You are on page 1of 10

Federal Register / Vol. 67, No.

217 / Friday, November 8, 2002 / Rules and Regulations 68027

impact of the AD on U.S. operators is provision, regardless of whether it has been ACTION: Final rule.
estimated to be $1,840,352. otherwise modified, altered, or repaired in
The regulations adopted herein will the area subject to the requirements of this SUMMARY: This document amends the
not have a substantial direct effect on AD. For helicopters that have been modified, Customs Regulations principally to
altered, or repaired so that the performance create a new class of bonded warehouse
the States, on the relationship between of the requirements of this AD is affected, the
the national Government and the States, exclusively for the receipt of general
owner/operator must request approval for an
or on the distribution of power and alternative method of compliance in order merchandise, and to include
responsibilities among the various accordance with paragraph (d) of this AD. procedures for authorizing and
levels of government. Therefore, it is The request should include an assessment of operating general order warehouses.
determined that this final rule does not the effect of the modification, alteration, or This amendment of the Customs
have federalism implications under repair on the unsafe condition addressed by Regulations is in response to a recent
Executive Order 13132. this AD; and if the unsafe condition has not increase in the amount of unentered
For the reasons discussed above, I been eliminated, the request should include merchandise being moved into general
specific proposed actions to address it.
certify that this action (1) is not a order facilities. This increase has
Compliance: Required as indicated, unless
‘‘significant regulatory action’’ under resulted from changes in the law, and it
accomplished previously.
Executive Order 12866; (2) is not a To prevent separation of a TT strap, loss has prompted the importing community
‘‘significant rule’’ under DOT of a main rotor blade, and subsequent loss of to request that Customs put in place
Regulatory Policies and Procedures (44 control of the helicopter, accomplish the uniform, national procedures for
FR 11034, February 26, 1979); and (3) following: approving and operating warehouses
will not have a significant economic (a) Before further flight, remove and receiving general order merchandise.
impact, positive or negative, on a replace any TT strap with 1,200 or more In addition, changes are made to the
substantial number of small entities hours time-in-service (TIS) or 24 or more Customs Regulations to implement
months since initial installation on any
under the criteria of the Regulatory helicopter, whichever occurs first. certain amendments to the law made by
Flexibility Act. A final evaluation has (b) This AD revises the Limitations section the Customs modernization portion of
been prepared for this action and it is of the maintenance manual by establishing a the North American Free Trade
contained in the Rules Docket. A copy life limit for the TT straps, P/N 204–012– Agreement Implementation Act. The
of it may be obtained from the FAA, 122–1, –5, or 214–010–179–1, of 1200 hours amendments concern the circumstances
Office of the Regional Counsel, TIS or 24 months since initial installation on where the title to unclaimed and
Southwest Region, 2601 Meacham any helicopter, whichever occurs first. abandoned merchandise vests in the
Blvd., Room 663, Fort Worth, Texas. (c) Special flight permits will not be
Government, in lieu of sale of the
issued.
(d) An alternative method of compliance or merchandise at public auction.
List of Subjects in 14 CFR Part 39
adjustment of the compliance time that EFFECTIVE DATE: December 9, 2002.
Air transportation, Aircraft, Aviation provides an acceptable level of safety may be FOR FURTHER INFORMATION CONTACT: Tim
safety, Safety. used if approved by the Manager, Rotorcraft Sushil, Office of Field Operations, 202–
Adoption of the Amendment Certification Office, Rotorcraft Directorate,
FAA. Operators shall submit their requests
927–0564.
Accordingly, pursuant to the through an FAA Principal Maintenance SUPPLEMENTARY INFORMATION:
authority delegated to me by the Inspector, who may concur or comment and
then send it to the Manager, Rotorcraft Background
Administrator, the Federal Aviation
Certification Office. Title VI of the North American Free
Administration amends part 39 of the
Federal Aviation Regulations (14 CFR Note 2: Information concerning the Trade Agreement Implementation Act,
existence of approved alternative methods of 107 Stat. 2057 (Pub. L. 103–182;
part 39) as follows:
compliance with this AD, if any, may be December 8, 1993), popularly known as
obtained from the Rotorcraft Certification the Customs Modernization Act (Mod
PART 39—AIRWORTHINESS
Office.
DIRECTIVES Act), amended a number of Customs
(e) This amendment becomes effective on and navigation laws.
1. The authority citation for part 39 December 13, 2002.
Some of these amendments affected
continues to read as follows: Issued in Fort Worth, Texas, on October 28, the treatment of general order
Authority: 49 U.S.C. 106(g), 40113, 44701. 2002. merchandise. General order
David A. Downey, merchandise is merchandise that is
§ 39.13 [Amended]
Manager, Rotorcraft Directorate, Aircraft required to be deposited in a bonded
2. Section 39.13 is amended by Certification Service. warehouse at the risk and expense of the
removing Amendment 39–3876 (45 FR [FR Doc. 02–28411 Filed 11–7–02; 8:45 am] consignee because it is not timely
54014, August 14, 1980) and by adding BILLING CODE 4910–13–P entered as provided by law or
a new airworthiness directive (AD), regulation, entry for it is incomplete
Amendment 39–12941, to read as because estimated duties, fees or
follows: DEPARTMENT OF THE TREASURY interest has not been paid, entry cannot
2002–22–14 Bell Helicopter Textron, Inc.: be made for it due to lack of proper
Amendment 39–12941. Docket No. Customs Service documentation or other cause, or
2001–SW–42–AD. Supersedes AD 80– because it is not correctly or legally
17–09, Amendment 39–3876, Docket No. 19 CFR Parts 4, 19, 122, 123, 127, 141, invoiced. See 19 U.S.C. 1490(a).
80–ASW–25. 142 and 178 Customs has denominated the type of
Applicability: Model 204B, 205A, 205A–1, bonded warehouse in which this type of
205B, 212, 214B, and 214B–1 helicopters, [T.D. 02–65]
with main rotor tension-torsion (TT) strap,
merchandise must be deposited as a
RIN 1515–AC57 general order warehouse. See 19 CFR
part number (P/N) 204–012–122–1, –5, or
214–010–179–1, installed, certificated in any 127.1.
General Order Warehouses
category. In particular, section 656 of the Mod
Note 1: This AD applies to each helicopter AGENCY: Customs Service, Department Act amended 19 U.S.C. 1448(a) to
identified in the preceding applicability of the Treasury. provide, among other things, that the

