Modification of the CBP NCAP Test Regarding Reconciliation for Entries Under the Dominican Republic-Central America-United States Free Trade Agreement, 37596-37598 [06-5875]
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37596
Federal Register / Vol. 71, No. 126 / Friday, June 30, 2006 / Notices
rwilkins on PROD1PC63 with NOTICES_1
mounted on towers, buildings, bridges,
or other structures. The USCG
anticipates the majority of these sites
would be tower-based. The USCG
would be faced with the choice of
installing AIS equipment at new sites
(‘‘new build’’); installing AIS equipment
adjacent to existing communications
equipment (‘‘collocation’’); or, program
wide, using a combination of the
collocation and new build sites for
shore-based RF sites.
For the proposed implementation of
the NAIS project, the USCG has chosen
to bound or bracket the programmatic
environmental analysis of the shorebased RF sites by evaluating three
potential NAIS siting alternatives: All
New Tower Builds, Combination of
Collocations and New Tower Builds,
and All Collocations.
(2) NAIS Long-Range Coverage—
Satellites. For long-range coverage,
satellite services could be leased from
commercial satellite providers or the
government. The USCG is currently
assessing technology development to
support this capability. The analysis of
this alternative assumes that the initial
technology development would yield a
deployable solution. The satellite
system is envisioned to consist of a
number of low earth orbit satellites to
provide the needed long-range maritime
tracking of vessels (i.e., coverage
requirement to receive AIS signals with
a minimum 4-hour reporting rate out to
2,000 NM offshore).
(3) NAIS Long-Range Coverage—
Offshore Platforms and Data Buoys.
NAIS long-range coverage could be
provided, in part, by using existing
offshore platform and data buoy
capabilities to provide additional
coverage availability. The USCG is
currently evaluating the effectiveness of
deploying AIS base stations and AIS
receivers on various offshore Gulf of
Mexico oil and gas platforms and
National Oceanic and Atmospheric
Administration data buoys. Potential
offshore platforms of interest include
existing active U.S. Department of the
Interior (DOI) Minerals Management
Service (MMS)-regulated oil and gas
infrastructures in the Gulf of Mexico,
Pacific, and Alaska regions.
Dated: June 22, 2006.
J.P. Currier,
Rear Admiral, United Stated Coast Guard,
Assistant Commandant for Acquisition.
[FR Doc. E6–10256 Filed 6–29–06; 8:45 am]
BILLING CODE 4910–15–P
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DEPARTMENT OF HOMELAND
SECURITY
Bureau of Customs and Border
Protection
Agency Information Collection
Activities; Protest
Customs and Border Protection,
Department of Homeland Security.
ACTION: Proposed collection; comments
requested.
AGENCY:
SUMMARY: Customs and Border
Protection (CBP) of the Department of
Homeland Security has submitted the
following information collection request
to the Office of Management and Budget
(OMB) for review and approval in
accordance with the Paperwork
Reduction Act of 1995: Protest. This is
a proposed extension of an information
collection that was previously
approved. CBP is proposing that this
information collection be extended
without a change to the burden hours.
This document is published to obtain
comments form the public and affected
agencies. This proposed information
collection was previously published in
the Federal Register (71 FR 19197) on
April 13, 2006, allowing for a 60-day
comment period. This notice allows for
an additional 30 days for public
comments. This process is conducted in
accordance with 5 CFR 1320.10.
DATES: Written comments should be
received on or before July 31, 2006.
ADDRESSES: Written comments and/or
suggestions regarding the items
contained in this notice, especially the
estimated public burden and associated
response time, should be directed to the
Office of Management and Budget Desk
Officer at Nathan.Lesser@omb.eop.gov.
SUPPLEMENTARY INFORMATION: The
Bureau of Customs and Border
Protection (CBP) encourages the general
public and affected Federal agencies to
submit written comments and
suggestions on proposed and/or
continuing information collection
requests pursuant to the Paperwork
Reduction Act of 1995 (Pub. L. 104–13).
Your comments should address one of
the following four points:
(1) Evaluate whether the proposed
collection of information is necessary
for the Proper performance of the
functions of the agency/component,
including whether the information will
have practical utility;
(2) Evaluate the accuracy of the
agencies/components estimate of the
burden of the proposed collection of
information, including the validity of
the methodology and assumptions used;
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(3) Enhance the quality, utility, and
clarity of the information to be
collected; and
(4) Minimize the burden of the
collections of information on those who
are to respond, including the use of
appropriate automated, electronic,
mechanical, or other technological
collection techniques or other forms of
information technology, e.g., permitting
electronic submission of responses.
