[Federal Register Volume 68, Number 156 (Wednesday, August 13, 2003)]
[Rules and Regulations]
[Pages 48279-48280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20568]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

19 CFR Part 4

[CBP Decision 03-16]
RIN 1515-AD35


Tonnage Duties--Revised Amounts

AGENCY: Customs and Border Protection, Homeland Security.

ACTION: Final rule.

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SUMMARY: This document amends the rules dealing with vessels in foreign 
and domestic trades by revising the amounts of tonnage duties 
applicable to those entering the United States from a foreign port. 
These revisions are necessary to reflect recent changes in the 
pertinent statutory provisions.

EFFECTIVE DATE: August 13, 2003.

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

SUPPLEMENTARY INFORMATION:

Background

    Customs and Border Protection (CBP) assesses and collects tonnage 
duties and light money on vessels brought into the United States from a 
foreign port or place, under the authority of 46 U.S.C. App. 121. 
Tonnage duties, which are in effect charges for the privilege of 
entering, trading in, or lying in a port, cover the expenses incurred 
in clearing and improving harbors, erecting lighthouses and keeping up 
lights. The amount of tonnage duty depends on the registry of the 
vessel, subject to certain exemptions, as prescribed by law.
    On November 5, 1990, the President signed the Omnibus Budget 
Reconciliation Act of 1990 (Pub. L. 101-508), which amended 46 U.S.C 
App. 121 to increase the tonnage taxes collected from vessels arriving 
in the United States from foreign ports. The amendment intended to 
offset the costs incurred by Coast Guard operations. For vessels 
calling on the United States from North American ports and certain 
Central American, South American and Caribbean ports, the amount of 
tonnage tax was increased to 9 cents per ton, not to exceed in the 
aggregate 45 cents per ton per annum. For vessels entering a port of 
the United States from any other foreign port or place, the amount of 
tonnage tax was increased to 27 cents per ton, not to exceed $1.35 per 
ton per annum. These increases were in effect until the end of fiscal 
year 2002; thereafter the duties were to revert to the same amount as 
in effect prior to the passage of this legislation.
    Congress has not enacted legislation renewing these provisional 
tonnage duty rates. In accordance with the statute, the tonnage tax 
rates have reverted to the previous rates of 2 cents per ton (10 cents 
annual aggregate cap) for vessels arriving in the United States from 
the first group of ports and 6 cents per ton (30 cents annual aggregate 
cap) for vessels arriving from all other originating ports.
    Thus, CBP has determined that current statutory provisions require 
CBP to amend Part 4 of the Customs Regulations (19 CFR 4.20) to revise 
the amounts of tonnage duties applicable to vessels entering from a 
foreign port or place. Following is a summary of those changes.

Discussion of Changes

    1. Section 4.20(a) generally provides for the payment of tonnage 
tax on vessels entering from a foreign port or place. Section 4.20(a) 
is revised to reflect changes in the regular tonnage duty applicable in 
such circumstances.
    2. Section 4.20(b) is amended to reflect the revised maximum 
assessment amount of tonnage duty of a vessel per tonnage year. The 
revised aggregate amount for vessels arriving in the United States from 
North American ports, certain Central American, South American and 
Caribbean ports is 10 cents per ton. For vessels arriving from all 
other originating ports the revised amount is 30 cents per ton.
    3. Section 4.20(c) generally provides for the payment of special 
tonnage tax and light money on vessels entering from a foreign port or 
place. The present table in this section listing the vessel tonnage and 
light money rates payable under various conditions is revised to 
reflect the current tonnage duty rates.
    The following chart indicates the provisional tonnage tax amount 
that has expired and the currently assessed amount.

------------------------------------------------------------------------
                                            Provisional       Current
                                            tonnage tax     tonnage tax
       Vessels entering U.S. from             per ton         per ton
                                           (annual cap)    (annual cap)
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North America, Central America, the West         9[cent]         2[cent]
 Indies, the Bahama Islands, the Bermuda      (45[cent])      (10[cent])
 Islands, the coast of South America
 bordering on the Caribbean Sea, or the
 high seas adjacent to the U.S. or the
 above listed foreign locations.........
Any other foreign port..................        27[cent]         6[cent]
                                                 ($1.35)      (30[cent])
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[[Page 48280]]

Inapplicability of Public Notice and Comment and Delayed Effect 
Requirements, the Regulatory Flexibility Act, and Executive Order 12866

    Inasmuch as these amendments merely conform the Customs Regulations 
to existing law as noted above, pursuant to 5 U.S.C. 553(b)(3)(B), 
notice and public procedure thereon are unnecessary and pursuant to 5 
U.S.C. 553(d)(3), 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, as amended (5 U.S.C. 601 et seq.).
    For the same reasons, the amendments do not meet the criteria for a 
``significant regulatory action'' as specified in E.O. 12866. 
Accordingly, a regulatory impact analysis it is not required 
thereunder.

Drafting Information

    The principal author of this document was Fernando Pena, Office of 
Regulations and Rulings, Bureau of Customs and Border Protection. 
However, personnel from other Bureau offices participated in its 
development.

List of Subjects in 19 CFR Part 4

    Cargo vessels, Coastal zone, Coastwise trade, Customs duties and 
inspection, Entry, Fees, Fishing vessels, Freight, Harbors, Imports, 
Maritime carriers, Reporting and recordkeeping requirements, Seamen, 
Vessels, and Yachts.

Amendments to the Regulations

0
For the reasons stated above, part 4 of the Customs Regulations (19 CFR 
part 4) is amended as set forth below.

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

0
1. The general authority citation for part 4 and the specific authority 
citation for Sec.  4.20 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 Sec.  4.20 also issued under 46 U.S.C. 2107(b), 8103, 
14306,14502, 14511, 14512, 14513, 14701, 14702; 46 U.S.C. App. 121, 
128;
* * * * *

0
2. Amend Sec.  4.20 as follows:
0
a. In paragraph (a):
0
i. all references to the number ``9'' are removed and, in their place, 
the number ``2'' is added;
0
ii. all references to the number ``27'' are removed and, in their 
place, the number ``6'' is added;
0
iii. the reference to the number ``45'' is removed and, in its place, 
the number ``10'' is added; and,
0
iv. the figure ``$1.35'' is removed and, in its place, the number 
``30'' is added.
0
b. In paragraph (b):
0
i. the reference to the number ``9'' is removed and, in its place, the 
number ``2'' is added;
0
ii. the reference to the number ``27'' is removed and, in its place, 
the number ``6'' is added; and,
0
iii. the figure ``$1.80'' is removed and, in its place, the figure ``40 
cents'' is added.
0
c. In the table under paragraph (c), in the column headed ``Regular 
tax'':
0
i. the figure ``0.09'' and all the figures reading ``.09'' are removed 
and, in their place, the figure ``.02'' is added; and,
0
ii. the figure ``0.27'' and all the figures reading ``.27'' are removed 
and, in their place, the figure ``.06'' is added.

    Dated: August 7, 2003.
Robert C. Bonner,
Commissioner, Customs and Border Protection.
[FR Doc. 03-20568 Filed 8-12-03; 8:45 am]
BILLING CODE 4820-02-P