Express Consignments; Formal and Informal Entries of Merchandise; Administrative Exemptions

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 101, 111, 123, 128, 141, 143, 145, 148, 159

[T.D. 94-51]

RIN 1515-AB53

Express Consignments; Formal and Informal Entries of Merchandise;

Administrative Exemptions

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

ACTION: Interim regulations; solicitation of comments.

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SUMMARY: The amendments contained in this document are being published

as interim regulations to implement certain statutory amendments to the

Customs laws regarding administrative exemptions. These statutory

amendments are contained in the Customs modernization provisions of the

North American Free Trade Agreement Implementation Act. Also, the

interim regulations clarify the procedures for shipments brought into

the United States by express consignment operators or carriers and make

clear that all shipments carried into the United States by express

consignment operators or carriers are required to be entered, unless

specifically exempt from entry. These interim regulations also

implement the Customs modernization provisions in the North American

Free Trade Agreement Implementation Act exempting from entry certain

merchandise (undeliverable shipments, railway freight locomotives and

cars, and instruments of international traffic).

DATES: Interim rule effective July 28, 1994; comments must be received

on or before July 13, 1994.

ADDRESSES: Written comments (preferably in triplicate) must be

submitted to U.S. Customs Service, ATTN: Regulations Branch, Franklin

Court, 1301 Constitution Avenue, NW., Washington, DC 20229, and may be

inspected at the Regulations Branch, 1099 14th Street, NW., suite 4000,

Washington, DC.

FOR FURTHER INFORMATION CONTACT: William G. Rosoff, Office of

Regulations and Rulings, (202-482-7040).

SUPPLEMENTARY INFORMATION:

Background

On December 8, 1993, the President signed into law Public Law 103-

182, the North American Free Trade Agreement Implementation Act (107

Stat. 2057). Title VI of this Act, popularly known as the Customs

Modernization Act (the Act) amended certain Customs laws. Section 651

of the Act amended section 321, Tariff Act of 1930, as amended (19

U.S.C. 1321).

Before its amendment by the Act, section 321 authorized

administrative exemptions from duty and taxes on articles such as gifts

and personal and household goods, and in certain other situations.

Specifically, section 321 authorized the Secretary of the Treasury, in

order to avoid expense and inconvenience to the Government

disproportionate to the amount of revenue that would otherwise be

collected, to disregard a difference of less than $10 between the duty

actually due on an entry and the estimated duties deposited. On the

same basis, section 321 authorized the Secretary to admit free of duty

and tax any article the value of which was less than $50 in the case of

bona fide gifts ($100 if the gift was from certain island possessions)

sent from persons in foreign countries to persons in the United States.

Section 321 authorized the Secretary to admit free of duty and tax any

article the value of which was less than $25 in the case of personal or

household articles accompanying the traveler. In all other cases (i.e.,

if not a bona fide gift sent from a person in a foreign country to a

person in the United States or a personal or household article

accompanying a traveler), the Secretary was authorized to admit free of

duty and tax any article the value of which was less than $5.

In the last three cases (i.e., bona fide gifts, personal or

household articles, and all other cases), the exemptions were subject

to the condition that the aggregate fair retail value in the country of

shipment of articles imported by one person on one day could not exceed

the authorized amount. Also, the exemptions in these cases were not to

be granted in any case in which merchandise covered by a single order

or contract was forwarded in separate lots to secure the benefit of the

provision.

The Secretary was authorized to prescribe regulations to implement

these provisions. Section 321 specifically authorized the Secretary to

diminish any of the dollar amounts referred to above.

Section 651 of the Act increased the dollar amounts described and,

instead of setting maximum dollar amounts below which the Secretary was

authorized to make the exemptions applicable, authorized the Secretary

to make the exemptions applicable to an amount to be specified in

regulations, but not less than a stated amount. That is, the amended

section 321 now provides minimum dollar amounts for the exemptions.

In the case of the difference between duty actually due on an entry

and the estimated duties deposited, the dollar amount was increased to

a minimum of $20. Also, this provision was changed to authorize Customs

to apply the exemption to the total of duties, fees, and taxes, instead

of only duties and taxes, as had been the case. In the case of bona

fide gifts, personal or household articles, and all other cases, the

dollar amounts were respectively increased to $100 ($200, if the gift

is from one of the named island possessions), $200, and $200,

respectively.

Section 651 removed from Sec. 321 the specific authorization to, by

regulation, diminish any of the dollar amounts specified in the

provision. Section 651 retained the specific authorization in section

321 for regulations to prescribe exceptions to any exemption whenever

the Secretary finds such action is consistent with the purpose of the

provisions or is necessary to protect the revenue or to prevent

unlawful importations.

The provision in the Customs Regulations containing the

authorization to disregard a difference of less than $10 between the

duty actually due on an entry and the estimated duties deposited is

found in 19 CFR 159.6. The provisions in the Customs Regulations

pertaining to the administrative exemption for bona fide gifts are

found in 19 CFR 10.152 and 145.32 and the provision for personal or

household articles is found in 19 CFR 148.51 (see also Secs. 148.12,

148.64). The provisions in the Customs Regulations pertaining to the $5

administrative exemption for all other articles are found in 19 CFR

10.151 and 145.31. Conditions for the exemptions provided for in 19 CFR

10.151 and 10.152 are currently found in 19 CFR 10.153.

