[Federal Register Volume 68, Number 55 (Friday, March 21, 2003)]
[Rules and Regulations]
[Pages 13819-13820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6754]


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

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 4

[T.D. 03--11]
RIN 1515-AD25


Compliance With Inflation Adjustment Act

AGENCY: Customs Service, Department of the Treasury.

ACTION: Final rule.

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

SUMMARY: Pursuant to the Federal Civil Penalties Inflation Adjustment 
Act of 1990, (the Act), each Federal agency is required to adjust for 
inflation any civil monetary penalty covered by the Act that may be 
assessed in connection with violations of those statutes that the 
agency administers. While civil monetary penalties assessed by Customs 
under any provisions of the Tariff Act of 1930 are specifically 
exempted from the Act, Customs does administer two statutory provisions 
which provide for the assessment of civil monetary penalties that are 
covered by the Act. One statute concerns the transportation of 
passengers between ports or places in the United States; the other 
concerns the coastwise towing of vessels. The amount of the penalty 
that may be assessed for violations incurred under those statutes needs 
to be adjusted for inflation. Accordingly, Customs is amending its 
regulations in order to adjust the covered penalty amounts for 
inflation in compliance with the provisions of the Act.

EFFECTIVE DATE: March 21, 2003.

FOR FURTHER INFORMATION CONTACT: Jeremy Baskin, Penalties Branch, 
Office of Regulations and Rulings, (202-572-8750).

SUPPLEMENTARY INFORMATION:

Background

    The Federal Civil Penalties Inflation Adjustment Act of 1990 
(hereinafter, the Act), which is codified at 28 U.S.C. 2461 note, and 
which was amended in 1996 by the Debt Collection Improvement Act (Pub. 
L. 104-134, section 31001(s); 110 Stat. 1321-373), provides that each 
Federal agency must adjust for inflation any civil monetary penalties 
covered by the Act that are assessed in connection with violations that 
are incurred under those statutes that the agency administers. To this 
end, pursuant to the Act, as amended by the Debt Collection Improvement 
Act, the responsible Federal agency was required, by October 23, 1996, 
to make an initial inflationary adjustment to any civil monetary 
penalty covered by the Act; and each agency was then required to make 
these necessary inflationary adjustments at least once every 4 years 
thereafter.
    The Act expressly exempts from its coverage any penalties that 
Customs may assess for violations that are incurred under any provision 
of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et seq.). 
However, Customs does administer two statutes that are subject to the 
Act; and the penalties that Customs may assess for violations of these 
statutes have not previously been adjusted for inflation as required by 
the Act.

[[Page 13820]]

