North American Free Trade Agreement

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 12, 24, 123, 134, 162, 174, 177, 178, 181 and 191

[T.D. 95-68]

RIN 1515-AB33

North American Free Trade Agreement

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

ACTION: Final rule; correction.

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SUMMARY: This document makes a correction to the document published in

the Federal Register that adopts as a final rule, with some changes,

interim amendments to the Customs Regulations to implement the

preferential tariff treatment and other Customs-related provisions of

the North American Free Trade Agreement (NAFTA) and the North American

Free Trade Agreement Implementation Act. The correction concerns the

discussion of a comment in the Background portion of the document

regarding the calculation of NAFTA drawback.

EFFECTIVE DATE: This correction is effective October 1, 1995.

FOR FURTHER INFORMATION CONTACT: William Rosoff, Entry Rulings Branch

(202-482-7040).

SUPPLEMENTARY INFORMATION:

Background

On September 6, 1995, Customs published in the Federal Register (60

FR 46334) T.D. 95-68 to adopt as a final rule, with some changes,

interim amendments to the Customs Regulations implementing the

preferential tariff treatment and other Customs-related provisions of

the North American Free Trade Agreement (NAFTA) and the North American

Free Trade Agreement Implementation Act, Public Law 103-182, 107 Stat.

2057. These final NAFTA implementing regulations take effect on October

1, 1995.

The SUPPLEMENTARY INFORMATION portion of T.D. 95-68 included a

detailed discussion of the public comments submitted to Customs on the

interim NAFTA implementing regulations. One such comment concerned

interim Sec. 181.44(b) and stated, with reference to a specific

example, that the regulation was unclear as to the calculation of NAFTA

drawback (that is, with regard to how the required duty comparison is

to be made) when two or more components are used in the process of

manufacture. The Customs response to this comment included a general

statement of the principle to be applied and also stated that a new

paragraph (b) was being added to Sec. 181.44 to set forth the relative

value calculation and individual comparison principle.

On further review of the response to the submitted comment, Customs

has determined that the response neither specifically addressed the

example provided in the comment nor adequately expressed the principle

reflected in the new paragraph (b) text. This document corrects the

Customs response in question accordingly.

Correction of Publication

In the document published in the Federal Register as T.D. 95-68 on

September 6, 1995 (60 FR 46334), on page 46339, under the heading

``Section 181.44(b)'', the paragraph beginning at the bottom of the

first column and ending at the top of the second column before the

example is corrected to read as follows:

Customs response: With respect to the duty comparison referred to

in the comment, the comparison should be made between the total duty

paid on all imported materials or component parts and the duty paid on

the finished article exported to Canada or Mexico: In the example cited

by the commenter, the total duty of $6.00 paid on the two imported

parts would be compared to the $5.00 in Canadian or Mexican duty paid

on the exported finished article, resulting in $5.00 in drawback. Where

multiple finished articles are produced from one imported component or

material, relative value will be used to determine how the comparison

is to be made between the duty paid on the imported component or

material and the duty paid on each individual exported finished

article. Section 181.44, as set forth below, has been modified by

redesignating paragraphs (b)-(e) as (c)-(f) and adding a new paragraph

(b) which sets forth the relative value calculation and individual

comparison principle and includes the following example to illustrate

the rule where multiple articles are produced from one component or

material:

Dated: September 14, 1995.

Harvey B. Fox,

Acting Assistant Commissioner, Office of Regulations and Rulings.

[FR Doc. 95-23269 Filed 9-19-95; 8:45 am]

BILLING CODE 4820-02-P