[Federal Register Volume 66, Number 28 (Friday, February 9, 2001)]
[Proposed Rules]
[Page 9681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3359]


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 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. 66, No. 28 / Friday, February 9, 2001 / 
Proposed Rules  

[[Page 9681]]



DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 24

RIN 1515-AB38


Fees Assessed for Defaulted Payments

AGENCY: Customs Service, Department of the Treasury.

ACTION: Proposed rule; withdrawal.

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SUMMARY: This document withdraws the proposed amendment to the Customs 
Regulations which would have allowed the assessment of a $30 defaulted 
payment fee for any check or other monetary instrument that was 
presented for duties, taxes or other charges, and returned unpaid by a 
financial institution, in connection with any commercial importation or 
other transaction secured by a Customs bond. Customs has concluded that 
the fee should not be assessed in cases where the transaction is 
already backed by a Customs bond and liquidated damages may properly be 
assessed under the bond for a defaulted payment. Customs authority to 
assess the $30 fee thus remains limited to defaulted payments on 
noncommercial importations and other transactions that are not 
supported by a bond.

DATE: This withdrawal is effective on February 9, 2001.

FOR FURTHER INFORMATION CONTACT: David Baker, Office of Finance, (202-
927-0205).

SUPPLEMENTARY INFORMATION:

Background

    Under Sec. 24.1(e) of the Customs Regulations (19 CFR 24.1(e)), 
Customs may charge a $30 fee for each check that is returned by a 
financial institution unpaid, if that check was presented to Customs 
either for payment of duties, taxes or other charges incurred on 
noncommercial importations for which a formal entry was not required or 
for payment in connection with any other transaction not backed by a 
Customs bond.
    By a document published in the Federal Register (59 FR 13664) on 
March 23, 1994, Customs proposed to amend Sec. 24.1(e) to also provide 
for a $30 defaulted payment fee in those cases where the transaction 
was secured by a bond, in order to recoup the administrative costs 
incurred for processing returned checks and other defaulted payments in 
these situations as well.

Withdrawal of Proposal

    Three comments were received from the public in response to the 
proposed rule. All opposed the amendment of Sec. 24.1(e) to provide for 
a $30 fee in cases of defaulted payments of duties, taxes or other 
charges to Customs incurred in connection with commercial importations 
or other transactions that were supported by a bond. After careful 
consideration of these comments, and further review of the matter, 
Customs has determined not to proceed with the notice of proposed 
rulemaking to this effect that was published in the Federal Register 
(59 FR 13664) on March 23, 1994. Customs has concluded at this time 
that an additional fee should not be assessed in cases where a 
commercial importation or other Customs transaction is secured by a 
bond under which liquidated damages may properly be assessed for a 
defaulted payment of duties, taxes or other applicable charges. Customs 
authority to assess the $30 fee thus remains limited to defaulted 
payments on noncommercial importations and other transactions that are 
not supported by a bond.

Raymond W. Kelly,
Commissioner of Customs.
    Approved: November 9, 2000.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 01-3359 Filed 2-8-01; 8:45 am]
BILLING CODE 4520-02-P