[Federal Register Volume 60, Number 241 (Friday, December 15, 1995)]
[Notices]
[Page 64470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30516]



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DEPARTMENT OF THE TREASURY

Customs Service


Notice of Revised Time Frames Regarding Test of Reconciliation 
for Adjustments Made to the Price of Imported Merchandise by Related 
Party Companies Under 26 U.S.C. 482

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

ACTION: Notice of revised time frames for test.

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SUMMARY: This document announces Customs decision to revise the time 
frames regarding the test Customs plans to conduct involving the use of 
reconciliation for those related party importers which have reason to 
believe upward adjustments may be made to the price of imported 
merchandise for tax purposes pursuant to 26 U.S.C. 482. In a prior 
Federal Register notice (60 FR 46141), Customs set out the eligibility 
requirements for voluntary participation in the test and described the 
basis on which Customs will select participants. This notice revises 
the time frames for both applicants to volunteer and for the 
commencement and conclusion of the planned test.

DATES: Applications to participate in this reconciliation test must be 
filed with and approved by Customs on or before May 1, 1996. The test 
will commence no earlier than May 1, 1996, and will cover entry 
summaries filed by selected participants from May 1, 1996, to December 
31, 1996, or the end of the participant's tax year, whichever comes 
first. Participants must file the reconciliation summary, which 
provides the outstanding value information, within 15 months of the 
filing of the first affected entry summary or by July 31, 1997, 
whichever comes first.

ADDRESSES: To be considered for voluntary participation in this test, 
applications should be submitted to Mr. William F. Inch, Director, 
Office of Regulatory Audit, Office of Strategic Trade, U.S. Customs 
Service, 1301 Constitution Avenue, N.W., Room 2311, Washington, D.C. 
20229-0001. Once the test is underway, reconciliation summaries shall 
be filed to the attention of Mr. Matthew Krimski, Office of Regulatory 
Audit, Office of Strategic Trade, U.S. Customs Service, 1301 
Constitution Avenue, N.W., Washington, D.C. 20229.

FOR FURTHER INFORMATION CONTACT: Matthew Krimski, (202) 927-0411.

SUPPLEMENTARY INFORMATION:

Background

    On September 5, 1995, Customs published a document in the Federal 
Register (60 FR 46141) announcing plans to conduct a test regarding the 
use of reconciliation for those related party importers which have 
reason to believe upward adjustments may be made to the price of 
imported merchandise for tax purposes pursuant to 26 U.S.C. 482. The 
document described the objectives of the test, the application process 
to participate, the eligibility criteria, selectivity criteria and test 
evaluation criteria. The document invited public participation in the 
test and set forth a deadline for applications at no later than October 
1, 1995. The planned commencement of the test was October 1, 1995.
    Customs is now revising certain elements of the September 5, 
document. Customs now plans to begin the test no earlier than May 1, 
1996, and the test will cover entry summaries filed by the selected 
participants from May 1, 1996, to December 31, 1996, or the end of the 
participant's tax year, whichever comes first.
    Participants must file the reconciliation summary, which provides 
the outstanding value information, within 15 months of the filing of 
the first affected entry summary or by July 31, 1997, whichever comes 
first. Further, by applying, applicants agree that the value for 
merchandise covered by all entry summaries filed by them or on their 
behalf on or after May 1, 1996, until the end of the tax year or 
December 31, 1996, whichever comes first, shall be finally determined 
by the liquidation of the reconciliation filed in accordance with the 
test.
    The time frame for Customs acceptance and approval of applications 
to participate in the test has been revised to May 1, 1996. 
Applications shall be addressed to Mr. William F. Inch as indicated 
above in this document.
    To be eligible to participate in the test, a participant's tax year 
must end between May 1, 1996 and December 31, 1996.
     For purposes of the reconciliation test, reconciliation summaries 
shall be filed to the attention of Matthew Krimski, Office of 
Regulatory Audit, Office of Strategic Trade, U.S. Customs Service, 1301 
Constitution Avenue, N.W., Washington, D.C. 20229.
    Aside from the revised information set forth in this document, all 
other information regarding the reconciliation test set forth in the 
Federal Register document of September 5, 1995, is still applicable.

    Dated: December 6, 1995.
Karen J. Hiatt,
Acting Assistant Commissioner, Office of Strategic Trade.
[FR Doc. 95-30516 Filed 12-14-95; 8:45 am]
BILLING CODE 4820-02-P