[Federal Register Volume 63, Number 248 (Monday, December 28, 1998)]
[Rules and Regulations]
[Pages 71371-71372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34334]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 24
[T.D. 99-1]
RIN 1515-AC39
Exemption of Israeli Products from Certain Customs User Fees
AGENCY: Customs Service, Department of the Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document amends the Customs Regulations to reflect that
products of Israel are no longer subject to the merchandise processing
fees assessed on imported goods under 19 U.S.C. 58c(a)(9) and (10).
This amendment results from publication of a determination by the
United States Trade Representative under section 112 of the Customs and
Trade Act of 1990 that the Government of Israel has provided reciprocal
concessions. The exemption applies to Israeli products entered, or
withdrawn from warehouse for consumption, on or after September 16,
1998.
EFFECTIVE DATE: December 28, 1998.
FOR FURTHER INFORMATION CONTACT: William G. Rosoff, Office of
Regulations and Rulings (202-927-2077).
SUPPLEMENTARY INFORMATION:
Background
Section 13031 of the Consolidated Omnibus Budget Reconciliation Act
of 1985, as amended (codified at 19 U.S.C. 58c and hereinafter referred
to as the COBRA provision), provides for the collection of various fees
for providing Customs services in connection with the arrival of
vessels, vehicles, railroad cars, aircraft, passengers and dutiable
mail, in connection with the entry or release of merchandise, and in
connection with Customs broker permits. The fees pertaining to the
entry or release of merchandise are set forth in subsections (a)(9) and
(10) of the COBRA provision (19 U.S.C. 58c(a)(9) and (10)) and include
an ad valorem fee for each formal entry or release (subject to specific
maximum and minimum limits), a surcharge for each manual entry or
release, and specific fees for three types of informal entry or
release.
Subsection (b)(11) of the COBRA provision (19 U.S.C. 58c(b)(11))
provides that no fee may be charged under subsection (a)(9) or (10)
with respect to products of Israel if an exemption with respect to the
fee is implemented under section 112 of the Customs and Trade Act of
1990 (the Trade Act, Pub. L. 101-382). Section 112 of the Trade Act
provides that, if the United States Trade Representative determines
that the Government of Israel has provided reciprocal concessions in
exchange for the exemption of products of Israel from the fees imposed
under subsections (a)(9) and (10) of the COBRA provision, such fees may
not be charged with respect to any product of Israel that is entered,
or withdrawn from warehouse for consumption, on or after the 15th day
after the date on which the determination is published in the Federal
Register.
Regulations implementing the COBRA provision regarding merchandise
processing fees are contained in Sec. 24.23 of the Customs Regulations
(19 CFR 24.23). When Sec. 24.23 was amended in 1991 to, among other
things, reflect the changes to the COBRA provision made by the Trade
Act (see T.D. 91-33, published in the Federal Register at 56 FR 15036
on April 15, 1991, and T.D. 91-95, published in the Federal Register at
56 FR 63648 on December 5, 1991), no determination under section 112 of
the Trade Act had been published by the United States Trade
Representative. Accordingly, the revised text of Sec. 24.23 included,
in paragraph (c)(5), a general statement as to the nonapplicability of
the merchandise processing fees under the circumstances described in
section 112 of the Trade Act, but without any indication of a specific
effective date because the conditions set forth in the statute had not
yet been met.
On September 1, 1998, the Office of the United States Trade
Representative published a notice in the Federal Register (63 FR 46496)
stating that the United States Trade Representative has determined that
the Government of Israel has provided reciprocal concessions for
purposes of section 112 of the Trade Act. Accordingly, the notice
stated that pursuant to section 112 of the Trade Act and 19 U.S.C.
58c(b)(11), any product of Israel that is entered, or withdrawn from
warehouse for consumption, on or after the 15th day after the date of
publication of that notice will not be charged the fees imposed under
19 U.S.C. 58c(a)(9) and (10).
Paragraph (c)(5) was drafted and included in Sec. 24.23 in general,
self-executing terms in order to allow for the future publication of a
determination under section 112 of the Trade Act, and for operational
implementation thereof by Customs, without having to amend the
regulatory text. Nevertheless, for purposes of clarity and in order to
provide the most complete information to the public, Customs believes
that it would be preferable to amend the regulatory text to reflect the
specific date on which the exemption took effect, that is, September
16, 1998.
Inapplicability of Public Notice and Comment and Delayed Effective
Date Requirements
Pursuant to the provisions of 5 U.S.C. 553(b)(B), Customs has
determined that prior public notice and comment procedures on this
regulation are unnecessary and contrary to the public interest. The
regulatory change conforms the Customs Regulations to the terms of a
statutory provision that is already in effect. In addition, the
regulatory change benefits the public by providing specific information
regarding the right to an exemption from the payment of certain import
fees. For the same reasons, pursuant to the provisions of 5 U.S.C.
553(d)(1) and (3), Customs finds that there is good cause
[[Page 71372]]
for dispensing with a delayed effective date.
Executive Order 12866
This document does not meet the criteria for a ``significant
regulatory action'' as specified in E.O. 12866.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required for this rule,
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
do not apply.
Drafting Information
The principal author of this document was Francis W. Foote, Office
of Regulations and Rulings, U.S. Customs Service. However, personnel
from other offices participated in its development.
List of Subjects in 19 CFR Part 24
Accounting, Claims, Customs duties and inspection, Taxes, User
fees, Wages.
Amendment to the Regulations
For the reasons stated in the preamble, part 24 of the Customs
Regulations (19 CFR Part 24) is amended as set forth below.
PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE
1. The authority citation for part 24 continues to read in part as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General
Note 20, Harmonized Tariff Schedule of the United States), 1450,
1624; 31 U.S.C. 9701.
* * * * *
Sec. 24.33 [Amended]
2. In Sec. 24.23, paragraph (c)(5) is amended by removing the words
``the effective date of a determination made under section 112 of the
Customs and Trade Act of 1990'' and adding, in their place, the words
``September 16, 1998 (the effective date of a determination published
in the Federal Register on September 1, 1998, under section 112 of the
Customs and Trade Act of 1990)''.
Approved: November 18, 1998.
Raymond W. Kelly,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 98-34334 Filed 12-24-98; 8:45 am]
BILLING CODE 4820-02-P
