[Federal Register Volume 59, Number 112 (Monday, June 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14255]
[[Page Unknown]]
[Federal Register: June 13, 1994]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Parts 10, 101, 111, 123, 128, 141, 143, 145, 148, 159
[T.D. 94-51]
RIN 1515-AB53
Express Consignments; Formal and Informal Entries of Merchandise;
Administrative Exemptions
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Interim regulations; solicitation of comments.
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SUMMARY: The amendments contained in this document are being published
as interim regulations to implement certain statutory amendments to the
Customs laws regarding administrative exemptions. These statutory
amendments are contained in the Customs modernization provisions of the
North American Free Trade Agreement Implementation Act. Also, the
interim regulations clarify the procedures for shipments brought into
the United States by express consignment operators or carriers and make
clear that all shipments carried into the United States by express
consignment operators or carriers are required to be entered, unless
specifically exempt from entry. These interim regulations also
implement the Customs modernization provisions in the North American
Free Trade Agreement Implementation Act exempting from entry certain
merchandise (undeliverable shipments, railway freight locomotives and
cars, and instruments of international traffic).
DATES: Interim rule effective July 28, 1994; comments must be received
on or before July 13, 1994.
ADDRESSES: Written 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: William G. Rosoff, Office of
Regulations and Rulings, (202-482-7040).
SUPPLEMENTARY INFORMATION:
Background
On December 8, 1993, the President signed into law Public Law 103-
182, the North American Free Trade Agreement Implementation Act (107
Stat. 2057). Title VI of this Act, popularly known as the Customs
Modernization Act (the Act) amended certain Customs laws. Section 651
of the Act amended section 321, Tariff Act of 1930, as amended (19
U.S.C. 1321).
Before its amendment by the Act, section 321 authorized
administrative exemptions from duty and taxes on articles such as gifts
and personal and household goods, and in certain other situations.
Specifically, section 321 authorized the Secretary of the Treasury, in
order to avoid expense and inconvenience to the Government
disproportionate to the amount of revenue that would otherwise be
collected, to disregard a difference of less than $10 between the duty
actually due on an entry and the estimated duties deposited. On the
same basis, section 321 authorized the Secretary to admit free of duty
and tax any article the value of which was less than $50 in the case of
bona fide gifts ($100 if the gift was from certain island possessions)
sent from persons in foreign countries to persons in the United States.
Section 321 authorized the Secretary to admit free of duty and tax any
article the value of which was less than $25 in the case of personal or
household articles accompanying the traveler. In all other cases (i.e.,
if not a bona fide gift sent from a person in a foreign country to a
person in the United States or a personal or household article
accompanying a traveler), the Secretary was authorized to admit free of
duty and tax any article the value of which was less than $5.
In the last three cases (i.e., bona fide gifts, personal or
household articles, and all other cases), the exemptions were subject
to the condition that the aggregate fair retail value in the country of
shipment of articles imported by one person on one day could not exceed
the authorized amount. Also, the exemptions in these cases were not to
be granted in any case in which merchandise covered by a single order
or contract was forwarded in separate lots to secure the benefit of the
provision.
The Secretary was authorized to prescribe regulations to implement
these provisions. Section 321 specifically authorized the Secretary to
diminish any of the dollar amounts referred to above.
Section 651 of the Act increased the dollar amounts described and,
instead of setting maximum dollar amounts below which the Secretary was
authorized to make the exemptions applicable, authorized the Secretary
to make the exemptions applicable to an amount to be specified in
regulations, but not less than a stated amount. That is, the amended
section 321 now provides minimum dollar amounts for the exemptions.
In the case of the difference between duty actually due on an entry
and the estimated duties deposited, the dollar amount was increased to
a minimum of $20. Also, this provision was changed to authorize Customs
to apply the exemption to the total of duties, fees, and taxes, instead
of only duties and taxes, as had been the case. In the case of bona
fide gifts, personal or household articles, and all other cases, the
dollar amounts were respectively increased to $100 ($200, if the gift
is from one of the named island possessions), $200, and $200,
respectively.
Section 651 removed from Sec. 321 the specific authorization to, by
regulation, diminish any of the dollar amounts specified in the
provision. Section 651 retained the specific authorization in section
321 for regulations to prescribe exceptions to any exemption whenever
the Secretary finds such action is consistent with the purpose of the
provisions or is necessary to protect the revenue or to prevent
unlawful importations.
The provision in the Customs Regulations containing the
authorization to disregard a difference of less than $10 between the
duty actually due on an entry and the estimated duties deposited is
found in 19 CFR 159.6. The provisions in the Customs Regulations
pertaining to the administrative exemption for bona fide gifts are
found in 19 CFR 10.152 and 145.32 and the provision for personal or
household articles is found in 19 CFR 148.51 (see also Secs. 148.12,
148.64). The provisions in the Customs Regulations pertaining to the $5
administrative exemption for all other articles are found in 19 CFR
10.151 and 145.31. Conditions for the exemptions provided for in 19 CFR
10.151 and 10.152 are currently found in 19 CFR 10.153.
