Entry Requirements for Certain Softwood Lumber Products Exported From Any Country Into the United States, 52453-52455 [2010-21244]
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Federal Register / Vol. 75, No. 165 / Thursday, August 26, 2010 / Rules and Regulations
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Parts 12 and 163
[CBP Dec. 10–27; USCBP 2008–0052]
RIN 1515–AD62 (Formerly RIN 1505–AB98)
Entry Requirements for Certain
Softwood Lumber Products Exported
From Any Country Into the United
States
U.S. Customs and Border
Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Final rule.
AGENCIES:
This document adopts as a
final rule the interim amendments to
title 19 of the Code of Federal
Regulations (19 CFR) that prescribe
special entry and documentation
requirements applicable to certain
softwood lumber and softwood lumber
products exported from any country
into the United States. This final rule
implements Title VIII (‘‘Softwood
Lumber Act of 2008’’) of the Tariff Act
of 1930, as added by section 3301 of
Title III, Subtitle D, of the Food,
Conservation, and Energy Act of 2008,
which requires the President to
establish and maintain an importer
declaration program with respect to the
importation of certain softwood lumber
and softwood lumber products and
prescribes special entry requirements
whereby importers must submit the
export price, estimated export charge, if
any, and an importer declaration with
the entry summary. The Act also
established new recordkeeping
requirements applicable to certain
imports of softwood lumber home
packages and kits that are subject to
declaration requirements, but that are
not subject to the softwood lumber
importer declaration program of section
803 of the Act.
DATES: Effective Date: August 26, 2010.
FOR FURTHER INFORMATION CONTACT:
Renee D. Chovanec, Chief, International
Coordination, Trade Agreements and
Planning Division, Office of
International Trade, Tel: (202) 863–
6384.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
Background
On August 25, 2008, CBP published
in the Federal Register (73 FR 49934),
as Customs and Border Protection
Decision (CBP Dec.) 08–32, interim
regulations prescribing special entry
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and documentation requirements
applicable to certain softwood lumber
and softwood lumber products exported
from any country into the United States.
These interim regulations, set forth in
new § 12.142 of title 19 of the Code of
Federal Regulations (19 CFR 12.142),
implemented the terms of Title VIII
(Softwood Lumber Act of 2008 or ‘‘the
Act’’) of the Tariff Act of 1930, as added
by section 3301 of Title III, Subtitle D,
of the Food, Conservation, and Energy
Act of 2008 (Pub. L. 110–246, enacted
June 18, 2008). The Act required the
President to establish and maintain an
importer declaration program with
respect to the importation of certain
softwood lumber and softwood lumber
products and prescribe special entry
requirements whereby importers must
provide the export price, estimated
export charge, if any, and an importer
declaration with the entry summary
documentation. The Act also imposed
new recordkeeping requirements
applicable to certain imports of
softwood lumber home packages and
kits.
CBP solicited public comment on the
interim rule.
Discussion of Comments
Five commenters responded to the
solicitation of comments in CBP Dec.
08–32, and CBP considered all
comments that were timely submitted.
Several of the commenters raised
numerous issues in each of their
submissions and these issues are
addressed individually in this
document. A description of the
comments received, together with CBP’s
analyses, is set forth below.
Comment
One commenter notes that while it
considers the additional reporting
requirements imposed on softwood
lumber imports by the Act unnecessary,
CBP has nevertheless chosen the best
method for collecting the required data.
The commenter further suggests that the
additional reporting requirements will
impose further collection and reporting
burdens on importers that will translate
into additional costs that importers that
will pass down to consumers.
CBP Response
Pursuant to the terms of the Act, CBP
is required to collect the information
described in CBP Dec. 08–32. While
CBP is cognizant of the additional
reporting burden the new softwood
lumber entry requirements place on the
importer, the agency has devised a
method of data collection that
minimizes the associated costs and
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52453
burdens to importers of softwood
lumber and softwood lumber products.
Comment
One commenter suggests that CBP
should explain in the final rule that the
declaration language set forth in
§ 12.142(c)(3)(iii)(B)(3), which states
that ‘‘the exporter has paid, or
committed to pay, all export charges
due,’’ includes export charges that may
be imposed retroactively after initial
export charges are collected.