Provisions pertaining to the administrative exemptions under

section 321 are also found in part 128 of the Customs Regulations,

which relates to express consignments. Section 128.24(d) of that part

refers to low value shipments (i.e., shipments valued at $5 or less)

and provides that such shipments must be segregated from shipments

valued at more than $5 when the special informal entry procedures

provided for in part 128 are used. This provision was intended to cover

articles which could be administratively exempted from duties and taxes

under section 321(a)(2)(C) (see T.D. 89-53, published in the Federal

Register on May 8, 1989 (54 FR 19561)).

These interim regulations conform the Customs Regulations to the

changes made to section 321 by section 651 of the Act. In addition, the

interim regulations clarify entry procedures applicable to merchandise

subject to section 321. The dollar amounts currently provided for in 19

CFR 10.151 through 10.153, 145.31, 145.32, 148.12, 148.51, 148.64 and

159.6 are changed to the minimums provided for in the amended section

321.

The interim regulations amend part 143 to clarify the procedures

for entries of shipments qualifying for the administrative exemptions

in section 321(a)(2). Shipments covered in section 321(a)(2) are

included in the merchandise which may be entered under the procedures

provided for by regulation under 19 U.S.C. 1498. That provision

authorizes the Secretary of the Treasury to prescribe rules and

regulations for the declaration and entry of the merchandise described

in the section. Entries which may be provided for by regulation under

section 1498 are distinguished from entries which are required to be

filed under 19 U.S.C. 1484 (i.e., formal entries). As authorized by

section 1498, these amendments provide that the person who may make

entry of shipments covered by section 321(a)(2) is the owner,

purchaser, or consignee of the merchandise or, when appropriately

designated by one of these persons, a Customs broker licensed under 19

U.S.C. 1641. Under the same authority, an amendment to part 143 makes

it clear that the person who may make entry of other merchandise (i.e.,

merchandise not qualifying for the administrative exemptions in section

321(a)(2)) which qualifies for informal entry is the owner or purchaser

of the merchandise or, when appropriately designated by the owner,

purchaser, or consignee of the merchandise, a Customs broker licensed

under 19 U.S.C. 1641.

A corresponding amendment to part 111, concerning Customs brokers,

is added to the list of transactions for which a broker's license is

not required. The new provision provides that a person entering

merchandise qualifying for and entered under the informal entry

procedures authorized by 19 U.S.C. 1498 is not required to be licensed

as a broker unless required to be so licensed by regulations issued

under the authority of section 1498. A reference to the provision

included in part 143 is included in the new provision.

Also under the authority of 19 U.S.C. 1498, amendments are made to

part 143 to clearly provide the procedures for entries of the

merchandise covered in section 321(a)(2). Shipments of such merchandise

may be entered by presenting the bill of lading (or a manifest listing

each bill of lading) or other document used to file or support entry.

Manifest information is required consisting of the country of origin of

the merchandise, shipper name, address and country, ultimate consignee

name and address, specific description of the merchandise, quantity,

and value. Cross references are provided to section Secs. 148.12 and

148.62 to make it clear that entry by oral declaration continues to be

allowed.

No amendment to the regulations is being promulgated at this time

to implement the new subsection (a)(3) of section 321, added by section

651 of the Act. This provision allows Customs to waive the collection

of duties, fees, and taxes due on entered merchandise when such duties,

fees, or taxes are less than $20, in order to avoid expense and

inconvenience to the Government disproportionate to the amount of

revenue that would otherwise be collected. Regulations implementing

this provision are being delayed pending an analysis of the expense and

inconvenience to the Government in view of the revenue involved.

Section 159.6, authorizing Customs to disregard a difference of

less than $10 (now $20 under the amended section 321(a)(1)) between

duties deposited and duties actually due on an entry, is amended to

authorize Customs to apply the exemption to the total of duties, fees,

and taxes, as provided for in section 321(a)(1), as amended by section

651 of the Act.

Customs also is making amendments to the Customs Regulations in

part 128 relating to express consignments. These amendments are

intended to make it clear that all shipments carried into the United

States by express consignment operators and carriers are required to be

entered, unless specifically exempt from entry.

Basically, a 3-tier approach applies to such shipments. That is,

shipments valued in excess of $1250 are required to be formally

entered, as provided for under 19 U.S.C. 1484 in parts 141, 142, and

143 (except subpart C) of the Customs Regulations. Shipments valued

between $200 and $1250 may be entered under the informal entry

procedures, as provided for under 19 U.S.C. 1498 (unless the shipments

consist of merchandise which may not be entered under those

procedures). These procedures consist of the filing of a Customs Form

3461, either modified to cover all importations under the special

procedures for express consignment operator or carrier importations or

all such importations on a daily or flight basis, and the advance

filing of the manifest information provided for in 19 CFR 128.21. This

information consists of the country of origin, shipper name, address

and country, ultimate consignee name and address, specific description

of the merchandise and the tariff classification of the merchandise,

quantity, shipping weight, and value. An entry summary (Customs Form

7501) and estimated duties are required to be filed with Customs within

10 days of release of these shipments.

The third tier is for shipments valued at $200 or less. These

shipments also may be entered under the informal entry procedures, as

provided for under 19 U.S.C. 1498 (unless the shipments consist of

merchandise which may not be entered under those procedures). The

procedures for these shipments are the same as those for the second-

tier shipments (valued between $200 and $1250), except that the tariff

classification of the merchandise is not required for the shipments and

no entry summary or estimated duties is required to be filed.

