Supporting Laws/Regs

§ 10.191

19 CFR Ch. I (4–1–02 Edition)

section has not yet been processed by
Customs, an importer may substitute
an entry summary that has already
been identified to Customs for purposes
of substantiating the claim with another comparable entry summary, so
long as the amount of duty paid in connection with the replacement entry is
not less than the duty paid on the
entry that was identified to Customs
originally.
(3) Pending judicial review. If a summons involving the tariff classification
or the dutiability of an imported wool
product has been filed in the Court of
International Trade, Customs will
deem any entry summary at issue in
that judicial proceeding ineligible to
substantiate a duty refund claim.
(k) Penalties and liquidated damages. A
wool duty refund claimant’s failure to
comply with any of the procedural requirements set forth in this document,
or failure to adhere to all applicable
laws and regulations, may subject the
claimant to penalties, liquidated damages or other administrative sanctions.
[66 FR 20395, Apr. 23, 2001, as amended at 67
FR 3059, Jan. 23, 2002]

CARIBBEAN BASIN INITIATIVE
SOURCE: Sections 10.191 through 10.197
issued by T.D. 84–237, 49 FR 47993, Dec. 7, 1984,
unless otherwise noted.

§ 10.191 General.
(a) Statutory authority. Subtitle A,
Title II, Pub. L. 98–67, entitled the Caribbean Basin Economic Recovery Act
(19 U.S.C. 2701–2706) and referred to as
the Caribbean Basin Initiative (CBI),
authorizes the President to proclaim
duty-free treatment for all eligible articles from any beneficiary country.
(b) Definitions—(1) Beneficiary country. For purposes of § 10.191 through
§ 10.199 and except as otherwise provided in § 10.195(b), the term ‘‘beneficiary country’’ means any country or
territory or successor political entity
with respect to which there is in effect
a proclamation by the President designating such country, territory or successor political entity as a beneficiary
country in accordance with section
212(a)(1)(A) of the Caribbean Basin Economic
Recovery
Act
(19
U.S.C.
2702(a)(1)(A)).

(2) Eligible articles. Except as provided
herein, for purposes of § 10.191(a), the
term ‘‘eligible articles’’ means any
merchandise which is imported directly from a beneficiary country as
provided in § 10.193 and which meets the
country of origin criteria set forth in
§ 10.195 or in § 10.198b. The following
merchandise shall not be considered eligible articles entitled to duty-free
treatment under the CBI.
(i) Textile and apparel articles which
were not eligible articles for purposes
of the CBI on January 1, 1994, as the
CBI was in effect on that date.
(ii) Footwear not designated on August 5, 1983, as eligible articles for the
purpose of the Generalized System of
Preferences under Title V, Trade Act of
1974, as amended (19 U.S.C. 2461 through
2467).
(iii) Tuna, prepared or preserved in
any manner, in airtight containers.
(iv) Petroleum, or any product derived from petroleum, provided for in
headings 2709 and 2710, Harmonized
Tariff Schedule of the United States
(HTSUS).
(v) Watches and watch parts (including cases, bracelets and straps), of
whatever type including, but not limited to, mechanical, quartz digital or
quartz analog, if such watches or watch
parts contain any material which is
the product of any country with respect to which HTSUS column 2 rates
of duty apply.
(vi) Articles to which reduced rates
of duty apply under § 10.198a.
(vii) Sugars, sirups, and molasses,
provided for in subheadings 1701.11.00
and 1701.12.00, HTSUS, to the extent
that importation and duty-free treatment of such articles are limited by
Additional U.S. Note 4, Chapter 17,
HTSUS.
(viii) Articles subject to the provisions of the subheadings of Subchapter
III, from the beginning through
9903.85.21, Chapter 99, HTSUS, to the
extent that such provisions have not
been modified or terminated by the
President pursuant to section 213(e)(5)
of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(e)(5)).
(ix) Merchandise for which duty-free
treatment under the CBI is suspended
or withdrawn by the President pursuant to sections 213 (c)(2), (e)(1), or (f)(3)

