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Federal Register / Vol. 72, No.

199 / Tuesday, October 16, 2007 / Rules and Regulations 58511

Pendleton, OR, Eastern Oregon Regional DEPARTMENT OF HOMELAND of 9 a.m. and 4:30 p.m. at the Trade and
at Pendleton, ILS OR LOC/DME RWY SECURITY Commercial Regulations Branch,
25, Amdt 24 Regulations and Rulings, U.S. Customs
Bureau of Customs and Border and Border Protection, 799 9th Street,
Allentown, PA, Allentown/Queen City
Protection NW. (5th Floor), Washington, DC.
Muni, RNAV (GPS) RWY 7, Orig
Arrangements to inspect submitted
Allentown, PA, Allentown/Queen City DEPARTMENT OF THE TREASURY comments should be made in advance
Muni, VOR–B, Amdt 7 by calling Mr. Joseph Clark at (202) 572–
Allentown, PA, Allentown/Queen City 19 CFR PARTS 10, 24, 102, 162, 163, 8768.
Muni, GPS RWY 7, Orig, CANCELLED and 178 FOR FURTHER INFORMATION CONTACT:
Collegeville, PA, Perkiomen Valley, USCBP–2007–0063 Textile Operational Aspects: Robert
Takeoff Minimums and Obstacle DP, CBP Dec. 07–81 Abels, Office of International Trade,
Orig (202) 344–1959.
RIN 1505–AB81
Other Operational Aspects: Seth
Barnwell, SC, Barnwell Rgnl, RNAV Mazze, Office of International Trade,
(GPS) RWY 35, Orig United States-Bahrain Free Trade
Agreement (202) 344–2634.
Union City, TN, Everett-Stewart, VOR/ Audit Aspects: Mark Hanson, Office
DME–A, Amdt 8 AGENCIES: Bureau of Customs and of International Trade, (202) 863–3065.
Border Protection, Department of Legal Aspects: Holly Files, Office of
Culpeper, VA, Culpeper Regional,
Homeland Security; Department of the International Trade, (202) 572–8817.
Takeoff Minimums and Obstacle DP, Treasury.
Orig SUPPLEMENTARY INFORMATION:
ACTION: Interim regulations; solicitation
New Richmond, WI, New Richmond of comments. Public Participation
Regional, RNAV (GPS) RWY 14, Amdt Interested persons are invited to
1 SUMMARY: This document amends the
participate in this rulemaking by
U.S. Customs and Border Protection submitting written data, views, or
New Richmond, WI, New Richmond
(‘‘CBP’’) regulations on an interim basis arguments on all aspects of the interim
Regional, RNAV (GPS) RWY 32, Amdt
to implement the preferential tariff rule. CBP also invites comments that
1 treatment and other customs-related relate to the economic, environmental,
New Richmond, WI, New Richmond provisions of the United States-Bahrain or federalism effects that might result
Regional, NDB RWY 14, Amdt 3 Free Trade Agreement entered into by from this interim rule. Comments that
New Richmond, WI, New Richmond the United States and the Kingdom of will provide the most assistance to CBP
Regional, Takeoff Minimums and Bahrain. will reference a specific portion of the
Obstacle DP, Orig DATES: Interim rule effective October 16, interim rule, explain the reason for any
Prairie Du Sac, WI, Sauk-Prairie, RNAV 2007; comments must be received by recommended change, and include data,
(GPS) RWY 18, Orig December 17, 2007. information, or authority that support
ADDRESSES: You may submit comments, such recommended change. See
Prairie Du Sac, WI, Sauk-Prairie, RNAV ADDRESSES above for information on
identified by docket number, by one of
(GPS) RWY 36, Orig the following methods: how to submit comments.
Prairie Du Sac, WI, Sauk-Prairie, Takeoff • Federal eRulemaking Portal: http:// Background
Minimums and Obstacle DP, Orig www.regulations.gov. Follow the
Charleston, WV, Yeager, RADAR–1, instructions for submitting comments On September 14, 2004, the United
via docket number USCBP–2007–0063. States and the Kingdom of Bahrain (the
Amdt 12A, CANCELLED
• Mail: Trade and Commercial ‘‘Parties’’) signed the U.S.-Bahrain Free
Hulett, WY, Hulett Muni, RNAV (GPS)– Regulations Branch, Regulations and Trade Agreement (‘‘BFTA’’ or
A, Orig Rulings, U.S. Customs and Border ‘‘Agreement’’). The stated objectives of
Hulett, WY, Hulett Muni, Takeoff Protection, 1300 Pennsylvania Avenue, the BFTA include creating new
Minimums and Obstacle DP, Orig NW. (Mint Annex), Washington, DC employment opportunities and raising
20229. the standard of living for the citizens of
Jackson, WY, Jackson Hole, ILS OR LOC
Instructions: All submissions received the Parties by liberalizing and
Z RWY 19, Orig expanding trade between them;
must include the agency name and
Effective 14 FEB 2008 docket number for this rulemaking. All enhancing the competitiveness of the
comments received will be posted enterprises of the Parties in global
San Francisco, CA, San Francisco Intl, without change to http:// markets; establishing clear and mutually
RNAV (GPS) X RWY 10R, Orig-B www.regulations.gov, including any advantageous rules governing trade
Clinton, MD, Washington Executive/ personal information provided. For between the Parties; eliminating bribery
Hyde Field, Takeoff Minimums and detailed instructions on submitting and corruption in international trade
Obstacle DP, Orig comments and additional information and investment; fostering creativity and
[FR Doc. E7–20212 Filed 10–15–07; 8:45 am] on the rulemaking process, see the innovation by improving technology
‘‘Public Participation’’ heading of the and enhancing the protection and
BILLING CODE 4910–13–P
SUPPLEMENTARY INFORMATION section of enforcement of intellectual property
this document. rights; strengthening the development
Docket: For access to the docket to and enforcement of labor and
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read background documents or environmental laws and policies; and


comments received, go to http:// establishing an expanded free trade area
www.regulations.gov. Submitted in the Middle East, thereby contributing
comments may also be inspected during to economic liberalization and
regular business days between the hours development in the region.

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58512 Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations

The provisions of the BFTA were imported good qualifies as an used in Chapter Four of the BFTA. The
adopted by the United States with the originating good of the United States or basic rules of origin in Chapter Four of
enactment of the United States-Bahrain Bahrain (BFTA Party) and, as such, is the BFTA are set forth in General Note
Free Trade Agreement Implementation therefore eligible for preferential tariff 30, HTSUS.
Act (the ‘‘Act’’), Public Law 109–169, (duty-free or reduced duty) treatment as Chapter Five sets forth the customs
119 Stat. 3581 (19 U.S.C. 3805 note), on specified in the Agreement. Under operational provisions related to the
January 11, 2006. Section 205 of the Act Article 4.1, originating goods may be implementation and administration of
requires that regulations be prescribed grouped in three broad categories: (1) the BFTA.
as necessary. Goods that are wholly the growth, In order to provide transparency and
On July 27, 2006, the President signed product, or manufacture of one or both facilitate their use, the majority of the
Proclamation 8039 to implement the of the Parties; (2) goods (other than BFTA implementing regulations set
provisions of the BFTA. The those covered by the product-specific forth in this document have been
proclamation, which was published in rules set forth in Annex 3–A or Annex included within new Subpart N in Part
the Federal Register on August 1, 2006 4–A) that are new or different articles of 10 of the CBP regulations (19 CFR Part
(71 FR 43635), modified the commerce that have been grown, 10). However, in those cases in which
Harmonized Tariff Schedule of the produced, or manufactured in the BFTA implementation is more
United States (‘‘HTSUS’’) as set forth in territory of one or both of the Parties, appropriate in the context of an existing
Annexes I and II of Publication 3830 of and that have a minimum value-content, regulatory provision, the BFTA
the U.S. International Trade i.e., at least 35 percent of the good’s regulatory text has been incorporated in
Commission. The modifications to the appraised value must be attributed to an existing Part within the CBP
HTSUS included the addition of new the cost or value of materials produced regulations. In addition, this document
General Note 30, incorporating the in one or both of the Parties plus the sets forth several cross-references and
relevant BFTA rules of origin as set direct costs of processing operations other consequential changes to existing
forth in the Act, and the insertion performed in one or both of the Parties; regulatory provisions to clarify the
throughout the HTSUS of the and (3) goods that satisfy the product- relationship between those existing
preferential duty rates applicable to specific rules set forth in Annex 3–A provisions and the new BFTA
individual products under the BFTA (textile or apparel goods) or Annex 4– implementing regulations. The
where the special program indicator A (certain non-textile or non-apparel regulatory changes are discussed below
‘‘BH’’ appears in parenthesis in the goods). in the order in which they appear in this
‘‘Special’’ rate of duty subcolumn. The Article 4.2 explains that the term document.
modifications to the HTSUS also ‘‘new or different article of commerce’’
included a new Subchapter XIV to means a good that has been Discussion of Amendments
Chapter 99 to provide for temporary substantially transformed from a good or Part 10
tariff rate quotas and applicable material that is not wholly the growth, Section 10.31(f) concerns temporary
safeguards implemented by the BFTA. product, or manufacture of one or both importations under bond. It is amended
U.S. Customs and Border Protection of the Parties and that has a new name, by adding references to certain goods
(‘‘CBP’’) is responsible for administering character, or use distinct from the good originating in Bahrain for which, like
the provisions of the BFTA and the Act or material from which it was goods originating in Canada, Mexico,
that relate to the importation of goods transformed. Article 4.3 provides that a Singapore, Chile, and Morocco, no bond
into the United States from Bahrain. good will not be considered to be a new
or other security will be required when
Those customs-related BFTA provisions or different article of commerce as the
imported temporarily for prescribed
that require implementation through result of undergoing simple combining
regulation include certain tariff and uses. The provisions of BFTA Article
or packaging operations, or mere
non-tariff provisions within Chapter 2.5 (temporary admission of goods) are
dilution with water or another
One (Initial Provisions and Definitions), already reflected in existing temporary
substance that does not materially alter
Chapter Two (National Treatment and importation bond or other provisions
the characteristics of the good.
Market Access for Goods), Chapter Article 4.4 provides for the contained in Part 10 of the CBP
Three (Textiles and Apparel), Chapter accumulation of production in the regulations and in Chapter 98 of the
Four (Rules of Origin), and Chapter Five territory of one or both of the Parties in HTSUS.
(Customs Administration). determining whether a good qualifies as Part 10, Subpart N
These implementing regulations originating under the BFTA. Articles 4.5
incorporate certain general definitions and 4.6 set forth the rules for calculating General Provisions
set forth in Article 1.3 of the BFTA. the value of materials and the direct Section 10.801 outlines the scope of
These regulations also implement costs of processing operations, new Subpart N, Part 10. This section
Article 2.6 (Goods Re-entered After respectively, for purposes of also clarifies that, except where the
Repair or Alteration) of Chapter Two of determining whether a good satisfies the context otherwise requires, the
the BFTA. 35 percent value-content requirement. requirements contained in Subpart N,
Chapter Three of the BFTA sets forth Articles 4.7 through 4.9 consist of Part 10 are in addition to general
the measures relating to trade in textile additional sub-rules applicable to administrative and enforcement
and apparel goods between Bahrain and originating goods, involving retail provisions set forth elsewhere in the
the United States under the BFTA. The packaging materials, packing materials CBP regulations. Thus, for example, the
provisions within Chapter Three that for shipment, indirect materials, and specific merchandise entry
require regulatory action by CBP are transit and transshipment. In addition, requirements contained in Subpart N,
Article 3.2 (Rules of Origin and Related Articles 4.10 and 4.11 set forth the Part 10 are in addition to the basic entry
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Matters), Article 3.3 (Customs procedural requirements that apply requirements contained in Parts 141–
Cooperation), and Article 3.4 under the BFTA, in particular with 143 of the CBP regulations.
(Definitions). regard to importer claims for Section 10.802 sets forth definitions
Chapter Four of the BFTA sets forth preferential tariff treatment. Article 4.14 of common terms used in multiple
the rules for determining whether an provides definitions of certain terms contexts or places within Subpart N,

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Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations 58513

Part 10. Although the majority of the paragraph (i) of § 10.809, the United Originating Textile or Apparel Goods
definitions in this section are based on States should be guided by the Section 10.811(a), as provided for in
definitions contained in Article 1.3 of provisions of Part 102 of the CBP Article 3.2.6 of the BFTA, sets forth a de
the BFTA and § 3 of the Act, other regulations (19 CFR Part 102). minimis rule for certain textile or
definitions have also been included to apparel goods that may be considered to
General Rules of Origin
clarify the application of the regulatory qualify as originating goods even though
texts. Additional definitions which Section 10.810 includes the basic they fail to satisfy the applicable change
apply in a more limited Subpart N, Part rules of origin established in Article 4.1 in tariff classification set out in General
10 context are set forth elsewhere with of the BFTA, section 202(b) of the Act, Note 30(h). This paragraph also includes
the substantive provisions to which they and General Note 30(b), HTSUS. an exception to the de minimis rule.
relate. Paragraph (a) of § 10.810 sets forth the Section 10.811(b), which is based on
Import Requirements three basic categories of goods that are Article 3.2.7 of the BFTA, sets forth a
considered originating goods under the special rule for textile or apparel goods
Section 10.803 sets forth the BFTA. Paragraph (a)(1) of § 10.810 classifiable under General Rule of
procedure for claiming BFTA tariff specifies those goods that are Interpretation 3, HTSUS, as goods put
benefits at the time of entry. considered originating goods because up in sets for retail sale.
Section 10.804, as provided in BFTA they are wholly the growth, product, or
Article 4.10(b), requires a U.S. importer, manufacture of one or both of the Accumulation
upon request, to submit a declaration Parties. Paragraph (a)(2) provides that Section 10.812, which is derived from
setting forth all pertinent information goods are considered originating goods BFTA Article 4.4, sets forth the rule by
concerning the growth, production, or if they: (1) Are new or different articles which originating goods or materials
manufacture of the good. Included in of commerce that have been grown, from the territory of a Party that are
§ 10.804 is a provision that the produced, or manufactured in the used in the production of a good in the
declaration may be used either for a territory of one or both of the Parties as territory of the other Party will be
single importation or for multiple determined by application of the considered to originate in the territory
importations of identical goods. provisions of § 102.1 through § 102.21 of of such other Party. In addition, this
Section 10.805 sets forth certain the CBP regulations (19 CFR section also establishes that a good or
importer obligations regarding the 102.1 102.21); (2) are classified in material that is produced by one or
truthfulness of information and HTSUS provisions that are not covered more producers in the territory of one or
documents submitted in support of a by the product-specific rules set forth in both of the Parties is an originating good
claim for preferential tariff treatment General Note 30(h), HTSUS; and (3) or material if the article satisfies all of
under the BFTA. As provided in BFTA meet a 35 percent domestic-content the applicable requirements of the rules
Article 4.10(a), this section states that a requirement. Finally, paragraph (a)(3) of origin of the BFTA.
U.S. importer who makes a claim for states that goods are considered
preferential tariff treatment for a good is Value of Materials
originating goods if: (1) They are
deemed to have certified that the good classified in HTSUS provisions that are Section 10.813 implements Article 4.5
qualifies for such treatment. covered by the product-specific rules set of the BFTA, relating to the calculation
Section 10.806 provides that the forth in General Note 30(h), HTSUS; (2) of the value of materials that may be
importer’s declaration is not required each non-originating material used in applied toward satisfaction of the 35
for certain non-commercial or low-value the production of the good in the percent value-content requirement.
importations. territory of one or both of the Parties
Section 10.807 implements the Direct Costs of Processing Operations
undergoes an applicable change in tariff
portion of BFTA Article 4.10 concerning Section 10.814, which reflects Article
classification or otherwise satisfies the
the maintenance of records necessary 4.6 of the BFTA, sets forth provisions
requirements specified in General Note
for the preparation of the declaration. regarding the calculation of direct costs
30(h), HTSUS; and (3) the goods meet
Section 10.808, which is based on of processing operations for purposes of
any other requirements specified in
BFTA Article 4.11.1, provides for the the 35 percent value-content
General Note 30, HTSUS.
denial of BFTA tariff benefits if the requirement.
importer fails to comply with any of the Paragraph (b) of § 10.810 sets forth the
requirements of Subpart N, Part 10, CBP basic rules that apply for purposes of Packaging and Packing Materials and
regulations. determining whether a good satisfies the Containers for Retail Sale and for
35 percent domestic-content Shipment
Rules of Origin requirement referred to in § 10.810(a)(2). Section 10.815 is based on Article 4.7
Sections 10.809 through 10.817 Paragraph (c) of § 10.810 implements of the BFTA and provides that retail
provide the implementing regulations Article 4.3 of the BFTA, relating to the packaging materials and packing
regarding the rules of origin provisions simple combining or packaging or mere materials for shipment are to be
of General Note 30, HTSUS, Article 3.2 dilution exceptions to the ‘‘new or disregarded in determining whether a
and Chapter Four of the BFTA, and different article of commerce’’ good qualifies as originating under the
§ 202 of the Act. requirement of § 10.810(a)(2). Since the BFTA, except to the extent that the
language in Article 4.3 of the BFTA (and value of such packaging and packing
Definitions § 202(i)(7)(B) of the Act) is nearly materials may be included for purposes
Section 10.809 sets forth terms that identical to the language found in of meeting the 35 percent value-content
are defined for purposes of the rules of § 213(a)(2) of the Caribbean Basin requirement.
origin. CBP notes that, pursuant to Economic Recovery Act (‘‘CBERA’’) (19
Indirect Materials
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letters of understanding exchanged U.S.C. 2703(a)(2)), § 10.810(c)


between the Parties on September 14, incorporates by reference the examples Section 10.816, which is derived from
2004, in determining whether a good and principles set forth in § 10.195(a)(2) Article 4.8 of the BFTA, provides that
meets the definition of a ‘‘new or of CBP’s implementing CBERA indirect materials will be disregarded in
different article of commerce’’ in regulations. determining whether a good qualifies as