An amendment to 19 CFR 101.1, adding a definition of ``shipment'',

makes it clear that the monetary exemption for third-tier shipments is

based on the bill of lading or other evidence used to file or support

entry, or oral declaration when applicable. For example, if the

document used to file or support entry is an individual bill of lading

to the ultimate consignee in the United States, the monetary limitation

is applied on the basis of the value of the shipment on the individual

bill of lading. This is so whether the document used to file or support

entry is itself the bill of lading or an advance manifest, as described

in 19 CFR 128.21, listing each of the individual bills of lading. On

the other hand, if the document used to file or support entry is a

master bill of lading (as opposed to each individual bill of lading),

the monetary limitation is applied on the basis of the total value of

the shipments on the master bill of lading. The same is true of the

application of the monetary limitation in section 321(a)(2) for other

importations (i.e., those not involving an express consignment entity).

This is so because the definition of ``shipment'' is for general

purposes in chapter I of title 19 of the CFR, unless the context of the

term requires a different meaning (see 19 CFR 101.1).

As is true generally under these amendments, the person who may

make entry for the shipments valued between $200 and $1250 which may be

entered under the informal entry procedures is the owner or purchaser

of the shipment or, when appropriately designated by the owner,

purchaser, or consignee of the shipment, a Customs broker licensed

under 19 U.S.C. 1641. The person who may make entry for the shipments

valued $200 or less which may be entered under the informal entry

procedures is the owner, purchaser, or consignee or, when appropriately

designated by one of these persons, a Customs broker licensed under 19

U.S.C. 1641. As discussed above, the authority for this distinction is

that these entries are made under 19 U.S.C. 1498 and the Secretary of

the Treasury is specifically authorized to prescribe rules and

regulations for the declaration and entry of such shipments.

Amendments are also made to part 141. Section 141.4 is amended to

clarify that shipments subject to the administrative exemptions under

Sec. 321(a)(2) must be entered under special informal entry procedures

for lower value shipments. Only merchandise specifically exempt from

entry (i.e., so-called intangibles, under General Note 13 (formerly

General Note 4), HTSUS, and certain vessels) is exempt from all forms

of entry. Also, a conforming amendment to the citation of the General

Note in Sec. 141.4 is necessary because of the redesignation of the

General Note (i.e., General Note 4, HTSUS, the predecessor to General

Note 13, was redesignated as General Note 13; see Presidential

Proclamation 6641, December 15, 1993, published in the Federal Register

on December 20, 1993 (58 FR 67032, 66867)).

Undeliverable Shipments

The North American Free Trade Agreement Implementation Act amended

General Note 4 (now General Note 13) by adding other articles which are

exempt from entry (section 681 of Pub. L. 103-182). The newly added

articles are articles which are returned as undeliverable to the United

States within 45 days of their departure from the United States. The

articles may not have left the custody of either the carrier or foreign

customs service during that time. The departure from the United States

of articles for which the exemption is granted may not be treated as

satisfying any requirement for exportation in order to receive a

benefit from, or meet an obligation to, the United States.

The amendment to Sec. 141.4 implements this provision. The

amendment requires the person claiming the exemption to certify that

the merchandise complies with the provision. In addition, the amendment

requires the person claiming the exemption to provide, upon request by

Customs, any evidence necessary to support the claim.

Other Exemptions From Entry

Section 681 of the Act also added a provision to the tariff

schedule exempting from entry and release requirements railway

locomotives (provided for in headings 8601 and 8602, HTSUS) and railway

freight cars (provided for in heading 8606, HTSUS) on which no duty is

owed (Additional U.S. Note 1, Chapter 86, HTSUS). Also, section 681 of

the Act provided for the addition of a Note to Chapter 99, HTSUS, under

which certain Canadian railway freight cars provided duty-free

treatment in subheadings 9905.86.05 and 9905.86.10, HTSUS, are exempt

from entry and release requirements. The railway freight cars provided

for in subheading 9905.86.05, HTSUS, are those produced before July 1,

1991, or if entered after July 1, 1994, produced not less than 3 years

before the date of importation, and provided for in heading 8606,

HTSUS. The railway freight cars provided for in subheading 9905.86.10,

HTSUS, are those imported for temporary use in transportation in the

United States and certified by the importer to be exported within 1

year from the date of importation and provided for in heading 8606,

HTSUS. In the case of both Notes (to be added to chapter 86 and 99,

HTSUS), the Secretary of the Treasury is authorized by regulation to

establish appropriate reporting requirements and to require that a bond

be posted to ensure compliance.

The amendment to Sec. 141.4 implements these provisions. In the

case of railway locomotives and freight cars which are exempt from

entry on the basis that no duty is owed on them and they are classified

in headings 8601, 8602, or 8606, HTSUS (i.e., without reference to

subheading 9905.86.05 or 9905.86.10, HTSUS), no special evidentiary

requirement is imposed because duty-free treatment is not conditioned

on any special condition (other than duty-free status because of

origin).

