[Federal Register Volume 66, Number 181 (Tuesday, September 18, 2001)]
[Notices]
[Pages 48170-48171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23196]


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DEPARTMENT OF THE TREASURY

Customs Service

[T.D. 01-65]


Delegation of Authority To Acknowledge Waivers of the Statute of 
Limitations

AGENCY: Customs Service, Department of the Treasury.

ACTION: General notice.

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SUMMARY: This notice announces that, effective January 1, 2001, Customs 
Headquarters has delegated to Fines, Penalties and Forfeitures 
(``FP&F'') Officers in the servicing Customs ports the authority, with 
a noted exception, to acknowledge waivers of the statute of limitations 
from parties who might otherwise be entitled to assert the statute of 
limitations as a defense against civil suit. The delegated authority 
does not extend to situations where the FP&F Officer has already 
referred to Customs Headquarters a pending petition, supplemental 
petition, offer, or other matter relating to an existing penalty or 
forfeiture case.

DATES: The delegation of authority to acknowledge waivers of the 
statute of limitations went into effect January 1, 2001.

ADDRESSES: Corporations and individuals submitting statute of 
limitations waivers should address the waivers to the Fines, Penalties 
and Forfeitures Officer of the servicing Customs port.

FOR FURTHER INFORMATION CONTACT: Alan Cohen, Penalties Branch, Office 
of Regulations and Rulings, U.S. Customs Service, (202) 927-1503.

SUPPLEMENTARY INFORMATION:

Background

    Section 621 of the Tariff Act of 1930, as amended (19 U.S.C. 1621), 
is the statute of limitations for the Government to initiate judicial 
proceedings to enforce the collection of a monetary penalty or 
forfeiture of property accruing under the customs laws. Pursuant to 19 
U.S.C. 1621, the Government, as a general rule, must initiate such 
judicial proceedings within 5 years from the time that an alleged 
offense is discovered, or in the case of forfeiture, within 2 years 
after the time when the involvement of the property in the event was 
discovered, whichever is later. For non-fraudulent violations of 19 
U.S.C. 1592 or 1593a, however, the Government must initiate judicial 
proceedings within 5 years from the date of the alleged violation. For 
violations of 19 U.S.C. 1592 or 1593a arising out of fraud, the 
Government must commence suit within 5 years from the date of discovery 
of fraud.
    The administrative procedures established by 19 U.S.C. 1592(b) and 
1618, and implemented by parts 162 and 171 of the Customs Regulations 
(19 CFR parts 162 and 171), set forth the manner by which certain 
penalty and forfeiture actions are processed. In certain circumstances, 
Customs will shorten the time in which a party has to provide 
information to Customs or petition for relief in order to ensure that 
Customs can administratively pursue the penalty or forfeiture action 
before the statute of limitations expires. For example, Secs. 162.78(a) 
and 171.2(e) of the Customs Regulations (19 CFR 162.78(a) and 171.2(e)) 
provide a Fines, Penalties & Forfeitures (``FP&F'') Officer with 
authority to shorten the time a party has to respond to pre-penalty and 
penalty notices if there is a short period of time remaining before the 
statute of limitations expires.
    A party may wish to waive the statute of limitations for a period 
of time so that the administrative process may continue in an orderly 
fashion. A waiver of the statute of limitations may provide a party 
with additional time to respond to a pre-penalty, penalty or seizure 
notice, and promote final disposition of the matter by administrative 
means without resorting to judicial action.
    In T.D. 69-126, dated May 20,1969, at paragraphs (1)(A)(b)(2) and 
(3), the

[[Page 48171]]

Director, Division of Entry Procedures and Penalties, Office of 
Regulations and Rulings, U.S. Customs Service, was delegated the 
authority to make decisions with regard to certain penalty claims. 
Inherent in this delegation is the authority to acknowledge a waiver of 
the statute of limitations.
    The functions of the Director, Division of Entry Procedures and 
Penalties, regarding penalty and forfeiture matters now reside with the 
Director, International Trade Compliance Division, pursuant to the 
reorganization of the Office of Regulations and Rulings which was 
effective December 30, 1990.
    In a Customs memorandum referenced 635783 ACC, dated December 22, 
2000, the Director, International Trade Compliance Division, notified 
all FP&F Officers that, effective January 1, 2001, they are delegated 
the authority to provide acknowledgement of legally sufficient waivers, 
except where the FP&F Officer has referred to Customs Headquarters a 
pending petition, supplemental petition, offer, or other matter 
relating to an existing penalty or forfeiture case. In this situation, 
the FP&F Officer will continue to forward waivers to Customs 
Headquarters for consideration.
    Corporations and individuals submitting statute of limitations 
waivers to Customs should address their submissions to the FP&F Officer 
of the servicing Customs port, and should no longer submit waivers to 
Customs Headquarters.

    Dated: September 12, 2001.
Sandra L. Bell,
Director, International Trade Compliance Division, Office of 
Regulations and Rulings.
[FR Doc. 01-23196 Filed 9-17-01; 8:45 am]
BILLING CODE 4820-02-P