[Federal Register Volume 66, Number 22 (Thursday, February 1, 2001)]
[Proposed Rules]
[Pages 8554-8555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2783]


 ========================================================================
 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.
 
 ========================================================================
 

  Federal Register / Vol. 66, No. 22 / Thursday, February 1, 2001 / 
Proposed Rules  

[[Page 8554]]



DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 24 and 101

RIN 1515-AC77


Reimbursable Customs Inspectional Services: Increase in Hourly 
Rate Charge

AGENCY: Customs Service, Treasury.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document proposes to amend the Customs Regulations to 
increase the rate of charge for reimbursable Customs inspectional 
services. The present amount charged for the services of a Customs 
employee on a regular work week is computed at a rate per hour equal to 
137 percent of the hourly rate of an employee's regular pay. A recent 
audit of Customs inspectional services charges by the Treasury's Office 
of the Inspector General determined that this rate does not represent 
full reimbursement to Customs for actual inspectional service costs, 
and that increasing the rate to 158 percent would recover the actual 
costs incurred by Customs for these services. This document proposes to 
increase the rate in accordance with the Inspector General's 
recommendation.

DATES: Comments must be received on or before April 2, 2001.

ADDRESSES: Written comments may be addressed to, and inspected at, U.S. 
Customs Service, Office of Regulations and Rulings--Regulations Branch, 
1300 Pennsylvania Avenue NW., Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: Dennis Lomax, Accounting Services 
Division, Office of Finance, Indianapolis, IN 46278; telephone (317) 
298-1200, ext. 1404.

SUPPLEMENTARY INFORMATION:

Background

    Under certain circumstances, Customs provides inspectional and 
supervisory services to parties-in-interest who require such Customs 
services during regular hours of duty or on Customs overtime 
assignments. However, under these circumstances, the private interest 
is required to reimburse the Government for the Customs employee's 
compensation. The amounts of the compensation and expenses chargeable 
to these parties-in-interest are determined based on a computational 
charge. The computational charge is provided at Sec. 24.17(d) of the 
Customs Regulations (19 CFR 24.17(d)). Currently, the computational 
charge for reimbursable services is at a per hour rate that is equal to 
137 percent of the hourly rate of regular pay of the employee 
performing the inspectional services.
    A recent audit of Customs inspectional services charges by the 
Treasury's Office of the Inspector General (OIG) has determined that 
this computational rate does not represent full reimbursement to 
Customs for actual inspectional service costs and recommends that 
increasing the rate to 158 percent would recover the actual costs 
incurred by Customs for these services. The OIG noted that the formula 
used to determine the current computational charge of 137 percent now 
contains two outdated cost factors (the number of legal public holidays 
and the ratio of employer paid benefits to an employee's salary). The 
current 137 percent computational charge was calculated using 9 legal 
public holidays and an 11\1/2\ percent benefits ratio. However, there 
are now 10 legal public holidays (Martin Luther King Day was declared a 
legal public holiday in 1986), and the OIG has determined that the 
current benefit ratio is 28.55 percent instead of 11\1/2\ percent.
    This document proposes to implement the recommended computational 
rate. Accordingly, the provisions of Sec. 24.17(d) are proposed to be 
revised.
    As a result of the proposed change to Sec. 24.17(d), a 
corresponding change is proposed to Sec. 101.6, which provides for the 
hours of business of Customs offices. Customs lists the legal public 
holidays as national holidays at Sec. 101.6(a). The present provisions 
of Sec. 101.6(a) enumerate only nine national holidays, when there are 
in fact ten national holidays observed. On November 2, 1983, the 
President signed into law a bill making the third Monday in January, 
starting in 1986, a legal public holiday honoring the Rev. Martin 
Luther King, Jr. Pub. L. 98-144, 97 Stat. 917, 5 U.S.C. 6103. While the 
Federal government has honored this date as indicated, the Customs 
Regulations have not been amended to incorporate this change. This 
document proposes to correct that oversight by adding the third Monday 
in January (Martin Luther King, Jr. Day) as a recognized national 
holiday.
    Lastly, a typographical error (the word ``hours'' was type-set as 
``hgurs'') has been discovered in the heading of paragraph (b) of 
Sec. 101.6. This error is proposed to be corrected in this document.

Comments

    Before adopting these proposed regulations as a final rule, 
consideration will be given to any written comments timely submitted to 
Customs, including comments on the clarity of this proposed rule and 
how it may be made easier to understand. 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 9:00 
a.m. and 4:30 p.m. at the Regulations Branch, Office of Regulations and 
Rulings, U.S. Customs Service, 1300 Pennsylvania Avenue, NW., Suite 
3000, Washington, DC.

The Regulatory Flexibility Act and Executive Order 12866

    Pursuant to provisions of the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.), it is certified that, if adopted, the proposed amendments 
will not have a significant economic impact on a substantial number of 
small entities, because the proposed amendments will only effect those 
parties-in-interest who require Customs reimbursable inspectional 
services. Accordingly, the proposed amendments are not subject to the 
regulatory analysis or other requirements of 5 U.S.C. 603 and 604. 
Further, these proposed amendments do not meet the criteria for a 
``significant regulatory action'' as specified in E.O. 12866.

