[Federal Register: August 25, 2008 (Volume 73, Number 165)]
[Rules and Regulations]
[Page 49934-49939]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25au08-3]
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DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
DEPARTMENT OF THE TREASURY
[Docket No. USCBP-2008-0052; CBP Dec. 08-32]
19 CFR Parts 12 and 163
RIN 1505-AB98
Entry Requirements for Certain Softwood Lumber Products Exported
From Any Country Into the United States
AGENCIES: Customs and Border Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Interim rule; solicitation of comments.
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SUMMARY: This document sets forth interim amendments to title 19 of the
Code of Federal Regulations (CFR) that prescribe special entry
requirements applicable to certain softwood lumber and softwood lumber
products exported from any country into the United States. The softwood
lumber and softwood lumber products subject to these interim entry
requirements are those described in section 804(a) within Title VIII
(Softwood Lumber Act of 2008 or ``the Act'') of the Tariff Act of 1930,
as added by section 3301 of Title III, Subtitle D, of the Food,
Conservation, and Energy Act of 2008 (Pub. L. 110-246, enacted June 18,
2008). Within Title VIII, section 803 requires the President to
establish and maintain an importer declaration program with respect to
the importation of certain softwood lumber and softwood lumber products
and prescribes special entry requirements whereby importers must submit
the export price, estimated export charge, if any, and an importer
declaration with the entry summary. There are also new recordkeeping
requirements applicable to certain imports of softwood lumber home
packages and kits which are subject to declaration requirements, but
which are not subject to the softwood lumber importer declaration
program of section 803 of the Act. These interim amendments set forth
the procedural and documentation requirements necessary to implement
the entry requirements specified in the statute.
DATES: This interim rule is effective on September 18, 2008. Comments
must be received on or before October 24, 2008.
ADDRESSES: You may submit comments, identified by docket number, by one
of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments via Docket No. USCBP
2008-0052.
Mail: Trade and Commercial Regulations Branch, Regulations
and Rulings, U.S. Customs and Border Protection, 1300 Pennsylvania
Avenue, NW. (Mint Annex), Washington, DC 20229.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to http://www.regulations.gov, including any
personal information provided. For detailed instructions on submitting
comments and additional information on the rulemaking process, see the
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov. Submitted comments
may also be inspected during regular business days between the hours of
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch,
Regulations and Rulings, Office of International Trade, U.S. Customs
and Border Protection, 799 9th Street, NW., 5th Floor, Washington, DC.
Arrangements to inspect submitted comments should be made in advance by
calling Joseph Clark at (202) 572-8768.
FOR FURTHER INFORMATION CONTACT: Joseph M. Rees, Director, Trade
Agreements and Communications Division, Office of International Trade,
Tel: (202) 863-6065.
SUPPLEMENTARY INFORMATION:
Public Participation
Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of the
interim rule. Customs and Border Protection (CBP) also invites comments
that relate to the economic, environmental, or federalism effects that
might result from this interim rule. Comments that will provide the
most assistance to CBP in developing these procedures will reference a
specific portion of the interim rule, explain the reason for any
recommended change, and include data, information, or authority that
supports such recommended change.
Background
I. Softwood Lumber Act of 2008: Importer Declaration Program
Section 3301, within Title III, Subtitle D, of the Food,
Conservation, and Energy Act of 2008 (Pub. L. 110-246) was enacted June
18, 2008, and amends the Tariff Act of 1930 (19 U.S.C. 1202 et seq.) by
adding a new Title VIII, entitled the ``Softwood Lumber Act of 2008''
(``the Act''). The Act requires the President to establish and maintain
an importer declaration program with respect to the importation of
certain softwood lumber and softwood lumber products and prescribes
special entry requirements whereby importers must provide the export
price, estimated export charge, if any, and an importer declaration
with the entry summary documentation. The Act also imposes new
recordkeeping requirements applicable to certain imports of softwood
lumber home packages and kits.
Title VIII is comprised of sections 801 through 809, which set
forth the components of the softwood lumber importer declaration
program. These sections, in pertinent part:
Define certain terms and phrases applicable to the program
(section 802).
Prescribe entry requirements and the establishment of an
electronic record thereof (section 803).
Establish the scope of the program and require the
importer to retain and produce documentation pertaining to the entry of
certain softwood lumber home packages and kits (section 804).