In the case of railway freight cars which are exempt from entry by

virtue of subheading 9905.86.05 or 9905.86.10, HTSUS, because there are

conditions other than the absence of duty being owed on the freight

cars, the amendment contains special evidentiary requirements. The

requirements, concerning the time of production of the freight car and

the duration of the stay in the United States of the freight car, shall

be met by a certification (documentary or electronic), subject to

Customs verification. In the case of the requirement to export the

freight car within 1 year from the date of importation, in subheading

9905.86.10, HTSUS, the amendment specifically provides that a freight

car admitted into the United States under this provision which is not

exported within the 1 year period becomes subject to entry and the

payment of any applicable duties.

As authorized by the statutory provision, the amendment provides

that locomotives and freight cars described in Additional U.S. Note 1

of Chapter 86, HTSUS, and freight cars described in subheading

9905.86.05 or 9905.86.10, HTSUS, may be released only after the

importer has filed a bond on Customs Form 301, containing either the

basic importation and entry conditions (19 CFR 113.62) or the

international carrier bond conditions (19 CFR 113.64). Amendments to 19

CFR 123.12 are added concerning the entry of foreign locomotives and

equipment in international traffic, to add references to the provisions

implementing these provisions.

Instruments of International Traffic

Section 681 of the Act added a provision to the tariff schedule

exempting from formal entry procedures instruments of international

traffic, such as containers, lift vans, rail cars and locomotives,

truck cabs and trailers, etc. The provision also provided for the

periodic reporting and payment of fees associated with the importation

of such instruments of international traffic.

The exemption from entry for instruments of international traffic

is already provided for in the Customs Regulations (see 19 CFR 10.41a).

There are no fees associated with the importation of instruments of

international traffic. Therefore, no substantive amendment to the

Customs Regulations is necessary to implement this provision. However,

to alert the public to the exemption from entry for instruments of

international traffic, a provision is added referring to this exemption

from entry and 19 CFR 10.41a in the list of exceptions from the general

rule in Sec. 141.4.

Accordingly, Customs is promulgating on an interim basis amendments

as described above and set forth below.

Delayed Effective Date and Public Comment Requirements

The agency intends that these interim regulations become effective

on the 45th day following the date of publication, i.e., 15 days after

the close of the comment period. The agency believes it has good cause

under 5 U.S.C. 553(d) (1) and (3) of the Administrative Procedure Act

(APA) (5 U.S.C. 553) to promulgate interim regulations because the

regulations provide an immediate benefit to both the Government and the

public by increasing exemptions which already exist. These interim

regulations are intended to implement Congressional intent embodied in

19 U.S.C. 1321, as amended, that these exemptions, when granted, should

exist at statutory minimums.

Furthermore, existing rights and obligations are not otherwise

changed. The agency believes the public wants these new statutory

minimums to become effective as soon as possible as the public should

benefit from the efficiencies and savings resulting therefrom. In

addition, the agency does not believe the public needs time to conform

its conduct so as to avoid violation of these regulations. The due and

timely execution of the agency's responsibilities would be

unnecessarily impeded by a time consuming notice and comment period.

The agency believes such delay is unnecessary because it does not

expect the public to object to the regulations being promulgated as

they merely provide the relief that Congress intended.

Even though, based on the discussion set forth above, Customs

believes the amendments in this document may be promulgated on an

interim basis and could be effective immediately, Customs is providing

a 45-day delayed effective date, with a 30 day comment period preceding

that effective date. This represents a practical compromise between the

need for temporal urgency and the desirability of public participation

in the rulemaking process.

In the spirit of the APA, the agency is soliciting public comment

regarding its decision to promulgate these interim regulations and in

delaying their effective date only for that period of time necessary to

review any relevant comments regarding that decision. Unless the

comments show that there exists good cause for not making the

regulations effective on an interim basis, the regulations will become

effective on an interim basis on the 45th day following the date of

publication.

Comments

Consequently, the agency hereby solicits comments on both the

substance of these regulations and their intended effective date. The

comments should clearly state whether they address the substance of the

interim rule or the agency's determination to make the rule effective

on an interim basis. If, based on the comments, good cause is shown

that the regulations should not become effective on an interim basis, a

document will be issued withdrawing the interim regulations before

their effective date. If no such good cause is shown, the interim

regulations will go into effect. The agency will then be able to gain

experience with the interim regulation, fully consider substantive

comments, and decide whether the interim regulation needs amendment

before its promulgation as a final rule.

Consideration will be given to any written comments (preferably in

triplicate) that are timely submitted to Customs. All such comments

received from the public pursuant to this notice of rulemaking 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)), during regular business days between the hours of 9:00

a.m. and 4:30 p.m. at the Regulations Branch, 1099 14th Street, NW.,

suite 4000, Washington, DC.

Regulatory Flexibility Act and Executive Order 12866

Since this document is not subject to the notice and public

procedure requirements of 5 U.S.C. 553, it is not subject to the

provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

This document is not a ``significant regulatory action'' under E.O

12866.

Paperwork Reduction Act

The collections of information contained in this interim rulemaking

were previously approved by the Office of Management and Budget (OMB)

in accordance with the Paperwork Reduction Act of 1980 under control

numbers 1515-0069 (Secs. 128.21, 128.23, 128.24) and 1515-0065

(Secs. 141.4, 143.23).

Drafting Information

The principal author of this document was Russell Berger,

Regulations Branch, U.S. Customs Service. However, personnel from other

offices participated in its development.

