Regulation (15 CFR)

Attachment 7 - 15.CFR.2011
Federal Register / Vol. 61, No. 104 / Wednesday, May 29, 1996 / Rules and Regulations
airspace within the Great Barrington, MA,
and Hudson, NY, Class E airspace areas.

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Issued in Burlington, MA, on May 28, 1996
David J. Hurley,
Manager, Air Traffic Division, New England
Region.
[FR Doc. 96–13424 Filed 5–28–96; 8:45 am]
BILLING CODE 4910–B–M

OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
15 CFR Part 2011
Implementation of Tariff-Rate Quota for
Imports of Sugar
Office of the United States
Trade Representative (USTR).
ACTION: Final rule.
AGENCY:

This rule makes final the
interim final rule published on October
4, 1990 in the Federal Register
governing certificates of quota eligibility
for imports of sugar, specialty sugar, and
allocations for ‘‘Other Specified
Countries and Areas’’, with a change
responding to comments received on
that interim final rule and with
conforming changes to reflect the entry
into force of the Agreement Establishing
the World Trade Organization (WTO).
EFFECTIVE DATE: May 29, 1996.
ADDRESSES: Office of the United States
Trade Representative, Office of
Agricultural Affairs, 600 17th Street
NW., Washington, DC 20506.
FOR FURTHER INFORMATION CONTACT:
Thomas Perkins, Senior Economist for
Agricultural Affairs, Room 421, Office of
the United States Trade Representative,
Washington, DC 20506; telephone: (202)
395–6127.
SUPPLEMENTARY INFORMATION: As a result
of the Uruguay Round Agreements,
approved by the Congress in section 101
of the Uruguay Round Agreements Act
(URAA) (Pub. L. 103–465), the United
States has replaced the previous tariffrate quota (TRQ) for imports of certain
sugars, syrups, and molasses with a new
tariff-rate quota provided in Schedule
XX—United States of America annexed
to the Marrakesh Protocol to the General
Agreement on Tariffs and Trade 1994
(GATT 1994). Pursuant to section 111 of
the URAA, the President proclaimed a
number of changes to the Harmonized
Tariff Schedule of the United States
(HTS) to implement the new sugar TRQ
(President Proclamation No. 6763 of
December 23, 1994). The changes
include, among other things, changes in
the HTS item numbers for imports of
sugar, the deletion of notes to the HTS,
SUMMARY:

and the proclaiming of new notes to the
HTS.
A number of conforming changes
need to be made to the sugar regulations
issued by the United States Trade
Representative (USTR) to reflect these
changes to the HTS. This rule makes
those conforming changes, as well as
some technical and clerical
amendments. Those conforming
changes include correcting the
references to the HTS to reflect the new
HTS item numbers and removing
subpart C as unnecessary in light of the
fact that the allocations under the new
TRQ will be announced annually.
In addition, when the United States
Trade Representative promulgated the
current rule on October 4, 1990 (55 FR
40648), it did so as an interim rule and
invited public comments. This rule
includes an amendment to the
definition of specialty sugar in response
to the comments received.
Summary of Issues Raised by Public
Comments
Four public comments were received.
Specialty Sugars
One commenter requested that certain
edible sugar decorations be added to the
list of products eligible for potential
treatment as ‘‘specialty sugars.’’
Pursuant to this public comment, this
final rule adds to that list sugar
decorations. Two informal comments
that were received after the December 4,
1990, deadline requested that various
other specified sugar products be added
to the list of products eligible for
treatment as ‘‘specialty sugars.’’ The
Office of the United States Trade
Representative, responding to these
written comments, has added to the list:
golden granulated sugar, muscovado,
molasses sugar and sugar cubes. The
United States Trade Representative has
determined that these specific items are
appropriate because they represent
specialty sugars within the normal
commerce of the United States.
The United States Trade
Representative also has determined that
it is appropriate to provide in the
definition for other forms of sugar
determined by the United States Trade
Representative to be specialty sugar
products within the normal commerce
of the United States.
Another commenter requested that
rock candy be removed from the list of
products which are eligible for potential
treatment as specialty sugar. The
commenter’s suggestion was not
adopted primarily because rock candy
appears to qualify as specialty sugar.

