[Federal Register Volume 62, Number 77 (Tuesday, April 22, 1997)]
[Rules and Regulations]
[Pages 19492-19493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10272]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Custons Service

19 CFR Part 133

[T.D. 97-30]
RIN 1515-AC09


Disposition of Excluded Articles Pursuant to the 
Anticounterfeiting Consumer Protection Act

AGENCY: Customs Service, Treasury.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document amends the Customs Regulations to implement 
section 8 of the Anticounterfeiting Consumer Protection Act of 1996 
(ACPA), which was enacted by Congress to protect consumers and American 
businesses from counterfeit copyrighted and trademarked products. 
Section 8 of the ACPA concerns the disposition of excluded articles and 
eliminates a statutory provision that allowed infringing imported goods 
to be returned to the country of export whenever it is shown that the 
importer had no reasonable grounds for believing his or her acts 
constituted a violation of law. The statutory amendment now requires 
government officials to destroy such goods. The regulatory change 
reflects the statutory amendment and is designed to help Customs fight 
counterfeiting more effectively.

EFFECTIVE DATE: May 22, 1997.

FOR FURTHER INFORMATION CONTACT: John Atwood, Intellectual Property 
Rights Branch, Office of Regulations and Rulings, (202) 482-6960.

SUPPLEMENTARY INFORMATION:

Background

    Finding that counterfeit products cost American businesses an 
estimated $200 billion each year worldwide, Congress enacted the 
Anticounterfeiting Consumer Protection Act of 1996 (ACPA) to make sure 
that Federal law adequately addresses the scope and sophistication of 
modern counterfeiting. The provisions of the ACPA are designed to 
provide important weapons in the fight against counterfeiters. On July 
2, 1996, the President signed the ACPA into law (Pub.L. 104-153, 110 
Stat. 1386).
    The ACPA contains 13 substantive sections, which will be 
implemented in several Federal Register documents. This document 
concerns section 8 of the ACPA, which amends title 17 of the United 
States Code (17 U.S.C. 603(c)), which concerns the enforcement of anti-
counterfeiting laws and disposition of excluded articles. The amendment 
of section 603(c) removes a provision that allowed infringing imported 
goods to be returned to the country of export whenever it is shown that 
the importer had no reasonable grounds for believing his or her acts 
constituted a violation of law. By eliminating this provision in 
section 603(c), government officials are now required to destroy such 
goods.
    The provisions of section 603(c) are provided for at 
Secs. 133.42(c), 133.44(a), and 133.47 of the Customs Regulations (19 
CFR 133.42(c), 133.44(a), and 133.47). Accordingly, these regulatory 
provisions are amended by removing the language which allows for the 
return of seized infringing merchandise to the importer or country of 
export.

Inapplicability of the Regulatory Flexibility Act, And Executive Order 
12866

    Inasmuch as these amendments merely conform the Customs Regulations 
to existing law as discussed

[[Page 19493]]

above, pursuant to 5 U.S.C. 553(b)(B), notice and public procedure are 
unnecessary. Since this document is not subject to the notice and 
public procedure requirements of 5 U.S.C. 553, it is not subject to the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
Further, this document does not meet the criteria for a ``significant 
regulatory action'' as specified in Executive Order 12866.

List of Subjects in 19 CFR Part 133

    Copyrights, Counterfeit goods, Customs duties and inspection, 
Imports, Penalties, Prohibited merchandise, Reporting and recordkeeping 
requirements, Restricted merchandise, Seizures and forfeitures, 
Trademarks, Trade names, Unfair competition.

Amendment to the Regulations

    For the reasons stated above, part 133 of the Customs Regulations 
(19 CFR part 133) is amended as set forth below:

PART 133--TRADEMARKS, TRADE NAMES, AND COPYRIGHTS

    1. The general authority citation for part 133 continues to read as 
follows:

    Authority: 17 U.S.C. 101, 601, 602, 603; 19 U.S.C. 66, 1624; 31 
U.S.C. 9701.
* * * * *


Sec. 133.42  [Amended]

    2. In Sec. 133.42, the third sentence of paragraph (c) is amended 
by removing the words ``, unless the article may be returned to the 
country of export as provided in Sec. 133.47''.


Sec. 133.44  [Amended]

    3. In Sec. 133.44, the first sentence of paragraph (a) is amended 
by removing the word ``either'' and the words ``or, if the conditions 
prescribed by Sec. 133.47 are met, permit the importer to return the 
article to the country of export''. In the last sentence, the words 
``In either event, the'' are removed and the word ``The'' is added in 
their place.


Sec. 133.47  [Removed]

    4. Section 133.47 is removed.
Samuel H. Banks,
Acting Commissioner of Customs.

    Approved: March 24, 1997.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 97-10272 Filed 4-21-97; 8:45 am]
BILLING CODE 4820-02-P