[Federal Register Volume 66, Number 84 (Tuesday, May 1, 2001)]
[Proposed Rules]
[Pages 21705-21707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10718]



[[Page 21705]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 4, 24, 101

RIN 1515-AC63


User and Navigation Fees; Other Reimbursement Charges

AGENCY: Customs Service, Department of the Treasury.

ACTION: Proposed rule.

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

SUMMARY: This document proposes to amend the Customs Regulations 
regarding the proper assessment of user and navigation fees, as well as 
other reimbursement charges for Customs services performed in 
connection with, among other things, the processing of vehicles, 
vessels, aircraft and merchandise arriving in the United States. It is 
believed that the proposed amendments would conform the regulations 
with the intent of the Customs user fee statute. The proposed 
amendments also reflect existing operational policy and administrative 
practice in this area.

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

ADDRESSES: Written comments may be addressed to and inspected at the 
Regulations Branch, U.S. Customs Service, 1300 Pennsylvania Avenue, 
NW., 3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT Kimberly Nott, Office of Field 
Operations, 202-927-1364.

SUPPLEMENTARY INFORMATION:

Background

    The Customs user fee statute, codified at 19 U.S.C. 58c, authorizes 
a schedule of fees that are chargeable to users of various services 
provided by Customs in connection with the activities that are listed 
in section 58c(a). Under the user fee statute, in pertinent part, a fee 
is charged to reimburse the Government for Customs services that are 
provided, among other things, for processing certain vehicles, vessels, 
aircraft and merchandise that arrive in the United States. In 
particular, a user fee is charged for Customs services that are 
provided in connection with the arrival of a commercial vessel of 100 
net tons or more (19 U.S.C. 58c(a)(1)), and in connection with the 
arrival of a private vessel or private aircraft (19 U.S.C. 58c(a)(4)).

Definition of Arrival for Purposes of the User Fee Statute

    For purposes of the applicability of a user fee for providing 
Customs services in connection with the arrival of a vessel or aircraft 
as described above, the statute generally defines the term arrival'' as 
being an arrival that occurs within a port of entry in the Customs 
territory of the United States (19 U.S.C. 58c(c)(2)). Each Customs port 
of entry has specific geographical limits that are defined by 
regulation (19 CFR 101.3(b)).
    Section 58c is implemented by Sec. 24.22, Customs Regulations (19 
CFR 24.22). Section 24.22(a)(2), however, defines the term arrival'' as 
being an arrival within a Customs port of entry or any place serviced 
by any such port. Customs has concluded that this definition of arrival 
is overbroad and conflicts with a more suitable definition of arrival 
in section 58c, which, on its face, clearly does not mean to require 
the assessment of a user fee at every location serviced by Customs.
    Accordingly, Customs proposes to amend Sec. 24.22(a)(2) to define 
an arrival as occurring at any place within the limits of a Customs 
port of entry or at a designated Customs station. A Customs station is 
any place other than a port of entry where Customs officers or 
employees are lawfully stationed to enter and clear vessels, accept 
entries of merchandise, collect duties, and enforce the various 
provisions of the Customs and navigation laws of the United States (19 
CFR 101.1). However, under the proposed amendment, for purposes of the 
applicability of user fees in accordance with 19 U.S.C. 58c(c)(2), a 
Customs station would essentially be considered as the functional 
equivalent of a Customs port of entry. The definition of ``Customs 
station'' in Sec. 101.1, Customs Regulations (19 CFR 101.1) would be 
amended to conform with this.
    A list of places that have been designated as Customs stations 
appears in Sec. 101.4(c), Customs Regulations (19 CFR 101.4(c)); also, 
Customs stations may be temporarily designated as such by the port 
director as provided in Sec. 101.4(d), Customs Regulations (19 CFR 
101.4(d)).
    Customs believes that the definition of arrival in proposed 
Sec. 24.22(a)(2) would conform with the intent of the user fee statute. 
Moreover, it reflects existing Customs operational policy and 
administrative practice in this area. Further, the definition would 
simplify the collection of user fees by listing the specific locations 
where only these fees are applicable and must be assessed for Customs 
services.
    In this latter respect, where user fees are assessed under section 
58c, the law is quite clear that no charges other than user fees may be 
collected to reimburse the Government for any cargo inspection, 
clearance, or other Customs activity, expense or service performed 
(even on an overtime basis); or for any Customs personnel provided in 
connection with the arrival or departure of a commercial vessel, or its 
passengers, crew, stores, material, or cargo, for the United States (19 
U.S.C. 58c(e)(6)(A)(i) and (ii)).

