[Federal Register: February 8, 2002 (Volume 67, Number 27)]
[Rules and Regulations]
[Page 6116-6118]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe02-19]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 2001-04; FAR Case 2000-306;
Item V]
RIN 9000-AJ27
Federal Acquisition Regulation; Caribbean Basin Country End
Products
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on an interim
rule amending the Federal Acquisition Regulation (FAR) to implement the
determination of the United States Trade Representative (USTR) to
extend the treatment of certain end products, from countries designated
by the President as beneficiaries under the Caribbean Basin Economic
Recovery Act, as eligible products under the Trade Agreements Act, with
the exception of end products from the Dominican Republic, Honduras,
and Panama. This rule also implements Section 211 of the United
States--Caribbean Basin Trade Partnership Act and the determination of
the USTR as to which countries qualify for the enhanced trade benefits
under that Act.
DATES: Effective Date: February 20, 2002.
Comment Date: Interested parties should submit comments to the FAR
Secretariat at the address shown below on or before April 9, 2002, to
be considered in the formulation of a final rule.
ADDRESSES: Submit written comments to: General Services Administration,
FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, Attn: Ms. Laurie
Duarte, Washington, DC 20405.
Submit electronic comments via the Internet to: farcase.2000-
306@gsa.gov
Please submit comments only and cite FAC 2001-04, FAR case 2000-
306, in all correspondence related to this case.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755, for information
pertaining to
[[Page 6117]]
status or publication schedules. For clarification of content, contact
Ms. Cecelia L. Davis, Procurement Analyst, at (202) 219-0202. Please
cite FAC 2001-04, FAR case 2000-306.
SUPPLEMENTARY INFORMATION:
A. Background
The USTR published a notice in the Federal Register on December 14,
2001 (66 FR 64897), renewing the treatment of certain end products,
from countries designated by the President as beneficiaries under the
Caribbean Basin Economic Recovery Act, as eligible products under the
Trade Agreements Act, with the exception of end products from the
Dominican Republic, Honduras, and Panama. This rule implements that
determination.
This interim rule also amends the FAR to implement Section 211 of
the United States--Caribbean Basin Trade Partnership Act (Title II of
Pub. L. 106-200) and the determinations of the USTR under that Act. To
date, the USTR has published determinations in the Federal Register at
65 FR 60236, October 10, 2000; 65 FR 69988, November 21, 2000; 66 FR
9888, February 12, 2001, and 66 FR 31272, June 11, 2001. Section 211
amends the Caribbean Basin Economic Recovery Act at 19 U.S.C. 2703 to
provide enhanced trade benefits for Caribbean Basin countries that have
implemented and follow, or are making substantial progress toward
implementing and following, the customs procedures required by the
Caribbean Basin Trade Partnership Act. Certain products of those
countries now qualify for duty-free treatment, so they can be treated
as Caribbean Basin country end products. Offerors can find these
products, and the current list of countries, in the Harmonized Tariff
Schedule (HTS). The FAR gives information on the HTS in FAR clause
52.225-5, Trade Agreements. The USTR notices in the Federal Register
announced the determination that Barbados, Belize, Costa Rica,
Dominican Republic, El Salvador, Guatemala, Guyana, Haiti, Honduras,
Jamaica, Nicaragua, Panama, Saint Lucia, and Trinidad and Tobago
currently qualify for the enhanced trade benefits and modified the
Harmonized Tariff Schedule of the United States accordingly.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The interim rule is not expected to have a significant economic
impact on a substantial number of small entities within the meaning of
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because it only
affects a limited number of products from a few Caribbean Basin
countries. The Berry Amendment (formerly at 10 U.S.C. 2241, note, but
recently enacted as 10 U.S.C. 2533a) still prohibits the Department of
Defense from buying most of the textile and apparel articles receiving
duty-free treatment under this Act. Therefore, an Initial Regulatory
Flexibility Analysis has not been performed. The Councils will consider
comments from small entities concerning the affected FAR parts in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 601, et seq. (FAC 2001-04,
FAR case 2000-306), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that require
the approval of the Office of Management and Budget under 44 U.S.C.
3501, et seq.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense, the Administrator of General Services, and the
Administrator of the National Aeronautics and Space Administration that
urgent and compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. This action is necessary
because the determination of the USTR to provide enhanced benefits to
the products of certain countries under the Caribbean Basin Trade
Partnership Act became effective on October 2, 2000, and because the
USTR reinstated the expired Caribbean Basin program on December 14,
2001, effective immediately. However, pursuant to Public Law 98-577 and
FAR 1.501, the Councils will consider public comments received in
response to this interim rule in the formation of the final rule.
