[Federal Register Volume 65, Number 12 (Wednesday, January 19, 2000)]
[Rules and Regulations]
[Pages 2868-2874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1120]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 4

[T.D. 00-4 ]
RIN 1515-AC29


Boarding of Vessels in the United States

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

ACTION:  Final rule.

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SUMMARY:  This document, as a primary focus, amends the Customs 
Regulations regarding the boarding of vessels arriving in ports of the 
United States. These amendments are made to implement amendments to the 
underlying statutory authority enacted as part of the Customs 
Modernization Act, as well as to reflect policy determinations 
necessitated as a result of those amendments. To this same end, certain 
general amendments are made to the regulations concerning vessel entry 
and clearance as well as the issuance of permits to lade and unlade 
merchandise.

EFFECTIVE DATE:  February 18, 2000.

FOR FURTHER INFORMATION CONTACT:  Legal aspects: Larry L. Burton, 
Office of Regulations and Rulings, 202-927-1287.
    Operational aspects: Robert Watt, Office of Field Operations, 202-
927-3654.

SUPPLEMENTARY INFORMATION:

Background

    On December 8, 1993, amendments to certain Customs and navigation 
laws became effective as the result of the North American Free Trade 
Agreement Implementation Act (Pub. L. 103-182), Title VI of which is 
popularly known as the Customs Modernization Act (the Act). Sections 
653 and 656 of the Act significantly amended the statutes governing the 
entry and the lading and unlading of vessels in the United States. 
These operations are governed, respectively, by sections 434 and 448 of 
the Tariff Act of 1930, as amended (19 U.S.C. 1434 and 1448).
    Prior to the subject amendments, the entry of vessels of the United 
States and vessels of foreign countries had been governed by separate 
statutes (19 U.S.C. 1434 and 1435), neither of which included elements 
concerning preliminary vessel entry or the boarding of vessels. The Act 
repealed 19 U.S.C. 1435 and amended 19 U.S.C. 1434 to provide for the 
entry of American and foreign-documented vessels under the same 
statute. Additionally, the amended 19 U.S.C. 1434 now provides 
authority for the promulgation of regulations regarding preliminary 
vessel entry, and while neither mandating boarding for all vessels nor 
specifying that optional boarding must be accomplished at any 
particular stage of the vessel entry process, the amended law does 
require that a sufficient number of vessels be boarded to ensure 
compliance with the laws enforced by the Customs Service.
    The general authority provided for Customs to board vessels is 
found in section 581, Tariff Act of 1930, as amended (19 U.S.C. 1581). 
Prior to amendment, 19 U.S.C. 1448 as previously cited had linked the 
granting of preliminary vessel entry to a mandatory boarding 
requirement and physical presentation of manifest documents to a 
Customs boarding officer. The amended 19 U.S.C. 1448 no longer contains 
provisions regarding preliminary vessel entry, vessel boarding, or 
manifest presentation, all of which are now provided for in other 
statutes. The statute now provides that Customs may electronically 
issue permits to lade or unlade merchandise

[[Page 2869]]

pursuant to an authorized data interchange system, as an alternative to 
physical document presentation.
    Accordingly, on July 6, 1998, a notice of proposed rulemaking was 
published in the Federal Register (63 FR 36379) soliciting comments to 
amend the Customs Regulations in order to properly implement the 
foregoing statutory amendments, as well as certain other statutory 
changes and revised Customs interpretations, governing the boarding of 
vessels arriving in ports of the United States, vessel entry and 
clearance, and the issuance of permits to lade and unlade merchandise. 
The specific Customs Regulations affected were Secs. 4.1, 4.3, 4.8, 
4.9, 4.16, 4.30, 4.60, 4.61, 4.68 and 4.70 (19 CFR 4.1, 4.3, 4.8, 4.9, 
4.16, 4.30, 4.60, 4.61, 4.68 and 4.70).

Discussion of Comments

    Nine comments were received in response to the notice of proposed 
rulemaking. There were two comments received from representatives of 
Federal Government agencies, four from trade associations representing 
vessel owners and operators, one from a vessel operating company, one 
from an interested individual, and one from a Member of Congress. A 
discussion of the comments follows.