    Specifically, the two statutes administered by Customs that are 
subject to the Act are 46 U.S.C. App. 289 and 46 U.S.C. App. 316(a). 
Section 289 prohibits foreign vessels from transporting passengers 
between ports or places in the United States; the penalty assessed 
under 46 U.S.C. App. 289 is $200 for every passenger transported in 
violation of the statute (Sec.  4.80(b)(2), Customs Regulations (19 CFR 
4.80(b)(2))). Section 316(a) prohibits certain vessels from towing any 
vessel, other than a vessel in distress, between ports or places in the 
United States embraced within the coastwise laws; the penalties 
assessed for violations of 46 U.S.C. App. 316(a) are a minimum of $250 
to a maximum of $1,000 per violation, plus $50 per ton on the 
measurement of every vessel towed in violation of the statute (Sec.  
4.92, Customs Regulations (19 CFR 4.92)).
    Section 5 of the Act (28 U.S.C. 2461 note, section 5) provides that 
civil monetary penalties must be adjusted based upon the cost of 
living, either by increasing the maximum civil monetary penalty or by 
increasing the range of minimum and maximum penalties for each civil 
monetary penalty, as appropriate. Any increase determined under section 
5 of the Act is to be rounded to the nearest multiple of $10 in the 
case of penalties less than or equal to $100, and multiples of $100 in 
the case of penalties greater than $100 or less than or equal to 
$1,000.
    In calculating the specific amount of the adjustment to any civil 
monetary penalty covered by the Act, section 5 required that the first 
such adjustment, which was to be made by October 23, 1996, could not 
exceed 10 percent of the penalty. Thereafter, in determining the proper 
adjustment to any civil monetary penalty covered by the Act, section 5 
provides for a cost-of-living adjustment that would be determined based 
on the percentage by which the Consumer Price Index (CPI) for the month 
of June of the calendar year preceding the adjustment exceeds the CPI 
for the month of June of the calendar year in which the amount of such 
civil monetary penalty was last set or adjusted pursuant to law.
    Hence, consistent with the provisions of Section 5 of the Act, as 
described, the civil penalty for violating 46 U.S.C. App. 289 is 
adjusted to $300 for every passenger transported in violation of the 
statute; and the civil penalties for violating 46 U.S.C. App. 316(a) 
are adjusted to a minimum of $350 and a maximum of $1,100, plus $60 per 
ton on the measurement of every vessel towed in violation of the 
statute.
    Accordingly, this document amends Sec. Sec.  4.80 and 4.92 of the 
Customs Regulations (19 CFR 4.80 and 4.92) in order to make the 
necessary inflation-induced adjustments to the penalties assessed for 
violations that are incurred under 46 U.S.C. App. 289 and 46 U.S.C. 
App. 316(a), as mandated by the Act. Furthermore, the specific 
authority citations for Sec. Sec.  4.80 and 4.92 are revised to add a 
reference to the codification of the Act at 28 U.S.C. 2461 note.

Administrative Procedure Act, the Regulatory Flexibility Act, and 
Executive Order 12866

    This final rule merely brings the Customs Regulations into 
conformance with the requirements of the Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended. As such, pursuant to 5 
U.S.C. 553(b)(B) of the Administrative Procedure Act (APA), prior 
notice and public procedure are unnecessary in this case, and, pursuant 
to 5 U.S.C. 553(d)(3) of the APA, a delayed effective date is not 
required. Since this document is not subject to the 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.). 
Nor do these amendments meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

List of Subjects in 19 CFR Part 4

    Administrative practice and procedure, Coastal zone, Inspection, 
Passenger vessels, Penalties, Reporting and recordkeeping requirements, 
Vessels.

Amendments to the Regulations

    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 citation for part 4 continues, and the 
specific authority citations for Sec. Sec.  4.80 and 4.92 are revised, 
to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1624; 46 
U.S.C. App. 3, 91;
* * * * *
    Section 4.80 also issued under 28 U.S.C. 2461 note; 46 U.S.C. 
12106; 46 U.S.C. App. 251, 289, 319, 802, 808, 883, 883-1;
* * * * *
    Section 4.92 also issued under 28 U.S.C. 2461 note; 46 U.S.C. 
App. 316(a);
* * * * *

    2. Section 4.80 is amended by revising paragraph (b)(2) to read as 
follows:


Sec.  4.80  Vessels entitled to engage in coastwise trade.

* * * * *
    (b) Penalties for violating coastwise laws. * * *
    (2) The penalty imposed for the unlawful transportation of 
passengers between coastwise points is $300 for each passenger so 
transported and landed (46 U.S.C. App. 289, as adjusted by the Federal 
Civil Penalties Inflation Adjustment Act of 1990).
* * * * *

    3. Section 4.92 is amended by revising its second sentence to read 
as follows:


Sec.  4.92  Towing.

    * * * The penalties for violation of this provision are a fine of 
from $350 to $1100 against the owner or master of the towing vessel and 
a further penalty against the towing vessel of $60 per ton of the towed 
vessel (46 U.S.C. App. 316(a), as adjusted by the Federal Civil 
Penalties Inflation Adjustment Act of 1990).

Robert C. Bonner,
Commissioner of Customs.
    Approved: February 25, 2003.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 03-6754 Filed 3-20-03; 8:45 am]
BILLING CODE 4820-02-P