Title: Protest.
OMB Number: 1651–0017.
Form Number: CBP Form 19.
Abstract: This collection is used by an
importer, filer, or any party at interest
to petition CBP, or Protest any action or
charge, made by the port director on or
against any; imported merchandise,
merchandise excluded from entry, or
merchandise entered into or withdrawn
from a bonded warehouse.
Current Actions: This submission is to
extend the expiration date without a
change to the burden hours.
Type of Review: Extension (without
change).
Affected Public: Business.
Estimated Number of Respondents:
3,750.
Estimated Time per Respondent: 6
hours.
Estimated Total Annual Burden
Hours: 67,995.
Estimated Total Annualized Cost on
the Public: N/A.
If additional information is required
contact: Tracey Denning, Bureau of
Customs and Border Protection, 1300
Pennsylvania Avenue, NW., Room
3.2.C, Washington, DC 20229, at 202–
344–1429.
Dated: June 15, 2006.
Tracey Denning,
Agency Clearance Officer, Information
Services Branch.
[FR Doc. 06–5895 Filed 6–29–06; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOMELAND
SECURITY
Bureau of Customs and Border
Protection
Modification of the CBP NCAP Test
Regarding Reconciliation for Entries
Under the Dominican Republic-Central
America-United States Free Trade
Agreement
Customs and Border Protection,
Homeland Security.
ACTION: General notice.
AGENCY:
SUMMARY: This document announces a
modification to the Customs and Border
Protection Automated Commercial
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Federal Register / Vol. 71, No. 126 / Friday, June 30, 2006 / Notices
rwilkins on PROD1PC63 with NOTICES_1
System (ACS) Reconciliation prototype
test that adds to the issues subject to the
Reconciliation process those arising
under the Dominican Republic-Central
America-United States Free Trade
Agreement. Other than this
modification, the test remains the same
as set forth in previously published
Federal Register notices.
DATES: The test modification set forth in
this document is effective on September
28, 2006. The two-year testing period of
this Reconciliation prototype
commenced on October 1, 1998, and
was extended indefinitely starting
October 1, 2000. Applications to
participate in the test will be accepted
throughout the duration of the test.
ADDRESSES: Written inquiries regarding
participation in the Reconciliation
prototype test and/or applications to
participate should be addressed to Ms.
Monica Crockett, Reconciliation Team,
Bureau of Customs and Border
Protection, 1300 Pennsylvania Ave.,
NW., Room 5.2A, Washington, DC
20229–0001. Answers to inquiries
regarding the test are also available at
Recon.Help@dhs.gov.
FOR FURTHER INFORMATION CONTACT: Ms.
Monica Crockett at (202) 344–2511.
SUPPLEMENTARY INFORMATION:
Background
Reconciliation, a planned component
of the National Customs Automation
Program (NCAP), as provided for in
Title VI (Subtitle B) of the North
American Free Trade Agreement
Implementation Act (the NAFTA
Implementation Act; Public Law 103–
182, 107 Stat. 2057 (December 8, 1993)),
is currently being tested by the Bureau
of Customs and Border Protection (CBP)
under the CBP Automated Commercial
System (ACS) Prototype Test. CBP
announced and explained the test in a
general notice document published in
the Federal Register (63 FR 6257) on
February 6, 1998. Clarifications and
operational changes were announced in
subsequent Federal Register notices: 63
FR 44303, published on August 18,
1998; 64 FR 39187, published on July
21, 1999; 64 FR 73121, published on
December 29, 1999; 66 FR 14619,
published on March 13, 2001; 67 FR
61200, published on September 27,
2002 (with a correction document
published at 67 FR 68238 on November
8, 2002); 69 FR 53730, published on
September 2, 2004; 70 FR 1730,
published on January 10, 2005; and 70
FR 46882, published on August 11,
2005. A Federal Register (65 FR 55326)
notice published on September 13,
2000, extended the prototype
indefinitely. This document announces
VerDate Aug<31>2005
16:30 Jun 29, 2006
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a modification to the Reconciliation test
to expand the issues subject to
Reconciliation to include those arising
under the Dominican Republic-Central
America-United States Free Trade
Agreement. Aside from this
modification, the test remains as set
forth in the previously published
Federal Register notices.
