[Federal Register Volume 61, Number 97 (Friday, May 17, 1996)]
[Rules and Regulations]
[Pages 24888-24889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12373]
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DEPARTMENT OF THE TREASURY
19 CFR Parts 12, 145, and 161
[T.D. 96-42]
RIN 1515-AB91
Prohibited/Restricted Merchandise; Enforcement of Foreign Assets
Control Regulations
AGENCY: Customs Service, Treasury.
ACTION: Final rule.
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SUMMARY: This document amends the Customs Regulations to more clearly
provide that Customs enforces the laws and regulations of the Office of
Foreign Assets Control (OFAC) of the Department of the Treasury
regarding economic sanctions applicable to those countries that have
been designated by the President as constituting a threat to the
national security, foreign policy, or economy of the United States.
Currently, the Customs Regulations refer to OFAC regulations only in
the context of merchandise arriving by mail. This document clarifies
that Customs enforces the laws and regulations administered by OFAC
regardless of how subject merchandise, services, and technology arrive
in or depart from the U.S.
EFFECTIVE DATE: May 17, 1996.
FOR FURTHER INFORMATION CONTACT: Louis Alfano, Office of Field
Operations, Commercial Enforcement Branch, (202) 927-0005.
SUPPLEMENTARY INFORMATION:
Background
As part of Customs continuing effort to ensure that its regulations
are informative and up-to-date, Customs has determined that its
regulations do not clearly set forth the fact that Customs enforces the
laws and regulations administered by the Office of Foreign Assets
Control (OFAC) of the Department of the Treasury (31 CFR Chapter V).
These laws include the Trading With the Enemy Act (50 U.S.C. App. 1-
44), the National Emergencies Act (50 U.S.C. 1641 et seq.), the
International Emergency Economic Powers Act (50 U.S.C. 1701-1706), and
the International Security and Development Cooperation Act (22 U.S.C.
2349aa8-9); the regulations are found at Chapter V of Title 31 of the
Code of Federal Regulations (Money and Finance) (31 CFR Chapter V).
These laws and regulations impose prohibitions or restrictions on
importations, exportations, and other transactions involving funds,
merchandise, services, and technology with and of those countries that
have been designated by the President, pursuant to applicable statutory
provisions. Currently, the Customs Regulations refer to OFAC
regulations only in part 145 of the Customs Regulations (19 CFR Part
145), the provisions of which apply only to merchandise arriving by
mail. This document clarifies that Customs enforces the laws and
regulations administered by OFAC regardless of how the subject
merchandise, services, and technology arrive in or depart from the U.S.
by amending three sections in as many parts to provide further notice
to the public of Customs enforcement obligations concerning the
application of economic sanctions to designated countries.
In reviewing Sec. 145.56 of the Customs Regulations (19 CFR
145.56), which concerns the applicability of OFAC controls on
merchandise arriving by mail, Customs has determined that the listing
of countries subject to controls administered by OFAC is not up-to-
date. (The list of countries in the section has not been updated since
the section was promulgated in 1973 and is outdated and inconsistent
with OFAC regulations: two of the four countries currently listed are
no longer subject to OFAC's controls (North Vietnam (now Vietnam) and
Rhodesia (now Zimbabwe)) and other countries that have since been
designated by the President as subject to sanctions have not been added
to the list). Each time the President sanctions and lifts sanctions on
designated countries, OFAC amends its regulations accordingly.
Repeating the list of sanctioned countries in the Customs Regulations
merely duplicates the efforts of OFAC and, if not done timely, could
result in future inconsistencies between OFAC and Customs Regulations.
Accordingly, Customs has determined that to avoid the possibility of
future inconsistencies between OFAC and Customs Regulations in the
listing of sanctioned countries, Customs will no longer set forth such
a list in its regulations, but will simply refer readers to the OFAC
regulations. Thus, in amending Sec. 145.56, this document retains the
procedural provisions, but removes the listing of countries subject to
economic sanctions.
This document also clarifies the extent of Customs responsibility
in enforcing OFAC controls by adding sections regarding OFAC controls
in both Part 12, which concerns regulations of various Federal agencies
which Customs enforces and special classes of merchandise, and in Part
161, which concerns general enforcement provisions. A new Sec. 12.150
is added to Part 12, which cross-references OFAC regulations at 31 CFR
Chapter V, explains how OFAC regulations work, and provides an address
for further information from OFAC. Also, a specific authority citation
is added to account for Customs import (19 U.S.C. 1595a(c)) and export
(22 U.S.C 401) seizure authority and to account for the terms and
conditions for release (19 U.S.C. 1618). Section 161.2 is amended to
list OFAC as an agency whose laws are enforced by Customs. Also, the
parenthetical legal authority citations at the end of Sec. 161.2 are
amended to account for changes in the law since 1972, when the
citations were first provided, and are placed under the general
authority citation at the beginning of Part 161.
Inapplicability of Public Notice and Comment Requirements, Delayed
Effective Date Requirements, the Regulatory Flexibility Act, and
Executive Order 12866
Because this amendment merely provides further notice to the public
that Customs enforces the laws and regulations administered by the
Office of Foreign Assets Control of the Department of the Treasury,
pursuant to 5 U.S.C. 553(b)(B), good cause exists for dispensing with
notice and public procedure thereon as unnecessary. For the same
reasons, good cause exists for dispensing with a delayed effective date
under 5 U.S.C. 553(d)(1) and (d)(3). Since this document is not subject
to the notice and public procedure requirements of 5 U.S.C. 553, it is
not subject to provisions of the Regulatory Flexibility Act (5 U.S.C.
