Extension of Port Limits of Morgan City, Louisiana

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 101

Extension of Port Limits of Morgan City, Louisiana

AGENCY: U. S. Customs Service, Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations

pertaining to the field organization of Customs by extending the

geographical limits of the port of entry of Morgan City, Louisiana. The

proposed change is being made as part of Customs continuing program to

obtain more efficient use of 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 July 8, 1994.

ADDRESSES: Written comments (preferably in triplicate) may be submitted

to and inspected at the Regulations Branch, Office of Regulations and

Rulings, U. S. Customs Service, 1301 Constitution Avenue NW.,

Washington, D.C. 20229. Comments submitted may be inspected at the

Regulations Branch, Office of Regulations and Rulings, 1099 14th Street

NW., suite 4000, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Brad Lund, Office of Inspection and

Control, (202) 927-0192.

SUPPLEMENTARY INFORMATION:

Background

As part of a continuing program to obtain more efficient use of its

personnel, facilities, and resources, and to provide better service to

carriers, importers, and the general public, Customs proposes to amend

Sec. 101.3, Customs Regulations (19 CFR 101.3), by extending the

geographical limits of the port of entry of Morgan City, Louisiana.

In the list of Customs regions, districts, and ports of entry set

forth in Sec. 101.3(b), Customs Regulations, Morgan City is listed as a

port of entry in the New Orleans, Louisiana, Customs District within

the South Central Region.

Previous Development of Port

The Morgan City port of entry was originally established by T. D.

54682 (published in the Federal Register on September 16, 1958, 23 FR

7131) with specific geographical limits which may be described

generally as encompassing the southeastern one-third of St. Mary Parish

and including the town of Morgan City where the office of the Customs

Port Director is currently located. The geographical limits of the

Morgan City port of entry were republished without a change in

connection with a restatement of all New Orleans Customs district port

boundaries in T. D. 84-126 (published in the Federal Register on May

31, 1984, 49 FR 22629).

In addition, in Sec. 101.4, Houma, Louisiana (located within

Terrebonne Parish), and Galliano, Louisiana (located within Lafourche

Parish) were listed as Customs stations within the New Orleans Customs

District and under the supervision of the Morgan City port of entry.

Customs stations are defined in Sec. 101.1(d), Customs Regulations, as

``any place, other than a port of entry, at which Customs officers or

employees are stationed * * *'' for the purpose of entering and

clearing vessels, accepting entries of merchandise, collecting duties,

and enforcing the various provisions of the Customs and navigation laws

of the United States. Thus, Customs stations are by definition located

outside the limits of a port of entry, and Customs services are

normally provided to the public at Customs stations on a reimbursable

basis.

The Morgan City port of entry was established primarily to provide

vessel documentation (now the function of the United States Coast

Guard) in southwest Louisiana, and for a number of years after creation

of the port of entry most Customs functions could be adequately carried

out within the port limits as originally established by T. D. 54682.

The Customs workload increased significantly in both volume and

geographical scope, with the result that the majority of Customs

service provided by the Morgan City port of entry took place outside

the port limits, extending to Iberia Parish to the west of St. Mary

Parish and, on the east, to the parishes of Terrebonne and Lafourche

and the town of Grand Isle in Jefferson Parish.

Iberia Parish received foreign steel shipments by LASH-type barge

and had a livestock export facility at its airport. International trade

activities, including the construction of warehousing and other support

facilities, were on the increase in both Iberia Parish and in the

western portion of St. Mary Parish.

Terrebonne and Lafourche Parishes included four major shipyards

where vessel construction and drydock repairs took place and where

Customs clearance was required in connection with vessels arriving for

repairs. Approximately 20 additional vessel arrivals took place each

month at docking facilities along the Intracoastal Waterway within

these 2 parishes.

In addition, Port Fourchon, located in Lafourche Parish, served as

a hub for helicopter and service launch traffic to lightering vessels

and tankers at the Louisiana Offshore Oil Port (LOOP) supertanker

unloading terminal, resulting in approximately 100 helicopter and 45

service launch clearances by Customs each month in addition to the

Customs services rendered in connection with the approximately 270

tanker arrivals at the LOOP each year. Port Fourchon was also used as a

base for foreign-flag research vessels and derrick barges operating in

the Gulf of Mexico, and vessels carrying containerized and other cargo

from foreign countries arrived at Port Fourchon on a weekly basis.

Finally, the town of Grand Isle was the home port for a large

number of private seagoing vessels which were required to report to

Customs upon arrival from any foreign port or place. Customs services

in connection with all of these activities were provided by personnel

assigned to the Morgan City port of entry.

Based on the Customs workload pattern described above, by a final

rule document published in the Federal Register on April 21, 1993 (58

FR 21350), Customs extended the limits of the Morgan City port of entry

by including all territory within the parishes of Iberia, St. Mary,

Terrebonne, and Lafourche, as well as the incorporated limits of the

town of Grand Isle in Jefferson Parish and that portion of the state

highway which connects Grand Isle to Lafourche Parish.

Customs believes that the extension discussed above provided

significant benefits to both Customs and the public. Extension of the

port limits enabled Customs to move the office of the Port Director to

Galliano in Lafourche Parish, which was more centrally located given

the workload. The relocation increased the efficiency and productivity

of the Port Director's office by reducing the time and effort required

for travel and transportation of documents between the office and other

locations within the extended port of entry, by enabling the Port

Director to more effectively administer outside assignments and oversee

other port details, and by streamlining Customs duty and other

collection procedures. This increase in Customs efficiency and

productivity had corresponding benefits for the public by enabling

Customs to be more responsive to the needs of the trade community. In

addition, by extending the port entry limits to include areas formerly

serviced by Customs on a reimbursable basis, the proposal reduced the

operating costs of private sector recipients of those services and led

to an improvement in the overall prospects for increased international

trade in the area covered by the new port of entry limits.

