Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties, 1222-1224 [2013-00146]
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1222
Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices
CATEGORY: Origin
Ms. Susan Todd
Senior Manager, Regulatory Affairs
West-Ward Pharmaceutical Corp.
435 Industrial Way West
Eatontown, NJ 07724
RE: Government Procurement; Trade
Agreements Act; Country of Origin of
Ponstel® (mefenamic acid) Capsules;
Substantial Transformation
Dear Ms. Todd:
This is in response to your letter, dated
August 21, 2012, requesting a final
determination on behalf of West-Ward
Pharmaceutical Corp. (‘‘West-Ward’’)
pursuant to subpart B of part 177 of the U.S.
Customs and Border Protection (‘‘CBP’’)
Regulations (19 C.F.R. Part 177). Under these
regulations, which implement Title III of the
Trade Agreements Act of 1979 (‘‘TAA’’), as
amended (19 U.S.C. § 2511 et seq.), CBP
issues country of origin advisory rulings and
final determinations as to whether an article
is or would be a product of a designated
country or instrumentality for the purposes
of granting waivers of certain ‘‘Buy
American’’ restrictions in U.S. law or
practice for products offered for sale to the
U.S. Government.
This final determination concerns the
country of origin of Ponstel (mefenamic acid)
capsules. As a U.S. importer, West-Ward is
a party-at-interest within the meaning of 19
C.F.R. § 177.22(d)(1) and is entitled to request
this final determination.
FACTS:
West-Ward imports mefenamic acid
powder in bulk form from India, where it is
manufactured. Mefenamic acid is the active
pharmaceutical ingredient (‘‘API’’) in the
pharmaceutical product Ponstel. Ponstel is
indicated for the relief of mild to moderate
pain caused by primary dysmenorrhea and is
approved by the U.S. Food and Drug
Administration, NDA no. 015034.
After importation, West-Ward combines
the API, mefenamic acid, with inactive
ingredients and processes it into dosage form.
The inactive ingredients are lactose
monohydrate, D&C Yellow No. 10, FD&C
Yellow No. 6, gelatin, titanium dioxide, and
food-grade inks. The mefenamic acid is
added to a tumbler and blended. Lactose
monohydrate, a diluent, is then added to the
tumbler and blended with the API. The blend
is transferred to an encapsulating machine
and used to fill capsules purchased from a
U.S. supplier. The capsules are packed into
bottles of 30 capsules each, which are
packaged and shipped to the U.S.-holder of
the New Drug Application for Ponstel.
ISSUE:
What is the country of origin of Ponstel
(mefenamic acid) capsules for purposes of
U.S. Government procurement?
LAW AND ANALYSIS:
Pursuant to Subpart B of Part 177, 19 CFR
§ 177.21 et seq., which implements Title III
of the Trade Agreements Act of 1979, as
amended (19 U.S.C. § 2511 et seq.), CBP
issues country of origin advisory rulings and
final determinations as to whether an article
is or would be a product of a designated
country or instrumentality for the purposes
VerDate Mar<15>2010
19:11 Jan 07, 2013
Jkt 229001
of granting waivers of certain ‘‘Buy
American’’ restrictions in U.S. law or
practice for products offered for sale to the
U.S. Government.
Under the rule of origin set forth under 19
U.S.C. § 2518(4)(B):
An article is a product of a country or
instrumentality only if (i) it is wholly the
growth, product, or manufacture of that
country or instrumentality, or (ii) in the case
of an article which consists in whole or in
part of materials from another country or
instrumentality, it has been substantially
transformed into a new and different article
of commerce with a name, character, or use
distinct from that of the article or articles
from which it was so transformed.
See also 19 C.F.R. § 177.22(a).
A substantial transformation occurs when
an article emerges from a process with a new
name, character and use different from that
possessed by the article prior to processing.
A substantial transformation will not result
from a minor manufacturing or combining
process that leaves the identity of the article
intact. See United States v. Gibson-Thomsen
Co., 27 C.C.P.A. 267 (1940); and, National
Juice Products Association v. United States,
628 F. Supp. 978 (Ct. Int’l Trade 1986).
In determining whether a substantial
transformation occurs in the manufacture of
chemical products such as pharmaceuticals,
CBP has consistently examined the
complexity of the processing and whether the
final article retains the essential identity and
character of the raw material. To that end,
CBP has generally held that the processing of
pharmaceutical products from bulk form into
measured doses does not result in a
substantial transformation of the product. See
e.g., Headquarters Ruling Letter (‘‘HQ’’)
561975, dated April 3, 2002; HQ 561544,
dated May 1, 2000; and, HQ 735146, dated
November 15, 1993.
