[Federal Register Volume 76, Number 164 (Wednesday, August 24, 2011)]
[Proposed Rules]
[Pages 52890-52892]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21624]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 76, No. 164 / Wednesday, August 24, 2011 / 
Proposed Rules  

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 DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

8 CFR Part 100

 19 CFR Part 101

[Docket No. USCBP-2011-0017]


Closing of the Port of Whitetail, MT

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: U.S. Customs and Border Protection (CBP) is proposing to close 
the port of entry of Whitetail, Montana. The proposed change is part of 
CBP's continuing program to more efficiently utilize its personnel, 
facilities, and resources, and to provide better service to carriers, 
importers, and the general public.

DATES: Comments must be received on or before October 24, 2011.

ADDRESSES: You may submit comments, identified by docket number USCBP-
2011-0017, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Border Security Regulations Branch, Regulations and 
Rulings, Office of International Trade, Customs and Border Protection, 
799 9th Street, NW., 5th Floor, Washington, DC 20229-1179.
    Instructions: All submissions received must include the agency name 
and docket title for this rulemaking, and must reference docket number 
USCBP-2011-0017. All comments received will be posted without change to 
http://www.regulations.gov, including any personal information 
provided. For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the ``Public 
Participation'' heading of the SUPPLEMENTARY INFORMATION section of 
this document.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Submitted comments 
may also be inspected during regular business days between the hours of 
9 a.m. and 4:30 p.m. at the Office of International Trade, 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) 325-0118.

FOR FURTHER INFORMATION CONTACT: Mr. Roger Kaplan, Acting Director, 
Office of Field Operations, Audits and Self-Inspection, (202) 325-4543 
(not a toll-free number) or by e-mail at [email protected].

SUPPLEMENTARY INFORMATION: 

 I. Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of the 
proposed rule. U.S. Customs and Border Protection (CBP) also invites 
comments that relate to the economic, environmental, or federalism 
effects that might result from this proposed rule. Comments that will 
provide the most assistance will reference a specific portion of the 
proposed rule, explain the reason for any recommended change, and 
include data, information, or authority that support such recommended 
change.

II. Background

    CBP ports of entry are locations where CBP officers and employees 
are assigned to accept entries of merchandise, clear passengers, 
collect duties, and enforce the various provisions of customs, 
immigration, agriculture and related U.S. laws at the border. The term 
``port of entry'' is used in the Code of Federal Regulations (CFR) in 
title 8 for immigration purposes and in title 19 for customs purposes. 
For customs purposes, CBP regulations list designated CBP ports of 
entry in section 101.3(b)(1) of title 19. 19 CFR 101.3(b)(1).
    For immigration purposes, CBP regulations list ports of entry for 
aliens arriving by vessel and land transportation in section 100.4(a) 
of title 8. 8 CFR 100.4(a). These ports are listed according to 
location by districts and are designated as Class A, B, or C. 
Whitetail, Montana is included in this list, in District No. 30, as a 
Class A port of entry, meaning a port that is designated as a port of 
entry for all aliens arriving by vessel and land transportation.\1\
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    \1\ Class B ports are designated ports of entry for aliens 
arriving by vessel or land transportation, who, at the time of 
applying for admission, are in possession of certain, specified 
documentation or admissible under a certain documentary waiver. 
Class C ports are designated ports of entry only for aliens arriving 
by vessel transportation as crewmen, as the term is defined by the 
Immigration and Nationality Act with respect to vessels.
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    On July 20, 2010, the Canada Border Services Agency (CBSA) notified 
CBP of its intent to close the Big Beaver port of entry in 
Saskatchewan, Canada. The port of Big Beaver is located approximately 
100 yards to the north of the CBP port of Whitetail, Montana. The 
factors influencing CBSA's decision to close the port of Big Beaver 
include the low volume of traffic at that port and the close proximity 
of alternate Canadian ports of entry at Regway and Coronach. Based on 
these factors, CBSA determined that closing the Big Beaver port would 
allow for a more efficient use of Canadian funds and resources.
    CBSA closed the Big Beaver port on April 1, 2011. Big Beaver's 
closure has created a situation where travelers from Canada may 
continue to enter the United States at Whitetail but travelers leaving 
the United States for Canada must do so at a port other than Big 
Beaver.
    The port of Whitetail is one of CBP's least trafficked ports. The 
port has processed an average of less than 4 privately owned vehicles 
per day for the last 4 years. Whitetail currently operates only from 
morning until evening (8 a.m. through 9 p.m. during the months of June 
through September; 9 a.m. through 6 pm during the months of September 
through May). The facility was built in 1964 and has undergone little 
renovation since that time. CBP has determined that the facility does 
not have the infrastructure to meet modern operational, safety, and 
technological demands for ports of entry and that major renovations 
would be required if Whitetail were to continue operations. The costs 
of such renovations are discussed in Section IV of this document.
    The two ports of entry closest to Whitetail are the ports of 
Raymond,