List of Subjects in 48 CFR Parts 25 and 52
Government procurement.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 as set
forth below:
1. The authority citation for 48 CFR parts 25 and 52 continues to
read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 25--FOREIGN ACQUISITION
2. Amend section 25.003 in the definition ``Caribbean Basin
country'' by removing ``Panama,''; and by revising the definition
``Caribbean Basin country end product'' to read as follows:
25.003 Definitions.
* * * * *
Caribbean Basin country end product--
(1) Means an article that--
(i)(A) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(B) In the case of an article that consists in whole or in part of
materials from another country, has been substantially transformed in a
Caribbean Basin country into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed; and
(ii) Is not excluded from duty-free treatment for Caribbean
countries under 19 U.S.C. 2703(b).
(A) For this reason, the following articles are not Caribbean Basin
country end products:
(1) Tuna, prepared or preserved in any manner in airtight
containers.
(2) Petroleum, or any product derived from petroleum.
(3) 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 that is the product of any country to which the
Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates
of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and
Vietnam).
(4) Certain of the following: textiles and apparel articles;
footwear, handbags, luggage, flat goods, work gloves, and leather
wearing apparel; or handloomed, handmade, and folklore articles.
(B) Access to the HTSUS to determine duty-free status of articles
of the types listed in paragraph (1)(ii)(A)(4) of this definition is
available via the Internet at
[[Page 6118]]
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.customs.ustreas.gov/impoexpo/impoexpo.htm. In particular,
see the following:
(1) General Note 3(c), Products Eligible for Special Tariff
treatment.
(2) General Note 17, Products of Countries Designated as
Beneficiary Countries under the United States--Caribbean Basin Trade
Partnership Act of 2000.
(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and
Returned, Advanced or Improved Abroad, U.S. Note 7(b).
(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for
Special Tariff Benefits under the United States-Caribbean Basin Trade
Partnership Act; and
(2) Refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the acquisition,
includes services (except transportation services) incidental to the
article, provided that the value of those incidental services does not
exceed that of the article itself.
* * * * *
25.400 [Amended]
3. Amend section 25.400 in paragraph (a)(2) by removing the words
``Republic and Honduras'' and adding ``Republic, Honduras, and
Panama,'' in its place.
25.404 [Amended]
4. Amend section 25.404 by removing the second and third sentences.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Amend section 52.225-5 by--
a. Removing ``Panama,'' from the definition ``Caribbean Basin
country''; and
b. Revising the definition ``Caribbean Basin country end product''
to read as follows:
52.225-5 Trade Agreements.
* * * * *
Trade Agreements (Feb 2002)
(a) * * *
* * * * *
Caribbean Basin country end product--
(1) Means an article that--
(i)(A) Is wholly the growth, product, or manufacture of a
Caribbean Basin country; or
(B) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Caribbean Basin country into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was transformed; and
(ii) Is not excluded from duty-free treatment for Caribbean
countries under 19 U.S.C. 2703(b).
(A) For this reason, the following articles are not Caribbean
Basin country end products:
(1) Tuna, prepared or preserved in any manner in airtight
containers;
(2) Petroleum, or any product derived from petroleum;
(3) 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 that is the product of any country to which the
Harmonized Tariff Schedule of the United States (HTSUS) column 2
rates of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and
Vietnam); and
(4) Certain of the following: textiles and apparel articles;
footwear, handbags, luggage, flat goods, work gloves, and leather
wearing apparel; or handloomed, handmade, and folklore articles;
(B) Access to the HTSUS to determine duty-free status of
articles of these types is available at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.customs.ustreas.gov/impoexpo/impoexpo.htm. In particular, see
the following:
(1) General Note 3(c), Products Eligible for Special Tariff
treatment.
(2) General Note 17, Products of Countries Designated as
Beneficiary Countries under the United States--Caribbean Basin Trade
Partnership Act of 2000.
(3) Section XXII, Chapter 98, Subchapter II, Articles Exported
and Returned, Advanced or Improved Abroad, U.S. Note 7(b).
(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for
Special Tariff Benefits under the United States--Caribbean Basin
Trade Partnership Act; and
(2) Refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the
acquisition, includes services (except transportation services)
incidental to the article, provided that the value of those
incidental services does not exceed that of the article itself.
* * * * *
[FR Doc. 02-2917 Filed 2-7-02; 8:45 am]
BILLING CODE 6820-EP-P