Export Certificates for Beef Subject to Tariff-Rate Quota

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR PART 132

[T.D. 95-58]

RIN 1515-AB73

Export Certificates for Beef Subject to Tariff-Rate Quota

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Interim rule; solicitation of comments.

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SUMMARY: This document amends the Customs Regulations on an interim

basis in order to set forth the form and manner by which an importer

makes a declaration that a valid export certificate is in effect for

imported beef which is the subject of a tariff-rate quota and the

product of a participating country, as defined in interim regulations

of the United States Trade Representative.

DATES: Interim rule effective August 1, 1995; comments must be received

on or before October 2, 1995.

ADDRESSES: Written comments (preferably in triplicate) may be addressed

to the Regulations Branch, Office of Regulations and Rulings, U.S.

Customs Service, 1301 Constitution Avenue, NW., Washington, DC 20229.

Comments may be inspected at the Regulations Branch, Office of

Regulations and Rulings, Franklin Court, 1099 14th Street, NW., Suite

4000, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Karen Cooper, Quota Branch, (202) 927-

5401.

SUPPLEMENTARY INFORMATION:

Background

As a result of the Uruguay Round Agreements, approved by Congress

in section 101 of the Uruguay Round Agreements Act (Pub. L. 103-465),

the President, by Presidential Proclamation No. 6763, established a

tariff-rate quota for imported beef.

Briefly, under a tariff-rate quota, the United States applies one

tariff rate, known as the in-quota tariff rate, to imports of a product

up to a particular amount, known as the in-quota quantity, and another,

higher rate, known as the over-quota tariff rate, to imports of the

product in excess of the given amount. Of course, the preferential, in-

quota tariff rate would be applicable only to the extent that the in-

quota quantity for the country involved had not been exceeded.

The specific imported beef, as well as the various countries,

eligible for the in-quota tariff rate are set forth in Additional U.S.

Note 3, Schedule XX, Chapter 2, of the Harmonized Tariff Schedule of

the United States. The eligible countries which may export such beef to

the United States and avail themselves of the preferential, in-quota

tariff rate include Australia, New Zealand and Japan.

As part of the implementation of the tariff-rate quota for beef,

the United States, specifically, the United States Trade Representative

(USTR), is offering these exporting countries that have an allocation

of the in-quota quantity the opportunity to use export certificates for

their qualifying beef exports to the United States. Although countries

that have an allocation of the in-quota quantity are referred to in the

statutory law as ``participating countries'', for purposes of this

interim rule, a participating country constitutes an allocated country

that has been authorized to participate in the export certificate

program. Notably, New Zealand has already requested the opportunity to

participate in the export certificate program.

While a country does not need to participate in the export

certificate program in order to receive the in-quota

[[Page 39109]]

tariff rate for its share of the in-quota quantity, using export

certificates provides an effective and expeditious means of assuring an

exporting country that only those exports that it intends for the

United States market are counted against its in-quota allocation, which

helps ensure that such exports do not disrupt the orderly marketing of

beef in the United States.

An exporting country using export certificates in this regard must

notify the USTR and provide the necessary supporting information.

Customs will then be responsible for ensuring that no imports of beef

from that country are counted against the country's in-quota allocation

unless such beef is covered by a proper export certificate.

Accordingly, the USTR has undertaken interim rulemaking in this

matter (15 CFR part 2012) (60 FR 15229, March 23, 1995). In addition,

along with the interim rulemaking of the USTR, Customs is issuing this

interim rule in order to set forth the form and manner by which an

importer declares that a valid export certificate exists, including a

unique number therefor which must be referenced on the entry, or

withdrawal from warehouse, for consumption. This interim rule also sets

forth the record retention period for the certificate and requires the

submission of such certificate to Customs upon request.

Comments

Before adopting this interim regulation as a final rule,

consideration will be given to any written comments timely submitted to

Customs. Comments submitted will be available for public inspection in

accordance with the Freedom of Information Act (5 U.S.C. 552),

Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and

Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular

business days between the hours of 9 a.m. and 4:30 p.m. at the

Regulations Branch, Office of Regulations and Rulings, U.S. Customs

Service, Franklin Court, 1099 14th Street, NW., Washington, DC.

Inapplicability of Notice and Delayed Effective Date Requirements

Pursuant to the provisions of 5 U.S.C. 553(a), public notice is

inapplicable to this interim rule because it is within the foreign

affairs function of the United States. Furthermore, for the above

reason, pursuant to 5 U.S.C. 553 (d)(1) and (d)(3), there is no need

for a delayed effective date.

Executive Order 12866

Because this document involves a foreign affairs function of the

United States and implements an international agreement, it is not

subject to the provisions of E.O. 12866.

Regulatory Flexibility Act

Because no notice of proposed rulemaking is required for interim

regulations, the provisions of the Regulatory Flexibility Act (5 U.S.C.

601 et seq.) do not apply.

Drafting Information

The principal author of this document was Russell Berger, Office of

Regulations and Rulings, U.S. Customs Service. However, personnel from

other offices participated in its development.

List of Subjects in 19 CFR Part 132

Customs duties and inspection, Imports, Postal service, Quotas.

Amendment to the Regulations

Accordingly, chapter I of title 19, Code of Federal Regulations (19

CFR ch. I), is amended as set forth below.

PART 132--QUOTAS

1. The general authority citation for part 132 continues to read as

follows, and specific sectional authority for Sec. 132.15 is added, to

read as follows:

Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized

Tariff Schedule of the United States (HTSUS)), 1623, 1624.

Sec. 132.15 also issued under 19 U.S.C. 1484, 1508, and Schedule

XX, HTSUS.

2. Part 132 is amended by adding a new Sec. 132.15 to read as

follows:

Sec. 132.15 Export certificate for beef subject to tariff-rate quota.

(a) Requirement. In order to claim the in-quota tariff rate of duty

on beef, defined in 15 CFR 2012.2(a), that is the product of a

participating country, defined in 15 CFR 2012.2(e), the importer must

possess a valid export certificate at the time that such beef is

entered, or withdrawn from warehouse for consumption. The importer

shall record the unique identifying number of the export certificate on

the entry summary or the warehouse withdrawal (CF 7501, column 34).

(b) Validity of certificate. The export certificate, to be valid,

must meet the requirements of 15 CFR 2012.3(b), and with respect to the

requirement of 15 CFR 2012.3(b)(3) that the certificate be distinct and

uniquely identifiable, the certificate must have a distinct and unique

identifying number composed of three elements set forth in the

following order:

(1) The last digit of the year for which the export certificate is

in effect;

(2) The 2-digit ISO country of origin code from Annex B of the

HTSUS which identifies the participating country (see Sec. 142.42(d) of

this chapter); and

(3) Any 6-digit number issued by the participating country with

respect to the export certificate.

(c) Retention and submission of certificate to Customs.

(1) Retention. The export certificate must be retained by the

importer for a period of at least 5 years from the date of entry, or

withdrawal from warehouse, for consumption (see Sec. 162.1c of this

chapter).

(2) Submission to Customs. The importer shall submit a copy of the

export certificate to Customs upon request.

Approved: July 25, 1995.

George J. Weise,

Commissioner of Customs.

Dennis M. O'Connell,

Acting Deputy Assistant Secretary of the Treasury.

[FR Doc. 95-18814 Filed 7-31-95; 8:45 am]

BILLING CODE 4820-02-P