[Federal Register Volume 62, Number 110 (Monday, June 9, 1997)]
[Proposed Rules]
[Pages 31383-31385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14903]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 123, 128, 141, 143, 145 and 148

RIN 1515-AC11


Increase of Maximum Amount for Informal Entries to $2000

AGENCY: Customs Service, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: Under the current Customs Regulations, shipments of 
merchandise generally must be valued at $1,250 or less in order to 
qualify for informal entry procedures. This regulatory value limit 
reflects the previous statutory maximum that the Secretary of the 
Treasury could establish by regulation under 19 U.S.C. 1498(a)(1) prior 
to its amendment by section 662 of the North American Free Trade 
Agreement Implementation Act which raised the statutory maximum to 
$2,500. As a consequence of this increase in the statutory maximum, and 
consistent with the regulatory discretion conferred by the statute to 
establish a level within that limit, Customs proposes in this document 
to amend the Customs Regulations to increase the informal entry value 
limit to $2,000.

DATES: Comments must be received on or before August 8, 1997.

ADDRESSES: Written comments (preferably in triplicate) may be addressed 
to the Regulations Branch, U.S. Customs Service, Franklin Court, 1301 
Constitution Avenue, N.W., Washington, D.C. 20229. Comments submitted 
may be inspected at the Regulations Branch, Office of Regulations and 
Rulings, Franklin Court, 1099 14th Street, N.W., Suite 4000, 
Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Operational Aspects: Linda Walfish, 
Office of Field Operations (202-927-0042).
    Legal Aspects: Jerry Laderberg, Office of Regulations and Rulings 
(202-482-6940).

SUPPLEMENTARY INFORMATION:

Background

    All merchandise imported into the customs territory of the United 
States is subject to entry and clearance procedures. Section 484(a), 
Tariff Act of 1930, as amended (19 U.S.C. 1484(a)), provides that the 
``importer of record'' or his authorized agent shall: (1) Make entry 
for imported merchandise by filing such documentation or information as 
is necessary to enable Customs to determine whether the merchandise may 
be released from Customs custody; and (2) complete the entry by filing 
with Customs the declared value, classification and rate of duty 
applicable to the merchandise and such other documentation or other 
information as is necessary to enable Customs to properly assess duties 
on the merchandise and collect accurate statistics with respect to the 
merchandise and determine whether any other applicable requirement of 
law is met. Part 142, Customs Regulations (19 CFR Part 142), implements 
section 484 and prescribes procedures applicable to most Customs entry 
transactions. These procedures are referred to as formal entry 
procedures and generally involve the completion and filing of one or 
more Customs forms (such as Customs Form 7501, Entry/Entry Summary, 
which contains detailed information regarding the import transaction) 
as well as the filing of commercial documents pertaining to the 
transaction.
    As originally enacted, section 498, Tariff Act of 1930 
(subsequently codified at 19 U.S.C. 1498), authorized the Secretary of 
the Treasury to prescribe rules and regulations for the declaration and 
entry of, among other things, imported merchandise when the aggregate 
value of the shipment did not exceed such amount, but not greater than 
$250, as the Secretary shall specify in the regulations. Regulations 
implementing this aspect of section 498 are contained in Subpart C of 
Part 143, Customs Regulations (19 CFR Part 143) which is entitled 
``Informal Entry''. The informal entry procedures set forth in Subpart 
C of Part 143 are less

[[Page 31384]]

