Dominican Republic-Central America-United States Free Trade Agreement, 33673-33691 [E8-13252]

Agencies

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

[Federal Register Volume 73, Number 115 (Friday, June 13, 2008)]
[Rules and Regulations]
[Pages 33673-33691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-13252]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

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

[USCBP-2008-0060; CBP Dec. 08-22]
RIN 1505-AB84


Dominican Republic--Central America--United States Free Trade 
Agreement

AGENCIES: Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Interim rule; solicitation of comments.

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SUMMARY: This rule amends title 19 of the Code of Federal Regulations 
(``CFR'') on an interim basis to implement the preferential tariff 
treatment and other customs-related provisions of the Dominican 
Republic--Central America--United States Free Trade Agreement.

DATES: Interim rule effective June 13, 2008; comments must be received 
by August 12, 2008.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments via docket number 
USCBP-2008-0060.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, U.S. 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 for this rulemaking. All comments received will be 
posted without change to https://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to https://www.regulations.gov. Submitted comments 
may also be inspected during regular business days between the hours of 
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch, 
Regulations and Rulings, U.S. 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.

FOR FURTHER INFORMATION CONTACT: 
    Textile Operational Aspects: Robert Abels, Office of International 
Trade, (202) 344-1959.
    Other Operational Aspects: Lori Whitehurst, Office of International 
Trade, (202) 344-2722.
    Audit Aspects: Mark Hanson, Regulatory Audit, (202) 344-2977.
    Legal Aspects: Karen Greene, Office of International Trade, (202) 
572-8838.

SUPPLEMENTARY INFORMATION: 

Public Participation

    Interested persons are invited to participate in this rulemaking by

[[Page 33674]]

submitting written data, views, or arguments on all aspects of the 
interim rule. CBP also invites comments that relate to the economic, 
environmental, or federalism effects that might result from this 
interim rule. Comments that will provide the most assistance to CBP in 
developing these regulations will reference a specific portion of the 
interim rule, explain the reason for any recommended change, and 
include data, information, or authority that support such recommended 
change. See ADDRESSES above for information on how to submit comments.

Background

    On August 5, 2004, the governments of Costa Rica, the Dominican 
Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United 
States signed the Dominican Republic--Central America--United States 
Free Trade Agreement (``CAFTA-DR'' or ``Agreement''). The stated 
objectives of the CAFTA-DR include: strengthening the special bonds of 
friendship and cooperation among the signatory countries and promoting 
regional economic integration; contributing to the harmonious 
development and expansion of world trade and providing a catalyst to 
broader international cooperation; creating an expanded and secure 
market for goods and services produced in the region; establishing 
clear and mutually advantageous rules governing trade among the 
signatory countries; ensuring a predictable commercial framework for 
business planning and investment; seeking to facilitate regional trade 
by promoting efficient and transparent customs procedures that reduce 
costs and ensure predictability for importers and exporters; fostering 
creativity and innovation, and promoting trade in goods and services 
that are the subject of intellectual property rights; promoting 
transparency and eliminating bribery and corruption in international 
trade and investment; protecting, enhancing, and enforcing basic 
workers' rights; creating new employment opportunities and improving 
working conditions and living standards in the region; and implementing 
the Agreement in a manner consistent with environmental protection and 
conservation, promoting sustainable development, and strengthening 
cooperation on environmental matters.
    The provisions of the CAFTA-DR were adopted by the United States 
with the enactment on August 2, 2005, of the Dominican Republic--
Central America--United States Free Trade Agreement Implementation Act 
(the ``Act''), Public Law 109-53, 119 Stat. 462 (19 U.S.C. 4001 et 
seq.). Section 210 of the Act requires that regulations be prescribed 
as necessary to implement these provisions of the CAFTA-DR.
    On February 28, 2006, the President signed Proclamation 7987 to 
implement the provisions of the CAFTA-DR with respect to El Salvador. 
The Proclamation, which was published in the Federal Register on March 
2, 2006 (71 FR 10827), modified the Harmonized Tariff Schedule of the 
United States (``HTSUS'') as set forth in Annexes I and II of 
Publication 3829 of the U.S. International Trade Commission. The 
modifications to the HTSUS included the addition of new General Note 
29, incorporating the relevant CAFTA-DR rules of origin as set forth in 
the Act, and the insertion throughout the HTSUS of the preferential 
duty rates applicable to individual products under the CAFTA-DR where 
the special program indicator ``P'' appears in parenthesis in the 
``Special'' rate of duty subcolumn. Presidential Proclamation 7996 
dated March 31, 2006, which was published in the Federal Register on 
April 4, 2006 (71 FR 16971), implemented the CAFTA-DR with respect to 
Honduras and Nicaragua. Presidential Proclamation 8034 dated June 30, 
2006, published in the Federal Register on July 6, 2006 (71 FR 38509), 
implemented the CAFTA-DR with respect to Guatemala. Presidential 
Proclamation 8111 dated February 28, 2007, published in the Federal 
Register on March 6, 2007 (72 FR 10025), implemented the CAFTA-DR with 
respect to the Dominican Republic.
    Customs and Border Protection (``CBP'') is responsible for 
administering the provisions of the CAFTA-DR and the Act that relate to 
the importation of goods into the United States from a CAFTA-DR Party 
for which the Agreement has entered into force. Those customs-related 
CAFTA-DR provisions which require implementation through regulation 
include certain tariff and non-tariff provisions within Chapter Two 
(General Definitions), Chapter Three (National Treatment and Market 
Access for Goods), and Chapter Four (Rules of Origin and Origin 
Procedures).
    Certain general definitions set forth in Chapter Two of the CAFTA-
DR have been incorporated into the CAFTA-DR implementing regulations. 
The tariff-related provisions within CAFTA-DR Chapter Three that are 
the subject of regulatory action in this interim rule are Article 3.6 
(Goods Re-entered after Repair or Alteration) and those relating 
specifically to textile and apparel goods are Article 3.24 (Customs 
Cooperation), Article 3.25 (Rules of Origin and Related Matters), 
Article 3.28 and Annex 3.28 (Preferential Tariff Treatment for Non-
Originating Apparel Goods of Nicaragua), and Article 3.29 
(Definitions).
    Section A of Chapter Four of the CAFTA-DR sets forth the rules for 
determining whether an imported good qualifies as an originating good 
of a Party and, as such, is therefore eligible for preferential tariff 
(duty-free or reduced duty) treatment under the CAFTA-DR as provided 
for in the HTSUS. The basic rules of origin in Section A of Chapter 
Four are set forth in General Note 29, HTSUS. Under Article 4.1 of 
Chapter Four, originating goods may be grouped in three broad 
categories: (1) Goods that are wholly obtained or produced entirely in 
the territory of one or more of the Parties; (2) goods that are 
produced entirely in the territory of one or more of the Parties and 
that satisfy the specific rules of origin in CAFTA-DR Annex 4.1 (change 
in tariff classification requirement and/or regional value content 
requirement) and all other applicable requirements of Chapter Four; and 
(3) goods that are produced entirely in the territory of one or more 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. Articles 4.3 and 4.4 set 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 4.5 allows production that takes place in the 
territory of one or more of the Parties to be accumulated such that, 
provided other requirements are met, the resulting good is considered 
originating. Article 4.6 provides a de minimis criterion. The remaining 
Articles within Section A of Chapter Four consist of additional sub-
rules, applicable to the originating good concept, involving fungible 
goods and materials, accessories, spare parts, and tools, packaging 
materials, packing materials, indirect materials, transit and 
transshipment, sets, and consultation and modifications. All Articles 
within Section A are reflected in the CAFTA-DR implementing 
regulations, except for Article 4.14 (Consultation and Modifications).
    Section B of Chapter Four sets forth procedures that apply under 
the CAFTA-DR in regard to claims for preferential tariff treatment. 
Specifically, Section B includes provisions concerning obligations 
related to importations and exportations, claims for preferential 
tariff treatment, record keeping

