United States-Chile Free Trade Agreement, 10868-10885 [05-4156]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• DEPARTMENT OF THE TREASURY
• Bureau of Customs and Border Protection
• Customs and Border Protection Bureau

[Federal Register Volume 70, Number 43 (Monday, March 7, 2005)]
[Rules and Regulations]
[Pages 10868-10885]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-4156]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 10, 24, 162, 163, 178 and 191

[CBP Dec. 05-07]
RIN 1505-AB47


United States-Chile Free Trade Agreement

AGENCY: U.S. Customs and Border Protection; Department of Homeland 
Security; Department of the Treasury.

ACTION: Interim regulations; solicitation of comments.

-----------------------------------------------------------------------

SUMMARY: This document amends the Customs and Border Protection 
(``CBP'') Regulations on an interim basis to implement the preferential 
tariff treatment and other customs-related provisions of the United 
States-Chile Free Trade Agreement entered into by the United States and 
the Republic of Chile.

DATES: Interim rule effective March 7, 2005; comments must be received 
by June 6, 2005.

ADDRESSES: You may submit comments, identified by the Regulatory 
Information Number (``RIN'') and/or by the title ``United States-Chile 
Free Trade Agreement,'' by one of the following methods:
     EPA Federal Partner EDOCKET Web Site: https://www.epa.gov/
feddocket. Follow instructions for submitting comments on the Web site. 
The Department of Homeland Security (``DHS''), including CBP, has 
joined the Environmental Protection Agency (``EPA'') online public 
docket and comment system on its Partner Electronic Docket System 
(``Partner EDOCKET''). As an agency of the DHS, CBP will use the EPA 
Federal Partner EDOCKET system.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail, hand delivery or courier: paper, disk or CD-ROM 
submissions may be mailed or delivered to the Regulations Branch, 
Office of Regulations and Rulings, Bureau of Customs and Border 
Protection, 1300 Pennsylvania Avenue, NW. (Mint Annex), Washington, DC 
20229.
    Instructions: All submissions received must include the agency name 
and docket number (if available) or RIN number for this rulemaking. All 
comments received will be posted without change to https://www.epa.gov/
feddocket, including any personal information provided.
    Docket: For access to the docket to read background documents or 
comments received, go to https://www.epa.gov/feddocket. You may also 
access the Federal eRulemaking Portal at https://www.regulations.gov. 
Comments may be inspected at the Regulations Branch, Office of 
Regulations and Rulings, Bureau of Customs and Border Protection, 799 
9th Street, NW., (5th Floor), Washington, DC during regular business 
hours.

FOR FURTHER INFORMATION CONTACT:
    Textile Operational Aspects: Robert Abels, Office of Field 
Operations, (202) 344-1959.
    Other Operational Aspects: Lori Whitehurst, Office of Field 
Operations, (202) 344-2722.
    Audit Aspects: Mark Hanson, Office of Regulatory Audit, (202) 344-
2877.
    Legal Aspects: Edward Leigh, Office of Regulations and Rulings, 
(202) 572-8827.

SUPPLEMENTARY INFORMATION:

Background

    On June 6, 2003, the United States and the Republic of Chile (the 
``Parties'') entered into an agreement, the U.S.-Chile Free Trade 
Agreement (``US-CFTA''). The stated objectives of the US-CFTA are to: 
Encourage expansion and diversification of trade between the Parties; 
eliminate barriers to trade in, and facilitate the cross-border 
movement of, goods and services between the territories of the Parties; 
promote conditions of fair competition in the free trade area; 
substantially increase investment opportunities in the territories of 
the Parties; provide adequate and effective protection and enforcement 
of intellectual property rights in each Party's territory; create 
effective procedures for the implementation and application of the US-
CFTA, for its joint administration and for the resolution of disputes; 
and establish a framework for further bilateral and multilateral 
cooperation to expand and enhance the benefits of the US-CFTA.
    The provisions of the US-CFTA were adopted by the United States 
with the enactment of the United States-Chile Free Trade Agreement 
Implementation Act (the ``Act''), Pub. L. 108-77, 117 Stat. 909 (19 
U.S.C. 3805 note)(2003).
    Customs and Border Protection (CBP) has the responsibility to 
administer the provisions of the US-CFTA and the Act which relate to 
the importation of goods into the United States from Chile. Those 
customs-related US-CFTA provisions which require implementation through 
regulation include certain tariff and non-tariff provisions within 
Chapter Three (National Treatment and Market Access for Goods) and the 
provisions of Chapter Four (Rules of Origin and Origin Procedures) and 
Chapter Five (Customs Administration).
    The tariff-related provisions within US-CFTA Chapter Three which 
require regulatory action by CBP are Article 3.7 (Temporary Admission 
of Goods), Article 3.8 (Drawback and Duty Deferral Programs), Article 
3.9 (Goods Re-Entered after Repair or Alteration), Article 3.10 (Duty-
Free Entry of Commercial Samples of Negligible Value and Printed 
Advertising Materials) and Article 3.20 (Rules of Origin and Related 
Matters).
    Chapter Four of the US-CFTA sets forth the rules for determining 
whether an imported good qualifies as an originating good of the United 
States or Chile (US-CFTA country) and, as such, is therefore eligible 
for preferential tariff (duty-free or reduced duty) treatment as 
provided for under Article 4.1 and Annex 4.1 of the US-CFTA. Under 
Article 4.1 within that Chapter, originating goods may be grouped in 
three broad categories: (1) Goods which are wholly obtained or produced 
entirely in one or both of the Parties; (2) goods which are produced 
entirely in those countries and which satisfy the specific rules of 
origin in US-CFTA Annex 4.1 (change in tariff classification 
requirement and/or regional value content requirement); and (3) goods 
which are produced entirely in one or both of the Parties exclusively 
from materials that originate in those countries. Article 4.2 sets 
forth the methods for calculating the regional value content of a good. 
Article 4.3 sets forth the rules for determining the value of materials 
for purposes of calculating the regional value content of a good and 
applying the de minimis rule. Article 4.4 sets forth the rules for 
determining whether accessories, spare parts or tools delivered with a 
good qualify as material used in the production of such good. Article 
4.6 provides for accumulation of production by two or more producers. 
Article 4.7 provides a de minimis criterion. The remaining Articles 
within Section A of Chapter

[[Page 10869]]

Four consist of additional sub-rules, applicable to the originating 
good concept, involving fungible materials, packaging materials, 
packing materials, transshipment, and non-qualifying operations. The 
basic rules of origin in Chapter Four of the US-CFTA are set forth in 
General Note 26, Harmonized Tariff Schedule of the United States 
(HTSUS). In addition, Section B of Chapter Four sets forth the 
procedural requirements which apply under the US-CFTA, in particular 
with regard to claims for preferential tariff treatment.
    Chapter Five sets forth the customs operational provisions related 
to the implementation and continued administration of US-CFTA.
    In order to provide transparency and facilitate their use, the 
majority of the US-CFTA implementing regulations set forth in this 
document have been included within new subpart H in Part 10 of the CBP 
Regulations (19 CFR). However, in those cases in which US-CFTA 
implementation is more appropriate in the context of an existing 
regulatory provision, the US-CFTA regulatory text has been incorporated 
in an existing Part within the CBP Regulations. In addition, this 
document sets forth a number of cross-references and other 
consequential changes to existing regulatory provisions to clarify the 
relationship between those existing provisions and the new US-CFTA 
implementing regulations. The regulatory changes are discussed below in 
the order in which they appear in this document.
    To create new subpart H of 19 CFR part 10, the existing sections in 
that part have been re-designated into subparts A through G.