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58514 Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations

an originating good under the BFTA, Section 10.823 provides for the denial examination of, among other things,
except to the extent that the cost of such of a TPL claim if the importer fails to imported merchandise. A cross-
indirect materials may be included comply with any applicable reference is added to § 162.0, which is
toward satisfying the 35 percent value- requirement under Subpart N, Part 10, the scope section of the part, to refer
content requirement. CBP regulations, including the failure to readers to the additional BFTA records
provide documentation, when requested maintenance and examination
Imported Directly
by CBP, establishing that the good was provisions contained in new Subpart N,
Section 10.817(a) sets forth the basic imported directly from the territory of a Part 10, CBP regulations.
rule, found in Article 4.1 of the BFTA, Party into the territory of the other
that a good must be imported directly Part 163
Party.
from the territory of a Party into the A conforming amendment is made to
territory of the other Party to qualify as Origin Verifications and Determinations § 163.1 to include the maintenance of
an originating good under the BFTA. Sections 10.824 implements BFTA any documentation that the importer
This paragraph further provides that, as Article 4.11.2 by providing that a claim may have in support of a claim for
set forth in Article 4.9 of the BFTA, a for BFTA preferential tariff treatment, preference under the BFTA as an
good will not be considered to be including any information submitted in activity for which records must be
imported directly if, after exportation support of the claim, will be subject to maintained. Also, the list or records and
from the territory of a Party, the good such verification as CBP deems information required for the entry of
undergoes production, manufacturing, necessary. This section further sets forth merchandise appearing in the Appendix
or any other operation outside the the circumstances under which a claim to Part 163 (commonly known as the
territories of the Parties, other than may be denied based on the results of (a)(1)(A) list)) is also amended to add
certain minor operations. the verification. the BFTA records that the importer may
Paragraph (b) of § 10.817 provides that Section 10.825 implements BFTA have in support of a BFTA claim for
an importer making a claim for Article 4.11.3 by providing that CBP preferential tariff treatment.
preferential tariff treatment under the will issue a determination to the Part 178
BFTA may be required to demonstrate, importer when CBP determines that a
through the submission of documentary claim for BFTA preferential tariff Part 178 sets forth the control
evidence, that the ‘‘imported directly’’ treatment should be denied based on the numbers assigned to information
requirement was satisfied. results of a verification. This section collections of CBP by the Office of
also prescribes the information required Management and Budget, pursuant to
Tariff Preference Level the Paperwork Reduction Act of 1995,
to be included in the determination.
Section 10.818 sets forth the Public Law 104–13. The list contained
procedures for claiming BFTA tariff Penalties in § 178.2 is amended to add the
benefits for non-originating fabric, Section 10.826 concerns the general information collections used by CBP to
apparel, or made-up goods entitled to application of penalties to BFTA determine eligibility for a tariff
preference under an applicable tariff transactions and is based on BFTA preference or other rights or benefits
preference level (‘‘TPL’’). Article 5.9. under the BFTA and the Act.
Section 10.819, which is based on Inapplicability of Notice and Delayed
Articles 3.2.8(a) through 3.2.8(d), Goods Returned After Repair or
Alteration Effective Date Requirements
describes the non-originating fabric,
apparel, and made-up goods that are Section 10.827 implements BFTA Under section 553 of the
eligible for TPL claims under the BFTA. Article 2.6 regarding duty treatment of Administrative Procedure Act (‘‘APA’’)
Section 10.820 is based on Article goods re-entered after repair or (5 U.S.C. 553), agencies amending their
3.2.10 of the BFTA and establishes that, alteration in Bahrain. regulations generally are required to
at the written request of the Government publish a notice of proposed rulemaking
of Bahrain, CBP will require an importer Part 24 in the Federal Register that solicits
claiming preferential treatment on a A paragraph is added to § 24.23(c), public comment on the proposed
non-originating cotton or man-made which concerns the merchandise amendments, consider public comments
fiber good specified in § 10.819 to processing fee (MPF) to implement in deciding on the final content of the
submit a certificate of eligibility. § 203 of the Act, providing that the MPF final amendments, and publish the final
Section 10.821 reflects Article 3.2.11 is not applicable to goods that qualify as amendments at least 30 days prior to
of the BFTA. Paragraph (a) of § 10.821 originating goods as provided for under their effective date. However, section
provides that an importer claiming § 202 of the Act. 553(a)(1) of the APA provides that the
preferential treatment on a non- standard prior notice and comment
originating cotton or man-made fiber Part 102 procedures do not apply to an agency
good specified in § 10.819 must submit, Part 102 contains regulations rulemaking that involves the foreign
at the request of the port director, a regarding the rules for determining the affairs function of the United States.
declaration setting forth all pertinent country of origin of imported goods for CBP has determined that these interim
production information. Paragraph (b) of various purposes. Section 102.0, which regulations involve a foreign affairs
§ 10.821 requires that an importer must sets forth the scope of Part 102, is function of the United States, as they
retain all records relied upon to prepare amended to notify readers that the rules implement preferential tariff treatment
the declaration for a period of five years. of §§ 102.1 through 102.21 will be used and related provisions of the BFTA.
Section 10.822 establishes that non- for purposes of determining whether a Therefore, the rulemaking requirements
originating fabric or apparel goods are good is considered a new and different under the APA do not apply and this
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entitled to preferential tariff treatment article of commerce under the BFTA. interim rule will be effective upon
under an applicable TPL only if they are publication. However, CBP is soliciting
imported directly from the territory of a Part 162 comments in this interim rule and will
Party into the territory of the other Part 162 contains regulations consider all comments it receives before
Party. regarding the inspection and issuing a final rule.

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Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations 58515

