80_FR_26918 80 FR 26828 - Technical Corrections to the North American Free Trade Agreement Uniform Regulations

80 FR 26828 - Technical Corrections to the North American Free Trade Agreement Uniform Regulations

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

Federal Register Volume 80, Issue 90 (May 11, 2015)

Page Range26828-26830
FR Document2015-11291

This document sets forth amendments to the Customs and Border Protection regulations that implement the preferential tariff treatment and other customs-related provisions of the North American Free Trade Agreement (NAFTA) entered into by the United States, Canada, and Mexico. The amendments reflect technical rectifications to the NAFTA Uniform Regulations agreed upon by the three NAFTA Parties, as well as corrections necessitated by changes to the Harmonized Tariff Schedule of the United States. The conforming amendments are required to maintain the United States' obligations under the NAFTA and to ensure that NAFTA traders operate under a uniform tariff and rules of origin regime. The amendments set forth in this document involve no substantive interpretation of the NAFTA or change in policy.

Federal Register, Volume 80 Issue 90 (Monday, May 11, 2015)
[Federal Register Volume 80, Number 90 (Monday, May 11, 2015)]
[Rules and Regulations]
[Pages 26828-26830]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-11291]


=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

19 CFR Part 181

[CBP Dec. 15-07]
RIN 1515-AE04


Technical Corrections to the North American Free Trade Agreement 
Uniform Regulations

AGENCIES: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document sets forth amendments to the Customs and Border 
Protection regulations that implement the preferential tariff treatment 
and other customs-related provisions of the North American Free Trade 
Agreement (NAFTA) entered into by the United States, Canada, and 
Mexico. The amendments reflect technical rectifications to the NAFTA 
Uniform Regulations agreed upon by the three NAFTA Parties, as well as 
corrections necessitated by changes to the Harmonized Tariff Schedule 
of the United States. The conforming amendments are required to 
maintain the United States' obligations under the NAFTA and to ensure 
that NAFTA traders operate under a uniform tariff and rules of origin 
regime. The amendments set forth in this document involve no 
substantive interpretation of the NAFTA or change in policy.

DATES: The corrections are effective July 10, 2015.

FURTHER INFORMATION CONTACT: Craig T. Clark, Director, Textile and 
Trade Agreements Division, Office of International Trade, Customs and 
Border Protection, Tel. (202) 863-6657.

SUPPLEMENTARY INFORMATION:

Background

North American Free Trade Agreement

    On December 17, 1992, the United States, Canada, and Mexico entered 
into the North American Free Trade Agreement (NAFTA) which, among other 
things, provides for preferential duty treatment on goods of those 
three countries. The North American Free Trade Agreement Implementation 
Act, Public Law 103-182, 107 Stat. 2057, was signed into law by the 
United States on December 8, 1993. For purposes of administration of 
the NAFTA preferential duty provisions, the three countries agreed to 
the adoption of verbatim NAFTA Rules of Origin Regulations and 
additional uniform regulatory standards to be followed by each country 
in promulgating NAFTA implementing regulations under its national law.

NAFTA Rules of Origin Regulations

    The regulations implementing the NAFTA preferential duty and 
related provisions under United States law are set forth in part 181 of 
title 19 of the Code of Federal Regulations (19 CFR part 181) which 
incorporates, in the Appendix, the verbatim NAFTA Rules of Origin 
Regulations. The NAFTA rules of origin are structured primarily in 
terms of prescribed changes in tariff classification, with some goods 
also subject to a content requirement.

Technical Rectifications to the NAFTA Rule of Origin Regulations Agreed 
to by the United States, Canada, and Mexico

    On April 9, 2009, the United States Trade Representative, the 
Canadian

[[Page 26829]]

Minister of International Trade, and the Mexican Secretary of the 
Economy (Parties) agreed, in an Exchange of Letters, to make certain 
technical rectifications to the NAFTA Uniform Regulations for Chapter 
Four and Annex 403.1, subject to the completion of each Party's 
domestic legal procedures. These technical rectifications are set forth 
in Appendices 6 and 4, respectively, to the April 9, 2009 Exchange of 
Letters. The technical rectifications were necessitated by systemic 
revisions to the international Harmonized Commodity Description and 
Coding System (Harmonized System) and the implementation of these 
changes into each Party's national domestic tariff law, effective 2007. 
In Presidential Proclamation 8097 of December 29, 2006, the President 
proclaimed modifications to the Harmonized Tariff Schedule of the 
United States (HTSUS) to reflect the revisions to the Harmonized System 
(HS).
    The technical rectifications to the NAFTA Uniform Regulations for 
Chapter Four and Annex 403.1 do not constitute policy or substantive 
changes to the NAFTA and have the sole purpose of maintaining 
consistency between the NAFTA Annexes and each of the signatory 
countries' tariff laws. The conforming amendments set forth in this 
document implement these technical rectifications by updating the HTSUS 
tariff provisions in the Appendix to part 181 of 19 CFR and are 
necessary to maintain the United States' obligations under the NAFTA 
and to ensure that NAFTA traders operate under a uniform tariff and 
rules of origin regime.
    To effect the agreed upon numerical and text changes to the NAFTA 
Rules of Origin Regulations for the United States, technical 
rectifications are made to the following provisions within the Appendix 
to 19 CFR part 181:
     Part II, Section 5, subsection (4)(i), pertaining to 
exceptions to the de minimis rule for non-originating materials that do 
not undergo, subject to authorization, a required tariff change.
     Part III, Section 6, subsection (6)(d)(iv), pertaining to 
regional value content and application of the net cost method in 
certain circumstances.
     Part VI, Section 16, subsection (3), pertaining to 
exceptions to transshipment rules for certain goods.
     Schedule IV, pertaining to the list of tariff provisions 
for the purposes of section 9 of the Appendix.\1\
---------------------------------------------------------------------------