List of Subjects

19 CFR Part 10

Alterations, Bonds, Customs duties and inspection, Exports, Foreign

relations, Imports, Preference programs, Repairs, Reporting and

recordkeeping requirements, Trade agreements.

19 CFR Part 101

Customs duties and inspection, Exports, Imports, Organization and

functions (Government agencies).

19 CFR Part 111

Administrative practice and procedure, Brokers, Customs duties and

inspection, Imports.

19 CFR Part 123

Administrative practice and procedure, Aircraft, Bonds, Canada,

Customs duties and inspection, Imports, Mexico, Reporting and

recordkeeping requirements, Trade agreements, Vehicles, Vessels.

19 CFR Part 128

Carriers, Couriers, Customs duties and inspection, Express

Consignments, Imports.

19 CFR Part 141

Customs duties and inspection, Entry procedures, Invoices,

Reporting and recordkeeping requirements.

19 CFR Part 143

Automated broker interface, Customs duties and inspection,

Electronic entry filing, Imports, Invoice requirements.

19 CFR Part 145

Customs duties and inspection, Imports, Postal Service.

19 CFR Part 148

Customs duties and inspection, Reporting and recordkeeping

requirements.

19 CFR Part 159

Liquidation of entries for merchandise, Suspension of liquidation

pending disposition of American manufacturer's cause of action.

Amendments

Title 19, chapter I, parts 10, 101, 111, 123, 128, 141, 143, 145,

148, and 159 of the Customs Regulations (19 CFR parts 10, 101, 111,

123, 128, 141, 143, 145, 148 and 159) is amended as set forth below:

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,

ETC.

1. The general authority for part 10 is revised to read as follows,

and the specific section authority for Secs. 10.152 and 10.153 is

removed:

Authority: 19 U.S.C. 66, 1202, 1321, 1481, 1484, 1498, 1508,

1623, 1624;

* * * * *

2. Part 10 is amended by revising the center heading preceding

Sec. 10.151 to read as follows:

Importations Not Over $200 And Bona Fide Gifts

3. Section 10.151 is revised to read as follows:

Sec. 10.151 Importations not over $200.

Subject to the conditions in Sec. 10.153 of this part, the district

director shall pass free of duty and tax any shipment of merchandise,

as defined in Sec. 101.1(o) of this chapter, imported by one person on

one day having a fair retail value, as evidenced by the bill of lading

(or other document filed as the entry) or manifest listing each bill of

lading, in the country of shipment not exceeding $200, unless he has

reason to believe that the shipment is one of several lots covered by a

single order or contract and that it was sent separately for the

express purpose of securing free entry therefor or of avoiding

compliance with any pertinent law or regulation. Merchandise subject to

this exemption shall be entered under the informal entry procedures

(see subpart C, part 143, and Secs. 128.24, 145.31, 148.12, and 148.62,

of this chapter).

4. Section 10.152 is revised to read as follows:

Sec. 10.152 Bona-fide gifts.

Subject to the conditions in Sec. 10.153 of this part, the district

director shall pass free of duty and tax any article sent as a bona-

fide gift from a person in a foreign country to a person in the United

States, provided that the aggregate fair retail value in the country of

shipment of such articles received by one person on one day does not

exceed $100 or, in the case of articles sent from a person in the

Virgin Islands, Guam, and American Samoa, $200. Articles subject to

this exemption shall be entered under the informal entry procedures

(see subpart C, part 143, and Secs. 145.32, 148.12, 148.51, and 148.64,

of this chapter). An article is ``sent'' for purposes of this section

if it is conveyed in any manner other than on the person or in the

accompanied or unaccompanied baggage of the donor or donee.

5. Section 10.153 is amended by removing the references to ``$50''

and ``$100'' wherever appearing in paragraphs (b), (d)(2), (d)(3) and

(f), and by adding in place thereof, respectively, ``$100'' and

``$200''.

PART 101--GENERAL PROVISIONS

1. The authority for part 101 is revised to read as set forth

below, and the authority citations following Secs. 101.1 and 101.4 are

removed.

Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note 17,

Harmonized Tariff Schedule of the United States), 1623, 1624.

2. Section 101.1 is amended by adding a new paragraph (o) to read

as follows:

Sec. 101.1 Definitions.

* * * * *

(o) Shipment. ``Shipment'' means the merchandise described on the

bill of lading or other document used to file or support entry, or in

the oral declaration when applicable.

PART 111--CUSTOMS BROKERS

1. The general authority for part 111, and the specific section

authority for Sec. 111.3, are revised to read as follows:

Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized

Tariff Schedule of the United States (HTSUS)), 1624, 1641.

Section 111.3 also issued under 19 U.S.C. 1484, 1498;

* * * * *

2. Section 111.3 is amended by adding a new paragraph (e) to read

as follows:

Sec. 111.3 Transactions for which license is not required.

* * * * *

(e) Informal entries. A person entering merchandise qualifying for,

and entered under, the informal entry procedures authorized by 19

U.S.C. 1498 is not required to be licensed as a broker, unless required

to be so licensed under Sec. 143.26 of this chapter, issued under the

authority of 19 U.S.C. 1498.

