[Federal Register Volume 62, Number 210 (Thursday, October 30, 1997)]
[Notices]
[Pages 58769-58770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28779]
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DEPARTMENT OF THE TREASURY
Customs Service
Public Meeting on Reconciliation
AGENCY: Customs Service, Department of the Treasury.
ACTION: Notice of meeting.
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SUMMARY: This notice announces that a public meeting regarding
reconciliation will be held in Hearing Room A of the Interstate
Commerce Commission Building in Washington, DC., commencing at 9:30
a.m. on Wednesday, November 12, 1997. The purpose of this meeting is to
(1) discuss transfer pricing issues and (2) analyze a proposal for a
menu-approach to reconciliation. Customs has received various comments
from members of the importing community that a flexible approach should
be developed for reconciliation, under which companies can choose an
option which will best suit their business needs.
DATES: The meeting will be held November 12, 1997, from 9:30 a.m. to 4
p.m.
ADDRESSES: The meeting will be held at the Interstate Commerce
Commission Building, Hearing Room A, 12th Street & Constitution Avenue,
NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: To attend the meeting, please contact
the Office of Regulations and Rulings at (202) 927-0760.
For additional information on the meeting, please contact either
John Durant, Office of Regulations and Rulings, at (202)927-1964 or
Shari McCann, Office of Field Operations at (202)927-1106.
SUPPLEMENTARY INFORMATION: On December 8, 1993, the President signed
the North American Free Trade Agreement Implementation Act (Pub. L.
103-182). Title VI of the Act contained provisions relating to Customs
modernization and is popularly known as the Customs Modernization Act
or Mod Act. In Title VI, section 637 amends section 484 of the Tariff
Act of 1930 (19 U.S.C. 1484) to create a new subsection (b) entitled
``Reconciliation.''
Reconciliation allows a party to provide information, other than
admissibility information, which is undeterminable at time of entry
summary, to Customs at a later date. A reconciliation is treated as an
entry for purposes of liquidation, reliquidation and protest.
Customs has published several notices in the Federal Register
regarding prototype tests of reconciliation. On May 10, 1996, Customs
published a notice in the Federal Register (61 FR 21534) regarding a
reconciliation test covering entries to which antidumping and
countervailing duties applied. This test has been completed.
Customs also published two notices regarding plans to test
reconciliation for related party importers who had reason to believe
upward adjustments may have been made to the price of imported
merchandise for tax purposes pursuant
[[Page 58770]]
to 26 U.S.C. 482 (60 FR 64470 and 60 FR 46141).
The Account-based Declaration Prototype (62 FR 14731, published 3/
27/97), which includes a reconciliation component, is currently being
designed under the Automated Commercial Environment.
Customs is also currently designing the ACS Reconciliation
Prototype and published a notice in the Federal Register (62 FR 51181)
on September 30, 1997, announcing plans to conduct a test of this
prototype. The testing period of this prototype is scheduled to be
implemented in October, 1998.
The importing community has raised concerns to Customs that
reconciliation, as is currently envisioned, is overly burdensome in the
data required. Customs and the trade are working together in an attempt
to provide a series of options for reconciliation, which will provide
the controls and information needed by the government and a practical
mechanism which accommodates various business situations.
This document announces that a public meeting will be held to
discuss issues related to the development of reconciliaton by Customs.
At this meeting, Customs and the trade participants will address
reconciliation under the current legal structure, and analyze a menu-
approach to reconciliation. The goal will be to secure a definition of
the various business problems for which reconciliation does not fit,
analyze a series of options under which to design reconciliation, and
finalize a joint Customs/Industry proposal. Customs will discuss with
the trade participants whether any statutory, regulatory or policy
changes are required before reconciliation can be best implemented.
The meeting will be held in Hearing Room A of the Interstate
Commerce Commission Building in Washington, DC., commencing at 9:30
a.m. on Wednesday, November 12, 1997. Because seating is limited,
reservations are required.
The morning session of this meeting will be devoted to a discussion
of transfer pricing, including the issues companies face in working
under both the Customs and IRS statutes and transfer pricing situations
in need of a reconciliation reporting mechanism. The afternoon session
will be devoted to government/industry analysis of a menu-approach to
reconciliation. The menu-approach is intended to provide a series of
options which address various business needs, including the entire
range of value issues (e.g., assists, indirect payments, transfer
pricing, etc.)
Dated: October 27, 1997.
John Durant.
Director, Mod Act Task Force.
[FR Doc. 97-28779 Filed 10-29-97; 8:45 am]
BILLING CODE 4820-02-P