burdensome than the formal entry procedures prescribed in Part 142 of 
the regulations. For example, if authorized by the port director, 
informal entry may be effected by the filing of a commercial invoice 
setting forth a declaration signed by the importer or his agent 
attesting to the accuracy of the information on the invoice.
    Section 206 of the Trade and Tariff Act of 1984 (Public Law 98-573, 
98 Stat. 2948) amended section 498 by increasing to $1,250 (but with 
some exceptions) the maximum dollar amount that the Secretary could 
prescribe by regulation for purposes of the declaration and entry of 
imported merchandise. On July 23, 1985, T.D. 85-123 was published in 
the Federal Register (50 FR 29949) to, among other things, increase to 
$1,000 the regulatory limit for which informal entries could be filed; 
the regulatory amendments in this regard involved changes to Subpart C 
of Part 143 and various other provisions of the Customs Regulations 
that reflected the $250 informal entry dollar limit, and Customs 
explained in the background portion of T.D. 85-123 that the new limit 
would be set initially in the regulations at $1,000, with the option to 
increase it to $1,250 in the future. On August 31, 1989, Customs 
published in the Federal Register (54 FR 36025) T.D. 89-82 which 
amended the Customs Regulations by increasing the limit for which 
informal entries could be filed to the maximum $1,250 permitted under 
section 498 as amended by section 206 of the Trade and Tariff Act of 
1984.
    Section 662 of the North American Free Trade Agreement 
Implementation Act (Pub. L. 103-182, 107 Stat. 2057) amended section 
498 by increasing to $2,500 the maximum dollar amount that the 
Secretary could prescribe by regulation for purposes of the declaration 
and entry of merchandise. As a result of this further increase in the 
statutory maximum, and in consideration of the fact that the regulatory 
limit for informal entries has not been increased since 1989, Customs 
believes that it would be appropriate to again increase the regulatory 
limit for informal entries.
    Similar to the approach taken in 1985 as indicated above, and 
noting that the statutory maximum still represents a ceiling but does 
not preclude adoption of a lower regulatory limit, Customs believes 
that it would be preferable at this time to take an intermediate step 
by establishing a new informal entry limit of $2,000, which would be 
considerably higher than the present $1,250 regulatory limit but still 
somewhat below the maximum level authorized by statute. Customs 
believes that adoption of this proposed $2,000 limit would result in 
the best balance between the revenue and statistical collection and 
enforcement responsibilities of Customs and the interest of the 
importing public in having an expanded opportunity to use the less 
burdensome informal entry procedures. If the proposed new $2,000 
informal entry limit is adopted, Customs would still retain the option 
of proposing a further upward adjustment of the regulatory limit at an 
appropriate future date, subject to the statutory maximum, after having 
had an opportunity to evaluate the operational effect of the new $2,000 
limit as well as any other intervening change in circumstances that may 
have an impact on the entry process.
    The proposed changes to the regulations set forth in this document 
involve replacement of references to ``$1,250'' by references to 
``$2,000'' in the informal entry provisions of Subpart C of Part 143 
and in various other provisions within Parts 10, 123, 128, 141, 145 and 
148 of the Customs Regulations (19 CFR Parts 10, 123, 128, 141, 145 and 
148).

Comments

    Before adopting the proposed amendments as a final rule, 
consideration will be given to any written comments (preferably in 
triplicate) 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, Treasury Department 
Regulations (31 CFR 1.4), and Sec. 103.11(b), Customs Regulations (19 
CFR 103.11(b)), on regular business days between the hours of 9:00 a.m. 
and 4:30 p.m. at the Regulations Branch, Office of Regulations and 
Rulings, Franklin Court, 1099 14th Street, NW., Suite 4000, Washington, 
DC.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Regulatory Flexibility Act

    Pursuant to the provisions of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.), it is certified that, if adopted, the proposed 
amendments will not have a significant economic impact on a substantial 
number of small entities. The proposed regulatory amendments are in 
response to a statutory change and will have the effect of reducing the 
regulatory burden on the public. Accordingly, the proposed amendments 
are not subject to the regulatory analysis or other requirements of 5 
U.S.C. 603 and 604.

Drafting Information

    The principal author of this document was Francis W. Foote, Office 
of Regulations and Rulings, U.S. Customs Service. However, personnel 
from other offices participated in its development.

List of Subjects

19 CFR Part 10

    Customs duties and inspection, Imports, Reporting and recordkeeping 
requirements.

19 CFR Part 123

    Aircraft, Canada, Customs duties and inspection, Imports, Mexico, 
Motor carriers, Railroads, Reporting and recordkeeping requirements, 
Vehicles, Vessels.

19 CFR Part 128

    Carriers, Couriers, Customs duties and inspection, Entry, Express 
consignments, Freight, Imports, Informal entry procedures, Manifests, 
Reporting and recordkeeping requirements.

19 CFR Part 141

    Bonds, Customs duties and inspection, Entry of merchandise, 
Invoices, Release of merchandise, Reporting and recordkeeping 
requirements.

19 CFR Part 143

    Customs duties and inspection, Entry of merchandise, Invoice 
requirements, Reporting and recordkeeping requirements.

19 CFR Part 145

    Customs duties and inspection, Imports, Mail, Postal service, 
Reporting and recordkeeping requirements.

19 CFR Part 148

    Customs duties and inspection, Imports, Personal exemptions, 
Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    For the reasons stated above, it is proposed to amend Parts 10, 
123, 128, 141, 143, 145 and 148 of the Customs Regulations (19 CFR 
Parts 10, 123, 128, 141, 143, 145 and 148), as set forth below.

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

    1. The authority citation for Part 10 continues to read in part as 
follows:


[[Page 31385]]


    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508, 
1623, 1624, 3314.
* * * * *


Sec. 10.1  [Amended]

    2. In Sec. 10.1, the introductory text of paragraph (a) and the 
first sentence of paragraph (b) are amended by removing the reference 
``$1,250'' and adding, in its place, the reference ``$2,000''.

