Unknown. Final rule

22,056 words·~100 min read·/register/2007/06/29/07-3153

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2007-06-29.xml --- 72 125 Friday, June 29, 2007 Contents Agricultural Agricultural Marketing Service PROPOSED RULES Grade standards: Table grapes (European or Vinifera type), 35668 E7-12384 Agriculture Agriculture Department See Agricultural Marketing Service See Forest Service See Rural Utilities Service Air Force Air Force Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 35696-35698 07-3190 07-3192 07-3193 Meetings:

Air Force Academy Board of Visitors, 35698-35699 07-3194 Alcohol Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 35723-35725 E7-12599 E7-12601 E7-12602 Army Army Department See Engineers Corps Blind Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Centers Centers for Medicare & Medicaid Services PROPOSED RULES Medicare:

Revisit User Fee Program; medicare survey and certification activities, 35673-35683 07-3196 NOTICES Agency information collection activities; proposals, submissions, and approvals, 35711-35713 E7-12655 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement list; additions and deletions, 35688-35690 E7-12641 E7-12642 E7-12643 Defense Defense Department See Air Force Department See Engineers Corps NOTICES Meetings;

Sunshine Act, 35696 07-3209 07-3211 Delaware Delaware River Basin Commission NOTICES Meetings and hearings, 35699-35701 E7-12638 Election Election Assistance Commission NOTICES Meetings; Sunshine Act, 35701 07-3220 07-3221 Employee Employee Benefits Security Administration NOTICES Employee benefit plans; individual exemptions: Mellon Financial Corp. et al.; correction, 35745 Z7-4982 Employment Employment and Training Administration RULES Senior Community Service Employment Program:

Performance accountability measures, 35832-35848 E7-12541 Energy Energy Department See Federal Energy Regulatory Commission Engineers Engineers Corps NOTICES Environmental statements; availability, etc.: Berths 136-147 [TraPac] Container Terminal Project, Los Angeles, CA, 35699 E7-12540 EPA Environmental Protection Agency RULES Air programs: Implementation plans; preparation, adoption, and submittal requirements; CFR correction, 35663 07-55507 National emission standards for hazardous air pollutants for source categories;

CFR correction, 35663 07-55506 Pesticide programs: Worker protection standard; CFR correction, 35663 07-55508 Pesticides; tolerances in food, animal feeds, and raw agricultural commodities: Nomenclature changes; technical amendment, 35663-35666 E7-12645 Solid wastes: Universal waste management standards; CFR correction, 35666 07-55505 NOTICES Committees; establishment, renewal, termination, etc.: Total Coliform Rule Distribution System Advisory Committee, 35870 E7-12649 Environmental statements; availability, etc.:

Agency comment availability, 35704-35705 E7-12651 Agency weekly receipts, 35705 E7-12652 Meetings: FIFRA Scientific Advisory Panel, 35705-35708 E7-12571 Total Coliform Rule Distribution System Advisory Committee, 35870 E7-12648 Superfund; response and remedial actions, proposed settlements, etc.: Shuron Inc. Site, SC, 35708 E7-12646 Executive Executive Office of the President See Presidential Documents See Science and Technology Policy Office FAA Federal Aviation Administration RULES Airworthiness directives:

APEX Aircraft, 35639-35640 E7-12319 Empresa Brasileira de Aeronautica S.A. (EMBRAER), 35645-35647 E7-12221 McDonnell Douglas, 35640-35643 E7-11927 E7-11932 PIAGGIO AERO INDUSTRIES S.p.A, 35643-35645 E7-12008 FBI Federal Bureau of Investigation NOTICES Agency information collection activities; proposals, submissions, and approvals, 35726 E7-12593 FCC Federal Communications Commission NOTICES Rulemaking proceedings; petitions, filed, granted, denied, etc., 35709 E7-12594 FDIC Federal Deposit Insurance Corporation NOTICES Meetings:

Economic Inclusion Advisory Committee, 35709-35710 E7-12632 Federal Energy Federal Energy Regulatory Commission RULES Public Utility Regulatory Policies Act: Small power production and cogeneration facilities, 35872-35892 E7-12553 PROPOSED RULES Natural gas companies (Natural Gas Act): Land owner notification and noise survey requirements, 35669-35672 E7-12557 NOTICES Electric utilities (Federal Power Act): Western Systems Power Pool Agreement; refund effective date, 35704 E7-12611 *Applications, hearings, determinations, etc.:* Continental Cogeneration Services, 35702 E7-12614 Dominion Cove Point LNG, LP, 35702 E7-12612 Dominion Transmission, Inc., 35702-35703 E7-12613 Eugene Water and Electric Board, 35703 E7-12617 Fulcrum Energy Ltd., 35703 E7-12616 Rainbow Energy Ventures LLC, 35703-35704 E7-12615 Federal Highway Federal Highway Administration NOTICES Environmental statements; notice of intent:

Jackson and Jennings Counties, IN, 35737-35738 E7-12629 Federal agency actions on proposed highways; judicial review claims: Arizona; Yuma Area Service Highway, 35738-35739 07-3166 Financial Financial Management Service See Fiscal Service Fiscal Fiscal Service NOTICES Interest rates: Renegotiation board; prompt payment rates, 35742-35743 07-3178 Fish Fish and Wildlife Service NOTICES Environmental statements; availability, etc.: Sabine National Wildlife Refuge, LA; comprehensive conservation plan, 35717-35718 E7-12628 Forest Forest Service NOTICES Meetings:

Coordinated Resource Offering Protocol, 35684 E7-12623 Forest Counties Payments Committee, 35684-35685 E7-12622 Health Health and Human Services Department See Centers for Medicare & Medicaid Services NOTICES Agency information collection activities; proposals, submissions, and approvals, E7-12619 35710-35711 E7-12620 E7-12621 Homeland Homeland Security Department See U.S. Citizenship and Immigration Services See U.S. Customs and Border Protection See U.S. Immigration and Customs Enforcement Housing Housing and Urban Development Department NOTICES Agency information collection activities; proposals, submissions, and approvals, E7-12580 35714-35717 E7-12582 07-3214 Grants and cooperative agreements; availability, etc.:

Homeless assistance; excess and surplus Federal properties, 35717 E7-12373 HOPE VI Main Street Grants, 35850-35868 E7-12583 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See Minerals Management Service IRS Internal Revenue Service RULES Income taxes: Business electronic filing and burden reduction; facilitation; correction, 35658-35659 E7-12590 PROPOSED RULES Excise taxes: Pension excise taxes— Health savings accounts; employer comparable contributions; hearing; correction, 35672-35673 E7-12587 NOTICES Meetings:

Taxpayer Advocacy Panels, 35743 E7-12588 E7-12591 E7-12592 International International Boundary and Water Commission, United States and Mexico NOTICES Environmental statements; availability, etc.: Hidalgo and Cameron Counties, TX; Lower Rio Grande Flood Control Project, 35721-35722 E7-12509 International International Trade Administration NOTICES Antidumping and countervailing duties: Administrative review requests, 35690-35693 E7-12644 International International Trade Commission NOTICES Import investigations:

Cuba; agricultural sales; economic effects of U.S. restrictions, 35722 E7-12657 Justice Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau See Federal Bureau of Investigation See Justice Programs Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 35722-35723 E7-12598 Justice Justice Programs Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 35726-35728 E7-12595 E7-12597 Labor Labor Department See Employee Benefits Security Administration See Employment and Training Administration See Mine Safety and Health Administration Land Land Management Bureau NOTICES Environmental statements; availability, etc.:

Western United States and Alaska; vegetation treatments on public lands using chemical herbicides and other methods, 35718-35719 E7-12533 Mexico Mexico and United States, International Boundary and Water Commission See International Boundary and Water Commission, United States and Mexico Minerals Minerals Management Service NOTICES Environmental statements; availability, etc.: Gulf of Mexico OCS— Oil and gas lease sales, 35719-35720 E7-12667 Outer Continental Shelf operations:

Gulf of Mexico— Official protraction diagrams; availability, 35720 E7-12579 Mine Mine Safety and Health Administration RULES Reporting and recordkeeping requirements: OMB control numbers; list update; technical amendment, 35659-35661 E7-12578 NOTICES Agency information collection activities; proposals, submissions, and approvals, E7-12523 35728-35731 E7-12525 E7-12526 NASA National Aeronautics and Space Administration RULES Federal Acquisition Regulation (FAR): Award fee contracts; evaluation factors, 35666-35667 E7-12656 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management:

Alaska; fisheries of Exclusive Economic Zone— Deep water species, 35667 E7-12660 PROPOSED RULES Fishery conservation and management: Alaska; fisheries of Exclusive Economic Zone— Bering Sea and Aleutian Islands king and tanner crabs and groundfish, 35748-35829 07-3117 NOTICES Endangered and threatened species: Anadromous fish take— Middle Columbia River steelhead, 35693-35695 E7-12654 Meetings: Pacific Fishery Management Council, 35695 E7-12637 Southeastern Data, Assessment, and Review Steering Committee, 35695-35696 E7-12636 Nuclear Nuclear Regulatory Commission NOTICES Plants and materials; physical protection:

Irradiated reactor fuel shipments; advance notification to State governors, 35732-35735 E7-12634 Postal Postal Service RULES Practice and procedure: Contract Appeals Board; small claims (expedited) and accelerated proceedings, 35662-35663 E7-12491 Presidential Presidential Documents PROCLAMATIONS Trade: Generalized system of preferences duty-free treatment, modifications, and African Growth and Opportunity Act, beneficiary country designations, 35893-35905 07-3225 Public Public Debt Bureau See Fiscal Service RUS Rural Utilities Service NOTICES Grants and cooperative agreements; availability, etc.:

Community Connect Program, 35685-35688 E7-12735 Science Science and Technology Policy Office NOTICES Committees; establishment, renewal, termination, etc.: Ocean Science and Resource Management Integration Interagency Committee and National Ocean Research Leadership Council; alignment, 35708-35709 E7-12510 SEC Securities and Exchange Commission NOTICES Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC; correction, 35745 Z7-11367 Boston Stock Exchange, Inc., 35735-35736 E7-12604 Surface Surface Transportation Board NOTICES Environmental statements; availability, etc.:

Six County Association of Governments, UT, 35739 E7-12521 Railroad operation, acquisition, construction, etc.: Duluth, Missabe and Iron Range Railway Co., 35739-35740 E7-12606 E7-12608 Duluth, Winnipeg and Pacific Railway Co., E7-12607 35740-35741 E7-12609 Kansas City Southern Railway Co., 35741 E7-12631 Wisconsin Central Ltd., 35741-35742 E7-12559 E7-12610 Susquehanna Susquehanna River Basin Commission NOTICES Reports and guidance documents; availability, etc.: Water resource projects approved; list, 35736-35737 E7-12618 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration See Surface Transportation Board Treasury Treasury Department See Fiscal Service See Internal Revenue Service RULES U.S. - Morocco Free Trade Agreement, 35647-35658 07-3153 U.S.

U.S.-China Economic and Security Review Commission NOTICES Hearings, 35744 E7-12647 MISSING FOR: U.S. Citizenship and Immigration Services U.S. Citizenship and Immigration Services NOTICES Agency information collection activities; proposals, submissions, and approvals, 35713 E7-12630 MISSING FOR: U.S. Customs and Border Protection U.S. Customs and Border Protection RULES U.S. - Morocco Free Trade Agreement, 35647-35658 07-3153 MISSING FOR: U.S. Immigration and Customs Enforcement U.S.

