[Federal Register Volume 73, Number 165 (Monday, August 25, 2008)]
[Rules and Regulations]
[Pages 49934-49939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-19641]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

[Docket No. USCBP-2008-0052; CBP Dec. 08-32]

19 CFR Parts 12 and 163

RIN 1505-AB98


Entry Requirements for Certain Softwood Lumber Products Exported 
From Any Country Into the United States

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

ACTION: Interim rule; solicitation of comments.

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SUMMARY: This document sets forth interim amendments to title 19 of the 
Code of Federal Regulations (CFR) that prescribe special entry 
requirements applicable to certain softwood lumber and softwood lumber 
products exported from any country into the United States. The softwood 
lumber and softwood lumber products subject to these interim entry 
requirements are those described in section 804(a) within Title VIII 
(Softwood Lumber Act of 2008 or ``the Act'') of the Tariff Act of 1930, 
as added by section 3301 of Title III, Subtitle D, of the Food, 
Conservation, and Energy Act of 2008 (Pub. L. 110-246, enacted June 18, 
2008). Within Title VIII, section 803 requires the President to 
establish and maintain an importer declaration program with respect to 
the importation of certain softwood lumber and softwood lumber products 
and prescribes special entry requirements whereby importers must submit 
the export price, estimated export charge, if any, and an importer 
declaration with the entry summary. There are also new recordkeeping 
requirements applicable to certain imports of softwood lumber home 
packages and kits which are subject to declaration requirements, but 
which are not subject to the softwood lumber importer declaration 
program of section 803 of the Act. These interim amendments set forth 
the procedural and documentation requirements necessary to implement 
the entry requirements specified in the statute.

DATES: This interim rule is effective on September 18, 2008. Comments 
must be received on or before October 24, 2008.

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 No. USCBP 
2008-0052.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, 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, Office of International Trade, 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 Joseph Clark at (202) 572-8768.

FOR FURTHER INFORMATION CONTACT: Joseph M. Rees, Director, Trade 
Agreements and Communications Division, Office of International Trade, 
Tel: (202) 863-6065.

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. Customs and Border Protection (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 in developing these procedures will reference a 
specific portion of the interim rule, explain the reason for any 
recommended change, and include data, information, or authority that 
supports such recommended change.

Background

I. Softwood Lumber Act of 2008: Importer Declaration Program

    Section 3301, within Title III, Subtitle D, of the Food, 
Conservation, and Energy Act of 2008 (Pub. L. 110-246) was enacted June 
18, 2008, and amends the Tariff Act of 1930 (19 U.S.C. 1202 et seq.) by 
adding a new Title VIII, entitled the ``Softwood Lumber Act of 2008'' 
(``the Act''). The Act requires the President to establish and maintain 
an importer declaration program with respect to the importation of 
certain softwood lumber and softwood lumber products and prescribes 
special entry requirements whereby importers must provide the export 
price, estimated export charge, if any, and an importer declaration 
with the entry summary documentation. The Act also imposes new 
recordkeeping requirements applicable to certain imports of softwood 
lumber home packages and kits.
    Title VIII is comprised of sections 801 through 809, which set 
forth the components of the softwood lumber importer declaration 
program. These sections, in pertinent part:
     Define certain terms and phrases applicable to the program 
(section 802).
     Prescribe entry requirements and the establishment of an 
electronic record thereof (section 803).
     Establish the scope of the program and require the 
importer to retain and produce documentation pertaining to the entry of 
certain softwood lumber home packages and kits (section 804).

[[Page 49935]]

     Require the Department of Commerce to make monthly 
determinations as to export charges to be collected by a country of 
export from exporters of covered softwood lumber products to ensure 
compliance with any international agreements entered into by that 
country and the United States (section 805).
     Require the Secretary of the Treasury to conduct 
reconciliations to ensure the proper implementation and operation of 
international agreements entered into between a country of export of 
softwood lumber or softwood lumber products described in section 804(a) 
and the United States. The Secretary will reconcile: (1) The export 
price declared by a United States importer pursuant to section 
803(b)(1) with the export price reported to the United States by the 
country of export, if any; and (2) the export price declared by a 
United States importer pursuant to section 803(b)(1) with the revised 
export price reported to the United States by the country of export, if 
any (section 806).
     Require the Secretary of the Treasury to periodically 
verify the declarations made by a United States importer pursuant to 
section 803(c), including a determination as to whether the export 
price declared by a United States importer is the same as the export 
price provided on the export permit, if any, issued by the country of 
export and whether the estimated export charge declared by a United 
States importer pursuant to section 803(b)(2) is consistent with the 
determination published by the Under Secretary for International Trade 
of the Department of Commerce pursuant to section 805(b) (section 807).
     Prescribe applicable penalties (section 808).
     Require the submission of congressional reports by various 
government entities (section 809).