Provisions pertaining to the administrative exemptions under
section 321 are also found in part 128 of the Customs Regulations,
which relates to express consignments. Section 128.24(d) of that part
refers to low value shipments (i.e., shipments valued at $5 or less)
and provides that such shipments must be segregated from shipments
valued at more than $5 when the special informal entry procedures
provided for in part 128 are used. This provision was intended to cover
articles which could be administratively exempted from duties and taxes
under section 321(a)(2)(C) (see T.D. 89-53, published in the Federal
Register on May 8, 1989 (54 FR 19561)).
These interim regulations conform the Customs Regulations to the
changes made to section 321 by section 651 of the Act. In addition, the
interim regulations clarify entry procedures applicable to merchandise
subject to section 321. The dollar amounts currently provided for in 19
CFR 10.151 through 10.153, 145.31, 145.32, 148.12, 148.51, 148.64 and
159.6 are changed to the minimums provided for in the amended section
321.
The interim regulations amend part 143 to clarify the procedures
for entries of shipments qualifying for the administrative exemptions
in section 321(a)(2). Shipments covered in section 321(a)(2) are
included in the merchandise which may be entered under the procedures
provided for by regulation under 19 U.S.C. 1498. That provision
authorizes the Secretary of the Treasury to prescribe rules and
regulations for the declaration and entry of the merchandise described
in the section. Entries which may be provided for by regulation under
section 1498 are distinguished from entries which are required to be
filed under 19 U.S.C. 1484 (i.e., formal entries). As authorized by
section 1498, these amendments provide that the person who may make
entry of shipments covered by section 321(a)(2) is the owner,
purchaser, or consignee of the merchandise or, when appropriately
designated by one of these persons, a Customs broker licensed under 19
U.S.C. 1641. Under the same authority, an amendment to part 143 makes
it clear that the person who may make entry of other merchandise (i.e.,
merchandise not qualifying for the administrative exemptions in section
321(a)(2)) which qualifies for informal entry is the owner or purchaser
of the merchandise or, when appropriately designated by the owner,
purchaser, or consignee of the merchandise, a Customs broker licensed
under 19 U.S.C. 1641.
A corresponding amendment to part 111, concerning Customs brokers,
is added to the list of transactions for which a broker's license is
not required. The new provision provides that a person entering
merchandise qualifying for and entered under the informal entry
procedures authorized by 19 U.S.C. 1498 is not required to be licensed
as a broker unless required to be so licensed by regulations issued
under the authority of section 1498. A reference to the provision
included in part 143 is included in the new provision.
Also under the authority of 19 U.S.C. 1498, amendments are made to
part 143 to clearly provide the procedures for entries of the
merchandise covered in section 321(a)(2). Shipments of such merchandise
may be entered by presenting the bill of lading (or a manifest listing
each bill of lading) or other document used to file or support entry.
Manifest information is required consisting of the country of origin of
the merchandise, shipper name, address and country, ultimate consignee
name and address, specific description of the merchandise, quantity,
and value. Cross references are provided to section Secs. 148.12 and
148.62 to make it clear that entry by oral declaration continues to be
allowed.
No amendment to the regulations is being promulgated at this time
to implement the new subsection (a)(3) of section 321, added by section
651 of the Act. This provision allows Customs to waive the collection
of duties, fees, and taxes due on entered merchandise when such duties,
fees, or taxes are less than $20, in order to avoid expense and
inconvenience to the Government disproportionate to the amount of
revenue that would otherwise be collected. Regulations implementing
this provision are being delayed pending an analysis of the expense and
inconvenience to the Government in view of the revenue involved.
Section 159.6, authorizing Customs to disregard a difference of
less than $10 (now $20 under the amended section 321(a)(1)) between
duties deposited and duties actually due on an entry, is amended to
authorize Customs to apply the exemption to the total of duties, fees,
and taxes, as provided for in section 321(a)(1), as amended by section
651 of the Act.
Customs also is making amendments to the Customs Regulations in
part 128 relating to express consignments. These amendments are
intended to make it clear that all shipments carried into the United
States by express consignment operators and carriers are required to be
entered, unless specifically exempt from entry.
Basically, a 3-tier approach applies to such shipments. That is,
shipments valued in excess of $1250 are required to be formally
entered, as provided for under 19 U.S.C. 1484 in parts 141, 142, and
143 (except subpart C) of the Customs Regulations. Shipments valued
between $200 and $1250 may be entered under the informal entry
procedures, as provided for under 19 U.S.C. 1498 (unless the shipments
consist of merchandise which may not be entered under those
procedures). These procedures consist of the filing of a Customs Form
3461, either modified to cover all importations under the special
procedures for express consignment operator or carrier importations or
all such importations on a daily or flight basis, and the advance
filing of the manifest information provided for in 19 CFR 128.21. This
information consists of the country of origin, shipper name, address
and country, ultimate consignee name and address, specific description
of the merchandise and the tariff classification of the merchandise,
quantity, shipping weight, and value. An entry summary (Customs Form
7501) and estimated duties are required to be filed with Customs within
10 days of release of these shipments.
The third tier is for shipments valued at $200 or less. These
shipments also may be entered under the informal entry procedures, as
provided for under 19 U.S.C. 1498 (unless the shipments consist of
merchandise which may not be entered under those procedures). The
procedures for these shipments are the same as those for the second-
tier shipments (valued between $200 and $1250), except that the tariff
classification of the merchandise is not required for the shipments and
no entry summary or estimated duties is required to be filed.