VerDate 0ct<31>2002 16:34 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1
68028 Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / Rules and Regulations

owner or master of any vessel or Accordingly, by a document storage in general order status of
vehicle, or agent thereof, would be published in the Federal Register (65 unentered merchandise following due
required to notify Customs of any FR 42893) on July 12, 2000, Customs notification by the arriving carrier or
merchandise or baggage unladen from proposed that a new class of bonded other bonded carrier of the presence of
the vessel or vehicle, for which entry warehouse, a class 11 warehouse, be such merchandise.
was not made within the time established exclusively to handle the Moreover, §§ 4.37, 122.50 and 123.10
prescribed by law or regulation; and if receipt of general order merchandise as were to be amended to provide that if
entry were not made within the described in § 127.1, Customs a carrier or other party to whom the
prescribed time, the master or person in Regulations (19 CFR 127.1). original carrier had properly transferred
charge of the importing vessel or It was further proposed that a class 3, unclaimed and abandoned goods
vehicle, or agent thereof, would be 4, or 5 bonded warehouse, as described refused to relinquish custody over the
responsible for such unentered in § 19.1(a)(3), (4), or (5), Customs goods to a general order warehouse
merchandise until it was removed from Regulations (19 CFR 19.1(a)(3), (4), or proprietor, the carrier or other party
the carrier’s control and placed in (5)), could likewise be used for the would be liable for liquidated damages
general order status in accordance with deposit of general order merchandise, under the international carrier or
19 U.S.C. 1490. but only if there were no class 11 custodial bond, as applicable; and
In concert with this, section 658 of the warehouse otherwise available to §§ 4.37, 122.50 and 123.10 were to be
Mod Act amended 19 U.S.C. 1490 by receive the merchandise, and provided further amended to provide that in cases
deleting the requirement that a Customs the class 3, 4, or 5 warehouse had also where the warehouse proprietor was
officer take unentered merchandise into been certified by the port director as unable to accept goods into general
Customs custody and send it to a meeting the criteria for a class 11 order because the goods were required
bonded warehouse. Instead, carriers are warehouse, following an application to be exported or destroyed, or for other
now required to notify both Customs under § 19.2, Customs Regulations (19 good cause, the carrier or other party to
and a bonded warehouse of the CFR 19.2). whom the original carrier had properly
unentered merchandise, and the bonded To this end, § 19.1 was proposed to be transferred the goods would be
warehouse is then responsible for amended to include provisions for responsible under bond for exporting or
arranging for the transportation and general order warehouses. Matters destroying the goods, as necessary. It
storage of the merchandise at the risk relating to inventory control and was further proposed that § 127.13,
and expense of the consignee. minimum space requirements for Customs Regulations (19 CFR 127.13),
These, and related, statutory general order warehouses were also be changed consistent with §§ 4.37,
amendments were implemented by a addressed in the proposed rule, in 122.50 and 123.10.
final rule document amending the §§ 19.2 and 19.12, respectively. Also, the proposed rule would revise
Customs Regulations, that was Additionally, an amendment to § 127.14 to require that the warehouse
published in the Federal Register (63 § 19.2(f) was proposed to allow the port proprietor assume the responsibility and
FR 51283) on September 25, 1998, as director to require a business entity expense for the destruction of general
T.D. 98–74. seeking approval to establish a Customs order merchandise, in the event that
Based on the statutory amendments, bonded warehouse to submit such destruction were found to be
and the Customs Regulations fingerprints, as part of the application warranted under the circumstances (i.e.,
implementing them, imported process, for all its employees, as where the port director concludes that
merchandise could not remain at the opposed to only those of all officers and the merchandise has no commercial
wharf, pier or other place of unlading managing officials of the business value or cannot be disposed of at public
more than 15 calendar days after its entity, as is currently the case; this auction (unsalable)); however, before
landing; or, if transferred from the proposed change would pertain to an destroying the merchandise, the
arriving carrier to any party under a application by a business entity to warehouse proprietor would first have
Customs-authorized permit to transfer establish any Customs bonded to make a reasonable effort to identify
or in-bond entry, the merchandise could warehouse, including a general order and inform the importer (owner) or
not remain in the custody of that party warehouse. consignee of the merchandise regarding
more than 15 calendar days after its Furthermore, the proposed rule put its intended destruction.
receipt under a Customs-authorized forth amendments to §§ 4.37, 19.9,
permit to transfer or more than 15 122.50 and 123.10, Customs Regulations Mod Act Changes; Title to Unclaimed
calendar days after its arrival at the port (19 CFR 4.37, 19.9, 122.50 and 123.10), Merchandise Vesting in Government
of destination, as provided in §§ 4.37, that would make it the responsibility of In addition, under the proposed rule,
122.50, 123.10, Customs Regulations (19 the warehouse proprietor to prepare a § 127.14(a) would be revised and a new
CFR 4.37, 122.50, 123.10). There is no Customs Form (CF) 6043 (Delivery subpart E would be added to part 127
provision in these regulations for any Ticket), or other similar Customs essentially to conform with and
extension of this 15-day period. document as designated by the port implement a number of amendments
Customs and the trade have director or an electronic equivalent as made by section 659 of the Mod Act to
consequently seen an increase in the authorized by Customs, that covered the 19 U.S.C. 1491 concerning the provision
amount of unentered merchandise proprietor’s receipt of the merchandise that under certain conditions title to
moving into general order facilities, and its transport to the warehouse from unclaimed and abandoned merchandise
including merchandise, such as the custody of the carrier (or from any could vest in the United States, as an
hazardous materials, requiring other party to whom custody of the alternative to the Government having to
specialized storage facilities. Due to this merchandise had been transferred by a sell such merchandise at public auction.
increase in merchandise moving into Customs-authorized permit to transfer
temporary storage in general order or in-bond entry). This was intended to Time Limit Within Which To Make
status, the trade community has sought recognize and specifically implement Entry; Conforming Changes
the establishment of national, uniform the existing requirement described Finally, in conformance with the
criteria for the approval and operation above that the warehouse proprietor be changes already made under T.D. 98–74
of general order warehouses. responsible for the transportation and to §§ 4.37, 122.50, and 123.10, as

VerDate 0ct<31>2002 15:11 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1
Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / Rules and Regulations 68029