[[Page 49935]]
Require the Department of Commerce to make monthly
determinations as to export charges to be collected by a country of
export from exporters of covered softwood lumber products to ensure
compliance with any international agreements entered into by that
country and the United States (section 805).
Require the Secretary of the Treasury to conduct
reconciliations to ensure the proper implementation and operation of
international agreements entered into between a country of export of
softwood lumber or softwood lumber products described in section 804(a)
and the United States. The Secretary will reconcile: (1) The export
price declared by a United States importer pursuant to section
803(b)(1) with the export price reported to the United States by the
country of export, if any; and (2) the export price declared by a
United States importer pursuant to section 803(b)(1) with the revised
export price reported to the United States by the country of export, if
any (section 806).
Require the Secretary of the Treasury to periodically
verify the declarations made by a United States importer pursuant to
section 803(c), including a determination as to whether the export
price declared by a United States importer is the same as the export
price provided on the export permit, if any, issued by the country of
export and whether the estimated export charge declared by a United
States importer pursuant to section 803(b)(2) is consistent with the
determination published by the Under Secretary for International Trade
of the Department of Commerce pursuant to section 805(b) (section 807).
Prescribe applicable penalties (section 808).
Require the submission of congressional reports by various
government entities (section 809).
II. Softwood Lumber Act of 2008: Entry Requirements
Section 803 requires importers of covered softwood lumber and
softwood lumber products (i.e., those products described in section
804(a) of the Act) to submit to CBP certain data with the entry
summary. The required entry information consists of:
The export price for each line of softwood lumber or
softwood lumber products (as defined in section 802(5));
The estimated export charge, if any, applicable to each
line of softwood lumber or softwood lumber products as calculated by
applying the percentage determined and published by the Under Secretary
for International Trade of the Department of Commerce, pursuant to
section 805, to the export price; and
An importer declaration that verifies that ``the person
has made appropriate inquiry, including seeking appropriate
documentation from the exporter and consulting the determinations
published by the Under Secretary for International Trade of the
Department of Commerce pursuant to section 805(b)'' and, to the best of
the person's knowledge and belief, the export price provided is
determined in accordance with the definition set forth in section
802(5), the export price provided is consistent with the export price
provided on the export permit, if any, granted by the country of
export, and the exporter has paid, or committed to pay, all export
charges due in accordance with the volume, export price, and export
charge rate or rates, if any, as calculated under an international
agreement entered into by the country of export and the United States
and consistent with the export charge determinations published by the
Under Secretary for International Trade of the Department of Commerce.
III. Description of Softwood Lumber and Softwood Lumber Products
Covered by the Softwood Lumber Act of 2008
Section 804 of the Act sets forth the scope of softwood lumber and
softwood lumber products covered by the importer declaration program
established under section 803. All softwood lumber and softwood lumber
products classified under subheading 4407.10.00, 4409.10.10,
4409.10.20, or 4409.10.90 of the Harmonized Tariff Schedule of the
United States (HTSUS) are subject to the importer declaration program
established under section 803 including the following softwood lumber,
flooring, and siding:
(1) Coniferous wood, sawn or chipped lengthwise, sliced or peeled,
whether or not planed, sanded, or finger-jointed, of a thickness
exceeding 6 millimeters;
(2) Coniferous wood siding (including strips and friezes for
parquet flooring, not assembled) continuously shaped (tongued, grooved,
rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like)
along any of its edges or faces, whether or not planed, sanded, or
finger-jointed;
(3) Other coniferous wood (including strips and friezes for parquet
flooring, not assembled) continuously shaped (tongued, grooved,
rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like)
along any of its edges or faces (other than wood moldings and wood
dowel rods) whether or not planed, sanded, or finger-jointed;
(4) Coniferous wood flooring (including strips and friezes for
parquet flooring, not assembled) continuously shaped (tongued, grooved,
rabbeted, chamfered, v-jointed, beaded, molded, rounded, or the like)
along any of its edges or faces, whether or not planed, sanded, or
finger-jointed; and
(5) Coniferous drilled and notched lumber and angle cut lumber.