Immigration and Customs Enforcement NOTICES Agency information collection activities; proposals, submissions, and approvals, 35714 E7-12659 Veterans Veterans Affairs Department RULES Vocational rehabilitation and education: Veterans and dependents education— Topping up tuition assistance; licensing and certification tests; duty to assist education claimants; correction, 35661-35662 E7-12589 Separate Parts In This Issue Part II Commerce Department, National Oceanic and Atmospheric Administration, 35748-35829 07-3117 Part III Labor Department, Employment and Training Administration, 35832-35848 E7-12541 Part IV Housing and Urban Development Department, 35850-35868 E7-12583 Part V Environmental Protection Agency, 35870 E7-12648 E7-12649 Part VI Energy Department, Federal Energy Regulatory Commission, 35872-35892 E7-12553 Part VII Executive Office of the President, Presidential Documents, 35893-35905 07-3225 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 72 125 Friday, June 29, 2007 Rules and Regulations DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-27530 Directorate Identifier 2007-CE-019-AD; Amendment 39-15118; AD 2007-13-14] RIN 2120-AA64 Airworthiness Directives;

APEX Aircraft Model CAP 10 B Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: Two cases of rudder lower support with cracks have been reported, waiting for a technical solution, inspections are required. We are issuing this AD to require actions to correct the unsafe condition on these products. DATES: This AD becomes effective August 3, 2007. On August 3, 2007 the Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: Sarjapur Nagarajan, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4145; fax:

(816)329-4090. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the **Federal Register** on April 2, 2007 (72 FR 15635). That NPRM proposed to correct an unsafe condition for the specified products. The MCAI states that: Two cases of rudder lower support with cracks have been reported, waiting for a technical solution, inspections are required. Comments We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM or on the determination of the cost to the public. Conclusion We reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed. Differences Between This AD and the MCAI or Service Information We have reviewed the MCAI and related service information and, in general, agree with their substance. But we might have found it necessary to use different words from those in the MCAI to ensure the AD is clear for U.S. operators and is enforceable. In making these changes, we do not intend to differ substantively from the information provided in the MCAI and related service information. We might also have required different actions in this AD from those in the MCAI in order to follow FAA policies. Any such differences are highlighted in a Note within the AD. Costs of Compliance We estimate that this AD will affect 31 products of U.S. registry. We also estimate that it will take about 8 work-hours per product to comply with basic requirements of this AD. The average labor rate is $80 per work-hour. Based on these figures, we estimate the cost of this AD to the U.S. operators to be $19,840 or $640 per product. In addition, we estimate that any necessary follow-on actions would take about 5 work-hours and require parts provided by APEX Aircraft under warranty, for a cost of $400 per product. We have no way of determining the number of products that may need these actions. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(3)Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD Docket. Examining the AD Docket You may examine the AD docket on the Internet at *http://dms.dot.gov;* or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains the NPRM, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone

(800)647-5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by adding the following new AD: **2007-13-14 APEX Aircraft:** Amendment 39-15118; Docket No. FAA-2007-27530; Directorate Identifier 2007-CE-019-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective August 3, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to Model CAP 10 B airplanes, all serial numbers, that are:

(1)Fitted with a rudder lower support, part number (P/N) CAP10-30-08-01* or CAP230-30-08-01* (* with or without a letter at the reference end), as applicable, supplied by APEX Aircraft after January 1, 2001; and

(2)Certificated in any category. Subject

(d)Air Transport Association of America

(ATA)Code 55: Stabilizers. Reason

(e)The mandatory continuing airworthiness information

(MCAI)states: Two cases of rudder lower support with cracks have been reported, waiting for a technical solution, inspections are required. Actions and Compliance

(f)Unless already done, do the following actions:

(1)Within the next 50 hours time-in-service

(TIS)after August 3, 2007 (the effective date of this AD), do inspection A using Apex Aircraft Service Bulletin No. 040707, dated July 29, 2004.

(2)Every 50 hours TIS after the inspection required by paragraph (f)(1) of this AD, do inspection B using Apex Aircraft Service Bulletin No. 040707, dated July 29, 2004.

(3)When a crack is detected as a result of any inspection required by paragraph (f)(1) or (f)(2) of this AD, before further flight, return the part to APEX Aviation using Apex Aircraft Service Bulletin No. 040707, dated July 29, 2004, and install an airworthy part or incorporate the repair. Continued operation with any rudder lower support with cracks is prohibited.

(4)Before further flight after the inspection required in paragraph (f)(1) of this AD, do not install a rudder lower support, P/N CAP10-30-08-01* or CAP230-30-08-01*, unless it is inspected and found to be crack free following the requirements of this AD. FAA AD Differences Note: This AD differs from the MCAI and/or service information as follows: The MCAI and service bulletin require inspection A before the next flight and inspection B every 25 flight hours. We consider before the next flight as an urgent safety of flight compliance time, and we do not consider this unsafe condition to be an urgent safety of flight condition. Because we do not consider this unsafe condition to be an urgent safety of flight condition, we issued this action through the normal notice of proposed rulemaking

(NPRM)AD process followed by this final rule. The time of 50 hours TIS is an adequate compliance for this AD action and meets the FAA requirements of an NPRM followed by a final rule. Other FAA AD Provisions

(g)The following provisions also apply to this AD:

(1)Alternative Methods of Compliance (AMOCs): The Manager, Standards Staff, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Send information to ATTN: Sarjapur Nagarajan, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4145; fax:

(816)329-4090. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO.

(2)Airworthy Product: For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service.

(3)Reporting Requirements: For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ), the Office of Management and Budget

(OMB)has approved the information collection requirements and has assigned OMB Control Number 2120-0056. Related Information

(h)Refer to MCAI EASA AD No. F-2004-143, dated August 18, 2004; and Apex Aircraft Service Bulletin No. 040707, dated July 29, 2004, for related information. Material Incorporated by Reference

(i)You must use Apex Aircraft Service Bulletin No. 040707, dated July 29, 2004, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact Apex Aircraft, Bureau de Navigabilité, 1 route de Troyes, 21121 DAROIS—France, telephone:

(33)380 35 65 10; fax:

(33)380 35 65 15; e-mail: *apex-aircraft.com.*

(3)You may review copies at the FAA, Central Region, Office of the Regional Counsel, 901 Locust, Room 506, Kansas City, Missouri 64106; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html.* Issued in Kansas City, Missouri, on June 19, 2007. Kim Smith, Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-12319 Filed 6-28-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2006-24978; Directorate Identifier 2006-NM-108-AD; Amendment 39-15113; AD 2007-13-09] RIN 2120-AA64 Airworthiness Directives; McDonnell Douglas Model 717-200 Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for certain McDonnell Douglas Model 717-200 airplanes. This AD requires modifying the fuel boost pump container of the center tank. This AD results from fuel system reviews conducted by the manufacturer. We are issuing this AD to prevent exposing the fuel pump container vapor area to electrical arcing during a fuel pump motor case or connector burn through, which could result in a fuel tank explosion. DATES: This AD becomes effective August 3, 2007. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in the AD as of August 3, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC. Contact Boeing Commercial Airplanes, Long Beach Division, 3855 Lakewood Boulevard, Long Beach, California 90846, Attention: Data and Service Management, Dept. C1-L5A (D800-0024), for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: William Bond, Aerospace Engineer, Propulsion Branch, ANM-140L, FAA, Los Angeles Aircraft Certification Office, 3960 Paramount Boulevard, Lakewood, California 90712-4137; telephone

(562)627-5253; fax

(562)627-5210. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Operations office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The Docket Operations office (telephone

(800)647-5527) is located on the ground floor of the West Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a supplemental notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to certain McDonnell Douglas Model 717-200 airplanes. That supplemental NPRM was published in the **Federal Register** on April 30, 2007 (72 FR 21169). That supplemental NPRM proposed to require modifying the fuel boost pump container of the center tank. That supplemental NPRM also proposed to add airplanes to the applicability. Comments We provided the public the opportunity to participate in the development of this AD. No comments have been received on the supplemental NPRM or on the determination of the cost to the public. Clarification of Alternative Method of Compliance

(AMOC)Paragraph We have revised this action to clarify the appropriate procedure for notifying the principal inspector before using any approved AMOC on any airplane to which the AMOC applies. Conclusion We have carefully reviewed the available data and determined that air safety and the public interest require adopting the AD with the change described previously. We have determined that this change will neither increase the economic burden on any operator nor increase the scope of the AD. Costs of Compliance There are about 145 airplanes of the affected design in the worldwide fleet. The following table provides the estimated costs for U.S. operators to comply with this AD. Estimated Costs Action Work hours Average labor rate per hour Parts Cost per airplane Number of U.S.-registered airplanes Fleet cost Modification 2 $80 $1,180 $1,340 114 $152,760 Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(3)Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. See the ADDRESSES section for a location to examine the regulatory evaluation. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The Federal Aviation Administration

(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-13-09 McDonnell Douglas:** Amendment 39-15113. Docket No. FAA 2006-24978; Directorate Identifier 2006-NM-108-AD. Effective Date

(a)This AD becomes effective August 3, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to McDonnell Douglas Model 717-200 airplanes, certificated in any category; as identified in Boeing Service Bulletin 717-28-0013, Revision 2, dated September 13, 2006. Unsafe Condition

(d)This AD results from fuel system reviews conducted by the manufacturer. We are issuing this AD to prevent exposing the fuel pump container vapor area to electrical arcing during a fuel pump motor case or connector burn through, which could result in a fuel tank explosion. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Modification

(f)Within 78 months after the effective date of this AD, modify the fuel boost pump container of the center tank by doing all the actions specified in the Accomplishment Instructions of Boeing Service Bulletin 717-28-0013, Revision 2, dated September 13, 2006. Actions Accomplished According to Previous Issue of Service Bulletin

(g)Modifications accomplished before the effective date of this AD in accordance with Boeing Service Bulletin 717-28-0013, dated July 28, 2004; or Boeing Service Bulletin 717-28-0013, Revision 1, dated April 7, 2006; are considered acceptable for compliance with the corresponding action specified in this AD. Alternative Methods of Compliance (AMOCs) (h)(1) The Manager, Los Angeles Aircraft Certification Office (ACO), FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(2)To request a different method of compliance or a different compliance time for this AD, follow the procedures in 14 CFR 39.19. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Material Incorporated by Reference

(i)You must use Boeing Service Bulletin 717-28-0013, Revision 2, dated September 13, 2006, to perform the actions that are required by this AD, unless the AD specifies otherwise. The Director of the Federal Register approved the incorporation by reference of this document in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Boeing Commercial Airplanes, Long Beach Division, 3855 Lakewood Boulevard, Long Beach, California 90846, Attention: Data and Service Management, Dept. C1-L5A (D800-0024), for a copy of this service information. You may review copies at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html.* Issued in Renton, Washington, on June 13, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-11927 Filed 6-28-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-27302; Directorate Identifier 2006-NM-273-AD; Amendment 39-15114; AD 2007-13-10] RIN 2120-AA64 Airworthiness Directives; McDonnell Douglas DC-10-30 and DC-10-30F Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for certain McDonnell Douglas DC-10-30 and DC-10-30F airplanes. This AD requires installing Teflon sleeving around the fuel pump wire harness inside the conduit in the aft supplemental fuel tank. This AD results from fuel system reviews conducted by the manufacturer. We are issuing this AD to prevent the potential of ignition sources inside fuel tanks, which, in combination with flammable fuel vapors, could result in fuel tank explosions and consequent loss of the airplane. DATES: This AD becomes effective August 3, 2007. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in the AD as of August 3, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC. Contact Boeing Commercial Airplanes, Long Beach Division, 3855 Lakewood Boulevard, Long Beach, California 90846, Attention: Data and Service Management, Dept. C1-L5A (D800-0024), for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Samuel Lee, Aerospace Engineer, Propulsion Branch, ANM-140L, FAA, Los Angeles Aircraft Certification Office, 3960 Paramount Boulevard, Lakewood, California 90712-4137; telephone