An amendment to 19 CFR 101.1, adding a definition of ``shipment'',
makes it clear that the monetary exemption for third-tier shipments is
based on the bill of lading or other evidence used to file or support
entry, or oral declaration when applicable. For example, if the
document used to file or support entry is an individual bill of lading
to the ultimate consignee in the United States, the monetary limitation
is applied on the basis of the value of the shipment on the individual
bill of lading. This is so whether the document used to file or support
entry is itself the bill of lading or an advance manifest, as described
in 19 CFR 128.21, listing each of the individual bills of lading. On
the other hand, if the document used to file or support entry is a
master bill of lading (as opposed to each individual bill of lading),
the monetary limitation is applied on the basis of the total value of
the shipments on the master bill of lading. The same is true of the
application of the monetary limitation in section 321(a)(2) for other
importations (i.e., those not involving an express consignment entity).
This is so because the definition of ``shipment'' is for general
purposes in chapter I of title 19 of the CFR, unless the context of the
term requires a different meaning (see 19 CFR 101.1).
As is true generally under these amendments, the person who may
make entry for the shipments valued between $200 and $1250 which may be
entered under the informal entry procedures is the owner or purchaser
of the shipment or, when appropriately designated by the owner,
purchaser, or consignee of the shipment, a Customs broker licensed
under 19 U.S.C. 1641. The person who may make entry for the shipments
valued $200 or less which may be entered under the informal entry
procedures is the owner, purchaser, or consignee or, when appropriately
designated by one of these persons, a Customs broker licensed under 19
U.S.C. 1641. As discussed above, the authority for this distinction is
that these entries are made under 19 U.S.C. 1498 and the Secretary of
the Treasury is specifically authorized to prescribe rules and
regulations for the declaration and entry of such shipments.
Amendments are also made to part 141. Section 141.4 is amended to
clarify that shipments subject to the administrative exemptions under
Sec. 321(a)(2) must be entered under special informal entry procedures
for lower value shipments. Only merchandise specifically exempt from
entry (i.e., so-called intangibles, under General Note 13 (formerly
General Note 4), HTSUS, and certain vessels) is exempt from all forms
of entry. Also, a conforming amendment to the citation of the General
Note in Sec. 141.4 is necessary because of the redesignation of the
General Note (i.e., General Note 4, HTSUS, the predecessor to General
Note 13, was redesignated as General Note 13; see Presidential
Proclamation 6641, December 15, 1993, published in the Federal Register
on December 20, 1993 (58 FR 67032, 66867)).
Undeliverable Shipments
The North American Free Trade Agreement Implementation Act amended
General Note 4 (now General Note 13) by adding other articles which are
exempt from entry (section 681 of Pub. L. 103-182). The newly added
articles are articles which are returned as undeliverable to the United
States within 45 days of their departure from the United States. The
articles may not have left the custody of either the carrier or foreign
customs service during that time. The departure from the United States
of articles for which the exemption is granted may not be treated as
satisfying any requirement for exportation in order to receive a
benefit from, or meet an obligation to, the United States.
The amendment to Sec. 141.4 implements this provision. The
amendment requires the person claiming the exemption to certify that
the merchandise complies with the provision. In addition, the amendment
requires the person claiming the exemption to provide, upon request by
Customs, any evidence necessary to support the claim.
Other Exemptions From Entry
Section 681 of the Act also added a provision to the tariff
schedule exempting from entry and release requirements railway
locomotives (provided for in headings 8601 and 8602, HTSUS) and railway
freight cars (provided for in heading 8606, HTSUS) on which no duty is
owed (Additional U.S. Note 1, Chapter 86, HTSUS). Also, section 681 of
the Act provided for the addition of a Note to Chapter 99, HTSUS, under
which certain Canadian railway freight cars provided duty-free
treatment in subheadings 9905.86.05 and 9905.86.10, HTSUS, are exempt
from entry and release requirements. The railway freight cars provided
for in subheading 9905.86.05, HTSUS, are those produced before July 1,
1991, or if entered after July 1, 1994, produced not less than 3 years
before the date of importation, and provided for in heading 8606,
HTSUS. The railway freight cars provided for in subheading 9905.86.10,
HTSUS, are those imported for temporary use in transportation in the
United States and certified by the importer to be exported within 1
year from the date of importation and provided for in heading 8606,
HTSUS. In the case of both Notes (to be added to chapter 86 and 99,
HTSUS), the Secretary of the Treasury is authorized by regulation to
establish appropriate reporting requirements and to require that a bond
be posted to ensure compliance.
The amendment to Sec. 141.4 implements these provisions. In the
case of railway locomotives and freight cars which are exempt from
entry on the basis that no duty is owed on them and they are classified
in headings 8601, 8602, or 8606, HTSUS (i.e., without reference to
subheading 9905.86.05 or 9905.86.10, HTSUS), no special evidentiary
requirement is imposed because duty-free treatment is not conditioned
on any special condition (other than duty-free status because of
origin).