CBP Response
Section 12.142(c)(3)(iii)(B)(3) of the
interim rule requires the importer to
declare, to his best knowledge and
belief, that the exporter has paid or
committed to pay ‘‘all export charges
due.’’ It is CBP’s view that as this
language includes export charges
imposed retroactively after initial export
charges are collected, the commenter’s
suggested language is unnecessary.
Comment
One commenter submits that CBP
Dec. 08–32 properly reflects the
requirements of the Act and should be
adopted as final without change.
CBP Response
CBP agrees that CBP Dec. 08–32
properly reflects the requirements of the
Act.
Comment
One commenter recommends that the
final rule should retain the condition set
forth in CBP Dec. 08–32 that an
importer declaration is required for each
shipment of covered merchandise and
that blanket declarations should not be
accepted.
CBP Response
CBP concurs and will continue to
require a declaration on each entry
summary line item in the final rule.
Comment
One commenter notes that the 2008
Harmonized Tariff Schedule of the
United States (HTSUS) subheading
numbers set forth in section 804(a) of
the Act, which describe products
covered by the Act, may change over
time. The commenter states that as
section 804(d) of the Act addresses this
issue by providing that ‘‘the descriptions
of the covered articles, rather than the
HTS subheading number, control
whether a product is covered by the
importer declaration program,’’
§ 12.142(b) should be amended
accordingly.
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Federal Register / Vol. 75, No. 165 / Thursday, August 26, 2010 / Rules and Regulations
CBP Response
CBP is of the view that § 12.142(b)
accurately reflects the scope of the
statutory language and does not require
further clarification. Section 804(d) of
the Act provides, ‘‘[F]or purposes of
determining if a product is covered by
the importer declaration program, the
President shall be guided by the article
descriptions provided in this section.’’
Section 804(a) of the Act describes the
products covered by the softwood
lumber importer declaration program by
identifying the applicable HTSUS tariff
subheading numbers and accompanying
article descriptions. The commenter’s
concern that potential changes to the
2008 HTSUS subheadings identified in
section 804(a) of the Act may have the
effect of altering the scope of coverage
is unwarranted inasmuch as section
804(d) of the Act ensures that a
product’s description will dictate
whether it is covered by the Act. The
fact that an article, otherwise described
in section 804(a) of the Act, may be
subsequently classified in a HTSUS
subheading that is different from the
tariff provisions originally listed in the
statute will not preclude that article
from being covered by the Act.
Comment
One commenter is of the opinion that
a conflict exists between the manner by
which the export price must be reported
on the entry summary pursuant to the
Softwood Lumber Act of 2008 and the
U.S.-Canada Softwood Lumber
Agreement (SLA) of 2006. Specifically,
the commenter notes that pursuant to
the Softwood Lumber Agreement of
2006 the Canadian-issued export permit
allows for an aggregated export price.
Conversely, pursuant to section
803(b)(1) of the Softwood Lumber Act of
2008, the export price reported on the
entry summary may not be aggregated
and must be listed for each line with a
different line required for each
consignee.
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CBP Response
CBP acknowledges that Canadianissued export permits often present the
export price as an aggregate figure.
Presenting this data as an aggregate is
not prohibited by the terms of the U.S.Canada Softwood Lumber Agreement of
2006; however, it is prohibited under
the terms of the Softwood Lumber Act
of 2008, which requires that the export
price reported on the entry summary be
listed for each line with a different line
required for each consignee. To
reconcile this situation, CBP advises
that in situations where the export price
on a Canadian-issued export permit is
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aggregated, importers should allocate
the export price among the lines on the
entry summary. For example, if the
export price listed on the export permit
is $1000 and there are two line items on
the entry summary, divide the $1000 to
reflect each line item’s respective
percentage of the entered value. If
seventy-five percent (75%) of the
entered value is reported on one line
item and twenty-five percent (25%) on
the other, then list $750 as the export
price on the first line item and $250 as
the export price on the other line item.
