Bilateral Carnet Agreement Between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 18 and 114

RIN 1515-AC03

Bilateral Carnet Agreement Between the American Institute in

Taiwan and the Taipei Economic and Cultural Representative Office

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes amendments to those Customs Regulations

which apply to carnets to reflect a recently signed bilateral agreement

between the Taipei Economic and Cultural Representative in the United

States (TECRO) and the American Institute in Taiwan (AIT). This

agreement established a TECRO/AIT Carnet for the temporary admission of

goods, commercial samples and professional equipment.

DATES: Comments must be received on or before January 3, 1997.

ADDRESSES: Comments (preferably in triplicate) may be submitted to the

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

Service, Franklin Court, 1301 Constitution Avenue, NW., Washington, DC

20229, and may be inspected at Franklin Court, 1099 14th Street, NW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

[[Page 56646]]

Sharon Goodson or Dennis Sequeira, International Organizations and

Agreements Division, 202-927-0971.

SUPPLEMENTARY INFORMATION:

Background

A carnet is an international customs document, backed by an

internationally valid guarantee, which may be used for the entry of

articles under various customs procedures such as temporary importation

and transportation in bond. The carnet is used in place of the usual

national customs documentation and guarantees the payment of duties

(including taxes and associated penalties) which may become due if the

carnet requirements are not satisfied. The existence of a single

document rather than numerous national documents facilitates

international commerce.

The carnet guarantee is based on chains of national guaranteeing

associations established in the countries accepting the carnets. The

guaranteeing association is jointly and severally liable with the

carnet holder for payment of the sums due in the event of noncompliance

with the conditions or the procedures for which the carnet is used.

Benefits of the TECRO/AIT Carnet

In recent years, trade between the United States and Taiwan has

increased. It is expected that this trend will continue, and that such

trade can be facilitated through the use of carnets. However, Taiwan is

currently ineligible to accede to the ATA Carnet Convention, under

which carnets facilitate trade among more than fifty contracting

parties. Thus, Taiwan has sought access to the carnet facility through

the recently concluded TECRO/AIT Carnet Agreement. This agreement was

negotiated pursuant to the authority contained in 22 U.S.C. 3305.

A Notice informing the public that Customs is accepting

applications from parties desiring to undertake the obligation of an

issuing and guaranteeing association for the TECRO/AIT carnet agreement

that is the subject of this Notice of Proposed Rulemaking is also being

published in this issue of the Federal Register.

Comments

Before adopting this proposal, consideration will be given to any

written comments (preferably in triplicate) that are timely submitted

to Customs. All such comments received from the public pursuant to this

notice of proposed rulemaking 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 9:00 a.m. and 4:30 p.m., at the

Regulations Branch, 1099 14th Street, NW., Suite 4000, Washington, DC.

Regulatory Flexibility Act

Insofar as the proposed amendment is intended to facilitate

international trade and remove some existing impediments to the conduct

of business, pursuant to the provisions of the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.), it is certified that the amendment, if

adopted, will not have a significant economic impact on a substantial

number of small entities. Accordingly, it is not subject to the

regulatory analysis or other requirements of 5 U.S.C. 603 and 604.

Executive Order 12866

The proposed amendment does not meet the criteria for a

``significant regulatory action'' under E.O. 12866.

Drafting Information

The principal author of this document was Peter T. Lynch,

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

Service. However, personnel from other offices participated in its

development.

List of Subjects

19 CFR Part 10

Customs duties and inspection, Exports, Reporting and recordkeeping

requirements.

19 CFR Part 18

Customs duties and inspection, Common carriers, Surety bonds,

Exports.

19 CFR Part 114

Customs duties and inspection, Exports, Trade agreements.

Proposed Amendments to the Regulations

It is proposed to amend Parts 10, 18 and 114 of the Customs

Regulations (19 CFR parts 10, 18 and 114) 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 (General Note 20, Harmonized

Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508,

1623, 1624, 3314.

* * * * *

2. It is proposed to amend Sec. 10.31 by adding in paragraphs

(a)(1) and (a)(2) the phrase ``or a TECRO/AIT carnet'' immediately

after the words ``A.T.A. carnet''.

3. It is proposed to amend Sec. 10.39(d)(2) by adding the words

``or Agreement'' immediately after the phrase ``in the Convention''.

PART 18--TRANSPORTATION IN BOND AND MERCHANDISE IN TRANSIT

1. The general authority citation for Part 18 is revised to read as

follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20,

Harmonized Tariff Schedule of the United States), 1551, 1552, 1553,

1624.

