[Federal Register Volume 64, Number 61 (Wednesday, March 31, 1999)]
[Rules and Regulations]
[Pages 15302-15303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7917]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 144

[T.D. 98-74]
RIN 1515-AB99


Lay Order Period; General Order; Penalties; Correction

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Final rule; correction.

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SUMMARY: This document makes a correction to the document published in 
the Federal Register that adopted as a final rule, with some changes, 
proposed amendments to the Customs Regulations regarding, among other 
things, the obligation of the owner, master, pilot, operator, or agent 
of an arriving carrier to provide notice to Customs and to a bonded 
warehouse of the presence of merchandise or baggage that has remained 
at the place of arrival or unlading beyond the time period provided by 
regulation without entry having been completed. The correction involves 
a conforming change to the Customs Regulations pertaining to 
rewarehouse entries.

EFFECTIVE DATE: This correction is effective March 31, 1999.

FOR FURTHER INFORMATION CONTACT: For legal matters: Jeremy Baskin, 
Penalties Branch, Office of Regulations and Rulings (202) 927-2344.
    For operational matters: Steven T. Soggin, Office of Field 
Operations, (202) 927-0765.

SUPPLEMENTARY INFORMATION:

Background

    On September 25 1998, Customs published in the Federal Register (63 
FR 51283) T.D. 98-74 which adopted as a final rule, with some changes, 
proposed amendments to the Customs Regulations regarding the obligation 
of the owner, master, pilot, operator, or agent of an arriving carrier 
to provide notice to Customs and to a bonded warehouse of the presence 
of merchandise or baggage that has remained at the place of arrival or 
unlading beyond the time period provided by the regulatory amendments 
(that is, the fifteenth calendar day after landing) without entry 
having been completed. The final regulatory texts specifically require 
one of the arriving carrier's obligated parties, or any party who takes 
custody from the arriving carrier under a Customs-authorized permit to 
transfer or in-bond entry, to provide notice of the unentered

[[Page 15303]]

merchandise or baggage to Customs and to a bonded warehouse no later 
than 20 calendar days after landing or after receipt under the permit 
to transfer or after arrival at the port of destination. The notice to 
the bonded warehouse proprietor initiates his obligation to arrange for 
transportation and storage of the unentered merchandise or baggage at 
the risk and expense of the consignee. The final regulatory texts also 
provide for penalties or liquidated damages against the owner or master 
of any conveyance, or agent thereof, for failure to provide the 
required notice to Customs or to a bonded warehouse proprietor. The 
final regulations further provide for the assessment of liquidated 
damages against any party who accepts custody of the merchandise or 
baggage under a Customs-authorized permit to transfer or in-bond entry 
and who fails to notify Customs and a bonded warehouse of the presence 
of such unentered merchandise or baggage and also against the warehouse 
operator who fails to take required possession of the merchandise or 
baggage.
    The final regulatory texts as summarized above resulted from 
amendments to the underlying statutory authority effected by sections 
656 and 658 contained within the Customs Modernization provisions of 
the North American Free Trade Agreement Implementation Act (Pub. L. 
103-182, 107 Stat. 2057) and are primarily reflected in a revised 
Sec. 4.37 (19 CFR 4.37) and in new Secs. 122.50 and 123.10 (19 CFR 
122.50 and 123.10), each of which is entitled ``[g]eneral order.'' 
(T.D. 98-74 also included a number of conforming changes to the Customs 
Regulations in order to reflect a number of other statutory amendments 
and repeals effected by the Customs Modernization provisions and in 
order to reflect the recent recodification and reenactment of title 49, 
United States Code; the correction contained in this document bears no 
relationship to those other regulatory amendments.)
    Although T.D. 98-74 also included a number of conforming regulatory 
changes to ensure consistency with the terms of revised Sec. 4.37 and 
new Secs. 122.50 and 123.10 (involving, for example, the removal or 
replacement of obsolete references to a ``5-day'' or ``lay order'' 
period or ``extension'' thereof), Sec. 144.41(g) of the Customs 
Regulations (19 CFR 144.41(g)) was overlooked in this regard. This 
provision concerns the treatment of merchandise in a rewarehouse 
context. The present text, by referring to a rewarehouse entry not 
filed ``before the expiration of 5 days after its arrival or any 
authorized extension,'' is inconsistent with, and thus could give rise 
to uncertainty regarding the proper and intended applicability of, 
Secs. 4.37, 122.50 and 123.10 in a rewarehouse context. Therefore, T.D. 
98-74 should have included an appropriate revision of Sec. 144.41(g) to 
clarify the operation of those general order provisions in that 
specific context. This document corrects this oversight.

Correction of Publication

    In the document published in the Federal Register as T.D. 98-74 on 
September 25, 1998 (63 FR 51283), on page 51290, in the third column, 
the following part 144 amendment is added in appropriate numerical 
order:

PART 144--WAREHOUSE AND REWAREHOUSE ENTRIES AND WITHDRAWALS

    1. The authority citation for part 144 continues to read in part as 
follows:

    Authority: 19 U.S.C. 66, 1484, 1557, 1559, 1623, 1624.
* * * * *
    2. In Sec. 144.41, paragraph (g) is revised to read as follows:


Sec. 144.41  Entry for rewarehouse.

* * * * *
    (g) Failure to enter. If the rewarehouse entry is not filed within 
15 calendar days after its arrival, the merchandise shall be disposed 
of in accordance with the applicable procedures in Sec. 4.37 or 
Sec. 122.50 or Sec. 123.10 of this chapter. However, merchandise sent 
to a general order warehouse shall not be sold or otherwise disposed of 
as unclaimed until the expiration of the original 5-year period during 
which the merchandise may remain in warehouse under bond.
* * * * *
    Dated: March 26, 1999.
John A. Durant,
Acting Assistant Commissioner, Office of Regulations and Rulings.
[FR Doc. 99-7917 Filed 3-30-99; 8:45 am]
BILLING CODE 4820-02-P