[Federal Register Volume 63, Number 110 (Tuesday, June 9, 1998)]
[Proposed Rules]
[Pages 31385-31398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15336]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Parts 113 and 151
RIN 1515-AB60
Accreditation of Commercial Testing Laboratories; Approval of
Commercial Gaugers
AGENCY: Customs Service, Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document proposes to amend the Customs Regulations
relating to the commercial testing and gauging of imported merchandise,
pursuant to Customs modernization provisions of the North American Free
Trade Agreement Implementation Act. The proposed regulations revise the
general procedures for the accreditation/reaccreditation of commercial
laboratories, the approval/reapproval of commercial gaugers, and the
suspension and revocation of such accreditations/approvals. Further,
the proposed regulations establish a reimbursable fee schedule that
Customs will charge such laboratories/gaugers to accredit/ approve and
periodically reaccredit/reapprove their commercial services, and make
provision for the imposition of monetary penalties for failure to
adhere to any of the provisions applicable to the examination,
sampling, and testing of imported merchandise.
DATES: Comments must be received on or before August 10, 1998.
ADDRESSES: Written comments (preferably in triplicate) may be addressed
to the Regulations Branch, Office of Regulations and Rulings, U.S.
Customs Service, 1300 Pennsylvania Avenue, NW., Washington, DC 20229.
Comments submitted may be inspected at the Regulations Branch, Office
of Regulations and Rulings, U.S. Customs Service, Suite 3000, 1300
Pennsylvania Avenue, NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Ira Reese, Laboratories & Scientific
Services, (202) 927-1060.
SUPPLEMENTARY INFORMATION:
Background
On December 8, 1993, the United States enacted the North American
Free Trade Agreement Implementation Act (the Act), Pub. L. 103-182, 107
Stat. 2057. Title VI of the Act contains provisions pertaining to
Customs Modernization (107 Stat. 2170); section 613 of Subtitle A to
Title VI amends section 499 of the Tariff Act of 1930 (19 U.S.C. 1499),
which provides Customs with the authority to conduct examinations and
detain imported merchandise.
The Commercial Laboratory/Gauger Testing Provisions of Section 613
The provisions of section 613, among other things, codify Customs
regulations and administrative guidelines concerning the use of
commercial laboratories and gaugers by adding a new paragraph (b) to
section 499 (19 U.S.C. 1499(b)). Regarding the accreditation/approval
aspects of commercial laboratories/gaugers, the provisions of new
paragraph (b) authorize Customs to:
(1) Set procedures for the accreditation of commercial laboratories
in the United States, which may be used to perform tests relating to
the admissibility, quantity, composition, or characteristics of
imported merchandise, and the approval of commercial gaugers in the
United States, which may be used to perform tests to establish the
quantities of imported merchandise;
(2) Impose reasonable charges for such accreditations/approvals and
periodic reaccreditations/reapprovals; and
(3) Establish the conditions regarding the suspension and
revocation of such accreditations and approvals, which may include the
imposition of monetary penalties not to exceed $100,000, in addition to
penalties for any loss of revenue, in appropriate cases.
Regarding the testing/gauging aspects of commercial laboratories/
gaugers, new paragraph (b) further provides that:
(1) In the absence of Customs testing, Customs shall accept
analysis and quantity results from Customs-accredited laboratories and
Customs-approved gaugers; however, this circumstance does not limit or
otherwise preclude Customs or any other Federal agency from
independently testing, analyzing, or quantifying any sample or
merchandise;
(2) Testing procedures and methodologies will be made available
upon request to any person, except when they are proprietary to the
holder of a copyright or patent or developed by Customs for enforcement
purposes; information resulting from any Customs testing will be made
available to the importer of record and any agents thereof, except when
the information meets the above specified exclusions from disclosure;
and
(3) Laboratories/gaugers may seek judicial review of any final
Customs decision that adversely affects their accreditation/approval,
i.e., denial, suspension, or revocation, or that
[[Page 31386]]
imposes a monetary penalty, by commencing an action within 60 days of
such decision in the Court of International Trade.
New paragraph (b) also provides that commercial laboratories/
gaugers already accredited/approved under current Customs regulations
(see, 19 CFR 151.13) will not be required to reapply, but will be
subject to reaccreditation/ reapproval procedures and requirements.
Until the time for reaccreditation/reapproval, those commercial
laboratories/gaugers already accredited/approved may conduct only those
tests they were originally accredited/approved to perform.
A. Proposed Amendments Concerning Accrediting Commercial Laboratories
Heretofore, Customs accredited commercial laboratories to perform
selected tests on certain imported merchandise entered under chapters
27 (pertaining to mineral fuels, mineral oils and products of their
distillation; bituminous substances; and mineral waxes) and 29
(pertaining to organic chemicals) of the Harmonized Tariff Schedule of
the United States (HTSUS). The proposed amendments will expand the
scope of accreditation to allow laboratories to perform the majority of
tests vested in, or delegated to, the Customs Service; accreditation
will extend to the performance of functions for determining the
admissibility, quantity, composition, or characteristics of imported
merchandise. Accordingly, more importers may now choose, at their
expense, to have merchandise tested by Customs-accredited laboratories
whose test results will be accepted by Customs, if the importer
certifies that the sample tested was taken from the merchandise in the
entry. This could result in the earlier availability of test results
and should assist in the proper classification and entry of imported
merchandise.
The proposed regulations do not preclude Customs from testing
merchandise from a shipment which has already been tested by an
accredited laboratory at the importer's expense. Occasionally, Customs
may request sample splits (discussed below) retained by accredited
laboratories to test. In cases where merchandise has been analyzed by
both Customs and an accredited laboratory, Customs actions will be
based upon the analysis provided by Customs, unless other action is
indicated by the Director, Laboratories & Scientific Services
(Director).
Merchandise samples tested by accredited laboratories will be from
an importer's actual importations. Customs will release to the importer
a representative sample of the merchandise, which will be taken and
split into two essentially equal parts under Customs supervision at the
port of entry. Each part will be of sufficient size so that complete
testing for Customs purposes can be performed. The accredited
laboratory will test one part and retain the second sample and any
remnants from the testing, under proper storage conditions, for a
period of one year from the date of the laboratory's final analysis
report, unless other instructions are issued in writing by Customs. At
the end of the one-year retention time period the accredited laboratory
may dispose of the retained samples and sample remnants in a manner
consistent with federal, state, and local statutes; perishable samples
and sample remnants may be disposed of more expeditiously, if done in
accordance with acceptable laboratory procedures.
Commercial laboratories will be accredited to perform accepted
industry and Customs-specified tests on merchandise by commodity groups
that parallel the chapters and subheadings contained in the HTSUS.
These commodity groups are set forth in the proposed rule. Laboratories
may be accredited to perform testing in more than one of these
commodity groups. Further, because certain tests require expensive,
highly-specialized equipment or narrow technical expertise, and because
any given commodity group may involve many different chemical,
physical, or mechanical tests, Customs will consider, upon application,
granting accreditation for subgroups of tests within a commodity group.
Customs may expand the list of commodity groups for accreditation.
While Customs recognizes that many laboratory-accreditation systems
perform accreditation by fields of testing, such as chemical,
biological, mechanical, etc., Customs is not proposing to adopt this
method of accreditation. Instead, Customs proposes to perform
accreditation by commodity groups and subgroups because of Customs
technical requirements and because many commodities require testing in
more than one traditional field. Accordingly, laboratories seeking
Customs accreditation should become aware of Customs testing
requirements and seek accreditation in the multiple fields required to
test a particular commodity for Customs purposes. For example, a
metals-testing laboratory, in order to obtain Customs accreditation,
will need to have the ability to perform both chemical and mechanical
testing.
Specific testing methods for accreditation will be designated in
Commodity Group Brochures available from Customs to ensure that the
importer-client is aware of the appropriate test procedures for Customs
purposes. Some of these testing methods may reference general industry
standards, published by such organizations as the American Society for
Testing and Materials (ASTM) and the American Petroleum Institute
(API). It is recognized that different test methods may produce
different results, and it is imperative for this program that Customs
laboratories and Customs-accredited laboratories utilize the same test
methods.
To become a Customs-accredited laboratory, individuals or
commercial organizations must submit a letter of application to Customs
requesting accreditation to perform testing for specific commodity
groups, e.g., textiles or metals. The technical and operational
requirements for accreditation include having an appropriate facility
properly equipped to perform the designated tests and staff capable of
performing these tests. In addition to reviewing an applicant's overall
physical plant and management system, specific review and testing will
be conducted for each commodity group in which accreditation is sought.
Customs evaluation of an applicant's professional abilities will be in
accordance with the general criteria contained in ASTM E548: Standard
Guide for General Criteria Used for Evaluating Laboratory Competence.
Customs determination of an applicant's overall competence,
independence, and character will be based on the information contained
in the application submitted by the Laboratory and by conducting on-
site inspections and background investigations.
Applicants will be required to retain certain records so that
Customs can evaluate and verify all Customs-related work performed. The
normal record-retention period under the Customs Regulations is five
years (see, present Sec. 151.13(i)). However, should litigation arise
within the five-year record-retention-period of time that involves
certain laboratory records, those records may be required by Customs to
be maintained for a longer period of time. Should laboratory operations
cease, the laboratory shall inform Customs where the records will be
located. Failure to properly safeguard or account for analysis records
and laboratory testing/gauger measurement results will make the
accredited laboratory/approved
[[Page 31387]]
gauger subject to liquidated damages in the amount of the bond
(discussed below) or, in the event of bankruptcy, render the surety
liable for such damages.