PART 123--CUSTOMS RELATIONS WITH CANADA AND MEXICO

1. The general authority for part 123, and the specific section

authority for Secs. 123.12-123.18, are revised to read as follows:

Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized

Tariff Schedule of the United States (HTSUS)), 1431, 1624;

* * * * *

Sections 123.12 also issued under 19 U.S.C. 1202 (Chapter 86,

Additional U.S. Note 1, HTSUS), 1322;

Sections 123.13-123.18 also issued under 19 U.S.C. 1322;

* * * * *

2. Section 123.12 is amended by revising the first sentence,

respectively, of paragraphs (a)(1) and (a)(2), and by revising

paragraph (b), to read as follows:

Sec. 123.12 Entry of foreign locomotives and equipment in

international traffic.

(a) * * *

(1) On inward trip. Unless formally entered and cleared through

Customs into the United States, or unless exempt from entry as provided

in Sec. 141.4(b)(4) of this chapter, a foreign locomotive shall be used

on the inward trip only in connection with taking the inbound train to

the last place in a continuous haul, including the switching of cars

which it has hauled into the United States. * * *

(2) On outward trip. Unless formally entered and cleared through

Customs into the United States, or unless exempt from entry as provided

in Sec. 141.4(b)(4) of this chapter, foreign locomotives may be used on

the outward trip only in connection with through trains crossing the

boundary, including switching to make up such trains. * * *

(b) Admission of empty equipment. Empty foreign railroad equipment

shall be admitted to the United States without formal entry and payment

of duty only if:

(1) The passengers or goods to be loaded are to be transported

directly to or through a foreign country; or

(2) The equipment is exempt from entry as provided in

Sec. 141.4(b)(4) of this chapter.

* * * * *

PART 128--EXPRESS CONSIGNMENTS

1. The authority for part 128 is revised to read as follows:

Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized

Tariff Schedule of the United States (HTSUS)), 1321, 1484, 1498,

1551, 1555, 1556, 1565, 1624.

2. Section 128.21 is amended by revising paragraph (a)(4) to read

as follows:

Sec. 128.21 Manifest requirements.

(a) Additional information. * * *

(4) Specific description of the merchandise, and under the

following conditions, the Harmonized Tariff Schedule of the United

States (HTSUS) subheading number:

(i) If the merchandise is required to be formally entered as

provided in Sec. 128.25; or

(ii) If the merchandise is eligible for, and is entered under, the

informal entry procedures as provided in Sec. 128.24, but may not be

passed free of duty and tax as consisting of a shipment of merchandise

imported by one person on one day having a fair retail value in the

country of shipment not exceeding $200, as provided in Sec. 128.24(e).

* * * * *

3. Section 128.23 is revised to read as follows:

Sec. 128.23 Entry requirements.

(a) General rule. Except as provided in paragraph (c) of this

section, all articles carried by an express consignment entity shall be

entered by a person with the right to file entry.

(b) Procedures--(1) General. All express consignment entities

utilizing the procedures in this part shall comply with the

requirements of the Customs Automated Commercial System (ACS). These

requirements include those under the Automated Manifest System (AMS),

Cargo Selectivity, Statement Processing, the Automated Broker Interface

System (ABI), and enhancements of ACS.

(2) Entry number. All entry numbers must be furnished to Customs in

a Customs approved bar coded readable format in order to assist in the

processing of express consignment cargo under the Customs Automated

Commercial System (ACS).

(3) Paper entry document waiver. The district director is

authorized, at the time of entry, to accept the appropriate electronic

equivalent in lieu of entry documents for those entries designated as

not requiring examination or review when the advance manifest

requirements of Sec. 128.21(a) of this part have been met.

(c) Exception. Articles specifically exempt from entry by

Sec. 141.4(b) of this chapter need not satisfy the general rule as set

forth in paragraph (a) of this section.

4. Section 128.24 is amended by revising the last sentence of

paragraph (b), and the first sentence of paragraph (c), and by revising

paragraphs (d) and (e) to read as follows:

Sec. 128.24 Informal entry procedures.

* * * * *

(b) Procedures. * * * The party who may make entry under

Sec. 143.26 of this chapter may submit a copy of the invoice or the

advance manifest as described in Sec. 128.21 in lieu of other control

documents.

(c) Alternative procedure. The party who may make entry under

Sec. 143.26 of this chapter may be required to submit an individual

Customs Form 3461 covering the eligible shipments on a daily basis or

by flight basis. * * *

(d) Entry summary. An entry summary (Customs Form 7501) must be

presented in proper form, and estimated duties deposited within 10 days

of the release of the merchandise under either the regular or

alternative procedure described in this section. However, see paragraph

(e) of this section if the shipment is valued at $200 or less.

(e) Shipments valued at $200 or less. Shipments valued at $200 or

less meeting the requirements of Sec. 10.151 of this chapter shall be

passed free of duty and tax. Such shipments must be segregated from

shipments valued at more than $200 if an advance manifest is used as

the entry document, as provided for in Sec. 128.21. If such an advance

manifest is used as the entry document, the following are not required

to be provided for shipments qualifying under this paragraph:

(1) The Harmonized Tariff Schedule of the United States (HTSUS)

subheading number (see Sec. 128.21(a)(4)); and

(2) An entry summary (see paragraph (d) of this section).

5. Section 128.25 is revised to read as follows:

Sec. 128.25 Formal entry procedures.

