[Federal Register Volume 65, Number 183 (Wednesday, September 20, 2000)]
[Rules and Regulations]
[Pages 56790-56791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24099]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 24

[T.D. 00-62]
RIN 1515-AC48


Endorsement of Checks Deposited by Customs

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

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations to reflect 
changes concerning information that authorized Customs employees are 
required to place on instruments (such as checks) tendered for payment 
of duties, taxes, and other fees and charges. These changes are 
designed to avoid a conflict with Federal Reserve System regulations 
that govern the endorsement of checks by banks.

EFFECTIVE DATE: October 20, 2000.

FOR FURTHER INFORMATION CONTACT: Gregory L. Pence, Branch Chief, 
Financial Policy Branch, Office of Finance ((202) 927-9183).

SUPPLEMENTARY INFORMATION:

Background

    Under Sec. 24.1 of the Customs Regulations (19 CFR 24.1), 
procedures for the collection of Customs duties, taxes, charges, and 
fees are set forth. 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 must 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 must show, on the 
reverse side of the check or money order, their name, badge number, and 
the serial or other identification number from the collection voucher.
    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 must or may be provided and 
requires that such information must 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 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 purpose and intent of the requirements 
of 12 CFR 229.35 and App. D of Part 229 of Title 12 CFR

[[Page 56791]]

regarding the protection of bank endorsements. For this reason, Customs 
issued a Notice of Proposed Rulemaking, published in the Federal 
Register (64 FR 62619) on November 17, 1999, proposing that required 
information be placed on the face side of monetary instruments accepted 
for Customs payments. The notice requested comments on the proposed 
amendments. No comments were received. After further consideration of 
this matter, Customs has determined to adopt the proposed changes as a 
final rule. This document amends Secs. 24.1(b) and 24.1(b)(1) of the 
Customs Regulations, accordingly.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in Executive Order 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 to the Customs 
Regulations set forth in this document will not have a significant 
economic impact on a substantial number of small entities. These 
amendments regarding the endorsement of checks and other instruments 
will improve the processing of these instruments, without any 
additional burden on businesses or individuals. Accordingly, these 
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. 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.

Amendments to the Regulations

    For the reasons stated in the preamble, part 24 of the Customs 
Regulations (19 CFR part 24) is 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), 1505, 
1624; 26 U.S.C. 4461, 4462; 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.
* * * * *

Dated: Approved: July 18, 2000.
Raymond W. Kelly,
Commissioner of Customs.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-24099 Filed 9-19-00; 8:45 am]
BILLING CODE 4820-02-P