(562)627-5262; fax

(562)627-5210. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(AD)docket on the Internet at *http://dms.dot.gov* or in person at the Docket Operations office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The Docket Operations office (telephone

(800)647-5527) is located on the ground floor of the West Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to certain McDonnell Douglas DC-10-30 and DC-10-30F (Model KC-10A and KDC-10) airplanes. That NPRM was published in the **Federal Register** on February 22, 2007 (72 FR 7939). That NPRM proposed to require installing Teflon sleeving around the fuel pump wire harness inside the conduit in the aft supplemental fuel tank. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the comment received. Request To Delete Certain Airplanes From the Applicability A private citizen requests that we delete McDonnell Douglas Model KC-10A and KDC-10 airplanes from the applicability of the NPRM. As justification for the request, the commenter states that none of the five affected airplanes identified in the effectivity of McDonnell Douglas DC-10 Service Bulletin 24-128, dated January 19, 1984, are Model KC-10A or KDC-10 airplanes. We agree to delete Model KC-10A and KDC-10 airplanes from the applicability of this AD. Boeing has confirmed that none of the affected airplanes are Model KC-10A or KDC-10 airplanes. Clarification of Alternative Method of Compliance

(AMOC)Paragraph We have revised this action to clarify the appropriate procedure for notifying the principal inspector before using any approved AMOC on any airplane to which the AMOC applies. Conclusion We have carefully reviewed the available data, including the comment received, and determined that air safety and the public interest require adopting the AD with the changes described previously. We have determined that these changes will neither increase the economic burden on any operator nor increase the scope of the AD. Costs of Compliance There are about 5 airplanes of the affected design in the worldwide fleet. This AD affects about 5 airplanes of U.S. registry. The required actions take about 2 work hours per airplane, at an average labor rate of $80 per work hour. The cost of required parts is negligible. Based on these figures, the estimated cost of the AD for U.S. operators is $800, or $160 per airplane. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(3)Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. See the ADDRESSES section for a location to examine the regulatory evaluation. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The Federal Aviation Administration

(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-13-10 McDonnell Douglas:** Amendment 39-15114. Docket No. FAA-2007-27302; Directorate Identifier 2006-NM-273-AD. Effective Date

(a)This AD becomes effective August 3, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to McDonnell Douglas Model DC-10-30 and DC-10-30F airplanes, certificated in any category; as identified McDonnell Douglas DC-10 Service Bulletin 24-128, dated January 19, 1984. Unsafe Condition

(d)This AD results from fuel system reviews conducted by the manufacturer. We are issuing this AD to prevent the potential of ignition sources inside fuel tanks, which, in combination with flammable fuel vapors, could result in fuel tank explosions and consequent loss of the airplane. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Modification

(f)Within 60 months after the effective date of this AD, install Teflon sleeving around the fuel pump wire harness inside the conduit in the aft supplemental fuel tank, in accordance with the Accomplishment Instructions of McDonnell Douglas DC-10 Service Bulletin 24-128, dated January 19, 1984. Alternative Methods of Compliance (AMOCs) (g)(1) The Manager, Los Angeles Aircraft Certification Office, FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Material Incorporated by Reference

(h)You must use McDonnell Douglas DC-10 Service Bulletin 24-128, dated January 19, 1984, to perform the actions that are required by this AD, unless the AD specifies otherwise. The Director of the Federal Register approved the incorporation by reference of this document in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Boeing Commercial Airplanes, Long Beach Division, 3855 Lakewood Boulevard, Long Beach, California 90846, Attention: Data and Service Management, Dept. C1-L5A (D800-0024), for a copy of this service information. You may review copies at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html.* Issued in Renton, Washington, on June 13, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-11932 Filed 6-28-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-27723 Directorate Identifier 2007-CE-029-AD; Amendment 39-15116; AD 2007-13-12] RIN 2120-AA64 Airworthiness Directives; PIAGGIO AERO INDUSTRIES S.p.A. Model P-180 Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: EASA EAD 2006-0072-E was issued on 31st March 2006 following a further failure of the forward support of the Main Wing Outboard Flap (MWOF), caused by corrosion. This condition, if not corrected, may cause surface twisting during deployment at landing. The analysis of that event highlighted the need for the reduction of the previous inspection interval which was mandated by ENAC through AD 2004-523, approved by EASA with reference 2004-12521. We are issuing this AD to require actions to correct the unsafe condition on these products. DATES: This AD becomes effective August 3, 2007. On August 3, 2007, the Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the U.S. Department of Transportation, Docket Operations, M-30 West Building Ground Floor, Room W12-140, New Jersey Avenue, SE., Washington, DC. FOR FURTHER INFORMATION CONTACT: Sarjapur Nagarajan, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4145; fax:

(816)329-4090. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the **Federal Register** on April 24, 2007 (72 FR 20298). That NPRM proposed to correct an unsafe condition for the specified products. The MCAI states that: EASA EAD 2006-0072-E was issued on 31st March 2006 following a further failure of the forward support of the Main Wing Outboard Flap (MWOF), caused by corrosion. This condition, if not corrected, may cause surface twisting during deployment at landing. The analysis of that event highlighted the need for the reduction of the previous inspection interval which was mandated by ENAC through AD 2004-523, approved by EASA with reference 2004-12521. Now the TC holder has developed a new type of forward support for the Main Wing Outboard Flap with characteristics that improve the resistance to corrosion. When the new support is installed, the repetitive Eddy current inspection that was introduced by EASA EAD 2006-0072-E is no longer required. Comments We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM or on the determination of the cost to the public. Conclusion We reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed. Differences Between This AD and the MCAI or Service Information We have reviewed the MCAI and related service information and, in general, agree with their substance. But we might have found it necessary to use different words from those in the MCAI to ensure the AD is clear for U.S. operators and is enforceable. In making these changes, we do not intend to differ substantively from the information provided in the MCAI and related service information. We might also have required different actions in this AD from those in the MCAI in order to follow FAA policies. Any such differences are highlighted in a **Note** within the AD. Costs of Compliance We estimate that this AD will affect 7 products of U.S. registry. We also estimate that it will take about 16 work-hours per product to comply with basic requirements of this AD. The average labor rate is $80 per work-hour. Based on these figures, we estimate the cost of this AD to the U.S. operators to be $8,960 or $1,280 per product. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(800)647-5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by adding the following new AD: **2007-13-12 Piaggio Aero Industries S.p.A.:** Amendment 39-15116; Docket No. FAA-2007-27723; Directorate Identifier 2007-CE-029-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective August 3, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to Model P-180 airplanes, serial numbers 1002, 1004 through 1107, 1109, and 1110, certificated in any category. Subject

(d)Air Transport Association of America

(ATA)Code 57: Wings. Reason

(e)The mandatory continuing airworthiness information

(MCAI)states: EASA EAD 2006-0072-E was issued on 31st March 2006 following a further failure of the forward support of the Main Wing Outboard Flap (MWOF), caused by corrosion. This condition, if not corrected, may cause surface twisting during deployment at landing. The analysis of that event highlighted the need for the reduction of the previous inspection interval which was mandated by ENAC through AD 2004-523, approved by EASA with reference 2004-12521. Now the TC holder has developed a new type of forward support for the Main Wing Outboard Flap with characteristics that improve the resistance to corrosion. When the new support is installed, the repetitive Eddy current inspection that was introduced by EASA EAD 2006-0072-E is no longer required. Actions and Compliance

(f)Unless already done, do the following actions:

(1)Within the next 200 hours time-in-service

(TIS)after August 3, 2007 (the effective date of this AD) or within 60 days after August 3, 2007 (the effective date of this AD), whichever occurs first, replace the outboard flap track forward bushing and the outboard flap track forward support. Do the replacements using the Accomplishment Instructions detailed in Part A of Piaggio Aero Industries S.p.A. Mandatory Service Bulletin

(SB)No. 80-0210, Rev 4, dated July 19, 2006.

(2)At intervals not to exceed 1,500 hours TIS after doing the replacements required in paragraph (f)(1) of this AD, visually inspect the outboard flap track forward support for traces of any kind of corrosion and/or protective coat/finishing wear damage. Do the inspections using the Accomplishment Instructions detailed in Part B of Piaggio Aero Industries S.p.A. Mandatory SB No. 80-0210, Rev 4, dated July 19, 2006.

(3)Before further flight after each inspection required in paragraph (f)(2) of this AD in which any kind of corrosion or wear damage is found, contact the manufacturer for a repair scheme and incorporate the repair. FAA AD Differences Note: This AD differs from the MCAI and/or service information as follows: No differences. Other FAA AD Provisions

(g)The following provisions also apply to this AD:

(1)*Alternative Methods of Compliance (AMOCs):* The Manager, Standards Staff, FAA, Small Airplane Directorate, ATTN: Sarjapur Nagarajan, Aerospace Engineer, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4145; fax:

(816)329-4090, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO.

(2)*Airworthy Product:* For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service.

(3)*Reporting Requirements:* For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ), the Office of Management and Budget

(OMB)has approved the information collection requirements and has assigned OMB Control Number 2120-0056. Related Information

(h)Refer to MCAI European Aviation Safety Agency

(EASA)AD No. 2006-0305, dated October 9, 2006; and Piaggio Aero Industries S.p.A. Mandatory Service Bulletin No. 80-0210, Rev 4, dated July 19, 2006, for related information. Material Incorporated by Reference

(i)You must use Piaggio Aero Industries S.p.A. Mandatory Service Bulletin No. 80-0210, Rev 4, dated July 19, 2006, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact PIAGGIO AERO INDUSTRIES S.p.A, Via Cibrario 4, 16154 Genoa, Italy; telephone: +39 010 6481 856; facsimile: +39 010 6481 374.

(3)You may review copies at the FAA, Central Region, Office of the Regional Counsel, 901 Locust, Room 506, Kansas City, Missouri 64106; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html.* Issued in Kansas City, Missouri, on June 15, 2007. Kim Smith, Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-12008 Filed 6-28-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-27508; Directorate Identifier 2006-NM-252-AD; Amendment 39-15117; AD 2007-13-13] RIN 2120-AA64 Airworthiness Directives; Empresa Brasileira de Aeronautica S.A. (EMBRAER) ERJ 170 Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued by an airworthiness authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as an obstruction at the cargo compartment fire extinguisher system drier metering unit

(DMU)inlet, affecting the system effectiveness and, consequently, making the fire extinguishing capability at those compartments inadequate should a fire erupt. We are issuing this AD to require actions to correct the unsafe condition on these products. DATES: This AD becomes effective August 3, 2007. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of August 3, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC. FOR FURTHER INFORMATION CONTACT: Todd Thompson, Aerospace Engineer, International Branch, ANM-116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1175; fax

(425)227-1149. SUPPLEMENTARY INFORMATION: Discussion The FAA is implementing a new process for streamlining the issuance of ADs related to MCAI. This streamlined process will allow us to adopt MCAI safety requirements in a more efficient manner and will reduce safety risks to the public. This process continues to allow all FAA AD issuance processes to meet legal, economic, Administrative Procedure Act, and **Federal Register** requirements. We also continue to meet our technical decision-making responsibilities to identify and correct unsafe conditions on U.S.-certificated products. This AD references the MCAI and related service information that we considered in forming the engineering basis to correct the unsafe condition. The AD contains text copied from the MCAI and for this reason might not follow our plain language principles. We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the **Federal Register** on March 12, 2007 (72 FR 10947). That NPRM proposed to require installation of a debris strainer at the drier metering unit