For instance, in HQ 561975, the anesthetic
drug sevoflurane imported into the U.S. in
bulk form and processed into dosage form by
extensive testing operations, followed by
filtering and packaging into bottles, was
found not to have undergone a substantial
transformation in the U.S. There was no
change in name (the product was identified
as sevoflurane in both its bulk and processed
form). The sevoflurane retained its chemical
and physical properties after the U.S.
processing. Lastly, because the imported bulk
sevoflurane had a predetermined medicinal
use as an inhalable anesthetic drug, the
processing in the United States resulted in no
change in the product’s use.
Likewise, in HQ 561544, the testing,
filtering and sterile packaging of Geneticin
Sulfate bulk powder, to create Geneticin
Selective Antibiotic, was not found to have
substantially transformed the antibiotic
substance because the processing only
involved the removal of impurities from the
bulk chemical and the placement of the
chemical into smaller packaging.
In HQ 735146, 100 percent pure
acetaminophen imported from China was
blended with excipients in the United States,
granulated and sold to pharmaceutical
companies to process into tablets for retail
sale under private labels. U.S. Customs (now
CBP) found that the process in the United
PO 00000
Frm 00027
Fmt 4703
Sfmt 4703
States did not substantially transform the
imported product because the product was
referred to as acetaminophen both before
importation and after U.S. processing, as
imported the acetaminophen was used for
medicinal purposes and continued to be so
used after U.S. processing, and the
granulating process minimally affected the
chemical and physical properties of the
acetaminophen.
In this case, the mefenamic acid imported
from India is blended with excipients and
packaged into dosage form in the United
States. Based on the rulings above, we find
that this process does not substantially
transform the mefenamic acid because its
chemical character remains the same. As
such, we find that the country of origin of the
Ponstel (mefenamic acid) capsules is India,
where the mefanamic acid was
manufactured.
HOLDING:
Based on the facts in this case, the
blending and packaging operations
performed in the United States do not
substantially transform the mefenamic acid
imported from India. Therefore, the country
of origin of the Ponstel® (mefenamic acid)
capsules is India for purposes of U.S.
Government procurement.
Notice of this final determination will be
given in the Federal Register, as required by
19 C.F.R. § 177.29. Any party-at-interest other
than the party which requested this final
determination may request, pursuant to 19
C.F.R. § 177.31, that CBP reexamine the
matter anew and issue a new final
determination. Pursuant to 19 C.F.R.
§ 177.30, any party-at-interest may, within 30
days of publication of the Federal Register
Notice referenced above, seek judicial review
of this final determination before the Court
of International Trade.
Sincerely,
Jeremy Baskin,
Acting Executive Director, Regulations and
Rulings, Office of International Trade.
[FR Doc. 2013–00140 Filed 1–7–13; 8:45 am]
BILLING CODE;P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
Quarterly IRS Interest Rates Used in
Calculating Interest on Overdue
Accounts and Refunds on Customs
Duties
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: General notice.
AGENCY:
This notice advises the public
of the quarterly Internal Revenue
Service interest rates used to calculate
interest on overdue accounts
(underpayments) and refunds
(overpayments) of customs duties. For
the calendar quarter beginning January
1, 2013, the interest rates for
SUMMARY:
E:\FR\FM\08JAN1.SGM
08JAN1
Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices
overpayments will be 2 percent for
corporations and 3 percent for noncorporations, and the interest rate for
underpayments will be 3 percent for
both corporations and non-corporations.
This notice is published for the
convenience of the importing public
and U.S. Customs and Border Protection
personnel.
DATES: Effective Date: January 1, 2013.
FOR FURTHER INFORMATION CONTACT: Ron
Wyman, Revenue Division, Collection
and Refunds Branch, 6650 Telecom
Drive, Suite #100, Indianapolis, Indiana
46278; telephone (317) 614–4516.
