[Federal Register Volume 73, Number 142 (Wednesday, July 23, 2008)]
[Rules and Regulations]
[Pages 42679-42681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16799]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 10, 24, 102, 162, 163 and 178

[Docket No. USCBP-2007-0063; CBP Dec. 08-28]
RIN 1505-AB81


United States-Bahrain Free Trade Agreement

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

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule, with two technical 
corrections, interim amendments to title 19 of the Code of Federal 
Regulations which were published in the Federal Register on October 16, 
2007, as CBP Dec. 07-81 to implement the preferential tariff treatment 
and other customs-related provisions of the United States-Bahrain Free 
Trade Agreement entered into by the United States and the Kingdom of 
Bahrain.

DATES: This final rule is effective on August 22, 2008.

FOR FURTHER INFORMATION CONTACT: Textile Operational Aspects: Robert 
Abels, Office of International Trade, (202) 863-6503. Other Operational

[[Page 42680]]

Aspects: Heather Sykes, Office of International Trade, (202) 863-6099. 
Legal Aspects: Karen Greene, Office of International Trade, (202) 572-
8838.

SUPPLEMENTARY INFORMATION: On September 14, 2004, the United States and 
the Kingdom of Bahrain (the ``Parties'') signed the U.S.-Bahrain Free 
Trade Agreement (``BFTA''). The stated objectives of the BFTA include 
creating new employment opportunities and raising the standard of 
living for the citizens of the Parties by liberalizing and expanding 
trade between them; enhancing the competitiveness of the enterprises of 
the Parties in global markets; establishing clear and mutually 
advantageous rules governing trade between the Parties; eliminating 
bribery and corruption in international trade and investment; fostering 
creativity and innovation by improving technology and enhancing the 
protection and enforcement of intellectual property rights; 
strengthening the development and enforcement of labor and 
environmental laws and policies; and establishing an expanded free 
trade area in the Middle East, thereby contributing to economic 
liberalization and development in the region.
    The provisions of the US-BFTA were adopted by the United States 
with the enactment on January 11, 2006, of the United States-Bahrain 
Free Trade Area Implementation Act (the ``Act''), Public Law 109-169, 
119 Stat. 3581 (19 U.S.C. 3805 note). Section 205 of the Act requires 
that regulations be prescribed as necessary.
    On July 27, 2006, the President signed Proclamation 8039 to 
implement the provisions of the BFTA. The proclamation, which was 
published in the Federal Register on August 1, 2006 (71 FR 43635), 
modified the Harmonized Tariff Schedule of the United States 
(``HTSUS'') as set forth in Annexes I and II of Publication 3830 of the 
U.S. International Trade Commission. The modifications to the HTSUS 
included the addition of new General Note 30, incorporating the 
relevant BFTA 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 BFTA where the special 
program indicator ``BH'' appears in parenthesis in the ``Special'' rate 
of duty subcolumn. The modifications to the HTSUS also included a new 
Subchapter XIV to Chapter 99 to provide for temporary tariff rate 
quotas and applicable safeguards implemented by the BFTA.
    U.S. Customs and Border Protection (``CBP'') is responsible for 
administering the provisions of the BFTA and the Act that relate to the 
importation of goods into the United States from Bahrain. Those 
customs-related BFTA provisions that require implementation through 
regulation include certain tariff and non-tariff provisions within 
Chapter One (Initial Provisions and Definitions), Chapter Two (National 
Treatment and Market Access for Goods), Chapter Three (Textiles and 
Apparel), Chapter Four (Rules of Origin), and Chapter Five (Customs 
Administration). On October 16, 2007, CBP published CBP Dec. 07-81 in 
the Federal Register (72 FR 58511), setting forth interim amendments to 
implement the preferential tariff treatment and customs-related 
provisions of the BFTA. For a more detailed discussion of the BFTA 
provisions that were implemented by the interim amendments, please see 
CBP Dec. 07-81.
    In order to provide transparency and facilitate their use, the 
majority of the BFTA implementing regulations set forth in CBP Dec. 07-
81 were included within new Subpart N in Part 10 of the CBP regulations 
(19 CFR Part 10). However, in those cases in which BFTA implementation 
was more appropriate in the context of an existing regulatory 
provision, the BFTA regulatory text was incorporated in an existing 
part within the CBP regulations. CBP Dec. 07-81 also set forth several 
cross-references and other consequential changes to existing regulatory 
provisions to clarify the relationship between those existing 
provisions and the new BFTA implementing regulations.
    Although the interim regulatory amendments were promulgated without 
prior public notice and comment procedures and took effect on October 
16, 2007, CBP Dec. 07-81 provided for the submission of public comments 
which would be considered before adoption of the interim regulations as 
a final rule, and the prescribed public comment period closed on 
December 17, 2007. No comments were received in response to the 
solicitation of public comments in CBP Dec. 07-81.