discussed above, the proposed rule continue to have a choice as to the Comment
would similarly revise §§ 141.5 and particular G.O. warehouse to which
In proposed § 19.12(a), one
142.2, Customs Regulations (19 CFR their shipments may be sent.
commenter was concerned about the
141.5, 142.2), to require that the entry of
Comment expense of an automated inventory
merchandise be made within 15
One commenter suggested that class system that would be a requirement for
calendar days (as opposed to 5 working
11 G.O. warehouses be allowed to rent a general order warehouse. The
days) after landing from a vessel, aircraft
or lease additional space for the storage commenter requested that small
or vehicle, or after arrival at the port of
of G.O. merchandise. warehouses be allowed to continue with
destination in the case of merchandise
a manual system. In the alternative, it
transported in bond. Customs Response was suggested that Customs should bear
Discussion of Comments Section 19.1(c) already provides for some of the costs associated with an
Six commenters responded to the this. Any warehouse eligible to receive automated inventory system.
notice of proposed rulemaking. A general order merchandise (a class 3, 4, Customs Response
description of the issues raised by these 5, or 11 warehouse) may rent or lease
commenters, and Customs response to suitable premises for the storage of such Customs has concluded that the
each issue, is set forth below. merchandise, if there is no space at the requirement for an automated inventory
It is initially noted, however, that one warehouse otherwise available. system should apply to all general order
commenter made certain suggestions warehouses. Most warehouses already
Comment have an automated system that could
during the proposed rulemaking
comment period that were outside the Several commenters requested that likewise be extended to include G.O.
scope of the notice, in particular: in Customs elaborate on the provision in merchandise; against this backdrop,
connection with the unentered proposed § 19.2(d) regarding minimum automation should not impose an
merchandise described in §§ 4.37(b), space requirements and other criteria for unreasonable cost. In addition, it is
122.50(b) and 123.10(b), to require that becoming a G.O. facility. In particular, noted that in § 19.12(a) existing G.O.
a carrier notify a general order one commenter asked that Customs warehouses will be given a phase-in
warehouse of the presence of such impose regulatory limits on the number period of 2 years within which to
unentered merchandise within the 15- of G.O. warehouses that could operate automate their recordkeeping. This time
day period, as opposed to the 20-day in a port and, furthermore, that Customs frame should be adequate and provide
period, described in those sections; and specify in its regulations those parties ample time especially for smaller
to add a requirement in part 127 that that could not qualify to operate a G.O. operators to defray some of the costs
carriers provide all information to the warehouse. that they incur with automation. In this
warehouse that they have on the regard, Customs will not be involved in
Customs Response
consignee of unclaimed merchandise in the cost, support, or maintenance of an
order to facilitate the preparation of Customs does not believe that further automated inventory system. It is
notices of sale for the merchandise. elaboration upon these matters in the properly the responsibility of the
Such recommendations which, while regulations is warranted. Both the warehouse proprietor to choose an
related, fell outside the scope of the number of facilities and the space automated system that best suits the
original notice of proposed rulemaking, required for G.O. merchandise will vary particular needs of the warehouse and
are not addressed in this document. If from port to port; therefore no one that fulfills Customs regulatory
found warranted, they would need to be standard can or should be applied. requirements.
the subject of another rulemaking Comment Comment
document. One commenter objected to proposed In proposed § 19.12(a), several
General Order Warehouses; Part 19 § 19.2(f) which provided that the port commenters thought that the ‘‘phase-in’’
director ‘‘may’’ require a business entity period for automation was overly long.
Comment seeking to establish a Customs bonded
One commenter objected to the warehouse to submit fingerprints from Customs Response
provision in proposed § 19.1(c) all its employees, as part of the Customs finds that this two-year
requiring that an available class 11 application process, instead of limiting phase-in allowance is reasonable and
(General Order) warehouse be used to the submission of fingerprints to those prudent. As already observed, it will
handle general order merchandise, in of all officers and managing officials of afford some of the smaller G.O.
preference to another available general the business entity, as is currently the warehouses needed time to acquire and
order (G.O.) warehouse of class 3, 4, or case. On the other hand, several install an automated record system and
5. The commenter asserted that a commenters wanted the word ‘‘may’’ in to defray their cost in so doing.
mandatory requirement to this effect proposed § 19.2(f) replaced with
would be unfair, would competitively ‘‘should’’. Transferring Unentered Merchandise to
disadvantage G.O. warehouses of class a G.O. Warehouse; Sections 4.37,
Customs Response 122.50 and 123.10
3, 4 or 5, and would eliminate choice for
the importing public in this area. Customs disagrees with both views.
Comment
The port director should have the
Customs Response discretion to determine the extent of One commenter asked that an explicit
Customs agrees. Section 19.1(c) is scrutiny that is called for in given statement be included in §§ 4.37(b),
revised to eliminate any requirement to circumstances with respect to a business 122.50(b) and 123.10(b) limiting to 15
use a class 11 warehouse over an entity that is applying for approval to calendar days the period during which
existing class 3, 4 or 5 warehouse that establish a Customs bonded warehouse, unentered merchandise may remain in
has been approved to handle general including the ability to require the custody of the arriving carrier or
order merchandise. Carriers and the fingerprints from all employees of the other bonded carrier to whom such
importing community should, and will, business entity. merchandise was properly transferred.

VerDate 0ct<31>2002 15:11 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1
68030 Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / Rules and Regulations

Customs Response liable for* * *’’ in proposed § 4.37(d) already stated in §§ 4.37(e), 122.50(e)
Customs believes that this 15 be changed to ‘‘the carrier shall, as and 123.10(e), if the port director finds
calendar-day limitation is already determined by the port director, be that the warehouse proprietor cannot
clearly set forth in the cited regulatory liable for* * *’’. accept goods because they are required
provisions and that no change is by law to be exported or destroyed, or
Customs Response
needed. for other good cause, such goods will
The penalty contained in § 4.37(a) remain in the custody of the arriving
Comment (also see §§ 122.50(a) and 123.10(a)) carrier or other bonded carrier for
Two commenters objected to the may be assessed against the master or purposes of export or destruction. It is
provision in proposed §§ 4.37(c), owner of an arriving vessel, or the agent incumbent upon the warehouse
19.9(a), 122.50(c) and 123.10(c) making of the master or owner, for failing to proprietor to take reasonable steps to
it the responsibility of the G.O. timely notify Customs of the presence of inquire about and ascertain the nature
warehouse proprietor to prepare the unclaimed merchandise that has been and condition of the goods before
transfer documentation (CF 6043 or unladen from the vessel. The penalty is accepting them. Once goods are
other approved form or an electronic up to $1,000 per bill of lading; however, accepted into the custody of the
equivalent) to cover the proprietor’s if the value of the unclaimed warehouse proprietor, the appropriate
receipt of unentered merchandise and merchandise on the bill is less than disposition of the goods would at that
its transport to the G.O. warehouse from $1,000, the penalty will simply be equal point accordingly become the
the custody of the arriving carrier (or to the value of such merchandise. responsibility of the proprietor.
other bonded carrier). Liquidated damages in § 4.37(d) (also
see §§ 122.50(d) and 123.10(d)) may be Title to Unclaimed Merchandise
Customs Response assessed against an arriving carrier or Vesting in Government; Part 127
Customs agrees. The preparation of other party to whom the arriving carrier Comment
the transfer documentation (CF 6043 or has properly transferred the unentered,
other approved form or electronic unreleased merchandise if the carrier or Several commenters objected to the
equivalent) should remain with the other party fails to timely relinquish provisions in proposed subpart E of part
bonded carrier (or other party to which custody over the merchandise to a 127 regarding unclaimed merchandise
the bonded carrier has properly warehouse authorized to receive it. To the title to which vests in the U.S.
transferred the merchandise). Customs this end, § 4.37(d) is changed to make Government. In particular, they wanted
acknowledges that this is the existing clear that liquidated damages would to be compensated by the Government
procedure in most ports. As a practical only apply if the carrier fails to ‘‘timely’’ for their storage and transportation
matter, the G.O. warehouse proprietor relinquish custody over the subject charges on cargo to which the
does not have sufficient information as merchandise. Sections 122.50(d) and Government decides to take title and
to the identity and quantity of the 123.10(d) are likewise changed. retain for its own use. These
unentered cargo to expeditiously and However, Customs finds that the change commenters contended that not being
knowledgeably prepare such transfer suggested by the commenter is not reimbursed for any expenses they
documentation prior to acceptance of needed. If applicable, liquidated incurred for the six-month G.O. period
the goods. Thus, shifting the damages would be assessed under the would impose a great financial burden
responsibility for preparation of the international carrier bond of the arriving upon them.
delivery ticket from the arriving carrier carrier or the custodial bond of the other Customs Response
(or other bonded carrier) to the party, as appropriate.
Customs believes that the
warehouse proprietor would Comment commenters’ concerns are unfounded. It
unnecessarily delay the transfer of
With respect to proposed §§ 4.37(e), is true that under the conditions
unentered merchandise to general order.
122.50(e) and 123.10(e), several specified in 19 U.S.C. 1491(b), the title
Sections 4.37(c), 19.9(a), 122.50(c) and
commenters wanted to give G.O. to unclaimed merchandise may vest in
123.10(c) are changed accordingly.
warehouse proprietors the right to the U.S. Government free and clear of
Comment refuse any shipments that they did not any liens or encumbrances. Yet, while
Two commenters suggested that the want to accept. One commenter wanted the Government may retain title to
phrase ‘‘Customs-approved bonded a right to return merchandise to the unclaimed merchandise free and clear
warehouse’’ appearing in proposed carrier, and asked that a provision be of any liens or encumbrances, all
§§ 4.37(d), 122.50(d), and 123.10(d) added to the regulations that the carrier transfer and storage charges or expenses
should be replaced by ‘‘Customs- must accept the return of such accruing on the merchandise are,
approved bonded General Order merchandise, if the merchandise was nevertheless, required to be paid by the
warehouse’’. sent to the warehouse improperly Federal, State or local government
because it was hazardous material or agency that receives the merchandise,
Customs Response was otherwise required to be exported pursuant to 19 U.S.C. 1491(c). Such
Customs agrees. Sections 4.37(d), or destroyed. transfer and storage charges would
122.50(d), and 123.10(d) are changed include those accruing with respect to
Customs Response the merchandise while subject to
accordingly.
A bonded warehouse proprietor may general order. Section 127.42(b) is
Comment not lawfully decline to accept general revised to make this clear.
One commenter requested order merchandise that the warehouse is
clarification as to the difference between eligible to receive and is capable of Adoption of Proposal
the liquidated damages provision in storing. The underlying general order In view of the foregoing, and
proposed § 4.37(d) and the penalties statute (19 U.S.C. 1490(a)) does not following careful consideration of the
authorized under § 4.37(a). This envision an unfettered right on the part comments received and further review
commenter also requested that the of the warehouse proprietor to refuse of the matter, Customs has concluded
phrase ‘‘carrier or other party may be general order goods. However, as that the proposed amendments with the