SUPPLEMENTARY INFORMATION:
Background
Pursuant to 19 U.S.C. 1505 and
Treasury Decision 85–93, published in
the Federal Register on May 29, 1985
(50 FR 21832), the interest rate paid on
applicable overpayments or
underpayments of customs duties must
srobinson on DSK4SPTVN1PROD with
Beginning date
19:11 Jan 07, 2013
Under-payments
(percent)
Ending date
070174
070175
020176
020178
020180
020182
010183
070183
010185
070185
010186
070186
010187
100187
010188
040188
100188
040189
100189
040191
010192
040192
100192
070194
100194
040195
070195
040196
070196
040198
010199
040199
040100
040101
070101
010102
010103
100103
040104
070104
100104
040105
100105
070106
010108
VerDate Mar<15>2010
be in accordance with the Internal
Revenue Code rate established under 26
U.S.C. 6621 and 6622. Section 6621 was
amended (at paragraph (a)(1)(B) by the
Internal Revenue Service Restructuring
and Reform Act of 1998, Public Law
105–206, 112 Stat. 685) to provide
different interest rates applicable to
overpayments: one for corporations and
one for non-corporations.
The interest rates are based on the
Federal short-term rate and determined
by the Internal Revenue Service (IRS) on
behalf of the Secretary of the Treasury
on a quarterly basis. The rates effective
for a quarter are determined during the
first-month period of the previous
quarter.
In Revenue Ruling 2012–32, the IRS
determined the rates of interest for the
calendar quarter beginning January 1,
2013, and ending on March 31, 2013.
The interest rate paid to the Treasury for
underpayments will be the Federal
063075
013176
013178
013180
013182
123182
063083
123184
063085
123185
063086
123186
093087
123187
033188
093088
033189
093089
033191
123191
033192
093092
063094
093094
033195
063095
033196
063096
033198
123198
033199
033100
033101
063001
123101
123102
093003
033104
063004
093004
033105
093005
063006
123107
033108
Jkt 229001
PO 00000
Frm 00028
short-term rate (1%) plus two
percentage points (2%) for a total of
three percent (3%) for both corporations
and non-corporations. For corporate
overpayments, the rate is the Federal
short-term rate (1%) plus one
percentage point (1%) for a total of two
percent (2%). For overpayments made
by non-corporations, the rate is the
Federal short-term rate (1%) plus two
percentage points (2%) for a total of
three percent (3%). These interest rates
are subject to change for the calendar
quarter beginning April 1, 2013, and
ending June 30, 2013.
For the convenience of the importing
public and U.S. Customs and Border
Protection personnel the following list
of IRS interest rates used, covering the
period from before July of 1974 to date,
to calculate interest on overdue
accounts and refunds of customs duties,
is published in summary format.
Sfmt 4703
Corporate overpayments
(Eff. 1–1–99)
(percent)
Over-payments
(percent)
6
9
7
6
12
20
16
11
13
11
10
9
9
10
11
10
11
12
11
10
9
8
7
8
9
10
9
8
9
8
7
8
9
8
7
6
5
4
5
4
5
6
7
8
7
Fmt 4703
1223
E:\FR\FM\08JAN1.SGM
6
9
7
6
12
20
16
11
13
11
10
9
8
9
10
9
10
11
10
9
8
7
6
7
8
9
8
7
8
7
7
8
9
8
7
6
5
4
5
4
5
6
7
8
7
08JAN1
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6
7
8
7
6
5
4
3
4
3
4
5
6
7
6
1224
Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices
Beginning date
040108
070108
100108
010109
040109
010111
040111
100111
063008
093008
123108
033109
123110
033111
093011
033113
Dated: January 2, 2013.
Thomas S. Winkowski,
Acting Deputy Commissioner, U.S. Customs
and Border Protection.
[FR Doc. 2013–00146 Filed 1–7–13; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5667–N–01]
Supportive Housing for the Elderly;
Advance Notice of Senior Preservation
Rental Assistance Contracts Award
Process
Office of the Assistant
Secretary for Housing—Federal Housing
Commissioner, (HUD).
ACTION: Notice.
AGENCY:
The Section 202 Supportive
Housing for the Elderly Act of 2010,
signed into law in January 2011,
authorizes HUD to provide Senior
Preservation Rental Assistance
Contracts (SPRACs) with 20-year terms
to prevent displacement of elderly
residents of certain projects assisted
under HUD’s Section 202 Supportive
Housing for the Elderly program in the
case of refinancing or recapitalization
and to further preserve and maintain
affordability of Section 202 Direct Loan
projects. In Fiscal Year (FY) 2012, $16
million was made available for SPRAC
funding. This notice advises of HUD’s
intent to award SPRACs through the
proposed application process described
in this notice. HUD is soliciting
comments on the proposed process for
awarding SPRACs and the associated
criteria for establishing eligibility to
apply for a SPRAC.
DATES: Comment Due Date: March 11,
2013.