* * * * *

2. It is proposed to amend Sec. 18.1 (a)(3) by adding the phrase

``or TECRO/AIT'' immediately after the abbreviation ``A.T.A.'' each

time it appears.

3. It is proposed to amend Sec. 18.8 (a)(3) by adding the phrase

``or TECRO/AIT'' immediately after the abbreviation ``A.T.A.'' each

time it appears.

PART 114--CARNETS

1. The authority citation for Part 114 is revised to read as

follows:

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

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

2. It is proposed to amend Sec. 114.1 (b) and (c) by adding the

phrase ``or bilateral Agreement'' immediately after the words ``Customs

Convention'' each time they appear, and by adding a new paragraph (g)

to read as follows:

Sec. 114.1 Definitions.

* * * * *

(g) TECRO/AIT Carnet. ``TECRO/AIT carnet'' means the document

issued pursuant to the Bilateral Agreement between the Taipei Economic

and Cultural Representative Office (TECRO) and the American Institute

in Taiwan (AIT) to cover the temporary admission of goods.

4. It is proposed to amend Sec. 114.2 by revising the section

heading and the introductory paragraph and by adding a new paragraph

(d) to read as follows:

Sec. 114.2 Customs Conventions and Agreements.

The regulations in this part relate to carnets provided for in the

following Customs Conventions and Agreements.

* * * * *

(d) Agreement Between The Taipei Economic and Cultural

Representative Office in the United States and The American Institute

in Taiwan on

[[Page 56647]]

TECRO/AIT Carnet for the Temporary Admission of Goods (hereinafter

referred to as the Agreement).

5. It is proposed to amend Sec. 114.3 (a) introductory text and

(a)(2) by adding the words ``or Agreement'' immediately after the word

``Convention'' each time it appears.

6. It is proposed to amend Sec. 114.11 by adding the words ``or

Agreement'' immediately after the word ``Convention'' each time it

appears.

7. It is proposed to amend Sec. 114.22 by redesignating paragraph

(d) as paragraph (e) and adding a new paragraph (d) to read as follows:

Sec. 114.22 Coverage of carnets.

* * * * *

(d) TECRO/AIT Carnet--(1) Use. The TECRO/AIT carnet is acceptable

for the following two categories of goods to be temporarily imported,

unless importation is prohibited under the laws and regulations of the

United States:

(i) Professional equipment; and

(ii) Commercial samples and advertising material imported for the

purpose of being shown or demonstrated with a view to soliciting

orders.

(2) Issue and use. (i) Issuing associations shall indicate on the

cover of the TECRO/AIT carnet the customs territory in which it is

valid and the name and address of the guaranteeing association.

(ii) The period fixed for re-exportation of goods imported under

cover of a TECRO/AIT carnet shall not in any case exceed the period of

validity of that carnet.

* * * * *

8. It is proposed to amend Sec. 114.23 by adding a new paragraph

(c) to read as follows:

Sec. 114.23 Maximum period.

* * * * *

(c) TECRO/AIT carnet. A TECRO/AIT carnet shall not be issued with a

period of validity exceeding one year from the date of issue. This

period of validity cannot be extended and must be shown on the front

cover of the carnet.

9. It is proposed to amend Sec. 114.24 by adding the phrase ``or

TECRO/AIT'' immediately after the abbreviation ``A.T.A.''.

10. It is proposed to amend Sec. 114.25 by adding the phrase ``or

TECRO/AIT'' immediately after the abbreviation ``A.T.A.''.

11. It is proposed to amend Sec. 114.26 (a) and (b) by adding the

phrase ``or TECRO/AIT'' immediately after the abbreviation ``A.T.A.''

each time it appears.

12. It is proposed to amend Sec. 114.31(b) by adding the phrase

``or TECRO/AIT'' immediately after the abbreviation ``A.T.A.''.

13. It is proposed to amend Sec. 114.32 by adding the phrase ``or

TECRO/AIT'' immediately after the abbreviation ``A.T.A.'' the first

time it appears and by adding the phrase ``or TECRO/AIT Agreement''

immediately after the phrase ``A.T.A. Convention''.

14. It is proposed to amend Sec. 114.33 by adding the words ``or

Agreement'' immediately after the word ``Convention''.

15. It is proposed to amend Sec. 114.34 by adding, in the heading

and text of paragraph (b), the phrase ``or TECRO/AIT'' immediately

after the abbreviation ``A.T.A.'' each time it appears.

Approved: October 2, 1996.

George J. Weise,

Commissioner of Customs.

Timothy E. Skud,

Acting Deputy Assistant Secretary of the Treasury.

[FR Doc. 96-28170 Filed 11-1-96; 8:45 am]

BILLING CODE 4820-02-M