Discussion of Amendments

Part 10

    Section 10.31(f) concerns temporary importations under bond. It is 
amended by adding a sentence at the end stating that, as regards the 
goods described in the added sentence, no bond or other security will 
be required in the case of goods originating in Chile. The provisions 
of US-CFTA Article 3.7 (temporary admission of goods) are already 
reflected in existing temporary importation bond or other provisions 
contained in part 10 of the CBP Regulations and in Chapter 98 of the 
HTSUS.

Part 10, Subpart H

General Provisions
    Section 10.401 outlines the scope of new subpart H, part 10. This 
section also clarifies that, except where the context otherwise 
requires, the requirements contained in subpart H, part 10 are in 
addition to general administrative and enforcement provisions set forth 
elsewhere in the CBP Regulations. Thus, for example, the specific 
merchandise entry requirements contained in subpart H, part 10 are in 
addition to the basic entry requirements contained in parts 141-143 of 
the regulations.
    Section 10.402 sets forth definitions of common terms used in 
multiple contexts or places within subpart H, part 10. Although the 
majority of the definitions in this section are based on definitions 
contained in Article 2.1 and Annex 2.1 of the US-CFTA or in Sec.  3 of 
the Act, other definitions have also been included to clarify the 
application of the regulatory texts. Additional definitions which apply 
in a more limited subpart H context are set forth elsewhere with the 
substantive provisions to which they relate.
Import Requirements
    Section 10.410 sets forth the procedure for claiming US-CFTA tariff 
benefits at the time of importation and, as provided in US-CFTA Article 
4.12, requires a U.S. importer to file a declaration, and to correct a 
declaration that contains incorrect information, in connection with the 
claim. Section 10.410 also implements US-CFTA Article 4.12 by requiring 
that the declaration that the goods are US-CFTA originating goods be 
based on a certification of origin which is in the possession of the 
importer.
    Section 10.411 implements US-CFTA Article 4.14 which concerns the 
obligations of an importer regarding the submission of a certification 
of origin to CBP and the maintenance of the certification and other 
relevant records regarding the imported good. Included in Sec.  10.411 
is a provision that a certification of origin may be used either for a 
single importation or for multiple importations of identical goods.
    Section 10.416, which is based on US-CFTA Article 4.16, authorizes 
the denial of US-CFTA tariff benefits if the importer fails to comply 
with the requirements of Subpart H, Part 10.
Tariff Preference Level
    Sections 10.420 and 10.421, which are based on US-CFTA Article 
3.20, require an importer claiming preferential tariff treatment under 
a tariff preference level (TPL) to make a statement containing 
information demonstrating that a good satisfies the requirement for 
entry under the TPL.
Export Requirements
    Section 10.430 implements US-CFTA Article 4.15 which concerns use 
of a certification of origin for purposes of certifying that an 
exported good is an originating good and thus entitled to preferential 
tariff treatment under the US-CFTA. This section also implements US-
CFTA Article 4.15.3 which requires an exporter or producer to promptly 
provide written notification of errors in a certification to any person 
to whom the certification was given.
    Section 10.430 concerns the maintenance of records by a U.S. 
exporter or producer who executes a certification of origin, as 
required by US-CFTA Article 4.15 and by 19 U.S.C. 1508 as amended by 
Sec.  207 of the Act. Section 10.430 also concerns the availability of 
those records both to CBP and to the Chilean customs administration.
    Section 10.431 concerns measures applied for a failure of a U.S. 
exporter or producer to comply with a requirement of subpart H, part 10 
and is based on US-CFTA Article 4.16.
Post-Importation Duty Refund Claims
    Sections 10.440 through 10.442 implement US-CFTA Article 4.12, 
which allows an importer, who did not claim US-CFTA tariff benefits on 
a qualifying good at the time of importation, or a non-qualifying 
apparel good claiming a TPL, to apply for a refund of any excess duties 
at any time within one year after the date of importation. Such a claim 
may be made even if liquidation of the entry would otherwise be 
considered final under other provisions of law.
Rules of Origin
    Sections 10.450 through 10.463 provide the implementing regulations 
regarding the rules of origin provisions of HTSUS General Note 26 and 
US-CFTA Chapter Four.

Definitions

    Section 10.450 sets forth terms that are defined for purposes of 
the Rules of Origin.

General Rules of Origin

    Section 10.451 sets forth the basic rules of origin established in 
Chapter Four of the US-CFTA. The provisions of Sec.  10.451 apply both 
to the determination of the status of an imported good as an 
originating good for purposes of preferential tariff treatment and to 
the determination of the status of a material as an originating 
material used in a good which is subject to a determination under 
General Note 26, HTSUS.

[[Page 10870]]

    Section 10.451(a) lists those goods which are originating goods 
because they are wholly obtained or produced entirely in the U.S., 
Chile, or both. Section 10.451(c) provides that goods, produced 
entirely in the U.S. or Chile from originating materials, are 
originating goods.
    Section 10.451(b) sets forth the basic rules of origin for goods 
which are produced with any non-originating material content. Essential 
to the rules in Sec.  10.451(b) are the specific rules of General Note 
26(n), HTSUS, which are incorporated by reference. Under paragraph 
(b)(1) of Sec.  10.451, a good will qualify as an originating good only 
if all non-originating materials used in the production of the good 
undergo the applicable change in tariff classification, set forth in 
General Note 26(n), as a result of processing performed entirely in the 
US-CFTA countries. Under paragraph (b)(2) of Sec.  10.451, a regional 
value content requirement must be satisfied in addition to a change in 
tariff classification for certain cases as specified by the rules of 
General Note 26(n), and, for other cases, only a regional value content 
must be satisfied. In all cases, the good must also satisfy all other 
requirements of the note.
    Section 10.452 sets forth the rule that a good or material is not 
an originating good or material as a result of simple combining or 
packaging operations or mere dilution with a substance that does not 
materially alter the characteristics of the good or material.

Value Content

    Section 10.454 sets forth the basic rules which apply for purposes 
of determining whether an imported good satisfies a minimum regional 
value content (RVC) requirement. Section 10.455 sets forth the rules 
for determining the value of a material for purposes of calculating the 
regional value content of a good as well as for purposes of applying 
the de minimis rules.
    Accessories, spare parts or tools. Section 10.456 specifies when 
certain accessories, spare parts or tools will be treated as a material 
used in the production of the good.
    Fungible goods and materials. Section 10.457 sets forth the rules 
by which ``fungible'' goods or materials may be claimed as originating.