PART 123--CUSTOMS RELATIONS WITH CANADA AND MEXICO

    1. The general authority citation for Part 123 is revised to read, 
and the specific authority citation for Sec. 123.4 continues to read, 
as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States (HTSUS)), 1431, 1433, 1436, 
1448, 1624.
* * * * *
    Section 123.4 also issued under 19 U.S.C. 1484, 1498;
* * * * *


Sec. 123.4  [Amended]

    2. In Sec. 123.4, the first sentence of paragraph (b) is amended by 
removing the reference ``$1,250'' and adding, in its place, the 
reference ``$2,000''.

PART 128--EXPRESS CONSIGNMENTS

    1. The authority citation for Part 128 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States), 1321, 1484, 1498, 1551, 1555, 
1556, 1565, 1624.


Sec. 128.24  [Amended]

    2. In Sec. 128.24, paragraph (a) is amended by removing the 
reference ``$1250'' wherever it appears and adding, in its place, the 
reference ``$2,000''.

PART 141--ENTRY OF MERCHANDISE

    1. The authority citation for Part 141 continues to read in part as 
follows:

    Authority: 19 U.S.C. 66, 1448, 1484, 1624.
* * * * *
    Subpart F also issued under 19 U.S.C. 1481;
* * * * *


Sec. 141.82  [Amended]

    2. In Sec. 141.82, paragraph (d) is amended by removing the 
reference ``$1,250'' and adding, in its place, the reference 
``$2,000''.

PART 143--SPECIAL ENTRY PROCEDURES

    1. The authority citation for Part 143 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1481, 1484, 1498, 1624.


Sec. 143.21  [Amended]

    2. In Sec. 143.21, paragraph (a), the first sentence of paragraph 
(b), and paragraphs (c), (f) and (g) are amended by removing the 
reference ``$1,250'' and adding, in its place, the reference 
``$2,000''.


Sec. 143.22  [Amended]

    3. In Sec. 143.22, the second sentence is amended by removing the 
reference ``$1,250'' and adding, in its place, the reference 
``$2,000''.


Sec. 143.23  [Amended]

    4. In Sec. 143.23, paragraphs (d) and (i) are amended by removing 
the reference ``$1,250'' and adding, in its place, the reference 
``$2,000''.


Sec. 143.26  [Amended]

    5. In Sec. 143.26, the heading and text of paragraph (a) are 
amended by removing the reference ``$1,250'' and adding, in its place, 
the reference ``$2,000''.

PART 145--MAIL IMPORTATIONS

    1. The authority citation for Part 145 continues to read in part as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States), 1624.

    Section 145.4 also issued under 18 U.S.C. 545, 19 U.S.C. 1618;
* * * * *
    Section 145.12 also issued under 19 U.S.C. 1315, 1484, 1498;
* * * * *
    Section 145.35 through 145.38, 145.41, also issued under 19 U.S.C. 
1498;
* * * * *


Sec. 145.4  [Amended]

    2. In Sec. 145.4, paragraph (c) is amended by removing the 
reference ``$1,250'' and adding, in its place, the reference 
``$2,000''.


Sec. 145.12  [Amended]

    3. In Sec. 145.12, paragraphs (a)(2), (a)(3) and (b)(1) and the 
heading and text of paragraph (c) are amended by removing the reference 
``$1,250'' wherever it appears and adding, in its place, the reference 
``$2,000''.


Sec. 145.35  [Amended]

    4. Section 145.35 is amended by removing the reference ``$1,250'' 
and adding, in its place, the reference ``$2,000''.


Sec. 145.41  [Amended]

    5. Section 145.41 is amended by removing the reference ``$1,250'' 
and adding, in its place, the reference ``$2,000''.

PART 148--PERSONAL DECLARATIONS AND EXEMPTIONS

    1. The authority citation for Part 148 continues to read in part as 
follows:

    Authority: 19 U.S.C. 66, 1496, 1498, 1624. The provisions of 
this part, except for subpart C, are also issued under 19 U.S.C. 
1202 (General Note 20, Harmonized Tariff Schedule of the United 
States).
* * * * *


Sec. 148.23  [Amended]

    2. In Sec. 148.23, the heading and text of paragraph (c)(1) and the 
heading and introductory text of paragraph (c)(2) are amended by 
removing the reference ``$1,250'' and adding, in its place, the 
reference ``$2,000''.

George J. Weise,
Commissioner of Customs.
    Approved: April 25, 1997.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 97-14903 Filed 6-6-97; 8:45 am]
BILLING CODE 4820-02-P