The export price listed on both line
items on the entry summary should add
up to the export price on the one line
item of the Canadian-issued export
permit.
Comment
One commenter raises the concern
that the reconciliation requirements set
forth in the Act put into place a process
that overlaps with the reconciliation
process mandated under the U.S.Canada Softwood Lumber Agreement of
2006 and that this could cause
confusion or delay.
CBP Response
CBP does not view the data collection
and reconciliation requirements
mandated by the Softwood Lumber Act
of 2008 to be in conflict with those
required by the U.S.-Canada Softwood
Lumber Agreement of 2006. CBP
acknowledges that while some of the
data required to be submitted by
importers pursuant to the 2008 Act may
also be collected by Canada pursuant to
the 2006 Agreement, there is no
duplication in that a shipper is not
required to submit the same information
to the same country more than once.
The common data elements that are
submitted to both the U.S. and Canada
should be the same. Therefore data
reconciliation as required under the
Softwood Lumber Act of 2008 should
not affect data reconciliations under the
U.S.-Canada Softwood Lumber
Agreement of 2006.
Comment
One commenter notes that the interim
rule set forth in CBP Dec. 08–32
unnecessarily places an increased
burden on importers. It also impacts
small and medium-sized enterprises,
including the U.S. housing industry,
and is likely to have a trade dampening
effect.
CBP Response
With regard to the commenter’s
statement that the interim rule places an
unnecessary burden on importers, CBP
reiterates that the interim rule merely
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implements the entry and recordkeeping
requirements mandated by the Softwood
Lumber Act of 2008. The interim rule
does not impose any burdens on trade
other than those explicitly required by
law. Moreover, the prescribed method of
data collection set forth in the
regulation is intended to streamline the
reporting process and minimize any
administrative burden associated with
reporting the required information. This
process should help mitigate the
administration burden for all
enterprises, including small and
medium-sized businesses.
Comment
One commenter requests that CBP
identify the standard to be used in
assessing civil penalties under the
Softwood Lumber Act of 2008 by using
the standard contained in 19 U.S.C.
1592 in a new 19 CFR 12.142(f).
CBP Response
CBP does not believe it is necessary
to add this language to 19 CFR 12.142
as the standards for assessing civil and
criminal penalties are clearly prescribed
by section 808 of the Softwood Lumber
Act of 2008.
Comment
One commenter states that CBP Dec.
08–32 does not specify which date
should be used as the basis for the
export price and export charge listed on
the entry summary line. Without
specifying the date required as the basis
for the export price and export charge,
different dates may be used which
would create discrepancies between the
export permit date and the entry
summary data. The commenter suggests
using the shipping date to be consistent
with the U.S.-Canada Softwood Lumber
Agreement of 2006.
CBP Response
CBP does not believe this change is
necessary as importers of softwood
lumber and softwood lumber products
from Canada need only report the export
price listed on the permit issued by the
Government of Canada.
Comment
One commenter notes that CBP Dec.
08–32 does not reflect the fact that
Canadian exporters are permitted to cap
the export price at $500 per thousand
board feet when calculating the export
charge. For this reason, the commenter
submits that the export price on the
entry summary will be inconsistent with
that on the Canadian export permit
when capped.
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Federal Register / Vol. 75, No. 165 / Thursday, August 26, 2010 / Rules and Regulations
CBP Response
CBP does not believe this change is
necessary as importers of softwood
lumber and softwood lumber products
only need to report the export price
listed on the permit issued by the
Government of Canada.
Comment
One commenter requests that CBP add
language to the interim rule that
provides that where an international
agreement between a country that
exports softwood lumber or softwood
lumber products and the United States
provides greater specificity regarding
aspects of the Softwood Lumber Act of
2008, CBP will implement 19 CFR
12.142 in accordance with the more
specific law to the extent that it does not
conflict with the 2008 Act.
CBP Response
CBP is of the view that such language
is unnecessary. CBP Dec. 08–32
implements the Softwood Lumber Act
of 2008 in a manner that does not
conflict with international softwood
lumber agreements to which the U.S. is
a signatory.
