[Federal Register Volume 67, Number 231 (Monday, December 2, 2002)]
[Proposed Rules]
[Pages 71510-71512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-30356]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 101 and 122


Customs Service Field Organization; Fargo, North Dakota

AGENCY: Customs Service, Treasury.

[[Page 71511]]


ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations 
pertaining to Customs field organization by establishing a new port of 
entry at Fargo, North Dakota. The new port of entry would include 
Hector International Airport, located in the city of Fargo, Cass 
County, North Dakota, which is currently operated as a user-fee 
airport, and a portion of Clay County in Minnesota. This change will 
assist the Customs Service in its continuing efforts to provide better 
service to carriers, importers, and the general public.

DATES: Comments must be received on or before January 31, 2003.

ADDRESSES: Written comments may be addressed to the U.S. Customs 
Service, Office of Regulations and Rulings, Attention: Regulations 
Branch, 1300 Pennsylvania Avenue, NW., Washington, DC 20229. Submitted 
comments may be inspected at 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: Richard L. Balaban, Mission Support, 
Office of Field Operations, (202) 927-0031.

SUPPLEMENTARY INFORMATION:

Background

    As part of its continuing efforts to provide better service to 
carriers, importers, and the general public, Customs is proposing to 
amend Sec.  101.3(b)(1) of the Customs Regulations (19 CFR 101.3(b)(1)) 
by establishing a new port of entry at Fargo, North Dakota. The new 
port of entry would include Hector International Airport, located in 
the city of Fargo, Cass County, North Dakota, which currently operates 
and is listed as a user-fee airport at Sec.  122.15(b) of the Customs 
Regulations (19 CFR 122.15(b)). A portion of Clay County in Minnesota 
would also be part of the proposed port. This proposed change of status 
for Hector International Airport from a user fee airport to being 
included within the boundaries of a port of entry would subject the 
airport to the passenger processing fee provided for at 19 U.S.C. 
58c(a)(5)(B).

Port of Entry Criteria

    The criteria considered by Customs in determining whether to 
establish a port of entry are found in T.D. 82-37 (47 FR 10137), as 
revised by T.D. 86-14 (51 FR 4559) and T.D. 87-65 (52 FR 16328). Under 
these criteria, Customs will evaluate whether there is a sufficient 
volume of import business (actual or potential) to justify the expense 
of maintaining a new office or expanding service at an existing 
location. Specifically, Customs will consider if the proposed port of 
entry location can:
    (1) Demonstrate that the benefits to be derived justify the Federal
    Government expense involved;
    (2) Except in the case of land border ports, be serviced by at 
least two major modes of transportation (rail, air, water, or highway); 
and
    (3) Except in the case of land border ports, have a minimum 
population of 300,000 within the immediate service area (approximately 
a 70-mile radius).
    In addition, at least one of the following actual or potential 
workload criteria (minimum number of transactions per year) must be met 
in the area to be serviced by the proposed port of entry:
    (1) 15,000 international air passengers;
    (2) 2,500 (formal) consumption entries, with the applicant location 
committing to optimal use of electronic data input means to permit 
integration with any Customs system for electronic processing of 
entries, with no more than half of the 2,500 entries being attributed 
to one private party;
    (3) For land border ports, 150,000 vehicles;
    (4) 2,000 scheduled international aircraft arrivals (passengers 
and/or crew);
    (5) 350 cargo vessel arrivals; or
    (6) Any appropriate combination of the above.
    Finally, facilities at the proposed port of entry must include, 
where appropriate, wharfage and anchorage adequate for oceangoing 
vessels in the case of a water port, cargo and passenger facilities, 
warehouse space for the secure storage of imported cargo pending final 
Customs inspection and release, and administrative office space, 
inspection areas, storage areas, and other space as necessary for 
regular Customs operations.
    In certain cases, where the potential workload at a given location 
shows pronounced growth, Customs will consider granting conditional 
port-of-entry status to the location, pending further review of the 
actual workload generated within the new port of entry. See T.D. 96-3 
and 97-64.