Further, applicants will be required to obtain a bond executed in
accordance with part 113 of the Customs Regulations (19 CFR part 113).
The limits of liability on the bond will be established by the Customs
port nearest to the applicant's main office in consultation with the
Director.
Following Customs evaluation of a laboratory's overall competence
to become an accredited laboratory, Customs will notify the laboratory
in writing of its approval/nonselection; in the case of nonselection,
specific reasons will be given. Laboratories receiving an adverse
accreditation determination, and wishing to appeal the decision must
file an appeal within 30 days to the Director. Within 30 days of
receipt of the appeal, the Director will make a determination and
notify the laboratory in writing. If the Director reaffirms the
nonselection, again citing specific reasons, the applicant may then
choose to either submit a new application to the Director after waiting
90 days from the date of the Director's last decision; or commence an
action in the Court of International Trade within 60 days after
issuance of Customs decision or order.
Once accredited, laboratories may apply to expand their
accreditation at any time. Extensions of accreditation may be requested
to add a new site and/or to increase the number of accredited commodity
groups or subgroups at a previously accredited site. The procedure for
extensions of accreditation is essentially the same as that for
accreditation; certain initial processing steps, e.g., background
investigations and review of educational credentials, however, may not
need to be repeated. The reaccreditation fee will be adjusted
accordingly. Customs-accredited laboratories must undergo
reaccreditation every three years. Regarding adverse reaccreditation
determinations and any suspension/revocation/penalty decisions
(discussed below), the appeal procedures discussed above will apply.
Once accredited, a laboratory must maintain its accreditation
credentials by maintaining its overall physical plant and management
system, as well as by remaining proficient at performing approved
methods of analysis. In particular, accredited laboratories will be
required to perform periodic analyses of check samples and to submit
the results to Customs. Check samples are samples which have been
distributed by Customs to test proficiency in a certain area of
accreditation. The results must demonstrate that the laboratory has the
continuing ability to produce a work product that assists in the proper
classification and entry of imported merchandise.
In addition to establishing the requirements and procedures for
laboratories to receive and maintain accreditation, the proposed
regulations make provision for the suspension or revocation of such
accreditation, and the imposition of monetary penalties not to exceed $
100,000 in addition to the recovery of any loss of revenue that may
have occurred. Customs will seek to recover lost revenue from
accredited laboratories in cases where the laboratory intentionally
falsified the analysis in collusion with the importer. Customs may
assess monetary penalties on an accredited laboratory for failure to
adhere to any of the regulatory requirements imposed on accredited
commercial laboratories. Otherwise, Customs will not assess penalties
nor seek to recover lost revenue merely because of a good-faith
difference of professional opinion. Via a separate Federal Register
document, Customs will publish guidelines governing penalties and any
mitigating factors it will consider in imposing such penalties.
B. Proposed Amendments Concerning Approving Commercial Gaugers
The regulatory amendments proposed separately provide for the
approval of commercial gaugers and the acceptance of reports from
Customs-approved commercial gaugers. The commercial gauger-approval
amendments generally parallel those concerning laboratory
accreditation. Approval may extend to the performance of the functions
of gauging and measuring merchandise. Customs approval extends only to
the performance of such functions as are vested in, or delegated to,
Customs. The imported products for which gauging approval may be
obtained remains the same as those currently listed in the regulations.
But Customs may expand the list of commodity groups for approval.
C. Proposed Amendments Concerning Reimbursable Fees for Accreditation/
Approval and Periodic Reaccreditation/Reapproval
At the time of promulgating the Customs Modernization provisions of
the Act, Congress agreed that in order for Customs to expand the
Customs laboratory/gauger program the cost of the program should be
recaptured through the imposition of reasonable fees. A Customs task
force was formed to study the kind of fee structure that would be
necessary for Customs to recoup the costs associated with the
application process, travel costs, conducting ongoing background
investigations, and maintaining the program. The fee structure adopted
would have to cover the costs associated with implementing the expanded
program.
The regulatory amendments proposed provide for the imposition of
reasonable, i.e., reimbursable, charges associated with the work
required by Customs to accredit/approve and periodically reaccredit/
reapprove commercial laboratories/gaugers. These charges necessarily
will be variable, dependent on specific travel costs and the scope of
particular accreditation/approval applications, and are designed merely
to reimburse Customs for the actual costs of establishing and
regulating the laboratory/gauger program. Accordingly, the fee
structure is based on recovering those expenses which are variable,
directly associated with specific travel and the conduct of background
investigations, and those expenses which are fixed, based on
administrative estimates generally applicable to recovering the
technical and clerical support costs associated with the program.
Variable Costs
The variable portion of the accreditation-reaccreditation/approval-
reapproval fee schedules will be based on the actual costs incurred for
travel and associated with the scope of the background investigation.
These charges are estimated to be approximately $ 1,000 per visit and $
1,700 per background investigation. Whenever possible, Customs will
endeavor to bundle these variable costs so that where travel or
investigations costs apply to more than one laboratory or gauger, the
costs will be fairly apportioned between applicants.
In the event of a dispute concerning the amount of assessment for
travel costs and per diem charges relating to a scheduled inspection
visit, the laboratory/gauger concerned may file an appeal within 30
days of the assessment with the Director. The appeal letter must
specify which charges are disputed and give reasons for the dispute,
accompanied by supporting documentation where appropriate.
Fixed Costs
The fixed portion of the accreditation-reaccreditation/ approval-
reapproval fee schedules is based on administrative guidelines which
estimate program
[[Page 31388]]
administrative support costs that do not consider salary or related
costs. The primary accreditation/approval fee is meant to defray the
following costs:
(1) Preparation and distribution of methods manuals (for
laboratories only) and policies;
(2) Development and distribution of application packages;
(3) Set up and storage of company and/or branch files;
(4a) For laboratories, check samples and blind sample programs
(costs of collection, documentation, and mailing of samples; costs of
obtaining and storing samples; and costs of excess sample disposal);
(4b) For gaugers, development and application of proficiency
testing; and
(5) Office supplies used to administer the program, i.e., copier
costs, envelopes, etc.
Customs is authorized to charge 15% of program costs for
administrative overhead. See, 19 CFR 24.21. Based on the above
referenced administrative estimates of program-support costs, Customs
has determined that the following initial fee schedules for
accrediting/reaccrediting laboratories and approving/reapproving
gaugers are reasonable:
For Laboratories:
General Accreditation Fee.................................... $ 750
Additional Commodities Fee................................... 200
Laboratory Reaccreditation Fee............................... 375
Commodity Reaccreditation Fee................................ 150
For Gaugers:
General Approval Fee......................................... 400
Reapproval Fee............................................... 200
Laboratories/gaugers will be required to submit to the Director,
fifty percent of the applicable accreditation/ general approval fee
amount with their initial application for accreditation/approval, to
cover preliminary processing costs. This pre-payment is nonrefundable.
Before a laboratory/gauger will be designated by Customs as an
accredited/approved facility or can have its existing accreditation/
approval extended to cover additional commodity testing it must have
paid the applicable variable charges assessed and the balance of the
fixed fee associated with the action within 30 days of notification to
Customs, and have its laboratory/gauger bond on file. Then the
applicant will receive accreditation/approval documentation and a
notice of accreditation/approval or extension of existing
accreditation/approval will be published in the Federal Register and
Customs Bulletin.
Three years from the date of the initial accreditation/ approval,
Customs, Account Services Division, will bill the licensee for
reaccreditation/reapproval. There will be a 30-day billing period. If
payment is not received by Customs within the 30 day billing period,
revocation procedures will be initiated against all accreditations/
approvals granted the licensee.
Following the first year of operation, these initial fee schedules
may be revised to capture expenses not reimbursed to Customs. If the
fee schedules are revised, they will be published in the Federal
Register and the Customs Bulletin.
Already Accredited/Approved Laboratories/Gaugers
Laboratories accredited and gaugers approved under Customs
regulations prior to December 8, 1993, will not be required to apply
for initial accreditation/approval. Until the time for reaccreditation/
reapproval, however, those commercial laboratories/gaugers already
accredited/approved must, however, conduct their business in a manner
consistent with the administrative portions of the amended regulations,
and will be required to pay applicable reaccreditation/ reapproval fees
in the third year following the date these proposed regulations become
final.
Customs-accredited laboratories may make their accreditation known
to potential customers, but must accurately represent the tests for the
commodity group(s) for which accreditation has been obtained. Such
laboratories will be limited to the use of terms that appear in the
Notice of Accreditation they receive at the time they are accredited.
Parallel provisions will apply to Customs-approved gaugers.
The regulations currently implementing the examination of
merchandise provisions of 19 U.S.C. 1499 are found in part 151 of the
Customs Regulations (19 CFR part 151); Sec. 151.13 currently pertains
to both commercial laboratories and gaugers. Other Customs regulatory
provisions referencing part 151 are found in part 113 (19 CFR part
113). In this document Customs proposes to amend parts 113 and 151 of
the Customs Regulations, as discussed below, to implement the Customs
Modernization provisions pertaining to laboratory accreditations/gauger
approvals (19 U.S.C. 1499(b)), as discussed above.