    \1\ Schedule IV of the Appendix to part 181 of 19 CFR (``List of 
Tariff Provisions for the Purposes of Section 9 of the Appendix'' or 
commonly referred to as the ``Schedule IV Light-Duty Automotive 
Tracing List'') implements the NAFTA Annex 403.1 tariff provisions. 
Within Part V (``Automotive Goods'') of the Appendix to part 181, 
section 9 lists special NAFTA valuation rules for certain light-duty 
automotive goods. The section 9 rules are based on a regional value-
content (RVC) calculation that requires producers and exporters to 
determine whether non-originating materials used in the production 
of light-duty automotive goods are ``traced materials'' (i.e., those 
materials classifiable under specific HTSUS provisions listed in 
Annex 403.1 of the NAFTA).
---------------------------------------------------------------------------

Additional Technical Corrections to the Schedule IV Light-Duty 
Automotive Tracing List Necessitated by Pre-2007 Revisions to the HTSUS

    In addition to the technical rectifications trilaterally agreed to 
by the NAFTA Parties in the 2009 Exchange of Letters, described above, 
this document makes additional technical corrections to the Schedule IV 
light-duty automotive tracing list within the Appendix to 19 CFR part 
181 to reflect pre-2007 modifications to the HTSUS. As noted above, the 
HTSUS is periodically updated to reflect systemic revisions to the HS. 
The periodic revisions to the HTSUS result in certain tariff provisions 
being added or removed, or certain goods being transferred to different 
or newly-created tariff provisions. As a result of pre-2007 systemic 
HTSUS revisions, the existing Schedule IV light-duty automotive tracing 
list in the Appendix to part 181 contains outdated tariff provisions 
that are no longer consistent with Annex 403.1 of the NAFTA. This 
document makes technical corrections to the numerical tariff references 
in the tracing list so as to conform to the current version of the 
HTSUS and maintain the United States' obligations under the NAFTA.

Inapplicability of the Administrative Procedure Act

    Under the Administrative Procedure Act (APA) (5 U.S.C. 553), 
agencies generally are required to publish a notice of proposed 
rulemaking in the Federal Register that solicits public comment on the 
proposed regulatory amendments, consider public comments in deciding on 
the content of the final amendments, and publish the final amendments 
at least 30 days prior to their effective date. Section 553(a)(1) of 
the APA provides that the standard prior notice and comment procedures 
do not apply to an agency rulemaking to the extent that it involves a 
foreign affairs function of the United States. CBP has determined that 
these technical corrections involve a foreign affairs function of the 
United States because they implement preferential tariff treatment and 
related provisions of the NAFTA. In addition, because the amendments 
set forth in this document are necessary to conform the NAFTA Rules of 
Origin Regulations within the Appendix to 19 CFR part 181 to the 
technical corrections to the NAFTA Uniform Regulations for Chapter Four 
and Annex 403.1 agreed to by the U.S., Canada, and Mexico, as well as 
to systemic revisions to the Harmonized System, pursuant to 5 U.S.C. 
553(b)(B), CBP finds that good cause exists for dispensing with notice 
and public procedure as unnecessary. For these reasons, pursuant to 5 
U.S.C. 553(a)(1) and (d)(3), CBP finds that good cause exists for 
dispensing with the requirement for a delayed effective date and the 
rulemaking requirements under the APA do not apply. It is further 
noted, that although the APA's delayed effective date requirement is 
inapplicable to this rulemaking, CBP has determined to delay the 
effective date of these technical rectifications for a period of 60 
days from the date of publication of this document in the Federal 
Register. In consideration of the fact that two of the amendments to 
the CBP regulations correct tariff listings that have been out of date 
since 1995, the delayed effective date is offered by CBP to allow the 
trade, if necessary, to make adjustments to their business practices.

Regulatory Flexibility Act

    Because this document is not subject to the notice and public 
procedure requirements of 5 U.S.C. 553, it is not subject to the 
provisions of the Regulatory Flexibility Act, as amended (5 U.S.C. 601 
et seq.).

Executive Order 12866

    As these amendments to the regulations reflect technical 
rectifications to the NAFTA agreed to by the United States, Canada, and 
Mexico, as well as revisions to the Harmonized Tariff Schedule of the 
United States, they do not meet the criteria for a ``significant 
regulatory action'' as specified in Executive Order 12866.