Comment

    Three commenters suggested, in connection with proposed Sec. 4.1, 
that Customs board every vessel arriving in a United States port, 
whether directly from a foreign location or pursuant to a permit to 
proceed from another domestic port. Each of the commenters believes 
that Customs has been boarding and searching every vessel and that 
ceasing the practice would compromise our enforcement mission.
Customs Response
    Customs has never boarded and searched every vessel, which 
presently number approximately 95,000 arrivals a year. Confusion 
concerning this matter could be the result of certain procedures which 
were followed regarding vessel arrivals. Prior to the most recent 
amendments, statute and regulations required every vessel to be boarded 
by Customs for the purpose of receiving a vessel's cargo declaration, 
and Customs Form 1300 (Master's Oath of Vessel in Foreign Trade). Once 
Customs received the named documents, preliminary entry was granted 
that would permit the vessel to unlade prior to completing formal 
entry. Customs might also have performed formal entry on board a 
vessel. Neither procedure entailed a search of a vessel nor an 
examination of cargo. Both procedures were ministerial acts involving 
the routine review of documents and the collection of fees.
    At the time, the outlined procedures were important aspects of the 
Customs enforcement mission since there was no alternative means to 
obtain a vessel's cargo declaration. Customs needs cargo declarations, 
in part, to ensure that importers make proper entry of each shipment of 
goods aboard a vessel. With the advent of advanced technology including 
automation, facsimile transmission, and express delivery service, 
Customs now regularly requires submission of cargo declarations in 
advance of vessel arrival for prescreening enforcement purposes.
    The present amendments are replacing the outdated procedures 
outlined above, which were resource intensive and lacked significant 
enforcement results. Resources conserved by eliminating the prior 
boarding policy will enable Customs to allocate more toward doing 
meaningful comprehensive boardings with examination of high risk 
vessels and cargoes.

Comment

    Four commenters expressed the opinion that allowing only 24 hours 
following arrival to make formal entry, as set forth in proposed 
Sec. 4.3, was restrictive and unnecessary.
Customs Response
    Customs agrees with this comment and will retain the current 48-
hour time limit to make formal entry in Sec. 4.3(a).

Comment

    With reference to proposed Sec. 4.3, two commenters expressed 
concern about potentially being charged both ``expenses incurred,'' 
meaning reimbursable expenses, and Commercial Vessel User Fees in 
connection with a single vessel arrival.
Customs Response
    The phrase ``expenses incurred,'' found in Sec. 4.3(b)(2), as 
proposed, is stated in the context of a port director allowing the 
provision of services outside the limits of a port of entry. Current 
user fee law under 19 U.S.C. 58c(a)(1) and 19 U.S.C. 58c(c)(2) requires 
the collection of user fees to cover costs of services provided to 
vessels which arrive at a port of entry. Any services provided outside 
of a port of entry are considered extraordinary and involve expending 
resources beyond those expected to be recovered through user fee 
collections (19 CFR 24.17). Therefore, Customs may collect both user 
fees and other expenses during a calendar year if services are 
requested both within and outside of port boundaries. It may even be 
necessary to collect both fees during the same voyage if a vessel 
requests services outside of the limits of a port and then moves inside 
the port limits to unlade or request additional services such as vessel 
clearance.

Comment

    Two commenters expressed concern with the prescribed time periods 
allowed for presentation of necessary documents for preliminary entry, 
and stated that if the time periods are not met, parties would have to 
request formal entry on board vessels at time of arrival in order to 
avoid delays in the unlading of cargoes. Concern was expressed here 
with reference to the discretionary authority vested in port directors 
to deny requests for formal entry aboard a vessel at time of arrival. 
The discretion is expressed in proposed Sec. 4.3(b)(2), which would 
allow port directors to take local resources into consideration when 
determining whether to allow formal entry of a vessel at a place other 
than the customhouse. The vessel operating public has become accustomed 
to the routine meeting of vessels upon arrival and may consider that 
any reduction in this service will cause unnecessary delays. One of the 
commenters suggested that the current entry procedures around the 
country work well and should not be changed.
Customs Response
    It is necessary to first address the current procedures employed 
around the country regarding vessel entry. Those procedures caused 
Customs to review the entire vessel entry process. There is a 
substantial lack of uniformity around the country when it comes to the 
entry of vessels. At many locations, it is the rare circumstance where 
Customs performs formal entry aboard a vessel while at other locations 
formal entry is performed aboard nearly every vessel which arrives in 
port.
    In addition, the procedures for granting preliminary entry vary 
widely. At many locations preliminary entry is granted merely by 
submitting a CF 3171 and reporting arrival. At other locations, an 
inspector has to board a vessel and receive those documents required by 
Sec. 4.7. We have designed the new policy to create more uniformity. 
With the new procedures at all Customs locations, except in those 
instances where Customs boards a vessel for compliance or enforcement 
reasons, if a vessel operator can supply required documentation within 
prescribed time

[[Page 2870]]

limits the vessel will obtain permission to unlade upon arrival without 
the requirement that an inspector board the vessel. Evidence suggests 
that most vessels currently present required documents within 
prescribed time limits. Once preliminary entry is granted the 48-hour 
entry period will allow ample opportunity for a vessel operator to come 
into the customhouse to conduct formal entry.
    There may be circumstances when the Customs office is closed and a 
vessel operator cannot provide the CF 3171 or CF 1302 within the 
prescribed times in order to obtain preliminary entry. In such cases, 
the port director has the discretion to perform formal entry not only 
aboard vessels at time of arrival, but at other locations and outside 
of normal business hours. This might be accomplished by assigning a 
Customs employee outside normal business hours to locations near places 
of arrival. Vessel operators might then come to that location in order 
to obtain formal entry. To the extent possible, ports will attempt to 
accommodate legitimate needs to allow entry outside of normal business 
hours.