In sum, it is proposed to revise two references in Sec. 113.67 of
the Customs Regulations (19 CFR 113.67) to carry the proper cross
references for the commercial laboratory or gauger provisions that are
redesignated as proposed in this document. In part 151, it is proposed
to provide for commercial laboratories and gaugers in separate
sections, so that each program can be more easily administered.
Accordingly, Sec. 151.12, currently reserved, will be amended to set
forth the accreditation requirements and procedures applicable to
commercial laboratories, and Sec. 151.13 will be amended to set forth
the approval requirements and procedures applicable to commercial
gaugers. Section 151.14 will be revised to remove reference to the
product characteristic table currently contained in Sec. 151.13(a)(2),
as these analysis methods will be contained in Commodity Group
Brochures.
Discussion of Proposed Changes to Regulations
It is proposed to utilize Sec. 151.12--currently reserved--to set
forth the provisions concerning the accreditation of commercial
laboratories. Section 151.12 will contain 11 paragraphs ((a) through
(k)) in a new question and answer format designed to facilitate an
understanding of how the new laboratory-accreditation program will
operate.
Proposed New Section 151.12
Paragraph (a) will contain the definitions of three terms or
phrases that will be used throughout the remaining paragraphs of
Sec. 151.12.
Paragraph (b) will pose the question ``What is a ``Customs-
accredited laboratory''?'' and describes the eligibility requirements
for commercial laboratories. The paragraph explains that those
laboratories that can demonstrate the capability to perform approved
methods of analysis used to determine the admissibility, quantity,
composition, or characteristics for certain tariff commodity groups can
be accredited by Customs to perform such tests for Customs purposes.
Paragraph (c) will pose the question ``What are the obligations of
a Customs-accredited laboratory?'' and delineates the six requirements
commercial laboratories must agree to before they can be accredited by
Customs.
Paragraph (d) will pose the question ``What are the commodity
groups for which accreditation may be sought?'' and contains the list
of commodity groups for which accreditation is available without
special permission from the Director. The list of commodity groups,
although similar to the provisions currently at Sec. 151.13(a)(2), is
expanded from two HTSUS chapters to include more than 40 HTSUS chapters
to reflect the scope of imported merchandise for which Customs is
responsible for testing.
Paragraph (e) will pose the question ``What are the approved
methods of
[[Page 31389]]
analysis?'' and provides that the approved methods of testing will be
published in Customs Commodity Group Brochures. The brochures will
specify the particular testing procedures required, unless written
permission from the Director is given to use an alternate method.
Procedures required by the Director may reference applicable general
industry standards, published by such organizations as the American
Society for Testing and Materials (ASTM) and the American Petroleum
Institute (API).
Paragraph (f) will pose the question ``How would a commercial
laboratory become a Customs-accredited laboratory?'' and explains the
essential requirements that prospective commercial laboratories must
respond to when applying for accreditation: (1) What the application
should contain, (2) where an application should be sent, and (3) how
the application will be reviewed. Further, this paragraph will describe
the criteria by which Customs will appraise each applicant's overall
physical plant and management system to ascertain the laboratory's
ability to manage and control the acquisition of technical data
associated with the accreditation sought and describe Customs
determination of an applicant's competence.
Paragraph (g) will pose the question ``How will an applicant be
notified concerning accreditation?'' and describes the procedures
Customs will follow when notifying applicants concerning the
disposition of their applicationor request for extension of
accreditation. The paragraph also describes the grounds for
nonselection, based on application, background investigation, or
capability matters, and the appeal procedures applicants must follow to
appeal adverse determinations concerning their application or request
for extension of accreditation.
Paragraph (h) will pose the question ``What are the accreditation/
reaccreditation fee requirements?'' and provides that any fixed fee
changes will be published in the Customs Bulletin and the Federal
Register; the fees for the first year are as discussed above.
Paragraph (i) will pose the question ``Can existing Customs-
accredited laboratories continue to operate?'' and provides that while
such laboratories, accredited prior to December 8, 1993, will retain
that accreditation, they must, however, conduct their business in a
manner consistent with the administrative portions of the new
regulations. This paragraph also provides that these existing
facilities will have their status reevaluated in the third year
following the effective date of this regulation. At the time of
reaccreditation, these laboratories must meet the requirements of the
regulations and pay the applicable fees; a failure to meet these
requirements will result in revocation or suspension of the
accreditation.
Paragraph (j) will pose the question ``How will Customs-accredited
laboratories operate?'' and describes (1) the testing of samples, (2)
the acceptance of reports by Customs, (3) recordkeeping requirements,
(4) limited representation of Customs accreditation, and (5) a
prohibition against accredited laboratories subcontracting Customs-
related analyses work. The testing of samples procedures provide that
importers may have samples of their merchandise tested by Customs-
accredited laboratories, and that the commercial laboratory designated
to test the sample is required to test only one part of the sample that
will be split into two parts under Customs supervision, reserving the
second part for a period of one year. Further, these provisions provide
that Customs and any other Federal agency reserve the right to
independently challenge the results of such reports.
Lastly, paragraph (k) will pose the question ``How can a laboratory
have its accreditation suspended or revoked or be required to pay a
monetary penalty?'' and explains (1) how the laboratory's accreditation
may be revoked or suspended or how the laboratory may be assessed a
monetary penalty in lieu of, or in addition to, suspension or
revocation of accreditation, (2) what are the grounds for suspension,
revocation, or assessment of a monetary penalty, (3) the notice
requirements Customs will follow, (4) the appeal rights of the
laboratory, (5) publication requirements, and (6) penalty provisions.
Regarding the appeal of a revocation, suspension, or penalty decision,
these provisions parallel the appeal provisions regarding nonselection.
Regarding the monetary penalty provisions, these can be in addition to
or in lieu of an order regarding suspension or revocation of
accreditation. No penalty may exceed $100,000.
Proposed Amended Section Sec. 151.13
It is further proposed to amend the provisions of Sec. 151.13,
which currently contains provisions pertaining to both commercial
gaugers and laboratories, to make its provisions exclusive to
commercial gaugers. Section 151.13 will contain 9 paragraphs ((a)
through (i)) in a similar question and answer format designed to
facilitate how the new gauger-approval program will operate.
Paragraph (a) will pose the question ``What is a `Customs-approved
gauger'?'' and describes the eligibility requirements for commercial
gaugers. The paragraph explains that those gaugers that can demonstrate
the capability to perform the approved gauging and measurement
procedures for certain tariff commodity groups listed in the section
can be approved by Customs to perform such procedures for Customs
purposes.
Paragraph (b) will pose the question ``What are the obligations of
a Customs-approved gauger?'' and delineates the six requirements
commercial gaugers must agree to before they can be approved by
Customs.
Paragraph (c) will pose the question ``What are the approved
gauging and measurement procedures?'' and provides that the approved
gauging and measurement procedures will be published in Customs
Commodity Group Brochures. The brochures will specify the particular
measurements and procedures required, unless written permission from
the Director is given to use an alternate method. Procedures required
by the Director may reference applicable general industry standards,
published by such organizations as the American Society for Testing and
Materials (ASTM) and the American Petroleum Institute (API).
Paragraph (d) will pose the question ``How would a commercial
gauger become a Customs-approved gauger?'' and explains the essential
requirements that prospective commercial gaugers must meet when
applying for approval. These provisions substantially mirror the
requirements discussed above for proposed Sec. 151.12(f).
Paragraph (e) will pose the question of ``How will an applicant be
notified concerning approval?'' and describes the procedures Customs
will follow when notifying applicants concerning the disposition of
their application or request for extension of approval. The paragraph
also describes the grounds for nonselection, based on application,
background investigation, or capability matters, and the appeal
procedures applicants must follow if their application or request is
disapproved. These provisions substantially mirror the requirements
discussed above for proposed Sec. 151.12(g).
Paragraph (f) will pose the question ``What are the approval/
reapproval fee requirements?'' and provides that any fixed fee changes
will be published in the Customs Bulletin and the Federal Register.
These provisions substantially mirror the requirements discussed above
for proposed Sec. 151.12(h).
[[Page 31390]]
Paragraph (g) will pose the question ``Can existing Customs-
approved gaugers continue to operate?'' and provides that while such
gaugers, approved prior to December 8, 1993, will retain that approval,
they must, however, conduct their business in a manner consistent with
the administrative portions of the new regulations. Other provisions in
this paragraph applicable to gaugers substantially mirror the
requirements discussed above for laboratories at proposed
Sec. 151.12(i).
Paragraph (h) will pose the question ``How will Customs-approved
gaugers operate?'' and describes (1) the acceptance of reports by
Customs, (2) recordkeeping requirements, (3) limited representation of
Customs approval requirements, and (4) a prohibition against approved
gaugers subcontracting Customs-related work. These provisions
substantially mirror the requirements discussed above for proposed
Sec. 151.12(j).
Paragraph (i) will pose the question ``How can a gauger have its
approval suspended or revoked or be required to pay a monetary
penalty?'' and explains (1) how the gauger's approval may be revoked or
suspended or how the gauger may be assessed a monetary penalty in lieu
of, or in addition to, suspension or revocation of approval, (2) what
are the grounds for suspension, revocation, or assessment of a monetary
penalty, (3) the notice requirements Customs will follow, (4) the
appeal rights of the gauger, (5) publication requirements, and (6)
penalty provisions. These provisions substantially mirror the
requirements discussed above for proposed Sec. 151.12(k).