For application requirements, see the
Federal Register notices published on
February 6, 1998, and August 18, 1998.
Additional information regarding the
test can be found at https://
www.customs.gov/xp/cgov/import/
cargo_summary/reconciliation/.
Reconciliation Generally
Reconciliation is the process that
allows an importer, at the time an entry
summary is filed, to identify
undeterminable information (other than
that affecting admissibility) to CBP and
to provide that outstanding information
at a later date. The importer identifies
the outstanding information by means of
an electronic ‘‘flag’’ which is placed on
the entry summary at the time the entry
summary is filed and payment
(applicable duty, taxes, and fees) is
made. Previously published Federal
Register documents have set forth that
the issues for which an entry summary
may be ‘‘flagged’’ (for the purpose of
later reconciliation) are limited and
relate to: (1) Value issues other than
claims based on latent manufacturing
defects; (2) classification issues, on a
limited basis; (3) issues concerning
value aspects of entries filed under
heading 9802, Harmonized Tariff
Schedule of the United States (HTSUS)
(9802 issues); and (4) issues concerning
merchandise entered under the North
American Free Trade Agreement
(NAFTA issues/claims) and under the
United States-Chile Free Trade
Agreement (CFTA or Chile issues/
claims) that are eligible for treatment
under 19 U.S.C. 1520(d).
The flagged entry summary (the
underlying entry summary) is liquidated
for all aspects of the entry except those
issues that were flagged. The means of
providing the outstanding information
at a later date relative to the flagged
issues is through the filing of a
Reconciliation entry. The flagged issues
will be liquidated at the time the
Reconciliation entry is liquidated. Any
adjustments in duties, taxes, and/or fees
owed will be made at that time. (See the
February 6, 1998, Federal Register
notice for a more detailed presentation
of the basic Reconciliation process.)
CBP reminds test participants that the
filing of a Reconciliation entry, like the
filing of a regular consumption entry, is
governed by 19 U.S.C. 1484 and can be
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37597
done only by the importer of record as
defined in that statute.
Test Modification
The Agreement and the Implementation
Act
The Dominican Republic-Central
America-United States Free Trade
Agreement (CAFTA–DR or the
Agreement) was entered into by the
governments of Costa Rica, the
Dominican Republic, El Salvador,
Guatemala, Honduras, Nicaragua, and
the United States on August 5, 2004.
The United States Congress approved
the CAFTA–DR in the Dominican
Republic-Central America-United States
Free Trade Agreement Implementation
Act (the Implementation Act), Public
Law 109–53, 119 Stat. 462 (19 U.S.C.
4001 et seq.). Under the Implementation
Act, the provisions of the CAFTA–DR
become effective for individual CAFTA–
DR countries (defined under the
Implementation Act to include all
countries that are signatory to the
Agreement except the United States)
only when the Agreement enters into
force for a CAFTA–DR country upon
issuance of a presidential proclamation
to that effect, an action that is
conditioned upon the fulfillment of
certain requirements (i.e., the CAFTA–
DR country has taken measures to
comply with the provisions of the
Agreement). Importations of originating
goods of such a CAFTA–DR country are
entitled to the benefits of the Agreement
as of the effective date set forth in the
presidential proclamation and in
accordance with the Implementation
Act and new General Note 29 of the
Harmonized Tariff Schedule of the
United States (HTS).
As of the date of this notice, the
Agreement has entered into force for
three CAFTA–DR countries: El
Salvador, in accordance with
Presidential Proclamation 7987, issued
on February 28, 2006 (71 FR 10827;
March 2, 2006) (see also U.S.
International Trade Commission
(USITC) Publication 3829, February
2006), and Honduras and Nicaragua, in
accordance with Presidential
Proclamation 7996, issued on March 31,
2006 (71 FR 16971; April 4, 2006) (see
also USITC Publication 3845, April
2006).
