81 FR 2085 - United States-Australia Free Trade Agreement

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

Federal Register Volume 81, Issue 10 (January 15, 2016)

This document adopts as a final rule, with one change, interim amendments to the U.S. Customs and Border Protection (CBP) regulations that were published in the Federal Register on February 10, 2015, as CBP Dec. 15-03, to implement the preferential tariff treatment and other customs-related provisions of the United States-Australia Free Trade Agreement.

[Federal Register Volume 81, Number 10 (Friday, January 15, 2016)]
[Rules and Regulations]
[Pages 2085-2086]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00628]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

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

[USCBP-2015-0007; CBP Dec. 16-1]
RIN 1515-AD59


United States-Australia Free Trade Agreement

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

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule, with one change, interim 
amendments to the U.S. Customs and Border Protection (CBP) regulations 
that were published in the Federal Register on February 10, 2015, as 
CBP Dec. 15-03, to implement the preferential tariff treatment and 
other customs-related provisions of the United States-Australia Free 
Trade Agreement.

DATES: Effective February 16, 2016.

FOR FURTHER INFORMATION CONTACT: Textile Operational Aspects: Anita 
Harris, Textile Operations Branch, Office of International Trade, (202) 
863-6241.
    Other Operational Aspects: Seth Mazze, Trade Policy and Programs, 
Office of International Trade, (202) 863-6567.
    Legal Aspects: Yuliya Gulis, Regulations and Rulings, Office of 
International Trade, (202) 325-0042.

SUPPLEMENTARY INFORMATION: 

Background

    On May 18, 2004, the United States and Australia (the ``Parties'') 
signed the United States-Australia Free Trade Agreement (``AFTA'' or 
``Agreement''). On August 3, 2004, the President signed into law the 
United States-Australian Free Trade Agreement Implementation Act (the 
``Act''), Public Law 108-286, 118 Stat. 919 (19 U.S.C. 3805 note), 
which approved and made statutory changes to implement the AFTA. On 
December 20, 2004, the President signed Proclamation 7857 to implement 
the AFTA. The Proclamation, which was published in the Federal Register 
on December 23, 2004 (69 FR 77133), modified the Harmonized Tariff 
Schedule of the United States (``HTSUS'') as set forth in Annexes I and 
II of Publication 3722 of the U.S. International Trade Commission.
    On February 10, 2015, CBP published CBP Dec. 15-03 in the Federal 
Register (80 FR 7303) setting forth interim amendments to implement the 
preferential tariff treatment and other customs-related provisions of 
the AFTA and the Act. The majority of the AFTA implementing regulations 
set forth in CBP Dec. 15-03 and adopted, with one change, as final in 
this document have been included within new Subpart L of Part 10 of the 
CBP regulations (19 CFR part 10). In those cases in which AFTA 
implementation is more appropriate in the context of an existing 
regulatory provision, however, the AFTA regulatory text has been 
incorporated into an existing part within the CBP regulations. CBP Dec. 
15-03 also sets forth a number of cross-references and other 
consequential changes to existing regulatory provisions to clarify the 
relationship between those existing provisions and the new AFTA 
implementing regulations. Please refer to that document for further 
background information.
    Although the interim regulatory amendments were promulgated without 
prior public notice and comment procedures and took effect on February 
10, 2015, CBP Dec. 15-03 provided for the submission of public comments 
which would be considered before adoption of the interim regulations as 
a final rule. The prescribed public comment closed on April 13, 2015. 
CBP received one comment on CBP Dec. 15-03.

Discussion of Comments

    One response was received to the solicitation of comments on the 
interim rule set forth in CBP Dec. 15-03. The comment is discussed 
below.

Comment

    One commenter questioned whether the AFTA requires that Australian 
exporters be consulted before the interim regulations take effect.

CBP Response

    The changes proposed in the interim regulations took effect on the 
date of publication of the interim regulations.

[[Page 2086]]

As indicated above, CBP Dec. 15-03 provided for the submission of 
public comments which would be considered before adoption of the 
interim regulations as a final rule. All interested parties, including 
Australian exporters, were given the opportunity to submit public 
comments. No such public comments were received from or submitted by 
any party in response to CBP Dec. 15-03 that objected to the changes in 
the interim rules being included in a final rule.