Fargo's Workload Statistics

    The proposal in this document to establish Fargo, North Dakota as a 
port of entry is based on Customs analysis of the following 
information:
    1. Fargo is serviced by three modes of transportation:
    (a) Rail (the Burlington Northern Santa Fe railroad);
    (b) air (at Hector International Airport, two passenger carriers 
(Northwest and United Express) and five courier-delivery carriers (Air 
Bourne Express, Corporate Express, DHL, FED EX, and UPS); and
    (c) highway (two U.S. interstate highways: I-29 and I-94);
    2. The Fargo, North Dakota area has a population of approximately 
175,000, with the potential to increase even further;
    3. Regarding the five actual or potential workload criteria:
    (a) Hector International Airport had 2,911 international air 
passengers for FY 2001, an increase of 61% over FY 2000;
    (b) Hector International Airport had 151 formal consumption entries 
for FY 2001, with no single company accounting for more than half of 
the projected entries; and
    (c) Hector International Airport had 814 scheduled international 
aircraft arrivals for FY 2001, an increase of 65% over FY 2000.
    Customs believes that significant benefits would be provided to the 
North Dakota business community by creating a port of entry at Fargo 
and that the cost of providing the services of one full-time and one 
part-time Customs official would be minimal to the Federal Government.
    Customs believes that the Fargo-area community is committed to 
making optimal use of electronic data transfer capability to permit 
integration with the Customs Automated Commercial System for processing 
entries. In addition, Customs has been informed that the Fargo-area 
community is developing adequate cargo and passenger facilities, that 
passenger areas can be secured to accommodate international arrival 
passenger clearance, and that there are several warehouse facilities in 
close proximity to Hector International Airport that are being 
developed for the secure storage of cargo pending inspection and 
release by Customs. The Fargo-area community is also committed to 
providing administrative office space, inspection areas, storage areas, 
and other space necessary for regular Customs operations and will also 
furnish the Customs office with necessary communications equipment such 
as a computer, a telephone, a facsimile machine, and computer lines as 
well as access to photocopiers.

[[Page 71512]]

Conditional Status

    Based on the information above and the level and pace of 
development in the Fargo area, Customs believes that there is 
sufficient justification for the establishment of Fargo, North Dakota, 
as a port of entry on a conditional basis. If, after reviewing the 
public comments, Customs decides to create a port of entry at Fargo and 
terminate Hector International Airport's designation as a user-fee 
airport, then Customs will notify the airport of that determination in 
accordance with the provisions of 19 CFR 122.15(c). However, it is 
noted that this proposal relies on potential, rather than actual, 
workload figures. Therefore, even if the proposed port of entry 
designation is adopted as a final rule, in 1 year Customs will review 
the actual workload generated within the new port of entry. If that 
review indicates that the actual workload is below the T.D. 82-37 
standards, as amended, procedures may be instituted to revoke the port 
of entry status. In such case, the airport may reapply to become a 
user-fee airport under the provisions of 19 U.S.C. 58b.

Description of Proposed Port of Entry Limits

    The geographical limits of the proposed Fargo port of entry would 
be as follows:

In Cass County, North Dakota: Northern boundary Cass County highway 20, 
Southern boundary U.S. Interstate 94, Western boundary U.S. Interstate 
29
In Clay County, Minnesota: Northern boundary Clay County highway 22, 
Southern boundary U.S. Interstate 94, Eastern boundary Clay County 
highway 11

Proposed Amendments

    If the proposed port of entry designation is adopted, the list of 
Customs ports of entry at Sec.  101.3(b)(1) will be amended to add 
Fargo as a port of entry in North Dakota, and Hector International 
Airport will be deleted from the list of user-fee airports at Sec.  
122.15(b).

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.  1.5 of the Treasury Department Regulations (31 CFR 1.5), 
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 Arrangements to inspect 
submitted comments should be made in advance by calling Mr. Joseph 
Clark at (202) 572-8768.

Authority

    This change is proposed under the authority of 5 U.S.C. 301 and 19 
U.S.C. 2, 66, and 1624.

The Regulatory Flexibility Act and Executive Order 12866

    Customs routinely establishes, expands, and consolidates Customs 
ports of entry throughout the United States to accommodate the volume 
of Customs-related activity in various parts of the country. Although 
this document is being issued with notice for public comment, it is not 
subject to the notice and public procedure requirements of 5 U.S.C. 553 
because it relates to agency management and organization. Accordingly, 
this document is not subject to the provisions of the Regulatory 
Flexibility Act (5 U.S.C 601 et seq.). Further, matters involving 
agency management and organization are not subject to Executive Order 
12866.

Drafting Information

    The principal author of this document was Gregory R. Vilders, 
Attorney, Office of Regulations and Rulings, Regulations Branch. 
However, personnel from other offices participated in its development.

Robert C. Bonner,
Commissioner of Customs.
    Approved: November 25, 2002.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 02-30356 Filed 11-29-02; 8:45 am]
BILLING CODE 4820-02-P