Formal entry, as provided for under 19 U.S.C. 1484 in parts 141,

142, and 143 (except for subpart C), of this chapter, is required for

all shipments exceeding the monetary limitation for informal entry (see

Sec. 128.24) and any shipment for which the informal entry procedures

may not be used (see Sec. 128.24).

Sec. 128.26 [Removed]

6. Section 128.26 is removed.

PART 141--ENTRY OF MERCHANDISE

1. The general authority for part 141 continues to read as follows,

and the specific section authority for Sec. 141.4 is revised to read as

follows:

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

* * * * *

Section 141.4 also issued under 19 U.S.C. 1202 (General Note 13;

Chapter 86, Additional U.S. Note 1; Chapter 89, Additional U.S. Note

1; Chapter 98, Subchapter III, U.S. Note 4; Chapter 99, Subchapter

V, U.S. Note 9, Harmonized Tariff Schedules of the United States

(HTSUS)), 1498;

* * * * *

2. Section 141.4 is revised to read as follows:

Sec. 141.4 Entry required.

(a) General. All merchandise imported into the United States is

required to be entered, unless specifically excepted.

(b) Exceptions. The following are the exceptions to the general

rule:

(1) The exemptions listed in General Note 13 to the Harmonized

Tariff Schedule of the United States (HTSUS).

(2) Vessels (not including vessels classified in headings 8903 and

8907 and subheadings 8905.90.10 and 8906.00.10 or in Chapter 98, HTSUS,

such as under subheadings 9804.00.35 or 9813.00.35). See also Chapter

89, Additional U.S. Note 1, HTSUS.

(3) Instruments of international traffic described in Sec. 10.41a

of this chapter, under the conditions provided for in that section. See

also Chapter 98, Subchapter III, U.S. Note 4, HTSUS.

(4) Railway locomotives classified in heading 8601 or 8602, HTSUS,

and freight cars classified in heading 8606, HTSUS, on which no duty is

owed (see paragraph (d) of this section). See Chapter 86, Additional

U.S. Note 1, HTSUS; Chapter 99, Subchapter V, U.S. Note 9, HTSUS; see

also 19 CFR part 123 for reporting requirements for railway equipment

brought into the United States from Canada or Mexico.

(c) Undeliverable articles. The exemption from entry for

undeliverable articles under General Note 13(e), HTSUS, is subject to

the following conditions:

(1) The person claiming the exemption must submit a certification

(documentary or electronic) that:

(i) The merchandise was intended to be exported to a foreign

country;

(ii) The merchandise is being returned within 45 days of departure

from the United States;

(iii) The merchandise did not leave the custody of the carrier or

foreign customs;

(iv) The merchandise is being returned to the United States because

it was undeliverable to the foreign consignee; and

(v) The merchandise was not sent abroad to receive benefit from, or

fulfill obligations to, the United States as a result of exportation.

(2) Upon request by Customs, the person claiming the exemption

shall provide evidence required to support the claim for exemption.

(d) Railway locomotives and freight cars. To be excepted from

entry, railway locomotives and freight cars described in Additional

U.S. Note 1 of Chapter 86, HTSUS, and railway freight cars from Canada

described in subheading 9905.86.05 or 9905.86.10, HTSUS, are subject to

the following requirements, as applicable:

(1) For a railway freight car described in subheading 9905.86.05,

HTSUS, the importer shall certify, subject to Customs verification,

that the freight car was produced before July 1, 1991, or if admitted

after July 1, 1994, that the freight car was produced not less than 3

years before the date of importation;

(2) For a railway freight car described in subheading 9905.86.10,

HTSUS, the importer shall certify, subject to Customs verification,

that the freight car will be exported within 1 year from the date of

importation. (Any railway freight car admitted into the United States

under this provision which is not exported within the 1-year period

becomes subject to entry and the payment of any applicable duties.);

(3) For railway locomotives and freight cars described in

Additional U.S. Note 1 of Chapter 86, HTSUS, and railway freight cars

described in subheading 9905.86.05 or 9905.86.10, HTSUS, to be released

in accordance with paragraph (b)(4) of this section, the importer shall

first file a bond on Customs Form 301, containing the bond conditions

set forth in either Sec. 113.62 or 113.64 of this chapter.

(e) Informal entry. Merchandise qualifying for informal entry by

regulation, pursuant to 19 U.S.C. 1498, is exempt from formal entry

under 19 U.S.C. 1484 and this part, but must be entered as required

under applicable regulations (see part 143, subpart C, and Secs. 10.151

through 10.153, 128.24, 145.31, 145.32, 148.12, 148.13, 148.51, and

148.62 of this chapter).

PART 143--SPECIAL ENTRY PROCEDURES

1. The authority for part 143 continues to read as follows:

Authority: 19 U.S.C. 66, 1481, 1484, 1498, 1624.

2. Section 143.21 is amended by adding a paragraph (l) to read as

follows:

Sec. 143.21 Merchandise eligible for informal entry.

* * * * *

(l) Shipments of merchandise qualifying for the administrative

exemptions under 19 U.S.C. 1321(a)(2) and provided for in--

(1) Section 10.151 or 145.31 of this chapter (certain importations

not exceeding $200 in value);

(2) Section 10.152 or 145.32 of this chapter (certain bona-fide

gifts not exceeding $100 in value ($200 in the case of articles sent

from a person in the Virgin Islands, Guam, or American Samoa)); or

(3) Section 148.51 or 148.64 of this chapter (certain personal or

household articles not exceeding $200 in value).

