[Federal Register Volume 67, Number 157 (Wednesday, August 14, 2002)]
[Rules and Regulations]
[Pages 52861-52862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20563]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 4

[T.D. 02-48]


Pleasure Vessels of Marshall Islands Entitled to Cruising 
Licenses

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations by adding the 
Marshall Islands to the list of countries whose pleasure vessels may be 
issued U.S. cruising licenses. Customs has been informed that yachts 
used and

[[Page 52862]]

employed exclusively as pleasure vessels belonging to any resident of 
the U.S. are allowed to arrive at and depart from the Marshall Islands 
ports and cruise in the waters of the Marshall Islands without being 
subject to formal entry and clearance procedures. Therefore, Customs is 
extending reciprocal privileges to Marshall Islands-flag pleasure 
vessels.

EFFECTIVE DATES: These reciprocal privileges became effective for the 
Marshall Islands on July 9, 2002. This amendment is effective August 
14, 2002.

FOR FURTHER INFORMATION CONTACT: Glen Vereb, Entry Procedures and 
Carriers Branch, (202) 572-8730.

SUPPLEMENTARY INFORMATION:

Background

    Section 4.94(a), Customs Regulations (19 CFR 4.94(a)), provides 
that U.S. documented vessels with a recreational endorsement, used 
exclusively for pleasure, not engaged in any trade, and not violating 
the Customs or navigation laws of the U.S., may proceed from port to 
port in the U.S. or to foreign ports without entering or clearing, as 
long as they have not visited hovering vessels. When returning from a 
foreign port or place, such pleasure vessels are required to report 
their arrival pursuant to Sec. 4.2, Customs Regulations (19 CFR 4.2).
    Generally, foreign-flag yachts entering the U.S. are required to 
comply with the laws applicable to foreign vessels arriving at, 
departing from, and proceeding between ports of the U.S. However, as 
provided in Sec. 4.94(b), Customs Regulations (19 CFR 4.94(b)), Customs 
may issue cruising licenses to pleasure vessels from certain countries 
if it is found that yachts of the United States are exempt from formal 
entry and clearance procedures (e.g., filing manifests, obtaining 
permits to proceed and paying entry and clearance fees) in those 
countries.
    If a foreign-flag yacht is issued a cruising license, the yacht, 
for a stated period not to exceed one year, may arrive and depart from 
the United States and to cruise in specified waters of the United 
States without entering and clearing, without filing manifests and 
obtaining or delivering permits to proceed, and without the payment of 
entrance and clearance fees, or fees for receiving manifests and 
granting permits to proceed, duty on tonnage, tonnage tax, or light 
money. Upon arrival at each port in the U.S., the master of a foreign-
flag yacht with a cruising license must report the fact of arrival to 
the appropriate Customs office. A list of countries whose yachts are 
eligible for cruising licenses is set forth in Sec. 4.94(b).
    By an exchange of diplomatic notes between the Government of the 
Marshall Islands and the United States Department of State, the 
Marshall Islands and the United States agree to extend to yachts of 
each other's country reciprocal privileges. Accordingly, U.S.-flag 
yachts, used exclusively as pleasure vessels and belonging to any 
resident of the U.S., may arrive at and depart from Marshall Islands 
ports and to cruise the waters of the Marshall Islands without entering 
and clearing the Marshall Islands Customs and without payment of any 
charges for entering or clearing, dues, duty per ton, tonnage taxes, or 
charges for cruising licenses. Marshall Islands yachts will be entitled 
to reciprocal privileges in the United States.
    On July 22, 2002, the Department of State advised the Acting Chief, 
Entry Procedures and Carriers Branch, U.S. Customs Service, of the 
agreement between the United States and the Marshall Islands, which 
became effective July 9, 2002. The Acting Chief, Entry Procedures and 
Carriers Branch, is of the opinion that satisfactory evidence has been 
furnished to establish the reciprocity required in Sec. 4.94(b), 
effective July 9, 2002. Accordingly, the Marshall Islands is added to 
the list of countries set forth in Sec. 4.94(b). The authority to amend 
this section of the Customs Regulations has been delegated to the 
Chief, Regulations Branch.

Inapplicability of Public Notice and Delayed Effective Date 
Requirements, the Regulatory Flexibility Act and Executive Order 
12866

    Because this amendment merely implements a statutory requirement 
and confers a benefit upon the public, pursuant to 5 U.S.C. 553(b)(B), 
notice and public procedure are unnecessary for this amendment. 
Further, for the same reasons, good cause exists for the dispensing 
with a delayed effective date under 5 U.S.C. 553(d)(1) and (3). Since 
this document is not subject to notice and public procedure 
requirements of 5 U.S.C. 553, it is not subject to the provisions of 
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This document 
does not meet the criteria for a ``significant regulatory action'' as 
specified in Executive Order 12866.

Drafting Information

    The principal author of this document was Janet Johnson, 
Regulations Branch, U.S. Customs Service. However, personnel from other 
offices participated in its development.

List of Subjects in 19 CFR Part 4

    Customs duties and inspection, Maritime carriers, Vessels, Yachts.

Amendment to the Regulations

    To reflect the reciprocal privileges granted to vessels registered 
in the Marshall Islands, Part 4, Customs Regulations (19 CFR Part 4), 
is amended as set forth below.

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

    1. The general authority for Part 4 and the specific authority for 
Sec. 4.94 continue 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 4.94 also issued under 19 U.S.C. 1441; 46 U.S.C. App. 104.
* * * * *

    2. Section 4.94(b), Customs Regulations (19 CFR 4.94(b)), is 
amended by inserting, in appropriate alphabetical order, ``Marshall 
Islands'' in the list of countries.

    Dated: August 8, 2002.
Harold M. Singer,
Chief, Regulations Branch.
[FR Doc. 02-20563 Filed 8-13-02; 8:45 am]
BILLING CODE 4820-02-P