[Federal Register Volume 67, Number 162 (Wednesday, August 21, 2002)]
[Proposed Rules]
[Pages 54137-54138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-21111]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 101


Consolidation of Customs Drawback Centers

AGENCY: Customs Service, Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations to 
reflect a planned closure of the Customs Drawback Centers located at 
the ports of Boston, Massachusetts; Miami, Florida; and New Orleans, 
Louisiana. Because of a sustained decrease in the number of drawback 
claims and the amount of drawback payments, Customs is proposing a 
consolidation of the Drawback Program. The closing of the three 
Drawback Centers is part of the planned consolidation and is intended 
to promote operational efficiency in the processing of drawback claims.

DATES: Comments must be received on or before September 20, 2002.

ADDRESSES: Written comments (preferably in triplicate) may be submitted 
to the U.S. Customs Service, Office of Regulations & Rulings, 
Attention: Regulations Branch, 1300 Pennsylvania Avenue NW., 
Washington, DC 20229. Submitted comments may be inspected at the U.S. 
Customs Service, 799 9th Street, NW., Washington, DC, during regular 
business hours. Arrangements to inspect submitted comments should be 
made in advance by calling Mr. Joseph Clark at (202) 572-8768.

FOR FURTHER INFORMATION CONTACT: Sherri Hoffman, U.S. Customs Service, 
Entry and Drawback Management, (202) 927-0300.

SUPPLEMENTARY INFORMATION:

Background

Consolidation of Drawback Centers

    Since 1996, Customs has recognized a decrease in both the number of 
drawback claims and the amount of drawback payments. To verify these 
trends, and to determine how to most efficiently operate the Drawback 
Program, Customs conducted an internal evaluation of the program. 
Customs also retained the services of an independent contractor to 
review the Drawback Program to ensure that the agency's findings were 
valid.
    The findings of both the agency-led review and the independent 
contractor's assessment indicated the benefits of consolidating the 
processing of drawback claims by reducing the number of Drawback 
Centers.
    In a Notice to Congress on March 12, 2001, filed in accordance with 
19 U.S.C. 2075, Customs proposed the closure of four Drawback Centers. 
The Senate Finance and House Ways and Means Committees concurred with 
the proposal for consolidation, but with the recommendation that only 
three Drawback Centers be eliminated and the San Francisco Drawback 
Center remain operational. The Commissioner of Customs concurred with 
this recommendation and it was proposed to phase-in the closure of the 
Drawback Centers located at the ports of Boston, MA; Miami, FL; and New 
Orleans, LA. The remaining five Drawback Centers, located at the ports 
of New York, NY/Newark, NJ; Houston, TX; Chicago, IL; Los Angeles, CA; 
and San Francisco, CA would remain operational.

Closing of Drawback Centers To Be Phased-In

    To assist the remaining five Drawback Centers in accommodating an 
increased number of drawback claims, it is proposed to phase-in the 
closing of the three Drawback Centers. If, after further consideration 
and review of any comments submitted in response to the solicitation of 
comments set forth in this document, Customs decides to adopt as a 
final rule these proposed changes, it is proposed to phase-in the 
closing of the Drawback Centers as follows:
    (1) The first Drawback Centers to close would be the centers at the 
ports of Boston, Massachusetts and New Orleans, Louisiana. These two 
centers would close 30 days from the date a final rule adopting these 
proposed changes is published in the Federal Register. At that time, 
drawback claims would no longer be accepted at the Boston or New 
Orleans Drawback Centers, and claims would be required to be filed at 
one of the five remaining Drawback Centers. Drawback claims submitted 
to the Boston or New Orleans Drawback Centers after this date would be 
rejected. Once rejected, it would be the responsibility of the claimant 
to ensure timely filing of the drawback claim at one of the five 
remaining Drawback Centers. Customs personnel at the ports of Boston 
and New Orleans would continue to process drawback claims that were 
submitted prior to commencement of this first phase-in period, for a 
period of 12-months. After this time, all remaining claims filed at the 
Boston Drawback Center prior to commencement of this first phase-in 
period, that have not been liquidated and require Customs review, would 
be forwarded to the New York/Newark Drawback Center for final 
processing. All remaining claims that were filed at the New Orleans 
Drawback Center prior to commencement of this first phase-in period, 
that have not been liquidated and require Customs review, would be 
forwarded to the Houston Drawback Center for final processing.
    (2) The third Drawback Center to close would be the one located at 
the port of Miami, Florida. This center would close 180 days from the 
date a final rule adopting these proposed changes is published in the 
Federal Register. At that time, drawback claims would no longer be 
accepted at the Miami Drawback Center, and claims would be required to 
be filed at one of the five remaining Drawback Centers. Drawback claims 
submitted to the Miami Drawback Center after this date would be 
rejected. Once rejected, it would be the responsibility of the claimant 
to ensure timely filing of the drawback claim at one of the five 
remaining Drawback Centers. Customs personnel at the port of Miami 
would continue to process drawback claims that were submitted prior to 
commencement of this second phase-in period, for a period of 12-months. 
After this time, all remaining claims filed at the Miami Drawback 
Center prior to commencement of this second phase-in period, that have 
not been liquidated and require Customs review, would be forwarded to 
the Chicago Drawback Center for final processing.