Other Regulatory Amendments Proposed
Section 151.14 will be revised to remove a reference to the table
of product characteristics found at Sec. 151.13(a)(2) because product
characteristics will no longer be set forth in the regulations, but
will be contained in specific Commodity Group Brochures.
In Sec. 113.67, two references to current Sec. 151.13 will be
revised to correspond to the changes proposed to Secs. 151.13 and
151.14.
Comments
Before adopting these proposed regulations as a final rule,
consideration will be given to any written comments 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
of the Treasury Department Regulations (31 CFR 1.4), and Sec. 103.11(b)
of the Customs Regulations (19 CFR 103.11(b)), on regular business days
between the hours of 9 a.m. and 4:30 p.m. at the Regulations Branch,
Office of Regulations and Rulings, U.S. Customs Service, Suite 3000,
1300 Pennsylvania Avenue, NW., Washington, DC.
The Regulatory Flexibility Act, and Executive Order 12866
Because the number of accredited laboratories and approved gaugers
is expected to be small, and such accreditation and approval will
confer a benefit on the importing public, 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
adverse economic impact on a substantial number of small entities.
Accordingly, they are not subject to the regulatory analysis or other
requirements of 5 U.S.C. 603 and 604. This document does not meet the
criteria for a ``significant regulatory action'' as specified in E.O.
12866.
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has been submitted to the Office of Management and Budget
(OMB) for review in accordance with the Paperwork Reduction Act of 1995
(44 U.S.C. 3507). Comments on the collection of information should be
sent to OMB, Attention: Desk Officer for the Department of the
Treasury, Office of Information and Regulatory Affairs, Washington, DC
20503. A copy should also be sent to the Regulations Branch at the
address set forth previously. Comments should be submitted within the
time frame that comments are due regarding the substance of the
proposal.
Comments are invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the agency, including whether
the information shall have practical utility;
(b) The accuracy of the agency's estimate of the information
collection burden;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the information collection burden on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start up costs and costs of operations,
maintenance, and purchase of services to provide information.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid control number.
The collections of information in these proposed regulations are in
Secs. 151.12(e) and 151.13(c). The information requested is necessary
so that Customs can determine whether those laboratories/gaugers
seeking accreditation/approval to test/measure imported merchandise are
competent to receive or maintain such credentials. The likely
respondents are individuals and commercial organizations who either
analyze merchandise or measure, gauge, or sample merchandise.
Estimated total annual reporting and/or recordkeeping burden: 50
hours.
Estimated average annual burden per respondent/ recordkeeper: 5
hours.
Estimated number of respondents and/or recordkeepers: 10.
Estimated annual frequency of responses: 1.
Part 178 of the Customs Regulations (19 CFR part 178), which lists
the information collections contained in the regulations and control
numbers assigned by OMB, would be amended accordingly if this proposal
is adopted.
Drafting Information
The principal author of this document was Gregory R. Vilders,
Attorney, Regulations Branch, Office of Regulations and Rulings.
However, personnel from other offices participated in its development.
List of Subjects
19 CFR Part 113
Bonds, Customs duties and inspection, Exports, Freight, Imports,
Reporting and recordkeeping requirements.
19 CFR Part 151
Customs duties and inspection, Examination, Fees assessment,
Gaugers, Imports, Laboratories, Licensing, Penalties, Reporting and
recordkeeping requirements, Sampling and testing.
Amendments to the Regulations
For the reasons stated above, it is proposed to amend parts 113 and
151 of the Customs Regulations (19 CFR parts 113 and 151) as set forth
below:
PART 113--CUSTOMS BONDS
1. The general authority citation for part 113 continues to read as
follows:
Authority: 19 U.S.C. 66, 1623, 1624.
* * * * *
[[Page 31391]]
Sec. 113.67 [Amended]
2. In Sec. 113.67, paragraph (a)(1)(ii) is amended by removing the
words ``terms of the Commercial Gauger Agreement [see
Sec. 151.13(b)(9)] and by the''; and by removing the citations
``Secs. 151.13 and 151.14'' and adding, in their place, the citation
``Sec. 151.13(b)''.
Sec. 113.67 [Amended]
3. In Sec. 113.67, paragraph (b)(1)(ii) is amended by removing the
words ``terms of the Commercial Laboratory Agreement [see
Sec. 151.13(b)(9)] and by the''; and by removing the citation
``Sec. 151.13'' and adding, in its place, the citation
``Sec. 151.12(c)''.
PART 151--EXAMINATION, SAMPLING, AND TESTING OF MERCHANDISE
1. The general authority citation for part 151 continues to read as
follows:
Authority: 19 U.S.C. 66, 1202 (General Notes 20 and 21,
Harmonized Tariff Schedule of the United States (HTSUS)), 1624.
Subpart A also issued under 19 U.S.C. 1499.
* * * * *
2. In subpart A, Sec. 151.12 is added to read as follows:
Sec. 151.12 Accreditation of commercial laboratories.
This section sets forth the requirements for commercial
laboratories to obtain accreditation by Customs for the testing of
certain commodities, and explains the operation of such accredited
laboratories. This section also provides for the imposition of
accreditation and reaccreditation fees, sets forth grounds for the
suspension and revocation of accreditation, and provides for the
imposition of a monetary penalty for an accredited commercial
laboratory that fails to adhere to the provisions of this section.
(a) Definitions. For purposes of this section, the following words
and phrases have the meanings indicated:
Analysis record. An ``analysis record'' is a compilation of all
documents which have been generated during the course of analysis of a
particular sample which, under normal circumstances, culminates in the
issuance of a laboratory report. An analysis record may include, both
in paper and electronic-form, such documents as work sheets, notes,
associated spectra (both spectra of the actual product and any standard
spectra used for comparison), photographs and microphotographs, and the
laboratory report.
Check samples. ``Check samples'' are samples which have been
distributed by Customs to accredited laboratories to test their
proficiency in a certain area of accreditation.
Commodity Group Brochure. A ``Commodity Group Brochure'' is a
booklet which contains a listing of the laboratory methods and
application procedures which commercial laboratories are required to
have the capability to perform to qualify for Customs-accreditation in
a particular commodity group. The brochures will specify the particular
laboratory testing procedures required for particular commodity groups,
unless written permission from the Director is given to use an
alternate method. Procedures required by the Director may reference
applicable general industry testing standards, published by such
organizations as the American Society for Testing and Materials (ASTM)
and the American Petroleum Institute (API). Commodity Group Brochures
are available from the U.S. Customs Service, Attention: Director,
Laboratories & Scientific Services, Washington, D.C. 20229.
Director. In Secs. 151.12 and 151.13, references to the
``Director'' mean the Director, Laboratories & Scientific Services,
located in Washington, DC.
(b) What is a ``Customs-accredited laboratory''? ``Commercial
laboratories'' are individuals and commercial organizations that
analyze merchandise, i.e., determine its composition and/or
characteristics, through laboratory analysis. A ``Customs-accredited
laboratory'' is a commercial laboratory, within the United States, that
has demonstrated, to the satisfaction of the Director, pursuant to this
section, the capability to perform analysis of certain commodities to
determine elements relating to the admissibility, quantity,
composition, or characteristics of imported merchandise. Customs
accreditation extends only to the performance of such functions as are
vested in, or delegated to, Customs.
(c) What are the obligations of a Customs-accredited laboratory? A
commercial laboratory accredited by Customs agrees to the following
conditions and requirements:
(1) To comply with the requirements of part 151, Customs
Regulations (19 CFR part 151), and to conduct professional services in
conformance with approved standards and procedures, including
procedures which may be required by the Commissioner of Customs or the
Director;
(2) To have no interest in or other connection with any business or
other activity which might affect the unbiased performance of duties as
a Customs-accredited laboratory. It is understood that this does not
prohibit acceptance of the usual fees for professional services;
(3) To maintain the ability, i.e., the instrumentation, equipment,
qualified staff, facilities, etc., to perform the services for which
the laboratory is accredited, and allow the Director to evaluate that
ability on a periodic basis by such means as on-site inspections,
demonstrations of analysis procedures, reviews of submitted records,
and proficiency testing through check samples;
(4) To retain those laboratory records beyond the five-year record-
retention period specified by Customs as necessary to address matters
concerned in pending litigation, and, should laboratory operations or
accreditation cease, to contact Customs immediately regarding the
disposition of records retained;
(5) To promptly investigate any circumstance which might affect the
accuracy of work performed as an accredited laboratory, to correct the
situation immediately, and to notify both the port director and the
Director of such matters, their consequences, and any corrective action
taken or that needs to be taken; and
(6) To immediately notify both the port director and the Director
of any attempt to impede, influence, or coerce laboratory personnel in
the performance of their duties, or of any decision to terminate
laboratory operations or accredited status. Further, within 5 days of
any changes involving legal name, address, ownership, parent-subsidiary
relationships, bond, other offices or sites, managerial or professional
or executive staff, approved signatories, facilities, instruments, or
equipment, etc., to notify the Director by certified mail.
(d) What are the commodity groups for which accreditation may be
sought? (1) Commercial laboratories may apply for accreditation to
perform tests for any of the commodity groups listed in paragraph
(d)(2) of this section. Applicable test procedures are listed in
Commodity Group Brochures. Application may be made for accreditation in
more than one commodity group. At the discretion of the Director
accreditation may be granted for subgroups of tests within a commodity
group or for commodity groups not specifically enumerated. Once
accredited, a Customs-accredited laboratory may apply at any time to
expand its accreditation, to add new testing sites, or increase the
number of commodity groups or subgroups accredited.
