph (a) of

[[Page 35159]]

this section, an amount not to exceed 15 percent of the appraised value 
of the good at the time it is entered may be attributed to the cost or 
value of materials produced in the customs territory of the United 
States. A material is ``produced in the customs territory of the United 
States'' for purposes of this paragraph if it is either:
    (1) Wholly the growth, product, or manufacture of the United 
States; or
    (2) Subject to the exceptions specified in Sec.  10.709(b) of this 
subpart, substantially transformed in the United States into a new and 
different article of commerce that has a new name, character, or use, 
which is then used in Jordan in the production or manufacture of a new 
or different article of commerce that is imported into the United 
States. Except where the context otherwise requires, the examples set 
forth in Sec.  10.196(a) of this part will apply for purposes of this 
paragraph.
    (c) Cost or value of materials--(1) Materials produced in Jordan 
defined. For purposes of paragraph (a) of this section, the words 
``materials produced in Jordan'' refer to those materials incorporated 
into a good that are either:
    (i) Wholly the growth, product, or manufacture of Jordan; or
    (ii) Subject to the exceptions specified in Sec.  10.709(b) of this 
subpart, substantially transformed in Jordan into a new and different 
article of commerce that has a new name, character, or use, which is 
then used in Jordan in the production or manufacture of a new or 
different article of commerce that is imported into the United States. 
Except where the context otherwise requires, the examples set forth in 
Sec.  10.196(a) of this part will apply for purposes of this paragraph.
    (2) Determination of cost or value of materials. (i) Except as 
provided in paragraph (c)(2)(ii) of this section, the cost or value of 
materials produced in Jordan or in the United States includes:
    (A) The manufacturer's actual cost for the materials;
    (B) When not included in the manufacturer's actual cost for the 
materials, the freight, insurance, packing, and all other costs 
incurred in transporting the materials to the manufacturer's plant;
    (C) The actual cost of waste or spoilage, less the value of 
recoverable scrap; and
    (D) Taxes and/or duties imposed on the materials by a Party, 
provided they are not remitted upon exportation.
    (ii) Where a material is provided to the manufacturer without 
charge, or at less than fair market value, its cost or value will be 
determined by computing the sum of:
    (A) All expenses incurred in the growth, production, or manufacture 
of the material, including general expenses;
    (B) An amount for profit; and
    (C) Freight, insurance, packing, and all other costs incurred in 
transporting the material to the manufacturer's plant.
    (iii) If the pertinent information needed to compute the cost or 
value of a material is not available, the port director may ascertain 
or estimate the value thereof using all reasonable ways and means at 
his or her disposal.
    (d) Direct costs of processing operations--(1) Items included. For 
purposes of paragraph (a) of this section, the words ``direct costs of 
processing operations'' mean those costs either directly incurred in, 
or which can be reasonably allocated to, the growth, production, 
manufacture, or assembly of the specific goods under consideration. 
Such costs include, but are not limited to the following, to the extent 
that they are includable in the appraised value of the imported goods:
    (i) All actual labor costs involved in the growth, production, 
manufacture, or assembly of the specific goods, including fringe 
benefits, on-the-job training, and the cost of engineering, 
supervisory, quality control, and similar personnel;
    (ii) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific goods;
    (iii) Research, development, design, engineering, and blueprint 
costs insofar as they are allocable to the specific goods; and
    (iv) Costs of inspecting and testing the specific goods.
    (2) Items not included. For purposes of paragraph (a) of this 
section, the words ``direct costs of processing operations'' do not 
include items that are not directly attributable to the goods under 
consideration or are not costs of manufacturing the product. These 
include, but are not limited to:
    (i) Profit; and
    (ii) General expenses of doing business that either are not 
allocable to the specific goods or are not related to the growth, 
production, manufacture, or assembly of the goods, such as 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, or expenses.


Sec.  10.711  Imported directly.