(DMU)inlet. The MCAI states that it has been found the occurrence of one case of obstruction at the cargo compartment fire extinguisher system DMU inlet, affecting the system effectiveness and, consequently, making the fire extinguishing capability at those compartments inadequate should a fire erupt. Comments We gave the public the opportunity to participate in developing this AD. We considered the comment received. Request To Revise Applicability The airplane manufacturer, EMBRAER, requests that we change the proposed applicability to refer to certain Model ERJ 170 airplanes identified in EMBRAER Service Bulletin 170-26-0002, dated November 11, 2005. We agree to revise the applicability. The service bulletin identifies only those airplanes that have an affected DMU installed. We have revised paragraph

(c)of this AD to reference the service bulletin. We have coordinated this change with Agência Nacional de Aviação Civil (ANAC). Conclusion We reviewed the available data, including the comment received, and determined that air safety and the public interest require adopting the AD with the change described previously. We determined that this change will not increase the economic burden on any operator or increase the scope of the AD. Differences Between This AD and the MCAI or Service Information We have reviewed the MCAI and related service information and, in general, agree with their substance. But we might have found it necessary to use different words from those in the MCAI to ensure the AD is clear for U.S. operators and is enforceable in a U.S. court of law. In making these changes, we do not intend to differ substantively from the information provided in the MCAI and related service information. We might also have required different actions in this AD from those in the MCAI in order to follow our FAA policies. Any such differences are described in a separate paragraph of the AD. These requirements, if any, take precedence over the actions copied from the MCAI. Costs of Compliance We estimate that this AD will affect 75 products of U.S. registry. We also estimate that it will take about 4 work-hours per product to comply with this AD. The average labor rate is $80 per work-hour. Required parts will cost about $0 per product. Where the service information lists required parts costs that are covered under warranty, we have assumed that there will be no charge for these parts. As we do not control warranty coverage for affected parties, some parties may incur costs higher than estimated here. Based on these figures, we estimate the cost of this AD to the U.S. operators to be $24,000, or $320 per product. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(3)Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD Docket. Examining the AD Docket You may examine the AD docket on the Internet at *http://dms.dot.gov;* or in person at the Docket Operations office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains the NPRM, the regulatory evaluation, any comments received, and other information. The street address for the Docket Operations office (telephone

(800)647-5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by adding the following new AD: **2007-13-13 Empresa Brasileira De Aeronautica S.A. (EMBRAER):** Amendment 39-15117. Docket No. FAA-2007-27508; Directorate Identifier 2006-NM-252-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective August 3, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to EMBRAER Model ERJ 170-100 LR, -100 STD, -100 SE, -100 SU, -200 LR, -200 STD, and -200 SU airplanes, as identified in EMBRAER Service Bulletin 170-26-0002, dated November 11, 2005; certificated in any category. Reason

(d)The MCAI states that it has been found the occurrence of one case of obstruction at the cargo compartment fire extinguisher system drier metering unit

(DMU)inlet, affecting the system effectiveness and, consequently, making the fire extinguishing capability at those compartments inadequate should a fire erupt. The MCAI requires installation of a debris strainer at the DMU inlet. Actions and Compliance

(e)Unless already done, do the following actions. Within 700 flight hours after the effective date of this AD, install a debris strainer at the DMU inlet, in accordance with the detailed instructions and procedures described in EMBRAER Service Bulletin 170-26-0002, dated November 11, 2005. FAA AD Differences Note: This AD differs from the MCAI and/or service information as follows: No Differences. Other FAA AD Provisions

(f)The following provisions also apply to this AD:

(1)*Alternative Methods of Compliance (AMOCs):* The Manager, International Branch, ANM-116, Transport Airplane Directorate, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Send information to ATTN: Todd Thompson, Aerospace Engineer, International Branch, ANM-116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1175; fax

(425)227-1149. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO.

(3)*Reporting Requirements:* For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act, the Office of Management and Budget

(OMB)has approved the information collection requirements and has assigned OMB Control Number 2120-0056. Related Information

(g)Refer to MCAI Brazilian Airworthiness Directive 2006-01-03, effective February 7, 2006; and EMBRAER Service Bulletin 170-26-0002, dated November 11, 2005; for related information. Material Incorporated by Reference

(h)You must use EMBRAER Service Bulletin 170-26-0002, dated November 11, 2005, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact Empresa Brasileira de Aeronautica S.A. (EMBRAER), P.O. Box 343—CEP 12.225, Sao Jose dos Campos—SP, Brazil.

(3)You may review copies at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html.* Issued in Renton, Washington, on June 18, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-12221 Filed 6-28-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection DEPARTMENT OF THE TREASURY 19 CFR Parts 10, 162, 163, and 178 [USCBP-2007-0056; CBP Dec. 07-51] RIN 1505-AB76 United States-Morocco Free Trade Agreement AGENCIES: U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury. ACTION: Interim regulations; solicitation of comments. SUMMARY: This document amends U.S. Customs and Border Protection (“CBP”) regulations on an interim basis to implement the preferential tariff treatment and other customs-related provisions of the United States-Morocco Free Trade Agreement entered into by the United States and the Kingdom of Morocco. DATES: Interim rule effective June 29, 2007; comments must be received by August 28, 2007. 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 number USCBP-2007-0056. • *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, 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 Mr. Joseph Clark at

(202)572-8768. FOR FURTHER INFORMATION CONTACT: *Textile Operational Aspects:* Robert Abels, Office of International Trade,

(202)344-1959. *Other Operational Aspects:* Seth Mazze, Office of International Trade,

(202)344-2634. *Audit Aspects:* Mark Hanson, Regulatory Audit, Office of International Trade,

(202)863-6035. *Legal Aspects:* Daniel Cornette, Office of International Trade,

(202)572-8731. 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. 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 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. See ADDRESSES above for information on how to submit comments. Background On June 15, 2004, the United States and the Kingdom of Morocco (the “Parties”) signed the U.S.-Morocco Free Trade Agreement (“MFTA” or “Agreement”). The stated objectives of the MFTA are to: Encourage expansion and diversification of trade between the Parties; eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties; promote conditions of fair competition in the free trade area; substantially increase investment opportunities in the territories of the Parties; provide adequate and effective protection and enforcement of intellectual property rights in each Party's territory; create effective procedures for the implementation and application of the MFTA, for its joint administration and for the resolution of disputes; and establish a framework for further regional and multilateral cooperation to expand and enhance the benefits of the MFTA. The provisions of the MFTA were adopted by the United States with the enactment of the United States-Morocco Free Trade Agreement Implementation Act (the “Act”), Pub. L. 108-302, 118 Stat. 1103 (19 U.S.C. 3805 note), on August 17, 2004. Section 205 of the Act requires that regulations be prescribed as necessary to implement these provisions of the MFTA. On December 22, 2005, the President signed Proclamation 7971 to implement the provisions of the MFTA. The proclamation, which was published in the **Federal Register** on December 27, 2005 (70 FR 76649), modified the Harmonized Tariff Schedule of the United States (“HTSUS”) as set forth in Annexes I and II of Publication 3721 of the U.S. International Trade Commission. The modifications to the HTSUS included the addition of new General Note 27, incorporating the relevant MFTA rules of origin as set forth in the Act, and the insertion throughout the HTSUS of the preferential duty rates applicable to individual products under the MFTA where the special program indicator “MA” appears in parenthesis in the “Special” rate of duty subcolumn. The modifications to the HTSUS also included a new Subchapter XII to Chapter 99 to provide for temporary tariff rate quotas and applicable safeguards implemented by the MFTA. U.S. Customs and Border Protection (“CBP”) is responsible for administering the provisions of the MFTA and the Act that relate to the importation of goods into the United States from Morocco. Those customs-related MFTA provisions that require implementation through regulation include certain tariff and non-tariff provisions within Chapter One (Initial Provisions and Definitions), Chapter Two (National Treatment and Market Access for Goods), Chapter Four (Textiles and Apparel), Chapter Five (Rules of Origin), and Chapter Six (Customs Administration). In Chapter One of the MFTA, certain general definitions in Article 1.3 have been incorporated into the MFTA implementing regulations. These regulations also implement Article 2.6 (Goods Re-entered after Repair or Alteration) of Chapter Two of the MFTA. Chapter Four of the MFTA sets forth the measures relating to trade in textile and apparel goods between Morocco and the United States under the MFTA. The provisions within Chapter Four that require regulatory action by CBP are Article 4.3 (Rules of Origin and Related Matters), Article 4.4 (Customs and Administrative Cooperation), and Article 4.5 (Definitions). Chapter Five of the MFTA sets forth the rules for determining whether an imported good qualifies as an originating good of the United States or Morocco (MFTA Party) and, as such, is therefore eligible for preferential tariff (duty-free or reduced duty) treatment as specified in the Agreement. Under Article 5.1, originating goods may be grouped in three broad categories:

(1)Goods that are wholly the growth, product, or manufacture of one or both of the Parties;

(2)goods (other than those covered by the product-specific rules set forth in Annex 4-A or Annex 5-A) that are new or different articles of commerce that have been grown, produced, or manufactured in the territory of one or both of the Parties, and that have a minimum value-content, *i.e.,* at least 35 percent of the good's appraised value must be attributed to the cost or value of materials produced in one or both of the Parties plus the direct costs of processing operations performed in one or both of the Parties; and