II. Softwood Lumber Act of 2008: Entry Requirements

    Section 803 requires importers of covered softwood lumber and 
softwood lumber products (i.e., those products described in section 
804(a) of the Act) to submit to CBP certain data with the entry 
summary. The required entry information consists of:
     The export price for each line of softwood lumber or 
softwood lumber products (as defined in section 802(5));
     The estimated export charge, if any, applicable to each 
line of softwood lumber or softwood lumber products as calculated by 
applying the percentage determined and published by the Under Secretary 
for International Trade of the Department of Commerce, pursuant to 
section 805, to the export price; and
     An importer declaration that verifies that ``the person 
has made appropriate inquiry, including seeking appropriate 
documentation from the exporter and consulting the determinations 
published by the Under Secretary for International Trade of the 
Department of Commerce pursuant to section 805(b)'' and, to the best of 
the person's knowledge and belief, the export price provided is 
determined in accordance with the definition set forth in section 
802(5), the export price provided is consistent with the export price 
provided on the export permit, if any, granted by the country of 
export, and the exporter has paid, or committed to pay, all export 
charges due in accordance with the volume, export price, and export 
charge rate or rates, if any, as calculated under an international 
agreement entered into by the country of export and the United States 
and consistent with the export charge determinations published by the 
Under Secretary for International Trade of the Department of Commerce.

III. Description of Softwood Lumber and Softwood Lumber Products 
Covered by the Softwood Lumber Act of 2008

    Section 804 of the Act sets forth the scope of softwood lumber and 
softwood lumber products covered by the importer declaration program 
established under section 803. All softwood lumber and softwood lumber 
products classified under subheading 4407.10.00, 4409.10.10, 
4409.10.20, or 4409.10.90 of the Harmonized Tariff Schedule of the 
United States (HTSUS) are subject to the importer declaration program 
established under section 803 including the following softwood lumber, 
flooring, and siding:
    (1) Coniferous wood, sawn or chipped lengthwise, sliced or peeled, 
whether or not planed, sanded, or finger-jointed, of a thickness 
exceeding 6 millimeters;
    (2) Coniferous wood siding (including strips and friezes for 
parquet flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like) 
along any of its edges or faces, whether or not planed, sanded, or 
finger-jointed;
    (3) Other coniferous wood (including strips and friezes for parquet 
flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like) 
along any of its edges or faces (other than wood moldings and wood 
dowel rods) whether or not planed, sanded, or finger-jointed;
    (4) Coniferous wood flooring (including strips and friezes for 
parquet flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like) 
along any of its edges or faces, whether or not planed, sanded, or 
finger-jointed; and
    (5) Coniferous drilled and notched lumber and angle cut lumber.
    In addition, any product classified under subheading 4409.10.05 of 
the HTSUS that is continually shaped along its end or side edges, and 
unless excepted or excluded from the declaration requirement, softwood 
lumber products that are stringers, radius-cut box-spring frame 
components, fence pickets, truss components, pallet components, and 
door and window frame parts classified under subheading 4418.90.46.95, 
4421.90.70.40, or 4421.90.97.40 of the HTSUS are covered by the Act.
    The following products are not subject to the importer declaration 
program established under section 803 because they are defined as 
excluded from the program:
    (1) Trusses and truss kits, properly classified under subheading 
4418.90 of the HTSUS;
    (2) I-joist beams;
    (3) Assembled box-spring frames;
    (4) Pallets and pallet kits, properly classified under subheading 
4415.20 of HTSUS;
    (5) Garage doors;
    (6) Edge-glued wood, properly classified under subheading 
4421.90.97.40 of the HTSUS;
    (7) Complete door frames;
    (8) Complete window frames;
    (9) Furniture;
    (10) Articles brought into the United States temporarily and for 
which an exemption from duty is claimed under subchapter XIII of 
chapter 98 of the HTSUS; and
    (11) Household and personal effects.
    Also, the following softwood lumber products are not subject to the 
importer declaration program established under section 803 because they 
are defined as excepted from the program:
    (1) Stringers (pallet components used for runners), if the 
stringers have at least two notches on the side, positioned at equal 
distance from the center, to properly accommodate forklift blades; and 
are properly classified under subheading 4421.90.97.40 of the HTSUS;
    (2) Box-spring frame kits, if the kits contain two wooden side 
rails; two wooden end (or top) rails; and varying numbers of wooden 
slats; and the side rails and the end rails are radius-cut at both 
ends. Box spring frame kits must

