[Federal Register Volume 63, Number 248 (Monday, December 28, 1998)]
[Rules and Regulations]
[Pages 71371-71372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34334]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 24

[T.D. 99-1]
RIN 1515-AC39


Exemption of Israeli Products from Certain Customs User Fees

AGENCY: Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations to reflect that 
products of Israel are no longer subject to the merchandise processing 
fees assessed on imported goods under 19 U.S.C. 58c(a)(9) and (10). 
This amendment results from publication of a determination by the 
United States Trade Representative under section 112 of the Customs and 
Trade Act of 1990 that the Government of Israel has provided reciprocal 
concessions. The exemption applies to Israeli products entered, or 
withdrawn from warehouse for consumption, on or after September 16, 
1998.

EFFECTIVE DATE: December 28, 1998.

FOR FURTHER INFORMATION CONTACT: William G. Rosoff, Office of 
Regulations and Rulings (202-927-2077).

SUPPLEMENTARY INFORMATION:

Background

    Section 13031 of the Consolidated Omnibus Budget Reconciliation Act 
of 1985, as amended (codified at 19 U.S.C. 58c and hereinafter referred 
to as the COBRA provision), provides for the collection of various fees 
for providing Customs services in connection with the arrival of 
vessels, vehicles, railroad cars, aircraft, passengers and dutiable 
mail, in connection with the entry or release of merchandise, and in 
connection with Customs broker permits. The fees pertaining to the 
entry or release of merchandise are set forth in subsections (a)(9) and 
(10) of the COBRA provision (19 U.S.C. 58c(a)(9) and (10)) and include 
an ad valorem fee for each formal entry or release (subject to specific 
maximum and minimum limits), a surcharge for each manual entry or 
release, and specific fees for three types of informal entry or 
release.
    Subsection (b)(11) of the COBRA provision (19 U.S.C. 58c(b)(11)) 
provides that no fee may be charged under subsection (a)(9) or (10) 
with respect to products of Israel if an exemption with respect to the 
fee is implemented under section 112 of the Customs and Trade Act of 
1990 (the Trade Act, Pub. L. 101-382). Section 112 of the Trade Act 
provides that, if the United States Trade Representative determines 
that the Government of Israel has provided reciprocal concessions in 
exchange for the exemption of products of Israel from the fees imposed 
under subsections (a)(9) and (10) of the COBRA provision, such fees may 
not be charged with respect to any product of Israel that is entered, 
or withdrawn from warehouse for consumption, on or after the 15th day 
after the date on which the determination is published in the Federal 
Register.
    Regulations implementing the COBRA provision regarding merchandise 
processing fees are contained in Sec. 24.23 of the Customs Regulations 
(19 CFR 24.23). When Sec. 24.23 was amended in 1991 to, among other 
things, reflect the changes to the COBRA provision made by the Trade 
Act (see T.D. 91-33, published in the Federal Register at 56 FR 15036 
on April 15, 1991, and T.D. 91-95, published in the Federal Register at 
56 FR 63648 on December 5, 1991), no determination under section 112 of 
the Trade Act had been published by the United States Trade 
Representative. Accordingly, the revised text of Sec. 24.23 included, 
in paragraph (c)(5), a general statement as to the nonapplicability of 
the merchandise processing fees under the circumstances described in 
section 112 of the Trade Act, but without any indication of a specific 
effective date because the conditions set forth in the statute had not 
yet been met.
    On September 1, 1998, the Office of the United States Trade 
Representative published a notice in the Federal Register (63 FR 46496) 
stating that the United States Trade Representative has determined that 
the Government of Israel has provided reciprocal concessions for 
purposes of section 112 of the Trade Act. Accordingly, the notice 
stated that pursuant to section 112 of the Trade Act and 19 U.S.C. 
58c(b)(11), any product of Israel that is entered, or withdrawn from 
warehouse for consumption, on or after the 15th day after the date of 
publication of that notice will not be charged the fees imposed under 
19 U.S.C. 58c(a)(9) and (10).
    Paragraph (c)(5) was drafted and included in Sec. 24.23 in general, 
self-executing terms in order to allow for the future publication of a 
determination under section 112 of the Trade Act, and for operational 
implementation thereof by Customs, without having to amend the 
regulatory text. Nevertheless, for purposes of clarity and in order to 
provide the most complete information to the public, Customs believes 
that it would be preferable to amend the regulatory text to reflect the 
specific date on which the exemption took effect, that is, September 
16, 1998.

Inapplicability of Public Notice and Comment and Delayed Effective 
Date Requirements

    Pursuant to the provisions of 5 U.S.C. 553(b)(B), Customs has 
determined that prior public notice and comment procedures on this 
regulation are unnecessary and contrary to the public interest. The 
regulatory change conforms the Customs Regulations to the terms of a 
statutory provision that is already in effect. In addition, the 
regulatory change benefits the public by providing specific information 
regarding the right to an exemption from the payment of certain import 
fees. For the same reasons, pursuant to the provisions of 5 U.S.C. 
553(d)(1) and (3), Customs finds that there is good cause

[[Page 71372]]

for dispensing with a delayed effective date.

Executive Order 12866

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

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for this rule, 
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
do not apply.

Drafting Information

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

List of Subjects in 19 CFR Part 24

    Accounting, Claims, Customs duties and inspection, Taxes, User 
fees, Wages.

Amendment to the Regulations

    For the reasons stated in the preamble, part 24 of the Customs 
Regulations (19 CFR Part 24) is amended as set forth below.

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

    1. The authority citation for part 24 continues to read in part as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General 
Note 20, Harmonized Tariff Schedule of the United States), 1450, 
1624; 31 U.S.C. 9701.
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Sec. 24.33  [Amended]

    2. In Sec. 24.23, paragraph (c)(5) is amended by removing the words 
``the effective date of a determination made under section 112 of the 
Customs and Trade Act of 1990'' and adding, in their place, the words 
``September 16, 1998 (the effective date of a determination published 
in the Federal Register on September 1, 1998, under section 112 of the 
Customs and Trade Act of 1990)''.

    Approved: November 18, 1998.
Raymond W. Kelly,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 98-34334 Filed 12-24-98; 8:45 am]
BILLING CODE 4820-02-P