Withdrawal Of Proposed Customs Regulations Amendments Relating To Prefiling Of Entry Documentation

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 141 and 142

RIN 1515-AB21

Withdrawal Of Proposed Customs Regulations Amendments Relating To

Prefiling Of Entry Documentation

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

ACTION: Notice of withdrawal.

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SUMMARY: This document withdraws proposed amendments to the Customs

Regulations which would have limited the privilege of prefiling

merchandise entry documentation to participants in the Automated Broker

Interface and to other entry filers where the carrier participates in,

or where transmission is otherwise through, the Automated Manifest

System. Customs has determined that the proposals should be withdrawn

based on concerns expressed by the trade community and because Customs

is not presently in a position to make the programming changes that

would be necessary to implement the proposals.

DATES: Withdrawal effective July 15, 1994.

FOR FURTHER INFORMATION CONTACT: Ernie Cunningham, Office of Inspection

and Control (202-927-0167).

SUPPLEMENTARY INFORMATION:

Background

On November 6, 1991, Customs published in the Federal Register (56

FR 56608) an Advance Notice of Proposed Rulemaking stating that Customs

was considering amending Parts 141 and 142 of the Customs Regulations

(19 CFR Parts 141 and 142) to limit merchandise entry prefiling (that

is, prior to arrival of the merchandise) privileges to: (1) entries

filed by entry filers who are participants in the Automated Broker

Interface (ABI); and (2) entries filed by non-ABI entry filers for

merchandise that is transported on carriers that are participants in

the Automated Manifest System (AMS). The document also gave advance

notice that if this proposal is adopted, Customs would within six

months of its adoption release selectivity results (that is, a

determination whether a general or intensive examination of merchandise

is necessary) prior to carriers' arrival only to entry filers whose

merchandise is transported on carriers that are participants in AMS.

Thus, in effect, while entry filers who are participants in ABI could

continue to prefile, provisional releases would only be issued by

Customs for merchandise transported on AMS carriers. The document

invited the public to submit written comments to assist Customs in

determining whether to proceed further with these proposals.

On December 13, 1993, Customs published in the Federal Register (58

FR 65135) a Notice of Proposed Rulemaking which, after discussing the

public comments submitted in response to the Advance Notice of Proposed

Rulemaking and noting that no regulatory change was necessary to

implement the proposal to narrow the category of entry filers to whom

selectivity results would be released prior to arrival, set forth

specific proposals to amend Secs. 141.68(a)(3) and 142.2(b)(1) of the

Customs Regulations (19 CFR 141.68(a)(3) and 142.2(b)(1)). The proposed

amendment to Sec. 141.68(a)(3) consisted essentially of a cross-

reference to Sec. 142.2(b)(1), and the proposed amendment to

Sec. 142.2(b)(1) involved setting forth three circumstances in which

entry documentation may be submitted before the merchandise arrives

within the limits of the port where entry is to be made. The first two

circumstances were essentially as outlined in the Advance Notice of

Proposed Rulemaking. The third circumstance, added in response to a

public comment, involved cases where, regardless of whether the carrier

transporting the merchandise for which the entry documentation is filed

is an AMS participant, there is an AMS transmission through the Express

Consignment Module of Air AMS regarding that carrier. The Notice of

Proposed Rulemaking invited public comments on the proposals which

would be considered before adoption of the proposals, and the public

comment period closed on February 11, 1994.

Ten letters were received setting forth comments on the proposed

regulatory amendments. Although the majority of these commenters

supported, in principle, one of the underlying Customs goals of

encouraging carriers to automate, a number of these commenters were of

the view that practical considerations militated against implementation

of the proposals under present circumstances. The cited circumstances

included the need for modifications to Air and Sea AMS to deal with

continuing operational problems, the need to provide access to AMS

through ABI, and the need to address the lack of adequate participation

in Air AMS on the part of freight forwarders and deconsolidators. Some

commenters objected in principle to the approach of encourging one

group to do something by taking a benefit away from another group, and

other commenters stated that the proposals would put small trucking

operators and small customs brokers at a competitive disadvantage vis-

a-vis larger entities that can more easily support the expense of

becoming operational in AMS and ABI.

Customs believes that the comments submitted in response to the

Notice of Proposed Rulemaking raise important issues that must be more

fully addressed before the published proposals are adopted. Those

comments, as well as further internal review of this matter by Customs,

demonstrate that the proposed changes to the existing prefiling policy

would require extensive programming changes in selectivity, AMS, the

Automated Air Arrival/Departure Log, and the yet to be developed

Automated Sea Arrival/Departure Log. Due to other programming

priorities, including the need to address unresolved problems in Air

AMS, and because of the unavailability of adequate personnel and

budgetary resources to devote to the task, Customs is not at the

present time in a position to pursue such large-scale programming

changes. Accordingly, the proposals set forth in the document published

in the Federal Register at 58 FR 65135 on December 13, 1993, are hereby

withdrawn.

George J. Weise,

Commissioner of Customs.

Approved: June 24, 1994.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 94-17147 Filed 7-14-94; 8:45 am]

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