[[Page 49936]]

be individually packaged, and contain the exact number of wooden 
components needed to make the box-spring frame described on the entry 
documents, with no further processing required. None of the components 
contained in the package may exceed one inch in actual thickness or 83 
inches in length.
    (3) Radius-cut box-spring frame components, not exceeding one inch 
in actual thickness or 83 inches in length, ready for assembly without 
further processing, if radius cuts are present on both ends of the 
boards and are substantial cuts so as to completely round one corner.
    (4) Fence pickets requiring no further processing and properly 
classified under subheading 4421.90.70 of the HTSUS, one inch or less 
in actual thickness, up to eight inches wide, and six feet or less in 
length, and having finials or decorative cuttings that clearly identify 
them as fence pickets (in the case of dog-eared fence pickets, the 
corners of the boards shall be cut off so as to remove pieces of wood 
in the shape of isosceles right angle triangles with sides measuring 
\3/4\ of an inch or more).
    (5) Lumber originating in the United States that is exported to 
another country for minor processing and imported into the United 
States if the processing occurring in another country is limited to 
kiln drying, planing to create smooth-to-size board, and sanding; and 
the importer establishes to CBP's satisfaction upon entry that the 
lumber originated in the United States.
    (6) Any softwood lumber or softwood lumber product that originated 
in the United States, if the importer, exporter, foreign processor, or 
original United States producer establishes to CBP's satisfaction upon 
entry that the softwood lumber entered and documented as originating in 
the United States was first produced in the United States; and
    (7) Softwood lumber or softwood lumber products contained in a 
single family home package or kit, regardless of the classification 
under the HTSUS, if the importer declares that the following 
requirements have been met: (i) The package or kit constitutes a full 
package of the number of wooden pieces specified in the plan, design, 
or blueprint necessary to produce a home of at least 700 square feet 
produced to a specified plan, design, or blueprint; (ii) the package or 
kit contains all necessary internal and external doors and windows, 
nails, screws, glue, subfloor, sheathing, beams, posts, and connectors; 
and if included in the purchase contract, the decking, trim, drywall, 
and roof shingles specified in the plan, design, or blueprint; (iii) 
prior to importation, the package or kit is sold to a United States 
retailer that sells complete home packages or kits pursuant to a valid 
purchase contract referencing the particular home design, plan, or 
blueprint, and the contract is signed by a customer not affiliated with 
the importer; and (iv) softwood lumber products entered as part of the 
package or kit, whether in a single entry or multiple entries on 
multiple days, are to be used solely for the construction of the single 
family home specified by the home design, plan, or blueprint matching 
the CBP import entry.
    For each entry of softwood lumber products contained in a single 
family home package for which the importer declares that these four 
requirements are met, the importer must retain and make available to 
CBP upon request the following documentation:
    (1) A copy of the appropriate home design, plan, or blueprint 
matching the customs entry in the United States;
    (2) A purchase contract from a retailer of home kits or packages 
signed by a customer not affiliated with the importer;
    (3) A listing of all parts in the package or kit being entered into 
the United States that conforms to the home design, plan, or blueprint 
for which such parts are being imported; and
    (4) If a single contract involves multiple entries, an 
identification of all the items required to be listed under item (3) 
that are included in each individual shipment.