In addition, any product classified under subheading 4409.10.05 of
the HTSUS that is continually shaped along its end or side edges, and
unless excepted or excluded from the declaration requirement, softwood
lumber products that are stringers, radius-cut box-spring frame
components, fence pickets, truss components, pallet components, and
door and window frame parts classified under subheading 4418.90.46.95,
4421.90.70.40, or 4421.90.97.40 of the HTSUS are covered by the Act.
The following products are not subject to the importer declaration
program established under section 803 because they are defined as
excluded from the program:
(1) Trusses and truss kits, properly classified under subheading
4418.90 of the HTSUS;
(2) I-joist beams;
(3) Assembled box-spring frames;
(4) Pallets and pallet kits, properly classified under subheading
4415.20 of HTSUS;
(5) Garage doors;
(6) Edge-glued wood, properly classified under subheading
4421.90.97.40 of the HTSUS;
(7) Complete door frames;
(8) Complete window frames;
(9) Furniture;
(10) Articles brought into the United States temporarily and for
which an exemption from duty is claimed under subchapter XIII of
chapter 98 of the HTSUS; and
(11) Household and personal effects.
Also, the following softwood lumber products are not subject to the
importer declaration program established under section 803 because they
are defined as excepted from the program:
(1) Stringers (pallet components used for runners), if the
stringers have at least two notches on the side, positioned at equal
distance from the center, to properly accommodate forklift blades; and
are properly classified under subheading 4421.90.97.40 of the HTSUS;
(2) Box-spring frame kits, if the kits contain two wooden side
rails; two wooden end (or top) rails; and varying numbers of wooden
slats; and the side rails and the end rails are radius-cut at both
ends. Box spring frame kits must
[[Page 49936]]
be individually packaged, and contain the exact number of wooden
components needed to make the box-spring frame described on the entry
documents, with no further processing required. None of the components
contained in the package may exceed one inch in actual thickness or 83
inches in length.
(3) Radius-cut box-spring frame components, not exceeding one inch
in actual thickness or 83 inches in length, ready for assembly without
further processing, if radius cuts are present on both ends of the
boards and are substantial cuts so as to completely round one corner.
(4) Fence pickets requiring no further processing and properly
classified under subheading 4421.90.70 of the HTSUS, one inch or less
in actual thickness, up to eight inches wide, and six feet or less in
length, and having finials or decorative cuttings that clearly identify
them as fence pickets (in the case of dog-eared fence pickets, the
corners of the boards shall be cut off so as to remove pieces of wood
in the shape of isosceles right angle triangles with sides measuring
\3/4\ of an inch or more).
(5) Lumber originating in the United States that is exported to
another country for minor processing and imported into the United
States if the processing occurring in another country is limited to
kiln drying, planing to create smooth-to-size board, and sanding; and
the importer establishes to CBP's satisfaction upon entry that the
lumber originated in the United States.
(6) Any softwood lumber or softwood lumber product that originated
in the United States, if the importer, exporter, foreign processor, or
original United States producer establishes to CBP's satisfaction upon
entry that the softwood lumber entered and documented as originating in
the United States was first produced in the United States; and
(7) Softwood lumber or softwood lumber products contained in a
single family home package or kit, regardless of the classification
under the HTSUS, if the importer declares that the following
requirements have been met: (i) The package or kit constitutes a full
package of the number of wooden pieces specified in the plan, design,
or blueprint necessary to produce a home of at least 700 square feet
produced to a specified plan, design, or blueprint; (ii) the package or
kit contains all necessary internal and external doors and windows,
nails, screws, glue, subfloor, sheathing, beams, posts, and connectors;
and if included in the purchase contract, the decking, trim, drywall,
and roof shingles specified in the plan, design, or blueprint; (iii)
prior to importation, the package or kit is sold to a United States
retailer that sells complete home packages or kits pursuant to a valid
purchase contract referencing the particular home design, plan, or
blueprint, and the contract is signed by a customer not affiliated with
the importer; and (iv) softwood lumber products entered as part of the
package or kit, whether in a single entry or multiple entries on
multiple days, are to be used solely for the construction of the single
family home specified by the home design, plan, or blueprint matching
the CBP import entry.
For each entry of softwood lumber products contained in a single
family home package for which the importer declares that these four
requirements are met, the importer must retain and make available to
CBP upon request the following documentation:
(1) A copy of the appropriate home design, plan, or blueprint
matching the customs entry in the United States;
(2) A purchase contract from a retailer of home kits or packages
signed by a customer not affiliated with the importer;
(3) A listing of all parts in the package or kit being entered into
the United States that conforms to the home design, plan, or blueprint
for which such parts are being imported; and
(4) If a single contract involves multiple entries, an
identification of all the items required to be listed under item (3)
that are included in each individual shipment.