Ordinary CAFTA–DR Claim and PostImportation CAFTA–DR Claim Under 19
U.S.C. 1520(d)
A claim for preferential tariff
treatment for an originating CAFTA–DR
good, in accordance with CAFTA–DR
and applicable procedures (regulations
are forthcoming), is made at the time of
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37598
Federal Register / Vol. 71, No. 126 / Friday, June 30, 2006 / Notices
rwilkins on PROD1PC63 with NOTICES_1
entry summary. (See General Note 29,
HTSUS, for rules of origin.) However, in
some instances, an importer may not be
able to make the claim at that time,
usually because the importer does not
possess all the information or
documentation required. In those
instances, an importer may make a postimportation CAFTA–DR claim under 19
U.S.C. 1520(d) (section 1520(d)),
pursuant to an amendment to that
section made by the Implementation Act
(section 207). Under this amendment to
section 1520(d), entries of goods
qualifying under CAFTA–DR rules of
origin are eligible for reliquidation
when preferential tariff treatment under
CAFTA–DR is not claimed at the time
of importation, notwithstanding that a
protest under 19 U.S.C. 1514 (section
1514) is not timely filed. (A section
1514 protest is a means of objecting to,
among other things, the liquidation of
an entry by filing the protest within 180
days of the liquidation (or other
protestable decision or action by CBP).)
A claimant must file a claim under
section 1520(d) within one year of the
applicable importation and meet other
requirements, such as applicable
documentary requirements, including
(when requested by CBP) the filing of a
certification or information
demonstrating that the entered goods
are originating CAFTA–DR goods.
Post-Importation CAFTA–DR Claim
Under Reconciliation
This notice announces that a postimportation claim for preferential tariff
treatment under section 1520(d) for an
entry filed pursuant to the CAFTA–DR
also may be made under the
Reconciliation test, in the same way as
a post-importation NAFTA or Chile
claim may be made (see, respectively,
notices published in the Federal
Register on September 27, 2002, and
September 2, 2004, cited previously).
This alternative requires that an
importer follow the Reconciliation test
procedure which, in contrast to the
ordinary section 1520(d) procedure
described above, requires action at the
time of entry. That action is to flag the
entry summary for the CAFTA–DR
issue(s), which will be followed later by
the filing of a Reconciliation entry
within one year of the applicable
importation. It is noted that CAFTA–DR
Reconciliation entries cannot include
other Reconciliation-eligible issues; i.e.,
a CAFTA–DR Reconciliation entry is
limited to covering only CAFTA–DR
issues (claims). NAFTA and Chile
Reconciliation entries/claims are
similarly limited.
This CAFTA–DR Reconciliation
alternative is available for eligible
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16:30 Jun 29, 2006
Jkt 208001
importations involving any eligible
CAFTA–DR country (a CAFTA–DR
country as to which the Agreement has
entered into force) 90 days after the date
this notice is published in the Federal
Register.
Reconciliation CAFTA–DR Claim
Precludes Claims by Other Means
CBP emphasizes that once an
importer flags an entry summary for
CAFTA–DR issues for Reconciliation,
indicating that it is pursuing the postimportation, section 1520(d) claim
through the Reconciliation process, the
only means of perfecting the CAFTA–
DR claim is by completing the
Reconciliation process by filing a timely
Reconciliation entry. (See the
September 27, 2002, Federal Register
notice for an explanation of this same
limitation relative to NAFTA and Chile
issues.) By flagging the entry summary,
the importer makes a commitment to
perfect the claim only through the
Reconciliation process—to, in effect,
waive filing the claim any other way.
Thus, once entries have been flagged for
Reconciliation of CAFTA–DR issues,
CBP will not accept a claim filed for
those entries under the ordinary section
1520(d) procedure. This will prevent
dual filings for the same underlying
entry summaries.
Benefits of Reconciliation
Finally, CBP recommends the use of
the Reconciliation test procedure for
making post-importation CAFTA–DR
claims because the test procedure
provides the importer with several
benefits. First, using the test procedure
is a simpler means of filing claims: i.e.,
the importer is able to make potentially
thousands of CAFTA–DR claims on one
Reconciliation entry. Second, the
importer can receive one check from
CBP rather than many (even up to
thousands) upon CBP’s liquidation of a
Reconciliation entry and issuance of a
refund. Third, because processing
CAFTA–DR claims under Reconciliation
is simpler for CBP, the refund delivery
system is more efficient.
Dated: June 23, 2006.
William S. Heffelfinger III,
Acting Assistant Commissioner, Office of
Field Operations.
[FR Doc. 06–5875 Filed 6–29–06; 8:45 am]
BILLING CODE 9111–14–P
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DEPARTMENT OF HOMELAND
SECURITY
Customs and Border Protection
Quarterly IRS Interest Rates Used in
Calculating Interest on Overdue
Accounts and Refunds on Customs
Duties
Bureau of Customs and Border
Protection, Department of Homeland
Security.