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Reallocation of Quota Shortfalls
Finally, a commenter suggested that
the rule contain a provision that if a
country were not fully utilizing its
allocation under the tariff-rate quota,
then that country’s allocation would be
automatically reallocated to other
countries. The commenter’s suggestion
was not adopted in the final rule
because a general provision to that effect
is unnecessary given alternative means
by which unused allocations may be
reallocated on a case-by-case bais when
appropriate. Moreover, the HTS
authorizes the USTR, in consultation
with the Secretaries of State and
Agriculture, to modify or suspend a
country’s allocation for the remainder of
a quota year whenever he or she
determines that a country will not be
filling such allocation and he or she
finds that such action is appropriate to
carry out the rights or obligations of the
United States under any international
agreement to which the United States is
a party or is appropriate to promote the
economic interests of the United States.
Review
This rule has been determined to be
a ‘‘significant regulatory action’’ under
Executive Order 12866.
Pursuant to the Unfunded Mandates
Reform Act of 1995, USTR has assessed
the effects of this rulemaking action on
state, local, and tribal governments, and
the private sector. This action does not
compel the expenditure of $100 million
or more by any state, local, or tribal
government, or by anyone in the private
sector, and therefore a statement under
section 202 of the Act is not required.
Pursuant to the Paperwork Reduction
Act of 1980, the Office of Management
and Budget has approved the
information collection requirements
imposed by this rule under Office of
Management and Budget control
number 0551–0014. Comments on any
burden resulting from the information
collection requirements of this
regulation may be forwarded to: Desk
Officer for Agriculture, Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Washington, DC 20503. These programs
are not subject to the provisions of
Executive Order 12372 which required
intergovernmental consultation with
State and local officials.
No regulatory flexibility analysis is
required for this rule since neither 5
U.S.C. 553 nor any other provision of
law requires publication of a general
notice of proposed rulemaking with
respect to this rule. However, the United
States Trade Representative has also
determined that the rule will not have

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Federal Register / Vol. 61, No. 104 / Wednesday, May 29, 1996 / Rules and Regulations

a significant economic impact on a
substantial number of small entities.
List of Subjects in 15 CFR Part 2011
Certificates of quota eligibility,
imports, specialty sugars, sugar.
Accordingly, the interim rule
amending 15 CFR part 2011 which
published at 55 FR 40648 (October 4,
1990) is adopted as a final rule with the
following changes:
PART 2011—ALLOCATION OF TARIFFRATE QUOTA ON IMPORTED
SUGARS, SYRUPS AND MOLASSES
1. The authority citation for part 2011
is revised to read as follows:
Authority: 19 U.S.C. 3601, Presidential
Proclamation No. 6763, Additional U.S. note
5 to chapter 17 of the Harmonized Tariff
Schedule of the United States.

Section 2011.101 is revised to read as
follows:
§ 2011.101

General.

This subpart sets forth the terms and
conditions under which certificates of
quota eligibility will be issued to foreign
countries that have been allocated a
share of the U.S. sugar tariff-rate quota.
Except as otherwise provided in this
subpart, sugar imported from a foreign
country may not be entered unless such
sugar is accompanied by a certificate of
quota eligibility. This subpart applies
only to the ability to enter sugar at the
in-quota tariff rates of the quota
(subheadings 1701.11.10, 1701.12.10,
1701.91.10, 1701.99.10, 1702.90.10, and
2106.90.44 of the HTS). Nothing in this
subpart shall affect the ability to enter
articles at the over-quota tariff rate
(subheadings 1701.11.50, 1701.12.50,
1701.91.30, 1701.99.50, 1702.90.20,
2106.90.46).
3. Section 2011.102 is amended by
redesignating paragraphs (g) through (m)
as paragraph (h) through (n)
respectively, adding a new paragraph
(g), and revising paragraphs (a), (c), (e),
(f), (j), (k), (l), and (n) (as so
redesignated) to read as follows:
§ 2011.102

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Definitions.

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(a) ‘‘Additional U.S. Note 5’’ means
additional U.S. Note 5 to chapter 17 of
the HTS, including any amendments
thereto.
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(c) ‘‘Certificate of quota eligibility’’ or
‘‘certificate’’ means a certificate issued
by the Secretary to a foreign country
that, when duly executed and issued by
the certifying authority of such foreign
country, authorizes the entry into the

United States of sugar produced in such
country.
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(e) ‘‘Enter’’ or ‘‘Entry’’ means to enter
or withdraw from warehouse, or the
entry or withdrawal from warehouse, for
consumption in the customs territory of
the United States.
(f) ‘‘Foreign country’’ means, for any
quota period, any foreign country or
area with which an agreement or
arrangement described in section
2011.106 is in effect for that quota
period and to which the United States
Trade Representative has allocated a
particular quantity of the quota.
(g) ‘‘HTS’’ means the Harmonized
Tariff Schedule of the United States.
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(j) ‘‘Quota’’ means the tariff-rate quota
on imports of sugar provided in
additional U.S. Note 5.
(k) ‘‘Quota period’’ means the period
October 1 of a calendar year through
September 30 of the following calendar
year.
(1) ‘‘Raw value’’ has the meaning
provided in additional U.S. Note 5.
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(n) ‘‘Sugar’’ means sugars, syrups, and
molasses described in subheadings
1701.11.10, 1701.12.10, 1701.91.10,
1701.99.10, 1702.90.10, and 2106.90.44
of the HTS, but does not include for any
foreign country for any quota period
specialty sugars as defined in subpart B
of this part if a quantity of the quota for
that quota period has been reserved for
specialty sugars and an amount of that
quota quantity has been allocated to that
country.
4. Section 2011.103 is amended by
revising paragraphs (a) and (b)(3) to read
as follows:
§ 2011.103

Entry into the United States.

