[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: 94-7517]
[[Page Unknown]]
[Federal Register: March 30, 1994]
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DEPARTMENT OF THE TREASURY
19 CFR PART 141
RIN 1515-AB39
Establishment of Conditional Release Period for Textiles and
Textile Products
AGENCY: Customs Service, Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document proposes to amend the Customs Regulations to
establish a conditional release period of 180 days on all entries of
textiles and textile products. This proposed amendment will permit
Customs to issue notices of redelivery to importers of textiles or
textile products up to 30 days after the end of the conditional release
period if investigation or information reveals that the merchandise was
imported in violation of visa or quota restrictions or other
requirements of law. Failure to comply with a notice of redelivery will
render the importer liable for liquidated damages under the terms of
the basic importation bond.
DATES: 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: Jeremy Baskin, Penalties Branch,
Office of Regulations and Rulings (202-482-6950).
SUPPLEMENTARY INFORMATION:
Background
Customs has encountered a significant enforcement problem with
regard to textiles and textile products that are subject to the
provisions of section 204, Agricultural Act of 1956, as amended (7
U.S.C. 1854), and that are imported into the United States in violation
of quota restrictions or without the appropriate visa from the country
of origin. This problem involves merchandise that is the product of a
country to which stringent quotas or visa requirements apply and that
is transshipped through a second country having less rigorous quota and
visa standards. Such transshipment operations are often performed in
order to facilitate the making of a false claim, upon importation into
the United States, that the merchandise is a product of the country
through which it was transshipped and therefore subject to the more
lenient quota and visa entry standards applicable to products of that
country. Discovery of these violations often occurs only after a
significant investigative effort that has been concluded well after the
time of entry and release of the offending merchandise into the
commerce of the United States.
While the penalty provisions of section 592 of the Tariff Act of
1930, as amended (19 U.S.C. 1592), are in principle available for
assessment against any party who has committed fraud, gross negligence
or negligence in connection with the entry of such transshipped
merchandise, it is not always possible to establish the requisite
culpability. The fact that section 592 penalties may not be
successfully assessed in each case involving transshipped merchandise
does not alter the fact that the entry of such merchandise into the
commerce of the United States in violation of visa and quota
requirements causes significant harm to domestic industry.
When penalty liability cannot be readily assessed or quantified,
claims for liquidated damages may be available to compensate for the
harm done. Under condition (d) of the Basic Importation and Entry Bond,
set forth in Sec. 113.62(d) of the Customs Regulations (19 CFR
113.62(d)), the importer agrees to redeliver timely, on demand by
Customs, any merchandise which has been conditionally released from
Customs custody if it fails to comply with the laws or regulations
governing admission into the United States. Under the last sentence of
that regulatory provision, any demand for redelivery must be made no
later than 30 days after the date that the merchandise was released or
30 days after the end of the conditional release period (whichever is
later). In C.S.D. 86-21, Customs noted that the end of the conditional
release period refers to a set time limitation established by
regulation, e.g., the 180-day period established with regard to Federal
motor vehicle safety standards in Sec. 12.80(e)(2) of the Customs
Regulations (19 CFR 12.80(e)(2)).
Textiles and textile products which exceed quota limits or do not
conform to visa requirements clearly are not entitled to admission into
the United States. However, inasmuch as no specific, different
conditional release period is provided for by regulation with regard to
such merchandise, under Sec. 113.62(d) Customs may issue a Notice of
Redelivery only within 30 days after release of the merchandise. In
view of the lengthy time required to detect violations relating to
transshipment, Customs often is unable to issue a timely Notice of
Redelivery and thus is foreclosed from assessing liquidated damages for
failure to redeliver the merchandise to Customs custody.
In order to address the problems discussed above, Customs proposes
in this document to amend Sec. 141.113 of the Customs Regulations (19
CFR 141.113) by adding a new paragraph (b) to provide for a specific
conditional release period of 180 days from the date of release for all
textiles and textile products subject to section 204 of the
Agricultural Act of 1956. Under Sec. 113.62(d), Customs would then have
up to 30 days from the end of the conditional release period to issue a
Notice of Redelivery. Failure to redeliver merchandise within the time
period specified in the Notice of Redelivery (generally 30 days from
the date of the notice) will result in the assessment of a claim for
liquidated damages under the Basic Importation and Entry Bond as
provided in Sec. 113.62(k) of the regulations. In addition, as a
consequence of the addition of this new paragraph (b) to Sec. 141.113,
this document also proposes to redesignate present paragraphs (b)-(g)
as (c)-(h) and to add within present paragraph (b) (redesignated as
(c)) a cross-reference to new paragraph (b) to accompany the existing
cross-reference to paragraph (a).
Comments
Before adopting the proposed amendments 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.
Executive Order 12866
This document does not meet the criteria for a ``significant
regulatory action'' as specified in Executive Order 12866.
Regulatory Flexibility Act
Pursuant to the provisions of 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. Establishment of a conditional release period
for textiles and textile products, which is necessary for law
enforcement purposes, will affect only the relatively small percentage
of importers who import such merchandise contrary to law. Accordingly,
the proposed amendments are not subject to the regulatory analysis or
other requirements of 5 U.S.C. 603 and 604.
List of Subjects in 19 CFR Part 141
Bonds, Customs duties and inspection, Entry procedures, Imports,
Release of merchandise.
Proposed Amendments to the Regulations
Accordingly, for the reasons set forth above, it is proposed to
amend part 141, Customs Regulations (19 CFR part 141), as set forth
below.
Part 141--Entry of Merchandise
1. The authority citation for part 141 continues to read in part as
follows:
Authority: 19 U.S.C. 66, 1448, 1484, 1624.
* * * * *
Section 141.113 also issued under 19 U.S.C. 1499, 1623.
2. Section 141.113 is amended by redesignating paragraphs (b)
through (g) as (c) through (h), by adding the words ``or (b)'' after
the words ``paragraph (a)'' in newly designated paragraph (c), and by
adding a new paragraph (b) to read as follows:
Sec. 141.113 Recall of merchandise released from Customs custody.
* * * * *
(b) Textiles and textile products. For purposes of determining the
admissibility of textiles and textile products subject to the
provisions of Sec. 12.130 of this chapter, the release from Customs
custody of any such textile or textile product shall be deemed
conditional during the 180-day period following the date of release. If
the district director finds during the conditional release period that
a textile or textile product is not entitled to admission into the
commerce of the United States based on quota restrictions or the
absence of a correct visa or for any other reason, he shall promptly
demand its return to Customs custody.
* * * * *
Approved: March 18, 1994.
Samuel H. Banks,
Acting Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-7517 Filed 3-29-94; 8:45 am]
BILLING CODE 4820-02-P