Comment
One commenter strongly supports the
requirement for the presentation of the
original paper Maritime Lumber Bureau
Certificate of Origin, as prescribed in
CBP Dec. 08–32. The commenter,
however, urges CBP to exclude entirely
softwood lumber imported from the
Canadian Maritime provinces from the
importer declaration program
promulgated in 19 CFR 12.142.
CBP Response
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The Softwood Lumber Act of 2008
requires CBP to collect the export price,
export charge, if any, and importer
declaration on all importations of
covered softwood lumber and softwood
lumber products. Accordingly, CBP is
without authority to except softwood
lumber imported from the Canadian
Maritime provinces from the importer
declaration program. CBP will continue
to require the presentation of the
original paper Maritime Lumber Bureau
Certificate of Origin.
Conclusion
After review of the comments and
further consideration, CBP has decided
to adopt as final the interim rule
published in the Federal Register (73
FR 49934) on August 25, 2008, as CBP
Dec. 08–32.
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Inapplicability of Notice and Delayed
Effective Date Requirements
CBP has determined, pursuant to the
provisions of 5 U.S.C. 553(b)(B) and
(d)(3), that prior public notice and
comment procedures on this regulation
are unnecessary and contrary to the
public interest. These regulations align
the CBP regulations to reflect the terms
of Title VIII of the Tariff Act of 1930, as
added by section 3301 of Title III,
Subtitle D, of the Food, Conservation,
and Energy Act of 2008 (Pub. L. 110–
246, enacted June 18, 2008), which went
into effect August 18, 2008. The
regulatory amendments inform the
public of the special entry and
documentation requirements applicable
to certain softwood lumber and
softwood lumber products exported
from any country into the United States.
The regulations are currently in effect as
an interim rule and this final rule does
not change the interim rule. For these
reasons, pursuant to the provisions of 5
U.S.C. 553(d)(3), CBP finds that there is
good cause for dispensing with a
delayed effective date.
Regulatory Flexibility Act and
Executive Order 12866
CBP Dec. 08–32 was issued as an
interim rule rather than a notice of
proposed rulemaking because CBP had
determined there was good cause. The
amendments were necessary to inform
the public on how to comply with
statutory requirements. Because no
notice of proposed rulemaking was
required, the provisions of the
Regulatory Flexibility Act (5 U.S.C. 601
et. seq.) do not apply. Further, these
amendments do not meet the criteria for
a ‘‘significant regulatory action’’ as
specified in E.O. 12866.
Paperwork Reduction Act
The collections of information in this
document are contained in §§ 12.142(c)
and (d) (19 CFR 12.142(c) and (d)). This
information is used by CBP to fulfill its
information collection obligations under
Title VIII of the Tariff Act of 1930, as
added by section 3301 within Title III,
Subtitle D, of the Food, Conservation,
and Energy Act of 2008 (Pub. L. 110–
246), whereby importers of certain
softwood lumber and softwood lumber
products are required to submit the
export price, estimated export charge, if
any, and an importer declaration with
the entry summary information or,
where applicable, to submit additional
documentation required for home
packages and kits. The likely
respondents are business organizations
including importers and brokers.
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52455
The collection of information
associated with the entry summary
documentation (CBP Form 7501) was
previously approved by the Office of
Management and Budget under control
number 1651–0052. In accordance with
the Paperwork Reduction Act of 1995
(44 U.S.C. 3507), CBP has submitted to
OMB for review an adjustment to the
information provided to OMB for the
previously approved OMB control
number to account for the changes in
this rule. The estimated annual burden
associated with the collection of
information in this final rule is now
estimated to be 1,269 hours per
respondent. An agency may not conduct
or sponsor, and a person is not required
to respond to, a collection of
information unless it displays a valid
control number assigned by OMB.
Signing Authority
This document is being issued in
accordance with 19 CFR 0.1(a)(1).
List of Subjects
19 CFR Part 12
Bonds, Customs duties and
inspection, Entry of merchandise,
Imports, Prohibited merchandise,
Reporting and recordkeeping
requirements, Restricted merchandise.
19 CFR Part 163
Customs duties and inspection,
Reporting and recordkeeping
requirements.