In the case of railway freight cars which are exempt from entry by
virtue of subheading 9905.86.05 or 9905.86.10, HTSUS, because there are
conditions other than the absence of duty being owed on the freight
cars, the amendment contains special evidentiary requirements. The
requirements, concerning the time of production of the freight car and
the duration of the stay in the United States of the freight car, shall
be met by a certification (documentary or electronic), subject to
Customs verification. In the case of the requirement to export the
freight car within 1 year from the date of importation, in subheading
9905.86.10, HTSUS, the amendment specifically provides that a freight
car admitted into the United States under this provision which is not
exported within the 1 year period becomes subject to entry and the
payment of any applicable duties.
As authorized by the statutory provision, the amendment provides
that locomotives and freight cars described in Additional U.S. Note 1
of Chapter 86, HTSUS, and freight cars described in subheading
9905.86.05 or 9905.86.10, HTSUS, may be released only after the
importer has filed a bond on Customs Form 301, containing either the
basic importation and entry conditions (19 CFR 113.62) or the
international carrier bond conditions (19 CFR 113.64). Amendments to 19
CFR 123.12 are added concerning the entry of foreign locomotives and
equipment in international traffic, to add references to the provisions
implementing these provisions.
Instruments of International Traffic
Section 681 of the Act added a provision to the tariff schedule
exempting from formal entry procedures instruments of international
traffic, such as containers, lift vans, rail cars and locomotives,
truck cabs and trailers, etc. The provision also provided for the
periodic reporting and payment of fees associated with the importation
of such instruments of international traffic.
The exemption from entry for instruments of international traffic
is already provided for in the Customs Regulations (see 19 CFR 10.41a).
There are no fees associated with the importation of instruments of
international traffic. Therefore, no substantive amendment to the
Customs Regulations is necessary to implement this provision. However,
to alert the public to the exemption from entry for instruments of
international traffic, a provision is added referring to this exemption
from entry and 19 CFR 10.41a in the list of exceptions from the general
rule in Sec. 141.4.
Accordingly, Customs is promulgating on an interim basis amendments
as described above and set forth below.
Delayed Effective Date and Public Comment Requirements
The agency intends that these interim regulations become effective
on the 45th day following the date of publication, i.e., 15 days after
the close of the comment period. The agency believes it has good cause
under 5 U.S.C. 553(d) (1) and (3) of the Administrative Procedure Act
(APA) (5 U.S.C. 553) to promulgate interim regulations because the
regulations provide an immediate benefit to both the Government and the
public by increasing exemptions which already exist. These interim
regulations are intended to implement Congressional intent embodied in
19 U.S.C. 1321, as amended, that these exemptions, when granted, should
exist at statutory minimums.
Furthermore, existing rights and obligations are not otherwise
changed. The agency believes the public wants these new statutory
minimums to become effective as soon as possible as the public should
benefit from the efficiencies and savings resulting therefrom. In
addition, the agency does not believe the public needs time to conform
its conduct so as to avoid violation of these regulations. The due and
timely execution of the agency's responsibilities would be
unnecessarily impeded by a time consuming notice and comment period.
The agency believes such delay is unnecessary because it does not
expect the public to object to the regulations being promulgated as
they merely provide the relief that Congress intended.
Even though, based on the discussion set forth above, Customs
believes the amendments in this document may be promulgated on an
interim basis and could be effective immediately, Customs is providing
a 45-day delayed effective date, with a 30 day comment period preceding
that effective date. This represents a practical compromise between the
need for temporal urgency and the desirability of public participation
in the rulemaking process.
In the spirit of the APA, the agency is soliciting public comment
regarding its decision to promulgate these interim regulations and in
delaying their effective date only for that period of time necessary to
review any relevant comments regarding that decision. Unless the
comments show that there exists good cause for not making the
regulations effective on an interim basis, the regulations will become
effective on an interim basis on the 45th day following the date of
publication.
Comments
Consequently, the agency hereby solicits comments on both the
substance of these regulations and their intended effective date. The
comments should clearly state whether they address the substance of the
interim rule or the agency's determination to make the rule effective
on an interim basis. If, based on the comments, good cause is shown
that the regulations should not become effective on an interim basis, a
document will be issued withdrawing the interim regulations before
their effective date. If no such good cause is shown, the interim
regulations will go into effect. The agency will then be able to gain
experience with the interim regulation, fully consider substantive
comments, and decide whether the interim regulation needs amendment
before its promulgation as a final rule.
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 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
Since this document is not subject to the notice and public
procedure requirements of 5 U.S.C. 553, it is not subject to the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
This document is not a ``significant regulatory action'' under E.O
12866.
Paperwork Reduction Act
The collections of information contained in this interim rulemaking
were previously approved by the Office of Management and Budget (OMB)
in accordance with the Paperwork Reduction Act of 1980 under control
numbers 1515-0069 (Secs. 128.21, 128.23, 128.24) and 1515-0065
(Secs. 141.4, 143.23).
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
19 CFR Part 10
Alterations, Bonds, Customs duties and inspection, Exports, Foreign
relations, Imports, Preference programs, Repairs, Reporting and
recordkeeping requirements, Trade agreements.
19 CFR Part 101
Customs duties and inspection, Exports, Imports, Organization and
functions (Government agencies).
19 CFR Part 111
Administrative practice and procedure, Brokers, Customs duties and
inspection, Imports.