IV. Interim Amendments at 19 CFR 12.142 To Promulgate Softwood Lumber 
Importer Declaration Program

    In accordance with the Act's requirements, this document makes 
interim amendments to part 12 of title 19 of the CFR to provide an 
appropriate regulatory basis with respect to shipments of softwood 
lumber and softwood lumber products for the collection of export price, 
estimated export charge, if any, importer declaration and, if 
applicable, softwood lumber home packages and kits documentation.
    The interim amendments to 19 CFR part 12 set forth in this document 
add a new Sec.  12.142 (19 CFR 12.142) which requires the importer to 
electronically transmit the export price, the estimated export charge, 
if any, and the importer declaration on the entry summary in any case 
in which softwood lumber or softwood lumber products described in 
section 804(a) of the Act are imported into the United States (entries 
of softwood lumber and softwood lumber products for which a Certificate 
of Origin has been issued from Canada's Maritime Lumber Bureau must be 
submitted to CBP in paper. See 19 CFR 12.140(c)). The new interim 
amendment also requires importers of softwood lumber home packages and 
kits described in section 804(c)(7)(A)(i) through (iv) of the Act to 
retain, and provide to CBP upon request, certain documentation 
pertaining to, inter alia, design plans, purchase contracts, and part 
listings.
    It is noted that section 803(b)(1) and (2) of the Act require that 
information regarding the export price and estimated export charge be 
submitted for ``each shipment.'' Accordingly, the interim amendment 
requires that the requisite information associated with each shipment 
be included on a single line on the entry summary.

V. Recordkeeping Requirements

    Any substantiating documentation that supports an importer's 
softwood lumber declaration, and copies of the softwood lumber home 
packages and kits documentation, are subject to the recordkeeping 
provisions set forth in part 163 of title 19 to the CFR.
    The ``List of Records Required for the Entry of Merchandise'' set 
forth in the Appendix to part 163 of title 19 of the CFR (19 CFR part 
163) is amended by this document to include the softwood lumber home 
packages and kits documentation requirement mandated by the Act, as 
well as any substantiating documentation that supports an importer's 
softwood lumber declaration. This document amends section IV of the 
Appendix by adding a new Sec.  12.142 that lists softwood lumber home 
packages and kits documentation and any substantiating documentation 
that supports an importer's softwood lumber importer declaration as new 
entry records.

VI. Penalties

    Failure to timely provide the required softwood lumber entry data 
will constitute a breach of the terms of the importer's bond under 
Sec.  113.62(b) of title 19 of the CFR (19 CFR 113.62) and could give 
rise to a claim for liquidated damages under the bond equal to the 
value of the merchandise involved in the default.

VII. Other Applicable Entry Requirements

    The softwood lumber entry data elements required by these interim 
regulations are not otherwise collected by CBP at time of entry and are 
in addition to the entry and entry summary information otherwise 
required for

[[Page 49937]]

importation into the United States as per section 484 of the Tariff Act 
of 1930, as amended (19 U.S.C. 1484).
    In addition, imports of softwood lumber or softwood lumber products 
from Canada may also be subject to Sec.  12.140 of title 19 to the Code 
of Federal Regulations (19 CFR 12.140), which sets forth the entry 
requirements prescribed by the Softwood Lumber Agreement entered into 
between the Governments of the United States and Canada on September 
12, 2006 (``SLA 2006''). In this regard, it is also noted that even 
those importers of softwood lumber and softwood lumber products that 
are exempt from the terms of 19 CFR 12.140 remain subject to the 
softwood lumber entry requirements contained in 19 CFR 12.142.

Inapplicability of Notice and Delayed Effective Date Requirements

    Pursuant to 5 U.S.C. 553(b)(B) and (d)(3), CBP has determined that 
it would be impracticable and contrary to the public interest to delay 
publication of this rule in final form pending an opportunity for 
public comment and that there is good cause for this interim rule to 
become effective upon providing less then 30 days notice. These interim 
amendments conform the regulations to the entry requirements set forth 
in Title VIII of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et 
seq.), which go into effect August 18, 2008, and inform the public of 
the procedures necessary to comply with the statutory requirements. For 
these reasons, pursuant to the provisions of 5 U.S.C. 553(d)(3), CBP 
finds that there is good cause for dispensing with a 30-day delayed 
effective date.

Regulatory Flexibility Act and Executive Order 12866

    Because no notice of proposed rulemaking is required for this 
interim rule, the provisions of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.) do not apply. Further, these amendments do not meet 
the criteria for a ``significant regulatory action'' as specified in 
E.O. 12866.