VerDate 0ct<31>2002 15:11 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1
Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / Rules and Regulations 68031

modifications discussed above and the Nor do they meet the criteria for a appropriately revised to reflect this
additional changes discussed below ‘‘significant regulatory action’’ as additional information collection.
should be adopted as a final rule. specified in E.O. 12866.
List of Subjects
Additional Changes Paperwork Reduction Act
19 CFR Part 4
Section 19.1(b) is amended to provide The collections of information in this
that a class 11 (general order) warehouse final rule document had in part already Cargo vessels, Common carriers,
may be designated as a constructive been reviewed by the Office of Customs duties and inspection, Entry,
manipulation (class 8) warehouse when Management and Budget (OMB) in Exports, Imports, Maritime carriers,
the exigencies of the service so require. accordance with the Paperwork Passenger vessels, Reporting and
Also, § 127.21 is changed to grant port Reduction Act of 1995 (44 U.S.C. 3507) recordkeeping requirements, Shipping,
directors the authority to defer sales of and assigned OMB Control Numbers Vessels.
unclaimed and abandoned (general 1515–0121 (Information to be supplied
19 CFR Part 19
order) merchandise. Currently, § 127.21 by owner or lessee in support of
requires that unclaimed and abandoned application to establish a bonded Bonds, Customs duties and
merchandise be sold at the first regular warehouse facility); and 1515–0220 inspection, Freight, Imports, Licensing,
sale held after the merchandise becomes (Notification regarding imported Reporting and recordkeeping
subject to sale, unless a deferment on merchandise or baggage for which entry requirements, Warehouses.
selling it is authorized by the has not been made). This document
Commissioner of Customs. Customs has restates these collections of information 19 CFR Part 122
decided that this deferral authority be at without material change. Air carriers, Aircraft, Airports, Air
the port level. The remaining collection of
transportation, Baggage, Bonds, Customs
Furthermore, § 127.28(a) is changed information in this final rule document
duties and inspection, Foreign
so as to more clearly emphasize the was submitted for review and has been
commerce and trade statistics, Freight,
necessity that drugs, seeds, plants, approved by the Office of Management
Imports, Reporting and recordkeeping
nursery stock and other articles, when and Budget (OMB) in accordance with
requirements.
so required, must be inspected by a the requirements of the Paperwork
representative of the Department of Reduction Act of 1995 (44 U.S.C. 19 CFR Part 123
Agriculture to determine whether the 3507(d)) under control number 1515–
articles comply with the law and 0224. An agency may not conduct or Aircraft, Canada, Customs duties and
regulations administered by that sponsor, and a person is not required to inspection, Imports, International
Department, especially given that, respond to, a collection of information boundaries, International traffic,
where found to be in noncompliance, unless the collection of information Mexico, Motor carriers, Railroads,
such articles would need to be displays a valid control number. Reporting and recordkeeping
immediately destroyed. This latter collection of information is requirements, Trade agreements,
Finally, Customs has decided that contained in §§ 4.37(c), 19.9(a), Vehicles, Vessels.
§ 127.41(a) should be revised to state 122.50(c), and 123.10(c). This 19 CFR Part 127
that the port director may provide for information is necessary to: Expedite
the vesting of title to unclaimed and the handling and disposition of general Customs duties and inspection,
abandoned merchandise in the United order merchandise; ensure that Exports, Freight, Reporting and
States, with the concurrence of the merchandise and baggage imported into recordkeeping requirements.
Assistant Commissioner, Office of Field the United States has been properly
19 CFR Part 141
Operations, rather than with the accounted for in accordance with the
concurrence of the Commissioner of requirements of the statutory law; and Customs duties and inspection, Entry
Customs, as initially proposed. facilitate consistent and uniform of merchandise, Release of merchandise,
treatment in the administration of Reporting and recordkeeping
Regulatory Flexibility Act and
general order warehouses. The likely requirements.
Executive Order 12866
respondents and/or recordkeepers are
The amendments primarily dealing business organizations, including 19 CFR Part 142
with general order warehouses are importers and carriers. The estimated Administrative practice and
intended to expedite the handling and average annual burden associated with procedure, Common carriers (Carrier
disposition of general order this information collection is 33 hours initiative program), Customs duties and
merchandise, and to further facilitate per respondent or recordkeeper. inspection, Entry of merchandise (Line
consistent and uniform treatment in the Comments on the accuracy of this release), Reporting and recordkeeping
administration of general order burden estimate and suggestions for requirements.
warehouses. Also, the amendments reducing this burden should be sent to
dealing with the Mod Act are intended the Office of Management and Budget, 19 CFR Part 178
to conform with, implement and enforce Attention: Desk Officer for the
the provisions of the statutory law and Department of the Treasury, Office of Administrative practice and
ensure the protection of the revenue. As Information and Regulatory Affairs, procedure, Collections of information,
such, pursuant to the provisions of the Washington, DC 20503. A copy should Imports, Paperwork requirements,
Regulatory Flexibility Act (5 U.S.C. 601 also be sent to the Regulations Branch, Reporting and recordkeeping
et seq.), it is certified that these Office of Regulations and Rulings, U.S. requirements.
amendments will not have a significant Customs Service, 1300 Pennsylvania Amendments to the Regulations
economic impact on a substantial Avenue, NW., 3rd Floor, Washington,
number of small entities. Accordingly, DC 20229. Parts 4, 19, 122, 123, 127, 141, 142
the amendments are not subject to the Part 178, Customs Regulations (19 and 178, Customs Regulations (19 CFR
regulatory analysis or other CFR part 178), containing the list of parts 4, 19, 122, 123, 127, 141, 142 and
requirements of 5 U.S.C. 603 and 604. approved information collections, is 178), are amended as set forth below.