19 CFR Part 123
Administrative practice and procedure, Aircraft, Bonds, Canada,
Customs duties and inspection, Imports, Mexico, Reporting and
recordkeeping requirements, Trade agreements, Vehicles, Vessels.
19 CFR Part 128
Carriers, Couriers, Customs duties and inspection, Express
Consignments, Imports.
19 CFR Part 141
Customs duties and inspection, Entry procedures, Invoices,
Reporting and recordkeeping requirements.
19 CFR Part 143
Automated broker interface, Customs duties and inspection,
Electronic entry filing, Imports, Invoice requirements.
19 CFR Part 145
Customs duties and inspection, Imports, Postal Service.
19 CFR Part 148
Customs duties and inspection, Reporting and recordkeeping
requirements.
19 CFR Part 159
Liquidation of entries for merchandise, Suspension of liquidation
pending disposition of American manufacturer's cause of action.
Amendments
Title 19, chapter I, parts 10, 101, 111, 123, 128, 141, 143, 145,
148, and 159 of the Customs Regulations (19 CFR parts 10, 101, 111,
123, 128, 141, 143, 145, 148 and 159) is amended as set forth below:
PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,
ETC.
1. The general authority for part 10 is revised to read as follows,
and the specific section authority for Secs. 10.152 and 10.153 is
removed:
Authority: 19 U.S.C. 66, 1202, 1321, 1481, 1484, 1498, 1508,
1623, 1624;
* * * * *
2. Part 10 is amended by revising the center heading preceding
Sec. 10.151 to read as follows:
Importations Not Over $200 And Bona Fide Gifts
3. Section 10.151 is revised to read as follows:
Sec. 10.151 Importations not over $200.
Subject to the conditions in Sec. 10.153 of this part, the district
director shall pass free of duty and tax any shipment of merchandise,
as defined in Sec. 101.1(o) of this chapter, imported by one person on
one day having a fair retail value, as evidenced by the bill of lading
(or other document filed as the entry) or manifest listing each bill of
lading, in the country of shipment not exceeding $200, unless he has
reason to believe that the shipment is one of several lots covered by a
single order or contract and that it was sent separately for the
express purpose of securing free entry therefor or of avoiding
compliance with any pertinent law or regulation. Merchandise subject to
this exemption shall be entered under the informal entry procedures
(see subpart C, part 143, and Secs. 128.24, 145.31, 148.12, and 148.62,
of this chapter).
4. Section 10.152 is revised to read as follows:
Sec. 10.152 Bona-fide gifts.
Subject to the conditions in Sec. 10.153 of this part, the district
director shall pass free of duty and tax any article sent as a bona-
fide gift from a person in a foreign country to a person in the United
States, provided that the aggregate fair retail value in the country of
shipment of such articles received by one person on one day does not
exceed $100 or, in the case of articles sent from a person in the
Virgin Islands, Guam, and American Samoa, $200. Articles subject to
this exemption shall be entered under the informal entry procedures
(see subpart C, part 143, and Secs. 145.32, 148.12, 148.51, and 148.64,
of this chapter). An article is ``sent'' for purposes of this section
if it is conveyed in any manner other than on the person or in the
accompanied or unaccompanied baggage of the donor or donee.
5. Section 10.153 is amended by removing the references to ``$50''
and ``$100'' wherever appearing in paragraphs (b), (d)(2), (d)(3) and
(f), and by adding in place thereof, respectively, ``$100'' and
``$200''.
PART 101--GENERAL PROVISIONS
1. The authority for part 101 is revised to read as set forth
below, and the authority citations following Secs. 101.1 and 101.4 are
removed.
Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note 17,
Harmonized Tariff Schedule of the United States), 1623, 1624.
2. Section 101.1 is amended by adding a new paragraph (o) to read
as follows:
Sec. 101.1 Definitions.
* * * * *
(o) Shipment. ``Shipment'' means the merchandise described on the
bill of lading or other document used to file or support entry, or in
the oral declaration when applicable.
PART 111--CUSTOMS BROKERS
1. The general authority for part 111, and the specific section
authority for Sec. 111.3, are revised to read as follows:
Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized
Tariff Schedule of the United States (HTSUS)), 1624, 1641.
Section 111.3 also issued under 19 U.S.C. 1484, 1498;
* * * * *
2. Section 111.3 is amended by adding a new paragraph (e) to read
as follows:
Sec. 111.3 Transactions for which license is not required.
* * * * *
(e) Informal entries. A person entering merchandise qualifying for,
and entered under, the informal entry procedures authorized by 19
U.S.C. 1498 is not required to be licensed as a broker, unless required
to be so licensed under Sec. 143.26 of this chapter, issued under the
authority of 19 U.S.C. 1498.
PART 123--CUSTOMS RELATIONS WITH CANADA AND MEXICO
1. The general authority for part 123, and the specific section
authority for Secs. 123.12-123.18, are revised to read as follows:
Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized
Tariff Schedule of the United States (HTSUS)), 1431, 1624;
* * * * *
Sections 123.12 also issued under 19 U.S.C. 1202 (Chapter 86,
Additional U.S. Note 1, HTSUS), 1322;
Sections 123.13-123.18 also issued under 19 U.S.C. 1322;
* * * * *
2. Section 123.12 is amended by revising the first sentence,
respectively, of paragraphs (a)(1) and (a)(2), and by revising
paragraph (b), to read as follows:
Sec. 123.12 Entry of foreign locomotives and equipment in
international traffic.