Signing Authority

    This document is being issued in accordance with Sec.  0.1(a)(1) of 
the CBP regulations (19 CFR 0.1(a)(1)) pertaining to the authority of 
the Secretary of the Treasury (or his/her delegate) to approve 
regulations related to certain customs revenue functions. Accordingly, 
it is being signed under the authority of 19 CFR 0.1(b)(1).

List of Subjects in 19 CFR Part 181

    Administrative practice and procedure, Canada, Customs duties and 
inspection, Imports, Mexico, Reporting

[[Page 26830]]

and recordkeeping requirements, Trade agreements (North American Free 
Trade Agreement).

Amendment to the Regulations

    For the reasons stated above, part 181 of title 19 of the Code of 
Federal Regulations (19 CFR part 181) is amended as set forth below.

PART 181--NORTH AMERICAN FREE TRADE AGREEMENT

0
1. The general and specific authority citations for part 181 continue 
to read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States), 1624, 3314.
* * * * *
0
2. In the Appendix to part 181:
0
a. Part II, Section 5, under the heading ``Exceptions,'' subsection 
4(i) is revised;
0
b. Part III, Section 6, under the heading ``Net Cost Method Required in 
Certain Circumstances,'' subsection (6)(d)(iv) is amended by removing 
``subheading 8469.11'' and adding in its place ``heading 8469'';
0
c. Part VI, Section 16, under the heading ``Exceptions for Certain 
Goods,'' subsection (3) is revised;
0
d. In Schedule IV:
0
i. Remove the listing ``8407.34.05, 8407.34.15 and 8407.34.25'' and add 
in its place the listing ``8407.34.05, 8407.34.14, 8407.34.18 and 
8407.34.25'';
0
ii. Remove the listing ``8407.34.35, 8407.34.45 and 8407.34.55'' and 
add in its place the listing ``8407.34.35, 8407.34.44, 8407.34.48 and 
8407.34.55'';
0
iii. Remove the listing ``8519.93'' and add in its place the listing 
``ex 8519.81'';
0
iv. Remove the listing ``8708.29.10 '';
0
v. Remove the listing ``8708.29.20'' and add in its place the listing 
``8708.29.21 and 8708.29.25'';
0
vi. Remove the listing ``8708.39'' and add in its place the listing 
``8708.30'';
0
vii. Remove the listing ``8708.60'';
0
viii. Add in numerical order the listing ``8708.95'';
0
ix. Remove the listing ``8708.99.09, 8708.99.34 and 8708.99.61'';
0
x. Remove the listing ``8708.99.12, 8708.99.37 and 8708.99.64'';
0
xi. Remove the listing ``8708.99.15, 8708.99.40 and 8708.99.67'' and 
add in its place the listing ``8708.99.16, 8708.99.41 and 8708.99.68'';
0
xii. Remove the listing ``8708.99.18, 8708.99.43 and 8708.99.70'';
0
xiii. Remove the listing ``8708.99.21, 8708.99.46 and 8708.99.73'';
0
xiv. Remove the listing ``8708.99.24, 8708.99.49 and 8708.99.80; and
0
xv. Add in numerical order the listing ``8708.99.23, 8708.99.48 and 
8708.99.81''.
    The revisions read as follows:

Appendix to Part 181--Rules of Origin Regulations

* * * * *
PART II
* * * * *
SECTION 5. DE MINIMIS
* * * * *
Exceptions
    (4) * * *
    (i) a non-originating material that is used in the production of 
any non-portable gas stoves or ranges of subheading 7321.11 or 
7321.19, subheadings 8415.10, 8415.20 through 8415.83, 8418.10 
through 8418.21, household type refrigerators, other than electrical 
absorption type of subheading 8418.29, subheadings 8418.30 through 
8418.40, 8421.12, 8422.11, 8450.11 through 8450.20 and 8451.21 
through 8451.29 and tariff items 8479.89.55 (trash compactors) and 
8516.60.40 (electric stoves or ranges);
* * * * *
PART VI
SECTION 16. TRANSSHIPMENT
* * * * *
Exceptions for Certain Goods
    (3) Subsection (1) does not apply with respect to:
    (a) a ``smart card'' of subheading 8523.52, containing a single 
integrated circuit, where any further production or other operation 
that that good undergoes outside the territories of the NAFTA 
countries does not result in a change in the tariff classification 
of the good to any other subheading;
    (b) a good of any of subheadings 8541.10 through 8541.60 or 
subheadings 8542.31 through 8542.39, where any further production or 
other operation that that good undergoes outside the territories of 
the NAFTA countries does not result in a change in the tariff 
classification of the good to a subheading outside subheadings 
8541.10 through 8542.90;
    (c) an electronic microassembly of subheading 8543.70, where any 
further production or other operation that that good undergoes 
outside the territories of the NAFTA countries does not result in a 
change in the tariff classification of the good to any other 
subheading; or
    (d) an electronic microassembly of subheading 8548.90, where any 
further production or other operation that that good undergoes 
outside the territories of the NAFTA countries does not result in a 
change in the tariff classification of the good to any other 
subheading.
* * * * *