Comment

    A separate concern was also expressed in connection with proposed 
Sec. 4.3(b)(2) about a port director's discretion to permit vessel 
entry at places other than the customhouse including locations outside 
actual port limits. The commenter states that the regulation as written 
gives the public and the maritime industry the false impression that 
Customs entry outside the designated port of entry relieves them of 
other federal agency clearance requirements. The commenter believes 
that the proposed procedures could lead parties to either unwittingly 
or intentionally avoid the clearance requirements of other federal 
agencies.
Customs Response
    The proposed regulation was written to formalize a practice which 
had become standard at many Customs port locations. Customs currently 
permits the procedure because many locations where vessels unlade cargo 
happen to be outside the boundaries of ports of entry. To deny entry 
and unlading at such locations could unduly burden commerce. Customs 
does recognize the legitimate missions fulfilled by other federal 
agencies, and our final regulations make it clear that we are not 
supplanting the roles of those other entities. The United States 
Immigration and Naturalization Service (INS), as well as the United 
States Department of Agriculture's Animal Plant Health Inspection 
Service (APHIS), and Plant Protection and Quarantine (PPQ) are notable 
examples of such entities. Accordingly, we are amending the language as 
proposed in Sec. 4.3(b)(2) to make it clear that fulfillment of Customs 
requirements does not relieve parties of complying with requirements 
which are enforced by other agencies.

Comment

    Three commenters expressed concern about the requirement in 
proposed Sec. 4.8 that a complete manifest, as prescribed in Sec. 4.7, 
be presented in order to obtain a grant of preliminary entry at the 
time of or subsequent to vessel arrival. Concern was also expressed 
that the same section requires the submission of Customs Form 3171 and 
the CF 1302, or their electronic equivalent, 48 hours in advance in 
order to obtain a grant of preliminary entry prior to vessel arrival. 
For vessels on voyages shorter than two days, submission is allowed at 
any time prior to arrival in order to receive preliminary entry in 
advance of arrival. It is the opinion of the commenters that vessel 
operators may not always have required information available within the 
prescribed time limitations.
Customs Response
    With respect to the requirement that a complete manifest be 
available in connection with granting preliminary entry at or 
subsequent to arrival, it must be pointed out that Sec. 4.7 currently 
requires that every arriving vessel have on board a complete manifest. 
A complete manifest includes such documents as the crew list, ships 
store's list, passenger list, cargo declaration, and crew effect's 
list. Since these documents have been and continue to be required, no 
additional burden is placed upon vessel operators if preliminary entry 
is conditioned upon presentation of these documents to Customs. 
Further, the submission of these documents allows Customs to combine 
preliminary and formal entry, and many ports have been combining 
preliminary and formal entry which would entail presentation of all of 
the named documents. There has been no evidence of any significant 
delays in vessel unladings as a result.
    The CF 1302 and CF 3171 information is required 48 hours prior to 
arrival in order to be granted advanced preliminary entry because 
Customs needs advance notification of a vessel's arrival and an 
adequate description of the cargo on board in order to expedite entry 
of the vessel and release of the cargo. This amendment is merely 
requiring by regulation something which has been in practice by much of 
the vessel carrier community. Due to this practice, Customs has been 
able to conduct needed pre-arrival review of manifest information, 
enabling Customs to identify, in advance of arrival, which cargo needs 
to be examined. The benefit to the trade community is that vessel 
operators are immediately informed as to which shipments need to be 
examined, instead of waiting several days after vessel arrival for 
examination requirements to be fulfilled.
    It may be that some carriers will have to modify their procedures 
in order to obtain grants of advanced preliminary entry. One of the 
commenters suggested that non-automated carriers may not be able to 
participate in the electronic submission of documents. If a particular 
carrier does not wish to automate, there are designated service centers 
across the United States which are available to transmit the cargo 
declaration information to Customs for them. Interested parties may 
obtain a list of service centers by contacting Ms. Becky Lally, Customs 
Office of Information Technology, at (301) 210-6368. Customs has no 
information regarding any fees which these service centers may charge.

