[Federal Register Volume 76, Number 26 (Tuesday, February 8, 2011)]
[Rules and Regulations]
[Pages 6688-6690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-2694]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

19 CFR Parts 123, 142 and 178

[Docket No. USCBP-2006-0132; CBP Dec. No. 11-04]
RIN 1651-AA68


Land Border Carrier Initiative Program

AGENCY: U.S. Customs and Border Protection, DHS.

ACTION: Final rule.

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SUMMARY: This document amends U.S. Customs and Border Protection (CBP) 
regulations by removing the provisions pertaining to the Land Border 
Carrier Initiative Program (LBCIP). The LBCIP was established as a 
voluntary industry partnership program under which participating land 
and rail commercial carriers would agree to enhance the security of 
their facilities and conveyances to prevent controlled substances from 
being smuggled into the United States. Because CBP has developed a more 
comprehensive voluntary industry partnership program known as the 
Customs-Trade Partnership Against Terrorism (C-TPAT), CBP is 
terminating the LBCIP and will focus its partnership efforts on the 
further development of C-TPAT. C-TPAT builds upon the best practices of 
the LBCIP, while providing greater border and supply chain security 
with expanded benefits to approved participants.

DATES: Effective Date: March 10, 2011.

FOR FURTHER INFORMATION CONTACT: Glenn Woodley, Jr., Office of Field 
Operations, (202) 344-2725.

SUPPLEMENTARY INFORMATION: 

Background

    The Land Border Carrier Initiative Program (LBCIP) was established 
as a CBP-industry partnership regulatory program enlisting the 
voluntary cooperation of commercial conveyance entities as part of an 
effort to prevent the smuggling of controlled substances into the 
United States.
    Under the LBCIP regulations set forth in title 19 of the Code of 
Federal Regulations (19 CFR 123.71-76), land and rail commercial 
carrier participants may enter into a written agreement with CBP that 
specifies methods by which the carrier will enhance the security of its 
facilities and conveyances. In exchange for this cooperation, CBP would 
provide training to carrier personnel in the areas of cargo and 
personnel security, document review techniques, drug awareness, and 
conveyance searches. Additionally, only LBCIP participants could be 
approved for Line Release entry processing at certain high-risk border 
locations as set forth in 19 CFR 142.41.\1\
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    \1\ Line Release provides for advance cargo screening and 
expedited release at land border ports.
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    In 2001, CBP introduced the Customs-Trade Partnership Against 
Terrorism (C-TPAT) program. C-TPAT is a voluntary industry partnership 
initiative that meets the objectives of the LBCIP while providing a 
more comprehensive approach to border and supply chain security. The 
program entails CBP's ongoing participation in a joint effort with 
importers, carriers, brokers, warehouse operators, manufacturers, and 
other industry sectors to develop a seamless security-conscious 
environment from manufacturing through transportation and importation 
to ultimate distribution. In addition to providing greater security for 
both government and business, C-TPAT provides its members with the same 
privileges accorded to LBCIP participants, as well as additional 
benefits such as priority processing for CBP inspections, reduced 
number of CBP inspections, assignment of a C-TPAT Supply Chain Security 
Specialist who will work with the company to validate and enhance 
security throughout the company's international supply chain, and 
eligibility to attend

[[Page 6689]]

C-TPAT supply chain security training seminars. (For a detailed 
explanation of C-TPAT benefits, visit www.cbp.gov, and click on the 
link to C-TPAT).
    In light of the development of C-TPAT as a more comprehensive CBP 
industry partnership program, CBP published a proposal in the Federal 
Register (74 FR 66933) on December 17, 2009, to amend title 19 of the 
Code of Federal Regulations by removing provisions pertaining to the 
LBCIP and changing certain references to the LBCIP to ``CBP-approved 
industry partnership program.'' CBP also proposed replacing the word 
``Customs'' with ``CBP'' where it appeared in the regulations affected 
by these changes. Interested parties were given until February 16, 2010 
to comment on the proposed changes. CBP received no comments in 
response to the notice. Accordingly, CBP has determined to adopt as 
final, the proposed rule published in the Federal Register, which 
eliminates LBCIP as a CBP program. In addition, CBP is removing the 
reference in 19 CFR 178.2 to the information collection pertaining to 
the LBCIP.
    C-TPAT builds upon the best practices of existing CBP-industry 
partnership programs and offers more comprehensive supply chain 
security measures for both government and industry than does LBCIP. CBP 
encourages any former LBCIP participants to apply for C-TPAT 
membership. Information on the C-TPAT application process is available 
on the CBP Web site (http://www.cbp.gov).

Explanation of Amendments

    For the reasons set forth above, CBP removes Sec. Sec.  123.71, 
123.72, 123.73. 123.74, 123.75, and 123.76 from 19 CFR, and amends 19 
CFR 142.41, 142.47 and 178.2.