R. Gil Kerlikowske,
Commissioner.
    Approved: May 5, 2015.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2015-11291 Filed 5-8-15; 8:45 am]
 BILLING CODE 9111-14-P



                                           26828               Federal Register / Vol. 80, No. 90 / Monday, May 11, 2015 / Rules and Regulations

                                           this document may contact its local                     exemption issued by the FAA. The FAA                  (NAFTA) entered into by the United
                                           FAA official, or the person listed under                will process requests for approval or                 States, Canada, and Mexico. The
                                           the FOR FURTHER INFORMATION CONTACT                     exemption in a timely manner, with the                amendments reflect technical
                                           section at the beginning of the preamble.               order of preference being: First, for                 rectifications to the NAFTA Uniform
                                           You can find out more about SBREFA                      those operations in support of U.S.                   Regulations agreed upon by the three
                                           on the Internet at: http://www.faa.gov/                 government-sponsored activities;                      NAFTA Parties, as well as corrections
                                           regulations_policies/rulemaking/                        second, for those operations in support               necessitated by changes to the
                                           sbre_act/.                                              of government-sponsored activities of a               Harmonized Tariff Schedule of the
                                                                                                   foreign country with the support of a                 United States. The conforming
                                           List of Subjects in 14 CFR Part 91
                                                                                                   U.S. government department, agency, or                amendments are required to maintain
                                             Air traffic control, Aircraft, Airmen,                instrumentality; and third, for all other             the United States’ obligations under the
                                           Airports, Aviation safety, Freight, Iraq.               operations.                                           NAFTA and to ensure that NAFTA
                                           The Amendment                                              (d) Emergency situations. In an                    traders operate under a uniform tariff
                                                                                                   emergency that requires immediate                     and rules of origin regime. The
                                             In consideration of the foregoing, the                decision and action for the safety of the             amendments set forth in this document
                                           Federal Aviation Administration                         flight, the pilot in command of an                    involve no substantive interpretation of
                                           amends chapter I of Title 14, Code of                   aircraft may deviate from this section to             the NAFTA or change in policy.
                                           Federal Regulations, as follows:                        the extent required by that emergency.                DATES: The corrections are effective July
                                                                                                   Except for U.S. air carriers and                      10, 2015.
                                           PART 91—GENERAL OPERATING AND
                                                                                                   commercial operators that are subject to              FURTHER INFORMATION CONTACT: Craig T.
                                           FLIGHT RULES
                                                                                                   the requirements of parts 119, 121, 125,              Clark, Director, Textile and Trade
                                           ■ 1. The authority citation for part 91                 or 135, each person who deviates from                 Agreements Division, Office of
                                           continues to read as follows:                           this section must, within 10 days of the              International Trade, Customs and
                                                                                                   deviation, excluding Saturdays,                       Border Protection, Tel. (202) 863–6657.
                                             Authority: 49 U.S.C. 106(f), 106(g), 1155,
                                           40101, 40103, 40105, 40113, 40120, 44101,               Sundays, and Federal holidays, submit                 SUPPLEMENTARY INFORMATION:
                                           44111, 44701, 44704, 44709, 44711, 44712,               to the nearest FAA Flight Standards
                                           44715, 44716, 44717, 44722, 46306, 46315,               District Office (FSDO) a complete report              Background
                                           46316, 46504, 46506–46507, 47122, 47508,                of the operations of the aircraft involved            North American Free Trade Agreement
                                           47528–47531, 47534, articles 12 and 29 of the           in the deviation, including a description
                                           Convention on International Civil Aviation              of the deviation and the reasons for it.                On December 17, 1992, the United
                                           (61 Stat. 1180), (126 Stat. 11).                           (e) Expiration. This SFAR will remain              States, Canada, and Mexico entered into
                                                                                                   in effect until May 11, 2017. The FAA                 the North American Free Trade
                                           ■   2. Revise § 91.1605 to read as follows:                                                                   Agreement (NAFTA) which, among
                                                                                                   may amend, rescind, or extend this
                                           § 91.1605 Special Federal Aviation                      SFAR as necessary.                                    other things, provides for preferential
                                           Regulation No. 77—Prohibition Against                                                                         duty treatment on goods of those three
                                                                                                      Issued under authority provided by 49
                                           Certain Flights in the Baghdad (ORBB)                                                                         countries. The North American Free
                                           Flight Information Region (FIR)                         U.S.C. 106(f), 40101(d)(1), 40105(b)(1)(A),
                                                                                                   and 44701(a)(5), in Washington, DC, on May            Trade Agreement Implementation Act,
                                             (a) Applicability. This rule applies to               1, 2015.                                              Public Law 103–182, 107 Stat. 2057,
                                           the following persons:                                  Michael P. Huerta,                                    was signed into law by the United States
                                             (1) All U.S. air carriers and U.S.                                                                          on December 8, 1993. For purposes of
                                                                                                   Administrator.
                                           commercial operators;                                                                                         administration of the NAFTA
                                             (2) All persons exercising the                        [FR Doc. 2015–11284 Filed 5–6–15; 11:15 am]
                                                                                                                                                         preferential duty provisions, the three
                                           privileges of an airman certificate issued              BILLING CODE 4910–13–P
                                                                                                                                                         countries agreed to the adoption of
                                           by the FAA, except such persons                                                                               verbatim NAFTA Rules of Origin
                                           operating U.S.-registered aircraft for a                                                                      Regulations and additional uniform
                                           foreign air carrier; and                                DEPARTMENT OF HOMELAND                                regulatory standards to be followed by
                                             (3) All operators of aircraft registered              SECURITY                                              each country in promulgating NAFTA
                                           in the United States, except where the                                                                        implementing regulations under its
                                           operator of such aircraft is a foreign air              U.S. Customs and Border Protection                    national law.
                                           carrier.
                                             (b) Flight prohibition. No person may                 19 CFR Part 181                                       NAFTA Rules of Origin Regulations
                                           conduct flight operations in the                        [CBP Dec. 15–07]                                        The regulations implementing the
                                           Baghdad (ORBB) Flight Information                                                                             NAFTA preferential duty and related
                                           Region (FIR), except as provided in                     RIN 1515–AE04                                         provisions under United States law are
                                           paragraphs (c) and (d) of this section.                                                                       set forth in part 181 of title 19 of the
                                             (c) Permitted operations. This section                Technical Corrections to the North
                                                                                                                                                         Code of Federal Regulations (19 CFR
                                           does not prohibit persons described in                  American Free Trade Agreement
                                                                                                                                                         part 181) which incorporates, in the
                                           paragraph (a) of this section from                      Uniform Regulations
                                                                                                                                                         Appendix, the verbatim NAFTA Rules
                                           conducting flight operations in the                     AGENCIES: U.S. Customs and Border                     of Origin Regulations. The NAFTA rules
                                           ORBB FIR, provided that such flight                     Protection, Department of Homeland                    of origin are structured primarily in
                                           operations are conducted under a                        Security.                                             terms of prescribed changes in tariff
                                           contract, grant, or cooperative                         ACTION: Final rule.                                   classification, with some goods also
                                           agreement with a department, agency, or                                                                       subject to a content requirement.
Lhorne on DSK2VPTVN1PROD with RULES