Executive Order 12866 and Regulatory Treasury, Office of Information and United States), 1321, 1481, 1484, 1498, 1508,
Flexibility Act Regulatory Affairs, Washington, DC 1623, 1624, 3314;
CBP has determined that this 20503. A copy should also be sent to the * * * * *
document is not a regulation or rule Trade and Commercial Regulations Sections 10.801 through 10.829 also
subject to the provisions of Executive Branch, Regulations and Rulings, U.S. issued under 19 U.S.C. 1202 (General
Order 12866 of September 30, 1993 (58 Customs and Border Protection, 1300 Note 30, HTSUS) and Pub. L. 109–169,
FR 51735, October 1993), because it Pennsylvania Avenue, NW. (Mint 119 Stat. 3581 (19 U.S.C. 3805 note).
pertains to a foreign affairs function of Annex), Washington, DC 20229.
■ 2. In § 10.31, paragraph (f), the last
the United States and implements an Signing Authority sentence is revised to read as follows:
international agreement, as described
above, and therefore is specifically This document is being issued in
§ 10.31 Entry; bond.
exempted by section 3(d)(2) of accordance with § 0.1(a)(1) of the CBP
Regulations (19 CFR 0.1(a)(1)) * * * * *
Executive Order 12866. Because a notice
of proposed rulemaking is not required pertaining to the authority of the (f) * * * In addition, notwithstanding
under section 553(b) of the APA for the Secretary of the Treasury (or his/her any other provision of this paragraph, in
reasons described above, CBP notes that delegate) to approve regulations related the case of professional equipment
the provisions of the Regulatory to certain customs revenue functions. necessary for carrying out the business
Flexibility Act, as amended (5 U.S.C. List of Subjects activity, trade or profession of a
601 et seq.), do not apply to this business person, equipment for the
rulemaking. Accordingly, CBP also 19 CFR Part 10 press or for sound or television
notes that this interim rule is not subject Alterations, Bonds, Customs duties broadcasting, cinematographic
to the regulatory analysis requirements and inspection, Exports, Imports, equipment, articles imported for sports
or other requirements of 5 U.S.C. 603 Preference programs, Repairs, Reporting purposes and articles intended for
and 604. and recordkeeping requirements, Trade display or demonstration, if brought
agreements. into the United States by a resident of
Paperwork Reduction Act Canada, Mexico, Chile, Singapore,
These regulations are being issued 19 CFR Part 24 Morocco, or Bahrain and entered under
without prior notice and public Financial and accounting procedures. Chapter 98, Subchapter XIII, HTSUS, no
procedure pursuant to the bond or other security will be required
Administrative Procedure Act (5 U.S.C. 19 CFR Part 102 if the entered article is a good
553). For this reason, the collections of Customs duties and inspections, originating, within the meaning of
information contained in these Imports, Reporting and recordkeeping General Notes 12, 25, 26, 27 and 30,
regulations have been reviewed and, requirements, Rules of origin, Trade HTSUS, in the country of which the
pending receipt and evaluation of agreements. importer is a resident.
public comments, approved by the * * * * *
Office of Management and Budget in 19 CFR Part 162
■ 3. Part 10, CBP regulations, is
accordance with the requirements of the Administrative practice and amended by adding Subpart N to read
Paperwork Reduction Act (44 U.S.C. procedure, Customs duties and as follows:
3507) under control number 1651–0130. inspection, Penalties, Trade agreements.
The collections of information in Subpart N—United States-Bahrain Free
these regulations are in §§ 10.803, 19 CFR Part 163 Trade Agreement
10.804, 10.818, and 10.821. This Administrative practice and General Provisions
information is required in connection procedure, Customs duties and Sec.
with claims for preferential tariff inspection, Export, Import, Reporting 10.801 Scope.
treatment and for the purpose of the and recordkeeping requirements, Trade 10.802 General definitions.
exercise of other rights under the BFTA agreements.
and the Act and will be used by CBP to Import Requirements
determine eligibility for a tariff 19 CFR Part 178 10.803 Filing of claim for preferential tariff
preference or other rights or benefits Administrative practice and treatment upon importation.
under the BFTA and the Act. The likely procedure, Exports, Imports, Reporting 10.804 Declaration.
respondents are business organizations and recordkeeping requirements. 10.805 Importer obligations.
including importers, exporters and 10.806 Declaration not required.
manufacturers. Amendments to the CBP Regulations 10.807 Maintenance of records.
10.808 Effect of noncompliance; failure to
Estimated total annual reporting ■ Accordingly, chapter I of title 19, provide documentation regarding
burden: 100 hours. Code of Federal Regulations (19 CFR transshipment.
Estimated average annual burden per chapter I), is amended as set forth
respondent: 12 minutes. Rules of Origin
below.
Estimated number of respondents: 10.809 Definitions.
500. PART 10—ARTICLES CONDITIONALLY 10.810 Originating goods.
Estimated annual frequency of FREE, SUBJECT TO A REDUCED 10.811 Textile or apparel goods.
responses: 1. 10.812 Accumulation.
RATE, ETC.
Comments concerning the collections 10.813 Value of materials.
■ 1. The general authority citation for 10.814 Direct costs of processing
of information and the accuracy of the
Part 10 continues to read, and the operations.
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estimated annual burden, and 10.815 Packaging and packing materials


suggestions for reducing that burden, specific authority for new Subpart N is
and containers for retail sale and for
should be directed to the Office of added to read as follows: shipment.
Management and Budget, Attention: Authority: 19 U.S.C. 66, 1202 (General 10.816 Indirect materials.
Desk Officer for the Department of the Note 3(i), Harmonized Tariff Schedule of the 10.817 Imported directly.

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Tariff Preference Level the Agreement on Implementation of (p) Preferential tariff treatment.
10.818 Filing of claim for tariff preference Article VII of the General Agreement on ‘‘Preferential tariff treatment’’ means the
level. Tariffs and Trade 1994, which is part of duty rate applicable under the BFTA to
10.819 Goods eligible for tariff preference the WTO Agreement; an originating good and an exemption
claims. (d) Customs duty. ‘‘Customs duty’’ from the merchandise processing fee;
10.820 Certificate of eligibility. includes any customs or import duty (q) Subheading. ‘‘Subheading’’ means
10.821 Declaration. and a charge of any kind imposed in the first six digits in the tariff
10.822 Transshipment of non-originating
connection with the importation of a classification number under the
fabric or apparel goods.
10.823 Effect of non-compliance; failure to good, including any form of surtax or Harmonized System;
provide documentation regarding surcharge in connection with such (r) Textile or apparel good. ‘‘Textile or
transshipment of non-originating fabric importation, but does not include any: apparel good’’ means a good listed in
or apparel goods. (1) Charge equivalent to an internal the Annex to the Agreement on Textiles
tax imposed consistently with Article and Clothing (commonly referred to as
Origin Verifications and Determinations
III:2 of the GATT 1994; in respect of ‘‘the ATC’’), which is part of the WTO
10.824 Verification and justification of like, directly competitive, or Agreement;
claim for preferential treatment. substitutable goods of the Party, or in
10.825 Issuance of negative origin (s) Territory. ‘‘Territory’’ means:
determinations.
respect of goods from which the (1) With respect to Bahrain, the
imported good has been manufactured territory of Bahrain as well as the
Penalties or produced in whole or in part; maritime areas, seabed, and subsoil over
10.826 Violations relating to the BFTA. (2) Antidumping or countervailing which Bahrain exercises, in accordance
duty; and with international law, sovereignty,
Goods Returned After Repair or Alteration
(3) Fee or other charge in connection sovereign rights, and jurisdiction; and
10.827 Goods re-entered after repair or with importation commensurate with
alteration in Bahrain. (2) With respect to the United States,
the cost of services rendered; (i) The customs territory of the United
(e) Days. ‘‘Days’’ means calendar days; States, which includes the 50 states, the
Subpart N—United States-Bahrain Free (f) Enterprise. ‘‘Enterprise’’ means any
Trade Agreement District of Columbia, and Puerto Rico,
entity constituted or organized under
(ii) The foreign trade zones located in
General Provisions applicable law, whether or not for
the United States and Puerto Rico, and
profit, and whether privately-owned or
§ 10.801 Scope. (iii) Any areas beyond the territorial
governmentally-owned, including any
This subpart implements the duty seas of the United States within which,
corporation, trust, partnership, sole
preference and related customs in accordance with international law
proprietorship, joint venture, or other
provisions applicable to imported goods and its domestic law, the United States
association;
under the United States-Bahrain Free (g) Foreign material. ‘‘Foreign may exercise rights with respect to the
Trade Agreement (the BFTA) signed on material’’ means a material other than a seabed and subsoil and their natural
September 14, 2004, and under the material produced in the territory of one resources; and
United States-Bahrain Free Trade or both of the Parties; (t) WTO Agreement. ‘‘WTO
Agreement Implementation Act (the (h) GATT 1994. ‘‘GATT 1994’’ means Agreement’’ means the Marrakesh
Act; 119 Stat. 3581). Except as otherwise the General Agreement on Tariffs and Agreement Establishing the World Trade
specified in this subpart, the procedures Trade 1994, which is part of the WTO Organization of April 15, 1994.
and other requirements set forth in this Agreement; Import Requirements
subpart are in addition to the customs (i) Good. ‘‘Good’’ means any
procedures and requirements of general merchandise, product, article, or § 10.803 Filing of claim for preferential
application contained elsewhere in this material; tariff treatment upon importation.
chapter. Additional provisions (j) Harmonized System. ‘‘Harmonized An importer may make a claim for
implementing certain aspects of the System (HS)’’ means the Harmonized BFTA preferential tariff treatment for an
BFTA and the Act are contained in Parts Commodity Description and Coding originating good by including on the
24, 102, 162, and 163 of this chapter. System, including its General Rules of entry summary, or equivalent
Interpretation, Section Notes, and documentation, the symbol ‘‘BH’’ as a
§ 10.802 General definitions. Chapter Notes, as adopted and prefix to the subheading of the HTSUS
As used in this subpart, the following implemented by the Parties in their under which each qualifying good is
terms will have the meanings indicated respective tariff laws; classified, or by the method specified
unless either the context in which they (k) Heading. ‘‘Heading’’ means the for equivalent reporting via an
are used requires a different meaning or first four digits in the tariff classification authorized electronic data interchange
a different definition is prescribed for a number under the Harmonized System; system.
particular section of this subpart: (l) HTSUS. ‘‘HTSUS’’ means the
(a) Claim of origin. ‘‘Claim of origin’’ Harmonized Tariff Schedule of the § 10.804 Declaration.
means a claim that a good is an United States as promulgated by the (a) Contents. An importer who claims
originating good or a good of a Party; U.S. International Trade Commission; preferential tariff treatment for a good
(b) Claim for preferential tariff (m) Originating. ‘‘Originating’’ means under the BFTA must submit to CBP, at
treatment. ‘‘Claim for preferential tariff a good qualifying under the rules of the request of the port director, a
treatment’’ means a claim that a good is origin set forth in General Note 30, declaration setting forth all pertinent
entitled to the duty rate applicable HTSUS, and BFTA Chapter Three information concerning the growth,
under the BFTA to an originating good (Textiles and apparel) or Chapter Four production, or manufacture of the good.
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or other good specified in the BFTA, (Rules of Origin); A declaration submitted to CBP under
and to an exemption from the (n) Party. ‘‘Party’’ means the United this paragraph:
merchandise processing fee; States or the Kingdom of Bahrain; (1) Need not be in a prescribed format
(c) Customs Valuation Agreement. (o) Person. ‘‘Person’’ means a natural but must be in writing or must be
‘‘Customs Valuation Agreement’’ means person or an enterprise; transmitted electronically pursuant to