Paperwork Reduction Act

    The collections of information in this document are contained in 
Sec.  12.142(c) and (d) (19 CFR 12.142(c) and (d)). This information is 
used by CBP to fulfill its information collection obligations under 
Title VIII of the Tariff Act of 1930, as added by section 3301 within 
Title III, Subtitle D, of the Food, Conservation, and Energy Act of 
2008 (Pub. L. 110-246), whereby importers of certain softwood lumber 
and softwood lumber products are required to submit the export price, 
estimated export charge, if any, and an importer declaration with the 
entry summary information or, where applicable, to submit additional 
documentation required for home packages and kits. The likely 
respondents are business organizations including importers and brokers.
    The collection of information associated with the entry summary 
documentation (CBP Form 7501) was previously approved by the Office of 
Management and Budget under control number 1651-0052. In accordance 
with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), CBP has 
submitted to OMB for review the following adjustments to the 
information provided to OMB for the previously approved OMB control 
number to account for the changes in this interim rule. 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 control number 
assigned by OMB.
    Estimated annual reporting and/or recordkeeping burden: 266,000 
hours.
    Number of responses per respondent and/or recordkeeper: 1,905.
    Estimated number of respondents and/or recordkeepers: 210.
    Estimated annual frequency of responses: 400,000.
    Estimated time per response: 40 minutes (.333 hours).
    Comments on the collection of information should be sent 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, Office of 
International Trade, Customs and Border Protection, 1300 Pennsylvania 
Avenue, NW. (Mint Annex), Washington, DC 20229. Comments should be 
submitted within the time frame that comments are due regarding the 
substance of the interim rule.
    Comments are invited on: (a) Whether the collection of information 
is necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility; (b) the 
accuracy of the agency's estimate of the burden of the collection of 
the information; (c) ways to enhance the quality, utility, and clarity 
of the information to be collected; (d) ways to minimize the burden of 
the collection of information on respondents, including through the use 
of automated collection techniques or other forms of information 
technology; and (e) estimates of capital or startup costs and costs of 
operations, maintenance, and purchase of services to provide 
information.

Signing Authority

    This document is being issued in accordance with 19 CFR 0.1(a)(1).

List of Subjects

19 CFR Part 12

    Bonds, Customs duties and inspection, Entry of merchandise, 
Imports, Prohibited merchandise, Reporting and recordkeeping 
requirements, Restricted merchandise.

19 CFR Part 163

    Customs duties and inspection, Reporting and recordkeeping 
requirements.

Amendment to the Regulations

0
For the reasons stated above, parts 12 and 163 of title 19 of the Code 
of Federal Regulations (19 CFR parts 12 and 163) are amended as set 
forth below.

PART 12--SPECIAL CLASSES OF MERCHANDISE

0
1. The authority citation for part 12 continues and a new specific 
authority for Sec.  12.142 is added to read in part as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), 
Harmonized Tariff Schedule of the United States (HTSUS)), 1624;
* * * * *
    Sec.  12.142 also issued under 19 U.S.C. 1484; section 3301 of 
Pub. L. 110-246.
* * * * *


Sec.  12.140  [Undesignated center heading amended]

0
2. The undesignated center heading ``Softwood Lumber from Canada'' 
preceding Sec.  12.140 is amended by removing the words ``from 
Canada''.

0
3. A new Sec.  12.142 is added to read as follows:


Sec.  12.142  Entry of softwood lumber and softwood lumber products 
from any country into the United States.

    (a) In general. This section, pursuant to the ``Softwood Lumber Act 
of 2008'' (``the Act'') (Title VIII of the Tariff Act of 1930, as 
amended (19 U.S.C. 1202 et seq.)), prescribes entry requirements 
applicable to certain imports of softwood lumber and softwood lumber 
products exported from any country into the United States.
    (b) Softwood lumber products covered. The softwood lumber and 
softwood lumber products covered by this section are those products 
described in section 804(a) of Title VIII