VerDate 0ct<31>2002 15:11 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1
68032 Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / Rules and Regulations

PART 4—VESSELS IN FOREIGN AND this event, the carrier or other party will are used for the purpose of handling
DOMESTIC TRADES be responsible under bond for exporting general order goods, they will also be
or destroying the goods, as necessary considered general order (class 11)
1. The general authority citation for (see §§ 113.63(c)(3) and 113.64(b) of this warehouses. If there is no space at a
part 4 and the relevant specific chapter). warehouse of any of these classes
authority citation continue to read as available, the proprietor of such a
follows: * * * * *
warehouse, with the approval of the
Authority: 5 U.S.C. 301; 19 U.S.C. 66, PART 19—CUSTOMS WAREHOUSES, port director of the port nearest to where
1431, 1433, 1434, 1624; 46 U.S.C. App. 3, 91. CONTAINER STATIONS, AND the warehouse is located, may rent or
* * * * * CONTROL OF MERCHANDISE lease additional suitable premises for
Section 4.37 also issued under 19 U.S.C. THEREIN the storage of general order
1448, 1457, 1490; merchandise.
* * * * * 1. The general and relevant specific 3. Section 19.2 is amended by adding
2. Section 4.37 is amended as follows: authority citations for part 19 continue a new paragraph (d) and by revising the
a. By adding a sentence after the third to read as follows: second sentence of paragraph (f) to read
sentence in paragraph (c), Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 as follows:
b. By redesignating paragraphs (d), (e), (General Note 23, Harmonized Tariff
(f), and (g), respectively, as paragraphs Schedule of the United States), 1624; § 19.2 Applications to bond.
(e), (f), (g), and (h), and adding a new Section 19.1 also issued under 19 U.S.C. * * * * *
paragraph (d), and 1311, 1312, 1555, 1556, 1557, 1560, 1561, (d) An applicant desiring to establish
c. By adding two sentences at the end 1562; a general order warehouse may need to
of redesignated paragraph (e). * * * * * establish, as a condition of approval of
The additions and revisions read as 2. Section 19.1 is amended as follows: the application, that the warehouse will
follows: a. By adding a heading to paragraph meet minimum space requirements
(a), imposed by the port director to
§ 4.37 General order.
b. By revising paragraph (a)(1), accommodate the storage of general
* * * * * c. By reserving paragraph (a)(10) and order merchandise. Any space
(c) * * * The arriving carrier (or other adding a new paragraph (a)(11), requirements will be posted by written
party to whom custody of the d. By revising paragraph (b), and notice at the customhouse and on the
merchandise was transferred by the e. By adding a new paragraph (c). appropriate Customs-authorized
arriving carrier under a Customs- The additions and revisions read as electronic data interchange system. An
authorized permit to transfer or in-bond follows: applicant will not be subject to any
entry) is responsible for preparing a
§ 19.1 Classes of customs warehouses. minimum space requirements that are
Customs Form (CF) 6043 (Delivery
(a) Classifications. * * * posted after the filing of his application.
Ticket), or other similar Customs
document designated by the port (1) Class 1. Premises that may be * * * * *
director or an electronic equivalent as owned or leased by the Government, (f) * * * The port director may
authorized by Customs, to cover the when the exigencies of the service as require an individual applicant to
proprietor’s receiptof the merchandise determined by the port director so submit fingerprints on form FD 258 or
and its transport to the warehouse from require, and used for the storage of electronically at the time of filing the
the custody of the arriving carrier (or merchandise undergoing examination application, or in the case of
other party to whom custody of the by Customs, under seizure, or pending applications from a business entity, may
merchandise was transferred by the final release from Customs custody. require the fingerprints, on form FD 258
carrier under a Customs-authorized Merchandise will be stored in such or electronically, of all employees of the
permit to transfer or in-bond entry) (see premises only at Customs direction and business entity.
§ 19.9 of this chapter). * * * will be held under ‘‘general order.’’ * * * * *
(d) If a carrier or any other party to * * * * * 4. Section 19.9 is amended by revising
whom custody of the unentered (11) Class 11. Bonded warehouses, paragraph (a) to read as follows:
merchandise has been transferred by known as ‘‘general order warehouses,’’
means of a Customs-authorized permit established for the storage and § 19.9 General order, abandoned, and
to transfer or in-bond entry fails to disposition exclusively of general order seized merchandise.
timely relinquish custody of the merchandise as described in § 127.1 of (a) Acceptance of merchandise. The
merchandise to a Customs-approved this chapter. arriving carrier (or other party to whom
bonded General Order warehouse, the (b) Manipulation. The whole or a part custody of the merchandise was
carrier or other party may be liable for of any warehouse of class 1, 2, 3, 4, 5, transferred by the carrier under a
liquidated damages equal to the value of 6, 7, or 11 may be designated a Customs-authorized permit to transfer
that merchandise under the terms and constructive manipulation (class 8) or in-bond entry) is responsible for
conditions of his international carrier or warehouse when the exigencies of the preparing a Customs Form (CF) 6043
custodial bond, as applicable. service so require. (Delivery Ticket), or other similar
(e) * * * If the port director finds that (c) General order. General order Customs document as designated by the
the warehouse operator cannot accept merchandise as described in § 127.1 of port director or an electronic equivalent
the goods because they are required by this chapter may be stored and disposed as authorized by Customs, to cover the
law to be exported or destroyed (see of in a class 11 warehouse or a proprietor’s receipt of the merchandise
§ 127.28 of this chapter), or for other warehouse of class 3, 4, or 5, provided and its transport to the warehouse from
good cause, the goods will remain in the the class 3, 4, or 5 warehouse has also the custody of the arriving carrier (or
custody of the arriving carrier or other been certified by the port director as other party to whom custody of the
party to whom the goods have been meeting the criteria for a class 11 merchandise was transferred by the
transferred under a Customs-authorized warehouse, following an application carrier under a Customs-authorized
permit to transfer or in-bond entry. In under § 19.2. So far as such warehouses permit to transfer or in-bond entry). A

VerDate 0ct<31>2002 15:11 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1
Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / Rules and Regulations 68033