Amendment to the CBP Regulations
Accordingly, the interim rule
amending Parts 12 and 163 of the CBP
Regulations (19 CFR Parts 12 and 163),
which was published at 73 FR 49934 on
August 25, 2008, is adopted as a final
rule.
■
Alan Bersin,
Commissioner, U.S. Customs and Border
Protection.
Approved: August 23, 2010.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2010–21244 Filed 8–25–10; 8:45 am]
BILLING CODE 9111–14–P
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Agencies
[Federal Register Volume 75, Number 165 (Thursday, August 26, 2010)]
[Rules and Regulations]
[Pages 52453-52455]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21244]
[[Page 52453]]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Parts 12 and 163
[CBP Dec. 10-27; USCBP 2008-0052]
RIN 1515-AD62 (Formerly RIN 1505-AB98)
Entry Requirements for Certain Softwood Lumber Products Exported
From Any Country Into the United States
AGENCIES: U.S. Customs and Border Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document adopts as a final rule the interim amendments to
title 19 of the Code of Federal Regulations (19 CFR) that prescribe
special entry and documentation requirements applicable to certain
softwood lumber and softwood lumber products exported from any country
into the United States. This final rule implements Title VIII
(``Softwood Lumber Act of 2008'') of the Tariff Act of 1930, as added
by section 3301 of Title III, Subtitle D, of the Food, Conservation,
and Energy Act of 2008, which requires the President to establish and
maintain an importer declaration program with respect to the
importation of certain softwood lumber and softwood lumber products and
prescribes special entry requirements whereby importers must submit the
export price, estimated export charge, if any, and an importer
declaration with the entry summary. The Act also established new
recordkeeping requirements applicable to certain imports of softwood
lumber home packages and kits that are subject to declaration
requirements, but that are not subject to the softwood lumber importer
declaration program of section 803 of the Act.
DATES: Effective Date: August 26, 2010.
FOR FURTHER INFORMATION CONTACT: Renee D. Chovanec, Chief,
International Coordination, Trade Agreements and Planning Division,
Office of International Trade, Tel: (202) 863-6384.
SUPPLEMENTARY INFORMATION:
Background
On August 25, 2008, CBP published in the Federal Register (73 FR
49934), as Customs and Border Protection Decision (CBP Dec.) 08-32,
interim regulations prescribing special entry and documentation
requirements applicable to certain softwood lumber and softwood lumber
products exported from any country into the United States. These
interim regulations, set forth in new Sec. 12.142 of title 19 of the
Code of Federal Regulations (19 CFR 12.142), implemented the terms of
Title VIII (Softwood Lumber Act of 2008 or ``the Act'') of the Tariff
Act of 1930, as added by section 3301 of Title III, Subtitle D, of the
Food, Conservation, and Energy Act of 2008 (Pub. L. 110-246, enacted
June 18, 2008). The Act required the President to establish and
maintain an importer declaration program with respect to the
importation of certain softwood lumber and softwood lumber products and
prescribe special entry requirements whereby importers must provide the
export price, estimated export charge, if any, and an importer
declaration with the entry summary documentation. The Act also imposed
new recordkeeping requirements applicable to certain imports of
softwood lumber home packages and kits.
CBP solicited public comment on the interim rule.
Discussion of Comments
Five commenters responded to the solicitation of comments in CBP
Dec. 08-32, and CBP considered all comments that were timely submitted.
Several of the commenters raised numerous issues in each of their
submissions and these issues are addressed individually in this
document. A description of the comments received, together with CBP's
analyses, is set forth below.
Comment
One commenter notes that while it considers the additional
reporting requirements imposed on softwood lumber imports by the Act
unnecessary, CBP has nevertheless chosen the best method for collecting
the required data. The commenter further suggests that the additional
reporting requirements will impose further collection and reporting
burdens on importers that will translate into additional costs that
importers that will pass down to consumers.
CBP Response
Pursuant to the terms of the Act, CBP is required to collect the
information described in CBP Dec. 08-32. While CBP is cognizant of the
additional reporting burden the new softwood lumber entry requirements
place on the importer, the agency has devised a method of data
collection that minimizes the associated costs and burdens to importers
of softwood lumber and softwood lumber products.
