[Federal Register Volume 63, Number 96 (Tuesday, May 19, 1998)]
[Proposed Rules]
[Pages 27533-27534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13217]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR PART 123
RIN 1515-AB88
Foreign-Based Commercial Motor Vehicles in International Traffic
AGENCY: Customs Service, Department of the Treasury.
ACTION: Proposed rule.
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SUMMARY: This document proposes to revise the Customs Regulations to
allow certain foreign-based commercial motor vehicles, which are
admitted as instruments of international traffic, to engage in the
transportation of merchandise between points in the United States where
such transportation is incidental to the immediately prior or
subsequent engagement of such vehicles in international traffic. Any
movement of these vehicles in the general direction of an export move
or as part of the return movement of the vehicles to their base country
shall be considered incidental to the international movement. The
benefit of this liberalization of current cabotage restrictions inures
in particular to both the United States and foreign trucking industries
inasmuch as it allows more efficient and economical utilization of
their respective vehicles both internationally and domestically.
DATE: Comments must be received on or before July 20, 1998.
ADDRESSES: Written comments (preferably in triplicate) may be addressed
to and inspected at the Regulations Branch, U.S. Customs Service, 1300
Pennsylvania Avenue, NW., 3rd Floor, Washington, DC 20229.
FOR FURTHER INFORMATION CONTACT:
Legal aspects: Glen E. Vereb, Office of Regulations and Rulings, 202-
927-2320.
Operational aspects: Eileen A. Kastava, Office of Field Operations,
202-927-0983.
SUPPLEMENTARY INFORMATION:
Background
Section 141.4(a), Customs Regulations (19 CFR 141.4(a)), provides
that entry as required by 19 U.S.C. 1484(a) shall be made of all
merchandise imported into the United States unless specifically
excepted. Foreign-based commercial motor vehicles are not among those
excepted items listed in Sec. 141.4(b) and would therefore be subject
to entry and payment of any applicable duty unless otherwise exempted
by law or regulations.
Pursuant to 19 U.S.C. 1322, vehicles and other instruments of
international traffic shall be excepted from the application of the
Customs laws to such extent and subject to such terms and conditions as
may be prescribed in regulations or instructions of the Secretary of
the Treasury.
This statutory mandate pertaining to foreign-based commercial motor
vehicles is implemented under Sec. 123.14 of the Customs Regulations
(19 CFR 123.14). Section 123.14(a) states that to qualify as
instruments of international traffic, such vehicles having their
principal base of operations in a foreign country must be arriving in
the United States with merchandise destined for points in the United
States, or arriving empty or loaded for the purpose of taking
merchandise out of the United States.
Section 123.14(c), Customs Regulations, states that with one
exception, a foreign-based commercial motor vehicle, admitted as an
instrument of international traffic under Sec. 123.14(a), shall not
engage in local traffic in the United States. The exception, set out in
Sec. 123.14(c)(1), states that such a vehicle, while in use on a
regularly scheduled trip, may be used in local traffic that is directly
incidental to the international schedule.
Section 123.14(c)(2), Customs Regulations, provides that a foreign-
based truck trailer admitted as an instrument of international traffic
may carry merchandise between points in the United States on the return
trip as provided in Sec. 123.12(a)(2) which allows use for such
transportation as is reasonably incidental to its economical and prompt
departure for a foreign country.
In regard to these cabotage restrictions, Customs has received a
petition from the American Trucking Association (ATA) requesting a
change in Customs interpretation of its regulations governing the use
of foreign-based trucks in local traffic in the United States. This
petition is the culmination of joint discussions beginning in July of
1994 between the ATA and the Canadian Trucking Association (CTA) to
obtain mutually agreed upon parameters with respect to the
liberalization of current truck cabotage restrictions in their
respective countries. The proposed amendments would, however, be
universally applicable.
By way of additional background, reference is hereby made to a
notice published in the Customs Bulletin pursuant to 19 U.S.C.