Comment

    Two commenters had many and varied observations regarding the entry 
and clearance requirements for American-flag vessels with in-bond 
cargoes aboard, as set forth in proposed Secs. 4.9 and 4.61, 
respectively. Both commenters stated that Customs should not require 
such vessels to have to enter and clear, with one suggesting that the 
requirements would serve no practical purpose. One stated that the 
Customs laws and regulations have never before imposed such 
requirements, and that not imposing any changes to in-bond control 
procedures regarding similar rail or truck movements amounts to unequal 
protection under the law.
    It was suggested that the proposed requirements were contrary to 
the amended statutory law in that Congress intended that an in-bond 
control transaction would meet the definition of entered merchandise. 
Concern was also expressed regarding the procedural requirements which 
would be imposed upon vessels to present in-bond or bill of lading 
numbers for in-bond cargo, stating that a carrier may not even know 
whether in-bond cargo is aboard a vessel. It was emphasized that the 
initial bonded carrier already provides cargo information to Customs 
through existing in-bond procedures, and that asking for it again would 
be contrary to the Paperwork Reduction Act. Finally, the point was made 
that the new procedures would place an undue financial burden

[[Page 2871]]

on American vessels carrying in-bond shipments, such as the payment of 
user fees and the cost of hiring vessel agents to deal with Customs.
Customs Response
    By amending the laws concerning vessel entry and clearance, the 
Congress, not Customs, for the first time placed the requirements under 
discussion on American-flag vessels carrying merchandise on in-bond 
movements. No laws applicable to rail or truck traffic were either 
enacted or amended in a similar fashion; thus, the focus of our 
regulatory amendments is on vessels.
    Customs agrees with the commenter that the production of bills of 
lading or Immediate Transportation documents should not be required 
under the entry and clearance procedures. Instead, the documentary 
requirements for entry and clearance for these vessels will be 
satisfied by presenting to Customs a completed Customs Form 1301 
(General Declaration). The General Declaration is primarily required to 
provide Customs with the necessary information to record all vessel 
entries and clearances on the Customs Forms 1400 and 1401, 
respectively, and to make that record available for public inspection.
    Accordingly, Secs. 4.9(b) and 4.61(b) are changed to reflect that 
the completed Customs Form 1301 (General Declaration) will be 
acceptable instead of requiring the production bills of lading or 
Immediate Transportation documents. However, this in no way limits the 
authority of a Customs officer to demand production of any documents or 
papers considered necessary for the proper inspection and examination 
of a vessel and its cargo or passengers as provided in 19 U.S.C. 
1581(a). Sections 4.9(b) and 4.61(b) are further changed to make this 
clear.
    With respect to perceived financial burdens, 19 U.S.C. 58(c) 
specifically requires that Customs collect fees for services in 
connection with the arrival of a vessel. Customs, through this 
rulemaking, is affording the domestic vessel industry as much relief as 
possible given the constraints of the statutes. For American-flag 
vessels transporting in-bond merchandise, all that will be necessary is 
for such vessels to report arrival or departure, supply Customs with 
completed Customs Form 1301 (General Declaration), and pay Customs user 
fees if applicable. As to the user fee collection, vessel operators 
need only present payment to Customs at the time of arrival. Payment 
upon each arrival may be avoided by prepayment of the annual fee 
maximum, as presently allowed.

Comment

    One commenter asked that the term ``merchandise'' be defined by 
Customs, for purposes of proposed Sec. 4.9, to mean foreign merchandise 
for which entry has not been made.
Customs Response
    The term ``merchandise'', for Customs purposes, is already defined 
by statute (19 U.S.C. 1401(c)) as meaning goods, wares, and chattels of 
every description.

Comment

    One commenter urged that the requirement for deposit of a vessel's 
document with Customs or a foreign consular office be removed from 
proposed Sec. 4.9(c) as no longer needed.
Customs Response
    Prior to amendments made by the Customs Modernization Act, there 
had been authority under 19 U.S.C. 1434 and 1435 to require operators 
of American and foreign vessels to deposit their ship's registers or 
documents with Customs until vessel clearance. Section 1437 of title 
19, United States Code (19 U.S.C. 1437), which had provided for the 
return to the master or owner of an American or foreign vessel's 
register or document upon vessel clearance, was repealed without 
replacement by that same Act. Still operative, however, is section 1438 
of title 19, United States Code (19 U.S.C. 1438), which was amended by 
the Act. As amended, section 1438 provides for a penalty to be issued 
against any foreign consul returning to the master the register or 
document of a foreign vessel deposited with the consul prior to the 
vessel receiving clearance from Customs. The result of the amendments 
and repeals affecting sections 1434, 1435, 1437, and 1438 is that 
Customs will require an operator of a foreign-flag vessel to surrender 
the register or document to either Customs or the foreign consul of 
that country.

Comment

    One commenter inquired as to whether the collection of shipping 
articles agreements for American-flag vessels under proposed 
Sec. 4.61(c)(9) is still necessary.
Customs Response
    The requirement that shipping articles be presented before the 
grant of clearance to such vessels is statutory (46 U.S.C. App. 
10314(d)) and must continue to be complied with.

Conclusion

    In view of the foregoing, and following careful consideration of 
the comments received and further review of the matter, Customs has 
concluded that the proposed amendments with the modifications discussed 
above should be adopted.

Additional Changes

    In addition, the requirement for a master's oath on Customs Form 
1300 is removed from Secs. 4.9(a) and 4.61(a), inasmuch as the 
underlying statutory authority for this, 19 U.S.C. 282, was repealed by 
section 690(a)(2) of the Customs Modernization Act, Pub. L. 103-182. 
Also, Sec. 4.60(a)(4) is changed, consistent with statutory law (46 
U.S.C. App. 91), to fully reflect those vessels for which Customs 
clearance must be obtained.