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Montana and Scobey, Montana. Raymond is located about 60 miles east of 
Whitetail, and Scobey is located about 40 miles west of Whitetail. If 
the port of entry at Whitetail is closed, the traffic normally seen at 
that port will be processed at these two ports. The port of Raymond 
operates 24 hours, providing additional convenience to those normally 
crossing at the port of Whitetail.
    In view of the closure of the adjacent Canadian port of Big Beaver, 
the limited usage of the port of Whitetail, the location of the 
alternative ports, and the analysis of the net benefit of the port 
closure discussed in Section IV of this document (including the cost of 
necessary renovations were the port to remain open), CBP is proposing 
to close the Whitetail, Montana, port of entry to better utilize CBP 
funds and resources. This action would further CBP's ongoing goal of 
more efficiently utilizing its personnel, facilities, and resources.

Consultations/Assessments

    CBP will conduct further assessments focusing on how to secure the 
area, reroute traffic to the closest ports, and calculate any 
additional costs associated with the potential port closure. CBP also 
will consult and coordinate with CBSA and the Montana Department of 
Transportation regarding the planned closure. CBP is currently 
conducting the initial phases of an environmental study to ensure that 
the proposed port closure complies with applicable environmental laws 
such as the National Environmental Policy Act of 1969 (NEPA).

III. Congressional Notification

    On September 28, 2010, the Commissioner of CBP notified Congress of 
CBP's intention to close the port of entry at Whitetail, Montana, 
fulfilling the congressional notification requirements of 19 U.S.C. 
2075(g)(2) and section 417 of the Homeland Security Act (6 U.S.C. 217).

IV. Regulatory Requirements

A. Signing Authority

    The signing authority for this document falls under 19 CFR 0.2(a). 
Accordingly, this notice of proposed rulemaking is signed by the 
Secretary of Homeland Security.

