[Federal Register Volume 59, Number 157 (Tuesday, August 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20029]
[[Page Unknown]]
[Federal Register: August 16, 1994]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 101
RIN 1515-AB47
Test Programs
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document proposes to amend the Customs Regulations by
adding a new provision that would allow for test programs and
procedures in general and, specifically, for purposes of implementing
those Customs Modernization provisions of the North American Free Trade
Agreement Implementation Act that provide for the National Customs
Automation Program. The proposed regulation would allow the
Commissioner of Customs to conduct limited test programs/ procedures,
which have as their goal the more efficient and effective processing of
passengers, carriers, and merchandise, and impose upon participants
requirements different from those specified in the Customs Regulations,
but only to the extent that such different requirements do not affect
the collection of the revenue, public health, safety, or law
enforcement.
DATES: Comments must be received on or before October 17, 1994.
ADDRESSES: Written comments (preferably in triplicate) may be addressed
to the Regulations Branch, Office of Regulations and Rulings, U.S.
Customs Service, Franklin Court, 1301 Constitution Avenue, NW.,
Washington, D.C. 20229. Comments submitted may be inspected at the
Regulations Branch, Office of Regulations and Rulings, U.S. Customs
Service, Franklin Court, 1099 14th St., NW, Suite 4000, Washington,
D.C.
FOR FURTHER INFORMATION CONTACT: John Durant, Director, Commercial
Rulings Division, (202) 482-6990.
SUPPLEMENTARY INFORMATION:
Background
Title VI of the North American Free Trade Agreement Implementation
Act (the Act), Public Law 103-182, 107 Stat. 2057 (December 8, 1993),
contains provisions pertaining to Customs Modernization (107 Stat.
2170). Subtitle B of title VI establishes the National Customs
Automation Program (NCAP)--an automated and electronic system for the
processing of commercial importations. Section 631 in Subtitle B of the
Act creates sections 411 through 414 of the Tariff Act of 1930 (19
U.S.C. 1411-1414), which define and list the existing and planned
components of the NCAP (section 411), promulgate program goals (section
412), provide for the implementation and evaluation of the program
(section 413), and provide for remote location filing (section 414).
Section 631 of the Act provides Customs with direct statutory
authority for full electronic processing of all Customs-related
transactions. For each planned NCAP program component, Customs is
required to prepare a separate implementation plan in consultation with
the trade community, establish eligibility criteria for voluntary
participation in the program, test the component, and transmit to
Congress the implementation plan, testing results, and an evaluation
report. The testing of any planned NCAP components would be conducted
under carefully delineated circumstances--with objective measures of
success or failure, a predetermined time frame, and a defined class of
participants. Notice of any NCAP program component testing would be
published in both the Customs Bulletin and the Federal Register and
participants solicited.
In addition to testing planned NCAP components there are other
areas of Customs-related transactions wherein Customs and the trade
community could benefit from the valuable information that limited test
programs/procedures could provide. Thus, Customs is proposing this
regulation in order both to meet its obligations under the NCAP
legislation and to provide itself with the ability to obtain
information necessary to predict the effects of various policy options.
If adopted, the regulation would allow the Commissioner of Customs to
conduct limited test programs and procedures and allow certain eligible
members of the public to participate on a voluntary basis. Also,
because test programs could require exemptions from regulations in
various parts of the Customs Regulations, e.g., parts 113 (Customs
bonds), 141 (entry of merchandise), 142 (entry process), 171 (fines,
penalties, and forfeitures), 174 (protests), and 191 (drawback),
participants would be subject to requirements different from those
specified in the Customs Regulations, but only to the extent that such
different requirements do not affect the collection of the revenue,
public health, safety, or law enforcement. Accordingly, pursuant to the
Secretary's authority under section 624 of the Tariff Act of 1930 (19
U.S.C. 1624) to make such rules and regulations as may be necessary to
carry out the provisions of the Tariff Act of 1930 and pursuant to the
requirement set forth in section 413 of the Tariff Act of 1930 (19
U.S.C. 1413) that the Secretary test planned NCAP program components,
it is proposed to amend the Customs Regulations at part 101 (19 CFR
part 101) to allow the Commissioner of Customs to conduct limited test
programs and procedures in general, as well as for purposes of
implementing the NCAP provisions of the Act.
Discussion of Proposed Amendment
Customs proposes to amend part 101 of the Customs Regulations (19
CFR part 101) by adding a new Sec. 101.9, which would allow the
Commissioner of Customs to conduct limited test programs and procedures
in general and for purposes of implementing NCAP program components,
which may impose upon eligible participants requirements different from
those specified in the Customs Regulations, but only to the extent that
such different requirements do not affect the collection of the
revenue, public health, safety, or law enforcement. Those test
programs/procedures related to the NCAP would be subject to certain
time, scope, participation, and publication constraints, whereas, those
test programs that are not related to the NCAP would be subject, in
general, to constraints concerning time and scope only. However,
because general test programs may affect the processing not only of
passengers and carriers but also the importation of merchandise,
Customs recognizes that the provisions of 19 U.S.C. 1484(a)(2)(C), as
amended, require that, to the maximum extent practicable, the Secretary
provide for the equal treatment of all importers of record of imported
merchandise. Accordingly, the proposed regulation requires that notice
be published in both the Customs Bulletin and the Federal Register
before implementing those limited tests or procedures that involve
merchandise.