IV. Interim Amendments at 19 CFR 12.142 To Promulgate Softwood Lumber
Importer Declaration Program
In accordance with the Act's requirements, this document makes
interim amendments to part 12 of title 19 of the CFR to provide an
appropriate regulatory basis with respect to shipments of softwood
lumber and softwood lumber products for the collection of export price,
estimated export charge, if any, importer declaration and, if
applicable, softwood lumber home packages and kits documentation.
The interim amendments to 19 CFR part 12 set forth in this document
add a new Sec. 12.142 (19 CFR 12.142) which requires the importer to
electronically transmit the export price, the estimated export charge,
if any, and the importer declaration on the entry summary in any case
in which softwood lumber or softwood lumber products described in
section 804(a) of the Act are imported into the United States (entries
of softwood lumber and softwood lumber products for which a Certificate
of Origin has been issued from Canada's Maritime Lumber Bureau must be
submitted to CBP in paper. See 19 CFR 12.140(c)). The new interim
amendment also requires importers of softwood lumber home packages and
kits described in section 804(c)(7)(A)(i) through (iv) of the Act to
retain, and provide to CBP upon request, certain documentation
pertaining to, inter alia, design plans, purchase contracts, and part
listings.
It is noted that section 803(b)(1) and (2) of the Act require that
information regarding the export price and estimated export charge be
submitted for ``each shipment.'' Accordingly, the interim amendment
requires that the requisite information associated with each shipment
be included on a single line on the entry summary.
V. Recordkeeping Requirements
Any substantiating documentation that supports an importer's
softwood lumber declaration, and copies of the softwood lumber home
packages and kits documentation, are subject to the recordkeeping
provisions set forth in part 163 of title 19 to the CFR.
The ``List of Records Required for the Entry of Merchandise'' set
forth in the Appendix to part 163 of title 19 of the CFR (19 CFR part
163) is amended by this document to include the softwood lumber home
packages and kits documentation requirement mandated by the Act, as
well as any substantiating documentation that supports an importer's
softwood lumber declaration. This document amends section IV of the
Appendix by adding a new Sec. 12.142 that lists softwood lumber home
packages and kits documentation and any substantiating documentation
that supports an importer's softwood lumber importer declaration as new
entry records.
VI. Penalties
Failure to timely provide the required softwood lumber entry data
will constitute a breach of the terms of the importer's bond under
Sec. 113.62(b) of title 19 of the CFR (19 CFR 113.62) and could give
rise to a claim for liquidated damages under the bond equal to the
value of the merchandise involved in the default.
VII. Other Applicable Entry Requirements
The softwood lumber entry data elements required by these interim
regulations are not otherwise collected by CBP at time of entry and are
in addition to the entry and entry summary information otherwise
required for
[[Page 49937]]
importation into the United States as per section 484 of the Tariff Act
of 1930, as amended (19 U.S.C. 1484).
In addition, imports of softwood lumber or softwood lumber products
from Canada may also be subject to Sec. 12.140 of title 19 to the Code
of Federal Regulations (19 CFR 12.140), which sets forth the entry
requirements prescribed by the Softwood Lumber Agreement entered into
between the Governments of the United States and Canada on September
12, 2006 (``SLA 2006''). In this regard, it is also noted that even
those importers of softwood lumber and softwood lumber products that
are exempt from the terms of 19 CFR 12.140 remain subject to the
softwood lumber entry requirements contained in 19 CFR 12.142.
Inapplicability of Notice and Delayed Effective Date Requirements
Pursuant to 5 U.S.C. 553(b)(B) and (d)(3), CBP has determined that
it would be impracticable and contrary to the public interest to delay
publication of this rule in final form pending an opportunity for
public comment and that there is good cause for this interim rule to
become effective upon providing less then 30 days notice. These interim
amendments conform the regulations to the entry requirements set forth
in Title VIII of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et
seq.), which go into effect August 18, 2008, and inform the public of
the procedures necessary to comply with the statutory requirements. For
these reasons, pursuant to the provisions of 5 U.S.C. 553(d)(3), CBP
finds that there is good cause for dispensing with a 30-day delayed
effective date.