ACTION: General notice.
AGENCY:
SUMMARY: This notice advises the public
of the quarterly Internal Revenue
Service interest rates used to calculate
interest on overdue accounts
(underpayments) and refunds
(overpayments) of customs duties. For
the calendar quarter beginning July 1,
2006, the interest rates for overpayments
will increase from 6 to 7 percent for
corporations and from 7 to 8 percent for
non-corporations, and the interest rate
for underpayments will increase from 7
to 8 percent. This notice is published for
the convenience of the importing public
and Customs and Border Protection
personnel.
DATES: Effective Date: July 1, 2006.
FOR FURTHER INFORMATION CONTACT: Ron
Wyman, Revenue Division, Collection
and Refunds Branch, 6650 Telecom
Drive, Suite #100, Indianapolis, Indiana
46278; telephone (317) 614–4516.
SUPPLEMENTARY INFORMATION:
Background
Pursuant to 19 U.S.C. 1505 and
Treasury Decision 85–93, published in
the Federal Register on May 29, 1985
(50 FR 21832), the interest rate paid on
applicable overpayments or
underpayments of customs duties must
be in accordance with the Internal
Revenue Code rate established under 26
U.S.C. 6621 and 6622. Section 6621 was
amended (at paragraph (a)(1)(B) by the
Internal Revenue Service Restructuring
and Reform Act of 1998, Pub. L. 105–
206, 112 Stat. 685) to provide different
interest rates applicable to
overpayments: One for corporations and
one for non-corporations.
The interest rates are based on the
Federal short-term rate and determined
by the Internal Revenue Service (IRS) on
behalf of the Secretary of the Treasury
on a quarterly basis. The rates effective
for a quarter are determined during the
first-month period of the previous
quarter.
In Revenue Ruling 2006–30, the IRS
determined the rates of interest for the
calendar quarter beginning July 1, 2006,
and ending September 30, 2006. The
interest rate paid to the Treasury for
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]]>Agencies
[Federal Register Volume 71, Number 126 (Friday, June 30, 2006)]
[Notices]
[Pages 37596-37598]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-5875]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
Modification of the CBP NCAP Test Regarding Reconciliation for
Entries Under the Dominican Republic-Central America-United States Free
Trade Agreement
AGENCY: Customs and Border Protection, Homeland Security.
ACTION: General notice.
-----------------------------------------------------------------------
SUMMARY: This document announces a modification to the Customs and
Border Protection Automated Commercial
[[Page 37597]]
System (ACS) Reconciliation prototype test that adds to the issues
subject to the Reconciliation process those arising under the Dominican
Republic-Central America-United States Free Trade Agreement. Other than
this modification, the test remains the same as set forth in previously
published Federal Register notices.
DATES: The test modification set forth in this document is effective on
September 28, 2006. The two-year testing period of this Reconciliation
prototype commenced on October 1, 1998, and was extended indefinitely
starting October 1, 2000. Applications to participate in the test will
be accepted throughout the duration of the test.
ADDRESSES: Written inquiries regarding participation in the
Reconciliation prototype test and/or applications to participate should
be addressed to Ms. Monica Crockett, Reconciliation Team, Bureau of
Customs and Border Protection, 1300 Pennsylvania Ave., NW., Room 5.2A,
Washington, DC 20229-0001. Answers to inquiries regarding the test are
also available at Recon.Help@dhs.gov.
FOR FURTHER INFORMATION CONTACT: Ms. Monica Crockett at (202) 344-2511.
SUPPLEMENTARY INFORMATION:
Background
Reconciliation, a planned component of the National Customs
Automation Program (NCAP), as provided for in Title VI (Subtitle B) of
the North American Free Trade Agreement Implementation Act (the NAFTA
Implementation Act; Public Law 103-182, 107 Stat. 2057 (December 8,
1993)), is currently being tested by the Bureau of Customs and Border
Protection (CBP) under the CBP Automated Commercial System (ACS)
Prototype Test. CBP announced and explained the test in a general
notice document published in the Federal Register (63 FR 6257) on
February 6, 1998. Clarifications and operational changes were announced
in subsequent Federal Register notices: 63 FR 44303, published on
August 18, 1998; 64 FR 39187, published on July 21, 1999; 64 FR 73121,
published on December 29, 1999; 66 FR 14619, published on March 13,
2001; 67 FR 61200, published on September 27, 2002 (with a correction
document published at 67 FR 68238 on November 8, 2002); 69 FR 53730,
published on September 2, 2004; 70 FR 1730, published on January 10,
2005; and 70 FR 46882, published on August 11, 2005. A Federal Register
(65 FR 55326) notice published on September 13, 2000, extended the
prototype indefinitely. This document announces a modification to the
Reconciliation test to expand the issues subject to Reconciliation to
include those arising under the Dominican Republic-Central America-
United States Free Trade Agreement. Aside from this modification, the
test remains as set forth in the previously published Federal Register
notices.