Other Amendment

    This document clarifies 19 CFR 10.725(c) by removing the 
parenthetical cross reference to Sec. Sec.  10.746 and 10.747 and, 
instead, stating that the importer's actions must be ``pursuant to'' 
those CBP regulations.

Conclusion

    After further review of the matter, including consideration of the 
above-mentioned comment submitted in response to CBP's solicitation of 
public comment, CBP has determined to adopt as final, with a 
clarification, the interim rule published in the Federal Register (80 
FR 7303) on February 10, 2015.

Executive Order 12866

    This document is not a regulation subject to the provisions of 
Executive Order 12866 of September 30, 1993 (58 FR 51735, October 
1993), because it pertains to a foreign affairs function of the United 
States and implements an international agreement, as described above, 
and therefore is specifically exempted by section 3(d)(2) of Executive 
Order 12866.

Regulatory Flexibility Act

    CBP Dec. 15-03 was issued as an interim rule rather than a notice 
of proposed rulemaking because CBP had determined that the interim 
regulations involve a foreign affairs function of the United States 
pursuant to section 553(a)(1) of the Administrative Procedure Act 
(APA). As no notice of proposed rulemaking was required, the provisions 
of the Regulatory Flexibility Act, as amended (5 U.S.C. 601 et seq.), 
do not apply. Accordingly, this final rule is not subject to the 
regulatory analysis requirements or other requirements of 5 U.S.C. 603 
and 604.

Paperwork Reduction Act

    The collections of information contained in these regulations have 
previously been reviewed and approved by the Office of Management and 
Budget (OMB) in accordance with the requirements of the Paperwork 
Reduction Act (44 U.S.C. 3507) under control number 1651-0117, which 
covers many of the free trade agreement requirements that CBP 
administers, and 1651-0076, which covers general recordkeeping 
requirements. The collections of information in these regulations are 
in Sec. Sec.  10.723, 10.724, and 10.727 of title 19 of the Code of 
Federal Regulations (19 CFR 10.723, 10.724, and 10.727). This 
information is required in connection with general recordkeeping 
requirements (Sec.  10.727), as well as claims for preferential tariff 
treatment under the AFTA and the Act and will be used by CBP to 
determine eligibility for tariff preference under the AFTA and the Act. 
The likely respondents are business organizations including importers, 
exporters and manufacturers.
    The estimated total annual reporting burden associated with the 
collection of information in this final rule is 4,000 hours. Under the 
Paperwork Reduction Act, an agency may not conduct or sponsor and a 
person is not required to respond to a collection of information, 
unless it displays a valid OMB control number.

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 CBP revenue functions.

List of Subjects

19 CFR Part 10

    Alterations, Bonds, Customs duties and inspection, Exports, 
Imports, Preference programs, Repairs, Reporting and recordkeeping 
requirements, Trade agreements.

19 CFR Part 24

    Accounting, Customs duties and inspection, Financial and accounting 
procedures, Reporting and recordkeeping requirements, Trade agreements, 
User fees.

19 CFR Part 162

    Administrative practice and procedure, Customs duties and 
inspection, Penalties, Trade agreements.

19 CFR Part 163

    Administrative practice and procedure, Customs duties and 
inspection, Exports, Imports, Reporting and recordkeeping requirements, 
Trade agreements.

19 CFR Part 178

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

Amendment to the CBP Regulations

    For the reasons stated above, the interim rule amending Parts 10, 
24, 162, 163, and 178 of the CBP regulations (19 CFR parts 10, 24, 162, 
163, and 178), which was published at 80 FR 7303 on February 10, 2015, 
is adopted as a final rule with the following change:

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

0
1. The general authority citation for part 10, and the specific 
authority citation for Subpart L, continue to read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508, 
1623, 1624, 3314.
* * * * *
    Sections 10.721 through 10.748 also issued under 19 U.S.C. 1202 
(General Note 28, HTSUS) and Pub. L. 108-286, 118 Stat. 919 (19 
U.S.C. 3805 note).
* * * * *


Sec.  10.725  [Amended]

0
2. In Sec.  10.725, paragraph (c) is amended by removing the language, 
``(see Sec. Sec.  10.746 and 10.747 of this subpart)'' and adding in 
its place the language, ``pursuant to Sec. Sec.  10.746 and 10.747 of 
this subpart''.

R. Gil Kerlikowske,
Commissioner.
    Approved: January 11, 2016.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2016-00628 Filed 1-14-16; 8:45 am]
 BILLING CODE 9111-14-P