[[Page 49938]]

of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et seq.).
    (c) Entry requirements for shipments subject to the importer 
declaration program. For each shipment of softwood lumber or softwood 
lumber products described in section 804(a) of Title VIII to the Tariff 
Act of 1930, as amended, (19 U.S.C. 1202 et seq.) that is entered or 
withdrawn from warehouse for consumption, in the customs territory of 
the United States, the following information must be electronically 
submitted to CBP (except that, pursuant to 19 CFR 12.140(c), entries of 
softwood lumber and softwood lumber products for which a Certificate of 
Origin has been issued from Canada's Maritime Lumber Bureau must be 
submitted to CBP in paper):
    (1) Export price. Each importer must provide the export price, 
expressed in U.S. dollars, on the entry summary in the designated space 
provided on the CBP Form 7501.
    (i) For purposes of this section, ``export price'' means one of the 
following:
    (A) In the case of softwood lumber or a softwood lumber product 
that has undergone only primary processing, the value that would be 
determined F.O.B. at the facility where the product underwent the last 
primary processing before export.
    (B) In the case of softwood lumber or a softwood lumber product 
that underwent the last remanufacturing before export by a manufacturer 
who does not hold tenure rights provided by the country of export, did 
not acquire standing timber directly from the country of export, and is 
not related to the person who holds tenure rights or acquired standing 
timber directly from the country of export, the value that would be 
determined F.O.B. at the facility where the softwood lumber or softwood 
lumber product underwent the last primary processing.
    (C) In the case of softwood lumber or a softwood lumber product 
that underwent the last remanufacturing before export by a manufacturer 
who holds tenure rights provided by the country of export, acquired 
standing timber directly from the country of export, or is related to 
the person who holds tenure rights or acquired standing timber directly 
from the country of export, the value that would be determined F.O.B. 
at the facility where the softwood lumber or softwood lumber product 
underwent the last processing before export.
    (D) In the case of softwood lumber or a softwood lumber product 
described in paragraphs (c)(1)(i)(A), (B) or (C) of this section for 
which an F.O.B. value cannot be determined, the export price will be 
the market price for the identical softwood lumber or softwood lumber 
product sold in an arm's-length transaction in the country of export at 
approximately the same time as the exported softwood lumber or softwood 
lumber product. The market price will be determined in the following 
order of preference:
    (1) The market price for the softwood lumber or softwood lumber 
product sold at substantially the same level of trade (as described in 
19 CFR 351.412(c)) as the exported softwood lumber or softwood lumber 
product but in different quantities.
    (2) The market price for the softwood lumber or softwood lumber 
product sold at a different level of trade (as defined in 19 CFR 
351.412(c)) than the exported softwood lumber or softwood lumber 
product but in similar quantities.
    (3) The market price for the softwood lumber or softwood lumber 
product sold at a different level of trade (as defined in 19 CFR 
351.412(c)) than the exported softwood lumber or softwood lumber 
product and in different quantities.
    (ii) For purposes of paragraph (c)(1) of this section, the 
following definitions apply:
    (A) F.O.B. The term ``F.O.B.'' means a value consisting of all 
charges payable by a purchaser, including those charges incurred in the 
placement of merchandise on board of a conveyance for shipment, but 
does not include the actual shipping charges or any applicable export 
charges.
    (B) Related to the person. The term ``related to the person'' 
means:
    (1) A person bears a relationship to such other person described in 
section 152(a) of the Internal Revenue Code of 1986;
    (2) A person bears a relationship to such person described in 
section 267(b) of the Internal Revenue Code of 1986, except that ``5 
percent'' will be substituted for ``50 percent'' each place it appears;
    (3) The person and such other person are part of a controlled group 
of corporations, as that term is defined in section 1563(a) of the 
Internal Revenue Code of 1986, except that ``5 percent'' will be 
substituted for ``80 percent'' each place it appears;
    (4) The person is an officer or director of such other person; or
    (5) The person is the employer of such other person.
    (C) Tenure rights. The term ``tenure rights'' means rights to 
harvest timber from public land granted by the country of export.
    (2) Estimated export charge. (i) Each importer must provide the 
estimated export charge, if any, to be collected by the country 
(including any political subdivision of the country) from which the 
softwood lumber or softwood lumber product was exported pursuant to an 
international agreement entered into by that country and the United 
States as calculated by applying the percentage determined and 
published by the Under Secretary for International Trade of the 
Department of Commerce to the export price. Any applicable estimated 
export charge must be expressed in U.S. dollars and reported on the 
entry summary in the designated space.
    (ii) For purposes of this paragraph, the terms ``estimated export 
charge'' or ``export charge'' mean any tax, charge, or other fee 
collected by the country from which softwood lumber or a softwood 
lumber product, as described in section 804(a) within Title VIII of the 
Tariff Act of 1930 (19 U.S.C. 1202 et seq.), as amended, is exported 
pursuant to an international agreement entered into by that country and 
the United States.
    (3) Importer declaration. (i) Each importer, except as provided in 
paragraph (c)(3)(ii) of this section, must provide a softwood lumber 
declaration on the electronic entry summary by entering the letter code 
``Y'' in the first space of the field designated for the estimated 
export charge data.
    (ii) Each importer of softwood lumber and softwood lumber products 
for which a Certificate of Origin has been issued from Canada's 
Maritime Lumber Bureau must provide a softwood lumber declaration on 
the paper entry summary by entering the letter code ``Y'' in the first 
space of the field designated for the estimated export charge. See 19 
CFR 12.140(c),
    (iii) The letter code ``Y'' represents the importer's declaration 
to CBP that:
    (A) The importer has made appropriate inquiry, including seeking 
appropriate documentation from the exporter and consulting the 
determinations published by the Under Secretary for International Trade 
of the Department of Commerce pursuant to section 805(b) of Title VIII 
of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et seq.); and
    (B) To the best of the person's knowledge and belief:
    (1) The export price provided is determined in accordance with the 
definition set forth in section 802(5) of Title VIII of the Tariff Act 
of 1930, as amended (19 U.S.C. 1202 et seq.);
    (2) The export price provided is consistent with the export price 
provided on the export permit, if any, granted by the country of 
export; and

