CBP Issues Interim Rule on the U.S.- Oman FTA
U.S. Customs and Border Protection has issued an interim rule, effective January 6, 2011, which adds a new Subpart P to 19 CFR Part 10 and amends 19 CFR Parts 162, 163, and 178 regarding the preferential tariff treatment and other customs-related provisions of the U.S.- Oman Free Trade Agreement (OFTA).
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Comments on the interim rule are due by March 7, 2011.
OFTA Tariff Changes Have Already Been Implemented
In December 2008, President Bush issued Proclamation 8332 which modified the Harmonized Tariff Schedule (HTS) to implement the tariff provisions of the OFTA, for goods entered or withdrawn from warehouse for consumption on or after January 1, 2009.
The modifications to the HTS included the addition of new General Note 31, incorporating the relevant OFTA rules of origin as set forth in the U.S.-Oman FTA Implementation Act, and the insertion throughout the HTS of the preferential duty rates applicable to individual products under the OFTA where the special program indicator “OM” appears in parenthesis in the “Special” rate of duty sub-column. The modifications to the HTS also included a new Subchapter XVI to Chapter 99 to provide for temporary tariff rate quotas and applicable safeguards implemented by the OFTA.
Under the OFTA, staged duty reductions take effect annually until all affected tariff numbers are free of duty by December 31, 2018. (See ITT's Online Archives or 01/15/09 news, 09011520, for BP summary of Proclamation 8322.)
Certain Customs-Related OFTA Provisions Require Regulation
CBP states that certain customs-related OFTA provisions require amendments to regulations. These include certain tariff and non-tariff provisions within Chapter One (Establishment of Free Trade Area and Definitions), Chapter Two (Market Access), Chapter Three (Textiles and Apparel), Chapter Four (Rules of Origin), and Chapter Five (Customs Administration). The amendments also incorporate certain general definitions set forth in Article 1.3 of the OFTA and the Goods Re-entered after Repair or Alteration provisions of Article 2.6 of the OFTA.
Some of the major OFTA chapters discussed in the interim rule are:
Chapter Three. Chapter Three of the OFTA sets forth the measures relating to trade in textile and apparel goods between Oman and the U.S. under the OFTA. The provisions within Chapter Three that require regulatory action by CBP are Article 3.2 (Rules of Origin and Related Matters), Article 3.3 (Customs Cooperation for Textile and Apparel Goods), and Article 3.5 (Definitions).
Chapter Four. Chapter Four of the OFTA sets forth the rules for determining whether an imported good qualifies as an originating good of the U.S. or Oman (OFTA Party) and, as such, is therefore eligible for preferential tariff (duty-free or reduced duty) treatment as specified in the Agreement.
Chapter Five. Chapter Five sets forth the customs operational provisions related to the implementation and administration of the OFTA.
| Robert Abels (textile operational aspects) | (202) 863-6503 |
| Seth Mazze (other operational aspects) | (202) 863-6567 |
| Deaune Volk (audit aspects) | (202) 863-6575 |
| Elif Eroglu (legal aspects) | (202) 325-0277 |
(FR Pub 01/06/11, D/N USCBP-2010-0041)