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requirements, verification of preference claims, common guidelines, and 
definitions of terms used within the context of the rules of origin. 
All Articles within Section B, except for Article 4.21 (Common 
Guidelines), are reflected in these implementing regulations.
    In order to provide transparency and facilitate their use, the 
majority of the CAFTA-DR implementing regulations set forth in this 
document have been included within Subpart J in part 10 of the CBP 
regulations (19 CFR part 10). However, implementation of the tariff 
preference and related provisions of CAFTA-DR has also been effected 
through amendments to a number of other regulatory provisions outside 
of Subpart J, part 10 within the CBP regulations. The regulatory 
changes are discussed below in the order in which they appear in this 
document.

Discussion of Amendments

Part 10

    Section 10.31(f) concerns temporary importations under bond. It is 
amended by adding references to certain goods originating in a CAFTA-DR 
Party for which, like goods originating in Canada, Mexico, Singapore, 
Chile, Morocco, and Bahrain, no bond or other security will be required 
when imported temporarily for prescribed uses. The provisions of CAFTA-
DR Article 3.5 (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 J

General Provisions
    Section 10.581 outlines the scope of Subpart J, Part 10 of the CBP 
regulations. This section also clarifies that, except where the context 
otherwise requires, the requirements contained in Subpart J, 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 J, Part 10 
are in addition to the basic entry requirements contained in Parts 141-
143 of the CBP regulations.
    Section 10.582 sets forth definitions of common terms used in 
multiple contexts or places within Subpart J, Part 10. Although the 
majority of the definitions in this section are based on definitions 
contained in Article 2.1, Annex 2.1, and Article 3.29 of the CAFTA-DR, 
and Sec.  3 of the Act, other definitions have also been included to 
clarify the application of the regulatory texts. Additional definitions 
that apply in a more limited Subpart J, Part 10 context are set forth 
elsewhere with the substantive provisions to which they relate.
Import Requirements
    Section 10.583 sets forth the procedure for claiming CAFTA-DR 
preferential tariff treatment at the time of entry and, as provided in 
CAFTA-DR Article 4.16.1, states that an importer may make a claim for 
CAFTA-DR preferential tariff treatment based on a certification by the 
importer, exporter, or producer or the importer's knowledge that the 
good qualifies as an originating good. Section 10.583 also provides, 
consistent with CAFTA-DR Article 4.15.4(d), that when an importer has 
reason to believe that a claim is based on inaccurate information, the 
importer must correct the claim and pay any duties that may be due.
    Section 10.584, which is based on CAFTA-DR Articles 4.15.4 and 
4.16, requires a U.S. importer, upon request, to submit a copy of the 
certification of the importer, exporter, or producer if the 
certification forms the basis for the claim. Section 10.584 specifies 
the information that must be included on the certification, sets forth 
the circumstances under which the certification may be prepared by the 
exporter or producer of the good, and provides that the certification 
may be used either for a single importation or for multiple 
importations of identical goods.
    Section 10.585 sets forth certain importer obligations regarding 
the truthfulness of information and documents submitted in support of a 
claim for preferential tariff treatment. Section 10.586, which is based 
on CAFTA-DR Article 4.17, provides that the certification is not 
required for certain non-commercial or low-value importations.
    Section 10.587 implements CAFTA-DR Article 4.19 concerning the 
maintenance of relevant records regarding the imported good.
    Section 10.588, which reflects CAFTA-DR Article 4.15.2, authorizes 
the denial of CAFTA-DR tariff benefits if the importer fails to comply 
with any of the requirements under Subpart J, Part 10, CBP regulations.
Export Requirements
    Section 10.589, which implements CAFTA-DR Articles 4.18 and 4.19.1, 
sets forth certain obligations of a person who completes and issues a 
certification for a good exported from the United States to a Party. 
Paragraphs (a) and (b) of Sec.  10.589, reflecting CAFTA-DR Article 
4.18.1, require a person who completes such a certification to provide 
a copy of the certification to CBP upon request and to give prompt 
notification of any errors in the certification to every person to whom 
the certification was given. Paragraph (c) of Sec.  10.589 reflects 
Article 4.19.1, concerning the recordkeeping requirements that apply to 
a person who completes and issues a certification for a good exported 
from the United States to a Party.
Post-Importation Duty Refund Claims
    Sections 10.590 through 10.592 implement CAFTA-DR Article 4.15.5, 
which allows an importer who did not claim CAFTA-DR tariff benefits on 
a qualifying good at the time of importation 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 10.593 through 10.605 provide the implementing regulations 
regarding the rules of origin provisions of General Note 29, HTSUS, 
Chapter Four and Article 3.25 of the CAFTA-DR, and section 203 of the 
Act.

