Comment on FR Doc # E8-07068

The following comments are also attached. Permits Proposal 2 calls would require that the resident agent of a foreign entity importing or exporting tuna obtain a Highly Migratory Species International Trade Permit (HMS ITP). The proposal draws analogously from Customs and Border Patrol (CBP) regulations which require that the resident agents take responsibility for the customs affairs of foreign entities. Certain foreign entities may have business associates involved in the trade of tuna and other HMS. The resident agent for customs purposes, though, is often a customs broker or other agent specialized in the process of clearing customs. Even domestic HMS ITP holders have customs brokers. Such customs brokers are hardly traders. With this rule, the customs brokers of foreign entities would be required to have an HMS ITP but those of domestic entities would not. This rule, therefore, would effectively draw a distinction between foreign and domestic HMS ITP holders through their customs brokers, somewhat arbitrarily. CBP operates a vastly complex customs and border protection system. The HMS ITP system deals primarily with conservation and the collection of data. Adding these duties to CBP is not necessarily an effective use of resources. Further, doing it in the manner proposed would is somewhat arbitrary. The rule, therefore, should be clarified to simply require that the foreign entities themselves have HMS ITP permits, enabling regulation and data collection from the source. Proposal 4 seeks to expand shark fin regulation. Currently NMFS participates in shark fin regulatory programs in the Atlantic & the Gulf of Mexico. The proposed rule would expand the HMS ITP requirements to shark fin traders from all ocean areas. This proposed rule could be problematic in light of the extent of US territorial waters. Atlantic and Gulf of Mexico shark fisheries fall well within the 200 mile zone of US economic interest at sea. Accordingly, from an international trade perspective, there is no problem in requiring ITP for shark fins caught in such waters and in similar waters controlled by other countries who also harvest shark fins. The proposed rule would expand the necessity of HMS ITP permits to all oceans. It is not clear that the HMS ITP is an appropriate mechanism for shark fin regulation. Some ocean water may have shark which are not HMS. Requiring HMS ITP for shark fins may be inappropriate. The NMFS should look to the WTO decision in US Shrimp I for guidance on permit programs with international scope. Diplomatic action through international agreements might be a more appropriate means of regulating shark fin trade on an international level. Reporting Proposal 3 to allow for HMS ITP holder to fulfill their reporting requirements through the biweekly reports of Atlantic Tuna Dealer Permit (ATDP) holders. The advantage of doing this is not clear. The dual reporting mechanism helps reduce IUU because all Atlantic tuna trade in and through the US are confirmed at both the point of landing (through HMS ITP holders) and at later points of trade (through ATDP holders). The synchronicity of the information and numbers from both reports helps ensure that Atlantic tuna in US commerce are not IUU. Eliminating the need for HMS ITP bi-weekly reporting would reduce the NMFS’ chances of noticing IUU tuna in the US. Enforcement with the dual reporting system can begin once irregularities are discovered quickly. Under the proposed system, only specific audits of HMS ITP and their ATDPs would lead to the discovery of irregularities. These audits might prove fruitless and HMS ITP holders would have no reason to keep as detailed records. The proposed rule, therefore, should be withdrawn and the dual reporting system maintained. Regulatory Structure and Clarifications Proposal 3 would adopt the HTS codes for swordfish. This is a very good idea. Since the HTS is based on the internationally adopted customs classifications proffered by the World Customs Organization, US fishermen would benefit government adoption of these internationally accepted classifications. Questions of product classification by customs officials in other countries could be reduced, enabling easier trade in NMFS regulated swordfish. This would create an incentive for compliance with swordfish regulatory programs, reducing IUU. The proposed rule in a very good idea.