joint determination will be made by the merchandise was transferred by the The revisions and additions read as
warehouse proprietor and the bonded carrier under a Customs-authorized follows:
carrier of the quantity and condition of permit to transfer or in-bond entry) is
the goods or articles so delivered to the responsible for preparing a Customs § 123.10 General order merchandise.
warehouse. Within two working days of Form (CF) 6043 (Delivery Ticket), or * * * * *
the joint determination, the warehouse other similar Customs document as (c) * * * The arriving carrier (or other
proprietor will report to the port designated by the port director or an party to whom custody of the
director any discrepancy between the electronic equivalent as authorized by merchandise was transferred by the
quantity and condition of the goods and Customs, to cover the proprietor’s carrier under a Customs-authorized
that reported on CF 6043, or other receipt of the merchandise and its permit to transfer or in-bond entry) is
similar Customs document as transport to the warehouse from the responsible for preparing a Customs
designated by the port director or an custody of the arriving carrier (or other Form (CF) 6043 (Delivery Ticket), or
electronic equivalent as authorized by party to whom custody of the other similar Customs document as
Customs. merchandise was transferred by the designated by the port director or an
* * * * * carrier under a Customs-authorized electronic equivalent as authorized by
permit to transfer or in-bond entry) (see Customs, to cover the proprietor’s
5. Section 19.12 is amended by
§ 19.9 of this chapter). * * * receipt of the merchandise and its
revising the introductory text of
(d) If the carrier or any other party to transport to the warehouse from the
paragraph (a) to read as follows:
whom custody of the unentered custody of the arriving carrier (or other
§ 19.12 Inventory control and merchandise has been transferred by a party to whom custody of the
recordkeeping system. Customs-authorized permit to transfer merchandise was transferred by the
(a) Systems capability. The proprietor or in-bond entry fails to timely carrier under a Customs-authorized
of a class 11 general order warehouse as relinquish custody of the merchandise permit to transfer or in-bond entry) (see
described in § 19.1 must have an to a Customs-approved bonded General § 19.9 of this chapter). * * *
automated inventory control and Order warehouse, the carrier or other (d) If the carrier or any other party to
recordkeeping system. Proprietors of party may be liable for liquidated whom custody of the unentered
existing class 3, 4, or 5 warehouses as damages equal to the value of that merchandise has been transferred by a
described in § 19.1 certified before merchandise under the terms and Customs-authorized permit to transfer
December 9, 2002, to receive general conditions of his international carrier or or in-bond entry fails to timely
order merchandise must have custodial bond, as applicable. relinquish custody of the merchandise
automated inventory control and (e) * * * If the port director finds that to a Customs-approved bonded General
recordkeeping systems in place with the warehouse proprietor cannot accept Order warehouse, the carrier or other
respect to general order merchandise the goods because they are required by party may be liable for liquidated
after a period of 2 years from December law to be exported or destroyed (see damages equal to the value of that
9, 2002. All other warehouse proprietors § 127.28 of this chapter), or for other merchandise under the terms and
have a choice of maintaining manual or good cause, the goods will remain in the conditions of his international carrier or
automated inventory control and custody of the arriving carrier or other custodial bond, as applicable.
recordkeeping systems or a combination party to whom the goods have been (e) * * * If the port director finds that
of manual and automated systems. All transferred under a Customs-authorized the warehouse proprietor cannot accept
inventory control and recordkeeping permit to transfer or in-bond entry. In the goods because they are required by
systems must be capable of: this event, the carrier or other party will law to be exported or destroyed (see
* * * * * be responsible under bond for exporting § 127.28 of this chapter), or for other
or destroying the goods, as necessary good cause, the goods will remain in the
PART 122—AIR COMMERCE (see §§ 113.63(c)(3) and 113.64(b) of this custody of the arriving carrier or other
REGULATIONS chapter). party to whom the goods have been
transferred under a Customs-authorized
* * * * *
1. The authority citation for part 122 permit to transfer or in-bond entry. In
continues to read as follows: PART 123—CUSTOMS RELATIONS this event, the carrier or other party will
Authority: 5 U.S.C. 301; 19 U.S.C. 58b, 66, WITH CANADA AND MEXICO be responsible under bond for exporting
1433, 1436, 1448, 1459, 1590, 1594, 1623, or destroying the goods, as necessary
1624, 1644, 1644a. 1. The general authority citation for (see §§ 113.63(c)(3) and 113.64(b) of this
2. Section 122.50 is amended as part 123 continues to read as follows: chapter).
follows: Authority: 19 U.S.C. 66, 1202 (General * * * * *
a. By revising the heading, Note 23, Harmonized Tariff Schedule of the
b. By adding a sentence after the third United States (HTSUS)), 1431, 1433, 1436, PART 127—GENERAL ORDER,
sentence in paragraph (c), 1448, 1624. UNCLAIMED AND ABANDONED
c. By redesignating paragraphs (d), (e) * * * * * MERCHANDISE
and (f), respectively, as paragraphs (e),
(f) and (g), and adding a new paragraph 2. Section 123.10 is amended as 1. The general authority citation for
(d), and follows: part 127 is revised, and specific
d. By adding two sentences at the end a. By revising the heading, sectional authority citations are added,
of redesignated paragraph (e). b. By adding a sentence after the third to read as follows:
The revisions and additions read as sentence in paragraph (c),
c. By redesignating paragraphs (d), (e) Authority: 19 U.S.C. 66, 1311, 1312, 1484,
follows: 1485, 1490, 1491, 1492, 1493, 1506, 1559,
and (f), respectively, as paragraphs (e), 1563, 1623, 1624, 1646a; 26 U.S.C. 5753.
§ 122.50 General order merchandise. (f) and (g), and adding a new paragraph Section 127.12 also issued under 19 U.S.C.
* * * * * (d), and 1753;
(c) * * * The arriving carrier (or other d. By adding two sentences at the end Section 127.14 also issued under 19 U.S.C.
party to whom custody of the of redesignated paragraph (e). 1555, 1556, 1557;

VerDate 0ct<31>2002 15:11 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1
68034 Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / Rules and Regulations