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any electronic means authorized by CBP The goods comply with all the (2) A commercial importation for
for that purpose; requirements for preferential tariff treatment which the value of the originating goods
(2) Must include the following specified for those goods in the United does not exceed U.S. $2,500.
information: States-Bahrain Free Trade Agreement; and (b) Exception. If the port director
(i) The legal name, address, This document consists of lll pages,
including all attachments.’’
determines that an importation
telephone, and e-mail address (if any) of described in paragraph (a) of this
the importer of record of the good; (b) Responsible official or agent. The section may reasonably be considered to
(ii) The legal name, address, declaration must be signed and dated by have been carried out or planned for the
telephone, and e-mail address (if any) of a responsible official of the importer or purpose of evading compliance with the
the responsible official or authorized by the importer’s authorized agent rules and procedures governing claims
agent of the importer signing the having knowledge of the relevant facts. for preference under the BFTA, the port
declaration (if different from the (c) Language. The declaration must be director will notify the importer that for
information required by paragraph completed in the English language. that importation the importer must
(a)(2)(i) of this section); (d) Applicability of declaration. The submit to CBP a declaration. The
(iii) The legal name, address, declaration may be applicable to: importer must submit such a declaration
telephone and e-mail address (if any) of (1) A single importation of a good into within 30 days from the date of the
the exporter of the good (if different the United States, including a single notice. Failure to timely submit the
from the producer); shipment that results in the filing of one declaration will result in denial of the
(iv) The legal name, address, or more entries and a series of claim for preferential tariff treatment.
telephone and e-mail address (if any) of shipments that results in the filing of
the producer of the good (if known); one entry; or § 10.807 Maintenance of records.
(v) A description of the good, which (2) Multiple importations of identical (a) General. An importer claiming
must be sufficiently detailed to relate it goods into the United States that occur preferential tariff treatment for a good
to the invoice and HS nomenclature, within a specified blanket period, not under § 10.803 of this subpart must
including quantity, numbers, invoice exceeding 12 months, set out in the maintain, for five years after the date of
numbers, and bills of lading; declaration. For purposes of this the claim for preferential tariff
(vi) A description of the operations paragraph, ‘‘identical goods’’ means treatment, all records and documents
performed in the growth, production, or goods that are the same in all respects necessary for the preparation of the
manufacture of the good in territory of relevant to the production that qualifies declaration.
one or both of the Parties and, where the goods for preferential tariff (b) Applicability of other
applicable, identification of the direct treatment. recordkeeping requirements. The
costs of processing operations; records and documents referred to in
(vii) A description of any materials § 10.805 Importer obligations. paragraph (a) of this section are in
used in the growth, production, or (a) General. An importer who makes addition to any other records required to
manufacture of the good that are wholly a claim for preferential tariff treatment be made, kept, and made available to
the growth, product, or manufacture of under § 10.803 of this subpart: CBP under Part 163 of this chapter.
one or both of the Parties, and a (1) Will be deemed to have certified (c) Method of maintenance. The
statement as to the value of such that the good is eligible for preferential records and documents referred to in
materials; tariff treatment under the BFTA: paragraph (a) of this section must be
(viii) A description of the operations (2) Is responsible for the truthfulness maintained by importers as provided in
performed on, and a statement as to the of the information and data contained in § 163.5 of this chapter.
origin and value of, any materials used the declaration provided for in § 10.804
in the article that are claimed to have of this subpart; and § 10.808 Effect of noncompliance; failure
been sufficiently processed in the (3) Is responsible for submitting any to provide documentation regarding
territory of one or both of the Parties so supporting documents requested by CBP transshipment.
as to be materials produced in one or and for the truthfulness of the (a) General. If the importer fails to
both of the Parties, or are claimed to information contained in those comply with any requirement under this
have undergone an applicable change in documents. CBP will allow for the subpart, including submission of a
tariff classification specified in General direct submission by the exporter or complete declaration under § 10.804 of
Note 30(h), HTSUS; and producer of business confidential or this subpart, when requested, the port
(ix) A description of the origin and other sensitive information, including director may deny preferential tariff
value of any foreign materials used in cost and sourcing information. treatment to the imported good.
the good that have not been (b) Information provided by exporter (b) Failure to provide documentation
substantially transformed in the or producer. The fact that the importer regarding transshipment. Where the
territory of one or both of the Parties, or has made a claim for preferential tariff requirements for preferential tariff
have not undergone an applicable treatment or prepared a declaration treatment set forth elsewhere in this
change in tariff classification specified based on information provided by an subpart are met, the port director
in General Note 30(h), HTSUS; exporter or producer will not relieve the nevertheless may deny preferential
(3) Must include a statement, in importer of the responsibility referred to treatment to a good if the good is
substantially the following form: in paragraph (a) of this section. shipped through or transshipped in the
‘‘I certify that: territory of a country other than a Party,
The information on this document is true § 10.806 Declaration not required. and the importer of the good does not
and accurate and I assume the responsibility (a) General. Except as otherwise provide, at the request of the port
for proving such representations. I provided in paragraph (b) of this director, evidence demonstrating to the
understand that I am liable for any false
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section, an importer will not be required satisfaction of the port director that the
statements or material omissions made on or
in connection with this document; to submit a declaration under § 10.804 good was imported directly from the
I agree to maintain and present upon of this subpart for: territory of a Party into the territory of
request, documentation necessary to support (1) A non-commercial importation of the other Party (see § 10.817 of this
these representations; a good; or subpart).