(a) * * *
(1) On inward trip. Unless formally entered and cleared through
Customs into the United States, or unless exempt from entry as provided
in Sec. 141.4(b)(4) of this chapter, a foreign locomotive shall be used
on the inward trip only in connection with taking the inbound train to
the last place in a continuous haul, including the switching of cars
which it has hauled into the United States. * * *
(2) On outward trip. Unless formally entered and cleared through
Customs into the United States, or unless exempt from entry as provided
in Sec. 141.4(b)(4) of this chapter, foreign locomotives may be used on
the outward trip only in connection with through trains crossing the
boundary, including switching to make up such trains. * * *
(b) Admission of empty equipment. Empty foreign railroad equipment
shall be admitted to the United States without formal entry and payment
of duty only if:
(1) The passengers or goods to be loaded are to be transported
directly to or through a foreign country; or
(2) The equipment is exempt from entry as provided in
Sec. 141.4(b)(4) of this chapter.
* * * * *
PART 128--EXPRESS CONSIGNMENTS
1. The authority for part 128 is revised to read as follows:
Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized
Tariff Schedule of the United States (HTSUS)), 1321, 1484, 1498,
1551, 1555, 1556, 1565, 1624.
2. Section 128.21 is amended by revising paragraph (a)(4) to read
as follows:
Sec. 128.21 Manifest requirements.
(a) Additional information. * * *
(4) Specific description of the merchandise, and under the
following conditions, the Harmonized Tariff Schedule of the United
States (HTSUS) subheading number:
(i) If the merchandise is required to be formally entered as
provided in Sec. 128.25; or
(ii) If the merchandise is eligible for, and is entered under, the
informal entry procedures as provided in Sec. 128.24, but may not be
passed free of duty and tax as consisting of a shipment of merchandise
imported by one person on one day having a fair retail value in the
country of shipment not exceeding $200, as provided in Sec. 128.24(e).
* * * * *
3. Section 128.23 is revised to read as follows:
Sec. 128.23 Entry requirements.
(a) General rule. Except as provided in paragraph (c) of this
section, all articles carried by an express consignment entity shall be
entered by a person with the right to file entry.
(b) Procedures--(1) General. All express consignment entities
utilizing the procedures in this part shall comply with the
requirements of the Customs Automated Commercial System (ACS). These
requirements include those under the Automated Manifest System (AMS),
Cargo Selectivity, Statement Processing, the Automated Broker Interface
System (ABI), and enhancements of ACS.
(2) Entry number. All entry numbers must be furnished to Customs in
a Customs approved bar coded readable format in order to assist in the
processing of express consignment cargo under the Customs Automated
Commercial System (ACS).
(3) Paper entry document waiver. The district director is
authorized, at the time of entry, to accept the appropriate electronic
equivalent in lieu of entry documents for those entries designated as
not requiring examination or review when the advance manifest
requirements of Sec. 128.21(a) of this part have been met.
(c) Exception. Articles specifically exempt from entry by
Sec. 141.4(b) of this chapter need not satisfy the general rule as set
forth in paragraph (a) of this section.
4. Section 128.24 is amended by revising the last sentence of
paragraph (b), and the first sentence of paragraph (c), and by revising
paragraphs (d) and (e) to read as follows:
Sec. 128.24 Informal entry procedures.
* * * * *
(b) Procedures. * * * The party who may make entry under
Sec. 143.26 of this chapter may submit a copy of the invoice or the
advance manifest as described in Sec. 128.21 in lieu of other control
documents.
(c) Alternative procedure. The party who may make entry under
Sec. 143.26 of this chapter may be required to submit an individual
Customs Form 3461 covering the eligible shipments on a daily basis or
by flight basis. * * *
(d) Entry summary. An entry summary (Customs Form 7501) must be
presented in proper form, and estimated duties deposited within 10 days
of the release of the merchandise under either the regular or
alternative procedure described in this section. However, see paragraph
(e) of this section if the shipment is valued at $200 or less.
(e) Shipments valued at $200 or less. Shipments valued at $200 or
less meeting the requirements of Sec. 10.151 of this chapter shall be
passed free of duty and tax. Such shipments must be segregated from
shipments valued at more than $200 if an advance manifest is used as
the entry document, as provided for in Sec. 128.21. If such an advance
manifest is used as the entry document, the following are not required
to be provided for shipments qualifying under this paragraph:
(1) The Harmonized Tariff Schedule of the United States (HTSUS)
subheading number (see Sec. 128.21(a)(4)); and
(2) An entry summary (see paragraph (d) of this section).
5. Section 128.25 is revised to read as follows:
Sec. 128.25 Formal entry procedures.
Formal entry, as provided for under 19 U.S.C. 1484 in parts 141,
142, and 143 (except for subpart C), of this chapter, is required for
all shipments exceeding the monetary limitation for informal entry (see
Sec. 128.24) and any shipment for which the informal entry procedures
may not be used (see Sec. 128.24).
