[Federal Register Volume 74, Number 248 (Tuesday, December 29, 2009)]
[Rules and Regulations]
[Pages 68680-68681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-30737]



[[Page 68680]]

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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Part 10

[Docket No. USCBP-2009-0015; CBP Dec. 09-46]
RIN 1505-AC13


``Imported Directly'' Requirement Under the 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, without change, interim 
amendments to the U.S. Customs and Border Protection (CBP) regulations 
in title 19 of the Code of Federal Regulations (19 CFR) which were 
published in the Federal Register on May 22, 2009, as CBP Dec. 09-17 to 
change certain provisions relating to the requirement under the United 
States-Bahrain Free Trade Agreement (BFTA) that a good must be 
``imported directly'' from one BFTA Party to the other Party to qualify 
for preferential tariff treatment. The change involved removing the 
condition that a good passing through the territory of an intermediate 
country while en route from a Party to the other Party must remain 
under the control of the customs authority of the intermediate country. 
This change more closely conformed these regulatory provisions to the 
BFTA and the BFTA implementing statute.

DATES: This final rule is effective January 28, 2010.

FOR FURTHER INFORMATION CONTACT: Karen Greene, Regulations and Rulings, 
Office of International Trade, (202) 325-0041.

SUPPLEMENTARY INFORMATION: 

Background

    On September 14, 2004, the United States and the Kingdom of Bahrain 
(the Parties) signed the U.S.-Bahrain Free Trade Agreement (BFTA). The 
provisions of the 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).
    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. The majority of the BFTA implementing regulations were included 
within new subpart N in part 10 of the CBP regulations (19 CFR subpart 
N, part 10). In CBP Dec. 08-28, published in the Federal Register on 
July 23, 2008 (73 FR 42679), CBP adopted the interim regulations set 
forth in CBP Dec. 07-81 as a final rule with two technical corrections.
    Section 10.817(a) of the CBP regulations implementing the BFTA sets 
forth the basic requirement, found in Article 4.1 of the BFTA, that a 
good must be ``imported directly'' from the territory of a Party into 
the territory of the other Party to qualify as an originating good 
under the BFTA. In circumstances in which a shipment passes through the 
territory of a non-Party, Sec.  10.817(a)(2) provided (prior to the 
publication of the interim amendments set forth in CBP Dec. 09-17 on 
May 22, 2009) that a good will be considered to be ``imported 
directly'' only if the good: (i) Remained under the control of the 
customs authority of the non-Party; and (ii) did not undergo 
production, manufacturing, or any other operation outside the 
territories of the Parties, other than certain specified minor 
operations. Nearly identical language to that found in Sec.  10.817(a) 
appeared in Sec.  10.822(a), relating to the application of the 
``imported directly'' requirement to certain non-originating textile 
and apparel goods that qualify for preferential tariff treatment under 
an applicable tariff preference level (TPL).
    Article 4.9 of the BFTA provides that a good shall not be 
considered to be ``imported directly'' from the territory of the other 
Party if the good undergoes subsequent production, manufacturing, or 
any other operation outside the territories of the Parties, other than 
unloading, reloading, or any other operation necessary to preserve it 
in good condition or to transport the good to the territory of the 
other Party. Section 202(g) of the Act mirrors the language in Article 
4.9 of the Agreement. Neither the BFTA nor the Act includes a 
requirement that a good must remain under the control of the customs 
authority of a non-Party to qualify as having met the ``imported 
directly'' requirement when the good passes through the territory of a 
non-Party.
    To more closely conform paragraph (a)(2) of Sec. Sec.  10.817 and 
10.822, CBP regulations, to the Agreement and the Act, CBP amended 
these regulatory provisions on an interim basis in CBP Dec. 09-17, 
published in the Federal Register on May 22, 2009 (74 FR 23950), by 
removing the ``customs control'' requirement. Specifically, CBP Dec. 
09-17 removed paragraph (a)(2)(i) of Sec. Sec.  10.817 and 10.822 and 
incorporated the text of paragraph (a)(2)(ii) of Sec. Sec.  10.817 and 
10.822 into the paragraph (a)(2) introductory text of those sections.
    Although the interim regulatory amendments were promulgated without 
prior public notice and comment procedures and took effect on May 22, 
2009, CBP Dec. 09-17 provided for the submission of public comments 
that would be considered before adopting the interim regulations as a 
final rule. The prescribed public comment period closed on July 21, 
2009. No comments were received.

Conclusion

    Accordingly, CBP has decided to adopt the interim rule published on 
May 22, 2009, without change.

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

Regulatory Flexibility Act

    CBP Dec. 09-17 was published as an interim rule rather than as a 
notice of proposed rulemaking because, as noted above, the interim 
amendments involved a foreign affairs function of the United States. 
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.

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

List of Subjects in 19 CFR Part 10

    Customs duties and inspection, Exports, Imports, Preference 
programs, Trade agreements.

Amendments to the CBP Regulations

0
Accordingly, the interim rule amending part 10 of the CBP regulations

[[Page 68681]]

(19 CFR part 10), which was published at 74 FR 23950 on May 22, 2009, 
is adopted as a final rule without change.

    Approved: December 22, 2009.
Jayson P. Ahern,
Acting Commissioner, U.S. Customs and Border Protection.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. E9-30737 Filed 12-28-09; 8:45 am]
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