Section 127.21 also issued under 19 U.S.C. accordance with paragraph (b) of this 7. Part 127 is amended by adding a
1753; section. new subpart E to read as follows:
Section 127.28 also issued under 15 U.S.C.
2612, 26 U.S.C. 5688;
(2) Destruction of merchandise.—(i) Subpart E—Title to Unclaimed and
Sections 127.31, 127.36, 127.37 also issued Proprietor responsibility. If the port Abandoned Merchandise Vesting in
under 19 U.S.C. 1753. director concludes that merchandise in Government
general order has no commercial value Sec.
2. Part 127 is amended by removing or is otherwise unsalable and cannot be 127.41 Government title to unclaimed and
the statutory authority citations that disposed of at public auction (see abandoned merchandise.
appear in parentheses immediately § 127.29), and that its destruction is 127.42 Disposition of merchandise owned
below the texts of §§ 127.1, 127.2, warranted, the warehouse proprietor by Government.
127.11 through 127.14, 127.21, 127.23 must assume responsibility under bond, 127.43 Petition of party for surplus
through 127.29, and 127.31 through including the expense, for destroying proceeds had merchandise been sold.
127.37. the merchandise (see § 113.63(c)(3) of
3. Section 127.13 is amended by Subpart E—Title to Unclaimed and
this chapter). The port director will
revising paragraph (a) to read as follows: Abandoned Merchandise Vesting in
authorize such destruction on Customs
Government
§ 127.13 Storage of unclaimed and Form (CF) 3499, or on a similar Customs
abandoned merchandise. document as designated by the port § 127.41 Government title to unclaimed
(a) Place of storage. A class 11 bonded director or an electronic equivalent as and abandoned merchandise.
warehouse or warehouse of class 3, 4, or authorized by Customs. (a) Vesting of title in Government. At
5, certified by the port director as (ii) Notice of destruction. Before the end of the 6-month period noted in
qualified to receive general order destroying the merchandise, the § 127.11 of this part, at which time
merchandise, will be responsible for the warehouse proprietor must first make a merchandise having thus remained in
transportation and storage of unclaimed reasonable effort under bond (see Customs custody is considered as
and abandoned merchandise, upon due § 113.63(b) and (c) of this chapter), to unclaimed and abandoned, the port
notification to the proprietor of the identify and inform the importer director, with the concurrence of the
warehouse by the arriving carrier (or (owner) or consignee regarding the Assistant Commissioner, Office of Field
other party to whom the carrier has intended destruction of the Operations, may, in lieu of sale of the
transferred the merchandise under a merchandise. When the appropriate merchandise as provided in subpart C of
Customs-authorized permit to transfer party is identified, notice of destruction this part, provide notice to all known
or in-bond entry), as provided in will be provided to the party on interested parties under paragraph (b) of
§§ 4.37(c), 122.50(c), and 123.10(c) of Customs Form (CF) 5251, appropriately this section that the title to such
this chapter. If no warehouse of these modified, or other similar Customs merchandise will be considered as
classes is available to receive general document as designated by the port vesting in the United States, free and
order merchandise, or if the director or an electronic equivalent as clear of any liens or encumbrances, as
merchandise requires specialized authorized by Customs, at least 30 of the 30th day after the date of the
storage facilities which are unavailable calendar days prior to the date of notice unless, before the 30th day, the
in a bonded facility, the port director, intended destruction. merchandise is entered or withdrawn
after having received notice of the * * * * * for consumption and all duties, taxes,
presence of unentered merchandise or fees, transfer and storage charges, and
5. Section 127.21 is amended by
baggage in accordance with the any other expenses that may have
revising its first sentence to read as
provisions of this section, will direct the accrued on the merchandise are paid.
follows:
storage of the merchandise by the carrier (b) Notice to known interested parties.
or by any other appropriate means. § 127.21 Time of sale. Notice that the title to unclaimed and
* * * * * abandoned merchandise will vest in the
All unclaimed and abandoned
4. Section 127.14 is amended by United States, as described in paragraph
merchandise will be sold at the first
revising paragraph (a) to read as follows: (a) of this section, will be sent to the
regular sale held after the merchandise
following parties on Customs Form (CF)
becomes subject to sale, unless a
§ 127.14 Disposition of merchandise in 5251, appropriately modified, or other
Customs custody beyond time fixed by law. deferment of its sale is authorized by the
similar Customs document as
port director. * * *
(a) Merchandise subject to sale or designated by the port director or an
other disposition.—(1) General. If 6. Section 127.28 is amended by electronic equivalent as authorized by
storage or other charges due the United revising the first sentence of paragraph Customs:
States have not been paid on (a) to read as follows: (1) Importer, if known;
merchandise remaining in Customs (2) Consignee, if name and address
§ 127.28 Special merchandise.
custody after the expiration of the bond can be ascertained;
period in the case of merchandise (a) Drugs, seeds, plants, nursery stock, (3) Shipper, or the shipper’s
entered for warehouse, or after the and other articles required to be representative or agent, if merchandise
expiration of the general order period, inspected by the Department of is consigned to order or the consignee
as defined in § 127.4, in any other case, Agriculture. Drugs, seeds, plants, cannot be ascertained; and
even though any duties due have been nursery stock, and other articles (4) Any other known interested
paid, such merchandise will be sold as required to be inspected by the parties.
provided in subpart C of this part, Department of Agriculture must be (c) Appraisement of merchandise.
retained for official use as provided in inspected by a representative of the Before title to unclaimed and
subpart E of this part, destroyed, or Department of Agriculture to ascertain abandoned merchandise is vested in the
otherwise disposed of as authorized by whether they comply with the United States, the merchandise will be
the Commissioner of Customs under the requirements of the law and regulations appraised in accordance with section
law, unless the merchandise is entered of that Department. * * * 402, Tariff Act of 1930, as amended (19
or withdrawn for consumption in * * * * * U.S.C. 1401a).

VerDate 0ct<31>2002 15:11 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1
Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / Rules and Regulations 68035

§ 127.42 Disposition of merchandise as appropriate, with the original bill of PART 141—ENTRY OF MERCHANDISE
owned by Government. lading, bill of sale, contract, mortgage,
(a) Disposition. If title to any or other satisfactory documentary 1. The general authority citation for
unclaimed and abandoned merchandise evidence, or a certified copy of the part 141 continues to read as follows:
vests in the United States under foregoing. Also, if applicable, the Authority: 19 U.S.C. 66, 1448, 1484, 1624.
§ 127.41, the merchandise may be petition must be supported by
retained by Customs for its official use, 2. Section 141.5 is revised to read as
satisfactoryproof that the petitioner did follows:
or in Customs discretion, the
not receive notice that title to the
merchandise may be transferred to any § 141.5 Time limit for entry.
other Federal, state or local agency, merchandise would vest in the United
States and was in such circumstances as Merchandise for which entry is
destroyed or disposed of otherwise.
(b) Payment of charges and expenses. prevented the receipt of notice. required will be entered within 15
All transfer and storage charges or (d) Payment of claim. If the claim of calendar days after landing from a
expenses accruing on retained or vessel, aircraft or vehicle, or after arrival
the owner, consignee, or other party
transferred merchandise will be paid by at the port of destination in the case of
having title to or a substantial interest
the receiving agency. Such transfer and merchandise transported in bond.
in the merchandise, is properly Merchandise for which timely entry is
storage charges or expenses will include established as provided in this section,
those accruing with respect to the not made will be treated in accordance
the party may be paid out of the with § 4.37 or § 122.50 or § 123.10 of
merchandise while subject to general Treasury of the United States the
order. this chapter.
amount that it is believed the party
§ 127.43 Petition of party for surplus would have received under 19 U.S.C. PART 142—ENTRY PROCESS
proceeds had merchandise been sold. 1493 had the merchandise been sold
(a) Filing of petition. Under section and a proper claim for the surplus of the 1. The authority citation for part 142
491(d), Tariff Act of 1930, as amended proceeds of sale been made under that continues to read as follows:
(19 U.S.C. 1491(d)), any party who can provision (see § 127.36 of this part). In Authority: 19 U.S.C. 66, 1448, 1484, 1624.
satisfactorily establish title to or a determining the amount that may have 2. Section 142.2 is amended by
substantial interest in unclaimed and been payable under 19 U.S.C. 1493, revising paragraph (a) to read as follows:
abandoned merchandise, the title to given that the merchandise was not in
which has vested in the United States, § 142.2 Time for filing entry.
fact sold at public auction under 19
may file a petition for the amount that U.S.C. 1491(a), the appraisement of the (a) General rule: After arrival of
would have been payable to the party merchandise, as provided in § 127.41(c), merchandise. Merchandise for which
had the merchandise been sold and a entry is required will be entered within
will be taken into consideration. By
proper claim made under section 493, 15 calendar days after landing from a
virtue of the authority delegated to the
Tariff Act of 1930, as amended (19 vessel, aircraft or vehicle, or after arrival
port director in this matter, any at the port of destination in the case of
U.S.C. 1493).
(b) When and with whom filed. The payment made as provided under this merchandise transported in bond.
petition may be filed with the port paragraph in connection with the filing
* * * * *
director at whose direction the title to of a petition under paragraph (b) of this
the merchandise was vested in the section will be final and conclusive on PART 178—APPROVAL OF
United States. If the party received all parties. INFORMATION COLLECTION
notice under § 127.41(b), the petition (e) Doubtful claim. Any doubtful REQUIREMENTS
must be filed within 30 calendar days claim for payment along with all
after the day on which title vested in the pertinent documents and information 1. The authority citation for part 178
United States. If the party can available to the port director will be continues to read as follows:
satisfactorily establish that such notice forwarded to the Assistant Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44
was not received, the party must file the Commissioner, Office of Finance, for U.S.C. 3501 et seq.
petition within 30 calendar days of instructions. The decision of the 2. Section 178.2 is amended by
learning of the vesting but not later than Assistant Commissioner, Office of adding new listings in the table in
90 calendar days from the vesting. Finance, with respect to any petition appropriate numerical order to read as
(c) Evidence required. The petition follows:
filed under this section will be final and
must show the party’s title to or interest
in the merchandise, and be supported, conclusive on all parties. § 178.2 Listing of OMB numbers.