[[Page 49939]]

    (3) The exporter has paid, or committed to pay, all export charges 
due in accordance with the volume, export price, and export charge rate 
or rates, if any, as calculated under an international agreement 
entered into by the country of export and the United States and 
consistent with the export charge determinations published by the Under 
Secretary for International Trade of the Department of Commerce.
    (iv) Any substantiating documentation that supports an importer's 
softwood lumber declaration is subject to the recordkeeping provisions 
set forth in part 163 of title 19 to the CFR.
    (d) Entry requirements for home packages and kits--(1) Declaration 
and required documentation. Home packages and kits as described in 
section 804(c)(7)(A)(i) through (iv) of the Title VIII of the Tariff 
Act of 1930, as amended (19 U.S.C. 1202 et seq.) are not subject to the 
entry requirements set forth in paragraph (c) of this section. However, 
the importer is required to make a declaration pursuant to section 
804(c)(7)(B) and is required to retain and produce upon demand by CBP, 
the following documentation:
    (i) A copy of the appropriate home design, plan, or blueprint 
matching the customs entry in the United States.
    (ii) A purchase contract from a retailer of home kits or packages 
signed by a customer not affiliated with the importer.
    (iii) A listing of all parts in the package or kit being entered 
into the United States that conforms to the home design, plan, or 
blueprint for which such parts are being imported.
    (iv) If a single contract involved multiple entries, an 
identification of all the items required to be listed under paragraph 
(d)(1)(iii) of this section that are included in each individual 
shipment.
    (2) Records and retention. There is no requirement to present 
physical copies of the softwood lumber home packages and kits 
documentation to CBP at the time of filing the entry summary; however 
copies must be maintained in accordance with the applicable 
recordkeeping provisions set forth in part 163 of title 19 to the CFR.
    (e) Other softwood lumber entry requirements. Other entry 
requirements may be applicable to certain imports of softwood lumber or 
softwood lumber from Canada. Importers are advised to refer to Sec.  
12.140 (19 CFR 12.140) of this chapter for information regarding 
applicability and entry requirements.

PART 163--RECORDKEEPING

0
4. 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
5. The Appendix to part 163 is amended by adding, in numerical order, a 
listing for Sec.  12.142 under section IV to read as follows:

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

* * * * *
    IV. * * *


Sec.  12.142  Softwood Lumber Importer Declaration Supporting 
Documentation, Softwood Lumber Home Packages and Kits Documentation.

* * * * *

W. Ralph Basham,
Commissioner, U.S. Customs and Border Protection.
    Approved: August 20, 2008.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. E8-19641 Filed 8-22-08; 8:45 am]
BILLING CODE 9111-14-P