[Federal Register Volume 64, Number 217 (Wednesday, November 10, 1999)]
[Rules and Regulations]
[Pages 61204-61205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29380]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 10

[T.D. 99-79]


Foreign Locomotives and Railroad Equipment in International 
Traffic; Technical Amendment

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

ACTION: Final rule.

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SUMMARY: In accordance with Customs policy of periodically reviewing 
its regulations to ensure that they are consistent, this document makes 
a minor technical amendment to the Customs Regulations regarding entry 
requirements for foreign locomotives and railroad equipment that are 
brought into the United States in international traffic.

EFFECTIVE DATE: November 10, 1999.

FOR FURTHER INFORMATION CONTACT: Glen E. Vereb, Office of Regulations 
and Rulings, (202-927-2320).

SUPPLEMENTARY INFORMATION:

Background

    Section 322, Tariff Act of 1930, as amended (19 U.S.C. 1322), 
provides that vehicles and other instruments of international traffic, 
of any class specified by the Secretary of the Treasury, shall be 
excepted from the application of the Customs laws, including the 
requirement of entry, to such an extent and subject to such terms and 
conditions as may be prescribed in regulations or instructions of the 
Secretary of the Treasury.
    In this regard, Sec. 10.41(a), Customs Regulations (19 CFR 
10.41(a)), states that locomotives and other railroad equipment, as 
well as trucks, buses, taxicabs, and other vehicles used in 
international traffic are subject to the treatment provided in part 
123, Customs Regulations (19 CFR part 123).
    In particular, Sec. 123.12(a) and (b) describes the circumstances 
under which foreign locomotives or other railroad equipment may be 
admitted to the United States without the requirement of an entry; and 
Sec. 123.14(c) likewise describes the circumstances under which 
foreign-based trucks, buses and taxicabs may be admitted to the United 
States without the requirement of an entry.
    Against this backdrop, Sec. 10.41(d) prescribes, in pertinent part, 
that any foreign-owned vehicle brought into the United States for the 
purpose of carrying passengers or merchandise domestically for hire or 
as an element of a commercial transaction, except as provided at 
Sec. 123.14(c), would be subject to treatment as an importation of 
merchandise from a foreign country and an entry would be required for 
such vehicle.
    The citation in Sec. 10.41(d) to Sec. 123.14(c) covers foreign 
trucks, buses and taxicabs. However, there is no reference to 
Sec. 123.12(a) and (b), as there also should properly be in 
Sec. 10.41(d), concerning foreign locomotives and railroad equipment.
    Accordingly, consistent with Sec. 10.41(a), Sec. 10.41(d) is 
changed to make clear that foreign-owned vehicles include locomotives 
and railroad equipment, as well as trucks, busses and taxicabs. In 
addition, a reference to Sec. 123.12 (a) and (b) is added to 
Sec. 10.41(d) to reflect the existing conditions under which foreign 
locomotives and railway equipment may be admitted to the U.S. without 
the requirement of a Customs entry.
    Furthermore, section 681 of the North American Free Trade Agreement 
Implementation Act (Pub. L. 103-182; December 8, 1993) added a 
provision to the Harmonized Tariff Schedule of the United States 
(HTSUS) exempting from entry railway locomotives classified in headings 
8601 and 8602, HTSUS, and railway freight cars classified in heading 
8606, HTSUS, on which no duty is owed (see Additional U.S. Note 1, 
chapter 86, HTSUS). These exemptions from entry are noted in 
Sec. 141.4(b)(4), Customs Regulations (19 CFR 141.4(b)(4)). 
Accordingly, to reflect these exemptions from entry, a reference to 
Sec. 141.4(b)(4) is also added to Sec. 10.41(d).

The Regulatory Flexibility Act, Executive Order 12866 and 
Inapplicability of Public Notice and Comment and Delayed Effective 
Date Requirements

    Because the amendment merely conforms to existing law and 
regulatory practice as noted above, notice and public procedure in this 
case are inapplicable and unnecessary pursuant

[[Page 61205]]

to 5 U.S.C. 553(b)(B), and, pursuant to 5 U.S.C. 553(d)(3), a delayed 
effective date is not required. Since this document is not subject to 
the notice and public comment requirements of 5 U.S.C. 553, it is not 
subject to the provisions of the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.). Nor does the amendment result in a ``significant 
regulatory action'' under E.O. 12866.

List of Subjects in 19 CFR Part 10

    Customs duties and inspection, Imports, International traffic, 
Reporting and recordkeeping requirements, Vehicles.

Amendment to the Regulations

    Part 10, Customs Regulations (19 CFR part 10), is amended as set 
forth below.

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

    1. The general authority citation for part 10 and the relevant 
specific sectional authority citation continue to read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 
1498, 1508, 1623, 1624, 3314;
* * * * *
    Sections 10.41, 10.41a, 10.107 also issued under 19 U.S.C. 1322;
* * * * *
    2. Section 10.41 is amended by revising the first sentence of 
paragraph (d) to read as follows:


Sec. 10.41  Instruments; exceptions.

* * * * *
    (d) Any foreign-owned locomotive or other railroad equipment, 
truck, bus, taxicab, or other vehicle, aircraft, or undocumented boat 
brought into the United States for the purpose of carrying merchandise 
or passengers between points in the United States for hire or as an 
element of a commercial transaction, except as provided at Secs. 123.12 
(a) and (b), 123.14(c), and 141.4(b)(4), is subject to treatment as an 
importation of merchandise from a foreign country and a regular entry 
for such vehicle, aircraft or boat will be made. * * *
* * * * *
Raymond W. Kelly,
Commissioner of Customs.

    Approved: August 3, 1999.
Dennis M. O'Connell,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 99-29380 Filed 11-9-99; 8:45 am]
BILLING CODE 4820-02-P