Definitions

    Section 10.593 sets forth terms that are defined for purposes of 
the rules of origin.

General Rules of Origin

    Section 10.594 sets forth the basic rules of origin established in 
Article 4.1 of the CAFTA-DR, section 203(b) of the Act, and General 
Note 29(b), HTSUS. The provisions of Sec.  10.594 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 29, HTSUS. 
Section 10.594(a) specifies those goods that are originating goods 
because they are wholly obtained or produced entirely in the territory 
of one or more of the Parties.
    Section 10.594(b) provides that goods that have been produced 
entirely in the territory of one or more of the Parties so that each 
non-originating material undergoes an applicable change in tariff 
classification and satisfies any applicable regional value content or 
other requirement set forth in General Note 29, HTSUS, are originating 
goods.

[[Page 33676]]

Essential to the rules in Sec.  10.594(b) are the specific rules of 
General Note 29(n), HTSUS, which are incorporated by reference.
    Section 10.594(c) provides that goods that have been produced 
entirely in the territory of one or more of the Parties exclusively 
from originating materials are originating goods.
Value Content
    Section 10.595 reflects CAFTA-DR Article 4.2 concerning the basic 
rules that apply for purposes of determining whether an imported good 
satisfies a minimum regional value content (``RVC'') requirement. 
Section 10.596, reflecting CAFTA-DR Articles 4.3 and 4.4, 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.
Accumulation
    Section 10.597, which is derived from CAFTA-DR Article 4.5, sets 
forth the rule by which originating materials from the territory of one 
or more of the Parties that are used in the production of a good in the 
territory of another Party will be considered to originate in the 
territory of that other country. In addition, this section also 
establishes that a good that is produced by one or more producers in 
the territory of one or more of the Parties is an originating good if 
the good satisfies all of the applicable requirements of the rules of 
origin of the CAFTA-DR.
De Minimis
    Section 10.598, as provided for in CAFTA-DR Article 4.6, sets forth 
de minimis rules for goods that may be considered to qualify as 
originating goods even though they fail to qualify as originating goods 
under the rules specified in Sec.  10.594. There are a number of 
exceptions to the de minimis rule as well as a separate rule for 
textile and apparel goods.
Fungible Goods and Materials
    Section 10.599, as provided for in CAFTA-DR Article 4.7, sets forth 
the rules by which ``fungible'' goods or materials may be claimed as 
originating.
Accessories, Spare Parts, or Tools
    Section 10.600, as set forth in CAFTA-DR Article 4.8, specifies the 
conditions under which a good's standard accessories, spare parts, or 
tools are: (1) Treated as originating goods; and (2) disregarded in 
determining whether all non-originating materials undergo an applicable 
change in tariff classification under General Note 29(n), HTSUS.
Packaging Materials and Packing Materials
    Sections 10.601 and 10.602, which are derived from CAFTA-DR 
Articles 4.9 and 4.10, respectively, provide that retail packaging 
materials and packing materials for shipment are to be disregarded with 
respect to their actual origin in determining whether non-originating 
materials undergo an applicable change in tariff classification under 
General Note 29(n), HTSUS. These sections also set forth the treatment 
of packaging and packing materials for purposes of the regional value 
content requirement of the note.
Indirect Materials
    Section 10.603, as set forth in CAFTA-DR Article 4.11, provides 
that indirect materials, as defined in Sec.  10.582(m), are considered 
to be originating materials without regard to where they are produced.
Transit and Transshipment
    Section 10.604, which is derived from CAFTA-DR Article 4.12, sets 
forth the rule that an originating good loses its originating status 
and is treated as a non-originating good if, subsequent to production 
in the territory of one or more of the Parties that qualifies the good 
as originating, the good: (1) Undergoes production outside the 
territories of the Parties, other than certain specified minor 
operations; or (2) does not remain under the control of customs 
authorities in the territory of a non-Party.
Goods Classifiable as Goods Put Up in Sets
    Section 10.605, which is based on CAFTA-DR Articles 3.25.9 (Rules 
of Origin and Related Matters) and 4.13 (Sets of Goods), provides that, 
notwithstanding the specific rules of General Note 29(n), HTSUS, goods 
classifiable as goods put up in sets for retail sale as provided for in 
General Rule of Interpretation 3, HTSUS, will not qualify as 
originating goods unless: (1) Each of the goods in the set is an 
originating good; or (2) the total value of the non-originating goods 
in the set does not exceed 10 percent of the adjusted value of the set 
in the case of textile or apparel goods, or 15 percent of the adjusted 
value of the set in the case of goods other than textile or apparel 
goods.
Tariff Preference Level
    Section 10.606 sets forth procedures for claiming CAFTA-DR tariff 
benefits for certain non-originating cotton or man-made fiber apparel 
goods of Nicaragua that are entitled to preference under an applicable 
tariff preference level (``TPL'').
    Section 10.607, which is based on CAFTA-DR Article 3.28 and Annex 
3.28, describes the non-originating cotton or man-made fiber apparel 
goods of Nicaragua that are eligible for TPL claims under the CAFTA-DR.
    Section 10.608, as authorized by Sec.  1634(c)(1) of the Pension 
Protection Act of 2006 (Pub. L. 109-280, 120 Stat. 1163), requires an 
importer claiming preferential tariff treatment on a non-originating 
cotton or man-made fiber apparel good of Nicaragua specified in Sec.  
10.607 to submit a certificate of eligibility issued by the Government 
of Nicaragua.
    Consistent with Sec.  10.604, Sec.  10.609 provides that a good of 
Nicaragua that is otherwise eligible for preferential tariff treatment 
under an applicable TPL will not be considered eligible for preference 
if it: (1) Undergoes production outside the territories of the Parties, 
other than certain specified minor operations; or (2) does not remain 
under the control of customs authorities in the territory of a non-
Party.
    Section 10.610 provides for the denial of a TPL claim if the 
importer fails to comply with any applicable requirement under Subpart 
J, Part 10, CBP regulations, including the failure to provide 
documentation, when requested by CBP, establishing that the good met 
the conditions relating to transshipment set forth in Sec.  10.609(a).
Origin Verifications and Determinations
    Section 10.616 implements CAFTA-DR Article 4.20 which concerns the 
conduct of verifications to determine whether imported goods are 
originating goods entitled to CAFTA-DR preferential tariff treatment. 
This section also governs the conduct of verifications directed to 
producers of materials that are used in the production of a good for 
which CAFTA-DR preferential duty treatment is claimed.
    Section 10.617, which reflects CAFTA-DR Article 3.24, sets forth 
the verification and enforcement procedures specifically relating to 
trade in textile and apparel goods.
    Section 10.618 provides the procedures that apply when preferential 
tariff treatment is denied on the basis of an origin verification 
conducted under this subpart.
    Section 10.619 implements CAFTA-DR Article 4.20.5 and Sec.  206(b) 
of the Act, concerning the denial of preferential tariff treatment in 
situations in which there is a pattern of conduct