Comment
One commenter suggests that CBP should explain in the final rule
that the declaration language set forth in Sec.
12.142(c)(3)(iii)(B)(3), which states that ``the exporter has paid, or
committed to pay, all export charges due,'' includes export charges
that may be imposed retroactively after initial export charges are
collected.
CBP Response
Section 12.142(c)(3)(iii)(B)(3) of the interim rule requires the
importer to declare, to his best knowledge and belief, that the
exporter has paid or committed to pay ``all export charges due.'' It is
CBP's view that as this language includes export charges imposed
retroactively after initial export charges are collected, the
commenter's suggested language is unnecessary.
Comment
One commenter submits that CBP Dec. 08-32 properly reflects the
requirements of the Act and should be adopted as final without change.
CBP Response
CBP agrees that CBP Dec. 08-32 properly reflects the requirements
of the Act.
Comment
One commenter recommends that the final rule should retain the
condition set forth in CBP Dec. 08-32 that an importer declaration is
required for each shipment of covered merchandise and that blanket
declarations should not be accepted.
CBP Response
CBP concurs and will continue to require a declaration on each
entry summary line item in the final rule.
Comment
One commenter notes that the 2008 Harmonized Tariff Schedule of the
United States (HTSUS) subheading numbers set forth in section 804(a) of
the Act, which describe products covered by the Act, may change over
time. The commenter states that as section 804(d) of the Act addresses
this issue by providing that ``the descriptions of the covered
articles, rather than the HTS subheading number, control whether a
product is covered by the importer declaration program,'' Sec.
12.142(b) should be amended accordingly.
[[Page 52454]]
CBP Response
CBP is of the view that Sec. 12.142(b) accurately reflects the
scope of the statutory language and does not require further
clarification. Section 804(d) of the Act provides, ``[F]or purposes of
determining if a product is covered by the importer declaration
program, the President shall be guided by the article descriptions
provided in this section.'' Section 804(a) of the Act describes the
products covered by the softwood lumber importer declaration program by
identifying the applicable HTSUS tariff subheading numbers and
accompanying article descriptions. The commenter's concern that
potential changes to the 2008 HTSUS subheadings identified in section
804(a) of the Act may have the effect of altering the scope of coverage
is unwarranted inasmuch as section 804(d) of the Act ensures that a
product's description will dictate whether it is covered by the Act.
The fact that an article, otherwise described in section 804(a) of the
Act, may be subsequently classified in a HTSUS subheading that is
different from the tariff provisions originally listed in the statute
will not preclude that article from being covered by the Act.
Comment
One commenter is of the opinion that a conflict exists between the
manner by which the export price must be reported on the entry summary
pursuant to the Softwood Lumber Act of 2008 and the U.S.-Canada
Softwood Lumber Agreement (SLA) of 2006. Specifically, the commenter
notes that pursuant to the Softwood Lumber Agreement of 2006 the
Canadian-issued export permit allows for an aggregated export price.
Conversely, pursuant to section 803(b)(1) of the Softwood Lumber Act of
2008, the export price reported on the entry summary may not be
aggregated and must be listed for each line with a different line
required for each consignee.
CBP Response
CBP acknowledges that Canadian-issued export permits often present
the export price as an aggregate figure. Presenting this data as an
aggregate is not prohibited by the terms of the U.S.-Canada Softwood
Lumber Agreement of 2006; however, it is prohibited under the terms of
the Softwood Lumber Act of 2008, which requires that the export price
reported on the entry summary be listed for each line with a different
line required for each consignee. To reconcile this situation, CBP
advises that in situations where the export price on a Canadian-issued
export permit is aggregated, importers should allocate the export price
among the lines on the entry summary. For example, if the export price
listed on the export permit is $1000 and there are two line items on
the entry summary, divide the $1000 to reflect each line item's
respective percentage of the entered value. If seventy-five percent
(75%) of the entered value is reported on one line item and twenty-five
percent (25%) on the other, then list $750 as the export price on the
first line item and $250 as the export price on the other line item.