Sec. 128.26 [Removed]
6. Section 128.26 is removed.
PART 141--ENTRY OF MERCHANDISE
1. The general authority for part 141 continues to read as follows,
and the specific section authority for Sec. 141.4 is revised to read as
follows:
Authority: 19 U.S.C. 66, 1448, 1484, 1624.
* * * * *
Section 141.4 also issued under 19 U.S.C. 1202 (General Note 13;
Chapter 86, Additional U.S. Note 1; Chapter 89, Additional U.S. Note
1; Chapter 98, Subchapter III, U.S. Note 4; Chapter 99, Subchapter
V, U.S. Note 9, Harmonized Tariff Schedules of the United States
(HTSUS)), 1498;
* * * * *
2. Section 141.4 is revised to read as follows:
Sec. 141.4 Entry required.
(a) General. All merchandise imported into the United States is
required to be entered, unless specifically excepted.
(b) Exceptions. The following are the exceptions to the general
rule:
(1) The exemptions listed in General Note 13 to the Harmonized
Tariff Schedule of the United States (HTSUS).
(2) Vessels (not including vessels classified in headings 8903 and
8907 and subheadings 8905.90.10 and 8906.00.10 or in Chapter 98, HTSUS,
such as under subheadings 9804.00.35 or 9813.00.35). See also Chapter
89, Additional U.S. Note 1, HTSUS.
(3) Instruments of international traffic described in Sec. 10.41a
of this chapter, under the conditions provided for in that section. See
also Chapter 98, Subchapter III, U.S. Note 4, HTSUS.
(4) Railway locomotives classified in heading 8601 or 8602, HTSUS,
and freight cars classified in heading 8606, HTSUS, on which no duty is
owed (see paragraph (d) of this section). See Chapter 86, Additional
U.S. Note 1, HTSUS; Chapter 99, Subchapter V, U.S. Note 9, HTSUS; see
also 19 CFR part 123 for reporting requirements for railway equipment
brought into the United States from Canada or Mexico.
(c) Undeliverable articles. The exemption from entry for
undeliverable articles under General Note 13(e), HTSUS, is subject to
the following conditions:
(1) The person claiming the exemption must submit a certification
(documentary or electronic) that:
(i) The merchandise was intended to be exported to a foreign
country;
(ii) The merchandise is being returned within 45 days of departure
from the United States;
(iii) The merchandise did not leave the custody of the carrier or
foreign customs;
(iv) The merchandise is being returned to the United States because
it was undeliverable to the foreign consignee; and
(v) The merchandise was not sent abroad to receive benefit from, or
fulfill obligations to, the United States as a result of exportation.
(2) Upon request by Customs, the person claiming the exemption
shall provide evidence required to support the claim for exemption.
(d) Railway locomotives and freight cars. To be excepted from
entry, railway locomotives and freight cars described in Additional
U.S. Note 1 of Chapter 86, HTSUS, and railway freight cars from Canada
described in subheading 9905.86.05 or 9905.86.10, HTSUS, are subject to
the following requirements, as applicable:
(1) For a railway freight car described in subheading 9905.86.05,
HTSUS, the importer shall certify, subject to Customs verification,
that the freight car was produced before July 1, 1991, or if admitted
after July 1, 1994, that the freight car was produced not less than 3
years before the date of importation;
(2) For a railway freight car described in subheading 9905.86.10,
HTSUS, the importer shall certify, subject to Customs verification,
that the freight car will be exported within 1 year from the date of
importation. (Any railway freight car admitted into the United States
under this provision which is not exported within the 1-year period
becomes subject to entry and the payment of any applicable duties.);
(3) For railway locomotives and freight cars described in
Additional U.S. Note 1 of Chapter 86, HTSUS, and railway freight cars
described in subheading 9905.86.05 or 9905.86.10, HTSUS, to be released
in accordance with paragraph (b)(4) of this section, the importer shall
first file a bond on Customs Form 301, containing the bond conditions
set forth in either Sec. 113.62 or 113.64 of this chapter.
(e) Informal entry. Merchandise qualifying for informal entry by
regulation, pursuant to 19 U.S.C. 1498, is exempt from formal entry
under 19 U.S.C. 1484 and this part, but must be entered as required
under applicable regulations (see part 143, subpart C, and Secs. 10.151
through 10.153, 128.24, 145.31, 145.32, 148.12, 148.13, 148.51, and
148.62 of this chapter).
PART 143--SPECIAL ENTRY PROCEDURES
1. The authority for part 143 continues to read as follows:
Authority: 19 U.S.C. 66, 1481, 1484, 1498, 1624.
2. Section 143.21 is amended by adding a paragraph (l) to read as
follows:
Sec. 143.21 Merchandise eligible for informal entry.
* * * * *
(l) Shipments of merchandise qualifying for the administrative
exemptions under 19 U.S.C. 1321(a)(2) and provided for in--
(1) Section 10.151 or 145.31 of this chapter (certain importations
not exceeding $200 in value);
(2) Section 10.152 or 145.32 of this chapter (certain bona-fide
gifts not exceeding $100 in value ($200 in the case of articles sent
from a person in the Virgin Islands, Guam, or American Samoa)); or
(3) Section 148.51 or 148.64 of this chapter (certain personal or
household articles not exceeding $200 in value).