Current Proposed Expansion

During the comment period for the previous expansion of the port of

Morgan City, it was suggested that the port limits be further expanded

to include Lafayette Parish. Inasmuch as this suggestion was not part

of the notice of proposed rulemaking published in the Federal Register

for public comment on June 16, 1992 (57 FR 26806), Customs believed

that such an additional expansion should be handled under separate

notice and comment procedures, and it so advised the public in the

final rule.

Customs is now proposing to further expand the port of Morgan City

to include Lafayette Parish.

The Louisiana political community has shown considerable support

for and interest in this latest expansion. Customs South Central Region

and its New Orleans District strongly support this proposed expansion

and feel confident that the challenges of this expansion can be met.

Some of the local organizations strongly in favor are the Lafayette

City and Parish Councils, the Greater Lafayette Chamber of Commerce,

the Lafayette Airport Commission, the Lafayette Economic Development

Authority, the Lafayette Region Airport, and the Lafayette LeCentre

Internationale.

Many of the reasons cited for the recent expansion of the port of

Morgan City hold true for the proposed inclusion of Lafayette Parish.

It was inadvertent not to have included Lafayette, the only Acadiana

parish omitted, in the previous boundary change. The Greater Lafayette

Chamber of Commerce states that Lafayette has traditionally been called

the heart of Acadiana.

Several sources stated that the addition of Lafayette Parish would

complement the current international trade activities in the parishes

of Iberia, St. Mary, Terrebonne, and Lafourche and the town of Grand

Isle, thus providing an economic boost to southern Louisiana. The area

of Lafayette Parish is not large, but the city of Lafayette has a

population of over 100,000, making it a significant population center.

Lafayette Parish is adjacent to Iberia Parish, which currently

represents the northwest limit of the port of entry.

Lafayette Parish is known as one of the largest centers of trade in

southern Louisiana. The Lafayette Regional Airport, where the majority

of Customs services will be performed, is the largest airport in the

Acadiana area.

It is only twelve miles from the Iberia parish line, which is the

current western boundary of the port of Morgan City. Lafayette Parish's

inclusion in the international port of entry would provide a boost to

the economy of southern Louisiana. It would reduce the operating costs

of recipients of Customs services, thereby greatly improving prospects

for international trade. It is our understanding that the Greater

Lafayette Chamber of Commerce intends to establish an expanded freight

trade to and from points south of the United States border--i.e.,

Central and South America.

The added area that Lafayette Parish would bring to the port is

minimal and would not create an excessive burden on services already

being provided. The port of Morgan City is staffed by a Port Director,

two Customs Inspectors, and an Inspection Aide. The staff currently

operates out of two offices, one in the town of Morgan City and the

other in the town of Galliano. There is a need for an office on the

western boundary, and such an office would be provided at the Lafayette

Regional Airport Facility free of charge if this expansion is approved.

Initially, work assignments would be on an as-needed basis with

actual workload determining permanent staffing requirements. Inspectors

assigned to the Lafayette Airport would be in an excellent position to

provide service to the ports in Iberia, West St. Mary, and Morgan City.

It would be closer to dispatch an inspector to those locations from

Lafayette than from the port office in Galliano.

It would also reduce the operating costs of recipients of Customs

services, thereby greatly improving prospects for international trade.

The port expansion would enable Customs to service the proposed points

of entry without establishing separate port administrations.

Proposed Extended Port Limits

The proposed extended geographic limits of the Morgan City port of

entry are as follows: In the State of Louisiana: All of the territory

within the Parishes of Iberia, Lafayette, Lafourche, St. Mary, and

Terrebonne; the Corporate limits of the town of Grand Isle; and that

portion of the right-of-way pertaining to State Highway 1 extending in

a northeasterly direction from the Lafourche Parish and Jefferson

Parish boundary line to the corporate limits of the town of Grand Isle.

If this proposed extension of the Morgan City port of entry limits

is adopted, the list of Customs regions, districts and ports of entry

in 19 CFR 101.3(b) will be amended accordingly.

Comments

Prior to adoption of this proposal, consideration will be given to

written comments timely submitted to Customs. Submitted comments will

be available for public inspection in accordance with the Freedom of

Information Act (5 U.S.C. 552), Sec. 1.4, Treasury Department

Regulations (31 CFR 1.4), and Sec. 103.11 (b), Customs Regulations (19

CFR 103.11 (b)), on regular business days between the hours of 9 a.m.

and 4:30 p.m., at the Regulations Branch, Office of Regulations and

Rulings, 1099 14th Street, NW., suite 4000, Washington DC.

Authority

This change is proposed under the authority of 5 U.S.C. 301 and 19

U.S.C. 2, 66, and 1624.

The Regulatory Flexibility Act and Executive Order 12866

Customs routinely establishes, expands, and consolidates Customs

ports of entry throughout the United States to accommodate the volume

of Customs-related activity in various parts of the country. Thus,

although this document is being issued with notice for public comment,

because it relates to agency management and organization, it is not

subject to the notice and public procedure requirements of 5 U.S.C.

553. Accordingly, this document is not subject to the provisions of the

Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Agency organization

matters such as this proposed port extension are exempt from

consideration under Executive Order 12866.

Drafting Information

The principal author of this document was Janet L. Johnson,

Regulations Branch. However, personnel from other offices participated

in its development.

Samuel H. Banks,

Acting Commissioner of Customs.

Approved: April 16, 1994.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 94-11005 Filed 5-6-94; 8:45 am]

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