[[Page 8555]]

Drafting Information

    The principal author of this document was Gregory R. Vilders, 
Attorney, Regulations Branch, Office of Regulations and Rulings. 
However, personnel from other offices participated in its development.

List of Subjects

19 CFR Part 24

    Accounting, Customs duties and inspection, Fees, Financial and 
accounting procedures, Reporting and recordkeeping requirements, User 
fees, Wages.

19 CFR Part 101

    Customs duties and inspection, Organization and functions 
(Government agencies), Reporting and recordkeeping requirements, User 
fees, Wages.

Proposed Amendments to the Regulations

    For the reasons set forth above, it is proposed to amend parts 24 
and 101 of the Customs Regulations (19 CFR parts 24 and 101), as set 
forth below:

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

    1. The general authority citation for part 24 continues to read, 
and the specific authority for Sec. 24.17 is revised 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 24.17 also issued under 5 U.S.C. 6103; 19 U.S.C. 261, 267, 
1450, 1451, 1452, 1456, 1524, 1557, 1562; 46 U.S.C. 2110, 2111, 2112;
* * * * *
    2. Section 24.17(d) is revised to read as follows:


Sec. 24.17  Reimbursable services of Customs employees.

* * * * *
    (d) Computation charge for reimbursable services. The charge for 
the services of a Customs employee on a regular workday during a basic 
40-hour workweek will be computed at a rate per hour equal to 158 
percent of the hourly rate of regular pay of the employee performing 
the services with an additional charge equal to any night pay 
differential actually payable under 5 U.S.C. 5545. The rate per hour 
equal to 158 percent of the hourly rate of regular pay will be computed 
as follows:

 
------------------------------------------------------------------------
                                                                Hours
------------------------------------------------------------------------
Gross number of working hours in 52 40-hour     ...........        2,080
 weeks........................................
Less:
    10 Legal Public Holidays--New Year's Day,            80
     Martin Luther King, Jr. Day, Washington's
     Birthday, Memorial Day, Independence Day,
     Labor Day, Columbus Day, Veterans Day,
     Thanksgiving Day, and Christmas Day......
    Annual Leave--26 days.....................          208
    Sick Leave--13 days.......................          104
                                               -------------
                                                        392          392
Net number of working hours...................  ...........        1,688
Gross number of working hours in 52 40-hour     ...........        2,080
 weeks........................................
Working hour equivalent of government           ...........          594
 contributions for employee uniform allowance,
 retirement, life insurance and health care
 benefits computed at 28.55 percent of annual
 rate of pay of employee (2,080  x  .2855)....
    Equivalent annual working hours charged to  ...........        2,674
     Customs appropriation (2,080 + 594)......
Ratio of annual number of working hours         ...........         158%
 charged to Customs appropriation to net
 number of annual working hours (2,674
  1,688)..............................
------------------------------------------------------------------------

* * * * *

PART 101--GENERAL PROVISIONS

    1. The general authority citation for part 24 is revised to read as 
follows:

    Authority: 5 U.S.C. 301, 6103; 19 U.S.C. 2, 66, 1202 (General 
Note 20, Harmonized Tariff Schedule of the United States), 1623, 
1624, 1646a.
* * * * *
    2. In Sec. 101.6:
    a. Paragraph (a) is revised; and
    b. Paragraph (b) is amended by removing the word ``hgurs'' in the 
heading and adding, in its place, the word ``hours''.
    The revision reads as follows:


Sec. 101.6  Hours of business.

* * * * *
    (a) Saturdays, Sundays, and national holidays.--(1) National 
holidays. In addition to Saturdays, Sundays, and any other calendar day 
designated as a holiday by Federal statute or Executive Order, Customs 
offices will be closed on the following national holidays:
    (i) January 1, New Year's Day;
    (ii) The third Monday in January, Birthday of Martin Luther King, 
Jr.;
    (iii) The third Monday in February, Washington's Birthday;
    (iv) The last Monday in May, Memorial Day;
    (v) July 4, Independence Day;
    (vi) The first Monday in September, Labor Day;
    (vii) The second Monday in October, Columbus Day;
    (viii) November 11, Veterans Day;
    (ix) The fourth Thursday in November, Thanksgiving Day; and
    (x) December 25, Christmas Day.
    (2) Observance of national holidays. If a national holiday falls on 
a Saturday, then the Friday preceding that Saturday will be observed as 
the national holiday for work purposes. If a national holiday falls on 
a Sunday, then the Monday following that Sunday will be observed as the 
national holiday for work purposes.
* * * * *

Raymond W. Kelly,
Commissioner of Customs.
    Approved: December 4, 2000.
Timothy E. Skud,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 01-2783 Filed 1-31-01; 8:45 am]
BILLING CODE 4820-02-P