B. Executive Order 12866: Regulatory Planning and Review

    This rule is not a significant regulatory action under Executive 
Order 12866, as supplemented by Executive Order 13563, and has not been 
reviewed by the Office of Management and Budget (OMB) under that order. 
Below is CBP's assessment of the benefits and costs of this regulatory 
action.
1. Baseline Conditions
    Whitetail averaged 1,261 cars and 57 trucks a year from 2007 to 
2009. CBP assigns four full time staff to the crossing, costing about 
$457,000 per year, including benefits. In addition, CBP spends about 
$35,000 a year on operating expenses such as utilities and maintenance. 
The total annual cost of operating the crossing is about $492,000. DHS 
has determined that the Whitetail port of entry requires significant 
renovation and expansion, requiring an estimated $8 million to build 
facilities that meet all current safety and security standards. Since 
this construction is the only alternative to closing the crossing, CBP 
would spend about $8.5 million the first year (construction plus 
operating costs) and $0.5 million each subsequent year if the crossing 
were to remain open.
2. Costs of Closing the Port
    The costs of the proposed closure fall into three categories--the 
cost to CBP to physically close the port, the cost to U.S. travelers 
entering the United States to drive to the next nearest port, and the 
cost to the economy of lost revenue resulting from potential decreased 
Canadian travel. CBP estimates that it will cost approximately $158,000 
to physically close the port, which involves building road barricades, 
boarding up the building, and managing asbestos.
    In addition to the cost to the government of closing the port, we 
must examine the impact of this proposed closing on U.S. travelers (per 
guidance provided in OMB Circular A-4, this analysis is focused on 
costs and benefits to U.S. entities). Approximately 1,318 vehicles and 
2,571 passengers cross from Canada into the United States each year at 
Whitetail. If the port is closed, these travelers would need to travel 
to an alternate port, which could cost them both time and money.
    As noted, the two ports closest to Whitetail are Raymond, which is 
about 60 miles east, and Scobey, which is about 40 miles west. The 
alternate port travelers choose to use will depend on their point of 
origin and their destination. In general, the closer the point of 
origin or destination to Whitetail, the more the traveler will be 
affected by the closure. Because CBP does not collect data on either of 
these points, for the purposes of this analysis we will assume the 
worst case scenario--that all crossers begin their trip at a point just 
across the border from Whitetail and travel to a point just on the U.S. 
side of the border. We estimate that such a detour would add 1 hour and 
40 miles to the crossers' trip. Since it is unlikely that all crossings 
at Whitetail originate and end immediately at the border, this 
methodology likely overstates the cost to travelers.
    In 2007, Industrial Economics, Inc. (IEc) conducted a study for CBP 
to develop ``an approach for estimating the monetary value of changes 
in time use for application in [CBP's] analyses of the benefits and 
costs of major regulations.'' \2\ We follow the three-step approach 
detailed in IEc's 2007 analysis to monetize the increase in travel time 
resulting from the closure of Whitetail: (1) Determine the local wage 
rate, (2) determine the purpose of the trip, and (3) determine the 
value of the travel delay as a result of this rule. We start using the 
median hourly wage rate for Montana of $13.65 per hour, as the effects 
of the rule are local.\3\ We next determine the purpose of the trip. 
For the purposes of this analysis, we assume this travel will be 
personal travel and will be local travel. We identify the value of time 
multiplier recommended by the U.S. Department of Transportation (DOT) 
for personal, local travel, as 0.5.\4\ Finally, we account for the 
value of the travel delay. Since the added time spent traveling is 
considered more inconvenient than the baseline travel, we account for 
this by using a factor that weighs time inconvenienced more heavily 
than baseline travel time. This factor, 1.47, is multiplied by the 
average wage rate and the DOT value of time multiplier for personal, 
local travel for a travel time value of $10.04 per traveler ($13.65 x 
0.5 x 1.47).\5\
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    \2\ Robinson, Lisa A. 2007. ``Value of Time.'' Submitted to US 
Customs and Border Protection on February 15, 2007. The paper is 
contained in its entirely as Appendix D in the Regulatory Assessment 
for the April 2008 final rule for the Western Hemisphere Travel 
Initiative requirements in the land environment (73 FR 18384; April 
3, 2008). See http://www.regulations.gov document numbers USCBP-
2007-0061-0615 and USCBP-2007-0061-0616.
    \3\ Bureau of Labor Statistics, May 2009. http://www.bls.gov/oes/current/oes_mt.htm#00-0000.
    \4\ U.S. Department of Transportation (DOT), Revised 
Departmental Guidance, Valuation of Travel Time in Economic 
Analysis, (Memorandum from E. H. Frankel), February 2003, Tables 1.
    \5\ Wardman, M., ``A Review of British Evidence on Time and 
Service Quality Valuations,'' Transportation Research Part E, Vol. 
37, 2001, pp. 107-128.
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    We next multiply the estimated number of travelers entering the 
U.S. through Whitetail in a year (2,571) by the average delay (1 hour) 
to arrive at the number of additional hours travelers would be delayed 
as a result of this rule--2,571 hours. We multiply this by