(3)goods that satisfy the product-specific rules set forth in Annex 4-A (textile or apparel goods) or Annex 5-A (certain non-textile or non-apparel goods). Article 5.2 explains that the term “new or different article of commerce” means a good that has been substantially transformed from a good or material that is not wholly the growth, product, or manufacture of one or both of the Parties and that has a new name, character, or use distinct from the good or material from which it was transformed. Article 5.3 provides that a good will not be considered to be a new or different article of commerce as the result of undergoing simple combining or packaging operations, or mere dilution with water or another substance that does not materially alter the characteristics of the good. Article 5.4 provides for the accumulation of production in the territory of one or both of the Parties in determining whether a good qualifies as originating under the MFTA. Articles 5.5 and 5.6 set forth the rules for calculating the value of materials and the direct costs of processing operations, respectively, for purposes of determining whether a good satisfies the 35 percent value-content requirement. Articles 5.7 through 5.9 consist of additional sub-rules applicable to originating goods, involving retail packaging materials, packing materials for shipment, indirect materials, and transit and transshipment. In addition, Articles 5.10 and 5.11 set forth the procedural requirements that apply under the MFTA, in particular with regard to importer claims for preferential tariff treatment. Article 5.14 provides definitions of certain of the terms used in Chapter Five of the MFTA. The basic rules of origin in Chapter Five of the MFTA are set forth in General Note 27, HTSUS. Chapter Six sets forth the customs operational provisions related to the implementation and administration of the MFTA. In order to provide transparency and facilitate their use, the majority of the MFTA implementing regulations set forth in this document have been included within new Subpart M in Part 10 of the CBP regulations (19 CFR Part 10). However, in those cases in which MFTA implementation is more appropriate in the context of an existing regulatory provision, the MFTA regulatory text has been incorporated in an existing Part within the CBP regulations. In addition, this document sets forth several cross-references and other consequential changes to existing regulatory provisions to clarify the relationship between those existing provisions and the new MFTA implementing regulations. The regulatory changes are discussed below in the order in which they appear in this document. Discussion of Amendments Part 10 Section 10.31(f) concerns temporary importations under bond. It is amended by adding references to certain goods originating in Morocco for which, like goods originating in Canada, Mexico, Singapore and Chile, no bond or other security will be required when imported temporarily for prescribed uses. The provisions of MFTA Article 2.5 (temporary admission of goods) are already reflected in existing temporary importation bond or other provisions contained in Part 10 of the CBP regulations and in Chapter 98 of the HTSUS. Part 10, Subpart M General Provisions Section 10.761 outlines the scope of new Subpart M, Part 10. This section also clarifies that, except where the context otherwise requires, the requirements contained in Subpart M, Part 10 are in addition to general administrative and enforcement provisions set forth elsewhere in the CBP regulations. Thus, for example, the specific merchandise entry requirements contained in Subpart M, Part 10 are in addition to the basic entry requirements contained in Parts 141-143 of the CBP regulations. Section 10.762 sets forth definitions of common terms used in multiple contexts or places within Subpart M, Part 10. Although the majority of the definitions in this section are based on definitions contained in Article 1.3 of the MFTA and § 3 of the Act, other definitions have also been included to clarify the application of the regulatory texts. Additional definitions which apply in a more limited Subpart M, Part 10 context are set forth elsewhere with the substantive provisions to which they relate. Import Requirements Section 10.763 sets forth the procedure for claiming MFTA tariff benefits at the time of entry. Section 10.764, as provided in MFTA Article 5.10(b), requires a U.S. importer, upon request, to submit a declaration setting forth all pertinent information concerning the growth, production, or manufacture of the good. Included in § 10.764 is a provision that the declaration may be used either for a single importation or for multiple importations of identical goods. Section 10.765 sets forth certain importer obligations regarding the truthfulness of information and documents submitted in support of a claim for preferential tariff treatment under the MFTA. As provided in MFTA Article 5.10(a), this section states that a U.S. importer who makes a claim for preferential tariff treatment for a good is deemed to have certified that the good qualifies for such treatment. Section 10.766 provides that the importer's declaration is not required for certain non-commercial or low-value importations. Section 10.767 implements the portion of MFTA Article 5.10 concerning the maintenance of records necessary for the preparation of the declaration. Section 10.768, which is based on MFTA Article 5.11.1, provides for the denial of MFTA tariff benefits if the importer fails to comply with any of the requirements of Subpart M, Part 10, CBP regulations. Rules of Origin Sections 10.769 through 10.777 provide the implementing regulations regarding the rules of origin provisions of General Note 27, HTSUS, Article 4.3 and Chapter Five of the MFTA, and § 203 of the Act. Definitions Section 10.769 sets forth terms that are defined for purposes of the rules of origin. CBP notes that, pursuant to letters of understanding exchanged between the Parties on June 15, 2004, in determining whether a good meets the definition of a “new or different article of commerce” in paragraph

(i)of § 10.769, the United States may be guided by the rules of origin set forth in Part 102, CBP regulations (19 CFR Part 102). General Rules of Origin Section 10.770 includes the basic rules of origin established in Article 5.1 of the MFTA, section 203(b) of the Act, and General Note 27(b), HTSUS. Paragraph

(a)of § 10.770 sets forth the three basic categories of goods that are considered originating goods under the MFTA. Paragraph (a)(1) of § 10.770 specifies those goods that are considered originating goods because they are wholly the growth, product, or manufacture of one or both of the Parties. Paragraph (a)(2) provides that goods are considered originating goods if they:

(1)Are new or different articles of commerce that have been grown, produced, or manufactured in the territory of one or both of the Parties;

(2)are classified in HTSUS provisions that are not covered by the product-specific rules set forth in General Note 27(h), HTSUS; and

(3)meet a 35 percent value-content requirement. Finally, paragraph (a)(3) states that goods are considered originating goods if:

(1)They are classified in HTSUS provisions that are covered by the product-specific rules set forth in General Note 27(h), HTSUS;

(2)each non-originating material used in the production of the good in the territory of one or both of the Parties undergoes an applicable change in tariff classification or otherwise satisfies the requirements specified in General Note 27(h), HTSUS; and

(3)the goods meet any other requirements specified in General Note 27, HTSUS. Paragraph

(b)of § 10.770 sets forth the basic rules that apply for purposes of determining whether a good satisfies the 35 percent value-content requirement referred to in § 10.770(a)(2) . Paragraph

(c)of § 10.770 implements Article 5.3 of the MFTA, relating to the simple combining or packaging or mere dilution exceptions to the “new or different article of commerce” requirement of § 10.770(a)(2). Since the language in Article 5.3 of the MFTA (and § 203(i)(7)(B) of the Act) is nearly identical to the language found in § 213(a)(2) of the Caribbean Basin Economic Recovery Act (“CBERA”) (19 U.S.C. 2703(a)(2)), § 10.770(c) incorporates by reference the examples and principles set forth in § 10.195(a)(2) of CBP's implementing CBERA regulations. Originating Textile or Apparel Goods Section 10.771(a), as provided for in Article 4.3.7 of the MFTA, sets forth a *de minimis* rule for certain textile or apparel goods that may be considered to qualify as originating goods even though they fail to satisfy the applicable change in tariff classification set out in General Note 27(h). This paragraph also includes an exception to the *de minimis* rule. Section 10.771(b), which is based on Article 4.3.8 of the MFTA, sets forth a special rule for textile or apparel goods classifiable under General Rule of Interpretation 3, HTSUS, as goods put up in sets for retail sale. Accumulation Section 10.772, which is derived from MFTA Article 5.4, sets forth the rule by which originating goods or materials from the territory of a Party that are used in the production of a good in the territory of the other Party will be considered to originate in the territory of such other Party. In addition, this section also establishes that a good or material that is produced by one or more producers in the territory of one or both of the Parties is an originating good or material if the article satisfies all of the applicable requirements of the rules of origin of the MFTA. Value of Materials Section 10.773 implements Article 5.5 of the MFTA, relating to the calculation of the value of materials that may be applied toward satisfaction of the 35 percent value-content requirement. Direct Costs of Processing Operations Section 10.774, which reflects Article 5.6 of the MFTA, sets forth provisions regarding the calculation of direct costs of processing operations for purposes of the 35 percent value-content requirement. Packaging and Packing Materials and Containers for Retail Sale and for Shipment Section 10.775 is based on Article 5.7 of the MFTA and provides that retail packaging materials and packing materials for shipment are to be disregarded in determining whether a good qualifies as originating under the MFTA, except to the extent that the value of such packaging and packing materials may be included for purposes of meeting the 35 percent value-content requirement. Indirect Materials Section 10.776, which is derived from Article 5.8 of the MFTA, provides that indirect materials will be disregarded in determining whether a good qualifies as an originating good under the MFTA, except to the extent that the cost of such indirect materials may be included toward satisfying the 35 percent value-content requirement. Imported Directly Section 10.777(a) sets forth the basic rule, found in Article 5.1 of the MFTA, that a good must be imported directly from the territory of a Party into the territory of the other Party to qualify as an originating good under the MFTA. This paragraph further provides that, as set forth in Article 5.9 of the MFTA, a good will not be considered to be imported directly if, after exportation from the territory of a Party, the good undergoes production, manufacturing, or any other operation outside the territories of the Parties, other than certain minor operations. Paragraph

(b)of § 10.777 provides that an importer making a claim for preferential tariff treatment under the MFTA may be required to demonstrate, through the submission of documentary evidence, that the “imported directly” requirement was satisfied. Tariff Preference Level Section 10.778 sets forth the procedures for claiming MFTA tariff benefits for non-originating fabric or apparel goods entitled to preference under an applicable tariff preference level (“TPL”). Section 10.779, which is based on Articles 4.3.9 and 4.3.10, describes the non-originating fabric and apparel goods that are eligible for TPL claims under the MFTA. Section 10.780 provides for the denial of a TPL claim if the importer fails to comply with any applicable requirement under Subpart M, Part 10, CBP regulations, including the failure to provide documentation, when requested by CBP, establishing that the good was imported directly from the territory of a Party into the territory of the other Party. Section 10.781 establishes that non-originating fabric or apparel goods are entitled to preferential tariff treatment under an applicable TPL only if they are imported directly from the territory of a Party into the territory of the other Party. Origin Verifications and Determinations Section 10.784 implements MFTA Article 5.11.2 by providing that a claim for MFTA preferential tariff treatment, including any information submitted in support of the claim, will be subject to such verification as CBP deems necessary. This section further sets forth the circumstances under which a claim may be denied based on the results of the verification. Section 10.785, which is based on Article 4.4 of the MFTA, concerns verifications conducted in Morocco by Moroccan authorities (at the request of CBP) relating to textile and apparel goods imported in the United States, whether or not a claim is made for MFTA preferential tariff treatment. U.S. officials may also assist in a verification in Morocco under this section. Section 10.785 also provides for specific actions to be taken by CBP during and after the verification, if directed by the Committee for the Implementation of Textile Agreements (CITA). Section 10.786 implements MFTA Article 5.11.3 by providing that CBP will issue a determination to the importer when CBP determines that a claim for MFTA preferential tariff treatment should be denied based on the results of a verification. This section also prescribes the information required to be included in the determination. Penalties Section 10.787 concerns the general application of penalties to MFTA transactions and is based on MFTA Article 6.9. Goods Returned After Repair or Alteration Section 10.788 implements MFTA Article 2.6 regarding duty treatment on goods re-entered after repair or alteration in Morocco. Part 162 Part 162 contains regulations regarding the inspection and examination of, among other things, imported merchandise. A cross-reference is added to § 162.0, which is the scope section of the part, to refer readers to the additional MFTA records maintenance and examination provisions contained in new Subpart M, Part 10, CBP regulations. Part 163 A conforming amendment is made to § 163.1 to include the maintenance of any documentation that the importer may have in support of a claim for preference under the MFTA as an activity for which records must be maintained. Also, the list of records and information required for the entry of merchandise appearing in the Appendix to Part 163 (commonly known as the (a)(1)(A) list) is also amended to add the MFTA records that the importer may have in support of a MFTA claim for preferential tariff treatment. Part 178 Part 178 sets forth the control numbers assigned to information collections of CBP by the Office of Management and Budget, pursuant to the Paperwork Reduction Act of 1995, Public Law 104-13. The list contained in § 178.2 is amended to add the information collections used by CBP to determine eligibility for a tariff preference or other rights or benefits under the MFTA and the Act. Inapplicability of Notice and Delayed Effective Date Requirements Under section 553 of the Administrative Procedure Act (“APA”) (5 U.S.C. 553), agencies amending their regulations generally are required to publish a notice of proposed rulemaking in the **Federal Register** that solicits public comment on the proposed amendments, consider public comments in deciding on the final content of the final amendments, and publish the final amendments at least 30 days prior to their effective date. However, section 553(a)(1) of the APA provides that the standard prior notice and comment procedures and delayed effective date provisions of 5 U.S.C. 553(d) do not apply to agency rulemaking that involves a foreign affairs function of the United States. CBP has determined that these interim regulations involve the foreign affairs function of the United States, as they implement preferential tariff treatment and related provisions of the MFTA. Therefore, the rulemaking requirements under the APA do not apply and this interim rule will be effective upon publication. However, CBP is soliciting comments in this interim rule and will consider all comments it receives before issuing a final rule. Executive Order 12866 and Regulatory Flexibility Act CBP has determined that this document is not a regulation or rule subject to the provisions of Executive Order 12866 of September 30, 1993 (58 FR 51735, October 1993), because it pertains to a foreign affairs function of the United States and implements an international agreement, as described above, and therefore is specifically exempted by section 3(d)(2) of Executive Order 12866. Because a notice of proposed rulemaking is not required under section 553(b) of the APA for the reasons described above, CBP notes that the provisions of the Regulatory Flexibility Act, as amended (5 U.S.C. 601 *et seq.* ), do not apply to this rulemaking. Accordingly, CBP also notes that this interim rule is not subject to the regulatory analysis requirements or other requirements of 5 U.S.C. 603 and 604. Paperwork Reduction Act These regulations are being issued without prior notice and public procedure pursuant to the Administrative Procedure Act (5 U.S.C. 553). For this reason, the collections of information contained in these regulations have been reviewed and, pending receipt and evaluation of public comments, approved by the Office of Management and Budget in accordance with the requirements of the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1651-0117. The collections of information in these regulations are in §§ 10.763 and 10.764. This information is required in connection with claims for preferential tariff treatment and for the purpose of the exercise of other rights under the MFTA and the Act and will be used by CBP to determine eligibility for a tariff preference or other rights or benefits under the MFTA and the Act. The likely respondents are business organizations including importers, exporters and manufacturers. *Estimated total annual reporting burden:* 800 hours. *Estimated average annual burden per respondent:* 0.2 hours. *Estimated number of respondents:* 4000. *Estimated annual frequency of responses:* 1. Comments concerning the collections of information and the accuracy of the estimated annual burden, and suggestions for reducing that burden, should be directed 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, U.S. Customs and Border Protection, 1300 Pennsylvania Avenue, NW. (Mint Annex), Washington, DC 20229. Signing Authority This document is being issued in accordance with § 0.1(a)(1) of the CBP regulations (19 CFR 0.1(a)(1)) pertaining to the authority of the Secretary of the Treasury (or his/her delegate) to approve regulations related to certain customs revenue functions. List of Subjects 19 CFR Part 10 Alterations, Bonds, Customs duties and inspection, Exports, Imports, Preference programs, Repairs, Reporting and recordkeeping requirements, Trade agreements. 19 CFR Part 162 Administrative practice and procedure, Customs duties and inspection, Penalties, Trade agreements. 19 CFR Part 163 Administrative practice and procedure, Customs duties and inspection, Export, Import, Reporting and recordkeeping requirements, Trade agreements. 19 CFR Part 178 Administrative practice and procedure, Exports, Imports, Reporting and recordkeeping requirements. Amendments to the CBP Regulations Accordingly, chapter I of title 19, Code of Federal Regulations (19 CFR chapter I), is amended as set forth below. PART 10—ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC. 1. The general authority citation for Part 10 continues to read, and the specific authority for Subpart M is added to read as follows: Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508, 1623, 1624, 3314; Sections 10.761 through 10.789 also issued under Pub. L. 108-302, 118 Stat. 1103 (19 U.S.C. 3805 note). 2. In § 10.31, paragraph (f), the last sentence is revised to read as follows: § 10.31 Entry; bond.