3. Section 143.23 is amended by adding two new paragraphs (i) and

(j) to read as follows:

Sec. 143.23 Form of entry.

* * * * *

(i) A shipment of merchandise not exceeding $1250 in value which is

imported by an express consignment operator or carrier and which meets

the requirements in Sec. 128.24 of this chapter may be entered as

provided in that section.

(j) Except for mail importations (see Secs. 145.31 and 145.32 of

this chapter), or in the case of personal written or oral declarations

(see Secs. 148.12, 148.13 and 148.62 of this chapter), a shipment of

merchandise not exceeding $200 in value which qualifies for informal

entry under 19 U.S.C. 1498 and meets the requirements in Sec. 10.151 or

Sec. 10.152 of this chapter may be entered by presenting the bill of

lading or a manifest listing each bill of lading (see Secs. 10.151,

10.152 and 128.24(e) of this chapter). The following information is

required to be filed as a part of such entry:

(1) Country of origin of the merchandise;

(2) Shipper name, address and country;

(3) Ultimate consignee name and address;

(4) Specific description of the merchandise;

(5) Quantity; and

(6) Value.

4. Section 143.26 is added to read as follows:

Sec. 143.26 Party who may make informal entry of merchandise.

(a) Shipments valued between $200 and $1250. A shipment of

merchandise valued between $200 and $1250 which qualifies for informal

entry under 19 U.S.C. 1498 may be entered by the owner or purchaser of

the shipment or, when appropriately designated by the owner, purchaser,

or consignee of the shipment, a Customs broker licensed under 19 U.S.C.

1641.

(b) Shipments valued at $200 or less. A shipment of merchandise

valued at $200 or less which qualifies for informal entry under 19

U.S.C. 1498 and meets the requirements in 19 U.S.C. 1321(a)(2) (see

Secs. 10.151, 10.152, 10.153, 145.31, 145.32, 148.51, 148.64, of this

chapter) may be entered by the owner, purchaser, or consignee of the

shipment or, when appropriately designated by one of these persons, a

Customs broker licensed under 19 U.S.C. 1641.

PART 145--MAIL IMPORTATIONS

1. The general authority for part 145 is revised to read as

follows:

Authority: 19 U.S.C. 66, 1202 (General Note 17, Harmonized

Tariff Schedule of the United States (HTSUS)), 1624.

* * * * *

2. Section 145.31 is revised to read as follows:

Sec. 145.31 Importations not over $200 in value.

The district director shall pass free of duty and tax, without

preparing an entry as provided for in Sec. 145.12, packages containing

merchandise having an aggregate fair retail value in the country of

shipment of not over $200, subject to the requirements set forth in

Secs. 10.151 and 10.153 of this chapter.

3. Section 145.32 is revised to read as follows:

Sec. 145.32 Bona-fide gifts.

The district director shall pass free of duty and tax, without

preparing an entry as provided for in Sec. 145.12, articles sent as

bona-fide gifts from persons in foreign countries to persons in the

United States having an aggregate fair retail value in the country of

shipment not exceeding $100 ($200, in the case of articles sent from

persons in the Virgin Islands, Guam, and American Samoa), subject to

the requirements set forth in Secs. 10.152 and 10.153 of this chapter.

PART 148--PERSONAL DECLARATIONS AND EXEMPTIONS

1. The general authority for part 148 is revised, and the specific

section authority for Secs. 148.43, 148.51, 148.63, 148.64 and 148.74

continues, to read as follows:

Authority: 19 U.S.C. 66, 1496, 1498, 1624. The provisions of

this part, except for subpart C, are also issued under 19 U.S.C.

1202 (General Note 17, Harmonized Tariff Schedule of the United

States (HTSUS));

* * * * *

Sections 148.43, 148.51, 148.63, 148.64 and 148.74 also issued

under 19 U.S.C. 1321;

* * * * *

Secs. 148.12, 148.51, 148.64 [Amended]

2. Sections 148.12(b)(2)(ii), 148.51(b)(1), and 148.64(b)(1) are

amended by removing the reference to ``$25'' where appearing therein,

and by adding in its place ``$200''.

PART 159--LIQUIDATION OF DUTIES

1. The authority for part 159 continues to read as follows:

Authority: 19 U.S.C. 66, 1500, 1624. Subpart C also issued under

31 U.S.C. 5151. Additional authority and statutes interpreted or

applied are cited in the text or following the sections affected.

2. Section 159.6 is amended by removing the references to ``$10''

and ``duties'' wherever appearing in paragraphs (a), (b) and (c), and

by adding in place thereof, respectively, ``$20'', and ``duties, fees,

and taxes''; and by revising paragraph (d) to read as follows:

Sec. 159.6 Difference between liquidated duties and estimated duties.

* * * * *

(d) Customs duties and fees and internal revenue taxes netted for

$20 limit. The assessments of Customs duties and fees and internal

revenue taxes shall be separately stated on the entry at the time of

liquidation, but the amounts of any differences shall be netted when

applying the $20 minimum for issuance of a bill or refund check.

George J. Weise,

Commissioner of Customs.

Approved: May 26, 1994.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 94-14255 Filed 6-8-94; 4:40 pm]

BILLING CODE 4820-02-P