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)

Page Range		2085-2086
FR Document		2016-00628

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 Issue 10 (Friday, January 15, 2016)

[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

Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Rules and Regulations 2085

unlikely to result in adverse or negative area is effective during the specific dates and 118 Stat. 919 (19 U.S.C. 3805 note),
comments. It, therefore: (1) is not a times established in advance by a Notice to which approved and made statutory
‘‘significant regulatory action’’ under Airmen. The effective date and time will changes to implement the AFTA. On
Executive Order 12866; (2) is not a thereafter be continuously published in the December 20, 2004, the President signed
Airport/Facility Directory.
‘‘significant rule’’ under DOT Proclamation 7857 to implement the
Regulatory Policies and Procedures (44 Issued in Seattle, Washington, on AFTA. The Proclamation, which was
FR 11034; February 26, 1979); and (3) December 28, 2015. published in the Federal Register on
does not warrant preparation of a Tracey Johnson, December 23, 2004 (69 FR 77133),
regulatory evaluation as the anticipated Manager, Operations Support Group, Western modified the Harmonized Tariff
impact is so minimal. Since this is a Service Center. Schedule of the United States
routine matter that only affects air traffic [FR Doc. 2016–00305 Filed 1–14–16; 8:45 am] (‘‘HTSUS’’) as set forth in Annexes I and
procedures and air navigation, it is BILLING CODE 4910–13–P II of Publication 3722 of the U.S.
certified that this rule, when International Trade Commission.
promulgated, does not have a significant On February 10, 2015, CBP published
economic impact on a substantial DEPARTMENT OF HOMELAND CBP Dec. 15–03 in the Federal Register
number of small entities under the SECURITY (80 FR 7303) setting forth interim
criteria of the Regulatory Flexibility Act. amendments to implement the
U.S. Customs and Border Protection preferential tariff treatment and other
Environmental Review customs-related provisions of the AFTA
The FAA has determined that this DEPARTMENT OF THE TREASURY and the Act. The majority of the AFTA
action qualifies for categorical exclusion implementing regulations set forth in
under the National Environmental 19 CFR Parts 10, 24, 162, 163, and 178 CBP Dec. 15–03 and adopted, with one
Policy Act in accordance with FAA change, as final in this document have
Order 1050.1F, ‘‘Environmental [USCBP–2015–0007; CBP Dec. 16–1] been included within new Subpart L of
Impacts: Policies and Procedures,’’ RIN 1515–AD59 Part 10 of the CBP regulations (19 CFR
paragraph 5–6.5a. This airspace action part 10). In those cases in which AFTA
is not expected to cause any potentially United States-Australia Free Trade implementation is more appropriate in
significant environmental impacts, and Agreement the context of an existing regulatory
no extraordinary circumstances exist provision, however, the AFTA
that warrant preparation of an AGENCIES: U.S. Customs and Border regulatory text has been incorporated
environmental assessment. Protection, Department of Homeland into an existing part within the CBP
Security; Department of the Treasury. regulations. CBP Dec. 15–03 also sets
Lists of Subjects in 14 CFR Part 71
ACTION: Final rule. forth a number of cross-references and
Airspace, Incorporation by reference, other consequential changes to existing
Navigation (air). SUMMARY: This document adopts as a regulatory provisions to clarify the
final rule, with one change, interim relationship between those existing
Adoption of the Amendment amendments to the U.S. Customs and provisions and the new AFTA
In consideration of the foregoing, the Border Protection (CBP) regulations that implementing regulations. Please refer
Federal Aviation Administration were published in the Federal Register to that document for further background
amends 14 CFR part 71 as follows: on February 10, 2015, as CBP Dec. 15– information.
03, to implement the preferential tariff Although the interim regulatory
PART 71—DESIGNATION OF CLASS A, treatment and other customs-related amendments were promulgated without
B, C, D, AND E AIRSPACE AREAS; AIR provisions of the United States- prior public notice and comment
TRAFFIC SERVICE ROUTES; AND Australia Free Trade Agreement. procedures and took effect on February
REPORTING POINTS 10, 2015, CBP Dec. 15–03 provided for
DATES: Effective February 16, 2016.
■ 1. The authority citation for Part 71 FOR FURTHER INFORMATION CONTACT: the submission of public comments
continues to read as follows: Textile Operational Aspects: Anita which would be considered before
Harris, Textile Operations Branch, adoption of the interim regulations as a
Authority: 49 U.S.C. 106(f), 106(g); 40103, final rule. The prescribed public
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, Office of International Trade, (202) 863–
6241. comment closed on April 13, 2015. CBP
1959–1963 Comp., p. 389.
Other Operational Aspects: Seth received one comment on CBP Dec. 15–
§ 71.1 [Amended] Mazze, Trade Policy and Programs, 03.
■ 2. The incorporation by reference in Office of International Trade, (202) 863– Discussion of Comments
14 CFR 71.1 of FAA Order 7400.9Z, 6567.
One response was received to the
Airspace Designations and Reporting Legal Aspects: Yuliya Gulis,
solicitation of comments on the interim
Points, dated August 6, 2015, effective Regulations and Rulings, Office of
rule set forth in CBP Dec. 15–03. The
September 15, 2015, is amended as International Trade, (202) 325–0042.
comment is discussed below.
follows: SUPPLEMENTARY INFORMATION:
Comment
Paragraph 5000: Class D Airspace. Background
One commenter questioned whether
* * * * * On May 18, 2004, the United States the AFTA requires that Australian
ANM CO D Denver, CO [Amended] and Australia (the ‘‘Parties’’) signed the exporters be consulted before the
Lhorne on DSK5TPTVN1PROD with RULES