Accumulation of Production

    Section 10.458 sets forth the rule by which originating goods or 
materials from the territory of Chile or the United States that are 
used in the production of a good in the territory of the other country 
will be considered to originate in the territory of such other country. 
In addition, this section also establishes that a good that is produced 
by one or more producers in the territory of Chile or the United 
States, or both, is an originating good if the good satisfies all of 
the applicable requirements of the rules of origin of the US-CFTA.

De Minimis

    Section 10.459 sets forth a de minimis rule by which goods that 
fail to qualify as originating under the rules in Sec.  10.451 may be 
considered originating goods for preferential tariff treatment. There 
are a number of exceptions to the de minimis rule as well as a separate 
rule for textile and apparel goods.
    Indirect materials. Section 10.460 provides that indirect materials 
are considered to be originating materials without regard to where they 
are produced.
    Packaging materials; packing materials. Sections 10.461 and 10.462 
provide that retail packaging materials and packing materials for 
shipment are to be disregarded with respect to their actual origin for 
purpose of the change in tariff classification requirement of the 
General Note 26(n). These sections also set forth the treatment of 
packaging and packing materials for purposes of the regional value 
content requirement of the note.

Transshipment

    Section 10.463 sets forth the rule that with certain exceptions, an 
originating good loses its originating status and is treated as a non-
originating good if, subsequent to the production in a US-CFTA country 
that qualifies the good as originating, the good undergoes production 
in a territory outside that of a US-CFTA country.
Origin Verifications and Determinations
    Sections 10.470 through 10.474 implement the provisions of US-CFTA 
Article 4.16 which concerns the conduct of verifications to determine 
whether imported goods are originating goods entitled to US-CFTA 
preferential duty treatment and the issuance and application of origin 
determinations resulting from such verifications. These sections also 
govern the conduct of verifications directed to producers of materials 
that are used in the production of a good for which US-CFTA 
preferential duty treatment is claimed.
    Section 10.470 provides for the verification by CBP of a claim for 
US-CFTA tariff treatment and any information submitted in support of 
the claim. This section further provides that, if CBP is prevented from 
conducting a verification, the claim may be denied.
    Section 10.471 provides for textile and apparel goods imported into 
the United States to be reviewed by Chilean authorities (at the request 
of CBP), regardless of whether a claim is made for preferential tariff 
treatment. CBP may also assist in a verification in Chile under this 
section.
    Section 10.471 also provides for specific actions to be taken 
during and after the verification if directed by the Committee for the 
Implementation of Textile Agreements. These actions can be taken on the 
specific goods subject to the verification or to similar goods, or to 
any textile or apparel goods being imported into the United States by 
the entity subject to the verification.
    Section 10.472 provides for textile and apparel goods exported from 
the United States to Chile to be reviewed by CBP (at the request of 
Chilean authorities),
    Section 10.473 implements US-CFTA Article 4.16.3 by providing for 
the issuance of a written determination of origin based on an analysis 
of the results of the origin verification. This section also prescribes 
the information required to be included in the written determination 
and includes special content and issuance requirements in the case of a 
negative origin determination.
Penalties
    Section 10.480 concerns the general application of penalties to US-
CFTA transactions and is based on US-CFTA Article 5.9.
    Section 10.481 reflects US-CFTA Article 4.16 with regard to 
exceptions to the application of penalties in the case of an importer 
who voluntarily makes a corrected declaration (as provided for in US-
CFTA Article 4.12--see Sec.  10.410(b)).
    Section 10.482 reflects US-CFTA Article 4.15 with regard to 
exceptions to the application of penalties in the case of an exporter 
or producer who voluntarily provides notice of an incorrect 
certification of origin (see Sec.  10.411). Section 10.483, which sets 
forth standards for determining whether the correction or notice is 
effected ``voluntarily'', is based on the standards applied for prior 
disclosures under 19 U.S.C. 1592 as set forth in Sec.  162.74 of the 
CBP Regulations.
Goods Returned After Repair or Alteration
    Section 10.490 implements US-CFTA Article 3.9 regarding duty 
treatment on goods re-entered after repair or alteration in Chile.

[[Page 10871]]

Part 24

    A paragraph is added to Sec.  24.23(c), which concerns the 
merchandise processing fee (MPF) to implement Sec.  204 of the US-CFTA, 
providing that the MPF is not applicable to goods that qualify as 
originating goods as provided for in the US-CFTA.

Part 162

    Part 162 contains regulations regarding the inspection and 
examination of merchandise involved in importation. A cross-reference 
is added to Sec.  162.0, which is the scope section of the part, to 
refer readers to the additional US-CFTA records maintenance and 
examination provisions contained in new subpart H, part 10.

Part 163

    A conforming amendment is made to Sec.  163.1 to include the 
completion of a Chile certification of origin and any other supporting 
documentation pursuant to the US-CFTA as an activity for which records 
must be maintained. Also, the list appearing in Appendix to Sec.  163 
(commonly known as the (a)(1)(A) list) is also amended to add the Chile 
certification of origin, required by new Sec.  10.410.

Part 178

    Part 178 sets forth the control numbers assigned to information 
collections of CBP by the Office of Management and Budget, pursuant to 
the Paperwork Reduction Act of 1995, Pub. L. 104-13. The list contained 
in Sec.  178.2 is amended to add the information collections used by 
CBP to determine eligibility for a tariff preference or other rights or 
benefits under the US-CFTA and the Act.

Part 191

    Part 191 contains regulations regarding drawback. A cross-reference 
is added to Sec.  191.0, which is the scope section of the part, to 
refer readers to the additional US-CFTA drawback provisions contained 
in new subpart H, part 10.

Comments

    Before adopting these interim regulations as a final rule, 
consideration will be given to any written comments timely submitted to 
CBP by e-mail, mail, hand delivery or courier, including comments on 
the clarity of these interim regulations and how they 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), and Sec.  103.11(b) of the CBP Regulations (19 CFR 103.11(b)), on 
regular business days between the hours of 9 a.m. and 4:30 p.m. at the 
Office of Regulations and Rulings, Customs and Border Protection, 799 
9th Street, NW., (5th Floor), Washington, DC. Arrangements to inspect 
submitted comments should be made in advance by calling Mr. Joseph 
Clark at 202-572-8768. Comments may also be accessed on the EPA Partner 
EDOCKET Web site or Federal eRulemaking Portal. For additional 
information on accessing comments via the EPA Partner EDOCKET Web site 
or Federal eRulemaking Portal, see the ADDRESSES section of this 
document.

