[Federal Register Volume 77, Number 58 (Monday, March 26, 2012)]
[Rules and Regulations]
[Pages 17331-17332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7229]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR PARTS 4 and 24

[CBP Dec. 12-04; USCBP-2008-0085]
RIN 1515-AD74


Interest on Untimely Paid Vessel Repair Duties

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule, without change, the 
proposed amendments to the CBP regulations that provide that where an 
owner or master of a vessel documented under the laws of the United 
States fails to timely pay the duties determined to be due to CBP that 
are associated with the purchase of equipment for, or repair to, the 
vessel while it is outside the United States, interest will accrue on 
the amounts owed to CBP and that person will be liable for interest. 
The purpose of this document is to ensure that the CBP regulations 
reflect that CBP collects interest as part of its inherent revenue 
collection functions in situations where an owner or master of a vessel 
fails to pay the vessel repair duties determined to be due within 30 
days of CBP issuing the bill.

DATES: Effective Date: April 25, 2012.

FOR FURTHER INFORMATION CONTACT: George F. McCray, Chief, Cargo 
Security, Carriers and Immigration Branch, Regulations and Rulings, 
Office of International Trade, (202) 325-0082.

SUPPLEMENTARY INFORMATION:

Background

    On April 1, 2011, U.S. Customs and Border Protection (CBP) 
published in the Federal Register (76 FR 18132) a proposal to amend 
title 19 of the Code of Federal Regulations (19 CFR) regarding the 
payment of interest on untimely paid vessel repairs. Specifically, CBP 
proposed amendments to the regulations to provide that where an owner 
or master of a vessel documented under the laws of the United States 
fails to timely pay the duties determined to be due to CBP that are 
associated with the purchase of equipment for, or repair to, the vessel 
while it is outside the United States, interest will accrue on the 
amounts owed to CBP and that person will be liable for interest.
    CBP solicited comments on the proposed rulemaking.

Discussion of Comment

    One commenter responded to the solicitation of public comment in 
the proposed rule. The comment was favorable and recommended adoption 
of the proposed amendments as a final rule.

Conclusion

    In light of the fact that a single favorable comment was submitted 
in response to CBP's solicitation of public comment, CBP has determined 
to adopt as final the proposed rule published in

[[Page 17332]]

the Federal Register (76 FR 18132) on April 1, 2011 without change.

The Regulatory Flexibility Act and Executive Order 12866

    Because these amendments merely reflect the agency's revenue 
collection functions and rights, and impose no additional regulatory 
burden on the importing public, pursuant to the provisions of the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., it is certified that 
the amendments will not have a significant economic impact on a 
substantial number of small entities. Further, these amendments do not 
meet the criteria for a ``significant regulatory action'' as specified 
in Executive Order 12866.

Paperwork Reduction Act

    As there are no new collections of information in this document, 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
are inapplicable.

Signing Authority

    This rulemaking is being issued in accordance with 19 CFR 
0.1(a)(1), pertaining to the authority of the Secretary of the Treasury 
(or his/her delegate) to approve regulations related to certain CBP 
revenue functions.

List of Subjects

19 CFR Part 4

    Administrative practice and procedure, Cargo vessels, Customs 
duties and inspection, Entry, Passenger vessels, Penalties, Repairs, 
Reporting and recordkeeping requirements, Shipping, Vessels.

19 CFR Part 24

    Accounting, Claims, Customs duties and inspection, Exports, 
Imports, Interest, Reporting and recordkeeping requirements, Taxes, 
User fees, Wages.

Amendments to the Regulations

    For the reasons set forth in the preamble, parts 4 and 24 of title 
19 of the CFR (19 CFR Parts 4 and 24) are amended as set forth below.

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADE

0
1. The general authority citation for part 4 continues, and the 
specific authority citation for Sec.  4.14 is revised, to read as 
follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624, 
2071 note; 46 U.S.C. 501, 60105.
* * * * *
    Section 4.14 also issued under 19 U.S.C. 1466, 1498; 31 U.S.C. 
9701.
* * * * *

0
2. In Sec.  4.14:
0
a. The section heading is revised;
0
b. Paragraph (i)(3) is redesignated as paragraph (i)(4) and a new 
paragraph (i)(3) is added; and
0
c. Paragraph (j)(1) is amended by adding a new third sentence.
    The revisions and additions read as follows:


Sec.  4.14  Equipment purchases for, and repairs to, American vessels.

* * * * *
    (i) * * *
    (3) Application for Relief; failure to file or denial in whole or 
in part. If no Application for Relief is filed, or if a timely filed 
Application for Relief is denied in whole or in part, the VRU will 
determine the amount of duty due and issue a bill to the party who 
filed the vessel repair entry. If the bill is not timely paid, interest 
will accrue as provided in Sec.  24.3a(b)(1) of this chapter.
    (j) * * *
    (1) * * * The owner or master of the vessel who fails to timely pay 
the duty determined to be due is liable for interest as provided in 
Sec.  24.3a(b)(1) of this chapter.
* * * * *

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

0
3. The general authority citation for part 24 is revised to read as 
follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General 
Note 3(i), Harmonized Tariff Schedule of the United States, 1505, 
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 3717, 9701; Pub. L. 107-
296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).
* * * * *

0
4. Section 24.3a is amended:
0
a. By revising the section heading;
0
b. In paragraph (a): by adding, after the parenthetical phrase that 
ends with the word ``reliquidation'', the language ``, or vessel repair 
duties,''; and by removing the words ``shall be'' and adding in their 
place the word ``are'';
0
c. In the heading text to paragraph (b)(1), by adding after the word 
``for'' the words ``vessel repair duties,'';
0
d. In paragraph (b)(2)(i) introductory text, by removing the word 
``shall'' and adding in its place the word ``will'';
0
e. In paragraph (b)(2)(i)(A), by removing the word ``shall'' and adding 
in its place the word ``will'';
0
f. In paragraph (b)(2)(i)(B) introductory text, by removing the word 
``shall'' and adding in its place the word ``will'';
0
g. In paragraph (b)(2)(i)(B)(1), by removing the word ``shall'' and 
adding in its place the word ``will'';
0
h. In paragraph (b)(2)(i)(B)(2), by removing the word ``shall'' and 
adding in its place the word ``will'';
0
i. In paragraph (b)(2)(i)(B)(3), by removing the word ``shall'' 
wherever it appears and adding in each place the word ``will'';
0
j. In paragraph (b)(2)(i)(B)(4), by removing the word ``shall'' and 
adding in its place the word ``will'';
0
k. In paragraph (b)(2)(i)(C), by removing the word ``shall'' and adding 
in its place the word ``will'';
0
l. In paragraph (b)(2)(ii), by removing the word ``shall'' wherever it 
appears and adding in each place the word ``will''; and
0
m. In paragraph (c)(1), by removing the words ``CBP Office of Finance, 
Indianapolis, Indiana'' and adding in their place the language ``CBP's 
Revenue Division, Office of Administration''.
    The revision reads as follows:


Sec.  24.3a  CBP bills; interest assessment on bills; delinquency; 
notice to principal and surety.

* * * * *

David V. Aguilar,
Acting Commissioner, U.S. Customs and Border Protection.
    Approved: March 21, 2012.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2012-7229 Filed 3-23-12; 8:45 am]
BILLING CODE 9111-14-P