The export price listed on both line items on the entry summary should
add up to the export price on the one line item of the Canadian-issued
export permit.
Comment
One commenter raises the concern that the reconciliation
requirements set forth in the Act put into place a process that
overlaps with the reconciliation process mandated under the U.S.-Canada
Softwood Lumber Agreement of 2006 and that this could cause confusion
or delay.
CBP Response
CBP does not view the data collection and reconciliation
requirements mandated by the Softwood Lumber Act of 2008 to be in
conflict with those required by the U.S.-Canada Softwood Lumber
Agreement of 2006. CBP acknowledges that while some of the data
required to be submitted by importers pursuant to the 2008 Act may also
be collected by Canada pursuant to the 2006 Agreement, there is no
duplication in that a shipper is not required to submit the same
information to the same country more than once. The common data
elements that are submitted to both the U.S. and Canada should be the
same. Therefore data reconciliation as required under the Softwood
Lumber Act of 2008 should not affect data reconciliations under the
U.S.-Canada Softwood Lumber Agreement of 2006.
Comment
One commenter notes that the interim rule set forth in CBP Dec. 08-
32 unnecessarily places an increased burden on importers. It also
impacts small and medium-sized enterprises, including the U.S. housing
industry, and is likely to have a trade dampening effect.
CBP Response
With regard to the commenter's statement that the interim rule
places an unnecessary burden on importers, CBP reiterates that the
interim rule merely implements the entry and recordkeeping requirements
mandated by the Softwood Lumber Act of 2008. The interim rule does not
impose any burdens on trade other than those explicitly required by
law. Moreover, the prescribed method of data collection set forth in
the regulation is intended to streamline the reporting process and
minimize any administrative burden associated with reporting the
required information. This process should help mitigate the
administration burden for all enterprises, including small and medium-
sized businesses.
Comment
One commenter requests that CBP identify the standard to be used in
assessing civil penalties under the Softwood Lumber Act of 2008 by
using the standard contained in 19 U.S.C. 1592 in a new 19 CFR
12.142(f).
CBP Response
CBP does not believe it is necessary to add this language to 19 CFR
12.142 as the standards for assessing civil and criminal penalties are
clearly prescribed by section 808 of the Softwood Lumber Act of 2008.
Comment
One commenter states that CBP Dec. 08-32 does not specify which
date should be used as the basis for the export price and export charge
listed on the entry summary line. Without specifying the date required
as the basis for the export price and export charge, different dates
may be used which would create discrepancies between the export permit
date and the entry summary data. The commenter suggests using the
shipping date to be consistent with the U.S.-Canada Softwood Lumber
Agreement of 2006.
CBP Response
CBP does not believe this change is necessary as importers of
softwood lumber and softwood lumber products from Canada need only
report the export price listed on the permit issued by the Government
of Canada.
Comment
One commenter notes that CBP Dec. 08-32 does not reflect the fact
that Canadian exporters are permitted to cap the export price at $500
per thousand board feet when calculating the export charge. For this
reason, the commenter submits that the export price on the entry
summary will be inconsistent with that on the Canadian export permit
when capped.
[[Page 52455]]
CBP Response
CBP does not believe this change is necessary as importers of
softwood lumber and softwood lumber products only need to report the
export price listed on the permit issued by the Government of Canada.
Comment
One commenter requests that CBP add language to the interim rule
that provides that where an international agreement between a country
that exports softwood lumber or softwood lumber products and the United
States provides greater specificity regarding aspects of the Softwood
Lumber Act of 2008, CBP will implement 19 CFR 12.142 in accordance with
the more specific law to the extent that it does not conflict with the
2008 Act.
CBP Response
CBP is of the view that such language is unnecessary. CBP Dec. 08-
32 implements the Softwood Lumber Act of 2008 in a manner that does not
conflict with international softwood lumber agreements to which the
U.S. is a signatory.
Comment
One commenter strongly supports the requirement for the
presentation of the original paper Maritime Lumber Bureau Certificate
of Origin, as prescribed in CBP Dec. 08-32. The commenter, however,
urges CBP to exclude entirely softwood lumber imported from the
Canadian Maritime provinces from the importer declaration program
promulgated in 19 CFR 12.142.
