[Federal Register Volume 69, Number 9 (Wednesday, January 14, 2004)]
[Proposed Rules]
[Pages 2093-2094]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-724]


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

DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

19 CFR Part 162

RIN 1651-AA48


Publication of Administrative Forfeiture Notices

AGENCY: Bureau of Customs and Border Protection, Homeland Security.

ACTION: Proposed rule.

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

SUMMARY: The Customs Regulations set forth the procedure that the 
Bureau of Customs and Border Protection (CBP) must follow in 
administrative forfeiture proceedings, as required by section 607 of 
the Tariff Act of 1930, as amended. The statutory language allows for 
administrative forfeiture when CBP seizes: A prohibited importation; a 
transporting conveyance if used to import, export, transport or store a 
controlled substance or listed chemical; any monetary instrument within 
the meaning of 31 U.S.C. 5312(a)(3); or any conveyance, merchandise or 
baggage for which its value does not exceed $500,000.
    If the value of the seized property exceeds $2,500, the current 
regulations require CBP to publish notice of seizure and intent to 
forfeit in a newspaper circulated at the Customs port and in the 
judicial district where the seizure occurred. When the value of the 
seized property does not exceed $2,500, CBP may publish the notice by 
posting it in a conspicuous place accessible to the public at the 
customhouse nearest the place of seizure.
    This document proposes to amend the Customs Regulations by raising 
the threshold value of seized property for which CBP must publish a 
notice in a newspaper from $2,500 to $5,000. By changing the 
requirements for publication of administrative forfeiture notices, the 
proposed amendment would significantly reduce the publication costs 
incurred by CBP, which have often exceeded the value of seized 
property.

[[Page 2094]]


DATES: Comments must be received by March 15, 2004.

ADDRESSES: Written comments (preferably in triplicate) may be addressed 
to the Regulations Branch, Office of Regulations and Rulings, Bureau of 
Customs and Border Protection, 1300 Pennsylvania Avenue, NW., 
Washington, DC 20229. Comments submitted may be inspected at the 
Regulations Branch, Office of Regulations and Rulings, Bureau of 
Customs and Border Protection, 799 9th Street, NW., 5th Floor, 
Washington, DC. Arrangements to inspect submitted comments should be 
made in advance by calling Mr. Joseph Clark at (202) 572-8768.

FOR FURTHER INFORMATION CONTACT: Greg Olsavsky, Chief, Fines Penalties 
& Forfeitures Branch, (202) 927-3119.

SUPPLEMENTARY INFORMATION:

Background

    Section 162.45 of the Customs Regulations (19 CFR 162.45) sets 
forth the procedure that the Bureau of Customs and Border Protection 
(CBP) must follow when it seizes and gives notice of intent to forfeit 
property under administrative forfeiture proceedings, as required by 
section 607 of the Tariff Act of 1930, as amended (19 U.S.C. 1607). The 
statutory language allows for administrative forfeiture when CBP seizes 
(1) a prohibited importation; (2) a transporting conveyance if used to 
import, export, transport or store a controlled substance or listed 
chemical; (3) any monetary instrument within the meaning of 31 U.S.C. 
5312(a)(3); or (4) any conveyance, merchandise or baggage for which its 
value does not exceed $500,000.
    Specifically, current Sec.  162.45(b), Customs Regulations, 
addresses publication of notices under administrative forfeiture 
proceedings. If the value of the seized property exceeds $2,500, 
paragraph (b)(1) requires publication of administrative forfeiture 
notices in a newspaper circulated at the Customs port and in the 
judicial district where the seizure occurred. All known parties-in-
interest are notified of the newspaper and expected dates of 
publication of the notice.
    It is proposed to amend Sec.  162.45(b)(1) to raise the value 
threshold of property for which CBP must publish an administrative 
forfeiture notice in a newspaper from $2,500 to $5,000.
    When the value of the seized property does not exceed $2,500, 
current paragraph (b)(2) of Sec.  162.45 allows CBP to publish a notice 
of seizure and intent to forfeit by posting it in a conspicuous place 
accessible to the public at the customhouse nearest the place of 
seizure. If the proposed amendment to paragraph (b)(1) is adopted, the 
applicability of paragraph (b)(2) would be automatically expanded to 
seizures of property valued under $5,000.
    CBP last changed the regulation in 1985, when it increased the 
dollar threshold from $250 to $2,500. Since then, inflation has often 
caused the costs of publication in large metropolitan areas to exceed 
$2,500. Thus, in many cases the publication costs can be prohibitive 
when compared to the value of the property advertised.
    If implemented, the proposed change to the regulations would result 
in estimated yearly savings of at least $147,000, based on FY 2002 
expenditure levels.

Comments

    Before adopting this proposed regulation as a final rule, 
consideration will be given to any written comments timely submitted to 
CBP, 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) and Sec.  103.11(b), Customs Regulations (19 CFR 
103.11(b)), on normal business days between the hours of 9 a.m. and 
4:30 p.m. at the Regulations Branch, Office of Regulations and Rulings, 
Bureau of Customs and Border Protection, 799 9th Street, NW., 5th 
Floor, Washington, DC. Arrangements to inspect submitted comments 
should be made in advance by calling Mr. Joseph Clark at (202) 572-
8768.

Regulatory Flexibility Act and Executive Order 12866

    CBP does not anticipate that the proposed amendment will have an 
impact on private parties, as it pertains to the agency's internal 
operating procedures. For that reason, it is certified that the 
proposed amendment, if adopted, will not have a significant economic 
impact on a substantial number of small entities, pursuant to the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
Accordingly, it is not subject to the regulatory analysis or other 
requirements of 5 U.S.C. 603 and 604.
    For the same reasons, this document does not meet the criteria for 
a ``significant regulatory action'' as specified in E.O. 12866.

Drafting Information

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

Signing Authority

    This regulation is being issued in accordance with 19 CFR 0.1 
(b)(1).

List of Subjects in 19 CFR Part 162

    Administrative practice and procedure, Customs duties and 
inspection, Drug traffic control, Exports, Imports, Inspection, Law 
enforcement, Penalties, Prohibited merchandise, Restricted merchandise, 
Reporting and recordkeeping requirements, Search warrants, Seizures and 
forfeitures.

Proposed Amendment to the Regulations

    For the reasons stated above, it is proposed to amend part 162 of 
the Customs Regulations (19 CFR part 162) as set forth below.

PART 162--INSPECTION, SEARCH, AND SEIZURE

    1. The general authority citation for part 162 and the specific 
authority citation for Sec.  162.45 continue to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1592, 1593a, 1624.
* * * * *
    Section Sec.  162.45 also issued under 19 U.S.C. 1607, 1608.
* * * * *


Sec.  162.45  [Amended]

    2. It is proposed to amend the first sentence of paragraph (b)(1) 
of Sec.  162.45 by removing the monetary amount ``$2,500'' and adding 
in its place ``$5,000''.

    Dated: January 8, 2004.
Robert C. Bonner,
Commissioner, Customs and Border Protection.
[FR Doc. 04-724 Filed 1-13-04; 8:45 am]
BILLING CODE 4820-02-P