                                           instrumentality of the U.S. government                  SUMMARY:   This document sets forth
                                           (or under a subcontract between the                     amendments to the Customs and Border                  Technical Rectifications to the NAFTA
                                           prime contractor of the department,                     Protection regulations that implement                 Rule of Origin Regulations Agreed to by
                                           agency, or instrumentality, and the                     the preferential tariff treatment and                 the United States, Canada, and Mexico
                                           person described in paragraph (a)), with                other customs-related provisions of the                 On April 9, 2009, the United States
                                           the approval of the FAA, or under an                    North American Free Trade Agreement                   Trade Representative, the Canadian


                                      VerDate Sep<11>2014   16:33 May 08, 2015   Jkt 235001   PO 00000   Frm 00010   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                                                 Federal Register / Vol. 80, No. 90 / Monday, May 11, 2015 / Rules and Regulations                                              26829

                                           Minister of International Trade, and the                Additional Technical Corrections to the                    amendments set forth in this document
                                           Mexican Secretary of the Economy                        Schedule IV Light-Duty Automotive                          are necessary to conform the NAFTA
                                           (Parties) agreed, in an Exchange of                     Tracing List Necessitated by Pre-2007                      Rules of Origin Regulations within the
                                           Letters, to make certain technical                      Revisions to the HTSUS                                     Appendix to 19 CFR part 181 to the
                                           rectifications to the NAFTA Uniform                        In addition to the technical                            technical corrections to the NAFTA
                                           Regulations for Chapter Four and Annex                  rectifications trilaterally agreed to by the               Uniform Regulations for Chapter Four
                                           403.1, subject to the completion of each                NAFTA Parties in the 2009 Exchange of                      and Annex 403.1 agreed to by the U.S.,
                                           Party’s domestic legal procedures. These                Letters, described above, this document                    Canada, and Mexico, as well as to
                                           technical rectifications are set forth in               makes additional technical corrections                     systemic revisions to the Harmonized
                                           Appendices 6 and 4, respectively, to the                to the Schedule IV light-duty                              System, pursuant to 5 U.S.C. 553(b)(B),
                                           April 9, 2009 Exchange of Letters. The                  automotive tracing list within the                         CBP finds that good cause exists for
                                           technical rectifications were                           Appendix to 19 CFR part 181 to reflect                     dispensing with notice and public
                                           necessitated by systemic revisions to the               pre-2007 modifications to the HTSUS.                       procedure as unnecessary. For these
                                           international Harmonized Commodity                      As noted above, the HTSUS is                               reasons, pursuant to 5 U.S.C. 553(a)(1)
                                           Description and Coding System                           periodically updated to reflect systemic                   and (d)(3), CBP finds that good cause
                                           (Harmonized System) and the                             revisions to the HS. The periodic                          exists for dispensing with the
                                           implementation of these changes into                    revisions to the HTSUS result in certain                   requirement for a delayed effective date
                                           each Party’s national domestic tariff                   tariff provisions being added or                           and the rulemaking requirements under
                                           law, effective 2007. In Presidential                    removed, or certain goods being                            the APA do not apply. It is further
                                           Proclamation 8097 of December 29,                       transferred to different or newly-created                  noted, that although the APA’s delayed
                                           2006, the President proclaimed                          tariff provisions. As a result of pre-2007                 effective date requirement is
                                           modifications to the Harmonized Tariff                  systemic HTSUS revisions, the existing                     inapplicable to this rulemaking, CBP
                                           Schedule of the United States (HTSUS)                   Schedule IV light-duty automotive                          has determined to delay the effective
                                           to reflect the revisions to the                         tracing list in the Appendix to part 181                   date of these technical rectifications for
                                           Harmonized System (HS).                                 contains outdated tariff provisions that                   a period of 60 days from the date of
                                              The technical rectifications to the                  are no longer consistent with Annex                        publication of this document in the
                                           NAFTA Uniform Regulations for                           403.1 of the NAFTA. This document                          Federal Register. In consideration of the
                                           Chapter Four and Annex 403.1 do not                     makes technical corrections to the                         fact that two of the amendments to the
                                           constitute policy or substantive changes                numerical tariff references in the tracing                 CBP regulations correct tariff listings
                                           to the NAFTA and have the sole                          list so as to conform to the current                       that have been out of date since 1995,
                                           purpose of maintaining consistency                      version of the HTSUS and maintain the                      the delayed effective date is offered by
                                           between the NAFTA Annexes and each                      United States’ obligations under the                       CBP to allow the trade, if necessary, to
                                           of the signatory countries’ tariff laws.                NAFTA.                                                     make adjustments to their business