Rocky Mountain Metropolitan Airport, CO United States-Australia Free Trade interim regulations take effect.
(Lat. 39°54′32″ N., Long. 105°07′02″ W.) Agreement (‘‘AFTA’’ or ‘‘Agreement’’).
On August 3, 2004, the President signed CBP Response
That airspace extending upward from the
surface to, but not including, 8,000 feet MSL, into law the United States-Australian The changes proposed in the interim
within a 5-mile radius of Rocky Mountain Free Trade Agreement Implementation regulations took effect on the date of
Metropolitan Airport. This Class D airspace Act (the ‘‘Act’’), Public Law 108–286, publication of the interim regulations.

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2086 Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Rules and Regulations

As indicated above, CBP Dec. 15–03 control number 1651–0117, which Amendment to the CBP Regulations
provided for the submission of public covers many of the free trade agreement For the reasons stated above, the
comments which would be considered requirements that CBP administers, and interim rule amending Parts 10, 24, 162,
before adoption of the interim 1651–0076, which covers general 163, and 178 of the CBP regulations (19
regulations as a final rule. All interested recordkeeping requirements. The CFR parts 10, 24, 162, 163, and 178),
parties, including Australian exporters, collections of information in these which was published at 80 FR 7303 on
were given the opportunity to submit regulations are in §§ 10.723, 10.724, and February 10, 2015, is adopted as a final
public comments. No such public 10.727 of title 19 of the Code of Federal rule with the following change:
comments were received from or Regulations (19 CFR 10.723, 10.724, and
submitted by any party in response to 10.727). This information is required in PART 10—ARTICLES CONDITIONALLY
CBP Dec. 15–03 that objected to the connection with general recordkeeping FREE, SUBJECT TO A REDUCED
changes in the interim rules being requirements (§ 10.727), as well as RATE, ETC.
included in a final rule. claims for preferential tariff treatment
under the AFTA and the Act and will ■ 1. The general authority citation for
Other Amendment part 10, and the specific authority
be used by CBP to determine eligibility
This document clarifies 19 CFR for tariff preference under the AFTA citation for Subpart L, continue to read
10.725(c) by removing the parenthetical and the Act. The likely respondents are as follows:
cross reference to §§ 10.746 and 10.747 business organizations including Authority: 19 U.S.C. 66, 1202 (General
and, instead, stating that the importer’s importers, exporters and manufacturers. Note 3(i), Harmonized Tariff Schedule of the
actions must be ‘‘pursuant to’’ those The estimated total annual reporting United States), 1321, 1481, 1484, 1498, 1508,
CBP regulations. burden associated with the collection of 1623, 1624, 3314.
Conclusion information in this final rule is 4,000 * * * * *
hours. Under the Paperwork Reduction Sections 10.721 through 10.748 also issued
After further review of the matter, Act, an agency may not conduct or under 19 U.S.C. 1202 (General Note 28,
including consideration of the above- sponsor and a person is not required to HTSUS) and Pub. L. 108–286, 118 Stat. 919
mentioned comment submitted in respond to a collection of information, (19 U.S.C. 3805 note).
response to CBP’s solicitation of public unless it displays a valid OMB control * * * * *
comment, CBP has determined to adopt number.
as final, with a clarification, the interim § 10.725 [Amended]
rule published in the Federal Register Signing Authority ■ 2. In § 10.725, paragraph (c) is
(80 FR 7303) on February 10, 2015. This document is being issued in amended by removing the language,
accordance with § 0.1(a)(1) of the CBP ‘‘(see §§ 10.746 and 10.747 of this
Executive Order 12866 subpart)’’ and adding in its place the