CBP Response
The Softwood Lumber Act of 2008 requires CBP to collect the export
price, export charge, if any, and importer declaration on all
importations of covered softwood lumber and softwood lumber products.
Accordingly, CBP is without authority to except softwood lumber
imported from the Canadian Maritime provinces from the importer
declaration program. CBP will continue to require the presentation of
the original paper Maritime Lumber Bureau Certificate of Origin.
Conclusion
After review of the comments and further consideration, CBP has
decided to adopt as final the interim rule published in the Federal
Register (73 FR 49934) on August 25, 2008, as CBP Dec. 08-32.
Inapplicability of Notice and Delayed Effective Date Requirements
CBP has determined, pursuant to the provisions of 5 U.S.C.
553(b)(B) and (d)(3), that prior public notice and comment procedures
on this regulation are unnecessary and contrary to the public interest.
These regulations align the CBP regulations to reflect the terms of
Title VIII of the Tariff Act of 1930, as added by section 3301 of Title
III, Subtitle D, of the Food, Conservation, and Energy Act of 2008
(Pub. L. 110-246, enacted June 18, 2008), which went into effect August
18, 2008. The regulatory amendments inform the public of the special
entry and documentation requirements applicable to certain softwood
lumber and softwood lumber products exported from any country into the
United States. The regulations are currently in effect as an interim
rule and this final rule does not change the interim rule. For these
reasons, pursuant to the provisions of 5 U.S.C. 553(d)(3), CBP finds
that there is good cause for dispensing with a delayed effective date.
Regulatory Flexibility Act and Executive Order 12866
CBP Dec. 08-32 was issued as an interim rule rather than a notice
of proposed rulemaking because CBP had determined there was good cause.
The amendments were necessary to inform the public on how to comply
with statutory requirements. Because no notice of proposed rulemaking
was required, the provisions of the Regulatory Flexibility Act (5
U.S.C. 601 et. seq.) do not apply. Further, these amendments do not
meet the criteria for a ``significant regulatory action'' as specified
in E.O. 12866.
Paperwork Reduction Act
The collections of information in this document are contained in
Sec. Sec. 12.142(c) and (d) (19 CFR 12.142(c) and (d)). This
information is used by CBP to fulfill its information collection
obligations under Title VIII of the Tariff Act of 1930, as added by
section 3301 within Title III, Subtitle D, of the Food, Conservation,
and Energy Act of 2008 (Pub. L. 110-246), whereby importers of certain
softwood lumber and softwood lumber products are required to submit the
export price, estimated export charge, if any, and an importer
declaration with the entry summary information or, where applicable, to
submit additional documentation required for home packages and kits.
The likely respondents are business organizations including importers
and brokers.
The collection of information associated with the entry summary
documentation (CBP Form 7501) was previously approved by the Office of
Management and Budget under control number 1651-0052. In accordance
with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), CBP has
submitted to OMB for review an adjustment to the information provided
to OMB for the previously approved OMB control number to account for
the changes in this rule. The estimated annual burden associated with
the collection of information in this final rule is now estimated to be
1,269 hours per respondent. An agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless it displays a valid control number assigned by OMB.
Signing Authority
This document is being issued in accordance with 19 CFR 0.1(a)(1).
List of Subjects
19 CFR Part 12
Bonds, Customs duties and inspection, Entry of merchandise,
Imports, Prohibited merchandise, Reporting and recordkeeping
requirements, Restricted merchandise.
19 CFR Part 163
Customs duties and inspection, Reporting and recordkeeping
requirements.
Amendment to the CBP Regulations
0
Accordingly, the interim rule amending Parts 12 and 163 of the CBP
Regulations (19 CFR Parts 12 and 163), which was published at 73 FR
49934 on August 25, 2008, is adopted as a final rule.
Alan Bersin,
Commissioner, U.S. Customs and Border Protection.
Approved: August 23, 2010.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2010-21244 Filed 8-25-10; 8:45 am]
BILLING CODE 9111-14-P