Regulatory Flexibility Act and Executive Order 12866
Because no notice of proposed rulemaking is required for this
interim rule, the provisions of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.) do not apply. Further, these amendments do not meet
the criteria for a ``significant regulatory action'' as specified in
E.O. 12866.
Paperwork Reduction Act
The collections of information in this document are contained in
Sec. 12.142(c) and (d) (19 CFR 12.142(c) and (d)). This information is
used by CBP to fulfill its information collection obligations under
Title VIII of the Tariff Act of 1930, as added by section 3301 within
Title III, Subtitle D, of the Food, Conservation, and Energy Act of
2008 (Pub. L. 110-246), whereby importers of certain softwood lumber
and softwood lumber products are required to submit the export price,
estimated export charge, if any, and an importer declaration with the
entry summary information or, where applicable, to submit additional
documentation required for home packages and kits. The likely
respondents are business organizations including importers and brokers.
The collection of information associated with the entry summary
documentation (CBP Form 7501) was previously approved by the Office of
Management and Budget under control number 1651-0052. In accordance
with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), CBP has
submitted to OMB for review the following adjustments to the
information provided to OMB for the previously approved OMB control
number to account for the changes in this interim rule. 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 control number
assigned by OMB.
Estimated annual reporting and/or recordkeeping burden: 266,000
hours.
Number of responses per respondent and/or recordkeeper: 1,905.
Estimated number of respondents and/or recordkeepers: 210.
Estimated annual frequency of responses: 400,000.
Estimated time per response: 40 minutes (.333 hours).
Comments on the collection of information should be sent to the
Office of Management and Budget, Attention: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503. A copy should also be sent to the Trade
and Commercial Regulations Branch, Regulations and Rulings, Office of
International Trade, Customs and Border Protection, 1300 Pennsylvania
Avenue, NW. (Mint Annex), Washington, DC 20229. Comments should be
submitted within the time frame that comments are due regarding the
substance of the interim rule.
Comments are invited on: (a) Whether the collection of information
is necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (b) the
accuracy of the agency's estimate of the burden of the collection of
the information; (c) ways to enhance the quality, utility, and clarity
of the information to be collected; (d) ways to minimize the burden of
the collection of information on respondents, including through the use
of automated collection techniques or other forms of information
technology; and (e) estimates of capital or startup costs and costs of
operations, maintenance, and purchase of services to provide
information.
Signing Authority
This document is being issued in accordance with 19 CFR 0.1(a)(1).
List of Subjects
19 CFR Part 12
Bonds, Customs duties and inspection, Entry of merchandise,
Imports, Prohibited merchandise, Reporting and recordkeeping
requirements, Restricted merchandise.
19 CFR Part 163
Customs duties and inspection, Reporting and recordkeeping
requirements.
Amendment to the Regulations
0
For the reasons stated above, parts 12 and 163 of title 19 of the Code
of Federal Regulations (19 CFR parts 12 and 163) are amended as set
forth below.
PART 12--SPECIAL CLASSES OF MERCHANDISE
0
1. The authority citation for part 12 continues and a new specific
authority for Sec. 12.142 is added to read in part as follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i),
Harmonized Tariff Schedule of the United States (HTSUS)), 1624;
* * * * *
Sec. 12.142 also issued under 19 U.S.C. 1484; section 3301 of
Pub. L. 110-246.
* * * * *
Sec. 12.140 [Undesignated center heading amended]
0
2. The undesignated center heading ``Softwood Lumber from Canada''
preceding Sec. 12.140 is amended by removing the words ``from
Canada''.
0
3. A new Sec. 12.142 is added to read as follows:
Sec. 12.142 Entry of softwood lumber and softwood lumber products
from any country into the United States.
(a) In general. This section, pursuant to the ``Softwood Lumber Act
of 2008'' (``the Act'') (Title VIII of the Tariff Act of 1930, as
amended (19 U.S.C. 1202 et seq.)), prescribes entry requirements
applicable to certain imports of softwood lumber and softwood lumber
products exported from any country into the United States.
(b) Softwood lumber products covered. The softwood lumber and
softwood lumber products covered by this section are those products
described in section 804(a) of Title VIII
[[Page 49938]]
of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et seq.).