Regulatory Flexibility Act and Executive Order 12866

    This final rule amends the Customs Regulations principally in order 
to accurately reflect and implement changes to the underlying statutory 
authority regarding the boarding of vessels arriving in ports of the 
United States. To this same end, certain general amendments are made to 
the regulations concerning vessel entry and clearance as well as those 
concerning issuance of permits to lade and unlade merchandise. As such, 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), it is 
certified that the amendments will not have a significant economic 
impact on a substantial number of small entities. Accordingly, the 
amendments are not subject to the regulatory analysis or other 
requirements of 5 U.S.C. 603 and 604. Nor does this document meet the 
criteria for a ``significant regulatory action'' as specified in E.O. 
12866.

Paperwork Reduction Act

    The collections of information referenced in this final rule have 
previously been reviewed and approved by the Office of Management and 
Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507) and assigned the following OMB Control Numbers:
    1515-0013--Application-Permit-Special License, Unlading-Lading-
Overtime Services (Customs Form 3171);
    1515-0062--General Declaration (Customs Form 1301);
    1515-0078--Cargo Declaration (inward and outward) (Customs Form 
1302); and 1515-0144--Customs Bond Structure (Customs Form 301 and 
Customs Form 5297).
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information

[[Page 2872]]

unless the collection of information displays a valid control number 
assigned by OMB. This document restates the collections of information 
without substantive change.
    Comments concerning suggestions for reducing the burden of 
collections of information should be sent to the Regulations Branch, 
Office of Regulations and Rulings, U.S. Customs Service, 1300 
Pennsylvania Avenue, NW., 3rd Floor, Washington, D.C. 20229. A copy 
should also be sent to U.S. Customs Service, Information Services 
Group, Attention: J. Edgar Nichols, Room 3.2-C, 1300 Pennsylvania 
Avenue, NW., 3rd Floor, Washington, D.C. 20229.

Drafting Information

    The principal author of this document was Larry L. Burton, 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 4

    Customs duties and inspection, Entry, Inspection, Merchandise, 
Reporting and recordkeeping requirements, Vessels.

Amendments to the Regulations

    Part 4, Customs Regulations (19 CFR part 4), is amended as set 
forth below.

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES I111. The general 
authority citation for part 4 as well as the specific authority 
citations for Secs. 4.3, 4.7, 4.8 and 4.30 continue to read as 
follows, while the specific authority citations for Secs. 4.1, 4.9 
and 4.68 are revised, and a specific authority citation for 
Sec. 4.61 is added in appropriate numerical order, to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624; 
46 U.S.C. App. 3, 91;
    Section 4.1 also issued under 19 U.S.C. 1581(a); 46 U.S.C. App. 
163;
* * * * *
    Section 4.3 also issued under 19 U.S.C. 288, 1441; 46 U.S.C. App. 
111;
* * * * *
    Section 4.7 also issued under 19 U.S.C. 1581(a); 46 U.S.C. App. 
883a, 883b;
* * * * *
    Section 4.8 also issued under 19 U.S.C. 1448, 1486;
    Section 4.9 also issued under 42 U.S.C. 269;
* * * * *
    Section 4.30 also issued under 19 U.S.C. 288, 1446, 1448, 1450-
1454, 1490;
* * * * *
    Section 4.61 also issued under 46 U.S.C. App. 883;
* * * * *
    Section 4.68 also issued under 46 U.S.C. App. 817d, 817e;
* * * * *

    2. Section 4.1 is amended by revising paragraph (a) to read as set 
forth below; and by removing paragraph (b) and redesignating paragraphs 
(c), (d), (e), (f), and (g), as paragraphs (b), (c), (d), (e) and (f), 
respectively:


Sec. 4.1  Boarding of vessels; cutter and dock passes.

    (a) Every vessel arriving at a Customs port will be subject to such 
supervision while in port as the port director considers necessary. The 
port director may detail Customs officers to remain on board a vessel 
to secure enforcement of the requirements set forth in this part. 
Customs may determine to board as many vessels as considered necessary 
to ensure compliance with the laws it enforces.
* * * * *

    3. Part 4 is amended by removing and reserving Footnote 1.

    4. Section 4.3 is revised to read as follows:


Sec. 4.3  Vessels required to enter; place of entry.