(f)* * * In addition, notwithstanding any other provision of this paragraph, in the case of professional equipment necessary for carrying out the business activity, trade or profession of a business person, equipment for the press or for sound or television broadcasting, cinematographic equipment, articles imported for sports purposes and articles intended for display or demonstration, if brought into the United States by a resident of Canada, Mexico, Singapore, Chile, or Morocco and entered under Chapter 98, Subchapter XIII, HTSUS, no bond or other security will be required if the entered article is a good originating, within the meaning of General Notes 12, 25, 26, or 27, HTSUS, in the country in which the importer is a resident. 3. Part 10, CBP regulations, is amended by adding Subpart M to read as follows: Subpart M—United States-Morocco Free Trade Agreement Sec. General Provisions 10.761 Scope. 10.762 General definitions. Import Requirements 10.763 Filing of claim for preferential tariff treatment upon importation. 10.764 Declaration. 10.765 Importer obligations. 10.766 Declaration not required. 10.767 Maintenance of records. 10.768 Effect of noncompliance; failure to provide documentation regarding transshipment. Rules of Origin 10.769 Definitions. 10.770 Originating goods. 10.771 Textile or apparel goods. 10.772 Accumulation. 10.773 Value of materials. 10.774 Direct costs of processing operations. 10.775 Packaging and packing materials and containers for retail sale and for shipment. 10.776 Indirect materials. 10.777 Imported directly. Tariff Preference Level 10.778 Filing of claim for tariff preference level. 10.779 Goods eligible for tariff preference claims. 10.780 Transshipment of nonoriginating fabric or apparel goods. 10.781 Effect of noncompliance; failure to provide documentation regarding transshipment of nonoriginating fabric or apparel goods. Origin Verifications and Determinations 10.784 Verification and justification of claim for preferential treatment. 10.785 Special rule for verifications in Morocco of U.S. imports of textile and apparel products. 10.786 Issuance of negative origin determinations. Penalties 10.787 Violations relating to the MFTA. Goods Returned After Repair or Alteration 10.788 Goods re-entered after repair or alteration in Morocco. Subpart M—United States-Morocco Free Trade Agreement General Provisions § 10.761 Scope. This subpart implements the duty preference and related customs provisions applicable to imported goods under the United States-Morocco Free Trade Agreement (the MFTA) signed on June 15, 2004, and under the United States-Morocco Free Trade Agreement Implementation Act (the Act; 118 Stat. 1103). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions implementing certain aspects of the MFTA and the Act are contained in Parts 162 and 163 of this chapter. § 10.762 General definitions. As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:

(a)*Claim of origin* . “Claim of origin” means a claim that a good is an originating good;

(b)*Claim for preferential tariff treatment* . “Claim for preferential tariff treatment” means a claim that a good is entitled to the duty rate applicable under the MFTA to an originating good;

(c)*Customs Valuation Agreement* . “Customs Valuation Agreement” means the *Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994* , which is part of the WTO Agreement;

(d)*Customs duty* . “Customs duty” includes any customs or import duty and a charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any:

(1)Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994 in respect of like, directly competitive, or substitutable goods of the Party or in respect of goods from which the imported good has been manufactured or produced in whole or in part;

(2)Antidumping or countervailing duty; and

(3)Fee or other charge in connection with importation commensurate with the cost of services rendered;

(e)*Days* . “Days” means calendar days.

(f)*Enterprise* . “Enterprise” means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;

(g)*Foreign material* . “Foreign material” means a material other than a material produced in the territory of one or both of the Parties;

(h)*GATT 1994* . “GATT 1994” means the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;

(i)*Good* . “Good” means any merchandise, product, article, or material;

(j)*Harmonized System* . “Harmonized System (HS)” means the *Harmonized Commodity Description and Coding System* , including its General Rules of Interpretation, Section Notes, and Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws;

(k)*Heading* . “Heading” means the first four digits in the tariff classification number under the Harmonized System;

(l)*HTSUS* . “HTSUS” means the *Harmonized Tariff Schedule of the United States* as promulgated by the U.S. International Trade Commission;

(m)*Originating* . “Originating” means a good qualifying under the rules of origin set forth in General Note 27, HTSUS, and MFTA Chapter Four (Textiles and apparel) or Chapter Five (Rules of Origin);

(n)*Party* . “Party” means the United States or the Kingdom of Morocco;

(o)*Person* . “Person” means a natural person or an enterprise;

(p)*Preferential tariff treatment* . “Preferential tariff treatment” means the duty rate applicable under the MFTA to an originating good;

(q)*Subheading* . “Subheading” means the first six digits in the tariff classification number under the Harmonized System;

(r)*Textile or apparel good* . “Textile or apparel good” means a good listed in the Annex to the Agreement on Textiles and Clothing (commonly referred to as ATC), which is part of the WTO Agreement;

(s)*Territory* . “Territory” means:

(1)With respect to Morocco, the land, maritime and air space under its sovereignty, and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law; and

(2)With respect to the United States,

(i)The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico,

(ii)The foreign trade zones located in the United States and Puerto Rico, and

(iii)Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources;

(t)*WTO Agreement* . “WTO Agreement” means the *Marrakesh Agreement Establishing the World Trade Organization* of April 15, 1994. Import Requirements § 10.763 Filing of claim for preferential tariff treatment upon importation. An importer may make a claim for MFTA preferential tariff treatment for an originating good by including on the entry summary, or equivalent documentation, the symbol “MA” as a prefix to the subheading of the HTSUS under which each qualifying good is classified, or by the method specified for equivalent reporting via an authorized electronic data interchange system. § 10.764 Declaration.

(a)*Contents* . An importer who claims preferential tariff treatment for a good under the MFTA must submit to CBP, at the request of the port director, a declaration setting forth all pertinent information concerning the growth, production, or manufacture of the good. A declaration submitted to CBP under this paragraph:

(1)Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;

(2)Must include the following information:

(i)The legal name, address, telephone, and e-mail address (if any) of the importer of record of the good;

(ii)The legal name, address, telephone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the declaration (if different from the information required by paragraph (a)(2)(i) of this section);

(iii)The legal name, address, telephone, and e-mail address (if any) of the exporter of the good (if different from the producer);

(iv)The legal name, address, telephone, and e-mail address (if any) of the producer of the good (if known);

(v)A description of the good, which must be sufficiently detailed to relate it to the invoice and HS nomenclature, including quantity, numbers, invoice numbers, and bills of lading;

(vi)A description of the operations performed in the growth, production, or manufacture of the good in the territory of one or both of the Parties and, where applicable, identification of the direct costs of processing operations;

(vii)A description of any materials used in the growth, production, or manufacture of the good that are wholly the growth, product, or manufacture of one or both of the Parties, and a statement as to the value of such materials;

(viii)A description of the operations performed on, and a statement as to the origin and value of, any materials used in the article that are claimed to have been sufficiently processed in the territory of one or both of the Parties so as to be materials produced in one or both of the Parties, or are claimed to have undergone an applicable change in tariff classification specified in General Note 27(h), HTSUS; and

(ix)A description of the origin and value of any foreign materials used in the good that have not been substantially transformed in the territory of one or both of the Parties, or have not undergone an applicable change in tariff classification specified in General Note 27(h), HTSUS;

(3)Must include a statement, in substantially the following form: “I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in connection with this document; I agree to maintain and present upon request, documentation necessary to support these representations; The goods comply with all the requirements for preferential tariff treatment specified for those goods in the United States-Morocco Free Trade Agreement; and This document consists of __pages, including all attachments.”

(b)*Responsible official or agent* . The declaration must be signed and dated by a responsible official of the importer or by the importer's authorized agent having knowledge of the relevant facts.

(c)*Language* . The declaration must be completed in the English language.

(d)*Applicability of declaration* . The declaration may be applicable to:

(1)A single importation of a good into the United States, including a single shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or

(2)Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the declaration. For purposes of this paragraph, “identical goods” means goods that are the same in all respects relevant to the production that qualifies the goods for preferential tariff treatment. § 10.765 Importer obligations.

(a)*General* . An importer who makes a claim for preferential tariff treatment under § 10.763 of this subpart:

(1)Will be deemed to have certified that the good is eligible for preferential tariff treatment under the MFTA;

(2)Is responsible for the truthfulness of the information and data contained in the declaration provided for in § 10.764 of this subpart; and

(3)Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the information contained in those documents. CBP will allow for the direct submission by the exporter or producer of business confidential or other sensitive information, including cost and sourcing information.

(b)I *nformation provided by exporter or producer* . The fact that the importer has made a claim for preferential tariff treatment or prepared a declaration based on information provided by an exporter or producer will not relieve the importer of the responsibility referred to in paragraph

(a)of this section. § 10.766 Declaration not required.

(a)*General* . Except as otherwise provided in paragraph

(b)of this section, an importer will not be required to submit a declaration under § 10.764 of this subpart for:

(1)A non-commercial importation of a good; or

(2)A commercial importation for which the value of the originating goods does not exceed U.S. $2,500.

(b)*Exception* . If the port director determines that an importation described in paragraph

(a)of this section may reasonably be considered to have been carried out or planned for the purpose of evading compliance with the rules and procedures governing claims for preference under the MFTA, the port director will notify the importer that for that importation the importer must submit to CBP a declaration. The importer must submit such a declaration within 30 days from the date of the notice. Failure to timely submit the declaration will result in denial of the claim for preferential tariff treatment. § 10.767 Maintenance of records.