(c) Entry requirements for shipments subject to the importer
declaration program. For each shipment of softwood lumber or softwood
lumber products described in section 804(a) of Title VIII to the Tariff
Act of 1930, as amended, (19 U.S.C. 1202 et seq.) that is entered or
withdrawn from warehouse for consumption, in the customs territory of
the United States, the following information must be electronically
submitted to CBP (except that, pursuant to 19 CFR 12.140(c), entries of
softwood lumber and softwood lumber products for which a Certificate of
Origin has been issued from Canada's Maritime Lumber Bureau must be
submitted to CBP in paper):
(1) Export price. Each importer must provide the export price,
expressed in U.S. dollars, on the entry summary in the designated space
provided on the CBP Form 7501.
(i) For purposes of this section, ``export price'' means one of the
following:
(A) In the case of softwood lumber or a softwood lumber product
that has undergone only primary processing, the value that would be
determined F.O.B. at the facility where the product underwent the last
primary processing before export.
(B) In the case of softwood lumber or a softwood lumber product
that underwent the last remanufacturing before export by a manufacturer
who does not hold tenure rights provided by the country of export, did
not acquire standing timber directly from the country of export, and is
not related to the person who holds tenure rights or acquired standing
timber directly from the country of export, the value that would be
determined F.O.B. at the facility where the softwood lumber or softwood
lumber product underwent the last primary processing.
(C) In the case of softwood lumber or a softwood lumber product
that underwent the last remanufacturing before export by a manufacturer
who holds tenure rights provided by the country of export, acquired
standing timber directly from the country of export, or is related to
the person who holds tenure rights or acquired standing timber directly
from the country of export, the value that would be determined F.O.B.
at the facility where the softwood lumber or softwood lumber product
underwent the last processing before export.
(D) In the case of softwood lumber or a softwood lumber product
described in paragraphs (c)(1)(i)(A), (B) or (C) of this section for
which an F.O.B. value cannot be determined, the export price will be
the market price for the identical softwood lumber or softwood lumber
product sold in an arm's-length transaction in the country of export at
approximately the same time as the exported softwood lumber or softwood
lumber product. The market price will be determined in the following
order of preference:
(1) The market price for the softwood lumber or softwood lumber
product sold at substantially the same level of trade (as described in
19 CFR 351.412(c)) as the exported softwood lumber or softwood lumber
product but in different quantities.
(2) The market price for the softwood lumber or softwood lumber
product sold at a different level of trade (as defined in 19 CFR
351.412(c)) than the exported softwood lumber or softwood lumber
product but in similar quantities.
(3) The market price for the softwood lumber or softwood lumber
product sold at a different level of trade (as defined in 19 CFR
351.412(c)) than the exported softwood lumber or softwood lumber
product and in different quantities.
(ii) For purposes of paragraph (c)(1) of this section, the
following definitions apply:
(A) F.O.B. The term ``F.O.B.'' means a value consisting of all
charges payable by a purchaser, including those charges incurred in the
placement of merchandise on board of a conveyance for shipment, but
does not include the actual shipping charges or any applicable export
charges.
(B) Related to the person. The term ``related to the person''
means:
(1) A person bears a relationship to such other person described in
section 152(a) of the Internal Revenue Code of 1986;
(2) A person bears a relationship to such person described in
section 267(b) of the Internal Revenue Code of 1986, except that ``5
percent'' will be substituted for ``50 percent'' each place it appears;
(3) The person and such other person are part of a controlled group
of corporations, as that term is defined in section 1563(a) of the
Internal Revenue Code of 1986, except that ``5 percent'' will be
substituted for ``80 percent'' each place it appears;
(4) The person is an officer or director of such other person; or
(5) The person is the employer of such other person.
(C) Tenure rights. The term ``tenure rights'' means rights to
harvest timber from public land granted by the country of export.
(2) Estimated export charge. (i) Each importer must provide the
estimated export charge, if any, to be collected by the country
(including any political subdivision of the country) from which the
softwood lumber or softwood lumber product was exported pursuant to an
international agreement entered into by that country and the United
States as calculated by applying the percentage determined and
published by the Under Secretary for International Trade of the
Department of Commerce to the export price. Any applicable estimated
export charge must be expressed in U.S. dollars and reported on the
entry summary in the designated space.