[[Page 33677]]

by an importer, exporter, or producer of false or unsupported CAFTA-DR 
preference claims.
Penalties
    Section 10.620 concerns the general application of penalties to 
CAFTA-DR transactions and is based on CAFTA-DR Article 5.9.
    Section 10.621 reflects CAFTA-DR Article 4.15.3 and Sec.  206(a)(1) 
of the Act with regard to an exception to the application of penalties 
in the case of an importer who promptly and voluntarily makes a 
corrected claim and pays any duties owing.
    Section 10.622 implements CAFTA-DR Article 4.18.2 and Sec.  
206(a)(2) of the Act, concerning an exception to the application of 
penalties in the case of a U.S. exporter or producer who promptly and 
voluntarily provides notification of the making of an incorrect 
certification with respect to a good exported to a Party.
    Section 10.623 sets forth the circumstances under which the making 
of a corrected claim or certification by an importer or the providing 
of notification of an incorrect certification by a U.S. exporter or 
producer will be considered to have been done ``promptly and 
voluntarily''. Corrected claims or certifications that fail to meet 
these requirements are not excepted from penalties, although the U.S. 
importer, exporter, or producer making the corrected claim or 
certification may, depending on the circumstances, qualify for a 
reduced penalty as a prior disclosure under 19 U.S.C. 1592(c)(4). 
Section 10.623 also specifies the content of the statement that must 
accompany each corrected claim or certification.
Goods Returned After Repair or Alteration
    Section 10.624 implements CAFTA-DR Article 3.6 regarding duty-free 
treatment for goods re-entered after repair or alteration in a CAFTA-DR 
Party.
Retroactive Preferential Tariff Treatment for Textile and Apparel Goods
    Current Sec.  10.699 of the CBP regulations, which sets forth the 
conditions and requirements that apply for purposes of submitting 
requests for refunds of any excess customs duties paid with respect to 
entries of textile or apparel goods entitled to retroactive tariff 
treatment under the CAFTA-DR (see CAFTA-DR Article 3.20 and Sec.  205 
of the Act), is redesignated as Sec.  10.625 so as to conform 
numerically to the new provisions added to Subpart J, Part 10, by this 
interim rule. In addition, paragraph (a) of redesignated Sec.  10.625, 
relating to the applicability of this section, is revised by deleting 
certain redundant language set forth in new Sec.  10.581 (Scope) of 
Subpart J, Part 10.

Part 24

    An amendment is made to Sec.  24.23(c), which concerns the 
merchandise processing fee, to implement Sec.  204 of the Act, 
providing that the merchandise processing fee is not applicable to 
goods that qualify as originating goods under the CAFTA-DR.

Part 162

    Part 162 contains regulations regarding the inspection and 
examination of, among other things, imported merchandise. A cross-
reference is added to Sec.  162.0, which is the scope section of the 
part, to refer readers to the additional CAFTA-DR records maintenance 
and examination provisions contained in Subpart J, Part 10, CBP 
regulations.

Part 163

    A conforming amendment is made to Sec.  163.1 to include the 
maintenance of any documentation that the importer may have in support 
of a claim for preference under the CAFTA-DR as an activity for which 
records must be maintained. Also, the list of records and information 
required for the entry of merchandise appearing in the Appendix to Part 
163 (commonly known as the (a)(1)(A) list) is also amended to add the 
documentation in the importer's possession supporting an CAFTA-DR claim 
for preferential tariff treatment.

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, Public Law 104-13. The list 
contained in Sec.  178.2 is amended to add the information collections 
used by CBP to determine eligibility for preferential tariff treatment 
under the CAFTA-DR and the Act.

Inapplicability of Notice and Delayed Effective Date Requirements

    Under the Administrative Procedure Act (``APA'') (5 U.S.C. 553), 
agencies generally are required to publish a notice of proposed 
rulemaking in the Federal Register that solicits public comment on the 
proposed regulatory amendments, consider public comments in deciding on 
the 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 prior notice and 
comment procedures do not apply to an agency rulemaking to the extent 
that it involves a foreign affairs function of the United States. CBP 
has determined that these interim regulations involve a foreign affairs 
function of the United States because they implement preferential 
tariff treatment and related provisions of the CAFTA-DR. Therefore, the 
rulemaking requirements under the APA do not apply and this interim 
rule will be effective upon publication. However, CBP is soliciting 
comments in this interim rule and will consider all comments received 
before issuing a final rule.