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Rules of Origin utilized in the territory of that Party in (j) Non-originating material. ‘‘Non-
the production of remanufactured originating material’’ means a material
§ 10.809 Definitions.
goods; and that does not qualify as originating
For purposes of §§ 10.809 through (12) Goods produced in the territory under this subpart or General Note 30,
10.817: of one or both of the Parties exclusively HTSUS;
(a) Exporter. ‘‘Exporter’’ means a from goods referred to in paragraphs (k) Packing materials and containers
person who exports goods from the (d)(1) through (d)(10) of this section, or for shipment. ‘‘Packing materials and
territory of a Party; from their derivatives, at any stage of containers for shipment’’ means the
(b) Generally Accepted Accounting goods used to protect a good during its
production;
Principles. ‘‘Generally Accepted transportation to the United States, and
(e) Importer. Importer means a person
Accounting Principles’’ means the
who imports goods into the territory of does not include the packaging
recognized consensus or substantial
a Party; materials and containers in which a
authoritative support in the territory of
(f) Indirect material. ‘‘Indirect good is packaged for retail sale;
a Party, with respect to the recording of (l) Recovered goods. ‘‘Recovered
revenues, expenses, costs, assets, and material’’ means a good used in the
growth, production, manufacture, goods’’ means materials in the form of
liabilities, the disclosure of information,
testing, or inspection of a good but not individual parts that result from:
and the preparation of financial (1) The complete disassembly of used
statements. These standards may physically incorporated into the good,
or a good used in the maintenance of goods into individual parts; and
encompass broad guidelines of general (2) The cleaning, inspecting, testing,
application as well as detailed buildings or the operation of equipment
associated with the growth, production, or other processing of those parts as
standards, practices, and procedures; necessary for improvement to sound
(c) Good. ‘‘Good’’ means any or manufacture of a good, including:
(1) Fuel and energy; working condition;
merchandise, product, article, or (m) Remanufactured good.
material; (2) Tools, dies, and molds;
(3) Spare parts and materials used in ‘‘Remanufactured good’’ means an
(d) Goods wholly the growth, product,
the maintenance of equipment and industrial good that is assembled in the
or manufacture of one or both of the
buildings; territory of a Party and that:
Parties. ‘‘Goods wholly the growth,
(4) Lubricants, greases, compounding (1) Is entirely or partially comprised
product, or manufacture of one or both
materials, and other materials used in of recovered goods;
of the Parties’’ means: (2) Has a similar life expectancy to,
(1) Mineral goods extracted in the the growth, production, or manufacture
and meets the same performance
territory of one or both of the Parties; of a good or used to operate equipment
(2) Vegetable goods, as such goods are standards as, a like good that is new;
and buildings;
defined in the HTSUS, harvested in the and
(5) Gloves, glasses, footwear, clothing,
(3) Enjoys the factory warranty similar
territory of one or both of the Parties; safety equipment, and supplies;
(3) Live animals born and raised in to that of a like good that is new;
(6) Equipment, devices, and supplies (n) Simple combining or packaging
the territory of one or both of the used for testing or inspecting the good;
Parties; operations. ‘‘Simple combining or
(7) Catalysts and solvents; and packaging operations’’ means operations
(4) Goods obtained from live animals (8) Any other goods that are not
raised in the territory of one or both of such as adding batteries to electronic
incorporated into the good but the use devices, fitting together a small number
the Parties; of which in the growth, production, or
(5) Goods obtained from hunting, of components by bolting, gluing, or
manufacture of the good can reasonably soldering, or packing or repacking
trapping, or fishing in the territory of be demonstrated to be a part of that
one or both of the parties; components together.
growth, production, or manufacture;
(6) Goods (fish, shellfish, and other (g) Material. ‘‘Material’’ means a good, § 10.810 Originating goods.
marine life) taken from the sea by including a part or ingredient, that is
vessels registered or recorded with a (a) General. A good will be considered
used in the growth, production, or an originating good under the BFTA
party and flying its flag; manufacture of another good that is a
(7) Goods produced from goods when imported directly from the
new or different article of commerce territory of a Party into the territory of
referred to in paragraph (d)(5) of this
that has been grown, produced, or the other Party only if:
section on board factory ships registered
manufactured in one or both of the (1) The good is wholly the growth,
or recorded with that Party and flying
Parties; product, or manufacture of one or both
its flag;
(8) Goods taken by a Party or a person (h) Material produced in the territory of the Parties;
of a Party from the seabed or beneath of one or both of the Parties. ‘‘Material (2) The good is a new or different
the seabed outside territorial waters, produced in the territory of one or both article of commerce, as defined in
provided that a Party has rights to of the Parties’’ means a good that is § 10.809(i) of this subpart, that has been
exploit such seabed; either wholly the growth, product, or grown, produced, or manufactured in
(9) Goods taken from outer space, manufacture of one or both of the the territory of one or both of the
provided they are obtained by a Party or Parties, or a new or different article of Parties, is provided for in a heading or
a person of a Party and not processed in commerce that has been grown, subheading of the HTSUS that is not
the territory of a non-Party; produced, or manufactured in the covered by the product-specific rules set
(10) Waste and scrap derived from: territory of one or both of the Parties; forth in General Note 30(h), HTSUS, and
(i) Production or manufacture in the (i) New or different article of meets the value-content requirement
territory of one or both of the Parties, or commerce. A ‘‘new or different article of specified in paragraph (b) of this
(ii) Used goods collected in the commerce’’ exists when the country of section; or
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territory of one or both of the Parties, origin of a good which is produced in (3) The good is provided for in a
provided such goods are fit only for the a Party from foreign materials is heading or subheading of the HTSUS
recovery of raw materials; determined to be that country under the covered by the product-specific rules set
(11) Recovered goods derived in the provisions of §§ 102.1 through 102.21 of forth in General Note 30(h), HTSUS,
territory of a Party from used goods, and this chapter; and:

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(i)(A) Each of the non-originating under the BFTA unless each of the § 10.814 Direct costs of processing
materials used in the production of the goods in the set is an originating good operations.
good undergoes an applicable change in or the total value of the non-originating (a) Items included. For purposes of
tariff classification specified in General goods in the set does not exceed ten § 10.810(b) of this subpart, the words
Note 30(h), HTSUS, as a result of percent of the appraised value of the set. ‘‘direct costs of processing operations’’,
production occurring entirely in the with respect to a good, mean those costs
territory of one or both of the Parties; or § 10.812 Accumulation.
either directly incurred in, or that can
(B) The good otherwise satisfies the (a) An originating good or material be reasonably allocated to, the growth,
requirements specified in General Note produced in the territory of one or both production, or manufacture of the good
30(h), HTSUS; and of the Parties that is incorporated into in the territory of one or both of the
(ii) The good meets any other a good in the territory of the other Party Parties. Such costs include, to the extent
requirements specified in General Note will be considered to originate in the they are includable in the appraised
30, HTSUS. territory of the other Party. value of the good when imported into a
(b) Value-content requirement. A good (b) A good that is grown, produced, or Party, the following:
described in paragraph (a)(2) of this manufactured in the territory of one or
section will be considered an (1) All actual labor costs involved in
both of the Parties by one or more the growth, production, or manufacture
originating good under the BFTA only if producers is an originating good if the
the sum of the value of materials of the specific good, including fringe
good satisfies the requirements of benefits, on-the-job training, and the
produced in one or both of the Parties, § 10.810 of this subpart and all other
plus the direct costs of processing costs of engineering, supervisory,
applicable requirements of General Note quality control, and similar personnel;
operations performed in one or both of 30, HTSUS.
the Parties, is not less than 35 percent (2) Tools, dies, molds, and other
of the appraised value of the good at the § 10.813 Value of materials. indirect materials, and depreciation on
time the good is entered into the machinery and equipment that are
(a) General. For purposes of allocable to the specific good;
territory of the United States. § 10.810(b) of this subpart and, except as
(c) Combining, packaging, and provided in paragraph (b) of this (3) Research, development, design,
diluting operations. For purposes of this section, the value of a material engineering, and blueprint costs, to the
subpart, a good will not be considered produced in the territory of one or both extent that they are allocable to the
a new or different article of commerce of the Parties includes the following: specific good;
by virtue of having undergone simple (4) Costs of inspecting and testing the
(1) The price actually paid or payable
combining or packaging operations, or specific good; and
for the material by the producer of the
mere dilution with water or another (5) Costs of packaging the specific
good;
substance that does not materially alter good for export to the territory of the
the characteristics of the good. The (2) The freight, insurance, packing
and all other costs incurred in other Party.
principles and examples set forth in
transporting the material to the (b) Items not included. For purposes
§ 10.195(a)(2) of this part will apply
producer’s plant, if such costs are not of § 10.810(b) of this subpart, the words
equally for purposes of this paragraph.
included in the price referred to in ‘‘direct costs of processing operations’’
§ 10.811 Textile or apparel goods. paragraph (a)(1) of this section; do not include items that are not
(a) De minimis.—(1) General. Except (3) The cost of waste or spoilage directly attributable to the good or are
as provided in paragraph (a)(2) of this resulting from the use of the material in not costs of growth, production, or
section, a textile or apparel good that is the growth, production, or manufacture manufacture of the good. These include,
not an originating good under the BFTA of the good, less the value of recoverable but are not limited to:
because certain fibers or yarns used in scrap; and (1) Profit; and
the production of the component of the (4) Taxes or customs duties imposed (2) General expenses of doing
good that determines the tariff on the material by one or both of the business that are either not allocable to
classification of the good do not Parties, if the taxes or customs duties the good or are not related to the
undergo an applicable change in tariff are not remitted upon exportation from growth, production, or manufacture of
classification set out in General Note the territory of a Party. the good, such as administrative
30(h), HTSUS, will be considered to be (b) Exception. If the relationship salaries, casualty and liability
an originating good if the total weight of between the producer of a good and the insurance, advertising, and salesmen’s
all such fibers is not more than seven seller of a material influenced the price salaries, commissions, or expenses.
percent of the total weight of that actually paid or payable for the material,
component. § 10.815 Packaging and packing materials
or if there is no price actually paid or and containers for retail sale and for
(2) Exception. A textile or apparel
payable by the producer for the shipment.
good containing elastomeric yarns in the
material, the value of the material Packaging materials and containers in
component of the good that determines
produced in the territory of one or both which a good is packaged for retail sale
the tariff classification of the good will
of the Parties includes the following: and packing materials and containers
be considered to be an originating good
only if such yarns are wholly formed in (1) All expenses incurred in the for shipment are to be disregarded in
the territory of a Party. growth, production, or manufacture of determining whether a good qualifies as
(b) Textile or apparel goods put up in the material, including general an originating good under § 10.810 of
sets. Notwithstanding the specific rules expenses; this subpart and General Note 30,
specified in General Note 30(h), HTSUS, (2) A reasonable amount for profit; HTSUS, except to the extent that the
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textile or apparel goods classifiable as and value of such packaging and packing
goods put up in sets for retail sale as (3) The freight, insurance, packing, materials and containers may be
provided for in General Rule of and all other costs incurred in included in meeting the value-content
Interpretation 3, HTSUS, will not be transporting the material to the requirement specified in § 10.810(b) of
considered to be originating goods producer’s plant. this subpart.