    (a) General. To be eligible for preferential tariff treatment under 
the US-JFTA, a good must be imported directly from Jordan into the 
customs territory of the United States. For purposes of this 
requirement, the words ``imported directly'' mean:
    (1) Direct shipment from Jordan to the United States without 
passing through the territory of any intermediate country;
    (2) If shipment is from Jordan to the United States through the 
territory of an intermediate country, the goods in the shipment do not 
enter into the commerce of the intermediate country and the invoices, 
bills of lading, and other shipping documents show the United States as 
the final destination; or
    (3) If shipment is through an intermediate country and the invoices 
and other documents do not show the United States as the final 
destination, the goods in the shipment are imported directly only if 
they:
    (i) Remained under the control of the customs authority in the 
intermediate country;
    (ii) Did not enter into the commerce of the intermediate country 
except for the purpose of a sale other than at retail, provided that 
the goods are imported as a result of the original commercial 
transaction between the importer and the producer or the producer's 
sales agent; and
    (iii) Have not been subjected to operations other than loading and 
unloading, and other activities necessary to preserve the goods in good 
condition.
    (b) Documentary evidence. An importer making a claim for 
preferential tariff treatment under the US-JFTA may be required to 
demonstrate, to CBP's satisfaction, that the goods were ``imported 
directly'' as that term is defined in paragraph (a) of this section. An 
importer may demonstrate compliance with this section by submitting 
documentary evidence. Such evidence may include, but is not limited to, 
bills of lading, airway bills, packing lists, commercial invoices, 
receiving and inventory records, and customs entry and exit documents.

Origin Verifications


Sec.  10.712  Verification of claim for preferential treatment.

    A claim for preferential tariff treatment made under Sec.  10.703 
of this subpart, including any statements or other information 
submitted to CBP in support of the claim, will be subject to such 
verification as the port director deems necessary. In the event that 
the port director for any reason is prevented from verifying the claim, 
or is provided with insufficient information to verify or substantiate 
the claim, the port director may deny the claim for preferential tariff 
treatment.

[[Page 35160]]

PART 163--RECORDKEEPING

0
3. The authority citation for part 163 continues to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1484, 1508, 1509, 
1510,1624.
* * * * *

0
4. Section 163.1(a)(2) is amended by redesignating paragraph 
(a)(2)(viii) as (a)(2)(ix) and adding a new paragraph (viii) to read as 
follows:


Sec.  163.1  Definitions.

* * * * *
    (a) * * *
    (2) * * *
    (viii) The maintenance of any documentation that the importer may 
have in support of a claim for preferential tariff treatment under the 
United States-Jordan Free Trade Agreement (US-JFTA), including a US-
JFTA declaration.
* * * * *

0
5. The Appendix to part 163 is amended by adding a new listing under 
section IV in numerical order to read as follows:

Appendix to Part 163--Interim (a)(1)(A) List.

* * * * *
    IV. * * *
    Sec.  10.704 US-JFTA records that the importer may have in 
support of a US-JFTA claim for preferential tariff treatment, 
including an importer's declaration.
* * * * *

PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS

0
6. The authority citation for part 178 continues to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44 U.S.C. 3501 et seq.

0
7. Section 178.2 is amended by adding new listings for Sec. Sec.  
10.703 and 10.704 to the table in numerical order to read as follows:


Sec.  178.2  Listing of OMB control numbers.

----------------------------------------------------------------------------------------------------------------
                                                                                                         OMB
                       19 CFR section                                      Description               control No.
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
Sec.  Sec.   10.703 and 10.704.............................  Claim for preferential tariff            1651-0128.
                                                              treatment under the U.S.-Jordan Free
                                                              Trade Agreement.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *

Deborah J. Spero,
Acting Commissioner, Customs and Border Protection.
    Approved: June 21, 2007.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 07-3133 Filed 6-26-07; 8:45 am]
BILLING CODE 9111-14-P