Claimant Requirements To File in Designated Alternate Drawback Centers

    In order to file a drawback claim at one of the five remaining 
Drawback Centers, a claimant would be required to possess either a 
district permit for the location at which the claim will be filed or a 
national permit. Claimants are reminded that a national permit requires 
use of the Automated Broker Interface of Customs Automated Commercial 
System when filing drawback claims. Claimants must ensure that all 
permit, license and bond requirements are met in accordance with the 
regulations. See parts 111 and 113 of the Customs Regulations.

[[Page 54138]]

Maintenance of Drawback Information

    Throughout the staged consolidation period, claimants would be 
required to provide Customs with advance notification of any changes in 
the information provided regarding a drawback claim. This notification 
must be provided in accordance with part 191 of the Customs Regulations 
(19 CFR part 191).

Explanation of Amendments

    Section 101.3(b)(1) of the Customs Regulations lists the Customs 
ports of entry. Eight ports are denoted with an asterisk that 
designates their status as a ``Drawback unit/office.'' This document 
proposes to amend Sec. 101.3(b)(1) to delete the asterisks in 
Sec. 101.3(b)(1) next to the port listings for Boston, Miami and New 
Orleans.

Comments

    Before adopting this proposal 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 a.m. and 4:30 p.m. at the 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service, 799 9th Street, NW., Washington, DC.

The Regulatory Flexibility Act and Executive Order 12866

    Although this document is being issued with notice for public 
comment, because it relates to agency management and organization, it 
is not subject to the notice and public procedure requirements of 5 
U.S.C. 553. Accordingly, this document is not subject to the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.).
    Agency organization matters, such as this proposed closing of three 
Customs Drawback Centers, are not subject to Executive Order 12866.

Drafting Information

    The principal author of this document was Ms. Suzanne Kingsbury, 
Office of Regulations and Rulings, U.S. Customs Service. However, 
personnel from other offices participated in its development.

List of Subjects in 19 CFR Part 101

    Customs duties and inspection, Customs ports of entry.

Proposed Amendments to the Regulations

    For the reasons stated above, it is proposed to amend part 101 of 
the Customs Regulations (19 CFR part 101) as follows:

PART 101--GENERAL PROVISIONS

    1. The general authority citation for part 101 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note 23, 
Harmonized Tariff Schedule of the United States), 1623, 1624, 1646a.

    Section 101.3 and 101.4 also issued under 19 U.S.C. 1 and 58b;
* * * * *
    2. In Sec. 101.3, the table in paragraph (b)(1) is amended by 
removing the plus sign in the ``Ports of entry'' column before the 
column listings for ``Miami'' under the state of Florida, ``New 
Orleans'' under the state of Louisiana, and ``Boston'' under the state 
of Massachusetts.

Robert C. Bonner,
Commissioner of Customs.
    Approved: August 15, 2002.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 02-21111 Filed 8-20-02; 8:45 am]
BILLING CODE 4820-02-P