Conclusion

    Accordingly, CBP has determined that the interim regulations 
published as CBP Dec. 07-81 should be adopted as a final rule with two 
technical corrections. The technical corrections to the interim 
regulatory text effected by this final rule involve Sec.  10.804, which 
concerns the declaration, and Sec.  10.822, which concerns the 
transshipment of non-Originating fabric or apparel goods. Paragraph 
(a)(2)(vi) of Sec.  10.804 has been revised by adding the word ``the'' 
immediately before the word ``territory'' and paragraph (b) of Sec.  
10.822 has been revised by replacing the word ``terms'' with the word 
``term''.

Executive Order 12866

    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 and, therefore, is specifically exempted by section 3(d)(2) 
of Executive Order 12866.

Regulatory Flexibility Act

    CBP Dec. 07-81 was issued as an interim rule rather than a notice 
of proposed rulemaking because CBP had determined that the interim 
regulations involve a foreign affairs function of the United States 
pursuant to Sec.  553(a)(1) of the APA. Because no notice of proposed 
rulemaking was required, the provisions of the Regulatory Flexibility 
Act, as amended (5 U.S.C. 601 et seq.), do not apply. Accordingly, this 
final rule is not subject to the regulatory analysis requirements or 
other requirements of 5 U.S.C. 603 and 604.

Paperwork Reduction Act

    The collection of information in this final rule has previously 
been reviewed and 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 1651-0130. The collections of 
information in these regulations are in Sec. Sec.  10.803, 10.804, 
10.818, and 10.821. This information is required in connection with 
claims for preferential tariff treatment and for the purpose of the 
exercise of other rights under the BFTA and the Act and will be used by 
CBP to determine eligibility for a tariff preference or other rights or 
benefits under the BFTA and the Act. The likely respondents are 
business organizations including importers, exporters, and 
manufacturers.
    The estimated average annual burden associated with the collection 
of information in this final rule is 0.2 hours per respondent or record 
keeper. Under the Paperwork Reduction Act, an agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless it displays a valid OMB control number.

Signing Authority

    This document is being issued in accordance with Sec.  0.1(a)(1) of 
the CBP Regulations (19 CFR 0.1(a)(1)) pertaining to the authority of 
the

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Secretary of the Treasury (or his/her delegate) to approve regulations 
related to certain customs revenue functions.

List of Subjects

19 CFR Part 10

    Alterations, Bonds, Customs duties and inspection, Exports, 
Imports, Preference programs, Repairs, Reporting and recordkeeping 
requirements, Trade agreements.

19 CFR Part 24

    Financial and accounting procedures.

19 CFR Part 102

    Customs duties and inspections, Imports, Reporting and 
recordkeeping requirements, Rules of Origin, Trade agreements.

19 CFR Part 162

    Administrative practice and procedure, Customs duties and 
inspection, Penalties, Trade agreements.

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, the interim rule amending Parts 10, 24, 102, 162, 163, and 
178 of the CBP regulations (19 CFR Parts 10, 24, 102, 162, 163, and 
178), which was published at 72 FR 58511 on October 16, 2007, is 
adopted as a final rule with two technical corrections as discussed 
above and set forth below.

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

0
1. The general authority citation for Part 10 and the specific 
authority for Subpart N continue 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;
* * * * *

    Section 10.801 through 10.829 also issued under 19 U.S.C. 1202 
(General Note 30, HTSUS) and Public Law 109-169, 119 Stat. 3581 (19 
U.S.C. 3805 note).


Sec.  10.804  [Amended]

0
2. In Sec.  10.804, paragraph (a)(2)(vi) is amended by adding the word 
``the'' immediately before the word ``territory''.


Sec.  10.822  [Amended]

0
3. In Sec.  10.822, paragraph (b) is amended by removing the word 
``terms'' in the first sentence and adding, in its place, the word 
``term''.

Jayson P. Ahern,
Acting Commissioner, U.S. Customs and Border Protection.
    Approved: July 17, 2008.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. E8-16799 Filed 7-22-08; 8:45 am]
BILLING CODE 9111-14-P