Inapplicability of Notice and Delayed Effective Date Requirements

    Under section 553 of the Administrative Procedure Act (APA) (5 
U.S.C. 553), agencies amending their regulations generally are required 
to publish a notice of proposed rulemaking in the Federal Register that 
solicits public comment on the proposed amendments, consider public 
comments in deciding on the final content of the final amendments, and 
publish the final amendments at least 30 days prior to their effective 
date. However, section 553(a)(1) of the APA provides that the standard 
notice and comment procedures and requirement for a delayed effective 
date do not apply to agency rulemaking that involves the foreign 
affairs function of the United States. CBP has determined that these 
interim regulations involve the foreign affairs function of the United 
States, as they implement preferential tariff treatment and related 
provisions of the US-CFTA.
    In addition, section 553(b)(B) of the APA provides that notice and 
public procedure are not required when an agency for good cause finds 
them impracticable, unnecessary, or contrary to the public interest. 
CBP finds that providing notice and public procedure for these 
regulations would be impracticable, unnecessary, and contrary to the 
public interest because they establish procedures that the public needs 
to know in order to claim the benefit of a tariff preference under the 
Act. The US-CFTA went into effect on January 1, 2004, and the importing 
public needs the certainty of regulations as soon as possible.
    Finally, section 553(d)(1) and (d)(3) of the APA exempt agencies 
from the requirement of publishing notice of final rules at least 30 
days prior to their effective date when a substantive rule grants or 
recognizes an exemption or relieves a restriction and when the agency 
finds that good cause exists for not meeting the advance publication 
requirement. For the reasons described above, CBP has determined that 
these regulations grant an exemption and relieve restrictions and that 
good cause exists for dispensing with a delayed effective date.

Executive Order 12866 and Regulatory Flexibility Act

    CBP has determined that this document is not a regulation or rule 
subject to the provisions of Executive Order 12866 of September 30, 
1993 (58 FR 51735, October 1993), because it pertains to a foreign 
affairs function of the United States and implements an international 
agreement, as described above, and therefore is specifically exempted 
by section 3(d)(2) of Executive Order 12866. Because a notice of 
proposed rulemaking is not required under section 553(b) of the APA for 
the reasons described above, CBP notes that the provisions of the 
Regulatory Flexibility Act, as amended (5 U.S.C. 601 et seq.), do not 
apply to this rulemaking. Accordingly, CBP also notes that this interim 
rule is not subject to the regulatory analysis requirements or other 
requirements of 5 U.S.C. 603 and 604.

Paperwork Reduction Act

    These regulations are being issued without prior notice and public 
procedure pursuant to the Administrative Procedure Act (5 U.S.C. 553). 
For this reason, the collections of information contained in these 
regulations have been reviewed and, pending receipt and evaluation of 
public comments, approved by the Office of Management and Budget in 
accordance with the requirements of the Paperwork Reduction Act (44 
U.S.C. 3507) under control number 1651-0117.
    The collections of information in these regulations are in 
Sec. Sec.  10.410 and 10.411. This information is required in 
connection with claims for preferential tariff treatment and for the 
purpose of the exercise of other rights under the US-CFTA and the Act 
and will be used by CBP to determine eligibility for a tariff 
preference or other rights or benefits under the US-CFTA and the Act. 
The likely respondents are business organizations including importers, 
exporters and manufacturers.
    Estimated total annual reporting burden: 8,000 hours.
    Estimated average annual burden per respondent: 0.2 hours.
    Estimated number of respondents: 40,000.
    Estimated annual frequency of responses: 1.

[[Page 10872]]

    Comments concerning the collections of information and the accuracy 
of the estimated annual burden, and suggestions for reducing that 
burden, should be directed to the Office of Management and Budget, 
Attention: Desk Officer for the Department of the Treasury, Office of 
Information and Regulatory Affairs, Washington, DC 20503. A copy should 
also be sent to the Regulations Branch, Office of Regulations and 
Rulings, Bureau of Customs and Border Protection, 1300 Pennsylvania 
Avenue, NW., Washington, DC 20229.

Drafting Information

    The principal author of this document is Fernando Pe[ntilde]a, 
Attorney, Office of Regulations and Rulings, Customs and Border 
Protection. However, personnel from other offices and the Department of 
the Treasury participated in its development.

Signing Authority

    This document is being issued in accordance with Sec.  0.1(a)(1) of 
the CBP Regulations (19 CFR 0.1(a)(1)) pertaining to the authority of 
the Secretary of the Treasury (or her/her delegate) to approve 
regulations related to certain CBP revenue functions.

List of Subjects

19 CFR Part 10

    Alterations, Bonds, Customs duties and inspection, Exports, 
Imports, Preference programs, Repairs, Reporting and recordkeeping 
requirements, Trade agreements (United States-Chile Free Trade 
Agreement).

19 CFR Part 24

    Accounting, Customs duties and inspection, Financial and accounting 
procedures, Reporting and recordkeeping requirements, Trade agreements, 
User fees.

19 CFR Part 162

    Administrative practice and procedure, Customs duties and 
inspection, Penalties, Trade agreements.

19 CFR Part 163

    Administrative practice and procedure, Customs duties and 
inspection, Export, Import, Reporting and recordkeeping requirements, 
Trade agreements.

19 CFR Part 178

    Administrative practice and procedure, Exports, Imports, Reporting 
and recordkeeping requirements.

19 CFR Part 191

    Commerce, Customs duties and inspection, Drawback, Reporting and 
recordkeeping requirements, Trade agreements.

Amendments to the Regulations

0
Accordingly, chapter I of title 19, Code of Federal Regulations (19 CFR 
chapter I), is amended as set forth below.

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

0
1. The general authority citation for part 10 is revised, and the 
specific authority for new subpart H is added, to read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508, 
1623, 1624, 3314;
* * * * *
    Sections 10.401 through 10.490 also issued under Pub. L. 108-77, 
117 Stat. 909 (19 U.S.C. 3805 note).


0
2. Sections 10.1 through 10.183 are designated as new Subpart A and a 
subpart heading is added previous to the undesignated heading 
``Articles Exported and Returned'' to read as follows:

Subpart A--General Provisions

* * * * *

0
3. Sections 10.191 through 10.199 are designated as new Subpart B, the 
undesignated heading ``Caribbean Basin Initiative'' is removed, and in 
its place, a subpart heading is added to read as follows:

Subpart B--Caribbean Basin Initiative

* * * * *

0
4. Sections 10.201 through 10.207 are designated as new Subpart C, the 
undesignated heading ``Andean Trade Preference'' is removed, and in its 
place, a subpart heading is added to read as follows:

Subpart C--Andean Trade Preference

* * * * *

0
5. Sections 10.211 through 10.217 are designated as new Subpart D, the 
undesignated heading ``Textile and Apparel Articles Under the African 
Growth and Opportunity Act'' is removed, and in its place, a subpart 
heading is added to read as follows:

Subpart D--Textile and Apparel Articles Under the African Growth 
and Opportunity Act

* * * * *

0
6. Sections 10.221 through 10.237 are designated as new Subpart E and a 
subpart heading is added previous to the undesignated heading ``Textile 
and Apparel Articles Under the United States-Caribbean Basin Trade 
Partnership Act'' to read as follows:

Subpart E--United States-Caribbean Basin Trade Partnership Act

* * * * *

0
7. Sections 10.241 through 10.257 are designated as new Subpart F and a 
new subpart heading is added previous to the undesignated heading 
``Apparel and Other Textile Articles Under the Andean Trade Promotion 
and Drug Eradication Act'' to read as follows:

Subpart F--Andean Trade Promotion and Drug Eradication Act

* * * * *

0
8. Sections 10.301 through 10.311 are designated as new Subpart G, the 
undesignated heading ``United States-Canada Free Trade Agreement'' is 
removed, and in its place, a subpart heading is added to read as 
follows:

Subpart G--United States-Canada Free Trade Agreement

* * * * *

0
9. In Sec.  10.31, paragraph (f), the last sentence is revised to read 
as follows:


Sec.  10.31  Entry; bond.