(a)*General* . An importer claiming preferential tariff treatment for a good under § 10.763 of this subpart must maintain, for five years after the date of the claim for preferential tariff treatment, all records and documents necessary for the preparation of the declaration.

(b)*Applicability of other recordkeeping requirements* . The records and documents referred to in paragraph

(a)of this section are in addition to any other records required to be made, kept, and made available to CBP under Part 163 of this chapter.

(c)*Method of maintenance* . The records and documents referred to in paragraph

(a)of this section must be maintained by importers as provided in § 163.5 of this chapter. § 10.768 Effect of noncompliance; failure to provide documentation regarding transshipment.

(a)*General* . If the importer fails to comply with any requirement under this subpart, including submission of a complete declaration under § 10.764 of this subpart, when requested, the port director may deny preferential tariff treatment to the imported good.

(b)*Failure to provide documentation regarding transshipment* . Where the requirements for preferential tariff treatment set forth elsewhere in this subpart are met, the port director nevertheless may deny preferential treatment to a good if the good is shipped through or transshipped in the territory of a country other than a Party, and the importer of the good does not provide, at the request of the port director, evidence demonstrating to the satisfaction of the port director that the good was imported directly from the territory of a Party into the territory of the other Party ( *see* § 10.777 of this subpart). Rules of Origin § 10.769 Definitions. For purposes of §§ 10.769 through 10.777:

(a)*Exporter* . “Exporter” means a person who exports goods from the territory of a Party;

(b)*Generally Accepted Accounting Principles* . “Generally Accepted Accounting Principles” means the recognized consensus or substantial authoritative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements. These standards may encompass broad guidelines of general application as well as detailed standards, practices, and procedures;

(c)*Good* . “Good” means any merchandise, product, article, or material;

(d)*Goods wholly the growth, product, or manufacture of one or both of the Parties* . “Goods wholly the growth, product, or manufacture of one or both of the Parties” means:

(1)Mineral goods extracted in the territory of one or both of the Parties;

(2)Vegetable goods, as such goods are defined in the HTSUS, harvested in the territory of one or both of the Parties;

(3)Live animals born and raised in the territory of one or both of the Parties;

(4)Goods obtained from live animals raised in the territory of one or both of the Parties;

(5)Goods obtained from hunting, trapping, or fishing in the territory of one or both of the parties;

(6)Goods (fish, shellfish, and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag;

(7)Goods produced from goods referred to in paragraph (d)(5) on board factory ships registered or recorded with that Party and flying its flag;

(8)Goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed;

(9)Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party;

(10)Waste and scrap derived from:

(i)Production or manufacture in the territory of one or both of the Parties, or

(ii)Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials;

(11)Recovered goods derived in the territory of a Party from used goods, and utilized in the territory of that Party in the production of remanufactured goods; and

(12)Goods produced in the territory of one or both of the Parties exclusively from goods referred to in paragraphs (d)(1) through (d)(10) of this section, or from their derivatives, at any stage of production;

(e)*Importer.* Importer means a person who imports goods into the territory of a Party;

(f)*Indirect material.* “Indirect material” means a good used in the growth, production, manufacture, testing, or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the growth, production, or manufacture of a good, including:

(1)Fuel and energy;

(2)Tools, dies, and molds;

(3)Spare parts and materials used in the maintenance of equipment and buildings;

(4)Lubricants, greases, compounding materials, and other materials used in the growth, production, or manufacture of a good or used to operate equipment and buildings;

(5)Gloves, glasses, footwear, clothing, safety equipment, and supplies;

(6)Equipment, devices, and supplies used for testing or inspecting the good;

(7)Catalysts and solvents; and

(8)Any other goods that are not incorporated into the good but the use of which in the growth, production, or manufacture of the good can reasonably be demonstrated to be a part of that growth, production, or manufacture;

(g)*Material.* “Material” means a good, including a part or ingredient, that is used in the growth, production, or manufacture of another good that is a new or different article of commerce that has been grown, produced, or manufactured in one or both of the Parties;

(h)*Material produced in the territory of one or both of the Parties.* “Material produced in the territory of one or both of the Parties” means a good that is either wholly the growth, product, or manufacture of one or both of the Parties, or a new or different article of commerce that has been grown, produced, or manufactured in the territory of one or both of the Parties;

(i)*New or different article of commerce.* The term “new or different article of commerce” means, except as provided in § 10.770(c) of this subpart, a good that:

(1)Has been substantially transformed from a good or material that is not wholly the growth, product, of manufacture of one or both of the Parties; and

(2)Has a new name, character, or use distinct from the good or material from which it was transformed;

(j)*Non-originating material.* “Non-originating material” means a material that does not qualify as originating under this subpart or General Note 27, HTSUS;

(k)*Packing materials and containers for shipment.* “Packing materials and containers for shipment” means the goods used to protect a good during its transportation to the United States, and does not include the packaging materials and containers in which a good is packaged for retail sale;

(l)*Recovered goods.* “Recovered goods” means materials in the form of individual parts that result from:

(1)The complete disassembly of used goods into individual parts; and

(2)The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition;

(m)*Remanufactured good.* “Remanufactured good” means an industrial good that is assembled in the territory of a Party and that:

(1)Is entirely or partially comprised of recovered goods;

(2)Has a similar life expectancy to, and meets the similar performance standards as, a like good that is new; and

(3)Enjoys the factory warranty similar to that of a like good that is new;

(n)*Simple combining or packaging operations.* “Simple combining or packaging operations” means operations such as adding batteries to electronic devices, fitting together a small number of components by bolting, gluing, or soldering, or packing or repacking components together;

(o)*Substantially transformed.* “Substantially transformed” means, with respect to a good or material, changed as the result of a manufacturing or processing operation so that the good loses its separate identity in the manufacturing or processing operation and:

(1)The good or material is converted from a good that has multiple uses into a good or material that has limited uses;

(2)The physical properties of the good or material are changed to a significant extent; or

(3)The operation undergone by the good or material is complex by reason of the number of processes and materials involved and the time and level of skill required to perform those processes. § 10.770 Originating goods.

(a)*General.* A good will be considered an originating good under the MFTA when imported directly from the territory of a Party into the territory of the other Party only if:

(1)The good is wholly the growth, product, or manufacture of one or both of the Parties;

(2)The good is a new or different article of commerce that has been grown, produced, or manufactured in the territory of one or both of the Parties, is provided for in a heading or subheading of the HTSUS that is not covered by the product-specific rules set forth in General Note 27(h), HTSUS, and meets the value-content requirement specified in paragraph

(b)of this section; or

(3)The good is provided for in a heading or subheading of the HTSUS covered by the product-specific rules set forth in General Note 27(h), HTSUS, and: (i)(A) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in General Note 27(h), HTSUS, as a result of production occurring entirely in the territory of one or both of the Parties; or

(B)The good otherwise satisfies the requirements specified in General Note 27(h), HTSUS; and

(ii)The good meets any other requirements specified in General Note 27, HTSUS.

(b)*Value-content requirement.* A good described in paragraph (a)(2) of this section will be considered an originating good under the MFTA only if the sum of the value of materials produced in one or both of the Parties, plus the direct costs of processing operations ( *see* § 10.774 of this subpart) performed in one or both of the Parties, is not less than 35 percent of the appraised value of the good at the time the good is entered into the territory of the United States.

(c)*Combining, packaging, and diluting operations.* For purposes of this subpart, a good will not be considered a new or different article of commerce by virtue of having undergone simple combining or packaging operations, or mere dilution with water or another substance that does not materially alter the characteristics of the good. The principles and examples set forth in § 10.195(a)(2) of this part will apply equally for purposes of this paragraph. § 10.771 Textile or apparel goods.

(a)*De minimis.* Except as provided in paragraph (a)(1) of this section, a textile or apparel good that is not an originating good under the MFTA because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 27(h), HTSUS, will be considered to be an originating good if the total weight of all such fibers is not more than seven percent of the total weight of that component.

(1)*Exception.* A textile or apparel good containing elastomeric yarns in the component of the good that determines the tariff classification of the good will be considered to be an originating good only if such yarns are wholly formed in the territory of a Party.

(2)*Yarn, fabric, or group of fibers.* For purposes of paragraph

(a)of this section, in the case of a textile or apparel good that is a yarn, fabric, or group of fibers, the term “component of the good that determines the tariff classification of the good” means all of the fibers in the yarn, fabric, or group of fibers.

(b)*Textile or apparel goods put up in sets.* Notwithstanding the specific rules specified in General Note 27(h), HTSUS, textile or apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods under the MFTA unless each of the goods in the set is an originating good or the total value of the non-originating goods in the set does not exceed ten percent of the appraised value of the set. § 10.772 Accumulation.

(a)An originating good or material produced in the territory of one or both of the Parties that is incorporated into a good in the territory of the other Party will be considered to originate in the territory of the other Party.

(b)A good that is grown, produced, or manufactured in the territory of one or both of the Parties by one or more producers is an originating good if the good satisfies the requirements of § 10.770 of this subpart and all other applicable requirements of General Note 27, HTSUS. § 10.773 Value of materials.

(a)*General.* For purposes of § 10.770(b) of this subpart and, except as provided in paragraph

(b)of this section, the value of a material produced in the territory of one or both of the Parties includes the following:

(1)The price actually paid or payable for the material by the producer of the good;

(2)The freight, insurance, packing and all other costs incurred in transporting the material to the producer's plant, if such costs are not included in the price referred to in paragraph (a)(1) of this section;

(3)The cost of waste or spoilage resulting from the use of the material in the growth, production, or manufacture of the good, less the value of recoverable scrap; and

(4)Taxes or customs duties imposed on the material by one or both of the Parties, if the taxes or customs duties are not remitted upon exportation from the territory of a Party.

(b)*Exception.* If the relationship between the producer of a good and the seller of a material influenced the price actually paid or payable for the material, or if there is no price actually paid or payable by the producer for the material, the value of the material produced in the territory of one or both of the Parties, includes the following:

(1)All expenses incurred in the growth, production, or manufacture of the material, including general expenses;

(2)A reasonable amount for profit; and

(3)The freight, insurance, packing, and all other costs incurred in transporting the material to the producer's plant. § 10.774 Direct costs of processing operations.

(a)*Items included.* For purposes of § 10.770(b) of this subpart, the words “direct costs of processing operations”, with respect to a good, mean those costs either directly incurred in, or that can be reasonably allocated to, the growth, production, or manufacture of the good in the territory of one or both of the Parties. Such costs include, to the extent they are includable in the appraised value of the good when imported into a Party, the following:

(1)All actual labor costs involved in the growth, production, or manufacture of the specific good, including fringe benefits, on-the-job training, and the costs of engineering, supervisory, quality control, and similar personnel;

(2)Tools, dies, molds, and other indirect materials, and depreciation on machinery and equipment that are allocable to the specific good;

(3)Research, development, design, engineering, and blueprint costs, to the extent that they are allocable to the specific good;

(4)Costs of inspecting and testing the specific good; and

(5)Costs of packaging the specific good for export to the territory of the other Party.