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, the provisions of the Regulatory 
Flexibility Act, as amended (5 U.S.C. 601 et seq.), do not apply to 
this rulemaking. Accordingly, 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 APA, as described above. 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 1651-0125.
    The collections of information in these regulations are in 
Sec. Sec.  10.583 and 10.584. This information is required in 
connection with claims for preferential tariff treatment under the 
CAFTA-DR and the Act and will be used by CBP to determine eligibility 
for tariff preference under the CAFTA-DR and the Act. The likely 
respondents are business organizations including importers, exporters 
and manufacturers.
    Estimated total annual reporting burden: 4,000 hours.

[[Page 33678]]

    Estimated average annual burden per respondent: .2 hours.
    Estimated number of respondents: 20,000.
    Estimated annual frequency of responses: 1.
    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 Trade and Commercial Regulations Branch, 
Regulations and Rulings, U.S. Customs and Border Protection, 1300 
Pennsylvania Avenue, NW. (Mint Annex), Washington, DC 20229.

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 his/her delegate) to approve 
regulations related to certain customs 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.

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, Exports, Imports, Reporting and recordkeeping requirements, 
Trade agreements.

19 CFR Part 178

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

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.

    1. The general authority citation for part 10 continues to read, 
the specific authority for Sec.  10.699 is removed, and the specific 
authority for Sec. Sec.  10.581 through 10.625 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 10.581 through 10.625 also issued under 19 U.S.C. 1202 
(General Note 29, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 109-53, 119 
Stat. 462 (19 U.S.C. 4001 note).
* * * * *

0
2. 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, Singapore, Chile, 
Morocco, Bahrain, El Salvador, Guatemala, Honduras, Nicaragua, or the 
Dominican Republic and entered under Chapter 98, Subchapter XIII, 
HTSUS, no bond or other security will be required if the entered 
article is a good originating, within the meaning of General Note 12, 
25, 26, 27, or 29, HTSUS, in the country of which the importer is a 
resident.
* * * * *

0
3. Part 10, CBP regulations, is amended by revising Subpart J to read 
as follows:

Subpart J--Dominican Republic--Central America--United States Free 
Trade Agreement

Sec.

General Provisions

10.581 Scope.
10.582 General definitions.

Import Requirements

10.583 Filing of claim for preferential tariff treatment upon 
importation.
10.584 Certification.
10.585 Importer obligations.
10.586 Certification not required.
10.587 Maintenance of records.
10.588 Effect of noncompliance; failure to provide documentation 
regarding transshipment.

Export Requirements

10.589 Certification for goods exported to a Party.

Post-Importation Duty Refund Claims

10.590 Right to make post-importation claim and refund duties.
10.591 Filing procedures.
10.592 CBP processing procedures.

Rules of Origin

10.593 Definitions.
10.594 Originating goods.
10.595 Regional value content.
10.596 Value of materials.
10.597 Accumulation.
10.598 De minimis.
10.599 Fungible goods and materials.
10.600 Accessories, spare parts, or tools.
10.601 Retail packaging materials and containers.
10.602 Packing materials and containers for shipment.
10.603 Indirect materials.
10.604 Transit and transshipment.
10.605 Goods classifiable as goods put up in sets.

Tariff Preference Level

10.606 Filing of claim for tariff preference level.
10.607 Goods eligible for tariff preference level claims.
10.608 Submission of certificate of eligibility.
10.609 Transshipment of non-originating cotton or man-made fiber 
apparel goods.
10.610 Effect of noncompliance; failure to provide documentation 
regarding transshipment of non-originating cotton or man-made fiber 
apparel goods.

Origin Verifications and Determinations

10.616 Verification and justification of claim for preferential 
tariff treatment.
10.617 Special rule for verifications in a Party of U.S. imports of 
textile and apparel goods.
10.618 Issuance of negative origin determinations.
10.619 Repeated false or unsupported preference claims.

Penalties

10.620 General.
10.621 Corrected claim or certification by importers.
10.622 Corrected certification by exporters or producers.
10.623 Framework for correcting claims or certifications.

Goods Returned After Repair or Alteration

10.624 Goods re-entered after repair or alteration in a Party.

Retroactive Preferential Tariff Treatment for Textile and Apparel Goods

10.625 Refunds of excess customs duties.

[[Page 33679]]

Subpart J--Dominican Republic--Central America--United States Free 
Trade Agreement

General Provisions


Sec.  10.581  Scope.

    This subpart implements the duty preference and related customs 
provisions applicable to imported and exported goods under the 
Dominican Republic--Central America--United States Free Trade Agreement 
(the CAFTA-DR) signed on August 5, 2004, and under the Dominican 
Republic--Central America--United States Free Trade Agreement 
Implementation Act (the Act; Pub. L. 109-53, 119 Stat. 462 (19 U.S.C. 
4001 et seq.), as amended by section 1634 of the Pension Protection Act 
of 2006 (Pub. L. 109-280, 120 Stat. 1167). 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 
CAFTA-DR and the Act are contained in parts 24, 162, and 163 of this 
chapter.


