[Federal Register Volume 64, Number 221 (Wednesday, November 17, 1999)]
[Proposed Rules]
[Pages 62619-62620]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29929]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 24

RIN 1515-AC48


Endorsement of Checks Deposited by the U.S. Customs Service

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations to 
reflect that Customs employees authorized to accept certain monetary 
instruments (such as checks) in payment of Customs duties, taxes, and 
other charges are no longer required to place their names and badge 
numbers on the instrument and that certain other information must be 
placed on the face (front) side of the instrument, rather than the 
reverse side of the instrument. The proposed changes are designed to 
avoid a conflict with Federal Reserve System regulations that govern 
the endorsement of checks by banks.

DATES: Comments must be received on or before January 18, 2000.

ADDRESSES: Written comments (preferably in triplicate), regarding both 
the substantive aspects of the proposed rule and how it may be made 
easier to understand, may be submitted to and inspected at the 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service, 1300 Pennsylvania Avenue, NW, 3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: Ms. Jo Cohen, Acting Director, 
Financial Management Division, Office of Finance (202-927-6140).

SUPPLEMENTARY INFORMATION:

Background

    Under Sec. 24.1 of the Customs Regulations (19 CFR 24.1), 
procedures for the collection of Customs duties, taxes, and other 
charges and fees are set forth. Currently, under Sec. 24.1(b), 
applicable to noncommercial importations at piers, terminals, bridges, 
airports, and other similar places, Customs employees authorized to 
collect payments may accept a personal check and shall ensure that 
certain information is recorded on the check. Under Sec. 24.1(b)(1), 
with respect to personal checks received under Sec. 24.1(b) and certain 
other checks and money orders received under Sec. 24.1(a), Customs 
employees shall show their name, badge number, and the serial or other 
identification number from the collection voucher on the reverse side 
of the check.
    Requirements applicable to banks endorsing checks are set forth 
under regulations of the Federal Reserve System (12 CFR 229.35) . 
Appendix D to Part 229 of the Federal Reserve System regulations (Title 
12, Chapter II)(entitled ``Indorsement Standards'') pertains to the 
endorsements of depositary, collecting, and returning banks. It sets 
forth the specific information that shall or may be provided and 
requires that such information shall be recorded on the reverse side of 
checks. The Appendix also provides that the readability, 
identifiability, and legibility of the depositary bank's endorsement 
must be

[[Page 62620]]

protected. It cautions the depositary bank not to interfere with the 
readability of the endorsement, and it carefully sets forth specific 
requirements for collecting and returning banks to follow for the 
purpose of protecting that endorsement.
    The requirement under the Customs Regulations that Customs 
employees must place information on the reverse side of monetary 
instruments conflicts with the requirements of 12 CFR 229.35 and App. D 
of Part 229 of Title 12 CFR regarding the protection of bank 
endorsements. In order to ensure that the practice of Customs employees 
in accepting checks and other monetary instruments does not interfere 
with the readability, identifiability, and legibility of endorsements 
of depositary and other banks, Customs proposes to amend Sec. 24.1(b) 
and Sec. 24.1(b)(1).
    Section 24.1(b)(1) is proposed to be amended to reflect that 
authorized Customs employees are no longer required to place their name 
and badge number on the instrument and that the collection voucher 
number (or other identifier) should now be placed on the face (front) 
side of the instrument, rather than the reverse side of the instrument. 
Section 24.1(b) is proposed to be amended to reflect that certain other 
information that is required on the instrument also should be placed on 
the face of the check. This information includes the payor's home and 
business phone numbers and either a social security number, current 
passport number, or current driver's license number (showing the 
issuing state).

Comments

    Before adopting this proposal 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, 1300 Pennsylvania 
Avenue, NW, 3rd Floor, Washington, DC

Executive Order 12866

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

Regulatory Flexibility Act

    Pursuant to the provisions of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.), it is certified that the proposed amendments to 
the Customs Regulations, if adopted, will not have a significant 
economic impact on a substantial number of small entities. Adoption of 
the proposed amendments regarding the endorsement of checks and other 
instruments will improve the process for accepting and depositing these 
instruments, without any additional burden on businesses or 
individuals. Accordingly, the proposed amendments are not subject to 
the regulatory analysis or other requirements of 5 U.S.C. 603 and 604.

Drafting Information

    The principal author of this document was Bill Conrad, Office of 
Regulations and Rulings, U.S. Customs Service. However, personnel from 
other offices contributed in its development.

List of Subjects in 19 CFR Part 24

    Accounting, Claims, Customs duties and inspection, Fees, Financial 
and accounting procedures, Imports, Taxes.

Proposed Amendments to the Regulations

    For the reasons stated in the preamble, part 24 of the Customs 
Regulations (19 CFR part 24) is proposed to be amended as follows:

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

    1. The general authority citation for part 24 and the relevant 
specific authority citation continue to read 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.
    Section 24.1 also issued under 19 U.S.C. 197, 198, 1648;
* * * * *
    2. In Sec. 24.1, the second and third sentences of introductory 
paragraph (b) and all of paragraph (b)(1) are revised to read as 
follows:


Sec. 24.1  Collection of Customs duties, taxes, and other charges.

* * * * *
    (b) * * * Where the amount of the check is over $25, the Customs 
cashier or other employee authorized to receive Customs collections 
will ensure that the payor's name, home and business telephone number 
(including area code), and date of birth are recorded on the face 
(front) side of the monetary instrument. In addition, one of the 
following will be recorded on the face side of the instrument: 
preferably, the payor's social security number or, alternatively, a 
current passport number or current driver's license number (including 
issuing state). * * *
    (1) Where the amount is less than $100 and the identification 
requirements of paragraph (a)(4) of this section have been met, the 
Customs employee accepting the check or money order will place his name 
and badge number on the collection voucher and place the serial number 
or other form of voucher identification on the face side of the check 
or money order so that the check or money order can be easily 
associated with the voucher.
* * * * *
    Approved: September 15, 1999.
Raymond W. Kelly,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 99-29929 Filed 11-16-99; 8:45 am]
BILLING CODE 4820-02-P