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United States Customs Service, Treasury
of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703 (c)(2), (e)(1),
or (f)(3)).
(3) Wholly the growth, product, or manufacture of a beneficiary country. For
purposes of § 10.191 through § 10.199, the
expression ‘‘wholly the growth, product, or manufacture of a beneficiary
country’’ refers both to any article
which has been entirely grown, produced, or manufactured in a beneficiary country or two or more beneficiary countries and to all materials
incorporated in an article which have
been entirely grown, produced, or manufactured in any beneficiary country or
two or more beneficary countries, as
distinguished from articles or materials imported into a beneficiary country from a non-beneficiary country
whether or not such articles or materials were substantially transformed
into new or different articles of commerce after their importation into the
beneficiary country.
(4) Entered. For purposes of § 10.191
through § 10.199, the term ‘‘entered’’
means entered, or withdrawn from
warehouse for consumption, in the customs territory of the U.S.
[T.D. 84–237, 49 FR 47993, Dec. 7, 1984, as
amended by T.D. 89–1, 53 FR 51252, Dec. 21,
1988; T.D. 00–68, 65 FR 59657, Oct. 5, 2000; T.D.
01–17, 66 FR 9645, Feb. 9, 2001]

§ 10.192 Claim for exemption from
duty under the CBI.
A claim for an exemption from duty
on the ground that the CBI applies
shall be allowed by the port director
only if he is satisfied that the requirements set forth in this section and
§ 10.193 through § 10.198b have been met.
Duty-free treatment may be claimed at
the time of filing the entry summary
by placing the symbol ‘‘E’’ as a prefix
to the HTSUS subheading number for
each article for which such treatment
is claimed on that document.
[T.D. 84–237, 49 FR 47993, Dec. 7, 1984, as
amended by T.D. 89–1, 53 FR 51252, Dec. 21,
1988; T.D. 94–47, 59 FR 25570, May 17, 1994;
T.D. 00–68, 65 FR 59658, Oct. 5, 2000]

§ 10.193 Imported directly.
To qualify for treatment under the
CBI, an article shall be imported directly from a beneficiary country into
the customs territory of the U.S. For

§ 10.194
purposes of § 10.191 through § 10.198b the
words ‘‘imported directly’’ mean:
(a) Direct shipment from any beneficiary country to the U.S. without
passing through the territory of any
non-beneficiary country; or
(b) If the shipment is from any beneficiary country to the U.S. through the
territory of any non-beneficiary country, the articles in the shipment do not
enter into the commerce of any nonbeneficiary country while en route to
the U.S. and the invoices, bills of lading, and other shipping documents
show the U.S. as the final destination;
or
(c) If the shipment is from any beneficiary country to the U.S. through the
territory of any non-beneficiary country, and the invoices and other documents do not show the U.S. as the final
destination, the articles in the shipment upon arrival in the U.S. are imported directly only if they:
(1) Remained under the control of the
customs authority of the intermediate
country;
(2) Did not enter into the commerce
of the intermediate country except for
the purpose of sale other than at retail,
and the port director is satisfied that
the importation results from the original commericial transaction between
the importer and the producer or the
latter’s sales agent; and
(3) Were not subjected to operations
other than loading and unloading, and
other activities necessary to preserve
the articles in good condition.
[T.D. 84–237, 49 FR 47993, Dec. 7, 1984, as
amended by T.D. 00–68, 65 FR 59658, Oct. 5,
2000]

§ 10.194 Evidence of direct shipment.
(a) Documents constituting evidence of
direct shipment. The port director may
require that appropriate shipping papers, invoices, or other documents be
submitted within 60 days of the date of
entry as evidence that the articles
were ‘‘imported directly’’, as that term
is defined in § 10.193. Any evidence of direct shipment required shall be subject
to such verification as deemed necessary by the port director.
(b) Waiver of evidence of direct shipment. The port director may waive the
submission of evidence of direct shipment when otherwise satisfied, taking

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