In order to implement test programs and procedures in general
(i.e., tests that are designed to evaluate the effectiveness of new
technology or operational procedures in the processing of passengers,
carriers, or merchandise) paragraph (a) authorizes the Commissioner of
Customs to provide for requirements different from those specified in
the Customs Regulations, but only to the extent that such different
requirements do not affect the collection of the revenue, public
health, safety, or law enforcement. Such different requirements will be
limited in scope, time, and application as necessary to facilitate the
conduct of the specified program or procedure. Where the test program
or procedure could affect the processing of merchandise, however, not
less than thirty days prior to implementing such test program or
procedure a notice of the test program would be published in both the
Customs Bulletin and the Federal Register, inviting public comments
concerning the methodology of the test program or procedure, and which
informs interested members of the public of the eligibility criteria
for voluntary participation in the test program and the basis for
selecting participants. Where the test program or procedure does not
affect the importation of merchandise and is not required under the
NCAP legislation, however, public notice would not be required.
In order to implement test programs and procedures for purposes of
implementing NCAP program components, as described in section 411(a)(2)
of the Tariff Act of 1930 (19 U.S.C. 1411(a)(2)), paragraph (b)
similarly authorizes the Commissioner of Customs to provide for
requirements that may be different from those specified in the Customs
Regulations, but only to the extent that such different requirements do
not affect the collection of the revenue, public health, safety, or law
enforcement. The publication requirement on tests of planned NCAP
components is similar. Not less than 30 days prior to implementing any
test program or procedure notice of the NCAP test would be published in
both the Customs Bulletin and the Federal Register that invites public
comments concerning the test program, and informs interested members of
the public of the eligibility criteria for voluntary participation in
the test program and the basis for selecting participants. Within a
reasonable time following the completion of the test program or
procedure a description of the results would be published in both the
Customs Bulletin and the Federal Register.
Comments
Before adopting this proposed regulation as a final rule
consideration will be given to any written comments 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
of the Treasury Department Regulations (31 CFR 1.4), and Sec. 103.11(b)
of the 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, U.S. Customs Service, Franklin
Court, 1099 14th St., N.W., 4th floor, Washington, D.C.
Inapplicability of the Regulatory Flexibility Act, and Executive Order
12866
Since the regulation proposed seeks to alleviate regulatory burdens
rather than impose new ones, it does not constitute a ``major rule''
for purposes of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq.,
and is, therefore, not subject to its provisions. Further, this
document does not meet the criteria for a ``significant regulatory
action'' as specified in E.O. 12866.
Drafting Information
The principal author of this document was Gregory R. Vilders,
Office of Regulations and Rulings, Regulations Branch. However,
personnel from other offices participated in its development.
List of Subjects in 19 CFR Part 101
Customs duties and inspection, Exports, Imports, Organization and
functions (Government agencies), Reporting and recordkeeping
requirements, Tests.
Amendments to the Regulations
For the reasons stated above, part 101 of the Customs Regulations
(19 CFR part 101) is amended as set forth below:
PART 101--GENERAL PROVISIONS
1. The authority citation for part 101 is revised to read as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note 17,
Harmonized Tariff Schedule of the United States (HTSUS)), 1623,
1624.
Section 101.3 and 101.4 also issued under 19 U.S.C. 1 and 58b;
Section 101.9 also issued under 19 U.S.C. 1411-1414.
2. It is proposed to amend part 101 by adding a new Sec. 101.9 to
read as follows:
Sec. 101.9 Test programs or procedures; alternate requirements.
(a) General testing. For purposes of conducting a test program or
procedure designed to evaluate the effectiveness of new technology or
operational procedures regarding the processing of passengers, vessels,
or merchandise, the Commissioner of Customs may impose requirements
different from those specified in the Customs Regulations, but only to
the extent that such different requirements do not affect the
collection of the revenue, public health, safety, or law enforcement.
The imposition of any such different requirements shall be subject to
the following conditions:
(1) Defined purpose. The test is limited in scope, time, and
application to such relief as may be necessary to facilitate the
conduct of a specified program or procedure;
(2) Prior publication requirement. For tests affecting the entry of
merchandise, whenever practicable, notice shall be published in the
Federal Register not less than thirty days prior to implementing such
test, followed by publication in the Customs Bulletin. The notice shall
invite public comments concerning the methodology of the test program
or procedure, and inform interested members of the public of the
eligibility criteria for voluntary participation in the test and the
basis for selecting participants. For tests affecting the entry of
passengers or carriers, no public notice is required.
(b) NCAP testing. For purposes of conducting an approved test
program or procedure designed to evaluate planned components of the
National Customs Automation Program (NCAP), as described in section
411(a)(2) of the Tariff Act of 1930 (19 U.S.C. 411), the Commissioner
of Customs may impose requirements different from those specified in
the Customs Regulations, but only to the extent that such different
requirements do not affect the collection of the revenue, public
health, safety, or law enforcement. In addition to the requirement of
paragraph (a)(1) of this section, the imposition of any such different
requirements shall be subject to the following conditions:
(1) Prior publication requirement. For tests affecting the NCAP,
notice shall be published in the Federal Register not less than thirty
days prior to implementing such test, followed by publication in the
Customs Bulletin. The notice shall invite public comments concerning
any aspect of the test program or procedure, and inform interested
members of the public of the eligibility criteria for voluntary
participation in the test and the basis for selecting participants;
and,
(2) Post publication requirement. Within a reasonable time period
following the completion of the test, a complete description of the
results shall be published in both the Federal Register and the Customs
Bulletin.
George J. Weise,
Commissioner of Customs.
Approved: August 5, 1994.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-20029 Filed 8-15-94; 8:45 am]
BILLING CODE 4820-02-P