    (a) Formal entry required. Unless specifically excepted by law, 
within 48 hours after the arrival at any port or place in the United 
States, the following vessels are required to make formal entry:
    (1) Any vessel from a foreign port or place;
    (2) Any foreign vessel from a domestic port;
    (3) Any vessel of the United States having merchandise on board 
which is being transported in-bond (not including bonded ship's stores 
or supplies), or foreign merchandise for which entry has not been made; 
or
    (4) Any vessel which has visited a hovering vessel as defined in 19 
U.S.C. 1401(k), or has delivered or received merchandise or passengers 
while outside the territorial sea.
    (b) Completion of entry. (1) When vessel entry is to be made at the 
customhouse, either the master, licensed deck officer, or purser may 
appear in person during regular working hours to complete preliminary 
or formal vessel entry; or necessary documents properly executed by the 
master or other authorized officer may be delivered at the customhouse 
by the vessel agent or other personal representative of the master.
    (2) The appropriate Customs port director may permit the entry of 
vessels to be accomplished at locations other than the customhouse, and 
services may be requested outside of normal business hours. Customs may 
take local resources into consideration in allowing formal entry to be 
transacted on board vessels or at other mutually convenient approved 
sites and times within or outside of port limits. When services are 
requested to be provided outside the limits of a Customs port, the 
appropriate port director to whom an application must be submitted is 
the director of the port located nearest to the point where the 
proposed services would be provided. That port director must be 
satisfied that the place designated for formal entry will be 
sufficiently under Customs control at the time of entry, and that the 
expenses incurred by Customs will be reimbursed as authorized. It may 
be required that advance notice of vessel arrival be given as a 
condition for granting requests for optional entry locations. A master, 
owner, or agent of a vessel who desires that entry be made at an 
optional location will file with the appropriate port director an 
application on Customs Form 3171 and a single entry or continuous bond 
on Customs Form 301 containing the bond conditions set forth in 
Sec. 113.64 of this chapter, in such amount as that port director deems 
appropriate but not less than $1,000. If the application is approved, 
the port director or a designated Customs officer will formally enter 
the vessel. Nothing in this paragraph relieves any person or vessel 
from any requirement as to how, when and where they are to report, be 
inspected or receive clearance from other Federal agencies upon arrival 
in the United States.

    5. Section 4.8 is revised to read as follows:


Sec. 4.8  Preliminary entry.

    (a) Generally. Preliminary entry allows a U.S. or foreign vessel 
arriving under circumstances that require it to formally enter, to 
commence lading and unlading operations prior to making formal entry. 
Preliminary entry may be accomplished electronically pursuant to an 
authorized electronic data interchange system, or by any other means of 
communication approved by the Customs Service.
    (b) Requirements and conditions. Preliminary entry must be made in 
compliance with Sec. 4.30, and may be granted prior to, at, or 
subsequent to arrival of the vessel. The granting of preliminary vessel 
entry by Customs at or subsequent to arrival of the vessel, is 
conditioned upon the presentation to and acceptance by Customs of all 
forms, electronically or otherwise, comprising

[[Page 2873]]

a complete manifest as provided in Sec. 4.7. Vessels seeking 
preliminary entry in advance of arrival may do so by presenting to 
Customs a complete Customs Form 1302 (Cargo Declaration) showing all 
cargo on board the vessel and Customs Form 3171, electronically or 
otherwise, no less than 48 hours prior to vessel arrival. The CF 3171 
will also serve as notice of intended date of arrival. The port 
director may allow for the presentation of the CF 1302 and CF 3171 less 
than 48 hours prior to arrival in order to grant advanced preliminary 
entry if a vessel voyage takes less than 48 hours to complete from the 
last foreign port to the first U.S. port, or if other reasonable 
circumstances warrant. Preliminary entry granted in advance of arrival 
will become effective upon arrival at the port granting preliminary 
entry. Additionally, Customs must receive confirmation of a vessel's 
estimated time of arrival in a manner acceptable to the port director.

    6. Section 4.9 is revised to read as follows:


Sec. 4.9  Formal entry.

