[Federal Register Volume 65, Number 242 (Friday, December 15, 2000)]
[Proposed Rules]
[Pages 78430-78431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31969]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 65, No. 242 / Friday, December 15, 2000 / 
Proposed Rules  

[[Page 78430]]



DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 24

RIN 1515-AC64


Time Limitation for Requesting Refunds of Harbor Maintenance Fee 
and for Making Other Claims Against Customs

AGENCY: 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 
establish a one year time limit within which a refund request must be 
filed for overpayments of Harbor Maintenance Fees that were paid 
quarterly and for making other claims against Customs. This time limit 
would assure an efficient reasonable final resolution of claims against 
Customs.

DATES: Comments must be received on or before February 13, 2001

ADDRESSES: Comments may be submitted to and inspected at the 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service, 1300 Pennsylvania Avenue, NW., Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: Deborah Thompson, Accounts Receivable 
Branch, Accounting Services Division, (317) 298-1200 ext. 4003.

SUPPLEMENTARY INFORMATION:

Background

    The Harbor Maintenance Fee was created by provisions of the Water 
Resources Development Act of 1986 (26 U.S.C. 4461 et seq.) (``the 
Act''), as amended, and implemented through interim regulations, 
published in the Federal Register as T.D. 87-44 on March 30, 1987 (52 
FR 10198). The Act authorizes the Customs Service to assess a harbor 
maintenance fee for port use at certain ports by commercial vessels 
which load or unload merchandise or passengers, unless specifically 
exempted. By assessing a charge for port use, the Act causes those who 
benefit from the maintenance of a Federal port or harbor to share in 
the cost of that maintenance.
    It is necessary for there to be a time limit within which a refund 
claim can be submitted to Customs to assure an efficient reasonable 
final resolution of refund claims.
    In a case decided by the United States Court of Appeals for the 
Federal Circuit on February 28, 2000, Swisher International, Inc. v. 
United States, No. 99-1277 (February 28, 2000), the court held that 
there was ``no generic limitation period on requesting [harbor 
maintenance fee] refunds'' because Customs did not set a time limit for 
requesting refunds in the applicable regulations. The court went on to 
say that ``Customs was free to impose time limits on the filing of 
[harbor maintenance fee] refund requests * * * and it remains free to 
alter the regulation to impose a time limit in the future.''
    Customs is acting on the court's advice and proposing to amend the 
Customs Regulations by establishing a one year time limit for the 
filing of a refund request for quarterly harbor maintenance fee 
payments. The one year limit for a refund request will commence at the 
payment date to Customs. The payment date for quarterly harbor 
maintenance fee payments mailed to Customs at a post office box is the 
date the payment to the post office box is processed to Customs 
account. Section 24.24(e)(4) of the Customs Regulations (19 CFR 
24.24(e)(4)) is proposed to be amended to add this time limitation.
    This proposed one year time limitation is only applicable to 
requests for refunds for harbor maintenance fees that are paid 
quarterly. The proposed limitation is not applicable to requests for 
refunds of harbor maintenance fees that were paid in accordance with 
the normal Customs collection procedures for imported merchandise set 
forth in Secs. 24.1 and 141.1 (19 CFR 24.1 and 141.1). Section 
24.24(e)(2)(ii), Customs Regulations describes those harbor maintenance 
fees that are paid in accordance with normal duty collection procedures 
for imported merchandise. If a harbor maintenance fee is paid in 
accordance with normal duty collection procedures for imported 
merchandise, a refund may be sought of that fee in accordance with the 
procedure that is used for seeking a refund of a duty payment. 
Additionally, requests for refunds of payments made quarterly that are 
properly filed with Customs prior to this proposed rule becoming final 
will be processed by Customs regardless of the dates on which payments 
were made.

Other Claims

    At this time, for similar reasons of administrative efficiency, 
Customs is also proposing to set a one year time limitation for the 
filing of a claim of any nature arising under the Customs laws which is 
not otherwise provided for in the regulations. This limitation is added 
to Sec. 24.73 of the Customs Regulations (19 CFR 24.73).

