Export Certificates for Lamb Meat Subject to Tariff-Rate Quota

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 132 and 163

[T.D. 99-87]

RIN 1515-AC54

Export Certificates for Lamb Meat 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 to set forth the form and manner by which an importer establishes

that a valid export certificate is in effect for certain fresh, chilled

or frozen lamb meat that 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 (USTR). The export

certificate is necessary in this regard in

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order to enable the importer to claim the in-quota rate of duty on the

lamb meat.

DATES: Interim rule effective December 2, 1999. This interim rule is

applicable to all products entered or withdrawn from warehouse for

consumption on or after December 2, 1999. Comments must be received on

or before January 31, 2000.

ADDRESSES: Written comments may be addressed to and inspected at the

Regulations Branch, U.S. Customs Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: Cynthia Porter, Office of Field

Operations, (202-927-5399).

SUPPLEMENTARY INFORMATION:

Background

By Presidential Proclamation No. 7208 dated July 7, 1999, as

modified by Presidential Proclamation No. 7214 of July 30, 1999, the

President, acting under the authority of section 203 of the Trade Act

of 1974 (19 U.S.C. 2253), established a tariff-rate quota with respect

to certain fresh, chilled or frozen lamb meat exported to the United

States on or after July 22, 1999.

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 rate, to imports of a product in

excess of the given amount. The preferential, in-quota tariff rate

would be applicable only to the extent that the aggregate in-quota

quantity of a product allocated to a country had not been exceeded.

It is noted that the tariff-rate quota on lamb meat was established

in response to a determination by the U.S. International Trade

Commission under section 202 of the Trade Act of 1974 (19 U.S.C. 2252)

that lamb meat was being imported into the United States in such

increased quantities as to substantially threaten serious injury to the

domestic lamb meat industry. The tariff-rate quota is temporary in

duration, being established for a period of three years and one day. It

is intended to help facilitate efforts during this period by the

domestic lamb meat industry to adjust to the increased import

competition.

Specifically, the lamb meat covered by the tariff-rate quota

consists of fresh, chilled or frozen lamb meat that is classified in

subheading 0204.10.00, 0204.22.20, 0204.23.20, 0204.30.00, 0204.42.20,

or 0204.43.20 of the Harmonized Tariff Schedule of the United States

(HTSUS). In order to implement the tariff-rate quota for the described

lamb meat, Presidential Proclamation No. 7208 amended subchapter III of

Chapter 99, HTSUS, so as to list the in-quota quantities of lamb meat

allocated to those countries covered by the tariff-rate quota, together

with the in-quota and over-quota rates of duty applicable to the lamb

meat.

Under Presidential Proclamation No. 7214, the United States Trade

Representative (USTR) was given authority to administer the tariff-rate

quota on the imported lamb meat.

As part of the implementation of this tariff-rate quota, the USTR

is offering exporting countries that have an allocation of the in-quota

quantity the opportunity to use export certificates for their lamb meat

exports to the United States. While a country does not need to

participate in the export-certificate program in order to receive the

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

export certificates assures an exporting country that only those

exports that it intends for the United States market are counted

against its in-quota allocation, and it helps ensure that such imports

do not disrupt the orderly marketing of lamb meat in the United States.

The USTR has issued an interim rule establishing regulations for

this export-certificate program (15 CFR part 2014) (64 FR 56429;

October 20, 1999). To this end, an exporting country wishing to

participate in the export-certificate program must notify the USTR and

provide the necessary supporting information. As defined in the USTR

interim regulations (15 CFR 2014.2(c)), a participating country is a

country that has received an allocation of the in-quota quantity of the

tariff-rate quota, and that the USTR has determined, and has so

informed Customs, is eligible to use export certificates for their lamb

meat products exported to the United States. The USTR has stated that

it intends to publish a notice in the Federal Register whenever a

country becomes, or ceases to be, a participating country. In this

connection, Australia and New Zealand have already requested, and have

been approved by USTR, to use export certificates for their lamb meat

that is exported to the United States, as noted in the USTR interim

rule.

In accordance with the interim rulemaking of the USTR, Customs is

issuing this interim rule in order to set forth a new Sec. 132.16,

Customs Regulations (19 CFR 132.16), that prescribes the form and

manner by which an importer establishes that a valid export certificate

exists, including a unique number for the certificate that must be

referenced on the entry or withdrawal from warehouse for consumption.

This will ensure that no imports of the specified lamb meat products of

a participating country are counted against the country's in-quota

allocation unless the products are covered by a proper export

certificate. The export certificate is necessary in this regard in

order to enable the importer to claim the in-quota rate of duty on the

lamb meat.