For application requirements, see the Federal Register notices
published on February 6, 1998, and August 18, 1998. Additional
information regarding the test can be found at https://www.customs.gov/
xp/cgov/import/cargo_summary/reconciliation/.
Reconciliation Generally
Reconciliation is the process that allows an importer, at the time
an entry summary is filed, to identify undeterminable information
(other than that affecting admissibility) to CBP and to provide that
outstanding information at a later date. The importer identifies the
outstanding information by means of an electronic ``flag'' which is
placed on the entry summary at the time the entry summary is filed and
payment (applicable duty, taxes, and fees) is made. Previously
published Federal Register documents have set forth that the issues for
which an entry summary may be ``flagged'' (for the purpose of later
reconciliation) are limited and relate to: (1) Value issues other than
claims based on latent manufacturing defects; (2) classification
issues, on a limited basis; (3) issues concerning value aspects of
entries filed under heading 9802, Harmonized Tariff Schedule of the
United States (HTSUS) (9802 issues); and (4) issues concerning
merchandise entered under the North American Free Trade Agreement
(NAFTA issues/claims) and under the United States-Chile Free Trade
Agreement (CFTA or Chile issues/claims) that are eligible for treatment
under 19 U.S.C. 1520(d).
The flagged entry summary (the underlying entry summary) is
liquidated for all aspects of the entry except those issues that were
flagged. The means of providing the outstanding information at a later
date relative to the flagged issues is through the filing of a
Reconciliation entry. The flagged issues will be liquidated at the time
the Reconciliation entry is liquidated. Any adjustments in duties,
taxes, and/or fees owed will be made at that time. (See the February 6,
1998, Federal Register notice for a more detailed presentation of the
basic Reconciliation process.)
CBP reminds test participants that the filing of a Reconciliation
entry, like the filing of a regular consumption entry, is governed by
19 U.S.C. 1484 and can be done only by the importer of record as
defined in that statute.
Test Modification
The Agreement and the Implementation Act
The Dominican Republic-Central America-United States Free Trade
Agreement (CAFTA-DR or the Agreement) was entered into by the
governments of Costa Rica, the Dominican Republic, El Salvador,
Guatemala, Honduras, Nicaragua, and the United States on August 5,
2004. The United States Congress approved the CAFTA-DR in the Dominican
Republic-Central America-United States Free Trade Agreement
Implementation Act (the Implementation Act), Public Law 109-53, 119
Stat. 462 (19 U.S.C. 4001 et seq.). Under the Implementation Act, the
provisions of the CAFTA-DR become effective for individual CAFTA-DR
countries (defined under the Implementation Act to include all
countries that are signatory to the Agreement except the United States)
only when the Agreement enters into force for a CAFTA-DR country upon
issuance of a presidential proclamation to that effect, an action that
is conditioned upon the fulfillment of certain requirements (i.e., the
CAFTA-DR country has taken measures to comply with the provisions of
the Agreement). Importations of originating goods of such a CAFTA-DR
country are entitled to the benefits of the Agreement as of the
effective date set forth in the presidential proclamation and in
accordance with the Implementation Act and new General Note 29 of the
Harmonized Tariff Schedule of the United States (HTS).
As of the date of this notice, the Agreement has entered into force
for three CAFTA-DR countries: El Salvador, in accordance with
Presidential Proclamation 7987, issued on February 28, 2006 (71 FR
10827; March 2, 2006) (see also U.S. International Trade Commission
(USITC) Publication 3829, February 2006), and Honduras and Nicaragua,
in accordance with Presidential Proclamation 7996, issued on March 31,
2006 (71 FR 16971; April 4, 2006) (see also USITC Publication 3845,
April 2006).