    (a) General. Section 4.3 provides which vessels are subject to 
formal entry and where and when entry must be made. The formal entry of 
an American vessel is governed by section 434, Tariff Act of 1930 (19 
U.S.C. 1434). The term ``American vessel'' means a vessel of the United 
States (see Sec. 4.0(b)) as well as, when arriving by sea, a vessel 
entitled to be documented except for its size (see Sec. 4.0(c)). The 
formal entry of a foreign vessel arriving within the limits of any 
Customs port is also governed by section 434, Tariff Act of 1930 (19 
U.S.C. 1434). Alternatively, information necessary for formal entry may 
be transmitted electronically pursuant to a system authorized by 
Customs.
    (b) Procedures for American vessels. Under certain circumstances, 
American vessels arriving in ports of the United States directly from 
other United States ports must make entry. Entry of such vessels is 
required when they have merchandise aboard which is being transported 
in-bond, or when they have unentered foreign merchandise aboard. For 
the purposes of the vessel entry requirements, merchandise transported 
in-bond does not include bonded ship's stores or supplies. While 
American vessels transporting unentered foreign merchandise must fully 
comply with the usual formal entry procedures, American vessels 
carrying no unentered foreign merchandise but which have in-bond 
merchandise aboard may satisfy vessel entry requirements by making a 
required report of arrival, and presenting a completed Customs Form 
1301 (General Declaration). Report of arrival as provided in Sec. 4.2 
of this part, together with presenting a completed Customs Form 1301 
(General Declaration), satisfies all entry requirements for the subject 
vessels.
    (c) Delivery of foreign vessel document. The master of any foreign 
vessel will exhibit the vessel's document to the port director on or 
before the entry of the vessel. After the net tonnage has been noted, 
the document may be delivered to the consul of the nation to which such 
vessel belongs, in which event the vessel master will certify to the 
port director the fact of such delivery (see section 434, Tariff Act of 
1930, as amended (19 U.S.C. 1434), as applied through section 438, 
Tariff Act of 1930, as amended (19 U.S.C. 1438)). If not delivered to 
the consul, the document will be deposited in the customhouse. Whether 
delivered to the foreign consul or deposited at the customhouse, the 
document will not be delivered to the master of the foreign vessel 
until clearance is granted under Sec. 4.61. It will not be lawful for 
any foreign consul to deliver to the master of any foreign vessel the 
register, or document in lieu thereof, deposited with him in accordance 
with the provisions of 19 U.S.C. 1434 until such master will produce to 
him a clearance in due form from the director of the port where such 
vessel has been entered. Any consul violating the provisions of this 
section is liable to a fine of not more than $5,000 (section 438, 
Tariff Act of 1930, as amended; 19 U.S.C. 1438).
    (d) Failure to make required entry; penalties. Any master who fails 
to make entry as required by this section or who presents or transmits 
electronically any document required by this section that is forged, 
altered, or false, may be liable for certain civil penalties as 
provided under 19 U.S.C. 1436, in addition to penalties applicable 
under other provisions of law. Further, any vessel used in connection 
with any such violation is subject to seizure and forfeiture.


Sec. 4.16  [Reserved]

    7. Part 4 is amended by removing and reserving Sec. 4.16.

    8. Section 4.30 is amended by adding the word ``fees'' between the 
words ``clearance'' and ``under'' in introductory paragraph (a); and by 
revising paragraph (b) to read as follows:


Sec. 4.30  Permits and special licenses for unlading and lading.

* * * * *
    (b) Application for a permit or special license will be made by the 
master, owner, or agent of the vessel on Customs Form 3171, or 
electronically pursuant to an authorized electronic data interchange 
system or other means of communication approved by the Customs Service, 
and will specifically indicate the type of service desired at that 
time, unless a term permit or term special license has been issued. 
Vessels that arrive in a Customs port with more than one vessel carrier 
sharing or leasing space on board the vessel (such as under a vessel 
sharing or slot charter arrangement) are required to indicate on the CF 
3171 all carriers on board the vessel and indicate whether each carrier 
is transmitting its cargo declaration electronically or is presenting 
it on the Customs Form 1302. In the case of a term permit or term 
special license, upon entry of each vessel, a copy of the term permit 
or special license must be submitted to Customs during official hours 
in advance of the rendering of services so as to update the nature of 
the services desired and the exact times they will be needed. Permits 
must also be updated to reflect any other needed changes including 
those in the name of the vessel as well as the slot charter or vessel 
sharing parties. An agent of a vessel may limit his application to 
operations involved in the entry and unlading of the vessel or to 
operations involved in its lading and clearance. Such limitation will 
be specifically noted on the application.
* * * * *

    9. Section 4.60 is amended by revising paragraph (a) to read as 
follows:


Sec. 4.60  Vessels required to clear.

    (a) Unless specifically excepted by law, the following vessels must 
obtain clearance from the Customs Service before departing from a port 
or place in the United States:
    (1) All vessels departing for a foreign port or place;
    (2) All foreign vessels departing for another port or place in the 
United States;
    (3) All American vessels departing for another port or place in the 
United States that have merchandise on board that is being transported 
in-bond (not including bonded ship's stores or supplies), or foreign 
merchandise for which entry has not been made; and
    (4) All vessels departing for points outside the territorial sea to 
visit a hovering vessel or to receive merchandise or passengers while 
outside the territorial sea, as well as foreign vessels delivering 
merchandise or passengers while outside the territorial sea.
* * * * *

[[Page 2874]]


    10. Section 4.61 is revised to read as follows:


Sec. 4.61  Requirements for clearance.

