Duty-Free Treatment To Be Accorded the Reimportation of Certain Articles Originally Imported Duty Free

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 10

[T.D. 94-40]

RIN 1515-AB45

Duty-Free Treatment To Be Accorded the Reimportation of Certain

Articles Originally Imported Duty Free

AGENCY: Customs Service, Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations to implement a

provision of the Trade and Tariff Act of 1984 that extends duty-free

entry to the reimportation of certain articles originally imported duty

free.

EFFECTIVE DATE: April 13, 1994.

FOR FURTHER INFORMATION CONTACT: Burton Schlissel, Special

Classification Branch, Office of Regulations and Rulings, (202) 482-

6980.

SUPPLEMENTARY INFORMATION:

Background

For many years U.S. law, specifically, subheading 9801.00.20 of the

Harmonized Tariff Schedule of the United States (HTSUS) and its

predecessor tariff provision, item 801.00 of the Tariff Schedules of

the United States (TSUS), has not imposed a tariff on articles

reimported into the United States if, after exportation, they were not

advanced in value or improved in condition by any process of

manufacture or other means while abroad. This provision, in effect,

sought to avoid double taxation/duty of such articles.

Subsequent to the promulgation of item 801.00, TSUS, Congress

enacted two duty preference schemes--the Caribbean Basin Initiative or

CBI (enacted as the Caribbean Basin Economic Recovery Act (CBERA), 19

U.S.C. 2701-2706) and the Generalized System of Preferences or GSP (19

U.S.C. 2461-2466)--that also provide duty-free treatment for certain

imports from designated beneficiary developing countries (BDCs). Item

801.00, TSUS, however, was drafted in language that precluded its

application to articles that were entered duty free in the first

instance. Thus, item 801.00, TSUS, operates to frustrate the purpose of

those preference programs of encouraging development through trade.

The Trade and Tariff Act of 1984 (the Act), 19 U.S.C. 1654 note,

Public Law 98-573, 98 Stat. 2948, approved October 30, 1984, and

effective as provided, was enacted to change the tariff treatment

accorded certain articles and for other purposes. Section 118 of the

Act, entitled ``Reimportation of certain articles originally imported

duty free'' and effective November 14, 1984, sought to correct the

unanticipated discriminatory effects of item 801.00, TSUS, on eligible

products from BDCs by amending that provision to extend duty-free

treatment to goods which were previously entered free of duty pursuant

to the CBI and GSP preference programs.

Section 10.108 of the Customs Regulations (19 CFR 10.108) pertains

to the entry of reimported articles exported under lease, but has not

been amended to reflect the provisions of section 118 of the Act.

Accordingly, Sec. 10.108 is amended to enable articles initially

entered duty free under the CBI and GSP programs to be exported and

reimported duty free, provided the other requirements of subheading

9801.00.20 are complied with.

Inapplicability of Public Notice and Delayed Effective Date

Requirements, the Regulatory Flexibility Act, and Executive Order 12866

Because this amendment merely reflects a statutory requirement that

confers a benefit upon the public, pursuant to 5 U.S.C. 553(b)(B),

notice and public procedure thereon are not required. Further, for the

same reasons, good cause exists for dispensing with a delayed effective

date under 5 U.S.C. 553(d) (1) and (3). Since this document is not

subject to the notice and public procedure requirements of 5 U.S.C.

553, it is not subject to provisions of the Regulatory Flexibility Act

(5 U.S.C. 601 et seq.). This amendment is not a significant regulatory

action as specified in E.O. 12866.

Drafting Information

The principal author of this document was Gregory R. Vilders,

Regulations Branch.

List of Subjects in 19 CFR Part 10

Customs duties and inspection, Exports, Foreign relations, Imports,

Preference programs, Reporting and recordkeeping requirements, Trade

agreements (Caribbean Basin Initiative, Generalized System of

Preferences).

Amendment to the Regulations

To implement the provisions of section 118 of the Trade and Tariff

Act of 1984, part 10, Customs Regulations (19 CFR part 10), is amended

as set forth below:

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

ETC.

1. The general authority citation for part 10 continues to read as

follows:

Authority: 19 U.S.C. 66, 1202, 1481, 1484, 1498, 1508, 1623,

1624;

* * * * *

2. Section 10.108 is revised to read as follows:

Sec. 10.108 Entry of reimported articles exported under lease.

Free entry shall be accorded under subheading 9801.00.20,

Harmonized Tariff Schedule of the United States (HTSUS), whenever it is

established to the satisfaction of the district director that the

article for which free entry is claimed was duty paid on a previous

importation or was previously entered free of duty pursuant to the

Caribbean Basin Economic Recovery Act or Title V of the Trade Act of

1974, is being reimported without having been advanced in value or

improved in condition by any process of manufacture or other means, was

exported from the United States under a lease or similar use agreement,

and is being reimported by or for the account of the person who

imported it into, and exported it from, the United States.

Approved: March 29, 1994.

George J. Weise,

Commissioner of Customs.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 94-8808 Filed 4-12-94; 8:45 am]

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