                                           The conforming amendments set forth                                                                                practices.
                                                                                                   Inapplicability of the Administrative
                                           in this document implement these
                                                                                                   Procedure Act                                              Regulatory Flexibility Act
                                           technical rectifications by updating the
                                           HTSUS tariff provisions in the                             Under the Administrative Procedure                        Because this document is not subject
                                           Appendix to part 181 of 19 CFR and are                  Act (APA) (5 U.S.C. 553), agencies                         to the notice and public procedure
                                           necessary to maintain the United States’                generally are required to publish a                        requirements of 5 U.S.C. 553, it is not
                                           obligations under the NAFTA and to                      notice of proposed rulemaking in the                       subject to the provisions of the
                                           ensure that NAFTA traders operate                       Federal Register that solicits public                      Regulatory Flexibility Act, as amended
                                           under a uniform tariff and rules of                     comment on the proposed regulatory                         (5 U.S.C. 601 et seq.).
                                           origin regime.                                          amendments, consider public comments
                                                                                                                                                              Executive Order 12866
                                              To effect the agreed upon numerical                  in deciding on the content of the final
                                           and text changes to the NAFTA Rules of                  amendments, and publish the final                             As these amendments to the
                                           Origin Regulations for the United States,               amendments at least 30 days prior to                       regulations reflect technical
                                           technical rectifications are made to the                their effective date. Section 553(a)(1) of                 rectifications to the NAFTA agreed to by
                                           following provisions within the                         the APA provides that the standard                         the United States, Canada, and Mexico,
                                           Appendix to 19 CFR part 181:                            prior notice and comment procedures                        as well as revisions to the Harmonized
                                              • Part II, Section 5, subsection (4)(i),             do not apply to an agency rulemaking to                    Tariff Schedule of the United States,
                                           pertaining to exceptions to the de                      the extent that it involves a foreign                      they do not meet the criteria for a
                                           minimis rule for non-originating                        affairs function of the United States.                     ‘‘significant regulatory action’’ as
                                           materials that do not undergo, subject to               CBP has determined that these technical                    specified in Executive Order 12866.
                                           authorization, a required tariff change.                corrections involve a foreign affairs                      Signing Authority
                                              • Part III, Section 6, subsection                    function of the United States because
                                                                                                   they implement preferential tariff                           This document is being issued in
                                           (6)(d)(iv), pertaining to regional value
                                                                                                   treatment and related provisions of the                    accordance with § 0.1(a)(1) of the CBP
                                           content and application of the net cost
                                                                                                   NAFTA. In addition, because the                            regulations (19 CFR 0.1(a)(1)) pertaining
                                           method in certain circumstances.
                                                                                                                                                              to the authority of the Secretary of the
                                              • Part VI, Section 16, subsection (3),
                                                                                                   Tracing List’’) implements the NAFTA Annex 403.1           Treasury (or his/her delegate) to
                                           pertaining to exceptions to                             tariff provisions. Within Part V (‘‘Automotive             approve regulations related to certain
                                           transshipment rules for certain goods.                  Goods’’) of the Appendix to part 181, section 9 lists      customs revenue functions.
                                              • Schedule IV, pertaining to the list of             special NAFTA valuation rules for certain light-
                                                                                                                                                              Accordingly, it is being signed under
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                                           tariff provisions for the purposes of                   duty automotive goods. The section 9 rules are
                                                                                                   based on a regional value-content (RVC) calculation        the authority of 19 CFR 0.1(b)(1).
                                           section 9 of the Appendix.1                             that requires producers and exporters to determine
                                                                                                   whether non-originating materials used in the              List of Subjects in 19 CFR Part 181
                                             1 Schedule   IV of the Appendix to part 181 of 19     production of light-duty automotive goods are
                                           CFR (‘‘List of Tariff Provisions for the Purposes of    ‘‘traced materials’’ (i.e., those materials classifiable
                                                                                                                                                                Administrative practice and
                                           Section 9 of the Appendix’’ or commonly referred        under specific HTSUS provisions listed in Annex            procedure, Canada, Customs duties and
                                           to as the ‘‘Schedule IV Light-Duty Automotive           403.1 of the NAFTA).                                       inspection, Imports, Mexico, Reporting