    (a) Application for clearance. Application for clearance for a 
vessel will be made by filing a General Declaration, Customs Form 1301, 
by or on behalf of the master at the customhouse. The master, licensed 
deck officer, or purser may appear in person to clear the vessel, or 
documents properly executed by the master or other proper officer may 
be delivered at the customhouse by the vessel agent or other personal 
representative of the master. Necessary information may also be 
transmitted electronically pursuant to a system authorized by Customs. 
Clearance will be granted either on Customs Form 1378 or by approved 
electronic means. Customs port directors may permit the clearance of 
vessels at locations other than the customhouse, and at times outside 
of normal business hours. Customs may take local resources into 
consideration in allowing clearance to be transacted on board vessels 
themselves or at other mutually convenient sites and times either 
within or outside of port limits. Customs must be satisfied that the 
place designated for clearance is sufficiently under Customs control at 
the time of clearance, and that the expenses incurred by Customs will 
be reimbursed as authorized. Customs may require that advance notice of 
vessel departure be given prior to granting requests for optional 
clearance locations.
    (b) When clearance required. Under certain circumstances, American 
vessels departing from ports of the United States directly for other 
United States ports must obtain Customs clearance. The clearance of 
such vessels is required when they have merchandise aboard which is 
being transported in-bond, or when they have unentered foreign 
merchandise aboard. For the purposes of the vessel clearance 
requirements, merchandise transported in-bond does not include bonded 
ship's stores or supplies. While American vessels transporting 
unentered foreign merchandise must fully comply with usual clearance 
procedures, American vessels carrying no unentered foreign merchandise 
but that have in-bond merchandise aboard may satisfy vessel clearance 
requirements by reporting intended departure within 72 hours prior 
thereto by any means of communication that is satisfactory to the local 
Customs port director, and by presenting a completed Customs Form 1301 
(General Declaration). Also, the Customs officer may require the 
production of any documents or papers deemed necessary for the proper 
inspection/examination of the vessel, cargo, passenger, or crew. Report 
of departure together with providing information to Customs as 
specified in this paragraph satisfies all clearance requirements for 
the subject vessels.
    (c) Verification of compliance. Before clearance is granted to a 
vessel bound to a foreign port as provided in Sec. 4.60 and this 
section, the port director will verify compliance with respect to the 
following matters:
    (1) Accounting for inward cargo (see Sec. 4.62).
    (2) Outward Cargo Declarations; shippers export declarations (see 
Sec. 4.63).
    (3) Documentation (see Sec. 4.0(c)).
    (4) Verification of nationality and tonnage (see Sec. 4.65).
    (5) Verification of inspection (see Sec. 4.66).
    (6) Inspection under State laws (46 U.S.C. App. 97).
    (7) Closed ports or places (see Sec. 4.67).
    (8) Passengers (see Sec. 4.68).
    (9) Shipping articles and enforcement of Seamen's Act (see 
Sec. 4.69).
    (10) Medicine and slop chests.
    (11) Load line regulations (see Sec. 4.65a).
    (12) Carriage of United States securities, etc. (46 U.S.C. App. 
98).
    (13) Carriage of mail.
    (14) Public Health regulations (see Sec. 4.70).
    (15) Inspection of vessels carrying livestock (see Sec. 4.71).
    (16) Inspection of meat, meat-food products, and inedible fats (see 
Sec. 4.72).
    (17) Neutrality exportation of arms and munitions (see Sec. 4.73).
    (18) Payment of State and Federal fees and fees due the Government 
of the Virgin Islands of the United States (46 U.S.C. App. 100).
    (19) Orders restricting shipping (see Sec. 4.74).
    (20) Estimated duties deposited or a bond given to cover duties on 
foreign repairs and equipment for vessels of the United States (see 
Sec. 4.14).
    (21) Illegal discharge of oil (see Sec. 4.66a).
    (22) Attached or arrested vessel.
    (23) Immigration laws.
    (d) Vessel built for foreign account. A new vessel built in the 
United States for foreign account will be cleared under a certificate 
of record, Coast Guard Form 1316, in lieu of a marine document.
    (e) Clearance not granted. Clearance will not be granted to any 
foreign vessel using the flag of the United States or any distinctive 
signs or markings indicating that the vessel is an American vessel (22 
U.S.C. 454a).
    (f) Clearance in order of itinerary. Unless otherwise provided in 
this section, every vessel bound for a foreign port or ports will be 
cleared for a definite port or ports in the order of its itinerary, but 
an application to clear for a port or place for orders, that is, for 
instructions to masters as to destination of the vessel, may be 
accepted if the vessel is in ballast or if any cargo on board is to be 
discharged in a port of the same country as the port for which 
clearance is sought.

    11. Part 4 is amended by removing and reserving Footnotes 97, 99 
and 100a through 101.

    12. Section 4.68 is revised to read as follows:


Sec. 4.68  Federal Maritime Commission certificates for certain 
passenger vessels.

    No vessel having berth or stateroom accommodations for 50 or more 
passengers and embarking passengers at U.S. ports will be granted a 
clearance at the port or place of departure from the United States 
unless it is established that the vessel has valid certificates issued 
by the Federal Maritime Commission.

    13. Section 4.70 is revised to read as follows:


Sec. 4.70  Public Health Service requirements.

    No clearance will be granted to a vessel subject to the foreign 
quarantine regulations of the Public Health Service.

Raymond W. Kelly,
Commissioner of Customs.
    Approved: December 22, 1999.
Dennis M. O'Connell,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-1120 Filed 1-18-00; 8:45 am]
BILLING CODE 4820-02-P