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§ 10.816 Indirect materials. Tariff Preference Level shape, or both, and sewn or otherwise
Indirect materials are to be assembled in the territory of Bahrain
§ 10.818 Filing of claim for tariff preference from fabric or yarn produced or
disregarded in determining whether a level.
good qualifies as an originating good obtained outside the territory of Bahrain
A fabric, apparel, or made-up good or the United States; and
under § 10.810 of this subpart and described in § 10.819 of this subpart that
General Note 30, HTSUS, except that (d) Cotton or man-made fiber made-up
does not qualify as an originating good goods provided for in Chapter 63 of the
the cost of such indirect materials may under § 10.810 of this subpart may
be included in meeting the value- HTSUS that are cut or knit to shape, or
nevertheless be entitled to preferential both, and sewn or otherwise assembled
content requirement specified in tariff treatment under the BFTA under in the territory of Bahrain from fabric
§ 10.810(b) of this subpart. an applicable tariff preference level wholly formed in Bahrain or the United
§ 10.817 Imported directly. (TPL). To make a TPL claim, the States from yarn produced or obtained
importer must include on the entry outside the territory of Bahrain or the
(a) General. To qualify as an summary, or equivalent documentation, United States.
originating good under the BFTA, a the applicable subheading in Chapter 99
good must be imported directly from the of the HTSUS (9914.99.20) immediately § 10.820 Certificate of eligibility.
territory of a Party into the territory of above the applicable subheading in Upon request, an importer claiming
the other Party. For purposes of this Chapter 52 through Chapter 63 of the preferential tariff treatment on a non-
subpart, the words ‘‘imported directly’’ HTSUS under which each non- originating cotton or man-made fiber
mean: originating fabric or apparel good is good specified in § 10.819 of this
(1) Direct shipment from the territory classified. subpart must submit to CBP a certificate
of a Party into the territory of the other of eligibility. The certificate of eligibility
Party without passing through the § 10.819 Goods eligible for tariff must be completed and signed by an
territory of a non-Party; or preference claims. authorized official of the Government of
(2) If the shipment passed through the The following goods are eligible for a Bahrain and must be in the possession
territory of a non-Party, the good, upon TPL claim filed under § 10.818 of this of the importer at the time the
arrival in the territory of a Party, will be subpart (subject to the quantitative preferential tariff treatment is claimed.
considered to be ‘‘imported directly’’ limitations set forth in U.S. Note 13,
Subchapter XIV, Chapter 99, HTSUS): § 10.821 Declaration.
only if the good: (a) General. An importer who claims
(a) Cotton or man-made fiber fabric
(i) Remained under the control of the goods provided for in Chapters 52, 54, preferential tariff treatment on a non-
customs authority of the non-Party; and 55, 58, and 60 of the HTSUS that are originating cotton or man-made fiber
(ii) Did not undergo production, wholly formed in the territory of good specified in § 10.819 of this
manufacturing, or any other operation Bahrain from yarn produced or obtained subpart must submit, at the request of
outside the territories of the Parties, outside the territory of Bahrain or the the port director, a declaration
other than unloading, reloading, or any United States; supporting such a claim for preferential
other operation necessary to preserve (b) Cotton or man-made fiber fabric tariff treatment that sets forth all
the good in good condition or to goods provided for in subheadings pertinent information concerning the
transport the good to the territory of a 5801.21, 5801.22, 5801.23, 5801.24, production of the good, including:
Party. Operations that may be performed 5801.25, 5801.26, 5801.31, 5801.32, (1) A description of the good,
outside the territories of the Parties 5801.33, 5801.34, 5801.35, 5801.36, quantity, invoice numbers, and bills of
include inspection, removal of dust that 5802.11, 5802.19, 5802.20, 5802.30, lading;
accumulates during shipment, 5803.10, 5803.90.30, 5804.10.10, (2) A description of the operations
ventilation, spreading out or drying, 5804.21, 5804.29.10, 5804.30, performed in the production of the good
chilling, replacing salt, sulfur dioxide, 5805.00.30, 5805.00.40, 5806.10.10, in the territory of one or both of the
or aqueous solutions, replacing 5806.10.24, 5806.10.28, 5806.20, Parties;
damaged packing materials and 5806.31, 5806.32, 5807.10.05, (3) A reference to the specific
containers, and removal of units of the 5807.10.20, 5807.90.05, 5807.90.20, provision in § 10.819 of this subpart that
good that are spoiled or damaged and 5808.10.40, 5808.10.70, 5808.90, forms the basis for the claim for
present a danger to the remaining units 5809.00, 5810.10, 5810.91, 5810.92, preferential tariff treatment; and
of the good, or to transport the good to (4) A statement as to any fiber, yarn,
5811.00.20, 5811.00.30, 6001.10,
the territory of a Party. or fabric of a non-Party and the origin
6001.21, 6001.22, 6001.91, 6001.92,
(b) Documentary evidence. An of such materials used in the production
6002.40, 6002.90, 6003.20, 6003.30,
importer making a claim for preferential of the good.
6003.40, 6004.10, 6004.90, 6005.21, (b) Retention of records. An importer
tariff treatment under the BFTA for an 6005.22, 6005.23, 6005.24, 6005.31, must retain all documents relied upon
originating good may be required to 6005.32, 6005.33, 6005.34, 6005.41, to prepare the declaration for a period
demonstrate, to CBP’s satisfaction, that 6005.42, 6005.43, 6005.44, 6006.21, of five years.
the good was ‘‘imported directly’’ from 6006.22, 6006.23, 6006.24, 6006.31,
the territory of a Party into the territory 6006.32, 6006.33, 6006.34, 6006.41, § 10.822 Transshipment of non-originating
of the other Party, as that term is 6006.42, 6006.43, and 6006.44 of the fabric or apparel goods.
defined in paragraph (a) of this section. HTSUS that are wholly formed in the (a) General. To qualify for preferential
An importer may demonstrate territory of Bahrain from yarn spun in tariff treatment under an applicable
compliance with this section by the territory of Bahrain or the United TPL, a good must be imported directly
submitting documentary evidence. Such States from fiber produced or obtained from the territory of a Party into the
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evidence may include, but is not limited outside the territory of Bahrain or the territory of the other Party. For purposes
to, bills of lading, airway bills, packing United States; of this subpart, the words ‘‘imported
lists, commercial invoices, receiving (c) Cotton or man-made fiber apparel directly’’ mean:
and inventory records, and customs goods provided for in Chapters 61 or 62 (1) Direct shipment from the territory
entry and exit documents. of the HTSUS that are cut or knit to of a Party into the territory of the other

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Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations 58521