Executive Order 12866

    Executive Order 12866 requires Federal agencies to conduct economic 
analyses of significant regulatory actions as a means to improve 
regulatory decision making. Significant regulatory actions include 
those that may ``(1) [h]ave an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or Tribal 
governments or communities; (2) [c]reate a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) [m]aterially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) [r]aise novel legal or policy issues arising out of 
legal mandates, the President's priorities, or the principles set forth 
in this Executive Order.''
    CBP incorporated the best practices and security principles of 
LBCIP and other industry partnership programs when developing C-TPAT, a 
comprehensive border and supply chain security partnership. The 
termination of LBCIP does not eliminate benefits previously conferred 
to land and rail carrier participants because former LBCIP participants 
may elect to, and are encouraged to, apply to participate in C-TPAT, 
which confers all of the privileges of LBCIP along with additional 
benefits discussed previously. As such, this rule does not meet the 
criteria for a ``significant regulatory action'' under Executive Order 
12866. The Office of Management and Budget (OMB) has not reviewed this 
rule under that order.

Regulatory Flexibility Act

    In Treasury Decision (T.D.) 99-2 (64 FR 27, January 4, 1999), it 
was certified that pursuant to the provisions of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq., the LBCIP regulations set forth 
at 19 CFR 123.71-76 would not have a significant economic impact on a 
substantial number of small entities, because the LBCIP is a voluntary 
partnership program that confers benefits to the trade community. 
Accordingly, the LBCIP regulations were not subject to regulatory 
analysis or other requirements of 5 U.S.C. 603 and 604.
    Similarly, this rule removes the voluntary LBCIP from the 
regulations and does not impose any direct costs on small entities. 
Additionally, CBP encourages any existing LBCIP members to continue 
their partnership endeavors and benefits by applying for membership in 
C-TPAT. CBP solicited comments regarding the impact on small entities 
of the proposal published in the Federal Register on December 17, 2009 
(74 FR 66933). As no comments were received challenging these findings, 
it is certified that pursuant to the provisions of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.), this rule does not have a 
significant economic impact on a substantial number of small entities.

Paperwork Reduction Act

    The collections of information pertaining to the LBCIP were 
approved by the Office of Management and Budget (OMB) in accordance 
with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507) under control number 1651-0077. This information collection is 
referenced in 19 CFR 178.2 under section 123.73.
    With the adoption of this final rule removing the LBCIP from the 
CBP regulations, 19 CFR 178.2 is being amended to delete the reference 
to this information collection.

Signing Authority

    This document is being issued in accordance with 19 CFR 0.2(a), 
which provides that the authority of the Secretary of the Treasury with 
respect to CBP regulations that are not related to customs revenue 
functions was transferred to the Secretary of Homeland Security 
pursuant to section 403(1) of the Homeland Security Act of 2002 and 
that such regulations are signed by the Secretary of Homeland Security.

List of Subjects

19 CFR Part 123

    Administrative Practice and Procedure, Canada, Common carriers, 
Customs duties and inspection, Entry of merchandise, Freight, Imports, 
International traffic, Mexico, Motor carriers, Penalties, Railroads, 
Reporting and recordkeeping requirements, Vehicles.

19 CFR Part 142

    Administrative Practice and Procedure, Canada, Computer technology 
(Line release), Common carriers (Carrier initiative program), Customs 
duties and inspection, Entry of merchandise (Line release), Forms, 
Reporting and recordkeeping requirements.

19 CFR Part 178

    Reporting and recordkeeping requirements.

Amendments to the Regulations

    For the reasons stated above, CBP amends parts 123, 142 and 178 of 
title 19 of the CFR as set forth below:

PART 123--CBP RELATIONS WITH CANADA AND MEXICO

0
1. The heading to part 123 is revised to read as set forth above.

0
2. The general authority citation for part 123 continues to read as 
follows, and the specific authority citation for Sec. Sec.  123.71-
123.76 is removed:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States (HTSUS)), 1431, 1433, 1436, 
1448, 1624, 2071 note.
* * * * *

0
3. Remove and reserve subpart H of part 123.

[[Page 6690]]

PART 142--ENTRY PROCESS

0
4. The authority citation for part 142 continues to read as follows:

    Authority: 19 U.S.C. 66, 1448, 1484, 1624.


0
5. Section 142.41 is amended by removing the word ``Customs'' wherever 
it appears and adding in each place the term ``CBP'' and, in the last 
sentence, by removing the language, ``the Land Border Carrier 
Initiative Program (see, subpart H of part 123 of this chapter)'' and 
adding in its place the language, ``a CBP-approved industry partnership 
program''.

0
6. In Sec.  142.47:
0
(a) Paragraph (a) is amended by removing the word ``Customs'' wherever 
it appears and adding in each place the term ``CBP''; and
0
(b) Paragraph (b) is amended by removing the word ``Customs'' wherever 
it appears and adding in each place the term ``CBP'', by removing the 
language ``the Land Border Carrier Initiative Program (LBCIP)'' in the 
first sentence and adding in its place the language ``a CBP-approved 
industry partnership program'' and, in the second sentence, by removing 
the word ``shall'' and adding in its place the word ``must''.

PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS

0
7. The general authority citation for part 178 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44 U.S.C. 3501 et seq.


0
8. Amend Sec.  178.2 by removing the listing for Sec.  123.73.

Janet Napolitano,
Secretary.
[FR Doc. 2011-2694 Filed 2-7-11; 8:45 am]
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