(2) The commodity groups for which accreditation may be sought
without
[[Page 31392]]
special permission from the Director are:
(i) Dairy and Chocolate Products entered under Chapters 4, 18, and
21 of the Harmonized Tariff Schedule of the United States (HTSUS);
(ii) Food and Food Products entered under Chapters 7-12, 15, 16,
and 19-21, HTSUS;
(iii) Botanical Identification--materials and products entered
under Chapter 14 and Section IX, HTSUS;
(iv) Sugar, Sugar Syrups, and Confectionery products entered under
Chapter 17, HTSUS;
(v) Spirituous Beverages entered under Chapter 22, HTSUS;
(vi) Inorganic Materials, including Inorganic Compounds and Ores,
entered under Chapters 26, 28, 31, and 36-38, HTSUS;
(vii) Petroleum and Petroleum Products entered under Chapters 27
and 29, HTSUS;
(viii) Organic Materials, including Intermediates and
Pharmaceuticals, entered under Chapters 29, 30, 34, 35, and 38, HTSUS;
(ix) Building Stone, Ceramics, Glassware, and Other Mineral
Substances entered under Chapter 25 and Section XIII, HTSUS;
(x) Rubber, Plastics, Polymers, Pigments and Paints entered under
Chapter 32 and Section VII, HTSUS;
(xi) Essential Oils and Perfumes entered under Chapter 33, HTSUS;
(xii) Leather and Articles of Leather entered under Chapters 41 and
42, HTSUS;
(xiii) Wood and Articles of Wood entered under Chapters 44 and 46,
HTSUS;
(xiv) Paper and Paper Products entered under Section X, HTSUS;
(xv) Textiles and Related Products, including footwear and hats,
entered under Sections XI and XII, HTSUS; and,
(xvi) Metals and Alloys entered under Section XV, HTSUS.
(e) What are the approved methods of analysis? Customs-accredited
laboratories shall follow the general or specific testing methods set
forth in Commodity Group Brochures in the testing of designated
commodities, unless the Director gives written permission to use an
alternate method. Alternative methods will be considered and approved
on a case-by-case basis.
(f) How would a commercial laboratory become a Customs-accredited
laboratory?--(1) What should an application contain? An application for
Customs-accreditation shall contain the following information:
(i) The applicant's legal name and the addresses of its principal
place of business and any other facility out of which it will work;
(ii) Detailed statements of ownership and any partnerships, parent-
subsidiary relationships, or affiliations with any other domestic or
foreign organizations, including, but not limited to, importers, other
commercial laboratories, producers, refiners, Customs brokers, and
carriers;
(iii) A statement of financial condition;
(iv) If a corporation, a copy of the articles of incorporation and
the names of all officers and directors;
(v) The names, titles, and qualifications of each person who will
be authorized to sign or approve analysis reports on behalf of the
commercial laboratory;
(vi) A complete description of the applicant's facilities,
instruments, and equipment;
(vii) Express agreement that if notified by Customs of pending
accreditation to execute a bond in accordance with part 113, Customs
Regulations (19 CFR part 113), and submit it to the Customs port
nearest to the applicant's main office. (The limits of liability on the
bond will be established by the Customs port in consultation with the
Director. In order to retain Customs accreditation, the laboratory must
maintain an adequate bond, as determined by the port director);
(viii) A listing of each commodity group for which accreditation is
being sought and, if procedures are being submitted for approval which
are not specifically provided for in a Commodity Group Brochure, a
listing of such procedures;
(ix) A statement for each commodity group for which accreditation
is being sought, providing:
(A) That all tests on all commodities in a named group can be
performed, or
(B) That all tests on the commodities in a group except those
indicated can be performed; or,
(C) That the listed procedures which are not specifically provided
for in the Commodity Group Brochure are being submitted for approval
for use;
(x) Express agreement to be bound by the obligations contained in
paragraph (c) of this section; and,
(xi) A nonrefundable pre-payment equal to 50 percent of the fixed
accreditation fee, as published in the Federal Register and Customs
Bulletin, to cover preliminary processing costs. Further, the applicant
agrees to pay Customs within 30 days of notification the associated
charges assessed for accreditation, i.e., those charges for actual
travel and background investigation costs, and the balance of the fixed
accreditation fee.
(2) Where should an application be sent? A commercial laboratory
seeking accreditation or an extension of an existing accreditation
shall send a letter of application to the U.S. Customs Service,
Attention: Director, Laboratories & Scientific Services, Washington,
D.C. 20229.
(3) How will an application be reviewed?
(i) Physical plant and management system. The facility of the
applicant will be inspected to ensure that it is properly equipped to
perform the necessary tests and that staff personnel are capable of
performing required tests. Customs evaluation of an applicant's
professional abilities will be in accordance with the general criteria
contained in the American Society for Testing and Materials (ASTM)
E548: Standard Guide for General Criteria Used for Evaluating
Laboratory Competence. This review will ascertain the laboratory's
ability to manage and control the acquisition of technical data. The
review will be performed at the time of initial application and upon
reaccreditation at three-year intervals.
(ii) Ability to perform tests on specified commodity groups. For
each commodity group applied for, the applicant will undergo a separate
review and testing. The specific accreditation will be based on the
laboratory's ability to perform the tests required for that commodity
group. This will include the qualifications of the technical personnel
in this field and the instrument availability required by the test
methods. Maintenance of accreditation will be on-going and will require
the submission of test results on periodic check samples. The criteria
for acceptance will be based on the laboratory's ability to produce a
work product that assists in the proper classification and entry of
imported merchandise.
(iii) Determination of competence. The Director shall determine the
applicant's overall competence, independence, and character by
conducting on-site inspections, which will include demonstrations by
the applicant of analysis procedures; reviewing analysis records
submitted; conducting proficiency testing through check samples; and
conducting background investigations.
(iv) Evaluation of technical and operational requirements. Customs
shall determine whether the following technical and operational
requirements are met:
(A) Equipment. The laboratory shall be equipped with all of the
instruments and equipment needed to conduct the tests for which it is
accredited. The
[[Page 31393]]
laboratory shall ensure that all instruments and equipment are properly
calibrated, checked, and maintained.
(B) Facilities. The laboratory shall have, at a minimum, adequate
space, lighting, and environmental controls to ensure compliance with
the conditions prescribed for appropriate test procedures.
(C) Personnel. The laboratory shall be staffed with persons having
the necessary education, training, knowledge, and experience for their
assigned functions (e.g., maintaining equipment, calibrating
instruments, performing laboratory analyses, evaluating analytical
results, and signing analysis reports on behalf of the laboratory). In
general, each technical staff member should hold, at a minimum, a
bachelor's degree in science or have two years related experience in an
analytical laboratory.
(g) How will an applicant be notified concerning accreditation?--
(1) Notice of approval or nonselection. When Customs evaluation of a
laboratory's credentials is completed, the Director shall notify the
laboratory in writing of its preliminary approval or nonselection.
(Final approval determinations will not be made until the applicant has
satisfied all bond requirements and made payment on all assessed
charges and the balance of the applicable accreditations fee). Notices
of nonselection will state the reasons for the determination. All
notices of accreditation, reaccreditation, or extension of existing
accreditations will be published in the Federal Register and Customs
Bulletin.
(2) Grounds for nonselection. The Director may deny a laboratory's
application for any of the following reasons:
(i) The application contains false or misleading information
concerning a material fact;
(ii) The laboratory, a principal of the laboratory, or a person the
Director determines is exercising substantial ownership or control over
such laboratory or officer, has been indicted for, convicted of, or
committed acts which, under United States federal or state law, would
constitute any felony or misdemeanor involving misstatements, fraud,
theft-related offenses or any other violation which would reflect
adversely on the business integrity of the applicant;
(iii) A determination is made that the laboratory-applicant does
not possess the capability or have adequate facilities and management
to perform the approved methods of analysis for Customs purposes;
(iv) A determination is made that the laboratory has submitted
false reports or statements concerning the sampling of merchandise, or
that the applicant was subject to sanctions by state, local, or
professional administrative bodies for such conduct;
(v) Nonpayment of assessed charges and the balance of the fixed
accreditation fee; or
(vi) Failure to execute a bond in accordance with part 113 of this
chapter.
(3) Appeal of adverse determinations. Laboratories receiving an
adverse accreditation determination and wishing to appeal the
determination must file an appeal within 30 days to the Director.
Within 30 days of receipt of the appeal, the Director shall make a
final determination regarding the appeal and notify the laboratory in
writing. If the Director reaffirms the nonselection, again citing
specific reasons, then the applicant may choose to either:
(i) Submit a new application to the Director after waiting 90 days
from the date of the Director's last decision; or
(ii) File an action with the Court of International Trade, pursuant
to chapter 169 of title 28, United States Code, within 60 days after
the issuance of the Director's final decision.
(h) What are the accreditation/reaccreditation fee requirements?
