[Federal Register Volume 60, Number 195 (Tuesday, October 10, 1995)]
[Rules and Regulations]
[Pages 52627-52628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24705]



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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 101

[T.D. 95-80]


Customs Service Field Organization--San Jose, CA

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations pertaining to the 
field organization of the Customs Service by designating San Jose, 
California, as a port of entry. This change is made as part of Customs 
continuing program to obtain more efficient use of its personnel, 
facilities, and resources, and to provide better service to carriers, 
importers, and the general public.

EFFECTIVE DATE: November 9, 1995.

FOR FURTHER INFORMATION CONTACT: Harry Denning, Office of Field 
Operations, (202) 927-0196.

SUPPLEMENTARY INFORMATION:

Background

    As part of a continuing program to obtain more efficient use of its 
personnel, facilities, and resources, and to provide better service to 
carriers, importers, and the general public, Customs published a 
document in the Federal Register (60 FR 25176) on May 11, 1995, 
proposing to amend Sec. 101.3, Customs Regulations (19 CFR 101.3) by 
designating a four county area surrounding San Jose, California, as a 
port of entry for Customs purposes and to amend Sec. 101.4, Customs 
Regulations (19 CFR 101.4) by removing Monterey as a Customs station. 
Monterey, which is part of the four county area encompassed within San 
Jose, is presently listed in Sec. 101.4(c), Customs Regulations, as a 
Customs station under the supervision of the San Francisco port of 
entry. San Jose is presently part of the port of entry of San 
Francisco.
    As the proposal stated, the city of San Jose requested designation 
as a port of entry stating that the efficiency in having a port of 
entry located in San Jose would represent a considerable saving of time 
and cost for the business community.
    The request for port of entry status stated that there will be 
several Federal Government benefits if the port of entry is approved. 
Approval will support the national goal of United States 
competitiveness by strengthening the economic competitiveness of one of 
the nation's most critical high technology areas. It will increase the 
efficiency of the regional Customs service by improving the 
distribution of entries which must be cleared through the San 
Francisco-Oakland port and the San Jose port. It will decrease 
congestion on the Bay Area's freeways due to shipments going directly 
to San Jose International Airport. Finally, it will further the Customs 
goal of increased automation, since San Jose International Airport has 
provided the equipment necessary to supply a fully automated, highly 
efficient Customs port.
    The proposal stated that the San Jose port of entry will be served 
by three major modes of transportation (air, rail and highway) and that 
San Jose has a population of 2,167,000.
    The City of San Jose has committed to the optimal use of electronic 
data input equipment and software to permit integration with any 
Customs system for electronic processing of commercial entries. San 
Jose International Airport has provided, at no cost to the Federal 
Government, computer equipment and systems which are needed to comply 
with the goals of the National Customs Automation Program.
    Based on the information provided to Customs, the proposal set 
forth Customs belief that San Jose meets the current standards for port 
of entry designation set forth in T.D. 82-37, as revised by T.D. 86-14 
and T.D. 87-65.

Analysis of Comments

    Two entities responded to the proposal. One, an airline, responded 
favorably to the proposal. One, a Customs broker, responded negatively 
to the proposal.
    The Customs broker is concerned with how shipments subject to Food 
and Drug Administration (FDA) processing will be handled. The current 
procedure for handling cargo which is subject to FDA examination and/or 
holding will continue, that is, FDA-related entries currently filed in 
San Francisco or Oakland for goods located in San Jose are forwarded 
first to the FDA office in Alameda, and their determination is 
forwarded or faxed to the San Jose FDA office. FDA has informed Customs 
that the procedure will not change once San Jose becomes a separate 
port. The time required to clear an FDA-related entry should not change 
at all.
    Most of the broker's other comments related to the relative 
staffing between the ports of San Francisco and San Jose and to entry 
submission at both ports. San Jose is currently being staffed with six 
positions (five inspectors and one supervisor) funded by COBRA user 
fees. This staffing will not change in the near future. Customs 
believes the current staffing at San Jose is sufficient to process both 
passengers and cargo. The staffing will remain constant through the 
year 2000.
    Regarding the commenter's concern that there will be inconvenience 
or added processing time when San Jose becomes a port, Customs notes 
that brokers will be able to file their entries at San Francisco 
International Airport or San Jose International Airport, whichever they 
choose.

Determination

    After consideration of the comments and further review, Customs has 
determined to amend Sec. 101.3 to establish San Jose as a port of entry 
and to amend Sec. 101.4 to remove Monterey as a Customs station.

Limits of Port of Entry

    The geographical limits of the port of entry of San Jose are as 
follows:
    All of Santa Clara, Santa Cruz, Monterey and San Benito Counties in 
the State of California.

Regulatory Flexibility Act and Executive Order 12866

    Customs routinely establishes, expands, and consolidates Customs 
ports of entry throughout the United States to accommodate the volume 
of Customs-related activity in various parts of the country. Although 
this document was issued for public comment, it is not subject to the 
notice and public procedure requirements of 5 U.S.C. 553 because it 
relates to agency management and organization. Accordingly, this 
document is not subject to the 

[[Page 52628]]
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
Agency organization matters such as this are exempt from consideration 
under Executive Order 12866.

    Drafting Information: The principal author of this document was 
Janet L. Johnson, Regulations Branch. However, personnel from other 
offices participated in its development.

List of Subjects in 19 CFR Part 101

    Customs duties and inspection, Harbors, Organization and functions 
(Government agencies), Seals and insignia, Vessels.

Amendments to the Regulations

    For the reasons set forth in the preamble, part 101 of the Customs 
Regulation is amended as set forth below.

PART 101--GENERAL PROVISIONS

    1. The general authority citation for part 101 and the specific 
authority citations for Secs. 101.3 and 101.4 continue to read as 
follows:

    Authority: 5 U.S.C. 301; 10 U.S.C. 2, 66, 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States (HTSUS)), 1623, 
1624.

    Sections 101.3 and 101.4 also issued under 19 U.S.C. 1 and 58b;
* * * * *


Sec. 101.3  [Amended]

    2. Section 101.3(b) is amended by adding ``San Jose'' to the list 
of ports of entry in appropriate alphabetical order in the State of 
California and by adding ``T.D. 95-80'' in the adjacent ``Limits of 
Port'' column.


Sec. 101.4  [Amended]

    3. Section 101.4(c) is amended by removing ``Monterey'' from the 
``Customs station'' column and ``San Francisco-Oakland'' from the 
adjacent ``Supervisory Port of Entry'' column.
Michael H. Lane,
Acting Commissioner of Customs.

    Approved: September 20, 1995.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 95-24705 Filed 10-6-95; 8:45 am]
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