regulations (19 CFR 0.1(a)(1)) pertaining
This document is not a regulation to the authority of the Secretary of the language, ‘‘pursuant to §§ 10.746 and
subject to the provisions of Executive Treasury (or his/her delegate) to 10.747 of this subpart’’.
Order 12866 of September 30, 1993 (58 approve regulations related to certain R. Gil Kerlikowske,
FR 51735, October 1993), because it CBP revenue functions.
pertains to a foreign affairs function of Commissioner.
the United States and implements an List of Subjects Approved: January 11, 2016.
international agreement, as described 19 CFR Part 10 Timothy E. Skud,
above, and therefore is specifically Deputy Assistant Secretary of the Treasury.
Alterations, Bonds, Customs duties
exempted by section 3(d)(2) of [FR Doc. 2016–00628 Filed 1–14–16; 8:45 am]
and inspection, Exports, Imports,
Executive Order 12866. BILLING CODE 9111–14–P
Preference programs, Repairs, Reporting
Regulatory Flexibility Act and recordkeeping requirements, Trade
CBP Dec. 15–03 was issued as an agreements.
DEPARTMENT OF HOMELAND
interim rule rather than a notice of 19 CFR Part 24 SECURITY
proposed rulemaking because CBP had Accounting, Customs duties and
determined that the interim regulations U.S. Customs and Border Protection
inspection, Financial and accounting
involve a foreign affairs function of the procedures, Reporting and
United States pursuant to section DEPARTMENT OF THE TREASURY
recordkeeping requirements, Trade
553(a)(1) of the Administrative agreements, User fees.
Procedure Act (APA). As no notice of 19 CFR Part 12
proposed rulemaking was required, the 19 CFR Part 162 [CBP Dec. 16–02]
provisions of the Regulatory Flexibility Administrative practice and
Act, as amended (5 U.S.C. 601 et seq.), RIN 1515–AE07
procedure, Customs duties and
do not apply. Accordingly, this final inspection, Penalties, Trade agreements.
rule is not subject to the regulatory Extension of Import Restrictions
analysis requirements or other 19 CFR Part 163 Imposed on Archaeological Material
requirements of 5 U.S.C. 603 and 604. Originating in Italy and Representing
Administrative practice and
the Pre-Classical, Classical, and
procedure, Customs duties and
Paperwork Reduction Act Imperial Roman Periods
inspection, Exports, Imports, Reporting
The collections of information and recordkeeping requirements, Trade AGENCY: Customs and Border Protection,
Lhorne on DSK5TPTVN1PROD with RULES

contained in these regulations have agreements. Department of Homeland Security;
previously been reviewed and approved Department of the Treasury.
by the Office of Management and 19 CFR Part 178
ACTION: Final rule.
Budget (OMB) in accordance with the Administrative practice and
requirements of the Paperwork procedure, Exports, Imports, Reporting SUMMARY: This document amends
Reduction Act (44 U.S.C. 3507) under and recordkeeping requirements. Customs and Border Protection (CBP)

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Document Created: 2018-02-02 12:31:53
Document Modified: 2018-02-02 12:31:53

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective February 16, 2016.
Contact		Textile Operational Aspects: Anita Harris, Textile Operations Branch, Office of International Trade, (202) 863-6241.
FR Citation		81 FR 2085
RIN Number		1515-AD59
CFR Citation		19 CFR 10 19 CFR 162 19 CFR 163 19 CFR 178 19 CFR 24
CFR Associated		Alterations; Bonds; Customs Duties and Inspection; Exports; Imports; Preference Programs; Repairs; Reporting and Recordkeeping Requirements; Trade Agreements; Administrative Practice and Procedure; Penalties; Accounting; Financial and Accounting Procedures and User Fees

81 FR 2085 - United States-Australia Free Trade Agreement

DEPARTMENT OF HOMELAND SECURITYU.S. Customs and Border ProtectionDEPARTMENT OF THE TREASURY

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

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