ADDRESSES: Interested persons are
invited to submit comments regarding
this notice to the Regulations Division,
Office of General Counsel, Department
of Housing and Urban Development,
451 7th Street SW., Room 10276,
Washington, DC 20410–0500.
Communications must refer to the above
srobinson on DSK4SPTVN1PROD with
SUMMARY:
VerDate Mar<15>2010
19:11 Jan 07, 2013
Under-payments
(percent)
Ending date
Jkt 229001
6
5
6
5
4
3
4
3
docket number and title. There are two
methods for submitting public
comments. All submissions must refer
to the above docket number and title.
1. Submission of Comments by Mail.
Comments may be submitted by mail to
the Regulations Division, Office of
General Counsel, Department of
Housing and Urban Development, 451
7th Street SW., Room 10276,
Washington, DC 20410–0500.
2. Electronic Submission of
Comments. Interested persons may
submit comments electronically through
the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly
encourages commenters to submit
comments electronically. Electronic
submission of comments allows the
commenter maximum time to prepare
and submit a comment, ensures timely
receipt by HUD, and enables HUD to
make them immediately available to the
public. Comments submitted
electronically through the
www.regulations.gov Web site can be
viewed by other commenters and
interested members of the public.
Commenters should follow the
instructions provided on that site to
submit comments electronically.
Note: To receive consideration as public
comments, comments must be submitted
through one of the two methods specified
above. Again, all submissions must refer to
the docket number and title of the notice.
No Facsimile Comments. Facsimile
(FAX) comments are not acceptable.
Public Inspection of Public
Comments. All properly submitted
comments and communications
submitted to HUD will be available for
public inspection and copying between
8 a.m. and 5 p.m. weekdays at the above
address. Due to security measures at the
HUD Headquarters building, an
appointment to review the public
comments must be scheduled in
advance by calling the Regulations
Division at 202–708–3055 (this is not a
toll-free number). Individuals with
speech or hearing impairments may
access this number via TTY by calling
the Federal Relay Service at 800–877–
8339. Copies of all comments submitted
PO 00000
Frm 00029
Fmt 4703
Sfmt 4703
Corporate overpayments
(Eff. 1–1–99)
(percent)
Over-payments
(percent)
6
5
6
5
4
3
4
3
5
4
5
4
3
2
3
2
are available for inspection and
downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Margaret Salazar, Deputy Director of the
Office of Affordable Housing
Development, Office of Multifamily
Housing Programs, Office of Housing,
Department of Housing and Urban
Development, 451 7th Street SW., Room
6112, Washington, DC 20410; telephone
number 202–708–2495 (this is not a tollfree number). Persons with hearing or
speech impairments may access this
number through TTY by calling the tollfree Federal Relay Service at 800–877–
8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Section 202 Supportive Housing
for the Elderly Act of 2010 (Pub. L. 111–
372, approved January 4, 2011) (Section
202 of 2010 Act) authorizes HUD to
provide SPRACs with 20-year terms to
prevent displacement of elderly
residents of certain projects assisted
under HUD’s Section 202 Supportive
Housing for the Elderly program
(Section 202 program) in the case of
refinancing or recapitalization and to
further preserve and maintain
affordability of Section 202 Direct Loan
projects. General authority for a Section
202 Direct Loan is provided by Section
811 of the American Homeownership
and Economic Opportunity (AHEO) Act
of 2000, as amended by the Section 202
of 2010 Act (12 U.S.C. 1701q note).
Pursuant to this authority, SPRAC
assistance may be provided to Section
202 properties with original interest
rates of 6 percent or less (financed prior
to 1974), when the property is
refinanced to make capital repairs and
the owner does not anticipate debt
service savings from the refinance. In
FY 2012, $16 million was made
available for SPRAC funding.
II. This Notice—Solicitation of
Comment
This notice advises of HUD’s intent to
award SPRACs through the proposed
application process described in this
notice. HUD is soliciting comments on
E:\FR\FM\08JAN1.SGM
08JAN1
]]>Agencies
[Federal Register Volume 78, Number 5 (Tuesday, January 8, 2013)]
[Notices]
[Pages 1222-1224]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00146]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Quarterly IRS Interest Rates Used in Calculating Interest on
Overdue Accounts and Refunds on Customs Duties
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: General notice.
-----------------------------------------------------------------------
SUMMARY: This notice advises the public of the quarterly Internal
Revenue Service interest rates used to calculate interest on overdue
accounts (underpayments) and refunds (overpayments) of customs duties.