Sec.  10.582  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) 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 CAFTA-DR to an originating good 
or other good specified in the CAFTA-DR, and to an exemption from the 
merchandise processing fee;
    (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) Customs authority. ``Customs authority'' means the competent 
governmental unit that is responsible under the law of a Party for the 
administration of customs laws and regulations;
    (d) 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 
CAFTA-DR, does not include any:
    (1) Charge equivalent to an internal tax imposed consistently with 
Article III:2 of 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 that is applied pursuant to 
a Party's Domestic law; or
    (3) Fee or other charge in connection with importation commensurate 
with the cost of services rendered;
    (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) 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;
    (h) GATT 1994. ``GATT 1994'' means the General Agreement on Tariffs 
and Trade 1994, which is part of the WTO Agreement;
    (i) Harmonized System. ``Harmonized System'' 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;
    (j) Heading. ``Heading'' means the first four digits in the tariff 
classification number under the Harmonized System;
    (k) HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the 
United States as promulgated by the U.S. International Trade 
Commission;
    (l) Identical goods. ``Identical goods'' means goods that are 
produced in the same country and are the same in all respects, 
including physical characteristics, quality, and reputation, but 
excluding minor differences in appearance.
    (m) Indirect material. ``Indirect material'' means a good used in 
the production, testing, or inspection of a good in the territory of 
one or more of the Parties 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 one or more of the Parties, including:
    (1) Fuel and energy;
    (2) Tools, dies, and molds;
    (3) Spare parts and materials used in the maintenance of equipment 
or buildings;
    (4) Lubricants, greases, compounding materials, and other materials 
used in production or used to operate equipment or buildings;
    (5) Gloves, glasses, footwear, clothing, safety equipment, and 
supplies;
    (6) Equipment, devices, and supplies used for testing or inspecting 
the good;
    (7) Catalysts and solvents; and
    (8) Any other goods that are not incorporated into the good but the 
use of which in the production of the good can reasonably be 
demonstrated to be a part of that production;
    (n) Originating. ``Originating'' means qualifying for preferential 
tariff treatment under the rules of origin set out in CAFTA-DR Chapter 
Four (Rules of Origin and Origin Procedures) and General Note 29, 
HTSUS;
    (o) Party. ``Party'' means:
    (1) The United States; and
    (2) Costa Rica, the Dominican Republic, El Salvador, Guatemala, 
Honduras, or Nicaragua, for such time as the CAFTA-DR is in force 
between the United States and that country;
    (p) Person. ``Person'' means a natural person or an enterprise;
    (q) Preferential tariff treatment. ``Preferential tariff 
treatment'' means the duty rate applicable under the CAFTA-DR to an 
originating good or other good specified in the CAFTA-DR, and an 
exemption from the merchandise processing fee;
    (r) Subheading. ``Subheading'' means the first six digits in the 
tariff classification number under the Harmonized System;
    (s) Tariff preference level. ``Tariff preference level'' means a 
quantitative limit for certain non-originating apparel goods that may 
be entitled to preferential tariff treatment based on the goods meeting 
the requirements set forth in Sec. Sec.  10.606 through 10.610 of this 
subpart.
    (t) 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 ``the ATC''), which is part of the WTO 
Agreement, except for those goods listed in Annex 3.29 of the CAFTA-DR;
    (u) Territory. ``Territory'' means:
    (1) With respect to each Party other than the United States, 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;
    (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

[[Page 33680]]

    (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;
    (v) WTO. ``WTO'' means the World Trade Organization; and
    (w) WTO Agreement. ``WTO Agreement'' means the Marrakesh Agreement 
Establishing the World Trade Organization of April 15, 1994.

Import Requirements


Sec.  10.583  Filing of claim for preferential tariff treatment upon 
importation.

    (a) Basis of claim. An importer may make a claim for CAFTA-DR 
preferential tariff treatment, including an exemption from the 
merchandise processing fee, based on:
    (1) A certification, as specified in Sec.  10.584 of this subpart, 
that is prepared by the importer, exporter, or producer of the good; or
    (2) The importer's knowledge that the good qualifies as an 
originating good, including reasonable reliance on information in the 
importer's possession that the good is an originating good.
    (b) Making a claim. The claim is made by including on the entry 
summary, or equivalent documentation, the letter ``P'' or ``P+'' 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 
an authorized electronic data interchange system.
    (c) Corrected claim. If, after making the claim specified in 
paragraph (a) of this section, the importer has reason to believe that 
the claim is based on inaccurate information or is otherwise invalid, 
the importer must, within 30 calendar days after the date of discovery 
of the error, correct the claim and pay any duties that may be due. The 
importer must submit a statement either in writing or via an authorized 
electronic data interchange system to the CBP office where the original 
claim was filed specifying the correction (see Sec. Sec.  10.621 and 
10.623 of this subpart).


Sec.  10.584  Certification.

    (a) General. An importer who makes a claim under Sec.  10.583(b) of 
this subpart based on a certification of the importer, exporter, or 
producer that the good qualifies as originating must submit, at the 
request of the port director, a copy of the certification. The 
certification:
    (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 be in the possession of the importer at the time the claim 
for preferential tariff treatment is made if the certification forms 
the basis for the claim;
    (3) Must include the following information:
    (i) The legal name, address, telephone, and e-mail address (if any) 
of the importer of record of the good, the exporter of the good (if 
different from the producer), and the producer of the good;
    (ii) The legal name, address, telephone, and e-mail address (if 
any) of the responsible official or authorized agent of the importer, 
exporter, or producer signing the certification (if different from the 
information required by paragraph (a)(3)(i) of this section);
    (iii) A description of the good for which preferential tariff 
treatment is claimed, which must be sufficiently detailed to relate it 
to the invoice and the HS nomenclature;
    (iv) 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 29(n), HTSUS; and
    (v) The applicable rule of origin set forth in General Note 29, 
HTSUS, under which the good qualifies as an originating good; and
    (4) 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 these representations;
    The goods originated or are considered to have originated in the 
territory of one or more of the Parties, and comply with the origin 
requirements specified for those goods in the Dominican Republic--
Central America--United States 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 the goods in good condition or to 
transport the goods to the United States; the goods remained under 
the control of customs authorities while in the territory of a non-
Party; and
    This document consists of ---- pages, including all 
attachments.''