(1) In general. A fixed fee, representing Customs administrative
overhead expense, will be assessed for each application for
accreditation or reaccreditation. In addition, associated assessments,
representing the actual costs associated with travel and per diem of
Customs employees related to verification of application criteria and
background investigations will be charged. The combination of the fixed
fee and associated assessments represent reimbursement to Customs for
costs related to accreditation and reaccreditation. The fixed fee will
be published in the Customs Bulletin and the Federal Register. Based on
a review of the actual costs associated with the program, the fixed fee
may be adjusted periodically; any changes will be published in the
Customs Bulletin and the Federal Register.
(i) Accreditation fees. A nonrefundable pre-payment equal to 50
percent of the fixed accreditation fee to cover preliminary processing
costs must accompany each application for accreditation. Before a
laboratory will be accredited, it must remit to Customs, Account
Services Division, within the 30 day billing period the associated
charges assessed for the accreditation and the balance of the fixed
accreditation fee.
(ii) Reaccreditation fees. Before a laboratory will be
reaccredited, it must submit to Customs, Account Services Division,
within the 30 day billing period the fixed reaccreditation fee.
(2) Disputes. In the event a laboratory disputes the charges
assessed for travel and per diem costs associated with scheduled
inspection visits, it may file an appeal within 30 days of the date of
the assessment with the Director. The appeal letter must specify which
charges are in dispute and provide such supporting documentation as may
be available for each allegation. The Director shall make findings of
fact concerning the merits of an appeal and communicate the agency
decision to the laboratory in writing within 30 days of the date of the
appeal.
(i) Can existing Customs-accredited laboratories continue to
operate? Commercial laboratories accredited by the Director prior to
December 8, 1993, will retain that accreditation under these
regulations provided they conduct their business in a manner consistent
with the administrative portions of this section. This paragraph does
not pertain to any laboratory which has had its accreditation suspended
or revoked. Laboratories which have had their accreditations continued
under this section will have their status reevaluated in the third year
following the effective date of this regulation. At the time of
reaccreditation, these laboratories must meet the requirements of this
section and remit to Customs, Account Services Division, within the 30
day billing period the fixed reaccreditation fee. Failure to meet these
requirements will result in revocation or suspension of the
accreditation.
(j) How will Customs-accredited laboratories operate?
(1)(i) Samples for testing. Upon request by the importer of record
of merchandise, the port director will release a representative sample
of the merchandise for testing by a Customs-accredited laboratory at
the expense of the importer. Under Customs supervision, the sample
shall be split into two essentially equal parts and given to the
Customs-accredited laboratory. One portion of the sample may be used by
the Customs-accredited laboratory for its testing. The other portion
shall be retained by the laboratory, under appropriate storage
conditions, for Customs use, as necessary, unless Customs requires
other specific procedures. Upon request, the sample portion reserved
for Customs purposes shall be surrendered to Customs. Samples reserved
for Customs and sample remnants from any testing shall be retained by
the accredited
[[Page 31394]]
laboratory for a period of one year from the date of the laboratory's
final analysis report, unless other instructions are issued in writing
by Customs. At the end of the one-year retention time period the
accredited laboratory may dispose of the retained samples and sample
remnants in a manner consistent with federal, state, and local
statutes; perishable samples and sample remnants may be disposed of
more expeditiously, if done in accordance with acceptable laboratory
procedures.
(2) Contents of reports. The testing results from a Customs-
accredited laboratory that are submitted by an importer of record with
respect to merchandise in an entry shall, in the absence of testing
conducted by Customs laboratories, be accepted by Customs provided that
the importer of record certifies that the sample tested was taken from
the merchandise in the entry and the report establishes elements
relating to the admissibility, quantity, composition, or
characteristics of the merchandise entered, as required by law. The
data must be obtained using methods approved by the Director. Nothing
in these regulations shall preclude Customs from sampling and testing
merchandise from a shipment which has been sampled and tested by a
Customs-accredited laboratory at the request of an importer. In cases
where a shipment has been analyzed by both Customs and a Customs-
accredited laboratory, all Customs actions will be based upon the
analysis provided by the Customs laboratory, unless the Director
advises otherwise. If a Customs laboratory performs a test of
merchandise, it shall release the results of its test to the importer
of record or its agent upon request unless it is proprietary to the
holder of a copyright or patent, or developed by Customs for
enforcement purposes.
(3) Recordkeeping requirements. Customs-accredited laboratories
shall maintain records of the type normally kept in the ordinary course
of business in accordance with the provisions of this chapter and any
other applicable provision of law, and make them available during
normal business hours for Customs inspection. In addition, these
laboratories shall maintain all records necessary to permit the
evaluation and verification of all Customs-related work, including, as
appropriate, those described below. All records shall be maintained for
five years, unless the laboratory is notified in writing by Customs
that a longer retention time is necessary for particular records.
Electronic data storage and transmission may be approved by Customs.
(i) Sample records. Records for each sample tested for Customs
purposes must be readily accessible and contain the following
information:
(A) A unique identifying number;
(B) The date when the sample was received or taken;
(C) The identity of the commodity (e.g., crude oil);
(D) The name of the client;
(E) The source of the sample (e.g., name of vessel, flight number
of airline, name of individual taking the sample); and,
(F) If available, the Customs entry date, entry number, and port of
entry and the names of the importer, exporter, manufacturer, and
country-of-origin.
(ii) Major equipment records. Records for each major piece of
equipment or instrument (including analytical balances) used in
Customs-related work must identify the name and type of instrument, the
manufacturer's name, the instrument's model and any serial numbers, and
the occurrence of all servicing performed on the equipment or
instrument, to include recalibration and any repair work, identifying
who performed the service and when.
(iii) Records of analytical procedures. The Customs-accredited
laboratory must maintain complete and up-to-date copies of all approved
analytical procedures, calibration methods, etc., and must document the
procedures each staff member is authorized to perform. These procedures
must be readily available to appropriate staff.
(iv) Laboratory analysis records. The Customs-accredited laboratory
must identify each analysis by sample record number (see paragraph
(j)(3)(i) of this section) and must maintain all information or data
(such as sample weights, temperatures, references to filed spectra,
etc.) associated with each Customs-related laboratory analysis. Each
analysis record must be dated and initialed or signed by the staff
member(s) who did the work.
(v) Laboratory analysis reports. Each laboratory analysis report
submitted to Customs must include:
(A) The name and address of the Customs-accredited laboratory;
(B) A description and identification of the sample, including its
unique identifying number;
(C) The designations of each analysis procedure used;
(D) The analysis report itself (i.e., the pertinent characteristics
of the sample);
(E) The date of the report; and
(F) The signature of the person accepting technical responsibility
for the analysis report (i.e., an approved signatory).
(4) Representation of Customs-accredited status. Commercial
laboratories accredited by Customs shall limit statements or wording
regarding their accreditation to an accurate description of the tests
for the commodity group(s) for which accreditation has been obtained.
Use of terms other than those appearing in the notice of approval (see
paragraph (f) of this section) is prohibited.
(5) Subcontracting prohibited. Customs-accredited laboratories
shall not subcontract Customs-related analysis work.
(k) How can a laboratory have its accreditation suspended or
revoked or be required to pay a monetary penalty?
(1) Grounds for suspension, revocation, or monetary penalty. (i)
General. A laboratory's accreditation may be revoked or suspended or a
laboratory may be assessed a monetary penalty at any time by the
Director.
(ii) Grounds for suspension, revocation, or assessment of a
monetary penalty. A laboratory's accreditation may be suspended or
revoked, or a monetary penalty may be assessed because:
(A) The selection was obtained through fraud or the misstatement of
a material fact by the laboratory;
(B) The laboratory, or other person the port director determines is
exercising substantial ownership or control over the laboratory
operation or corporate officer, is indicted for, convicted of, or has
committed acts which would constitute any felony or misdemeanor under
United States Federal or State law. In the absence of an indictment,
conviction, or other legal process, a port director must have probable
cause to believe the proscribed acts occurred;
(C) Staff laboratory personnel refuse or otherwise fail to follow
any proper order of a Customs officer or any Customs order, rule, or
regulation relative to continued licensing as a Customs-accredited
laboratory;
(D) The laboratory fails to operate in accordance with the
obligations of paragraph (c) of this section;
(E) A determination is made that the laboratory is no longer
technically or operationally proficient at performing the approved
methods of analysis for Customs purposes;
(F) The laboratory fails to remit to Customs, the Accounts Services
Division, within the 30 day billing period the associated charges
assessed for the accreditation and the balance of the fixed
accreditation fee;
(G) The laboratory fails to maintain its bond; or
(H) The laboratory fails to remit to Customs, the Accounts Services
Division, within the 30 day billing period the fixed reaccreditation
fee.
[[Page 31395]]
(iii) Assessment of monetary penalties. The assessment of a
monetary penalty under this section, may be in lieu of, or in addition
to, a suspension or revocation of accreditation under this section. The
monetary penalty may not exceed $100,000 per violation and shall be
assessed and mitigated pursuant to published guidelines. Any monetary
penalty under this section can be in addition to the recovery of any
loss of revenue or liquidated damages assessed under the laboratory's
Customs bond.
(2) Notice. When a decision to suspend, revoke, and/or to assess a
monetary penalty is contemplated, Customs shall immediately notify the
laboratory in writing of the proposed action. The notice of proposed
action shall contain a description of the grounds for the proposed
revocation, suspension, and/or assessment of a monetary penalty action,
and advise the laboratory of the procedures for filing appeals.