(ii) For purposes of this paragraph, the terms ``estimated export
charge'' or ``export charge'' mean any tax, charge, or other fee
collected by the country from which softwood lumber or a softwood
lumber product, as described in section 804(a) within Title VIII of the
Tariff Act of 1930 (19 U.S.C. 1202 et seq.), as amended, is exported
pursuant to an international agreement entered into by that country and
the United States.
(3) Importer declaration. (i) Each importer, except as provided in
paragraph (c)(3)(ii) of this section, must provide a softwood lumber
declaration on the electronic entry summary by entering the letter code
``Y'' in the first space of the field designated for the estimated
export charge data.
(ii) Each importer of softwood lumber and softwood lumber products
for which a Certificate of Origin has been issued from Canada's
Maritime Lumber Bureau must provide a softwood lumber declaration on
the paper entry summary by entering the letter code ``Y'' in the first
space of the field designated for the estimated export charge. See 19
CFR 12.140(c),
(iii) The letter code ``Y'' represents the importer's declaration
to CBP that:
(A) The importer has made appropriate inquiry, including seeking
appropriate documentation from the exporter and consulting the
determinations published by the Under Secretary for International Trade
of the Department of Commerce pursuant to section 805(b) of Title VIII
of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et seq.); and
(B) To the best of the person's knowledge and belief:
(1) The export price provided is determined in accordance with the
definition set forth in section 802(5) of Title VIII of the Tariff Act
of 1930, as amended (19 U.S.C. 1202 et seq.);
(2) The export price provided is consistent with the export price
provided on the export permit, if any, granted by the country of
export; and
[[Page 49939]]
(3) The exporter has paid, or committed to pay, all export charges
due in accordance with the volume, export price, and export charge rate
or rates, if any, as calculated under an international agreement
entered into by the country of export and the United States and
consistent with the export charge determinations published by the Under
Secretary for International Trade of the Department of Commerce.
(iv) Any substantiating documentation that supports an importer's
softwood lumber declaration is subject to the recordkeeping provisions
set forth in part 163 of title 19 to the CFR.
(d) Entry requirements for home packages and kits--(1) Declaration
and required documentation. Home packages and kits as described in
section 804(c)(7)(A)(i) through (iv) of the Title VIII of the Tariff
Act of 1930, as amended (19 U.S.C. 1202 et seq.) are not subject to the
entry requirements set forth in paragraph (c) of this section. However,
the importer is required to make a declaration pursuant to section
804(c)(7)(B) and is required to retain and produce upon demand by CBP,
the following documentation:
(i) A copy of the appropriate home design, plan, or blueprint
matching the customs entry in the United States.
(ii) A purchase contract from a retailer of home kits or packages
signed by a customer not affiliated with the importer.
(iii) A listing of all parts in the package or kit being entered
into the United States that conforms to the home design, plan, or
blueprint for which such parts are being imported.
(iv) If a single contract involved multiple entries, an
identification of all the items required to be listed under paragraph
(d)(1)(iii) of this section that are included in each individual
shipment.
(2) Records and retention. There is no requirement to present
physical copies of the softwood lumber home packages and kits
documentation to CBP at the time of filing the entry summary; however
copies must be maintained in accordance with the applicable
recordkeeping provisions set forth in part 163 of title 19 to the CFR.
(e) Other softwood lumber entry requirements. Other entry
requirements may be applicable to certain imports of softwood lumber or
softwood lumber from Canada. Importers are advised to refer to Sec.
12.140 (19 CFR 12.140) of this chapter for information regarding
applicability and entry requirements.
PART 163--RECORDKEEPING
0
4. The authority citation for part 163 continues to read as follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1484, 1508, 1509, 1510,
1624.
0
5. The Appendix to part 163 is amended by adding, in numerical order, a
listing for Sec. 12.142 under section IV to read as follows:
Appendix to Part 163--Interim (a)(1)(A) List
* * * * *
IV. * * *
Sec. 12.142 Softwood Lumber Importer Declaration Supporting
Documentation, Softwood Lumber Home Packages and Kits Documentation.
* * * * *
W. Ralph Basham,
Commissioner, U.S. Customs and Border Protection.
Approved: August 20, 2008.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. E8-19641 Filed 8-22-08; 8:45 am]
BILLING CODE 9111-14-P