(a) General. Except as otherwise
provided in §§ 2011.104, 2011.109, and
2011.110, no sugar that is the product of
a foreign country may be permitted
entry unless at the time of entry the
person entering such sugar presents to
the appropriate customs official a valid
and properly executed certificate of
quota eligibility for such sugar.
(b) * * *
(3) This paragraph (b) shall not affect
the manner in which the amount of
sugar (raw value) entered is determined
fo purposes of administering the quota.
5. Section 2011.104(a) is revised to
read as follows:
§ 2011.104

Waiver.

(a) General. The Secretary may waive,
with respect to individual shipments,
any or all of the requirements of this
subpart if he or she determines that a

waiver will not impair the proper
operation of the sugar quota system, that
it will not have the effect of modifying
the allocation of sugar made pursuant to
the provisions of subdivision (b) of
additional U.S. Note 5, and that such
waiver is justified by unusual,
unavoidable, or otherwise appropriate
circumstances. Such circumstances
include, but are not limited to, loss or
destruction of the certificate,
unavoidable delays in transmittal of the
certificate to the port of entry, and
clerical errors in the execution or
issuance of the certificate.
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6. Section 2011.105(b) is revised to
read as follows:
§ 2011.105 Form and applicability of
certificate.

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(b) Other limitations. The Secretary
may attach such other terms,
limitations, or conditions to individual
certificates of quota eligibility as he or
she determines are appropriate to carry
out the purposes of this subpart,
provided that such other terms,
limitations, or conditions will not have
the effect of modifying the allocation of
sugar made pursaunt to the provisions
of subdivision (b) of additional U.S.
Note 5. Such terms, limitations, or
conditions may include, but are not
limited to, maximum quantities per
certificate and a specified period of time
during which the certificate shall be
valid. In no event shall the maximum
quantity per certificate exceed 10,000
short tons.
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7. Section 2011.107(b) introductory
text is revised to read as follows:
§ 2011.107 Issuance of certificates to
foreign countries.

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(b) Adjustments. The Secretary may
adjust the amount of certificates issued
to a certifying authority for any quota
period, provided that such adjustment
will not have the effect of modifying the
allocation of sugar made pursaunt to the
provisions of subdivision (b) of
additional U.S. Note 5 to reflect:
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8. Section 2011.109(a) is revised to
read as follows:
§ 2011.109 Suspension or revocation of
individual certificates.

(a) Suspension or revocation. The
Secretary may suspend, revoke, modify
or add further limitations to any
certificate if the Secretary determines
that such action or actions is necessary
to ensure the effective operation of the
import quota system for sugar and that

Federal Register / Vol. 61, No. 104 / Wednesday, May 29, 1996 / Rules and Regulations
such suspension, revocation,
modification or addition of further
limitations will not have the effect of
modifying the allocation of sugar made
pursuant to the provisions of
subdivision (b) of additional U.S. Note
5.
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9. Section 2011.201 is revised to read
as follows:
§ 2011.201

General.

This subpart sets forth the terms and
conditions under which certificates will
be issued to U.S. importers for
importing specialty sugars from
specialty sugar source countries.
Specialty sugars imported from
specialty sugar source countries may not
be entered unless accompanied by a
specialty sugar certificate. This subpart
applies only to the ability to enter
specialty sugar at the in-quota tariff
rates of the quota (subheadings
1701.11.10, 1701.12.10, 1701.91.10,
1701.99.10, 1702.90.10, and 2106.90.44
of the HTS). Nothing in this subpart
shall affect the ability to enter articles at
the over-quota tariff rate (subheadings
1701.11.50, 1701.12.50, 1701.91.30,
1701.99.50, 1702.90.20, 2106.90.46).
10. Section 2011.202 is amended by
removing paragraph (g), redesignating
paragraphs (h) through (j) as paragraphs
(g) through (i), respectively, revising
paragraphs (b), (c), (f), (g), and (i), as
redesignated, and adding a new
paragraph (j) as follows:
§ 2011.202

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Definitions.

