[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