(3) Appeal procedures. A Customs-accredited laboratory receiving a
notice of suspension or revocation of accreditation, and/or of
assessment of a monetary penalty, and wishing to appeal the decision
shall follow the appeal procedures set forth in paragraph (g)(3) of
this section. An appeal to the Director may contain an acceptance of
responsibility and may also provide extenuating circumstances and/or
rebuttal evidence. Further, the appeal may ask for a meeting with the
Director or his designee to discuss proposed actions. Should the
laboratory fail to file an appeal within the required time period, the
Director shall take actions to implement the proposed suspension or
revocation and/or to collect the monetary penalty assessed in the
notice.
(4) Publication. All final notices of suspension or revocation of a
laboratory's accreditation and/or assessment of a monetary penalty will
be published in the Federal Register and Customs Bulletin, giving the
effective date, duration, and scope of each action.
3. Section 151.13 is revised to read as follows:
Sec. 151.13 Approval of commercial gaugers.
This section sets forth the requirements for commercial gaugers to
obtain approval by Customs for the measuring of certain merchandise,
and explains the operation of such approved gaugers. This section also
provides for the imposition of approval and reapproval fees, sets forth
grounds for the suspension or revocation of approval, and provides for
the imposition of a monetary penalty for an approved commercial gauger
that fails to adhere to the provisions of this section.
(a) What is a ``Customs-approved gauger''? ``Commercial gaugers''
are individuals and commercial organizations that measure, gauge, or
sample merchandise (usually merchandise in bulk form) and who deal
mainly with petroleum, petroleum products, and bulk chemicals. A
``Customs-approved gauger'' is a commercial concern, within the United
States, that has demonstrated, to the satisfaction of the Director
(defined at Sec. 151.12(a)), pursuant to this section the capability to
perform certain gauging and measurement procedures for certain
commodities. Customs approval extends only to the performance of such
functions as are vested in, or delegated to, Customs.
(b) What are the obligations of a Customs-approved gauger? A
commercial gauger approved by Customs agrees to the following
conditions and requirements:
(1) To comply with the requirements of part 151, Customs
Regulations (19 CFR part 151), and to conduct professional services in
conformance with approved standards and procedures, including
procedures which may be required by the Commissioner of Customs or the
Director;
(2) To have no interest in or other connection with any business or
other activity which might affect the unbiased performance of duties as
a Customs-approved gauger. It is understood that this does not prohibit
acceptance of the usual fees for professional services;
(3) To maintain the ability, i.e., the instrumentation, equipment,
qualified staff, facilities, etc., to perform the services for which
the gauger is approved, and allow the Director to evaluate that ability
on a periodic basis by such means as on-site inspections,
demonstrations of gauging procedures, and reviews of submitted records;
(4) To retain those gauger records beyond the five-year record-
retention period specified by Customs as necessary to address matters
concerned in pending litigation, and, should laboratory operations or
accreditation cease, to contact Customs immediately regarding the
disposition of records retained;
(5) To promptly investigate any circumstance which might affect the
accuracy of work performed as an approved gauger, to correct the
situation immediately, and to notify both the port director and the
Director of such matters, their consequences, and any corrective action
taken or that needs to be taken; and
(6) To immediately notify both the port director and the Director
of any attempt to impede, influence, or coerce gauger personnel in the
performance of their duties, or of any decision to terminate laboratory
operations or accredited status. Further, within 5 days of any changes
involving legal name, address, ownership, parent-subsidiary
relationships, bond, other offices or sites, managerial or professional
or executive staff, approved signatories, facilities, instruments, or
equipment, etc., to notify the Director by certified mail.
(c) What are the approved gauging and measurement procedures?
Customs-accredited gaugers shall follow the general or specific gauging
and measurement procedures set forth in Commodity Group Brochures (see
definition at Sec. 151.12(a)) in the testing of designated commodities,
unless the Director gives written permission to use an alternate
method. Alternative methods will be considered and approved on a case-
by-case basis.
(d) How would a commercial gauger become a Customs-approved gauger?
(1) What should an application contain? An application for approval
shall contain the following information:
(i) The applicant's legal name and the addresses of its principal
place of business and any other facility out of which it will work;
(ii) Detailed statements of ownership and any partnerships, parent-
subsidiary relationships, or affiliations with any other domestic or
foreign organizations, including, but not limited to, importers;
producers; refiners; Customs brokers; or carriers;
(iii) A statement of financial condition;
(iv) If a corporation, a copy of the articles of incorporation and
the names of all officers and directors;
(v) The names, titles, and qualifications of each person who will
be authorized to sign or approve gauging reports on behalf of the
commercial gauger;
(vi) A complete description of the applicant's facilities,
instruments, and equipment;
(vii) Express agreement that if notified by Customs of pending
accreditation to execute a bond in accordance with part 113, Customs
Regulations (19 CFR part 113), and submit it to the Customs port
nearest to the applicant's main office. (The limits of liability on the
bond will be established by the Customs port in consultation with the
Director. In order to retain Customs approval, the gauger must maintain
an adequate bond, as determined by the port director);
[[Page 31396]]
(viii) Express agreement to be bound by the obligations contained
in paragraph (b) of this section; and,
(ix) A nonrefundable pre-payment equal to 50 percent of the fixed
approval fee, as published in the Federal Register and Customs
Bulletin, to cover preliminary processing costs. Further, the applicant
agrees to pay to Customs within 30 days of notification the associated
charges assessed for approval, i.e., those charges for actual travel
and background investigation costs, and the balance of the fixed
approval fee.
(2) Where should an application be sent? A commercial gauger
seeking approval or an extension of an existing approval shall send a
letter of application to the U.S. Customs Service, Attention: Director,
Laboratories & Scientific Services, Washington, DC 20229.
(3) How will an application be reviewed?
(i) Determination of competence. The Director shall determine the
applicant's overall competence, independence, and character by
conducting on-site inspections, which will include demonstrations by
the applicant of gauging procedures; reviewing records submitted; and
conducting background investigations.
(ii) Evaluation of technical and operational requirements. Customs
shall determine whether the following technical and operational
requirements are met:
(A) Equipment. The facility shall be equipped with all of the
instruments and equipment needed to conduct approved services. The
gauger shall ensure that all instruments and equipment are properly
calibrated, checked, and maintained.
(B) Facilities. The facility shall have, at a minimum, adequate
space, lighting, and environmental controls to ensure compliance with
the conditions prescribed for appropriate measurements.
(C) Personnel. The facility shall be staffed with persons having
the necessary education, training, knowledge, and experience for their
assigned functions (e.g., maintaining equipment, calibrating
instruments, performing gauging services, evaluating gauging results,
and signing gauging reports on behalf of the commercial gauger). In
general, each technical staff member should have, at a minimum, six (6)
months training and experience in gauging.
(e) How will an applicant be notified concerning approval?
(1) Notice of approval or nonselection. When Customs evaluation of
a gauger's credentials is completed, the Director shall notify the
gauger in writing of its approval or nonselection. (Final approval
decisions will not be made until the applicant has satisfied all bond
requirements and made payment on all assessed charges and the balance
of the application fee.) Notices of nonselection will state the reasons
for the decision. All notices of approval, reapproval, or extension of
a gauger's existing Customs-approval will be published in the Federal
Register and Customs Bulletin.
(2) Grounds for nonselection. The Director may deny a gauger's
application for any of the following reasons:
(i) The application contains false or misleading information
concerning a material fact;
(ii) The gauger has been indicted for, convicted of, or committed
acts which under United States federal or state law would constitute
any felony or misdemeanor involving misstatements, fraud, theft-related
offenses or any other violation which would reflect adversely on the
business integrity of the applicant;
(iii) A determination is made that the gauger-applicant does not
possess the capability or have adequate facilities and management to
perform the approved methods of measurement for Customs purposes;
(iv) A determination is made that the gauger has submitted false
reports or statements concerning the measurement of merchandise, or
that the applicant was subject to sanctions by state, local, or
professional administrative bodies for such conduct;
(v) Nonpayment of assessed charges and the balance of the fixed
approval fee; or
(vi) Failure to execute a bond in accordance with part 113 of this
chapter.
(3) Appeal of adverse determinations. Gaugers receiving an adverse
approval determination and wishing to appeal the determination must
file an appeal within 30 days to the Director. Within 30 days of
receipt of the appeal, the Director shall make a final determination
regarding the appeal and notify the gauger in writing. If the Director
reaffirms the nonselection, again citing specific reasons, then the
applicant may choose to either:
(i) Submit a new application to the Director after waiting 90 days
from the date of the Director's last decision; or
(ii) File an action with the Court of International Trade, pursuant
to chapter 169 of title 28, United States Code, within 60 days after
the issuance of the Director's final decision.
(f) What are the approval/reapproval fee requirements?
(1) In general. A fixed fee, representing Customs administrative
overhead expense, will be assessed for each application for approval or
reapproval. In addition, associated assessments, representing the
actual costs associated with travel and per diem of Customs employees
related to verification of application criteria and background
investigations will be charged. The combination of the fixed fee and
associated assessments represent reimbursement to Customs for costs
related to approval and reapproval. The fixed fee will be published in
the Customs Bulletin and the Federal Register. Based on a review of the
actual costs associated with the program, the fixed fee may be adjusted
periodically; any changes will be published in the Customs Bulletin and
the Federal Register.
