[Federal Register Volume 65, Number 96 (Wednesday, May 17, 2000)]
[Rules and Regulations]
[Pages 31261-31262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-12364]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 24, 159 and 174

[T.D. 00-32]
RIN 1515-AB76


Interest on Underpayments and Overpayments of Customs Duties, 
Taxes, Fees and Interest

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

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule interim amendments to the 
Customs Regulations which conformed those regulations to existing 
statutory provisions and judicial precedent regarding the assessment of 
interest due to underpayments or overpayments to Customs of duties, 
taxes and fees pertaining to imported merchandise, including interest 
on those duties, taxes and fees. The majority of the conforming

[[Page 31262]]

changes reflect the terms of section 505 of the Tariff Act of 1930, as 
amended by the Customs Modernization provisions of the North American 
Free Trade Agreement Implementation Act. The conforming amendments also 
reflect changes to 19 U.S.C. 1505 and to section 321 of the Tariff Act 
of 1930 (19 U.S.C. 1321) regarding interest that were made by the 
Miscellaneous Trade and Technical Corrections Act of 1996.

DATES: Final rule effective May 17, 2000.

FOR FURTHER INFORMATION CONTACT: Robert Reiley, Financial Management 
Division (202-927-1504).

SUPPLEMENTARY INFORMATION:

Background

    On October 20, 1999, Customs published T.D. 99-75 in the Federal 
Register (64 FR 56433) setting forth interim amendments to provisions 
within Parts 24, 159 and 174 of the Customs Regulations (19 CFR Parts 
24, 159 and 174) to conform those regulations to existing statutory 
provisions and judicial precedent regarding the assessment of interest 
due to underpayments or overpayments to Customs of duties, taxes and 
fees pertaining to imported merchandise, including interest on those 
duties, taxes and fees.
    The majority of the conforming changes reflected the terms of 
section 505 of the Tariff Act of 1930 (19 U.S.C. 1505), as amended by 
section 642(a) within the Customs Modernization provisions of the North 
American Free Trade Agreement Implementation Act (Public Law 103-182, 
107 Stat. 2057). Under that statute, interest accrues initially from 
the date the duties, taxes, fees and interest are deposited with 
Customs in the case of overpayments, or are required to be deposited 
with Customs in the case of underpayments, but in either case not 
beyond the date of liquidation or reliquidation of the applicable entry 
or reconciliation. Also under the statute and applicable judicial 
precedent, all bills issued by Customs for underpayments of duties, 
taxes, fees and interest are due within 15 or 30 days of issuance.
    The conforming interim amendments also reflected other changes to 
19 U.S.C. 1505 and to section 321 of the Tariff Act of 1930 (19 U.S.C. 
1321) regarding interest that were made by sections 2(a) and 3(a)(12) 
of the Miscellaneous Trade and Technical Corrections Act of 1996 
(Public Law 104-295, 110 Stat. 3514).
    The interim regulatory amendments contained in T.D. 99-75 went into 
effect on October 20, 1999, and the notice prescribed a public comment 
period which closed on December 20, 1999. No comments were received 
during the prescribed public comment period. After further 
consideration, Customs has determined that the interim regulatory 
amendments should be adopted as a final rule without change.

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 amendments will not have 
a significant economic impact on a substantial number of small 
entities. The amendments conform the Customs Regulations to the terms 
of statutory provisions, and to the principles reflected in judicial 
decisions, that are currently in effect. In addition, in some cases, 
the amendments conform the regulatory provisions to longstanding 
Customs administrative procedures and practices that confer benefits 
on, or otherwise militate in favor of, the general public. Accordingly, 
the amendments are not subject to the regulatory analysis or other 
requirements of 5 U.S.C. 603 and 604.

List of Subjects

19 CFR Part 24

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

19 CFR Part 159

    Computer technology, Customs duties and inspection, Entry, Imports, 
Liquidation.

19 CFR Part 174

    Administrative practice and procedure, Customs duties and 
inspection, Protests.

Amendments to the Regulations

    For the reasons stated in the preamble, under the authority of 19 
U.S.C. 66 and 1624 the interim rule amending 19 CFR Parts 24, 159 and 
174 which was published at 64 FR 56433 on October 20, 1999, is adopted 
as a final rule without change.

Raymond W. Kelly,
Commissioner of Customs.
    Approved: April 26, 2000.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-12364 Filed 5-16-00; 8:45 am]
BILLING CODE 4820-02-P