User Fees, Navigation Fees, Other Reimbursement Charges; Arrival of 
Commercial Vessel

    In cases where Customs user fees do not apply, the cost of Customs 
services is reimbursable to the Government under the circumstances and 
to the extent otherwise specifically authorized in the law. The 
specific circumstances where the cost of Customs services would be 
otherwise reimbursable to the Government are described in Sec. 24.17, 
Customs Regulations (19 CFR 24.17). Furthermore, certain navigation 
fees for vessels, as listed in Sec. 4.98, Customs Regulations (19 CFR 
4.98), may be assessed as well, to the extent they are also applicable 
(19 CFR 24.21(b)(1)).
    The services listed in Sec. 4.98(a)(1) for which a navigation fee 
is applicable relate to the arrival of any vessel. However, 
Sec. 4.98(a) would conflict with proposed Sec. 24.22(a)(2), and with 
the user fee statute, insofar as it also requires the collection of a 
navigation fee for Customs services that are provided in connection 
with the arrival of a commercial vessel of 100 net tons or more or any 
private vessel in a Customs port of entry or a designated Customs 
station where, as already mentioned, a user fee would apply (19 U.S.C. 
58c(a)(1)). The user fee would of course include Customs services as 
enumerated in Sec. 4.98(a)(1). Accordingly, it is proposed to amend the 
introductory text of paragraph (a)(1) in Sec. 4.98 to exclude the 
assessment of navigation fees on commercial vessels of 100 net tons or 
more and on any private vessels that arrive within a Customs port of 
entry or a designated Customs station, where user fees would apply to 
these vessels.
    In addition, Sec. 24.17(a)(4), Customs Regulations (19 CFR 
24.17(a)(4)), currently requires that the owner, master, or agent of a 
vessel sought to be entered must reimburse the Government for the 
salary and expenses of any Customs officer or employee stationed at or 
sent to a designated Customs station or any other place that is not a 
port of entry for services rendered in connection with the entry or 
clearance of the vessel.
    As such, Sec. 24.17(a)(4) would also be in conflict with the 
definition of arrival in proposed Sec. 24.22(a)(2), and with the

[[Page 21706]]

user fee statute, to the extent that it requires reimbursement other 
than user fees at a designated Customs station. Accordingly, it is 
proposed to revise Sec. 24.17(a)(4) to require reimbursement for 
services afforded by Customs at any place that is not a port of entry 
or a designated Customs station. For the same reason, Secs. 24.17(a)(5) 
and 101.4(b)(3) would be similarly revised.

User Fees, Other Reimbursement Charges; Arrival of Private Vessel 
or Private Aircraft

    Section 58c(a)(4), as noted, provides for an annual user fee to 
cover Customs services that must be furnished in processing the arrival 
of a private vessel or private aircraft. Section 24.22(e)(1), which 
implements this provision, requires, however, that, notwithstanding 
payment of the user fee under section 58c, all overtime charges 
provided for Customs services remain payable as well. Again, as 
previously discussed, the user fee statute precludes the assessment of 
other charges, including charges for overtime services, where user fees 
are applicable (19 U.S.C. 58c(e)(6)(A)(i)). Accordingly, it is proposed 
to amend Sec. 24.22(e)(1) by removing the provision allowing for the 
collection of overtime charges.

Comments

    Before adopting this proposal as a final rule, consideration will 
be given to any written comments that are timely submitted to Customs. 
Customs specifically requests 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, Treasury Department 
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, U.S. Customs Service, 1300 
Pennsylvania Avenue, NW., 3rd Floor, Washington, DC.

Regulatory Flexibility Act and Executive Order 12866

    The proposed amendments are intended to conform with statutory law, 
reflect existing Customs operational policy and administrative 
practice, and simplify the collection of user fees by listing the 
specific locations where only these fees are applicable and must be 
assessed for Customs services. Accordingly, it is certified, in 
accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), 
that, if adopted, the proposed rule will not have a significant 
economic impact on a substantial number of small entities. Nor do the 
proposed amendments meet the criteria for a ``significant regulatory 
action'' under E.O. 12866.

List of Subjects

19 CFR Part 4

    Arrival, Cargo vessels, Common carriers, Customs duties and 
inspection, Entry, Fees, Fishing vessels, Freight, Harbors, Imports, 
Landing, Maritime carriers, Merchandise, Passenger vessels, Reporting 
and recordkeeping requirements, Shipping, Vessels.

19 CFR Part 24

    Customs duties and inspection, Fees, Harbors, Reporting and 
recordkeeping requirements, User fees.

19 CFR Part 101

    Customs duties and inspection, Customs ports of entry, Harbors, 
Reporting and recordkeeping requirements, User fees.

Proposed Amendments to the Regulations

    It is proposed that parts 4, 24, and 101, Customs Regulations (19 
CFR parts 4, 24, and 101) be amended as set forth below.