(i) Approval fees. A nonrefundable pre-payment equal to 50 percent
of the fixed approval fee to cover preliminary processing costs must
accompany each application for approval. Before a gauger will be
approved, it must submit to Customs, Account Services Division, within
the 30 day billing period the associated charges assessed for the
approval and the balance of the fixed approval fee.
(ii) Reapproval fees. Before a gauger will be reapproved, it must
submit to Customs, Account Services Division, within the 30 day billing
period the fixed reapproval fee.
(2) Disputes. In the event a gauger disputes the charges assessed
for travel and per diem costs associated with scheduled inspection
visits, it may file an appeal within 30 days of the date of the
assessment with the Director. The appeal letter must specify which
charges are in dispute and provide such supporting documentation as may
be available for each allegation. The Director shall make findings of
fact concerning the merits of an appeal and communicate the agency
decision to the gauger in writing within 30 days of the date of the
appeal.
(g) Can existing Customs-approved gaugers continue to operate?
Commercial gaugers approved by the Director prior to December 8, 1993,
will retain approval under these regulations provided that they conduct
their business in a manner consistent with the administrative portions
of this section. This paragraph does not pertain to any gauger which
has had its approval suspended or revoked. Gaugers which have had their
approvals continued under this section will have their status
reevaluated in the third year
[[Page 31397]]
following the effective date of this regulation. At the time of
reapproval, these gaugers must meet the requirements of this section
and remit to Customs, Account Services Division, within the 30 day
billing period the fixed reapproval fee. Failure to meet these
requirements will result in revocation or suspension of the approval.
(h) How will Customs-approved gaugers operate?
(1)(i) Contents of reports. The measurement results from a Customs-
approved gauger that are submitted by an importer of record with
respect to merchandise in an entry shall, in the absence of measurement
conducted by Customs laboratories, be accepted by Customs, provided
that the importer of record certifies that the measurement was of the
merchandise in the entry. All reports shall measure net landed
quantity, except in the case of crude petroleum of Heading 2709,
Harmonized Tariff Schedule of the United States (HTSUS), which may be
measured by gross quantity. Reports shall be given in the appropriate
HTSUS units of quantity, e.g., liters, barrels, or kilograms.
----------------------------------------------------------------------------------------------------------------
HTSUS Product Unit of quantity
----------------------------------------------------------------------------------------------------------------
Headings 1501-1515................... Animal and vegetable oils.... Kilogram.
Subheadings 2707.10-2707.30 and Benzene, toluene and xylene.. Liter.
2902.20-2902.44.
Heading 2709......................... Crude Petroleum.............. Barrel.
Heading 2710 (various subheadings)... Fuel oils, motor oils, Barrel
kerosene, naphtha,
lubricating oils.
Chapter 29 (various subheadings)..... Organic compounds in bulk and Kilogram, liter, etc.
liquid form.
----------------------------------------------------------------------------------------------------------------
(ii) Nothing in these regulations shall preclude Customs from
gauging a shipment which has been gauged by a Customs-approved gauger
at the request of an importer. In cases where a shipment has been
gauged by both Customs and a Customs-approved gauger, all Customs
actions will be based upon the gauging reports issued by Customs,
unless the Director advises other actions. If Customs measures
merchandise, it shall release the reports of its measurements to the
importer of record or its agent upon request unless it is proprietary
to the holder of a copyright or patent, or developed by Customs for
enforcement purposes.
(2) Recordkeeping requirements. Customs-approved gaugers shall
maintain records of the type normally kept in the ordinary course of
business in accordance with the provisions of this chapter and any
other applicable provisions of law, and make them available during
normal business hours for Customs inspection. In addition, these
gaugers shall maintain all records necessary to permit the evaluation
and verification of all Customs-related work, including, as
appropriate, those described below. All records shall be maintained for
five years, unless the gauger is notified in writing by Customs that a
longer retention time is necessary for particular records. Electronic
data storage and transmission may be approved by Customs.
(i) Transaction records. Records for each Customs-related
transaction must be readily accessible and have the following:
(A) A unique identifying number;
(B) The date and location where the transaction occurred;
(C) The identity of the product (e.g. crude oil);
(D) The name of the client;
(E) The source of the product (e.g., name of vessel, flight number
of airline); and
(F) If available, the Customs entry date, entry number, and port of
entry and the names of the importer, exporter, manufacturer, and
country-of-origin.
(ii) Major equipment records. Records for each major piece of
equipment used in Customs-related work must identify the name and type
of instrument, the manufacturer's name, the instrument's model and any
serial numbers, and the occurrence of all servicing performed on the
equipment or instrument, to include recalibration and any repair work,
identifying who performed the service and when.
(iii) Records of gauging procedures. The Customs-approved gauger
must maintain complete and up-to-date copies of all approved gauging
procedures, calibration methods, etc., and must document the procedures
that each staff member is authorized to perform. These procedures must
be readily available to appropriate staff.
(iv) Gauging records. The Customs-approved gauger must identify
each transaction by transaction record number (see paragraph (h)(2)(i)
of this section) and must maintain all information or data (such as
temperatures, etc.) associated with each Customs-related gauging
transaction. Each gauging record (i.e., the complete file of all data
for each separate transaction) must be dated and initialed or signed by
the staff member(s) who did the work.
(v) Gauging reports. Each gauging report submitted to Customs must
include:
(A) The name and address of the Customs-approved gauger;
(B) A description and identification of the transaction, including
its unique identifying number;
(C) The designations of each gauging procedure used;
(D) The gauging report itself (i.e., the quantity of the
merchandise);
(E) The date of the report; and,
(F) The signature of the person accepting technical responsibility
for the gauging report (i.e., an approved signatory).
(3) Representation of Customs-approved status. Commercial gaugers
approved by Customs shall limit statements or wording regarding their
approval to an accurate description of the commodities for which
approval has been obtained.
(4) Subcontracting prohibited. Customs-approved gaugers shall not
subcontract Customs-related work.
(i) How can a gauger have its approval suspended or revoked or be
required to pay a monetary penalty?
(1) Grounds for suspension, revocation, or assessment of a monetary
penalty.--(i) General. A gauger's approval may be revoked or suspended
or a gauger may be assessed a monetary penalty at any time by the
Director.
(ii) Grounds for suspension, revocation, or monetary penalty. A
gauger's accreditation may be suspended or revoked, or a monetary
penalty may be assessed because:
(A) The selection was obtained through fraud or the misstatement of
a material fact by the gauger;
(B) The gauger, or other person the port director determines is
exercising substantial ownership or control over the gauger operation
or corporate officer, is indicted for, convicted of, or has committed
acts which would constitute any felony or misdemeanor under United
States Federal or State law. In the absence of an indictment,
conviction, or other legal process, a port director must have probable
cause to believe the proscribed acts occurred;
[[Page 31398]]
(C) Staff gauger personnel refuse or otherwise fail to follow any
proper order of a Customs officer or any Customs order, rule, or
regulation relative to continued licensing as a Customs-accredited
gauger;
(D) The gauger fails to operate in accordance with the obligations
of paragraph (b) of this section;
(E) A determination is made that the gauger is no longer
technically or operationally proficient at performing the approved
methods of measurement for Customs purposes;
(F) The gauger fails to remit to Customs, the Accounts Services
Division, within the 30 day billing period the associated charges
assessed for the approval and the balance of the fixed approval fee;
(G) The gauger fails to maintain its bond; or
(H) The gauger fails to remit to Customs, the Accounts Services
Division, within the 30 day billing period the fixed reapproval fee.
(iii) Assessment of monetary penalties. The assessment of a
monetary penalty under this section, may be in lieu of, or in addition
to, a suspension or revocation of accreditation under this section. The
monetary penalty may not exceed $100,000 per violation and shall be
assessed and mitigated pursuant to published guidelines. Any monetary
penalty under this section can be in addition to the recovery of any
loss of revenue or liquidated damages assessed under the gauger's
Customs bond.
(2) Notice. When a decision to suspend, revoke, and/or to assess a
monetary penalty is contemplated, Customs shall immediately notify the
gauger in writing of the proposed action. The notice of proposed action
shall contain a description of the grounds for the proposed revocation,
suspension, and/or assessment of a monetary penalty action, and advise
the gauger of the procedures for filing appeals.
(3) Appeal procedures. A Customs-approved gauger receiving a notice
of suspension or revocation of approval, and/or of assessment of a
monetary penalty, and wishing to appeal the decision, shall follow the
appeal procedures set forth in paragraph (e)(3) of this section. An
appeal to the Director may contain an acceptance of responsibility and
may also provide extenuating circumstances and/or rebuttal evidence.
Further, the appeal may ask for a meeting with the Director or his
designee to discuss proposed actions. Should the gauger fail to file an
appeal within the required time period, the Director shall take actions
to implement the proposed suspension or revocation and/or to collect
the monetary penalty assessed in the notice.
(4) Publication. All final notices of suspension or revocation of a
commercial gauger's approval, and/or assessment of a monetary penalty
will be published in the Federal Register and Customs Bulletin, giving
the effective date, duration, and scope of each action.
4. In Sec. 151.14, the first sentence is amended by removing the
words `` `sediment and water' characteristic as set out in
Sec. 151.13(a)(2)'' and adding, in its place, the words ``analysis
method for crude petroleum contained in ASTM D96 or other approved
analysis method''.
Approved: May 6, 1998.
Samuel H. Banks,
Acting Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 98-15336 Filed 6-8-98; 8:45 am]
BILLING CODE 4820-02-P