Party without passing through the demonstrating to the satisfaction of the Goods Returned After Repair or
territory of a non-Party; or port director that the requirements set Alteration
(2) If the shipment passed through the forth in § 10.822 of this subpart were
territory of a non-Party, the good, upon § 10.827 Goods re-entered after repair or
met. alteration in Bahrain.
arrival in the territory of a Party, will be
considered to be ‘‘imported directly’’ Origin Verifications and (a) General. This section sets forth the
only if the good: Determinations rules that apply for purposes of
(i) Remained under the control of the obtaining duty-free treatment on goods
§ 10.824 Verification and justification of returned after repair or alteration in
customs authority of the non-Party; and claim for preferential treatment.
(ii) Did not undergo production, Bahrain as provided for in subheadings
manufacturing, or any other operation (a) Verification. A claim for 9802.00.40 and 9802.00.50, HTSUS.
outside the territories of the Parties, preferential treatment made under Goods returned after having been
other than unloading, reloading, or any § 10.803 of this subpart, including any repaired or altered in Bahrain, whether
other operation necessary to preserve it declaration or other information or not pursuant to a warranty, are
in good condition or to transport the submitted to CBP in support of the eligible for duty-free treatment,
good to the territory of a Party. claim, will be subject to such provided that the requirements of this
Operations that may be performed verification as the port director deems section are met. For purposes of this
outside the territories of the Parties necessary. In the event that the port section, ‘‘repairs or alterations’’ means
include inspection, removal of dust that director is provided with insufficient restoration, addition, renovation, re-
accumulates during shipment, information to verify or substantiate the dyeing, cleaning, re-sterilizing, or other
ventilation, spreading out or drying, claim, the port director may deny the treatment which does not destroy the
chilling, replacing salt, sulfur dioxide, claim for preferential treatment. essential characteristics of, or create a
or other aqueous solutions, replacing new or commercially different good
(b) Applicable accounting principles. from, the good exported from the United
damaged packing materials and When conducting a verification of origin States.
containers, and removal of units of the to which Generally Accepted (b) Goods not eligible for treatment.
good that are spoiled or damaged and Accounting Principles may be relevant, The duty-free treatment referred to in
present a danger to the remaining units CBP will apply and accept the Generally paragraph (a) of this section will not
of the good, or to transport the good to Accepted Accounting Principles apply to goods which, in their condition
the territory of a Party. applicable in the country of production. as exported from the United States to
(b) Documentary evidence. An
Bahrain, are incomplete for their
importer making a claim for preferential § 10.825 Issuance of negative origin intended use and for which the
tariff treatment under an applicable TPL determinations.
processing operation performed in
may be required to demonstrate, to
If, as a result of an origin verification Bahrain constitutes an operation that is
CBP’s satisfaction, that the good was
initiated under this subpart, CBP performed as a matter of course in the
‘‘imported directly’’ from the territory of
determines that a claim for preferential preparation or manufacture of finished
a Party into the territory of the other
tariff treatment made under § 10.803 of goods.
Party, as that terms is defined in (c) Documentation. The provisions of
paragraph (a) of this section. An this subpart should be denied, it will
issue a determination in writing or via paragraphs (a), (b), and (c) of § 10.8 of
importer may demonstrate compliance this part, relating to the documentary
with this section by submitting an authorized electronic data
interchange system to the importer that requirements for goods entered under
documentary evidence. Such evidence subheading 9802.00.40 or 9802.00.50,
may include, but is not limited to, bills sets forth the following:
HTSUS, will apply in connection with
of lading, airway bills, packing lists, (a) A description of the good that was
the entry of goods which are returned
commercial invoices, receiving and the subject of the verification together
from Bahrain after having been exported
inventory records, and customs entry with the identifying numbers and dates
for repairs or alterations and which are
and exit documents. of the export and import documents
claimed to be duty free.
pertaining to the good;
§ 10.823 Effect of non-compliance; failure
to provide documentation regarding (b) A statement setting forth the PART 24—CUSTOMS FINANCIAL AND
transshipment of non-originating fabric or findings of fact made in connection with ACCOUNTING PROCEDURE
apparel goods. the verification and upon which the
determination is based; and ■ 4. The general authority citation for
(a) General. If an importer of a good
Part 24 and the specific authority for
for which a TPL claim is made fails to (c) With specific reference to the rules § 24.23 continue to read as follows:
comply with any applicable applicable to originating goods as set
requirement under this subpart, the port Authority: 5 U.S.C. 301; 19 U.S.C. 58a–58c,
forth in General Note 30, HTSUS, and
director may deny preferential tariff 66, 1202 (General Note 3(i), Harmonized
in §§ 10.809 through 10.817 of this Tariff Schedule of the United States) 1505,
treatment to the imported good. subpart, the legal basis for the 1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C.
(b) Failure to provide documentation determination. 9701; Public Law. 107–296, 116 Stat. 2135 (6
regarding transshipment. Where the U.S.C. 1 et seq.).
requirements for preferential tariff Penalties
* * * * *
treatment set forth elsewhere in this Section 24.23 also issued under 19 U.S.C.
§ 10.826 Violations relating to the BFTA.
subpart are met, the port director 3332;
nevertheless may deny preferential tariff All criminal, civil, or administrative * * * * *
treatment to a good for which a TPL penalties which may be imposed on ■ 5. Section 24.23 is amended by adding
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claim is made if the good is shipped U.S. importers for violations of the a new paragraph (c)(8) to read as
through or transshipped in a country customs and related laws and follows:
other than a Party, and the importer of regulations will also apply to U.S.
the good does not provide, at the request importers for violations of the laws and § 24.23 Fees for processing merchandise.
of the port director, evidence regulations relating to the BFTA. * * * * *

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58522 Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations

(c) * * * Authority: 5 U.S.C. 301; 19 U.S.C. 66, United States-Bahrain Free Trade
(8) The ad valorem fee, surcharge, and 1592, 1593a, 1624. Agreement (BFTA), including a BFTA
specific fees provided under paragraphs importer’s declaration.
* * * * *
(b)(1) and (b)(2)(i) of this section will ■ 9. Section 162.0 is amended by * * * * *
not apply to goods that qualify as revising the last sentence to read as
originating goods under § 202 of the ■ 12. The Appendix to Part 163 is
follows: amended by adding new listings under
United States-Bahrain Free Trade
Agreement Implementation Act (see also § 162.0 Scope. section IV in numerical order to read as
General Note 30, HTSUS) that are * * * Additional provisions follows:
entered, or withdrawn from warehouse concerning records maintenance and Appendix to Part 163—Interim (a)(1)(A)
for consumption, on or after August 1, examination applicable to U.S. List
2006. importers, exporters and producers
* * * * * under the U.S.-Chile Free Trade * * * * *
Agreement, the U.S.-Singapore Free IV. * * *
PART 102—RULES OF ORIGIN Trade Agreement, the U.S.-Morocco
Free Trade Agreement, and the U.S.- § 10.805 BFTA records that the importer
■ 6. The authority citation for Part 102 may have in support of a BFTA claim for
Bahrain Free Trade Agreement are
is revised to read as follows: preferential tariff treatment, including an
contained in Part 10, Subparts H, I, M, importer’s declaration.
Authority: 19 U.S.C. 66, 1202 (General and N of this chapter, respectively.
Note 3(i), Harmonized Tariff Schedule of the § 10.820 BFTA TPL certificate of eligibility.
United States), 1624, 3314, 3592. PART 163—RECORDKEEPING
■ 7. Section 102.0 is amended by § 10.821 BFTA TPL declaration.
adding, after the second sentence, a new ■ 10. The authority citation for Part 163
sentence to read as follows: * * * * *
continues to read as follows:
§ 102.0 Scope. Authority: 5 U.S.C. 301; 19 U.S.C. 66, PART 178—APPROVAL OF
* * * The rules set forth in §§ 102.1 1484, 1508, 1509, 1510, 1624. INFORMATION COLLECTION
through 102.21 of this Part will also ■ 11. Section 163.1(a)(2) is amended by REQUIREMENTS
apply for purposes of determining redesignating paragraph (a)(2)(x) as
whether an imported good is a new or paragraph (a)(2)(xi) and adding a new ■ 13. The authority citation for Part 178
different article of commerce under paragraph (a)(2)(x) to read as follows: continues to read as follows:
§ 10.809 of the United States-Bahrain Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44
Free Trade Agreement regulations. § 163.1 Definitions.
U.S.C. 3501 et seq.
* * * * * *
(a) Records—* * * ■ 14. Section 178.2 is amended by
PART 162—INSPECTION, SEARCH, (2) Activities * * * adding new listings ‘‘§§ 10.803,10.804,
AND SEIZURE (x) The maintenance of any 10.818, and 10.821’’ to the table in
documentation that the importer may numerical order to read as follows:
■ 8. The authority citation for Part 162 have in support of a claim for
continues to read in part as follows: preferential tariff treatment under the § 178.2 Listing of OMB control numbers.

OMB control
19 CFR section Description No.

* * * * * * *
§§ 10.803,10.804,10.818, and 10.821 ..................... Claim for preferential tariff treatment under the U.S.-Bahrain Free Trade 1651–0130
Agreement.

* * * * * * *

* * * * * DEPARTMENT OF HOMELAND Chicago Harbor on October 15, 2007.


SECURITY This action is necessary to protect
W. Ralph Basham,
vessels and people from the hazards
Commissioner, U.S. Customs and Border Coast Guard associated with fireworks displays. This
Protection. safety zone will temporarily restrict
Approved: October 9, 2007. 33 CFR Part 165 vessel traffic from a portion of Chicago
Timothy E. Skud, Harbor.
[CGD09–07–123]
Deputy Assistant Secretary of the Treasury. DATES: The regulations in 33 CFR
[FR Doc. 07–5062 Filed 10–15–07; 8:45 am] RIN 1625–AA00 165.933 will be enforced from 8 p.m. to
BILLING CODE 9111–14–P
10 p.m. on October 15, 2007.
Safety Zone; Chicago Harbor, Navy FOR FURTHER INFORMATION CONTACT:
Pier East, Chicago, IL CWO Brad Hinken, Prevention
AGENCY: Coast Guard, DHS. Department, Coast Guard Sector Lake
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ACTION: Notice of enforcement of Michigan, Milwaukee, WI at (414) 747–


regulation. 7154.
SUPPLEMENTARY INFORMATION: The Coast
SUMMARY: The Coast Guard will enforce Guard will enforce the Navy Pier East
the Navy Pier East Safety Zone in Safety Zone in Chicago Harbor, Chicago,

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