For the calendar quarter beginning January 1, 2013, the interest rates
for
[[Page 1223]]
overpayments will be 2 percent for corporations and 3 percent for non-
corporations, and the interest rate for underpayments will be 3 percent
for both corporations and non-corporations. This notice is published
for the convenience of the importing public and U.S. Customs and Border
Protection personnel.
DATES: Effective Date: January 1, 2013.
FOR FURTHER INFORMATION CONTACT: Ron Wyman, Revenue Division,
Collection and Refunds Branch, 6650 Telecom Drive, Suite 100,
Indianapolis, Indiana 46278; telephone (317) 614-4516.
SUPPLEMENTARY INFORMATION:
Background
Pursuant to 19 U.S.C. 1505 and Treasury Decision 85-93, published
in the Federal Register on May 29, 1985 (50 FR 21832), the interest
rate paid on applicable overpayments or underpayments of customs duties
must be in accordance with the Internal Revenue Code rate established
under 26 U.S.C. 6621 and 6622. Section 6621 was amended (at paragraph
(a)(1)(B) by the Internal Revenue Service Restructuring and Reform Act
of 1998, Public Law 105-206, 112 Stat. 685) to provide different
interest rates applicable to overpayments: one for corporations and one
for non-corporations.
The interest rates are based on the Federal short-term rate and
determined by the Internal Revenue Service (IRS) on behalf of the
Secretary of the Treasury on a quarterly basis. The rates effective for
a quarter are determined during the first-month period of the previous
quarter.
In Revenue Ruling 2012-32, the IRS determined the rates of interest
for the calendar quarter beginning January 1, 2013, and ending on March
31, 2013. The interest rate paid to the Treasury for underpayments will
be the Federal short-term rate (1%) plus two percentage points (2%) for
a total of three percent (3%) for both corporations and non-
corporations. For corporate overpayments, the rate is the Federal
short-term rate (1%) plus one percentage point (1%) for a total of two
percent (2%). For overpayments made by non-corporations, the rate is
the Federal short-term rate (1%) plus two percentage points (2%) for a
total of three percent (3%). These interest rates are subject to change
for the calendar quarter beginning April 1, 2013, and ending June 30,
2013.
For the convenience of the importing public and U.S. Customs and
Border Protection personnel the following list of IRS interest rates
used, covering the period from before July of 1974 to date, to
calculate interest on overdue accounts and refunds of customs duties,
is published in summary format.
------------------------------------------------------------------------
Corporate
Beginning Under- Over- overpayments
date Ending date payments payments (Eff. 1-1-99)
(percent) (percent) (percent)
------------------------------------------------------------------------
070174 063075 6 6 .............
070175 013176 9 9 .............
020176 013178 7 7 .............
020178 013180 6 6 .............
020180 013182 12 12 .............
020182 123182 20 20 .............
010183 063083 16 16 .............
070183 123184 11 11 .............
010185 063085 13 13 .............
070185 123185 11 11 .............
010186 063086 10 10 .............
070186 123186 9 9 .............
010187 093087 9 8 .............
100187 123187 10 9 .............
010188 033188 11 10 .............
040188 093088 10 9 .............
100188 033189 11 10 .............
040189 093089 12 11 .............
100189 033191 11 10 .............
040191 123191 10 9 .............
010192 033192 9 8 .............
040192 093092 8 7 .............
100192 063094 7 6 .............
070194 093094 8 7 .............
100194 033195 9 8 .............
040195 063095 10 9 .............
070195 033196 9 8 .............
040196 063096 8 7 .............
070196 033198 9 8 .............
040198 123198 8 7 .............
010199 033199 7 7 6
040199 033100 8 8 7
040100 033101 9 9 8
040101 063001 8 8 7
070101 123101 7 7 6
010102 123102 6 6 5
010103 093003 5 5 4
100103 033104 4 4 3
040104 063004 5 5 4
070104 093004 4 4 3
100104 033105 5 5 4
040105 093005 6 6 5
100105 063006 7 7 6
070106 123107 8 8 7
010108 033108 7 7 6
[[Page 1224]]
040108 063008 6 6 5
070108 093008 5 5 4
100108 123108 6 6 5
010109 033109 5 5 4
040109 123110 4 4 3
010111 033111 3 3 2
040111 093011 4 4 3
100111 033113 3 3 2
------------------------------------------------------------------------
Dated: January 2, 2013.
Thomas S. Winkowski,
Acting Deputy Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2013-00146 Filed 1-7-13; 8:45 am]
BILLING CODE 9111-14-P