(b)*Items not included.* For purposes of § 10.770(b) of this subpart, the words “direct costs of processing operations” do not include items that are not directly attributable to the good or are not costs of growth, production, or manufacture of the good. These include, but are not limited to:

(1)Profit; and

(2)General expenses of doing business that are either not allocable to the good or are not related to the growth, production, or manufacture of the good, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, commissions, or expenses. § 10.775 Packaging and packing materials and containers for retail sale and for shipment. Packaging materials and containers in which a good is packaged for retail sale and packing materials and containers for shipment are to be disregarded in determining whether a good qualifies as an originating good under § 10.770 of this subpart and General Note 27, HTSUS, except to the extent that the value of such packaging and packing materials and containers may be included in meeting the value-content requirement specified in § 10.770(b) of this subpart. § 10.776 Indirect materials. Indirect materials are to be disregarded in determining whether a good qualifies as an originating good under § 10.770 of this subpart and General Note 27, HTSUS, except that the cost of such indirect materials may be included in meeting the value-content requirement specified in § 10.770(b) of this subpart. § 10.777 Imported directly.

(a)*General* . To qualify as an originating good under the MFTA, a good must be imported directly from the territory of a Party into the territory of the other Party. For purposes of this subpart, the words “imported directly” mean:

(1)Direct shipment from the territory of a Party into the territory of the other Party without passing through the territory of a non-Party; or

(2)If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be “imported directly” only if the good did not undergo production, manufacturing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed outside the territories of the Parties include inspection, removal of dust that accumulates during shipment, ventilation, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the territory of a Party.

(b)*Documentary evidence* . An importer making a claim for preferential tariff treatment under the MFTA for an originating good may be required to demonstrate, to CBP's satisfaction, that the good was “imported directly” from the territory of a Party into the territory of the other Party, as that term is defined in paragraph

(a)of this section. An importer may demonstrate compliance with this section by submitting documentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, commercial invoices, receiving and inventory records, and customs entry and exit documents. Tariff Preference Level § 10.778 Filing of claim for tariff preference level. A fabric or apparel good described in § 10.779 of this subpart that does not qualify as an originating good under § 10.770 of this subpart may nevertheless be entitled to preferential tariff treatment under the MFTA under an applicable tariff preference level (TPL). To make a TPL claim, the importer must include on the entry summary, or equivalent documentation, the applicable subheading in Chapter 99 of the HTSUS (9912.99.20) immediately above the applicable subheading in Chapters 51 through 62 of the HTSUS under which each non-originating fabric or apparel good is classified. § 10.779 Goods eligible for tariff preference claims. The following goods are eligible for a TPL claim filed under § 10.778 of this subpart:

(a)*Fabric goods* . Fabric goods provided for in Chapters 51, 52, 54, 55, 58, and 60 of the HTSUS that are wholly formed in Morocco, regardless of the origin of the fiber or yarn used to produce the goods, provided that they meet the applicable conditions for preferential tariff treatment under the MFTA, other than the condition that they are originating; and

(b)*Apparel goods* . Apparel goods provided for in Chapters 61 and 62 of the HTSUS that are cut or knit to shape, or both, and sewn or otherwise assembled in Morocco, regardless of the origin of the fabric or yarn used to produce the goods, provided that they meet the applicable conditions for preferential tariff treatment under the MFTA, other than the condition that they are originating goods. § 10.780 Transshipment of non-originating fabric or apparel goods.

(a)*General* . To qualify for preferential tariff treatment under an applicable TPL, a good must be imported directly from the territory of a Party into the territory of the other Party. For purposes of this subpart, the words “imported directly” mean:

(1)Direct shipment from the territory of a Party into the territory of the other Party without passing through the territory of a non-Party; or

(2)If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be “imported directly” only if the good did not undergo production, manufacturing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good to the territory of a Party. Operations that may be performed outside the territories of the Parties include inspection, removal of dust that accumulates during shipment, ventilation, spreading out or drying, chilling, replacing salt, sulfur dioxide, or other aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the territory of a Party.

(b)*Documentary evidence* . An importer making a claim for preferential tariff treatment under an applicable TPL may be required to demonstrate, to CBP's satisfaction, that the good was “imported directly” from the territory of a Party into the territory of the other Party, as that term is defined in paragraph

(a)*Effect of noncompliance* . If an importer of a good for which a TPL claim is made fails to comply with any applicable requirement under this subpart, the port director may deny preferential tariff treatment to the imported good.

(b)*Failure to provide documentation regarding transshipment.* Where the requirements for preferential tariff treatment set forth elsewhere in this subpart are met, the port director nevertheless may deny preferential tariff treatment to a good for which a TPL claim is made if the good is shipped through or transshipped in a country other than a Party, and the importer of the good does not provide, at the request of the port director, evidence demonstrating to the satisfaction of the port director that the requirements set forth in § 10.780 of this subpart were met. Origin Verifications and Determinations § 10.784 Verification and justification of claim for preferential treatment.

(a)*Verification* . A claim for preferential treatment made under § 10.763 of this subpart, including any declaration or other information submitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director is provided with insufficient information to verify or substantiate the claim, the port director may deny the claim for preferential treatment.

(b)*Applicable accounting principles.* When conducting a verification of origin to which Generally Accepted Accounting Principles may be relevant, CBP will apply and accept the Generally Accepted Accounting Principles applicable in the country of production. § 10.785 Special rule for verifications in Morocco of U.S. imports of textile and apparel products.

(a)*Procedures to determine whether a claim of origin is accurate* . For the purpose of determining that a claim of origin for a textile or apparel good is accurate, CBP may request that the government of Morocco conduct a verification, regardless of whether a claim is made for preferential tariff treatment. While a verification under this paragraph is being conducted, CBP may take appropriate action, as directed by The Committee for the Implementation of Textile Agreements (CITA), which may include suspending the application of preferential treatment to the textile or apparel good for which a claim of origin has been made. If CBP is unable to make the determination described in this paragraph within 12 months after a request for a verification, or makes a negative determination, CBP may take appropriate action with respect to the textile and apparel good subject to the verification, and with respect to similar goods exported or produced by the entity that exported or produced the good, if directed by CITA.

(b)*Procedures to determine compliance with applicable customs laws and regulations of the United States* . For purposes of enabling CBP to determine that an exporter or producer is complying with applicable customs laws, regulations, and procedures in cases in which CBP has a reasonable suspicion that a Moroccan exporter or producer is engaging in unlawful activity relating to trade in textile and apparel goods, CBP may request that the government of Morocco conduct a verification, regardless of whether a claim is made for preferential tariff treatment. A “reasonable suspicion” for the purpose of this paragraph will be based on relevant factual information, including information of the type set forth in Article 6.5.5 of the MFTA, that indicates circumvention of applicable laws, regulations or procedures regarding trade in textile and apparel goods. While a verification under this paragraph is being conducted, CBP may take appropriate action, as directed by CITA, which may include suspending the application of preferential tariff treatment to the textile and apparel goods exported or produced by the Moroccan entity where the reasonable suspicion of unlawful activity relates to those goods. If CBP is unable to make the determination described in this paragraph within 12 months after a request for a verification, or makes a negative determination, CBP may take appropriate action with respect to any textile or apparel goods exported or produced by the entity subject to the verification, if directed by CITA.

(c)*Assistance by U.S. officials to Moroccan authorities* . U.S. officials may undertake or assist in a verification under this section by conducting visits in Morocco, along with the competent authorities of Morocco, to the premises of an exporter, producer or any other enterprise involved in the movement of textile or apparel goods from Morocco to the United States.

(d)*Treatment of documents and information provided to CBP.* Any production, trade and transit documents and other information necessary to conduct a verification under this section, provided to CBP by the government of Morocco consistent with the laws, regulations, and procedures of Morocco, will be treated in accordance with Article 6.6 of the MFTA.

(e)*Notification to Morocco; continuation of appropriate action.* Prior to commencing appropriate action under paragraph

(a)or

(b)of this section, CBP will notify the government of Morocco. CBP may continue to take appropriate action under paragraph

(a)or

(b)of this section until it receives information sufficient to enable it to make the determination described in those paragraphs. § 10.786 Issuance of negative origin determinations. If, as a result of an origin verification initiated under this subpart, CBP determines that a claim for preferential tariff treatment made under § 10.763 of this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the importer that sets forth the following:

(a)A description of the good that was the subject of the verification together with the identifying numbers and dates of the export and import documents pertaining to the good;

(b)A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and

(c)With specific reference to the rules applicable to originating goods as set forth in General Note 27, HTSUS, and in §§ 10.769 through 10.777 of this subpart, the legal basis for the determination. Penalties § 10.787 Violations relating to the MFTA. All criminal, civil, or administrative penalties which may be imposed on U.S. importers for violations of the customs and related laws and regulations will also apply to U.S. importers for violations of the laws and regulations relating to the MFTA. Goods Returned After Repair or Alteration § 10.788 Goods re-entered after repair or alteration in Morocco.

(a)*General* . This section sets forth the rules that apply for purposes of obtaining duty-free treatment on goods returned after repair or alteration in Morocco as provided for in subheadings 9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been repaired or altered in Morocco, whether or not pursuant to a warranty, are eligible for duty-free treatment, provided that the requirements of this section are met. For purposes of this section, “repairs or alterations” means restoration, addition, renovation, re-dyeing, cleaning, re-sterilizing, or other treatment which does not destroy the essential characteristics of, or create a new or commercially different good from, the good exported from the United States.

(b)*Goods not eligible for treatment.* The duty-free treatment referred to in paragraph

(a)of this section will not apply to goods which, in their condition as exported from the United States to Morocco, are incomplete for their intended use and for which the processing operation performed in Morocco constitutes an operation that is performed as a matter of course in the preparation or manufacture of finished goods.

(c)*Documentation* . The provisions of § 10.8(a), (b), and

(c)of this part, relating to the documentary requirements for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS, will apply in connection with the entry of goods which are returned from Morocco after having been exported for repairs or alterations and which are claimed to be duty free. PART 162—INSPECTION, SEARCH, AND SEIZURE 4. The authority citation for Part 162 continues to read in part as follows: Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1592, 1593a, 1624. 5. Section 162.0 is amended by revising the last sentence to read as follows: § 162.0 Scope. * * * Additional provisions concerning records maintenance and examination applicable to U.S. importers, exporters and producers under the U.S.-Chile Free Trade Agreement, the U.S.-Singapore Free Trade Agreement, and the U.S.-Morocco Free Trade Agreement are contained in Part 10, Subparts H, I, and M of this chapter, respectively. PART 163—RECORDKEEPING 6. 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. 7. Section 163.1(a)(2) is amended by re-designating paragraph (a)(2)(ix) as (a)(2)(x) and adding a new paragraph

(ix)to read as follows: § 163.1 Definitions. * * *

(a)Records— * * *

(2)Activities * * *

(ix)The maintenance of any documentation that the importer may have in support of a claim for preferential tariff treatment under the United States-Morocco Free Trade Agreement (MFTA), including a MFTA importer's declaration. 8. The Appendix to Part 163 is amended by adding a new listing under section IV in numerical order to read as follows: Appendix to Part 163—Interim (a)(1)(A) List IV. * * * § 10.765 MFTA records that the importer may have in support of a MFTA claim for preferential tariff treatment, including an importer's declaration. PART 178—APPROVAL OF INFORMATION COLLECTION REQUIREMENTS 9. The authority citation for Part 178 continues to read as follows: Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44 U.S.C. 3501 *et seq.* 10. Section 178.2 is amended by adding new listings “§§ 10.763 and 10.764” to the table in numerical order to read as follows: § 178.2 Listing of OMB control numbers. 19 CFR Section Description OMB control No. * * * * * * * §§ 10.763 and 10.764 Claim for preferential tariff treatment under the U.S.-Morocco Free Trade Agreement 1651-0117 * * * * * * * Deborah J. Spero, Acting Commissioner, U.S. Customs and Border Protection. Timothy E. Skud, Deputy Assistant Secretary of the Treasury. [FR Doc. 07-3153 Filed 6-28-07; 8:45 am]

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