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                                           26830               Federal Register / Vol. 80, No. 90 / Monday, May 11, 2015 / Rules and Regulations

                                           and recordkeeping requirements, Trade                       The revisions read as follows:                    DEPARTMENT OF EDUCATION
                                           agreements (North American Free Trade
                                           Agreement).                                             Appendix to Part 181—Rules of Origin                  34 CFR Chapter III
                                                                                                   Regulations
                                           Amendment to the Regulations                                                                                  Final Waiver and Extension of the
                                                                                                   *      *     *       *       *
                                             For the reasons stated above, part 181                PART II                                               Project Period; Community Parent
                                           of title 19 of the Code of Federal                                                                            Resource Centers
                                                                                                   *      *     *       *       *
                                           Regulations (19 CFR part 181) is                        SECTION 5. DE MINIMIS                                 [Catalog of Federal Domestic Assistance
                                           amended as set forth below.                                                                                   (CFDA) Number: 84.328C]
                                                                                                   *      *     *       *       *
                                           PART 181—NORTH AMERICAN FREE                            Exceptions                                            AGENCY:  Office of Special Education
                                           TRADE AGREEMENT                                           (4) * * *                                           Programs (OSEP), Office of Special
                                                                                                     (i) a non-originating material that is used         Education and Rehabilitative Services,
                                           ■ 1. The general and specific authority                 in the production of any non-portable gas             Department of Education.
                                           citations for part 181 continue to read as              stoves or ranges of subheading 7321.11 or
                                                                                                                                                         ACTION: Final waiver and extension of
                                           follows:                                                7321.19, subheadings 8415.10, 8415.20
                                                                                                   through 8415.83, 8418.10 through 8418.21,             the project period.
                                            Authority: 19 U.S.C. 66, 1202 (General                 household type refrigerators, other than
                                           Note 3(i), Harmonized Tariff Schedule of the                                                                  SUMMARY:   For the nine currently funded
                                                                                                   electrical absorption type of subheading
                                           United States), 1624, 3314.                                                                                   Community Parent Resource Centers
                                                                                                   8418.29, subheadings 8418.30 through
                                           *      *       *    *      *                            8418.40, 8421.12, 8422.11, 8450.11 through
                                                                                                                                                         (CPRCs), the Secretary waives the
                                           ■  2. In the Appendix to part 181:                      8450.20 and 8451.21 through 8451.29 and               requirements that generally prohibit
                                           ■  a. Part II, Section 5, under the heading             tariff items 8479.89.55 (trash compactors)            project periods exceeding five years and
                                           ‘‘Exceptions,’’ subsection 4(i) is revised;             and 8516.60.40 (electric stoves or ranges);           extensions of project periods involving
                                           ■ b. Part III, Section 6, under the                                                                           the obligation of additional Federal
                                                                                                   *      *     *       *       *                        funds. This waiver and extension of the
                                           heading ‘‘Net Cost Method Required in                   PART VI
                                           Certain Circumstances,’’ subsection                                                                           project period enables these nine CPRCs
                                                                                                   SECTION 16. TRANSSHIPMENT
                                           (6)(d)(iv) is amended by removing                                                                             to receive funding from October 1, 2015,
                                           ‘‘subheading 8469.11’’ and adding in its                *      *     *       *       *                        through September 30, 2016. Further,
                                                                                                   Exceptions for Certain Goods                          the waiver and extension of the project
                                           place ‘‘heading 8469’’;
                                                                                                     (3) Subsection (1) does not apply with              period mean that we will not announce
                                           ■ c. Part VI, Section 16, under the
                                                                                                   respect to:
                                           heading ‘‘Exceptions for Certain                                                                              a new competition or make new awards
                                                                                                     (a) a ‘‘smart card’’ of subheading 8523.52,
                                           Goods,’’ subsection (3) is revised;                     containing a single integrated circuit, where
                                                                                                                                                         in fiscal year (FY) 2015.
                                           ■ d. In Schedule IV:                                    any further production or other operation             DATES: The waiver and extension of the
                                           ■ i. Remove the listing ‘‘8407.34.05,                   that that good undergoes outside the                  project period are effective May 11,
                                           8407.34.15 and 8407.34.25’’ and add in                  territories of the NAFTA countries does not           2015.