* * * * *
    (f) * * * In addition, notwithstanding any other provision of this 
paragraph, in the case of professional equipment necessary for carrying 
out the business activity, trade or profession of a business person, 
equipment for the press or for sound or television broadcasting, 
cinematographic equipment, articles imported for sports purposes and 
articles intended for display or demonstration, if brought into the 
United States by a resident of Canada, Mexico or Chile and entered 
under Chapter 98, Subchapter XIII, HTSUS, no bond or other security 
will be required if the entered article is a good originating in 
Canada, Mexico or Chile within the meaning of General Note 12 or 26, 
HTSUS.
* * * * *


Sec.  10.36a  [Amended]

0
10. In Sec.  10.36a, the first sentence of paragraph (a) is amended by 
removing the words ``(as defined in Sec. Sec.  10.8 and 181.64 of this 
chapter)'' and adding, in their place, the words ``(as defined in 
Sec. Sec.  10.8, 10.490 and 181.64 of this chapter)''.

[[Page 10873]]


0
11. Part 10, CBP Regulations, is amended by adding a new Subpart H to 
read as follows:

Subpart H--United States-Chile Free Trade Agreement

General Provisions

10.401 Scope.
10.402 General definitions.

Import Requirements

10.410 Filing of claim for preferential tariff treatment upon 
importation.
10.411 Certification of origin.
10.412 Importer obligations.
10.413 Validity of certification.
10.414 Certification not required.
10.415 Maintenance of records.
10.416 Effect of noncompliance; failure to provide documentation 
regarding transshipment.

Tariff Preference Level

10.420 Filing of claim for tariff preference level.
10.421 Goods eligible for tariff preference claims.
10.422 Submission of certificate of eligibility.
10.423 Certificate of eligibility not required.
10.424 Effect of noncompliance; failure to provide documentation 
regarding transshipment of non-originating cotton or man-made fiber 
fabric or apparel goods.
10.425 Transit and transshipment of non-originating cotton or man-
made fiber fabric or apparel goods.

Export Requirements

10.430 Export requirements.
10.431 Failure to comply with requirements.

Post-Importation Duty Refund Claims

10.440 Right to make post-importation claim and refund duties.
10.441 Filing procedures.
10.442 CBP processing procedures.

Rules of Origin

10.450 Definitions.
10.451 Originating goods.
10.452 Exclusions.
10.453 Treatment of textile and apparel sets.
10.454 Regional value content.
10.455 Value of materials.
10.456 Accessories, spare parts or tools.
10.457 Fungible goods and materials.
10.458 Accumulation.
10.459 De minimis.
10.460 Indirect materials.
10.461 Retail packaging materials and containers.
10.462 Packing materials and containers for shipment.
10.463 Transit and transshipment.

Origin Verifications and Determinations

10.470 Verification and justification of claim for preferential 
treatment.
10.471 Special rule for verification in Chile of U.S. imports of 
textile and apparel products.
10.472 Verification in the United States of textile and apparel 
goods.
10.473 Issuance of negative origin determinations.
10.474 Repeated false or unsupported preference claims.

Penalties

10.480 General.
10.481 Corrected declaration by importers.
10.482 Corrected certification of origin by exporters or producers.
10.483 Framework for correcting declarations and certifications.

Goods Returned After Repair or Alteration

10.490 Goods re-entered after repair or alteration in Chile.

Subpart H--United States-Chile Free Trade Agreement

General Provisions


Sec.  10.401  Scope.

    This subpart implements the duty preference and related customs 
provisions applicable to imported goods under the United States-Chile 
Free Trade Agreement (the US-CFTA) entered into on June 6, 2003, and 
under the United States-Chile Free Trade Agreement Implementation Act 
(the Act; 117 Stat. 909). Except as otherwise specified in this 
subpart, the procedures and other requirements set forth in this 
subpart are in addition to the customs procedures and requirements of 
general application contained elsewhere in this chapter. Additional 
provisions implementing certain aspects of the US-CFTA and the Act are 
contained in parts 12, 24, 162, 163 and 191 of this chapter.


Sec.  10.402  General definitions.

    As used in this subpart, the following terms will have the meanings 
indicated unless either the context in which they are used requires a 
different meaning or a different definition is prescribed for a 
particular section of this subpart:
    (a) Certification. ``Certification'' means, either when used by 
itself or in the expression ``certification of origin'', the 
certification established under article 4.13 of the US-CFTA, that a 
good qualifies as an originating good under the US-CFTA;
    (b) Claim of origin. ``Claim of origin'' means a claim that a 
textile or apparel good is an originating good or a good of a Party;
    (c) Claim for preferential tariff treatment. ``Claim for 
preferential tariff treatment'' means a claim that a good is entitled 
to the duty rate applicable under the US-CFTA to an originating good;
    (d) Customs authority. ``Customs authority'' means the competent 
authority that is responsible under the law of a Party for the 
administration of customs laws and regulations;
    (e) Customs Valuation Agreement. ``Customs Valuation Agreement'' 
means the Agreement on Implementation of Article VII of the General 
Agreement on Tariffs and Trade 1994, which is part of the WTO 
Agreement;
    (f) Days. ``Days'' means calendar days;
    (g) Customs duty. ``Customs duty'' includes any customs or import 
duty and a charge of any kind imposed in connection with the 
importation of a good, including any form of surtax or surcharge in 
connection with such importation, but, for purposes of implementing the 
US-CFTA, does not include any:
    (1) Charge equivalent to an internal tax imposed consistently with 
Article III:2 of the GATT 1994; in respect of like, directly 
competitive, or substitutable goods of the Party, or in respect of 
goods from which the imported good has been manufactured or produced in 
whole or in part;
    (2) Antidumping or countervailing duty; and
    (3) Fee or other charge in connection with importation commensurate 
with the cost of services rendered;
    (h) Enterprise. ``Enterprise'' means any entity constituted or 
organized under applicable law, whether or not for profit, and whether 
privately-owned or governmentally-owned, including any corporation, 
trust, partnership, sole proprietorship, joint venture, or other 
association;
    (i) GATT 1994. ``GATT 1994'' means the General Agreement on Tariffs 
and Trade 1994, which is part of the WTO Agreement;
    (j) Goods. ``Goods'' means domestic products as these are 
understood in the GATT 1994 or such goods as the Parties may agree, and 
includes originating goods of that Party. A good of a Party may include 
materials of other countries;
    (k) Harmonized System. ``Harmonized System (HS)'' means the 
Harmonized Commodity Description and Coding System, including its 
General Rules of Interpretation, Section Notes, and Chapter Notes, as 
adopted and implemented by the Parties in their respective tariff laws;
    (l) Heading. ``Heading'' means the first four digits in the tariff 
classification number under the Harmonized System;
    (m) HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the 
United States as promulgated by the U.S. International Trade 
Commission;
    (n) Indirect material. ``Indirect material'' means a good used in 
the production, testing, or inspection of a good in the territory of 
the United States