Technical Correction

    Customs is also amending Sec. 24.24(e)(2)(ii) for a technical error 
removing the citation to ``(e)(3)(iii)'' and replacing it with 
``(e)(2)(iii)''.

Comments

    Before adopting the proposed amendments, consideration will be 
given to any written comments, including comments on the clarity of the 
amendments and how they may be made easier to understand, that are 
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, Treasury Regulations (31 CFR 1.4); and 
Sec. 103.11(b), 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, 1300 Pennsylvania Avenue, NW., Washington, DC 
20229.

Regulatory Flexibility Act

    Insofar as the proposed amendments merely establish a filing time 
limit to existing regulations, pursuant to the provisions of the 
Regulatory Flexibility Act (5 U.S.C. 601, et seq.), it is certified 
that the amendments, if adopted, will not have a significant economic 
impact on a substantial number of small entities. Accordingly, the 
proposed amendments are not subject to the regulatory analysis or other 
requirements of 5 U.S.C. 603 and 604.

[[Page 78431]]

Executive Order 12866

    The proposed amendments do not meet the criteria for a 
``significant regulatory action'' as specified in E.O. 12866.

Drafting Information

    The principal author of this document was Keith B. Rudich, 
Regulations Branch, 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 24

    Accounting, Canada, Claims, Customs duties and inspection, Fees, 
Financial and accounting procedures, Harbors, Reporting and 
recordkeeping requirements, Taxes, User fees.

Proposed Amendment

    It is proposed to amend part 24, Customs Regulations (19 CFR part 
24) as set forth below:

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

    1. The general authority citation for part 24 will 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.
* * * * *
    2. It is proposed to amend Sec. 24.24 by removing in paragraph 
(e)(2)(ii) the reference to (e)(3)(iii)'' and adding ``(e)(2)(iii)'; 
and by revising paragraph (e)(4) to read as follows:


Sec. 24.24  Harbor Maintenance Fee.

* * * * *
    (e) Collections.
* * * * *
    (4) Supplemental payments and refunds. If a supplemental payment is 
made for a harbor maintenance fee that was paid quarterly, it must be 
mailed to the U.S. Customs Service, P.O. Box 70915, Chicago, Illinois 
60673-0915. The envelope containing a supplemental payment must also 
have enclosed both a Harbor Maintenance Fee Amended Quarterly Summary 
Report, Customs Form 350, and a copy of the Harbor Maintenance Fee 
Quarterly Summary Report, Customs Form 349, that was submitted at the 
time the fee for which the supplemental payment is being made was 
originally paid. Requests for refunds of a quarterly harbor maintenance 
fee payment, specifying the grounds of the claim along with the 
required documentation, must be received by Customs within one year 
from the date the fee for which the refund is sought was paid to 
Customs; or in the case of merchandise admitted into a foreign trade 
zone and subsequently withdrawn from the zone for any purpose specified 
in 19 U.S.C. 1309, within one year from the date of withdrawal from the 
zone. A request for a refund of a quarterly harbor maintenance fee 
payment must be submitted to Customs with both a Harbor Maintenance Fee 
Amended Quarterly Summary Report, Customs Form 350, and a copy of the 
Harbor Maintenance Fee Quarterly Summary Report, Customs Form 349, that 
was submitted at the time the fee for which a refund is sought was 
originally paid. The request for a refund of a quarterly harbor 
maintenance fee payment must be mailed to the U.S. Customs Service, HMF 
Refunds, 6026 Lakeside Blvd., Indianapolis, IN 46278.
* * * * *
    3. It is proposed to revise Sec. 24.73 to read as follows:


Sec. 24.73  Miscellaneous claims.

    Every claim of whatever nature arising under the Customs laws which 
is not otherwise provided for shall be forwarded directly to Office of 
Finance, Headquarters, U.S. Customs Service, specifying the grounds of 
the claim together with all supporting documents and information 
available. Any claims within this section must be submitted within one 
year of the act giving rise to the claim.

Raymond W. Kelly,
Commissioner of Customs.
    Approved: December 11, 2000.
Helen B. Belt,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 00-31969 Filed 12-14-00; 8:45 am]
BILLING CODE 4820-02-P