Ordinary CAFTA-DR Claim and Post-Importation CAFTA-DR Claim Under 19
U.S.C. 1520(d)
A claim for preferential tariff treatment for an originating CAFTA-
DR good, in accordance with CAFTA-DR and applicable procedures
(regulations are forthcoming), is made at the time of
[[Page 37598]]
entry summary. (See General Note 29, HTSUS, for rules of origin.)
However, in some instances, an importer may not be able to make the
claim at that time, usually because the importer does not possess all
the information or documentation required. In those instances, an
importer may make a post-importation CAFTA-DR claim under 19 U.S.C.
1520(d) (section 1520(d)), pursuant to an amendment to that section
made by the Implementation Act (section 207). Under this amendment to
section 1520(d), entries of goods qualifying under CAFTA-DR rules of
origin are eligible for reliquidation when preferential tariff
treatment under CAFTA-DR is not claimed at the time of importation,
notwithstanding that a protest under 19 U.S.C. 1514 (section 1514) is
not timely filed. (A section 1514 protest is a means of objecting to,
among other things, the liquidation of an entry by filing the protest
within 180 days of the liquidation (or other protestable decision or
action by CBP).) A claimant must file a claim under section 1520(d)
within one year of the applicable importation and meet other
requirements, such as applicable documentary requirements, including
(when requested by CBP) the filing of a certification or information
demonstrating that the entered goods are originating CAFTA-DR goods.
Post-Importation CAFTA-DR Claim Under Reconciliation
This notice announces that a post-importation claim for
preferential tariff treatment under section 1520(d) for an entry filed
pursuant to the CAFTA-DR also may be made under the Reconciliation
test, in the same way as a post-importation NAFTA or Chile claim may be
made (see, respectively, notices published in the Federal Register on
September 27, 2002, and September 2, 2004, cited previously). This
alternative requires that an importer follow the Reconciliation test
procedure which, in contrast to the ordinary section 1520(d) procedure
described above, requires action at the time of entry. That action is
to flag the entry summary for the CAFTA-DR issue(s), which will be
followed later by the filing of a Reconciliation entry within one year
of the applicable importation. It is noted that CAFTA-DR Reconciliation
entries cannot include other Reconciliation-eligible issues; i.e., a
CAFTA-DR Reconciliation entry is limited to covering only CAFTA-DR
issues (claims). NAFTA and Chile Reconciliation entries/claims are
similarly limited.
This CAFTA-DR Reconciliation alternative is available for eligible
importations involving any eligible CAFTA-DR country (a CAFTA-DR
country as to which the Agreement has entered into force) 90 days after
the date this notice is published in the Federal Register.
Reconciliation CAFTA-DR Claim Precludes Claims by Other Means
CBP emphasizes that once an importer flags an entry summary for
CAFTA-DR issues for Reconciliation, indicating that it is pursuing the
post-importation, section 1520(d) claim through the Reconciliation
process, the only means of perfecting the CAFTA-DR claim is by
completing the Reconciliation process by filing a timely Reconciliation
entry. (See the September 27, 2002, Federal Register notice for an
explanation of this same limitation relative to NAFTA and Chile
issues.) By flagging the entry summary, the importer makes a commitment
to perfect the claim only through the Reconciliation process--to, in
effect, waive filing the claim any other way. Thus, once entries have
been flagged for Reconciliation of CAFTA-DR issues, CBP will not accept
a claim filed for those entries under the ordinary section 1520(d)
procedure. This will prevent dual filings for the same underlying entry
summaries.
Benefits of Reconciliation
Finally, CBP recommends the use of the Reconciliation test
procedure for making post-importation CAFTA-DR claims because the test
procedure provides the importer with several benefits. First, using the
test procedure is a simpler means of filing claims: i.e., the importer
is able to make potentially thousands of CAFTA-DR claims on one
Reconciliation entry. Second, the importer can receive one check from
CBP rather than many (even up to thousands) upon CBP's liquidation of a
Reconciliation entry and issuance of a refund. Third, because
processing CAFTA-DR claims under Reconciliation is simpler for CBP, the
refund delivery system is more efficient.
Dated: June 23, 2006.
William S. Heffelfinger III,
Acting Assistant Commissioner, Office of Field Operations.
[FR Doc. 06-5875 Filed 6-29-06; 8:45 am]
BILLING CODE 9111-14-P