601 et seq.). This document does not meet the criteria for a
``significant regulatory action'' as specified in E.O. 12866.
List of Subjects
19 CFR Part 12
Customs duties and inspection, Economic sanctions, Imports,
Licensing, Prohibited merchandise, Restricted merchandise, Reporting
and recordkeeping requirements, Sanctions, Seizure and forfeiture.
[[Page 24889]]
19 CFR Part 145
Customs duties and inspection, Imports, Mail, Postal service,
Prohibited merchandise, Restricted merchandise, Reporting and
recordkeeping requirements, Seizure and forfeiture.
19 CFR Part 161
Customs duties and inspection, Imports, Law enforcement.
Amendments to the Regulations
For the reasons stated above, parts 12, 145, and 161 of the Customs
Regulations (19 CFR parts 12, 145, and 161), are amended as set forth
below:
PART 12--SPECIAL CLASSES OF MERCHANDISE
1. The general authority citation for Part 12 continues and a
specific authority citation for new Sec. 12.150 is added to read as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20,
Harmonized Tariff Schedule of the United States (HTSUS)), 1624;
* * * * *
Section 12.150 also issued under 19 U.S.C. 1595a and 1618; 22
U.S.C. 401.
2. Part 12 is amended by adding a centerheading and new Sec. 12.150
to read as follows:
Merchandise Subject to Economic Sanctions
Sec. 12.150 Merchandise prohibited by economic sanctions; detention;
seizure or other disposition; blocked property.
(a) Generally. Merchandise from certain countries designated by the
President as constituting a threat to the national security, foreign
policy, or economy of the United States shall be detained until the
question of its release, seizure, or other disposition has been
determined under law and regulations issued by the Treasury
Department's Office of Foreign Assets Control (OFAC) (31 CFR Chapter
V).
(b) Seizure. When an unlicensed importation of merchandise subject
to OFAC's regulations is determined to be prohibited, no entry for any
purpose shall be permitted and, unless the immediate reexportation or
other disposition of such merchandise under Customs supervision has
previously been authorized by OFAC, the merchandise shall be seized.
(c) Licenses. OFAC's regulations may authorize OFAC to issue
licenses on a case-by-case basis authorizing the importation of
otherwise prohibited merchandise under certain conditions. If such a
license is issued subsequent to the attempted entry and seizure of the
merchandise, importation shall be conditioned upon the importer:
(1) Agreeing in writing to hold the Government harmless, and
(2) Paying any storage and other Customs fees, costs, or expenses,
as well as any mitigated forfeiture amount or monetary penalty imposed
or assessed by Customs or OFAC, or both.
(d) Blocked property. Merchandise which constitutes property in
which the government or any national of certain designated countries
has an interest may be blocked (frozen) pursuant to OFAC's regulations
and may not be transferred, sold, or otherwise disposed of without an
OFAC license.
(e) Additional information. For further information concerning
importing merchandise prohibited under economic sanctions programs
currently in effect, the Office of Foreign Assets Control of the
Department of the Treasury should be contacted. The address of that
office is 1500 Pennsylvania Ave., N.W., Annex 2nd Floor, Washington,
D.C. 20220.
PART 145--MAIL IMPORTATIONS
1. The general authority citation for Part 145 is revised to read
as follows:
Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized
Tariff Schedule of the United States), 1624;
* * * * *
Sec. 145.56 [Amended]
2. Section 145.56 is amended by removing the words ``North Korea,
North Vietnam, Cuba, or Rhodesia'' and adding, in their place, the
words ``certain designated countries''; and by adding the parenthetical
words ``(See also 19 CFR 12.150)'' at the end of the section before the
period.
PART 161--GENERAL ENFORCEMENT PROVISIONS
1. The general authority citation for Part 161 is revised, and a
specific authority citation for section 161.2 is added, to read as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1600, 1619, 1624, 1646a;
Section 161.2 also issued under 12 U.S.C. 95a; 18 U.S.C. 545; 19
U.S.C. 1595(a); 22 U.S.C. 401, 1934, 2349aa8-9;
42 U.S.C. 1804, 1807; 50 U.S.C. 1641 et seq., 1701 et seq.;
50 U.S.C. App. 1-44, 2411.
* * * * *
2. Section 161.2 is amended by adding paragraph (a)(3) and removing
the parenthetical authority citations at the end of the section. The
revision reads as follows:
Sec. 161.2 Enforcement for other agencies.
(a) * * *
(1) * * *
(2) * * *
(3) Importations, exportations, and transactions involving
identified goods, services, and technology with any of those countries
designated as subject to economic sanctions under the laws and
regulations administered by the Office of Foreign Assets Control of the
Department of the Treasury.
* * * * *
Michael H. Lane,
Acting Commissioner of Customs.
Approved: April 8, 1996.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 96-12373 Filed 5-16-96; 8:45 am]
BILLING CODE 4820-02-P