[[Page 10874]]

or Chile but not physically incorporated into the good, or a good used 
in the maintenance of buildings or the operation of equipment 
associated with the production of a good in the territory of the United 
States or Chile, including--
    (1) Fuel and energy;
    (2) Tools, dies, and molds;
    (3) Spare parts and materials used in the maintenance of equipment 
and buildings;
    (4) Lubricants, greases, compounding materials, and other materials 
used in production or used to operate equipment and buildings;
    (5) Gloves, glasses, footwear, clothing, safety equipment, and 
supplies;
    (6) Equipment, devices, and supplies used for testing or inspecting 
the goods;
    (7) Catalysts and solvents; and
    (8) Any other goods that are not incorporated into the good but 
whose use in the production of the good can reasonably be demonstrated 
to be a part of that production;
    (o) National. ``National'' means a natural person who has the 
nationality of a Party according to Annex 2.1 of the US-CFTA or a 
permanent resident of a Party;
    (p) Originating. ``Originating'' means qualifying under the rules 
of origin set out in Chapter Four (Rules of Origin and Origin 
Procedures) of the US-CFTA;
    (q) Party. ``Party'' means the United States or the Republic of 
Chile;
    (r) Person. ``Person'' means a natural person or an enterprise;
    (s) Preferential tariff treatment. ``Preferential tariff 
treatment'' means the duty rate applicable under the US-CFTA to an 
originating good;
    (t) Subheading. ``Subheading'' means the first six digits in the 
tariff classification number under the Harmonized System;
    (u) Tariff preference level. ``Tariff preference level'' means a 
quantitative limit for certain non-originating textiles and textile 
apparel goods that may be entitled to preferential tariff treatment as 
if such goods were originating based on the goods meeting the 
production requirements set forth in Sec.  10.421 of this subpart.
    (v) Textile or apparel good. ``Textile or apparel good'' means a 
good listed in the Annex to the Agreement on Textiles and Clothing 
(commonly referred to as ATC), which is part of the WTO Agreement;
    (w) Territory. ``Territory'' means:
    (1) With respect to Chile, the land, maritime and air space under 
its sovereignty, and the exclusive economic zone and the continental 
shelf within which it exercises sovereign rights and jurisdiction in 
accordance with international law and its domestic law; and
    (2) With respect to the United States,
    (i) The customs territory of the United States, which includes the 
50 states, the District of Columbia, and Puerto Rico,
    (ii) The foreign trade zones located in the United States and 
Puerto Rico, and
    (iii) Any areas beyond the territorial seas of the United States 
within which, in accordance with international law and its domestic 
law, the United States may exercise rights with respect to the seabed 
and subsoil and their natural resources;
    (x) WTO Agreement. ``WTO Agreement'' means the Marrakesh Agreement 
Establishing the World Trade Organization of April 15, 1994.

Import Requirements


Sec.  10.410  Filing of claim for preferential tariff treatment upon 
importation.

    (a) Declaration. In connection with a claim for preferential tariff 
treatment for an originating good under the US-CFTA, the U.S. importer 
must make a written declaration that the good qualifies for such 
treatment. The written declaration is made by including on the entry 
summary, or equivalent documentation, the symbol ``CL'' as a prefix to 
the subheading of the HTSUS under which each qualifying good is 
classified, or by the method specified for equivalent reporting via 
electronic interchange.
    (b) Corrected declaration. If, after making the declaration 
required under paragraph (a) of this section, the U.S. importer has 
reason to believe that the declaration or the certification on which 
the declaration was based contains information that is not correct, the 
importer must, within 30 calendar days after the date of discovery of 
the error, make a corrected declaration, submit a letter or other 
written statement to the CBP office where the original declaration was 
filed specifying the correction and pay any duties that may be due.


Sec.  10.411  Certification of origin.

    (a) Contents. An importer who claims preferential tariff treatment 
on a good must submit, at the request of the port director, a 
certification that the good qualifies as originating. A certification 
submitted to CBP under this paragraph:
    (1) Need not be in a prescribed format but must be in writing or 
must be transmitted electronically pursuant to any electronic means 
authorized by CBP for that purpose;
    (2) Must include the following information:
    (i) The legal name, address, telephone and e-mail address of the 
importer of record of the good (if known);
    (ii) The legal name, address, telephone and e-mail address of the 
exporter of the good (if different from the producer);
    (iii) The legal name, address, telephone and e-mail address of the 
producer of the good (if known);
    (iv) A description of the good, which must be sufficiently detailed 
to relate it to the invoice and the HS nomenclature;
    (v) The HTSUS tariff classification, to six or more digits, as 
necessary for the specific change in tariff classification rule for the 
good set forth in General Note 26(n), HTSUS;
    (vi) The preference criterion as set forth in paragraph (e) of this 
section;
    (vii) For multiple shipments of identical goods, the blanket period 
in ``mm/dd/yyyy to mm/dd/yyyy'' format (12-month maximum); and
    (3) Must include a statement, in substantially the following form:

    ``I Certify that:
    The information on this document is true and accurate and I 
assume the responsibility for proving such representations. I 
understand that I am liable for any false statements or material 
omissions made on or in connection with this document;
    I agree to maintain, and present upon request, documentation 
necessary to support this certification, and to inform, in writing, 
all persons to whom the certification was given of any changes that 
could affect the accuracy or validity of this certification; and
    The goods originated in the territory of one or more of the 
parties, and comply with the origin requirements specified for those 
goods in the United States-Chile Free Trade Agreement; there has 
been no further production or any other operation outside the 
territories of the parties, other than unloading, reloading, or any 
other operation necessary to preserve it in good condition or to 
transport the good to the United States; and
    This document consists of -------- pages, including all 
attachments.''