3. Section 143.23 is amended by adding two new paragraphs (i) and
(j) to read as follows:
Sec. 143.23 Form of entry.
* * * * *
(i) A shipment of merchandise not exceeding $1250 in value which is
imported by an express consignment operator or carrier and which meets
the requirements in Sec. 128.24 of this chapter may be entered as
provided in that section.
(j) Except for mail importations (see Secs. 145.31 and 145.32 of
this chapter), or in the case of personal written or oral declarations
(see Secs. 148.12, 148.13 and 148.62 of this chapter), a shipment of
merchandise not exceeding $200 in value which qualifies for informal
entry under 19 U.S.C. 1498 and meets the requirements in Sec. 10.151 or
Sec. 10.152 of this chapter may be entered by presenting the bill of
lading or a manifest listing each bill of lading (see Secs. 10.151,
10.152 and 128.24(e) of this chapter). The following information is
required to be filed as a part of such entry:
(1) Country of origin of the merchandise;
(2) Shipper name, address and country;
(3) Ultimate consignee name and address;
(4) Specific description of the merchandise;
(5) Quantity; and
(6) Value.
4. Section 143.26 is added to read as follows:
Sec. 143.26 Party who may make informal entry of merchandise.
(a) Shipments valued between $200 and $1250. A shipment of
merchandise valued between $200 and $1250 which qualifies for informal
entry under 19 U.S.C. 1498 may be entered by the owner or purchaser of
the shipment or, when appropriately designated by the owner, purchaser,
or consignee of the shipment, a Customs broker licensed under 19 U.S.C.
1641.
(b) Shipments valued at $200 or less. A shipment of merchandise
valued at $200 or less which qualifies for informal entry under 19
U.S.C. 1498 and meets the requirements in 19 U.S.C. 1321(a)(2) (see
Secs. 10.151, 10.152, 10.153, 145.31, 145.32, 148.51, 148.64, of this
chapter) may be entered by the owner, purchaser, or consignee of the
shipment or, when appropriately designated by one of these persons, a
Customs broker licensed under 19 U.S.C. 1641.
PART 145--MAIL IMPORTATIONS
1. The general authority for part 145 is revised to read as
follows:
Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized
Tariff Schedule of the United States (HTSUS)), 1624.
* * * * *
2. Section 145.31 is revised to read as follows:
Sec. 145.31 Importations not over $200 in value.
The district director shall pass free of duty and tax, without
preparing an entry as provided for in Sec. 145.12, packages containing
merchandise having an aggregate fair retail value in the country of
shipment of not over $200, subject to the requirements set forth in
Secs. 10.151 and 10.153 of this chapter.
3. Section 145.32 is revised to read as follows:
Sec. 145.32 Bona-fide gifts.
The district director shall pass free of duty and tax, without
preparing an entry as provided for in Sec. 145.12, articles sent as
bona-fide gifts from persons in foreign countries to persons in the
United States having an aggregate fair retail value in the country of
shipment not exceeding $100 ($200, in the case of articles sent from
persons in the Virgin Islands, Guam, and American Samoa), subject to
the requirements set forth in Secs. 10.152 and 10.153 of this chapter.
PART 148--PERSONAL DECLARATIONS AND EXEMPTIONS
1. The general authority for part 148 is revised, and the specific
section authority for Secs. 148.43, 148.51, 148.63, 148.64 and 148.74
continues, to read as follows:
Authority: 19 U.S.C. 66, 1496, 1498, 1624. The provisions of
this part, except for subpart C, are also issued under 19 U.S.C.
1202 (General Note 17, Harmonized Tariff Schedule of the United
States (HTSUS));
* * * * *
Sections 148.43, 148.51, 148.63, 148.64 and 148.74 also issued
under 19 U.S.C. 1321;
* * * * *
Secs. 148.12, 148.51, 148.64 [Amended]
2. Sections 148.12(b)(2)(ii), 148.51(b)(1), and 148.64(b)(1) are
amended by removing the reference to ``$25'' where appearing therein,
and by adding in its place ``$200''.
PART 159--LIQUIDATION OF DUTIES
1. The authority for part 159 continues to read as follows:
Authority: 19 U.S.C. 66, 1500, 1624. Subpart C also issued under
31 U.S.C. 5151. Additional authority and statutes interpreted or
applied are cited in the text or following the sections affected.
2. Section 159.6 is amended by removing the references to ``$10''
and ``duties'' wherever appearing in paragraphs (a), (b) and (c), and
by adding in place thereof, respectively, ``$20'', and ``duties, fees,
and taxes''; and by revising paragraph (d) to read as follows:
Sec. 159.6 Difference between liquidated duties and estimated duties.
* * * * *
(d) Customs duties and fees and internal revenue taxes netted for
$20 limit. The assessments of Customs duties and fees and internal
revenue taxes shall be separately stated on the entry at the time of
liquidation, but the amounts of any differences shall be netted when
applying the $20 minimum for issuance of a bill or refund check.
George J. Weise,
Commissioner of Customs.
Approved: May 26, 1994.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-14255 Filed 6-8-94; 4:40 pm]
BILLING CODE 4820-02-P