    (b) Responsible official or agent. The certification provided for 
in paragraph (a) of this section must be signed and dated by a 
responsible official of the importer, exporter, or producer, or by the 
importer's, exporter's, or producer's authorized agent having knowledge 
of the relevant facts.
    (c) Language. The certification provided for in paragraph (a) of 
this section must be completed in either the English language or the 
language of the exporting Party. In the latter case, the port director 
may require the importer to submit an English translation of the 
certification.
    (d) Certification by the exporter or producer. A certification may 
be prepared by the exporter or producer of the good on the basis of:
    (1) The exporter's or producer's knowledge that the good is 
originating; or
    (2) In the case of an exporter, reasonable reliance on the 
producer's certification that the good is originating.
    (e) Applicability of certification. The certification provided for 
in paragraph (a) of this section may be applicable to:
    (1) A single shipment of a good into the United States; or
    (2) Multiple shipments of identical goods into the United States 
that occur within a specified blanket period, not exceeding 12 months, 
set out in the certification.
    (f) Validity of certification. A certification that is properly 
completed, signed, and dated in accordance with the requirements of 
this section will be accepted as valid for four years following the 
date on which it was signed.


Sec.  10.585  Importer obligations.

    (a) General. An importer who makes a claim for preferential tariff 
treatment under Sec.  10.583(b) of this subpart:
    (1) Will be deemed to have certified that the good is eligible for 
preferential tariff treatment under the CAFTA-DR;
    (2) Is responsible for the truthfulness of the claim and of all the 
information and data contained in the certification provided for in 
Sec.  10.584 of this subpart;
    (3) Is responsible for submitting any supporting documents 
requested by CBP, and for the truthfulness of the information contained 
in those documents. When a certification prepared by an exporter or 
producer forms the basis of a claim for preferential tariff treatment, 
and CBP requests the submission of supporting documents, the importer 
will provide to CBP, or arrange for the direct submission by the 
exporter or producer, all information relied on by the exporter or 
producer in preparing the certification.
    (b) Information provided by exporter or producer. The fact that the 
importer has made a claim or submitted a certification based on 
information provided by an exporter or producer will not relieve the 
importer of the

[[Page 33681]]

responsibility referred to in paragraph (a) of this section.
    (c) Exemption from penalties. An importer will not be subject to 
civil or administrative penalties under 19 U.S.C. 1592 for making an 
incorrect claim for preferential tariff treatment or submitting an 
incorrect certification, provided that the importer promptly and 
voluntarily corrects the claim or certification and pays any duty owing 
(see Sec. Sec.  10.621 and 10.623 of this subpart).


Sec.  10.586  Certification not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an importer will not be required to submit a copy of a 
certification under Sec.  10.584 of this subpart for:
    (1) A non-commercial importation of a good; or
    (2) A commercial importation for which the value of the originating 
goods does not exceed U.S. $2,500.
    (b) Exception. If the port director determines that an importation 
described in paragraph (a) of this section is part of a series of 
importations carried out or planned for the purpose of evading 
compliance with the certification requirements of Sec.  10.584 of this 
subpart, the port director will notify the importer that for that 
importation the importer must submit to CBP a copy of the 
certification. The importer must submit such a copy within 30 days from 
the date of the notice. Failure to timely submit a copy of the 
certification will result in denial of the claim for preferential 
tariff treatment.


Sec.  10.587  Maintenance of records.

    (a) General. An importer claiming preferential tariff treatment for 
a good imported into the United States under Sec.  10.583(b) of this 
subpart must maintain, for a minimum of five years after the date of 
importation of the good, all records and documents that the importer 
has demonstrating that the good qualifies for preferential tariff 
treatment under the CAFTA-DR. These records are in addition to any 
other records that the importer is required to prepare, maintain, or 
make available to CBP under part 163 of this chapter.
    (b) Method of maintenance. The records and documents referred to in 
paragraph (a) of this section must be maintained by importers as 
provided in Sec.  163.5 of this chapter.


Sec.  10.588  Effect of noncompliance; failure to provide documentation 
regarding transshipment.

    (a) General. If the importer fails to comply with any requirement 
under this subpart, including submission of a complete certification 
prepared in accordance with Sec.  10.584 of this subpart, when 
requested, 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 a Party to the 
CAFTA-DR, and the importer of the good does not provide, at the request 
of the port director, evidence demonstrating to the satisfaction of the 
port director that the conditions set forth in Sec.  10.604(a) of this 
subpart were met.

Export Requirements


Sec.  10.589  Certification for goods exported to a Party.

    (a) Submission of certification to CBP. Any person who completes 
and issues a certification for a good exported from the United States 
to a Party must provide a copy of the certification (or such other 
medium or format approved by the Party's customs authority for that 
purpose) to CBP upon request.
    (b) Notification of errors in certification. Any person who 
completes and issues a certification for a good exported from the 
United States to a Party and who has reason to believe that the 
certification contains or is based on incorrect information must 
promptly notify every person to whom the certification was provided of 
any change that could affect the accuracy or validity of the 
certification. Notification of an incorrect certification must also be 
given either in writing or via an authorized electronic data 
interchange system to CBP specifying the correction (see Sec. Sec.  
10.622 and 10.623 of this subpart).
    (c) Maintenance of records--(1) General. Any person who completes 
and issues a certification for a good exported from the United States 
to a Party must maintain, for a period of at least five years after the 
date the certification was signed, all records and supporting documents 
relating to the origin of a good for which the certification was 
issued, including the certification or copies thereof and records and 
documents associated with:
    (i) The purchase, cost, and value of, and payment for, the good;
    (ii) The purchase, cost, and value of, and payment for, all 
materials, including indirect materials, used in the production of the 
good; and
    (iii) The production of the good in the form in which the good was 
exported.
    (2) Method of maintenance. The records referred to in paragraph (c) 
of this section must be maintained as provided in Sec.  163.5 of this 
chapter.
    (3) Availability of records. For purposes of determining compliance 
with the provisions of this part, the records required to be maintained 
under this section must be stored and made available for examination 
and inspection by the port director or other appropriate CBP officer in 
the same manner as provided in Part 163 of this chapter.