    (b) Responsible official or agent. The certification required to be 
submitted under paragraph (a) of this section must be signed and dated 
by a responsible official of the importer; exporter; producer; or by 
the importer's, exporter's, or producer's authorized agent having 
knowledge of the relevant facts. If the person making the certification 
is not the producer of the good, or the producer's authorized agent, 
the person may sign the certification of origin based on:
    (1) A certification that the good qualifies as originating issued 
by the producer; or
    (2) Knowledge of the exporter or importer that the good qualifies 
as an originating good.
    (c) Language. The certification must be completed either in the 
English or

[[Page 10875]]

Spanish language. If the certification is completed in Spanish, the 
importer must also provide to the port director, upon request, a 
written English translation of the certification.
    (d) Applicability of certification. A certification may be 
applicable to:
    (1) A single importation of a good into the United States, 
including a single shipment that results in the filing of one or more 
entries and a series of shipments that results in the filing of one 
entry; or
    (2) Multiple importations of identical goods into the United States 
that occur within a specified blanket period, not exceeding 12 months, 
set out in the certification. For purposes of this paragraph, 
``identical goods'' means goods that are the same in all respects 
relevant to the production that qualifies the goods as originating.
    (e) Preference criteria. The preference criterion to be included on 
the certification as required in paragraph (a)(2)(vi) of this section 
is as follows:
    (1) Preference criterion ``A'', refers to a good that is wholly 
obtained or produced entirely in the territory of Chile or of the 
United States, or both (see General Note 26(b)(i), HTSUS);
    (2) Preference criterion ``B'', refers to a good that is produced 
entirely in the territory of Chile or the United States, or both (see 
General Note 26(b)(ii), HTSUS), and
    (i) Each of the non-originating materials used in the production of 
the good undergoes an applicable change in tariff classification 
specified in General Note 26(n), HTSUS, or
    (ii) The good otherwise satisfies any applicable regional value 
content or other requirements specified in General Note 26(n), HTSUS;
    (3) Preference criterion ``C'' refers to a good that is produced 
entirely in the territory of Chile or the United States, or both, 
exclusively from originating materials (see General Note 26(b)(iii), 
HTSUS).


Sec.  10.412  Importer obligations.

    (a) General. An importer who makes a declaration under Sec.  
10.410(a) is responsible for the truthfulness of the declaration and of 
all the information and data contained in the certification, for 
submitting any supporting documents requested by CBP, and for the 
truthfulness of the information contained in those documents.
    (b) Compliance. In order to make a claim for preferential treatment 
under Sec.  10.410 of this subpart, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the good qualifies for preferential treatment. Those 
records must include documents that support a claim that the article in 
question qualifies for preferential treatment because it meets the 
applicable rules of origin set forth in General Note 26, HTSUS, and in 
this subpart. Those records may include a properly completed 
certification as set forth in Sec.  10.411 of this subpart; and
    (2) May be required to demonstrate that the conditions set forth in 
Sec.  10.463 of this subpart were met if the imported article was 
shipped through an intermediate country.
    (c) Information provided by exporter or producer. The fact that the 
importer has issued a certification based on information provided by 
the exporter or producer will not relieve the importer of the 
responsibility referred to in paragraph (a) of this section. A U.S. 
importer who voluntarily makes a corrected declaration will not be 
subject to penalties for having made an incorrect declaration (see 
Sec.  10.481 of this subpart).
    (d) Internal controls. In accordance with Part 163 of this chapter, 
importers are expected to establish and implement internal controls 
which provide for the periodic review of the accuracy of the 
certifications or other records referred to in paragraph (b)(1) of this 
section.


Sec.  10.413  Validity of certification.

    A certification that is completed, signed and dated in accordance 
with the requirements listed in Sec.  10.411 will be accepted by CBP as 
valid for four years from the date on which the certification was 
signed. If the port director determines that a certification is 
illegible or defective or has not been completed in accordance with 
Sec.  10.411, the importer will be given a period of not less than five 
business days to submit a corrected certification.


Sec.  10.414  Certification not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an importer will not be required to submit a certification 
that the good qualifies for preferential tariff treatment for:
    (1) A non-commercial importation of a good; or
    (2) A commercial importation of a good whose value does not exceed 
U.S. $2,500, or the equivalent amount in Chilean currency.
    (b) Exception. If the port director determines that an importation 
described in paragraph (a) of this section may reasonably be considered 
to have been carried out or planned for the purpose of evading 
compliance with the rules and procedures governing claims for 
preference under the US-CFTA, the port director will notify the 
importer in writing that for that importation the importer must submit 
to CBP a valid certification that the good qualifies as originating. 
The importer must submit such a certification within 30 calendar days 
from the date of the written notice. Failure to timely submit the 
certification or information will result in denial of the claim for 
preferential tariff treatment.


Sec.  10.415  Maintenance of records.

    (a) General. An importer claiming preferential treatment for a good 
imported into the United States must maintain in the United States, for 
five years after the date of importation of the good, a certification 
(or a copy thereof) that the good qualifies as originating, and any 
records and documents that the importer has relating to the origin of 
the good, including records and documents associated with:
    (1) The purchase of, cost of, value of, and payment for, the good;
    (2) Where appropriate, the purchase of, cost of, value of, and 
payment for, all materials, including recovered goods and indirect 
materials, used in the production of the good; and,
    (3) Where appropriate, the production of the good in the form in 
which the good was exported.
    (b) Method of maintenance. The records referred to in paragraph (a) 
of this section must be maintained by importers as provided in Sec.  
163.5 of this chapter.


Sec.  10.416  Effect of noncompliance; failure to provide documentation 
regarding transshipment.

    (a) Effect of noncompliance. If the importer fails to comply with 
any requirement under this subpart, including submission of a 
certification of origin under Sec.  10.411(a) or submission of a 
corrected certification under Sec.  10.413, the port director may deny 
preferential tariff treatment to the imported good.
    (b) Failure to provide documentation regarding transshipment. Where 
the requirements for preferential tariff treatment set forth elsewhere 
in this subpart are met, the port director nevertheless may deny 
preferential tariff treatment to an originating good if the good is 
shipped through or transshipped in a country other than Chile or the 
United States, and the importer of the good does not provide, at the 
request of the port director, copies of documents demonstrating to the 
satisfaction of the port director that the requirements set forth in 
Sec.  10.463 were met.

[[Page 10876]]

Tariff Preference Level


Sec.  10.420  Filing of claim for tariff preference level.

    A cotton or man-made fiber fabric or apparel good described in 
Sec.  10.421 that does not qualify as an originating good under Sec.  
10.451 may nevertheless be entitled to preferential tariff treatment 
under the US-CFTA under an applicable tariff preference level (TPL). To 
make a TPL claim, the importer must include on the entry summary, or 
equivalent documentation, the applicable subheading in Chapter 99 of 
the HTSUS (9911.99.20 for a good described in Sec.  10.421(a) or (b) or 
9911.99.40 for a good described in Sec.  10.421(c)) immediately above 
the applicable subheading in Chapter 52 through 62 of the HTSUS under 
which each non-originating cotton or man-made fiber fabric or apparel 
good is classified.


Sec.  10.421  Goods eligible for tariff preference claims.