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

    1. The general authority citation for part 4 would continue to read 
as follows, and the specific authority citation for Sec. 4.98 would be 
revised to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624; 
46 U.S.C. App. 3, 91;
* * * * *
    Section 4.98 also issued under 19 U.S.C. 58a;
* * * * *
    2. It is proposed to amend Sec. 4.98 by revising the introductory 
text of paragraph (a)(1) to read as follows:


Sec. 4.98  Navigation fees.

    (a)(1) The Customs Service will publish a General Notice in the 
Federal Register and Customs Bulletin periodically, setting forth a 
revised schedule of navigation fees for the following services provided 
to commercial vessels of 100 net tons or more and any private vessels 
that arrive at a place other than a Customs port of entry or a 
designated Customs station and to commercial vessels of less than 100 
net tons that arrive anywhere in the United States, including a Customs 
port of entry or a designated Customs station:
* * * * *

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

    1. The general and relevant specific authority citations for part 
24 would 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 24.17 also issued under 19 U.S.C. 261, 267, 1450, 1451, 
1452, 1456, 1524, 1557, 1562; 46 U.S.C. 2110, 2111, 2112 ;
* * * * *
    2. It is proposed to amend Sec. 24.17 by revising the first 
sentence of paragraph (a)(4) and by revising paragraph (a)(5) to read 
as follows:


Sec. 24.17  Reimbursable services of Customs employees.

    (a) * * *
    (4) When a Customs employee is assigned pursuant to Sec. 101.4 of 
this chapter to a place which is not a port of entry or a designated 
Customs station for service in connection with the entry or clearance 
of a vessel, the owner, master, or agent of the vessel will be charged 
the full compensation and authorized travel and subsistence expenses of 
such employee from the time he leaves his official station until he 
returns. * * *
    (5) When a Customs employee is assigned under the authority of 
section 447, Tariff Act of 1930, to make entry of a vessel at a place 
other than a port of entry or designated Customs station or to 
supervise the unlading of cargo, the private interest will be charged 
the full compensation and authorized travel and subsistence expenses of 
such employee from the time he leaves his official station until he 
returns.
* * * * *
    3. It is proposed to amend Sec. 24.22 by revising paragraph (a)(2) 
to read as set forth below; and by removing the last sentence of 
paragraph (e)(1):


Sec. 24.22  Fees for certain services.

    (a) Definitions. * * *
* * * * *
    (2) The term arrival means arrival at any place within the limits 
of a port of entry in the Customs territory of the United States, at 
any designated Customs station as listed in Sec. 101.4(c) of this 
chapter, or at any temporary Customs station designated by the port 
director under Sec. 101.4(d) of this chapter.
* * * * *

[[Page 21707]]

PART 101--GENERAL PROVISIONS

    1. The general and relevant specific sectional authority citations 
for part 101 would continue to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States), 1623, 1624, 1646a.

    Sections 101.3 and 101.4 also issued under 19 U.S.C. 1 and 58b;
* * * * *
    2. It is proposed to amend Sec. 101.1 by revising the definition 
for ``Customs station'' to read as follows:


Sec. 101.1  Definitions.

* * * * *
    Customs station. Other than for purposes of assessing user fees 
under 19 U.S.C. 58c where a ``Customs station'' is the functional 
equivalent of a port of entry, a ``Customs station'' is any place, 
other than a port of entry, at which Customs officers or employees are 
stationed, under the authority contained in article IX of the 
President's Message of March 3, 1913 (T.D. 33249), to enter and clear 
vessels, accept entries of merchandise, collect duties, and enforce the 
various provisions of the Customs and navigation laws of the United 
States.
* * * * *
    3. It is proposed to amend Sec. 101.4 by revising the section 
heading, paragraph (b), introductory text, and paragraph (b)(3) to read 
as follows:


Sec. 101.4  Entry and clearance of vessels at Customs stations and 
places other than a port of entry.

* * * * *
    (b) Authorization to enter. Authorization to enter or be cleared at 
a Customs station, or any other place that is not a port of entry, will 
be granted by the director of the port under whose jurisdiction the 
station or place falls provided the port director is notified in 
advance of the arrival of the vessel concerned and the following 
conditions are met:
* * * * *
    (3) The owner, master, or agent of a vessel sought to be entered at 
a place other than a port of entry or designated Customs station 
reimburses the Government for the salary and expenses of the Customs 
officer or employee stationed at or sent to such other place which is 
not a port of entry or a designated Customs station for services 
rendered in connection with the entry or clearance of the vessel, and
* * * * *

Raymond W. Kelly,
Commissioner of Customs.
    Approved: October 26, 2000.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 01-10718 Filed 4-30-01; 8:45 am]
BILLING CODE 4820-02-P