[Federal Register Volume 59, Number 56 (Wednesday, March 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6752]
[[Page Unknown]]
[Federal Register: March 23, 1994]
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DEPARTMENT OF THE TREASURY
United States Customs Service
19 CFR Part 24
RIN 1515-AB38
Fees Assessed for Defaulted Payments
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Proposed rule.
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SUMMARY: This document proposes to amend the Customs Regulations to
authorize the assessment of a $30 fee for any defaulted payment
resulting from a check or other monetary instrument returned unpaid by
a financial institution, including Automated Clearinghouse defaulted
payments, which were presented for duties, taxes and other charges
incurred in connection with any commercial or noncommercial importation
or other Customs transaction whether or not backed by a Customs bond.
At present, Customs authority to assess the $30 fee is limited to
returned checks presented with respect to noncommercial importations
for which no formal entry was required, and other Customs transactions
not backed by a Customs bond. The purpose of the proposed change is to
enable Customs to recoup the administrative costs incurred in
processing all returned checks and other defaulted payments.
DATES: Comments must be received on or before May 23, 1994.
ADDRESSES: Comments (preferably in triplicate) must be submitted to
U.S. Customs Service, ATTN: Regulations Branch, Franklin Court, 1301
Constitution Avenue, NW., Washington, DC 20229, and may be inspected at
the Regulations Branch, 1099 14th Street, NW., suite 4000, Washington,
DC.
FOR FURTHER INFORMATION CONTACT: David Baker, Office of the Comptroller
(202-927-0620).
SUPPLEMENTARY INFORMATION:
Background
By a document published in the Federal Register as T.D. 92-73 on
August 10, 1992 (57 FR 35458), Customs amended its regulations to
establish a $30 charge for each check that is returned by a financial
institution to Customs unpaid, if that check was presented either for
payment of duties or other charges incurred on noncommercial
importations for which a formal entry was not required or for payment
in connection with any other transaction not backed by a Customs bond
(Sec. 24.1(e), Customs Regulations; 19 CFR 24.1(e)).
However, Customs has not been entirely successful at charging the
$30 fee in part because Customs cannot differentiate in a cost
effective manner between returned checks made by individuals on
noncommercial importations, and those made by commercial entities,
which are usually backed by a Customs bond. Moreover, because Customs
is only authorized at present to charge the fee in connection with
noncommercial importations or other transactions not backed by a
Customs bond, Customs is unable to recoup the administrative costs
incurred for processing all returned checks and other defaulted
payments. In particular, Sec. 24.1(e) does not authorize charging the
fee for processing defaulted payments made through the Automated
Clearinghouse (ACH) (see Sec. 24.25, Customs Regulations; 19 CFR
24.25).
Section 24.1(e) was made applicable only to noncommercial
importations and other transactions not backed by a Customs bond,
primarily because of the availability of liquidated damages in cases
where checks were returned unpaid in connection with commercial
importations and other transactions which were supported by a bond.
However, the assessment of liquidated damages does not recoup the
administrative costs connected with processing defaulted payments. All
liquidated damages collected by Customs are credited to one of the
Treasury Department's miscellaneous receipt accounts which cannot be
used to defray the expense of processing defaulted payments. The $30
fee provided for in Sec. 24.1(e), on the other hand, is credited to a
Customs account whose purpose is specifically to recoup the
administrative costs associated with processing defaulted payments.
Thus, because the $30 fee is money usable by Customs in this regard
while liquidated damages are not, the two assessments may not properly
be considered a duplicate assessment for a single defaulted payment.
Accordingly, against this backdrop, Customs proposes to amend
Sec. 24.1(e) so as to permit the application of the $30 fee for all
returned checks, other monetary instruments, and ACH defaulted
payments, regardless of whether the maker is commercial and/or bonded.
Comments
Before adopting this proposal, consideration will be given to any
written comments (preferably in triplicate) that are timely submitted
to Customs. All such comments received from the public pursuant to this
notice of proposed rulemaking will be available for public inspection
in accordance with the Freedom of Information Act (5 U.S.C. 552),
Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), during regular
business days between the hours of 9:00 a.m. and 4:30 p.m. at the
Regulations Branch, 1099 14th Street, NW., Suite 4000, Washington, DC.
Regulatory Flexibility Act and Executive Order 12866
Pursuant to the provisions of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.), for the reasons stated in the preamble, it is
certified that the proposed amendment would not have a significant
economic impact on a substantial number of small entities. Accordingly,
it is not subject to the regulatory analysis or other requirements of 5
U.S.C. 603 or 604. Nor would the proposed amendment result in a
``significant regulatory action'' under E.O. 12866.
Drafting Information
The principal author of this document was Russell Berger,
Regulations Branch, 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, Imports, Taxes,
Wages.
Proposed Amendment
It is proposed to amend part 24, Customs Regulations (19 CFR Part
24), as set forth below.
PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE
1. The general authority citation for Part 24 and the specific
sectional authority for Sec. 24.1 would continue to read as follows:
Authority: 5 U.S.C. 301, 19 U.S.C. 58a-58c, 66, 1202 (General
Note 8, Harmonized Tariff Schedule of the United States (HTSUS)),
1624, 31 U.S.C. 9701, unless otherwise noted.
Section 24.1 also issued under 19 U.S.C. 197, 198, 1648;
* * * * *
2. It is proposed to amend Sec. 24.1 by revising paragraph (e) to
read as follows:
Sec. 24.1 Collection of Customs duties, taxes, and other charges.
* * * * *
(e) Any person or entity, commercial or noncommercial, who pays by
check, Automated Clearinghouse (ACH), or other monetary instrument, any
duties, taxes, fees, penalties, or other charges or obligations due
Customs shall be assessed a charge of $30 for each defaulted payment
(check or monetary instrument returned unpaid by a financial
institution for any reason, including ACH defaulted payments), except
where it can be shown that the maker of the payment (check, monetary
instrument or ACH payment) was not at fault in connection with the
defaulted payment. This charge shall be in addition to any unpaid
duties, taxes, fees, penalties (including liquidated damages), and
other charges.
Approved: February 28, 1994.
George J. Weise,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-6752 Filed 3-22-94; 8:45 am]
BILLING CODE 4820-02-P
