[Federal Register Volume 64, Number 28 (Thursday, February 11, 1999)]
[Rules and Regulations]
[Page 6801]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3305]
[[Page 6801]]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 146
[T.D. 98-74]
RIN 1515-AB99
Lay Order Period; General Order; Penalties; Correction
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Final rule; correction.
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SUMMARY: This document makes a correction to the document published in
the Federal Register that adopted as a final rule, with some changes,
proposed amendments to the Customs Regulations regarding, among other
things, the obligation of the owner, master, pilot, operator, or agent
of an arriving carrier to provide notice to Customs and to a bonded
warehouse of the presence of merchandise or baggage that has remained
at the place of arrival or unlading beyond the time period provided by
regulation without entry having been completed. The correction involves
a conforming change to the Customs Regulations pertaining to foreign
trade zones.
EFFECTIVE DATE: This correction is effective February 11, 1999.
FOR FURTHER INFORMATION CONTACT: For legal matters: Jeremy Baskin,
Penalties Branch, Office of Regulations and Rulings (202) 927-2344. For
operational matters: Steven T. Soggin, Office of Field Operations,
(202) 927-0765.
SUPPLEMENTARY INFORMATION:
Background
On September 25, 1998, Customs published in the Federal Register
(63 FR 51283) T.D. 98-74 which adopted as a final rule, with some
changes, proposed amendments to the Customs Regulations regarding the
obligation of the owner, master, pilot, operator, or agent of an
arriving carrier to provide notice to Customs and to a bonded warehouse
of the presence of merchandise or baggage that has remained at the
place of arrival or unlading beyond the time period provided by the
regulatory amendments (that is, the fifteenth calendar day after
landing) without entry having been completed. The final regulatory
texts specifically require one of the arriving carrier's obligated
parties, or any party who takes custody from the arriving carrier under
a Customs-authorized permit to transfer or in-bond entry, to provide
notice of the unentered merchandise or baggage to Customs and to a
bonded warehouse no later than 20 calendar days after landing or after
receipt under the permit to transfer or after arrival at the port of
destination. The notice to the bonded warehouse proprietor initiates
his obligation to arrange for transportation and storage of the
unentered merchandise or baggage at the risk and expense of the
consignee. The final regulatory texts also provide for penalties or
liquidated damages against the owner or master of any conveyance, or
agent thereof, for failure to provide the required notice to Customs or
to a bonded warehouse proprietor. The final regulations further provide
for the assessment of liquidated damages against any party who accepts
custody of the merchandise or baggage under a Customs-authorized permit
to transfer or in-bond entry and who fails to notify Customs and a
bonded warehouse of the presence of such unentered merchandise or
baggage and also against the warehouse operator who fails to take
required possession of the merchandise or baggage.
The final regulatory texts as summarized above resulted from
amendments to the underlying statutory authority effected by sections
656 and 658 contained within the Customs Modernization provisions of
the North American Free Trade Agreement Implementation Act (Public Law
103-182, 107 Stat. 2057) and are primarily reflected in a revised
Sec. 4.37 (19 CFR 4.37) and in new Secs. 122.50 and 123.10 (19 CFR
122.50 and 123.10), each of which is entitled ``[g]eneral order.''
(T.D. 98-74 also included a number of conforming changes to the Customs
Regulations in order to reflect a number of other statutory amendments
and repeals effected by the Customs Modernization provisions and in
order to reflect the recent recodification and reenactment of title 49,
United States Code; the correction contained in this document bears no
relationship to those other regulatory amendments.)
Although T.D. 98-74 also included a number of conforming regulatory
changes to ensure consistency with the terms of revised Sec. 4.37 and
new Secs. 122.50 and 123.10 (involving, for example, the removal or
replacement of obsolete references to a ``5-day'' or ``lay order''
period or ``extension'' thereof), Sec. 146.40(c)(3) of the Customs
Regulations (19 CFR 146.40(c)(3)) was overlooked in this regard. This
provision concerns the treatment of general order merchandise in a
foreign trade zone context. The present text, by referring to
merchandise not admitted into a subzone or zone within ``5 working days
after its arrival there'' and to an ``extension of the 5 working day
period,'' is inconsistent with, and thus could give rise to uncertainty
regarding the proper and intended applicability of, Secs. 4.37, 122.50
and 123.10 in a foreign trade zone context. Therefore, T.D. 98-74
should have included an appropriate revision of Sec. 146.40(c)(3) to
clarify the operation of those general order provisions in that
specific context. This document corrects this oversight.
Correction of Publication
In the document published in the Federal Register as T.D. 98-74 on
September 25, 1998 (63 FR 51283), on page 51290, in the third column,
the following is added after the amendment to Sec. 127.28:
Part 146--Foreign Trade Zones
1. The authority citation for Part 146 continues to read as
follows:
Authority: 19 U.S.C. 66, 81a-81u, 1202 (General Note 20,
Harmonized Tariff Schedule of the United States), 1623, 1624.
2. In Sec. 146.40, paragraph (c)(3) is revised to read as follows:
Sec. 146.40 Operator responsibilities for direct delivery.
* * * * *
(c) * * *
(3) General order. Merchandise not admitted into a subzone or zone
site as provided in this section within 15 calendar days after its
arrival there shall be disposed of in accordance with the applicable
procedures in Sec. 4.37 or Sec. 122.50 or Sec. 123.10 of this chapter.
* * * * *
Dated: February 5, 1999.
Stuart P. Seidel,
Assistant Commissioner, Office of Regulations and Rulings.
[FR Doc. 99-3305 Filed 2-10-99; 8:45 am]
BILLING CODE 4820-02-P