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the value of wait time ($10.04) to arrive at the value of the 
additional driving time travelers arriving in the United States once 
Whitetail is closed. Finally, we double this to account for round trip 
costs to reach a total time cost of $51,626.
    Besides the cost of additional travel time, we must consider the 
vehicle costs of a longer trip. We must first estimate the number of 
miles the closure of Whitetail would add to travelers' trips. The 
annual traffic arriving at Whitetail is 1,300 vehicles. Since we assume 
that the closure will add 40 miles to each crossing, the closure will 
add a total of 52,000 miles to travelers' trips each year. We next 
monetize the delay by applying the IRS's standard mileage rate for 
business travel of $0.50 to these vehicles, which includes fuel costs, 
wear-and-tear, and depreciation of the vehicle. Because this is an 
estimate for business travel, it may overstate slightly costs for 
leisure travelers using their vehicles on leisure activities. Finally, 
we double the costs to account for the return trip. We estimate that a 
closure of Whitetail will cost U.S. citizens $52,000 in additional 
vehicular costs.
    The final cost we must consider is the cost to the economy of lost 
revenue resulting from potential decreased Canadian travel. Because of 
the lack of data on the nature of travel through Whitetail and its 
effect on the local economy, we are unable to monetize or quantify 
these costs. We therefore discuss this qualitatively.
    Since both U.S. and foreign travelers will be inconvenienced by the 
closure of the port of Whitetail, it is possible that fewer foreign 
travelers will choose to cross the border into the United States. To 
the extent that these visitors were spending money in the United 
States, local businesses would lose revenue. Since fewer than four 
vehicles a day enter the United States at Whitetail, this effect is 
likely to be very small. Also, these revenue losses could be mitigated 
by those U.S. citizens who would now choose to remain in the United 
States. We believe that the total impacts on the economy due to 
decreased travel to the United States are negligible.
    In summary, the closure of the port of Whitetail would cost CBP 
$158,000 in direct closure costs in the first year, and U.S. travelers 
$51,626 in time costs and $52,000 in vehicle costs annually. Total 
costs to close the port are thus approximately $262,000 in the first 
year and $104,000 each following year.
3. Net Effect of Closure
    The costs to CBP of leaving the port of Whitetail open are $8.5 
million the first year and $500,000 each following year. The cost of 
closing the port are $262,000 the first year and $104,000 each 
following year. Thus, the net benefit of the Whitetail closure is about 
$8.2 million the first year and $396,000 each year after that.

C. Regulatory Flexibility Act

    This section examines the impact of the rule on small entities as 
required by the Regulatory Flexibility Act (5 U.S.C. 603), as amended 
by the Small Business Regulatory Enforcement and Fairness Act of 1996. 
A small entity may be a small business (defined as any independently 
owned and operated business not dominant in its field that qualifies as 
a small business per the Small Business Act); a small not-for-profit 
organization; or a small governmental jurisdiction (locality with fewer 
than 50,000 people).
    Because CBP does not collect data on the number of small businesses 
that use the port of Whitetail, we cannot estimate how many would be 
affected by this rule. However, an average of only four vehicles cross 
into the United States at Whitetail each day, and the total cost of the 
rule to the public is only about $104,000 a year, even assuming the 
longest possible detour for all traffic. DHS does not believe that this 
cost rises to the level of a significant economic impact. DHS thus 
believes that this rule will not have a significant economic impact on 
a substantial number of small entities. DHS welcomes any comments 
regarding this assessment. If it does not receive any comments 
contradicting this finding, DHS will certify that this rule will not 
have a significant economic impact on a substantial number of small 
entities at the final rule stage.
D. Unfunded Mandates Reform Act of 1995
    This rule will not result in the expenditure by State, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions are necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995.
E. Executive Order 13132
    The rule will not have substantial direct effects on the States, on 
the relationship between the National Government and the States, or on 
the distribution of power and responsibilities among the various levels 
of government. Therefore, in accordance with section 6 of Executive 
Order 13132, this rule does not have sufficient federalism implications 
to warrant the preparation of a federalism summary impact statement.

V. Authority

    This change is proposed under the authority of 5 U.S.C. 301, 6 
U.S.C. 112, 203 and 211, 8 U.S.C. 1103 and 19 U.S.C. 2, 66 and 1624.

VI. Proposed Amendment to Regulations

    If the proposed closure of the port of Whitetail, Montana, is 
adopted, CBP will amend the lists of CBP ports of entry at 19 CFR 
101.3(b)(1) and 8 CFR 100.4(a) to reflect this change.

Janet Napolitano,
Secretary.
[FR Doc. 2011-21624 Filed 8-23-11; 8:45 am]
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