Post-Importation Duty Refund Claims


Sec.  10.590  Right to make post-importation claim and refund duties.

    Notwithstanding any other available remedy, where a good would have 
qualified as an originating good when it was imported into the United 
States but no claim for preferential tariff treatment was made, the 
importer of that good may file a claim for a refund of any excess 
duties at any time within one year after the date of importation of the 
good in accordance with the procedures set forth in Sec.  10.591 of 
this subpart. Subject to the provisions of Sec.  10.588 of this 
subpart, CBP may refund any excess duties by liquidation or 
reliquidation of the entry covering the good in accordance with Sec.  
10.592(c) of this subpart.


Sec.  10.591  Filing procedures.

    (a) Place of filing. A post-importation claim for a refund must be 
filed with the director of the port at which the entry covering the 
good was filed.
    (b) Contents of claim. A post-importation claim for a refund must 
be filed by presentation of the following:
    (1) A written declaration stating that the good qualified as an 
originating good at the time of importation and setting forth the 
number and date of the entry or entries covering the good;
    (2) A copy of a certification prepared in accordance with Sec.  
10.584 of this subpart if a certification forms the basis for the 
claim, or other information demonstrating that the good qualifies for 
preferential tariff treatment;
    (3) A written statement indicating whether the importer of the good 
provided a copy of the entry summary or equivalent documentation to any 
other person. If such documentation was so provided, the statement must 
identify each recipient by name, CBP identification number, and address 
and must specify the date on which the documentation was provided; and
    (4) A written statement indicating whether or not any person has 
filed a

[[Page 33682]]

protest relating to the good under any provision of law; and if any 
such protest has been filed, the statement must identify the protest by 
number and date.


Sec.  10.592  CBP processing procedures.

    (a) Status determination. After receipt of a post-importation claim 
under Sec.  10.591 of this subpart, the port director will determine 
whether the entry covering the good has been liquidated and, if 
liquidation has taken place, whether the liquidation has become final.
    (b) Pending protest or judicial review. If the port director 
determines that any protest relating to the good has not been finally 
decided, the port director will suspend action on the claim filed under 
Sec.  10.591 of this subpart until the decision on the protest becomes 
final. If a summons involving the tariff classification or dutiability 
of the good is filed in the Court of International Trade, the port 
director will suspend action on the claim filed under Sec.  10.591 of 
this subpart until judicial review has been completed.
    (c) Allowance of claim. (1) Unliquidated entry. If the port 
director determines that a claim for a refund filed under Sec.  10.591 
of this subpart should be allowed and the entry covering the good has 
not been liquidated, the port director will take into account the claim 
for refund in connection with the liquidation of the entry.
    (2) Liquidated entry. If the port director determines that a claim 
for a refund filed under Sec.  10.591 of this subpart should be allowed 
and the entry covering the good has been liquidated, whether or not the 
liquidation has become final, the entry must be reliquidated in order 
to effect a refund of duties under this section. If the entry is 
otherwise to be reliquidated based on administrative review of a 
protest or as a result of judicial review, the port director will 
reliquidate the entry taking into account the claim for refund under 
Sec.  10.591 of this subpart.
    (d) Denial of claim. (1) General. The port director may deny a 
claim for a refund filed under Sec.  10.591 of this subpart if the 
claim was not filed timely, if the importer has not complied with the 
requirements of Sec.  10.591 of this subpart, or if, following 
initiation of an origin verification under Sec.  10.616 of this 
subpart, the port director determines either that the imported good did 
not qualify as an originating good at the time of importation or that a 
basis exists upon which preferential tariff treatment may be denied 
under Sec.  10.616 of this subpart.
    (2) Unliquidated entry. If the port director determines that a 
claim for a refund filed under this subpart should be denied and the 
entry covering the good has not been liquidated, the port director will 
deny the claim in connection with the liquidation of the entry, and 
notice of the denial and the reason for the denial will be provided to 
the importer in writing or via an authorized electronic data 
interchange system.
    (3) Liquidated entry. If the port director determines that a claim 
for a refund filed under this subpart should be denied and the entry 
covering the good has been liquidated, whether or not the liquidation 
has become final, the claim may be denied without reliquidation of the 
entry. If the entry is otherwise to be reliquidated based on 
administrative review of a protest or as a result of judicial review, 
such reliquidation may include denial of the claim filed under this 
subpart. In either case, the port director will provide notice of the 
denial and the reason for the denial to the importer in writing or via 
an authorized electronic data interchange system.

Rules of Origin


Sec.  10.593  Definitions.

    For purposes of Sec. Sec.  10.593 through 10.605:
    (a) Adjusted value. ``Adjusted value'' means the value determined 
in accordance with Articles 1 through 8, Article 15, and the 
corresponding interpretative notes of the Customs Valuation Agreement, 
adjusted, if necessary, to exclude:
    (1) Any costs, charges, or expenses incurred for transportation, 
insurance and related services incident to the international shipment 
of the good from the country of exportation to the place of 
importation; and
    (2) The value of packing materials and containers for shipment as 
defined in paragraph (m) of this section;
    (b) Class of motor vehicles. ``Class of motor vehicles'' means any 
one of the following categories of motor vehicles:
    (1) Motor vehicles provided for in subheading 8701.20, 8704.10, 
8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, HTSUS, 
or motor vehicles for the transport of 16 or more persons provided for 
in subheading 8702.10 or 8702.90, HTSUS;
    (2) Motor vehicles provided for in subheading 8701.10 or any of 
subheadings 8701.30 through 8701.90, HTSUS;
    (3) Motor vehicles provided for the transport of 15 or fewer 
persons provided for in subheading 8702.10 or 8702.90, HTSUS, or motor 
vehicles provided for in subheading 8704.21 or 8704.31, HTSUS; or
    (4) Motor vehicles provided for in subheadings 8703.21 throu