    The following goods are eligible for a TPL claim filed under Sec.  
10.420:
    (a) Woven fabrics. Certain woven fabrics of Chapters 52, 54 and 55 
of the HTS (Headings 5208 to 5212; 5407 and 5408; 5512 to 5516) that 
meet the applicable conditions for preferential tariff treatment under 
the US-CFTA other than the condition that they are originating goods, 
if they are wholly formed in the U.S. or Chile regardless of the origin 
of the yarn used to produce these fabrics.
    (b) Cotton or man-made fabric goods. Certain cotton or man-made 
fabric goods of Chapters 58 and 60 of the HTS that meet the applicable 
conditions for preferential tariff treatment under the US-CFTA other 
than the condition that they are originating goods if they are wholly 
formed in the U.S. or Chile regardless of the origin of the fibers used 
to produce the spun yarn or the yarn used to produce the fabrics.\1\
---------------------------------------------------------------------------

    \1\ The relevant HTS subheadings for fabric goods in Chapters 58 
or 60 eligible under HTS 9911.99.20 are as follows: 5801.21, 
5801.22, 5801.23, 5801.24, 5801.25, 5801.26, 5801.31, 5801.32, 
5801.33, 5801.34, 5801.35, 5801.36, 5802.11, 5802.19, 5802.20.0020, 
5802.30.0030, 5803.10, 5803.90.30, 5804.10.10, 5804.21, 5804.29.10, 
5804.30.0020, 5805.00.30, 5805.00.4010, 5806.10.10, 5806.10.24, 
5806.10.28, 5806.20, 5806.31, 5806.32, 5807.10.05, 5807.10.2010, 
5807.10.2020, 5807.90.05, 5807.90.2010, 5807.90.2020, 5808.10.40, 
5808.10.70, 5808.90.0010, 5809.00, 5810.10, 5810.91, 5810.92, 
5811.00.20, 5811.00.30, 6001.10, 6001.21, 6001.22, 6001.91, 6001.92, 
6002.40, 6002.90, 6003.20, 6003.30, 6003.40, 6004.10, 6004.90, 
6005.21, 6005.22, 6005.23, 6005.24, 6005.31, 6005.32, 6005.33, 
6005.34, 6005.41, 6005.42, 6005.43, 6005.44, 6006.21, 6006.22, 
6006.23, 6006.24, 6006.31, 6006.32, 6006.33, 6006.34, 6006.41, 
6006.42, 6006.43, 6006.44.
---------------------------------------------------------------------------

    (c) Cotton or man-made apparel goods. Cotton or man-made apparel 
goods in Chapters 61 and 62 of the HTS that are both cut (or knit-to-
shape) and sewn or otherwise assembled in the U.S. or Chile regardless 
of the origin of the fabric or yarn, provided that they meet the 
applicable conditions for preferential tariff treatment under the US-
CFTA, other than the condition that they are originating goods.


Sec.  10.422  Submission of certificate of eligibility.

    (a) Contents. An importer who claims preferential tariff treatment 
on a non-originating cotton or man-made fiber fabric or apparel good 
must submit, at the request of the port director, a certificate of 
eligibility containing information demonstrating that the good 
satisfies the requirements for entry under the applicable TPL, as set 
forth in Sec.  10.421. A certificate of eligibility submitted to CBP 
under this section:
    (1) Need not be in a prescribed format but must be in writing or 
must be transmitted electronically pursuant to any electronic means 
authorized by CBP for that purpose;
    (2) Must include the following information:
    (i) The legal name, address, telephone and e-mail address of the 
importer of record of the good;
    (ii) The legal name, address, telephone and e-mail address of the 
exporter of the good (if different from the producer);
    (iii) The legal name, address, telephone and e-mail address of the 
producer of the good (if known);
    (iv) A description of the good, which must be sufficiently detailed 
to relate it to the invoice and the HS nomenclature;
    (v) The HTSUS tariff classification of the good, to six or more 
digits, as well as the applicable subheading in Chapter 99 of the HTSUS 
(9911.99.20 or 9911.99.40);
    (vi) For a single shipment, the commercial invoice number;
    (vii) For multiple shipments of identical goods, the blanket period 
in ``mm/dd/yyyy to mm/dd/yyyy'' format (12-month maximum); and
    (3) Must include a statement, in substantially the following form:

    ``I Certify that:
    The information on this document is true and accurate and I 
assume the responsibility for proving such representations. I 
understand that I am liable for any false statements or material 
omissions made on or in connection with this document;
    I agree to maintain and present upon request, documentation 
necessary to support this certificate, and to inform, in writing, 
all persons to whom the certificate was given of any changes that 
could affect the accuracy or validity of this certificate; and
    The goods were produced in the territory of one or more of the 
parties, and comply with the preference requirements specified for 
those goods in the United States-Chile Free Trade Agreement and 
Chapter 99, subchapter XI of the HTSUS. There has been no further 
production or any other operation outside the territories of the 
parties, other than unloading, reloading, or any other operation 
necessary to preserve it in good condition or to transport the good 
to the United States; and
    This document consists of ---- pages, including all 
attachments.''

    (b) Responsible official or agent. The certificate of eligibility 
required to be submitted under this section must be signed and dated by 
a responsible official of the importer or by the importer's authorized 
agent having knowledge of the relevant facts.
    (c) Language. The certificate of eligibility must be completed 
either in the English or Spanish language. If the certificate is 
completed in Spanish, the importer must also provide to the port 
director, upon request, a written English translation of the 
certificate;
    (d) Applicability of certificate of eligibility. A certificate of 
eligibility may be applicable to:
    (1) A single importation of a good into the United States, 
including a single shipment that results in the filing of one or more 
entries and a series of shipments that results in the filing of one 
entry; or
    (2) Multiple importations of identical goods into the United States 
that occur within a specified blanket period, not exceeding 12 months, 
set out in the certification. For purposes of this paragraph, 
``identical goods'' means goods that are the same in all respects 
relevant to the production that qualifies the goods for preferential 
tariff treatment under an applicable TPL.


Sec.  10.423  Certificate of eligibility not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an importer will not be required to submit a certificate of 
eligibility for:
    (1) A non-commercial importation of a good; or
    (2) A commercial importation of a good whose value does not exceed 
U.S. $2,500, or the equivalent amount in Chilean currency.
    (b) Exception. If the port director determines that an importation 
described in paragraph (a) of this section may reasonably be considered 
to have been carried out or planned for the purpose of evading 
compliance with the rules and procedures governing TPL claims for 
preference under the US-CFTA, the port director will notify the 
importer in writing that for that importation the importer must submit 
to CBP a valid certificate of eligibility. The

[[Page 10877]]

importer must submit such a certificate within 30 calendar days from 
the date of the written notice. Failure to timely submit the 
certificate will result in denial of the claim for preferential tariff 
treatment.


Sec.  10.424  Effect of noncompliance; failure to provide documentation 
regarding transshipment of non-originating cotton or man-made fiber 
fabric or apparel goods.

    (a) Effect of noncompliance. If the importer fails to comply with 
any requirement under this subpart, including submission of a 
certificate of eligibility under Sec.  10.422, the port director may 
deny preferential tariff treatment to the imported good.
    (b) Failure to provide documentation regarding transshipment. Where 
the requirements for preferential tariff treatment set forth elsewhere 
in this subpart are met, the port director nevertheless may deny 
preferential tariff treatment to a good for which a TPL claim is made 
if the good is shipped through or transshipped in a country other than 
Chile or the United States, and the importer of the good does not 
provide, at the request of the port director, copies of documents 
demonstrating to the satisfaction of the port director that the 
requirements set forth in Sec.  10.425 were met.


Sec.  10.425