[Federal Register Volume 59, Number 61 (Wednesday, March 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7516]
[[Page Unknown]]
[Federal Register: March 30, 1994]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 171
[T.D. 94-29]
Penalty Guidelines Applicable to Transshipped Textiles and
Textile Products
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Interim rule; solicitation of comments.
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SUMMARY: This document amends the revised penalty guidelines pertaining
to section 592 of the Tariff Act of 1930, as amended, to add, as an
example of an aggravating factor in arriving at a final administrative
penalty decision, violations involving the illegal importation and
entry of transshipped textiles and textile products. This amendment
will enhance the U.S. textile import program and other programs or laws
administered or enforced by Customs which involve a determination of
the country of origin of imported merchandise.
DATES: Interim rule effective on, and applicable to all textiles and
textile products entered, or withdrawn from warehouse for consumption,
on or after, April 1, 1994. Comments must be received on or before May
31, 1994.
ADDRESSES: Written comments (preferably in triplicate) may be addressed
to the Regulations Branch, U.S. Customs Service, Franklin Court, 1301
Constitution Avenue, NW., Washington, DC 20229. Comments submitted may
be inspected at the Regulations Branch, Office of Regulations and
Rulings, Franklin Court, 1099 14th Street, NW., suite 4000, Washington,
DC.
FOR FURTHER INFORMATION CONTACT: Robert Pisani, Penalties Branch,
Office of Regulations and Rulings (202-482-6950).
SUPPLEMENTARY INFORMATION:
Background
Customs is confronted with a continuing problem involving textiles
and textile products which, after exportation from their country of
origin, are transshipped through a second country, thereby facilitating
a false or otherwise unlawful statement, act, or omission regarding the
country of origin of the merchandise when ultimately imported and
entered in the United States. Such statements, acts or omissions may
impinge on a number of programs or laws administered or enforced by
Customs, including country of origin marking requirements, textile
quota limitations and visa requirements under the U.S. textile import
program, duty assessment and collection, and collection of trade
statistics. The consequences of such unlawful statements, acts or
omissions may include interference with the consumer's right to make an
informed decision regarding a prospective purchase, undermining of
bilateral and multilateral textile agreements to which the United
States is a party and with resulting injury to domestic producers of
textiles and textile products, loss of revenue, and inability to
maintain proper trade statistics to support overall U.S. trade policy
and analysis.
Under section 592 of the Tariff Act of 1930, as amended (19 U.S.C.
1592), a penalty may be assessed against any party who has committed
fraud, gross negligence or negligence in connection with the unlawful
entry of any merchandise in the United States, including textiles and
textile products that have been transshipped in the circumstances
described above. Provisions relating to filing of petitions, and action
upon petitions, for relief from fines, penalties and forfeitures
incurred under laws administered by Customs, including penalties under
section 592, are set forth in part 171 of the Customs Regulations (19
CFR part 171). Appendix B to part 171 sets forth Revised Penalty
Guidelines under section 592. Although appendix B is not intended to
have regulatory effect, it represents the official Customs position
regarding the standards that are generally applicable to the
administrative review of petitions for remission or mitigation of
penalties incurred under section 592. Appendix B includes, in section
(G), certain factors that may be determined by Customs to be
aggravating factors in arriving at a final administrative penalty
decision. Appendix B is currently undergoing review within Customs with
a view to publication of a proposed revision of those guidelines, with
opportunity for public comment, in the near future.
Notwithstanding the upcoming revision of appendix B to part 171 and
the intended solicitation of public comments thereon, Customs has
determined that immediate action must be taken in a penalty mitigation
context to address the textile and textile products transshipment
problem described above. Customs notes that transshipments have
resulted in material false statements, acts or omissions regarding the
country of origin of the imported merchandise, including false
designations of origin. Consequently, it is Customs position that
transshipment must be susceptible to treatment as an aggravating factor
in arriving at a final mitigated section 592 penalty decision under
part 171 of the regulations. For these reasons, this document amends
section (G) of appendix B to part 171 on an interim basis by adding a
reference to ``transshipment in the case of textiles and textile
products affecting a country of origin determination'' as an
aggravating factor. Although this change is effective for merchandise
entered, or withdrawn from warehouse for consumption, on or after April
1, 1994, Customs will consider any comments submitted either in
response to this document or in response to the solicitation of public
comments on the overall revision of appendix B referred to above.
Comments
Before adopting this interim amendment as a final rule,
consideration will be given to any written comments (preferably in
triplicate) timely submitted to Customs. Comments submitted 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)), on regular business days between the hours of 9 a.m.
and 4:30 p.m. at the Regulations Branch, Office of Regulations and
Rulings, Franklin Court, 1099 14th Street, NW., suite 4000, Washington,
DC.
Inapplicability of Notice and Delayed Effective Date Requirements
Because this amendment constitutes a general statement of policy,
the public notice requirements of 5 U.S.C. 553(b)(A) do not apply and,
for the same reason pursuant to 5 U.S.C. 553(d)(2), a delayed effective
date is not required.
Executive Order 12866
This document does not meet the criteria for a ``significant
regulatory action'' as specified in Executive Order 12866.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required for an interim
action, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601
et seq.) do not apply.
List of Subjects in 19 CFR Part 171
Administrative practice and procedure, Customs duties and
inspection, Law enforcement, Penalties, Seizures and forfeitures.
Amendment to 19 CFR Chapter I
Part 171, Customs Regulations (19 CFR Part 171), is amended as set
forth below:
PART 171--FINES, PENALTIES, AND FORFEITURES
1. The authority citation for part 171 continues to read in part as
follows:
Authority: 19 U.S.C. 66, 1592, 1618, 1624.
* * * * *
2. Appendix B to part 171 is amended by revising section (G) to
read as follows:
Appendix B to Part 171--Customs Regulations, Revised Penalty
Guidelines, 19 U.S.C. 1592
* * * * *
(G) Aggravating Factors
Certain factors may be determined to be aggravating factors in
arriving at the final administrative penalty decision. Examples of
aggravating factors include obstructing the investigation,
withholding evidence, providing misleading information concerning
the violation, transshipment in the case of textiles and textile
products affecting a country of origin determination, and prior
substantive violations of section 592 for which a final
administrative finding of culpability has been made.
* * * * *
Samuel H. Banks,
Acting Commissioner of Customs.
Approved: March 18, 1994.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-7516 Filed 3-29-94; 8:45 am]
BILLING CODE 4820-02-P
