[Federal Register Volume 62, Number 210 (Thursday, October 30, 1997)]
[Notices]
[Pages 58769-58770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28779]


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DEPARTMENT OF THE TREASURY

Customs Service


Public Meeting on Reconciliation

AGENCY: Customs Service, Department of the Treasury.

ACTION: Notice of meeting.

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SUMMARY: This notice announces that a public meeting regarding 
reconciliation will be held in Hearing Room A of the Interstate 
Commerce Commission Building in Washington, DC., commencing at 9:30 
a.m. on Wednesday, November 12, 1997. The purpose of this meeting is to 
(1) discuss transfer pricing issues and (2) analyze a proposal for a 
menu-approach to reconciliation. Customs has received various comments 
from members of the importing community that a flexible approach should 
be developed for reconciliation, under which companies can choose an 
option which will best suit their business needs.

DATES: The meeting will be held November 12, 1997, from 9:30 a.m. to 4 
p.m.

ADDRESSES: The meeting will be held at the Interstate Commerce 
Commission Building, Hearing Room A, 12th Street & Constitution Avenue, 
NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: To attend the meeting, please contact 
the Office of Regulations and Rulings at (202) 927-0760.
    For additional information on the meeting, please contact either 
John Durant, Office of Regulations and Rulings, at (202)927-1964 or 
Shari McCann, Office of Field Operations at (202)927-1106.

SUPPLEMENTARY INFORMATION: On December 8, 1993, the President signed 
the North American Free Trade Agreement Implementation Act (Pub. L. 
103-182). Title VI of the Act contained provisions relating to Customs 
modernization and is popularly known as the Customs Modernization Act 
or Mod Act. In Title VI, section 637 amends section 484 of the Tariff 
Act of 1930 (19 U.S.C. 1484) to create a new subsection (b) entitled 
``Reconciliation.''
    Reconciliation allows a party to provide information, other than 
admissibility information, which is undeterminable at time of entry 
summary, to Customs at a later date. A reconciliation is treated as an 
entry for purposes of liquidation, reliquidation and protest.
    Customs has published several notices in the Federal Register 
regarding prototype tests of reconciliation. On May 10, 1996, Customs 
published a notice in the Federal Register (61 FR 21534) regarding a 
reconciliation test covering entries to which antidumping and 
countervailing duties applied. This test has been completed.
    Customs also published two notices regarding plans to test 
reconciliation for related party importers who had reason to believe 
upward adjustments may have been made to the price of imported 
merchandise for tax purposes pursuant

[[Page 58770]]

to 26 U.S.C. 482 (60 FR 64470 and 60 FR 46141).
    The Account-based Declaration Prototype (62 FR 14731, published 3/
27/97), which includes a reconciliation component, is currently being 
designed under the Automated Commercial Environment.
    Customs is also currently designing the ACS Reconciliation 
Prototype and published a notice in the Federal Register (62 FR 51181) 
on September 30, 1997, announcing plans to conduct a test of this 
prototype. The testing period of this prototype is scheduled to be 
implemented in October, 1998.
    The importing community has raised concerns to Customs that 
reconciliation, as is currently envisioned, is overly burdensome in the 
data required. Customs and the trade are working together in an attempt 
to provide a series of options for reconciliation, which will provide 
the controls and information needed by the government and a practical 
mechanism which accommodates various business situations.
    This document announces that a public meeting will be held to 
discuss issues related to the development of reconciliaton by Customs. 
At this meeting, Customs and the trade participants will address 
reconciliation under the current legal structure, and analyze a menu-
approach to reconciliation. The goal will be to secure a definition of 
the various business problems for which reconciliation does not fit, 
analyze a series of options under which to design reconciliation, and 
finalize a joint Customs/Industry proposal. Customs will discuss with 
the trade participants whether any statutory, regulatory or policy 
changes are required before reconciliation can be best implemented.
    The meeting will be held in Hearing Room A of the Interstate 
Commerce Commission Building in Washington, DC., commencing at 9:30 
a.m. on Wednesday, November 12, 1997. Because seating is limited, 
reservations are required.
    The morning session of this meeting will be devoted to a discussion 
of transfer pricing, including the issues companies face in working 
under both the Customs and IRS statutes and transfer pricing situations 
in need of a reconciliation reporting mechanism. The afternoon session 
will be devoted to government/industry analysis of a menu-approach to 
reconciliation. The menu-approach is intended to provide a series of 
options which address various business needs, including the entire 
range of value issues (e.g., assists, indirect payments, transfer 
pricing, etc.)

    Dated: October 27, 1997.
John Durant.
Director, Mod Act Task Force.
[FR Doc. 97-28779 Filed 10-29-97; 8:45 am]
BILLING CODE 4820-02-P