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(b) ‘‘Certificate’’ means a specialty
sugar certificate issued by the Certifying
Authority permitting the entry of
specialty sugar.
(c) ‘‘Certifying Authority’’ means the
Team Leader, Import Quota Programs,
Foreign Agricultural Service, U.S.
Department of Agriculture, or his or her
designee.
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(f) ‘‘Person’’ means any individual,
partnership, corporation, association,
estate, trust, or other legal entity, and,
wherever applicable, any unit,
instrumentality, or agency, of a
government, domestic or foreign.
(g) ‘‘Quota’’ means the tariff-rate quota
on imports of sugar provided in
additional U.S. Note 5 to chapter 17 of
the Harmonized Tariff Schedule of the
United States.
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(i) ‘‘Specialty sugar’’ means brown
slab sugar (also known as slab sugar
candy), pearl sugar (also known as perl
sugar, perle sugar, and nibs sugar),
vanilla sugar, rock candy, demerara

sugar, dragees for cooking and baking,
fondant (a creamy blend of sugar and
glucose), ti light sugar (99.2% sugar
with the residual comprised of the
artificial sweeteners aspartame and
acesulfame K), caster sugar, golden
syrup, ferdiana granella grossa, golden
granulated sugar, muscovado, molasses
sugar, sugar decorations, sugar cubes,
and other sugars, as determined by the
United States Trade Representative, that
would be considered specialty sugar
products within the normal commerce
of the United States, all of which in
addition:
(1) are sugars, syrups, or molasses
described in subheading 1701.11.10,
1701.12.10, 1701.91.10, 1701.99.10,
1702.90.10, or 2106.90.44 of the
Harmonized Tariff Schedule of the
United States,
(2) are the product of a specialty sugar
source country, and
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(j) ‘‘Specialty sugar source country’’
means any country or area to which the
United States Trade Representative has
allocated an amount of the quantity
reserved for the importation of specialty
sugars under additional U.S. Note 5 to
chapter 17 of the Harmonized Tariff
Schedule of the United States.
11. Section 2011.203 is amended by
revising paragraphs (a) and (c) to read as
follows:
§ 2011.203 Issuance of specialty sugar
certificates.

(a) Specialty sugars imported into the
United States from specialty sugar
source countries may be entered only if
such specialty sugars are accompanied
by a certificate issued by the Certifying
Authority.
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(c) Subject to quota availability, an
unlimited number of complying
shipments may enter under a given
certificate and a given certificate may
cover more than one type of specialty
sugar. Issuance of a certificate does not
guarantee the entry of any specific
shipment of specialty sugar, but only
permits entry of such sugar if the
amount allocated to the specialty sugar
source country is not already filled.
12. Section 2011.204 is revised to read
as follows:
§ 2011.204

Entry of specialty sugars.

An importer or the importer’s agent
must present a certificate to the
appropriate customs official at the date
of entry of specialty sugars. Entry of
specialty sugars shall be allowed only in
conformity with the description of
sugars and other conditions, if any,
stated in the certificate.

26785

13. Section 2011.206 is amended by
revising paragraph (c) to read as follows:
§ 2011.206 Suspension or revocation of
individual certificates.

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(c) The determination of the
Certifying Authority under paragraph (a)
that the importer has failed to comply
with the requirements of this subpart
may be appealed to the Director, Import
Policy and Trade Analysis Division,
Foreign Agricultural Service (FAS), U.S.
Department of Agriculture, Washington,
D.C. 20250, within 30 days from the
date of suspension or revocation. The
request for reconsideration shall be
presented in writing and shall
specifically state the reason or reasons
why such determination should not
stand. The Director shall provide such
person with an opportunity for an
informal hearing on such matter. A
further appeal may be made to the
Administrator, FAS, U.S. Department of
Agriculture, Washington, D.C. 20250,
within five working days of receipt of
the notification of the Director’s
decision. The Certifying Authority may
take action under paragraph (b) during
the pendency of any appeal.
14. Section 2011.207(a) is revised to
read as follows:
§ 2011.207
system.

Suspension of the certificate

(a) Suspension. The U.S. Trade
Representative may suspend the
provisions of this subpart whenever he
or she determines that the quota is no
longer in force or that this subpart is no
longer necessary to implement the
quota. Notice of such suspension and
the effective date thereof shall be
published in the Federal Register.
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15. Subpart B of part 2011 is amended
by adding § 2011.208 to read as follows:
§ 2011.208 Paperwork Reduction Act
assigned number.

The Office of Management and Budget
(OMB) has approved the information
collection requirements contained in the
regulations in this subpart in
accordance with 44 U.S.C. Chapter 25
and OMB control number 0551–0014
has been assigned with corresponding
clearance effective through April 30,
1997.
Subpart C—[Removed]
16. Subpart C of part 2011 is removed.
Signed at Washington, D.C. on May 15,
1996.
Charlene Barshefsky
Acting United States Trade Representative
[FR Doc. 96–12807 Filed 5–28–96; 8:45 am]
BILLING CODE 3190–01–M