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

[T.D. 98--10]

RIN 1515-AC03

Bilateral Carnet Agreement Between the American Institute in

Taiwan and the Taipei Economic and Cultural Representative Office

AGENCY: Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations which apply to

carnets to reflect a 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.

EFFECTIVE DATE: February 27, 1998.

FOR FURTHER INFORMATION CONTACT: Sharon Goodson or Dennis Sequeira,

International Organizations and Agreements Division, U.S. Customs, 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 A.T.A. (Admission Temporaire--

Temporary Admission) 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

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. This agreement was negotiated pursuant to the authority

contained in 22 U.S.C. 3305.

On November 4, 1996, Customs published a Notice of Proposed

Rulemaking in the Federal Register (61 FR 56645) which proposed

amending the Customs Regulations to reflect the TECRO/AIT Carnet and

solicited comments on the proposal. No comments were received in

response to the publication. After further consideration, Customs has

determined to proceed to amend the regulations as proposed.

A Notice informing the public of the decision of the Commissioner

of Customs regarding the selection of an issuing and guaranteeing

association for the TECRO/AIT carnet will be made in a separate

publication in the Federal Register.

Regulatory Flexibility Act

Insofar as the 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 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 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

Common carriers, Customs duties and inspection, Exports, Surety

bonds.

19 CFR Part 114

Customs duties and inspection, Exports, Trade agreements.

Amendments to the Regulations

Parts 10, 18 and 114 of the Customs Regulations (19 CFR parts 10,

18 and 114) are 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 (General Note 20, Harmonized

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

1623, 1624, 3314.

* * * * *

Sec. 10.31 [Amended]

2. Section 10.31 is amended by adding in paragraphs (a)(1) and

(a)(2) the phrase ``or a TECRO/AIT carnet'' immediately after the words

``A.T.A. carnet''.

Sec. 10.39 [Amended]

3. Section 10.39(d)(2) is amended 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.

* * * * *

Sec. 18.1 [Amended]

2. Section 18.1(a)(3) is amended by adding the phrase ``or TECRO/

AIT'' immediately after the abbreviation ``A.T.A.'' each time it

appears.

Sec. 18.8 [Amended]

3. Section 18.8(e)(3) is amended by adding the phrase ``or TECRO/

AIT'' immediately after the abbreviation ``A.T.A.'' each time it

appears.

[[Page 4168]]

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. In Sec. 114.1, paragraphs (b) and (c) are amended by adding the

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

Convention'' each time they appear, and a new paragraph (g) is added 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.

3. Section 114.2 is amended by revising the section heading and the

introductory text 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 TECRO/AIT Carnet for the Temporary Admission of Goods

(hereinafter referred to as the Agreement).

Sec. 114.3 [Amended]

4. In Sec. 114.3, the introductory text in paragraph (a) and

paragraph (a)(2) are amended by adding the words ``or Agreement''

immediately after the word ``Convention'' each time it appears.

Sec. 114.11 [Amended]

5. Section 114.11 is amended by adding the words ``or Agreement''

immediately after the word ``Convention'' each time it appears.

6. Section 114.22 is amended 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.

* * * * *

7. Section 114.23 is amended 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.

Sec. 114.24 [Amended]

8. Section 114.24 is amended by adding the phrase ``or TECRO/AIT''

immediately after the abbreviation ``A.T.A.''.

Sec. 114.25 [Amended]

9. Section 114.25 is amended by adding the phrase ``or TECRO/AIT''

immediately after the abbreviation ``A.T.A.''.

Sec. 114.26 [Amended]

10. In Sec. 114.26, paragraphs (a) and (b) are amended by adding

the phrase ``or TECRO/AIT'' immediately after the abbreviation

``A.T.A.'' each time it appears.

Sec. 114.31 [Amended]

11. Section 114.31(b) is amended by adding the phrase ``or TECRO/

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

Sec. 114.32 [Amended]

12. Section 114.32 is amended 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''.

Sec. 114.33 [Amended]

13. Section 114.33 is amended by adding the words ``or Agreement''

immediately after the word ``Convention''.

Sec. 114.34 [Amended]

14. Section 114.34 is amended 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.

George J. Weise,

Commissioner of Customs.

Approved: August 22, 1997.

Dennis M. O'Connell,

Acting Deputy Assistant Secretary of the Treasury.

[FR Doc. 98-1950 Filed 1-27-98; 8:45 am]

BILLING CODE 4820-02-P