In addition, the Interim (a)(1)(A) List set forth as an Appendix to

part 163, Customs Regulations (19 CFR part 163, Appendix), that lists

the records required for the entry of merchandise, is revised to make

reference to the requirement in Sec. 132.15, Customs Regulations (19

CFR 132.15) and in new Sec. 132.16, Customs Regulations (19 CFR

132.16), that an importer possess a valid export certificate,

respectively, for beef or lamb meat subject to a tariff-rate quota and

that is a product of a participating country, in order for the importer

to be able to claim the applicable in-quota rate of duty.

Comments

Before adopting this interim regulation as a final rule,

consideration will be given to any written comments that are timely

submitted to Customs. Customs specifically requests comments on the

clarity of this interim rule and how it may be made easier to

understand. 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 9:00 a.m. and 4:30 p.m. at the

Regulations Branch, U.S. Customs Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington DC.

Inapplicability of Notice and Delayed Effective Date Requirements,

the Regulatory Flexibility Act, and Executive Order 12866

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. Also, for the above reason,

there is no need for a delayed effective date under 5 U.S.C. 553(d).

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; and because this document involves a foreign

affairs function of the United States, it is not subject to the

provisions of E.O. 12866.

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Paperwork Reduction Act

The collections of information involved in this interim rule have

already been approved by the Office of Management and Budget (OMB) in

accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507)

and assigned OMB Control Numbers 1515-0065 (Entry summary and

continuation sheet) and 1515-0214 (General recordkeeping and record

production requirements). This rule does not propose any substantive

changes to the existing approved information collections.

An agency may not conduct or sponsor, and a person is not required

to respond to, a collection of information unless the collection of

information displays a valid control number assigned by OMB.

List of Subjects

19 CFR Part 132

Agriculture and agricultural products, Customs duties and

inspection, Quotas, Reporting and recordkeeping requirements.

19 CFR Part 163

Administrative practice and procedure, Customs duties and

inspection, Imports, Reporting and recordkeeping requirements.

Amendment to the Regulations

Accordingly, parts 132 and 163, Customs Regulations (19 CFR parts

132 and 163), are amended as set forth below.

PART 132--QUOTAS

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

follows, and the specific sectional authority under this part is

revised to read as follows:

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

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

Secs. 132.15 and 132.16 also issued under 19 U.S.C. 1202

(additional U.S. Note 3 to Chapter 2, HTSUS; and subchapter III of

Chapter 99, HTSUS, respectively), 1484, 1508.

Sec. 132.15 [Amended]

2. Section 132.15 is amended by removing from paragraph (c)(1) the

parenthetical, ``(see Sec. 162.1c of this chapter)'', and by adding, in

its place, the parenthetical, ``(see Sec. 163.4(a) of this chapter)''.

3. Part 132 is amended by adding a new Sec. 132.16 to read as

follows:

Sec. 132.16 Export certificate for lamb meat subject to tariff-rate

quota.

(a) Requirement. For fresh, chilled or frozen lamb meat classified

in HTSUS subheading 0204.10.00, 0204.22.20, 0204.23.20, 0204.30.00,

0204.42.20, or 0204.43.20, that is the subject of a tariff-rate quota

as provided in subchapter III of Chapter 99, HTSUS, and that is the

product of a participating country, as defined in 15 CFR 2014.2(c), the

importer must possess a valid export certificate in order to claim the

in-quota tariff rate of duty on the lamb meat at the time it is entered

or withdrawn from warehouse for consumption. The importer must record

the distinct and unique identifying number of the export certificate

for the lamb meat on the entry summary or warehouse withdrawal for

consumption (Customs Form 7501, column 34), or its electronic

equivalent.

(b) Validity of export certificate. To be valid, the export

certificate must meet the requirements of 15 CFR 2014.3(b), and with

respect to the requirement of 15 CFR 2014.3(b)(3), the export

certificate covering the lamb meat must have a distinctly and uniquely

identifiable number.

(c) Retention and production of certificate to Customs. The export

certificate is subject to the recordkeeping requirements of part 163 of

this chapter (19 CFR part 163). Specifically, the certificate must be

retained for a period of 5 years in accordance with Sec. 163.4(a) of

this chapter, and must be made available to Customs upon request in

accordance with Sec. 163.6(a) of this chapter.

PART 163--RECORDKEEPING

1. The authority citation for part 163 continues to read as

follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1484, 1508, 1509, 1510,

1624.

Appendix to Part 163 [Amended]

2. In the Appendix to part 163, under heading ``IV.'', the list of

documents/records or information required for entry of special

categories of merchandise is amended by adding the following in

appropriate numerical order:

Secs. 132.15, 132.16 Export certificates, respectively, for beef or

lamb meat subject to tariff-rate quota.

Approved: November 18, 1999.

Raymond W. Kelly,

Commissioner of Customs.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 99-31275 Filed 12-1-99; 8:45 am]

BILLING CODE 4820-02-P