1625(c)(1) (see 31 Cust. Bull. and Dec. No. 40, 7 (October 1, 1997)),
which revised the interpretation of when a foreign-based truck would be
considered as used in international traffic under existing Sec. 123.14.
However, the proposal provided for herein regarding the use of a
foreign-based commercial motor vehicle, including a truck, in
permissible local traffic under Sec. 123.14(c) was, of course, not
addressed in the Customs Bulletin notice. To effect this change
requires an amendment under the Administrative Procedure Act, 5 U.S.C.
553.
Accordingly, Customs has determined to propose such an amendment of
Sec. 123.14(c), which would allow certain foreign-based commercial
motor vehicles, admitted as instruments of international traffic, to
engage in the transportation of merchandise between points in the
United States where such local traffic is incidental to the immediately
prior or subsequent engagement of such vehicles in international
traffic. In addition, this
[[Page 27534]]
revision would eliminate the current requirement that such
international traffic be regularly scheduled. Furthermore, any movement
of these vehicles in the general direction of an export move or as part
of the return movement of the vehicles to their base country shall be
considered incidental to the international movement.
In conjunction with the proposed amendments to Sec. 123.14, this
document also includes proposed conforming amendments to Sec. 123.16
regarding the return of the qualifying vehicles to the United States.
Comments
Before adopting the proposed amendments, consideration will be
given to any written comments that are 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 9:00 a.m. and 4:30 p.m. at the
Regulations Branch, 1300 Pennsylvania Avenue, NW., 3rd Floor,
Washington, DC.
Regulatory Flexibility Act and Executive Order 12866
The proposed rule would greatly relax current cabotage restrictions
for both the U.S. and foreign trucking industries, enabling more
efficient and economical use of their respective vehicles both
internationally and domestically. As such, under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.), it is certified that, if
adopted, the proposed amendments will not have a significant economic
impact on a substantial number of small entities. Nor would the
proposed rule result in a ``significant regulatory action'' under E.O.
12866.
List of Subjects in 19 CFR Part 123
Administrative practice and procedure, Canada, Common carriers,
Customs duties and inspection, Imports, International traffic, Motor
carriers, Railroads, Trade agreements, Vehicles.
Proposed Amendments to the Regulations
It is proposed to amend part 123, Customs Regulations (19 CFR part
123), as set forth below.
PART 123--CUSTOMS RELATIONS WITH CANADA AND MEXICO
1. The general authority citation for part 123, and the relevant
sectional authority citation, would continue to read as follows:
Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized
Tariff Schedule of the United States (HTSUS), 1431, 1433, 1436,
1448, 1624.
* * * * *
Sections 123.13--123.18 also issued under 19 U.S.C. 1322;
* * * * *
2. It is proposed to amend Sec. 123.14 by revising paragraph (c)(1)
to read as follows:
Sec. 123.14 Entry of foreign-based trucks, busses and taxicabs in
international traffic.
* * * * *
(c) * * *
(1) The vehicle may carry merchandise or passengers between points
in the United States if such carriage is incidental to the immediately
prior or subsequent engagement of that vehicle in international
traffic. Any such carriage by the vehicle in the general direction of
an export move or as part of the return of the vehicle to its base
country shall be considered incidental to its engagement in
international traffic.
* * * * *
3. It is proposed to amend Sec. 123.16 by revising paragraph (b) to
read as follows:
Sec. 123.16 Entry of returning trucks, busses, or taxicabs in
international traffic.
* * * * *
(b) Use in local traffic. Trucks, busses, and taxicabs in use in
international traffic, which may include the incidental carrying of
merchandise or passengers for hire between points in a foreign country,
or between points in this country, shall be admitted under this
section. However, such vehicles taken abroad for commercial use between
points in a foreign country, otherwise than in the course of their use
in international traffic, shall be considered to have been exported and
must be regularly entered on return.
Approved: March 31, 1998.
Samuel H. Banks,
Acting Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 98-13217 Filed 5-18-98; 8:45 am]
BILLING CODE 4820-02-P