OMB control
19 CFR section Description No.

* * * * * * *
§ 4.37(c) ...................................................... Preparation of delivery ticket for transfer of merchandise to general order .................. 1515–0224

* * * * * * *
§ 19.9(a) ...................................................... Preparation of delivery ticket for transfer of merchandise to general order .................. 1515–0224

* * * * * * *
§ 122.50(c) .................................................. Preparation of delivery ticket for transfer of merchandise to general order .................. 1515–0224

* * * * * * *
§ 123.10(c) .................................................. Preparation of delivery ticket for transfer of merchandise to general order .................. 1515–0224

* * * * * * *

VerDate 0ct<31>2002 15:11 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1
68036 Federal Register / Vol. 67, No. 217 / Friday, November 8, 2002 / Rules and Regulations

Approved: November 4, 2002. public comment on its proposed rule governments, in the aggregate, or by the
Robert C. Bonner, amendments and the EDIS–II cover private sector, of $100,000,000 or more
Commissioner of Customs. sheet (cover sheet) for use in filing in any one year, and will not
Timothy E. Skud, documents in the Commission’s significantly or uniquely affect small
Deputy Assistant Secretary of the Treasury. Electronic Document Information governments. The amended rules are
[FR Doc. 02–28346 Filed 11–7–02; 8:45 am] System (EDIS–II). The Commission not major rules as defined by section
received a total of three sets of 804 of the Small Business Regulatory
BILLING CODE 4820–02–P
comments from the ITC Trial Lawyers Enforcement Fairness Act of 1996 (5
Association (ITCTLA) and two law U.S.C. 801 et. seq.). Moreover, they are
firms. The Commission carefully exempt from the reporting requirements
INTERNATIONAL TRADE considered all comments that it of the Contract With America
COMMISSION received. The Commission’s response to Advancement Act of 1996 (Pub. L. 104–
19 CFR Part 201 those comments that relate to the rule 121) because they concern rules of
amendments is provided below in a agency organization, procedure, or
Rules of General Application section-by-section analysis. Since the practice that do not substantially affect
NOPR was published, the Office of the rights or obligations of non-agency
AGENCY: International Trade Management and Budget (OMB) has parties.
Commission. determined that the cover sheet does not
ACTION: Notice of final rulemaking. Section-by-Section Analysis of the
require OMB approval because of the
Regulations
minimal paperwork burden on the
SUMMARY: The United States
public; nevertheless, the Commission Section 201.8
International Trade Commission
has summarized below comments to the
(Commission) hereby amends its rules The Commission has amended § 201.8
cover sheet and its response thereto.
of practice and procedure (rules) to by adding paragraphs 201.8(f) and (g).
The Commission appreciates the time
permit persons the option of filing Section 201.8(f) provides that persons
and effort the commenters took to
certain documents with the Commission may file certain documents
present their views, and believes that
in electronic form instead of in paper electronically at the Commission’s
the comments have improved the
form only. The Commission also Internet website without violating the
amendments and the cover sheet. The
amends its rules of practice and relevant provisions of the rules that
Commission is also publishing a notice
procedure to allow electronic service of govern paper filing of documents. The
containing the Handbook on Electronic
documents in limited circumstances Commission did not receive any specific
Filing Procedures (Handbook)
and to require persons to complete and comments with respect to § 201.8(f).
referenced in amended § 201.8 of the
submit a standard cover sheet when Section 201.8(g) requires that persons
rules, which includes information
filing documents, either in paper form filing documents either in paper form or
regarding registration for electronic
or in electronic form, with the electronically must complete a cover
filing and the list of documents that may
Commission. sheet to be submitted to the Commission
be filed electronically. Please review the
DATES: The effective date of these Handbook in its entirety prior to along with their filings. The law firm of
amendments is December 9, 2002. registering for electronic filing. Adduci, Mastriani & Schaumberg, L.L.P.
FOR FURTHER INFORMATION CONTACT: proposed amending § 201.8 to state that
Irene H. Chen, Esq., Office of the Regulatory Analysis filings without a cover sheet will be
General Counsel, United States The Commission has determined that accepted, and that cover sheets may be
International Trade Commission, these amended rules do not meet the submitted the following business day.
telephone 202–205–3112. Hearing- criteria described in section 3(f) of The Commission has determined to
impaired individuals are advised that Executive Order 12866 (58 FR 51735, retain the requirement that filers must
information on this matter can be Oct. 4, 1993) and thus do not constitute complete and submit a cover sheet with
obtained by contacting the a significant regulatory action for their filings, whether the filings are in
Commission’s TDD terminal at 202– purposes of the Executive Order. The electronic or paper form, because the
205–1810. General information Regulatory Flexibility Act (5 U.S.C. 601 information in the cover sheet is
concerning the Commission may also be et seq.) and Executive Order 13272 (67 required for EDIS–II to docket filings.
obtained by accessing its Internet server FR 53461, Aug. 13, 2002) are The Commission has revised § 201.8(g)
(http://www.usitc.gov). inapplicable to this rulemaking because to require parties submitting paper
SUPPLEMENTARY INFORMATION: it is not one for which a NOPR is filings to fill-out the cover sheet on-line
required under 5 U.S.C. 553(b) of the and print it out for submission to the
Background APA or any other statute. Although the Office of the Secretary with the paper
On April 26, 2002, the Commission Commission published a NOPR, these filing. Persons filing documents
published a notice of proposed proposed regulations are ‘‘agency rules electronically are required to complete
rulemaking (NOPR) in the Federal of procedure and practice,’’ and thus are and submit the cover sheet on-line with
Register. 67 FR 20709, April 26, 2002. exempt from the notice requirement the electronic filing. This cover sheet
In the NOPR, the Commission proposed imposed by 5 U.S.C. 553(b). These requirement is to ensure accurate
amending its rules of practice and amended rules do not contain processing of filings.
procedure to (a) permit persons the federalism implications warranting the Section 201.16
option of filing certain documents preparation of a federalism summary
electronically instead of just in paper impact statement pursuant to Executive The Commission has amended
form; (b) allow electronic service of Order 13132 (64 FR 43255, Aug. 4, § 201.16 by adding paragraph (e) to
documents in limited circumstances; 1999). No actions are necessary under permit persons the option of serving
and (c) require persons to complete and the Unfunded Mandates Reform Act of documents on other parties
submit a standard cover sheet, whether 1995 (2 U.S.C. 1501 et. seq.) because the electronically, if the Secretary consents
filing electronically or in paper form. In amended rules will not result in the to such electronic service. However,
its NOPR, the Commission invited expenditure by State, local, and tribal electronic service is not permitted in

VerDate 0ct<31>2002 19:09 Nov 07, 2002 Jkt 200001 PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 E:\FR\FM\08NOR1.SGM 08NOR1