[Federal Register Volume 84, Number 151 (Tuesday, August 6, 2019)]
[Rules and Regulations]
[Pages 38117-38118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16699]


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DEPARTMENT OF COMMERCE

International Trade Administration

15 CFR Part 315

[Docket No. 180223210-8210-01]
RIN 0625-AB14


Elimination of Regulations Implementing the Automotive Products 
Trade Act of 1965

AGENCY: International Trade Administration, U.S. Department of 
Commerce.

ACTION: Final rule.

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SUMMARY: Through this final rule, the International Trade 
Administration (ITA), U.S. Department of Commerce, removes the 
regulations implementing the Automotive Products Trade Act of 1965 
(Act). That statute implemented the 1965 Canada-United States 
Automotive Products Agreement (Auto Pact). Since the North American 
Free Trade Agreement (NAFTA) came into effect in 1994, trade in 
automotive products between the United States and Canada is no longer 
governed by the Auto Pact or the Act. Implementing regulations for the 
Act are thus obsolete and unnecessary.

DATES: This rule is effective August 6, 2019.

FOR FURTHER INFORMATION CONTACT: Scott Kennedy, Office of 
Transportation and Machinery, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Room 38032, Washington, DC 20230; telephone: 
(202) 482-1474.

SUPPLEMENTARY INFORMATION: 

Background

    In 1965, the United States and Canada entered into the Auto Pact 
concerning trade between Canada and the United States in automotive 
parts. Under the Auto Pact, the United States agreed to accord duty-
free treatment to imports of certain automotive products of Canada. 
Specifically, Annex B of the Auto Pact listed certain kinds of motor 
vehicles and fabricated components that would receive duty-free 
treatment upon entry into the United States, subject to a limitation 
relating to non-Canadian content. Annex B limited the duty-free 
treatment of automotive parts upon entry into the United States to 
those ``for use as original equipment in the manufacture of motor 
vehicles'' described in Annex B.
    The United States implemented the Auto Pact through the Automotive 
Products Trade Act of 1965, Public Law 89-283 (the Act). The Act gave 
the President the authority to proclaim modifications to the Tariff 
Schedules of the United States (tariff schedules), as provided in the 
Auto Pact. Section 404 of the Act defined the term ``original motor 
vehicle equipment'' as an imported Canadian article ``which has been 
obtained from a supplier in Canada under or pursuant to a written 
order, contract or letter of intent from a bona fide motor-vehicle 
manufacturer in the United States, and which is a fabricated component 
intended for use as original equipment in the manufacture in the United 
States of a motor vehicle.'' The Act directed the Secretary of Commerce 
to publish periodically in the Federal Register a list of bona fide 
motor-vehicle manufacturers. In 1980, the Department of Commerce 
promulgated regulations to establish a procedure by which a person 
could apply to be determined to be a bona fide motor-vehicle 
manufacturer (15 CFR part 315).
    Trade in automobiles and automotive products between the United 
States and Canada is now governed by the NAFTA, which went into effect 
on January 1, 1994. Imports of the products described in the Auto Pact 
and the Act now enter the United States duty-free, with no distinction 
based on the nature of the importer. The amendments to the tariff 
schedules proclaimed by the President on October 21, 1965, regarding 
bona fide motor-vehicle manufacturers, ceased to be relevant when the 
NAFTA went into effect. Since that date, no person has applied to be 
determined to be a bona fide motor-vehicle manufacturer, and the 
Secretary has published no listing in the Federal Register of bona fide 
motor-vehicle manufacturers. As a result, the regulations found at 15 
CFR part 315 are obsolete and unnecessary.

Classification

    This final rule was drafted in accordance with Executive Orders 
12866, 13563, and 13771. OMB has determined that this rule is not 
significant for purposes of Executive Orders 12866. This final rule to 
eliminate 15 CFR part 315 is a deregulatory action under Executive 
Order 13771. Since the regulation has not been utilized in almost 25 
years, there are no cost savings associated with this elimination.

Administrative Procedure Act and Regulatory Flexibility Act

    Pursuant to 5 U.S.C. 553(b)(B), there is good cause to waive prior 
notice and opportunity for public comment on this action, as notice and 
comment are unnecessary. This rule removes obsolete regulations that 
were superseded by the implementation of the NAFTA, and that will 
remain obsolete under the new United States-Mexico-Canada Agreement 
(USMCA), once that agreement is implemented. Therefore, public comment 
would serve no purpose and is unnecessary. There is also good cause 
under 5 U.S.C. 553(d)(3) to waive the 30-day delay in the date of 
effectiveness for this final rule. Because this rule does not alter the 
rights or responsibilities of any party, delaying implementation of 
this rule would serve no purpose.
    Because prior notice and opportunity for public comment are not 
required pursuant to 5 U.S.C. 553, or any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
do not apply. Therefore, a regulatory flexibility analysis has not been 
prepared.

Congressional Review Act

    This final rule is not major under the Congressional Review Act (5 
U.S.C. 801 et seq.).

Executive Order No. 13132

    This final rule does not contain policies that have federalism 
implications.

[[Page 38118]]

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA) 
requires that a Federal agency consider the impact of paperwork and 
other information collection burdens imposed on the public and obtain 
approval from OMB for each collection of information it conducts, 
sponsors, or requires through regulations. Notwithstanding any other 
provision of law, no person is required to respond to, nor shall any 
person be subject to a penalty for failure to comply with a collection 
of information subject to the PRA unless that collection displays a 
currently valid OMB Control Number. This final rule does not require 
the collection of any information.

List of Subjects in 15 CFR Part 315

    Canada, Customs duties and inspection, Imports, Motor vehicles.

    Dated: July 22, 2019.
Bart Meroney,
Senior Advisor to the Deputy Assistant Secretary for Manufacturing, 
International Trade Administration, U.S. Department of Commerce.

PART 315--[REMOVED AND RESERVED]

0
 For the reasons set out in the preamble, and under the authority of 5 
U.S.C. 301, we remove and reserve part 315 of title 15 of the Code of 
Federal Regulations.

[FR Doc. 2019-16699 Filed 8-5-19; 8:45 am]
 BILLING CODE 3510-GT-P