                                           its place the listing ‘‘8407.34.05,                     result in a change in the tariff classification       FOR FURTHER INFORMATION CONTACT:
                                           8407.34.14, 8407.34.18 and 8407.34.25’’;                of the good to any other subheading;
                                           ■ ii. Remove the listing ‘‘8407.34.35,
                                                                                                                                                         Carmen Sanchez, U.S. Department of
                                                                                                     (b) a good of any of subheadings 8541.10
                                           8407.34.45 and 8407.34.55’’ and add in                                                                        Education, 400 Maryland Avenue SW.,
                                                                                                   through 8541.60 or subheadings 8542.31
                                           its place the listing ‘‘8407.34.35,                     through 8542.39, where any further
                                                                                                                                                         Room 4057, Potomac Center Plaza,
                                           8407.34.44, 8407.34.48 and 8407.34.55’’;                production or other operation that that good          Washington, DC 20202–2600.
                                           ■ iii. Remove the listing ‘‘8519.93’’ and               undergoes outside the territories of the              Telephone: (202) 245–6595.
                                           add in its place the listing ‘‘ex 8519.81’’;            NAFTA countries does not result in a change              If you use a telecommunications
                                           ■ iv. Remove the listing ‘‘8708.29.10 ’’;               in the tariff classification of the good to a         device for the deaf or a text telephone,
                                           ■ v. Remove the listing ‘‘8708.29.20’’                  subheading outside subheadings 8541.10                call the Federal Relay Service, toll free,
                                           and add in its place the listing                        through 8542.90;                                      at 1–800–877–8339.
                                           ‘‘8708.29.21 and 8708.29.25’’;                            (c) an electronic microassembly of                  SUPPLEMENTARY INFORMATION: On March
                                           ■ vi. Remove the listing ‘‘8708.39’’ and                subheading 8543.70, where any further                 9, 2015, we published a notice in the
                                           add in its place the listing ‘‘8708.30’’;               production or other operation that that good          Federal Register (78 FR 46860)
                                           ■ vii. Remove the listing ‘‘8708.60’’;                  undergoes outside the territories of the              proposing an extension of project period
                                           ■ viii. Add in numerical order the
                                                                                                   NAFTA countries does not result in a change           and a waiver of 34 CFR 75.250 and
                                                                                                   in the tariff classification of the good to any       75.261(a) and (c)(2) in order to—
                                           listing ‘‘8708.95’’;
                                                                                                   other subheading; or
                                           ■ ix. Remove the listing ‘‘8708.99.09,                                                                           (1) Enable the Secretary to provide
                                                                                                     (d) an electronic microassembly of
                                           8708.99.34 and 8708.99.61’’;                                                                                  additional funds to the currently funded
                                                                                                   subheading 8548.90, where any further
                                           ■ x. Remove the listing ‘‘8708.99.12,                                                                         CPRCs for an additional 12-month
                                                                                                   production or other operation that that good
                                           8708.99.37 and 8708.99.64’’;                            undergoes outside the territories of the              project period, from October 1, 2015,
                                           ■ xi. Remove the listing ‘‘8708.99.15,                                                                        through September 30, 2016; and
                                                                                                   NAFTA countries does not result in a change
                                           8708.99.40 and 8708.99.67’’ and add in                  in the tariff classification of the good to any          (2) Request comments on the
                                           its place the listing ‘‘8708.99.16,                     other subheading.                                     proposed extension of project period
                                           8708.99.41 and 8708.99.68’’;                                                                                  and waiver.
                                                                                                   *      *     *       *       *
                                           ■ xii. Remove the listing ‘‘8708.99.18,                                                                          There are no substantive differences
                                           8708.99.43 and 8708.99.70’’;                            R. Gil Kerlikowske,                                   between the proposed waiver and
                                           ■ xiii. Remove the listing ‘‘8708.99.21,                                                                      extension and the final waiver and
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                                                                                                   Commissioner.
                                           8708.99.46 and 8708.99.73’’;                              Approved: May 5, 2015.                              extension.
                                           ■ xiv. Remove the listing ‘‘8708.99.24,
                                           8708.99.49 and 8708.99.80; and                          Timothy E. Skud,                                      Public Comment
                                           ■ xv. Add in numerical order the listing                Deputy Assistant Secretary of the Treasury.             In response to our invitation in the
                                           ‘‘8708.99.23, 8708.99.48 and                            [FR Doc. 2015–11291 Filed 5–8–15; 8:45 am]            notice of proposed waiver and extension
                                           8708.99.81’’.                                           BILLING CODE 9111–14–P                                of the project period, we did not receive


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Document Created: 2018-02-21 10:25:41
Document Modified: 2018-02-21 10:25:41
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThe corrections are effective July 10, 2015.
FR Citation80 FR 26828 
RIN Number1515-AE04
CFR AssociatedAdministrative Practice and Procedure; Canada; Customs Duties and Inspection; Imports; Mexico; Reporting and Recordkeeping Requirements and Trade Agreements (north American Free Trade Agreement)

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