Addition of Italy to the List of Countries Entitled to Reciprocal Cruising Licenses for its Pleasure Vessels

DEPARTMENT OF THE TREASURY

19 CFR Part 4

[T.D. 94-63]

Addition of Italy to the List of Countries Entitled to Reciprocal

Cruising Licenses for its Pleasure Vessels

AGENCY: Customs Service, Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations by adding Italy

to the list of countries whose pleasure vessels may be issued U.S.

cruising licenses. Customs has been informed that yachts used and

employed exclusively as pleasure vessels belonging to any U.S. resident

are allowed to arrive at and depart from Italian ports and cruise in

the waters of Italy without being subjected to formal entry and

clearance procedures. Therefore, Customs is extending reciprocal entry

and clearance procedures to Italian-flag pleasure vessels.

EFFECTIVE DATE: These reciprocal privileges became effective for Italy

on March 11, 1994. This amendment is effective August 4, 1994.

FOR FURTHER INFORMATION CONTACT: Barbara Whiting, Carrier Rulings

Branch, 202-482-6940.

SUPPLEMENTARY INFORMATION:

Background

Section 4.94(a), Customs Regulations (19 CFR 4.94(a)), provides

that U.S. documented vessels with a recreational endorsement, that are

used exclusively for pleasure and not engaged in any trade and that do

not violate the U.S. Customs or navigation laws, may proceed from port

to port in the U.S. or to foreign ports without entering and clearing,

provided they have not visited a hovering vessel. However, when

returning from a foreign port or place, such pleasure vessels are

required to report their arrival pursuant to Sec. 4.2, Customs

Regulations (19 CFR 4.2).

Foreign-flag yachts entering the U.S. are generally required to

comply with the laws applicable to foreign vessels arriving at,

departing from, and proceeding between ports of the U.S. See, for

example, Sec. 433, Tariff Act of 1930, as amended (19 U.S.C. 1433).

However, Sec. 4.94(b), Customs Regulations (19 CFR 4.94(b)), provides

that pleasure vessels from certain countries found to exempt U.S.

pleasure vessels from certain formal Customs procedures may be issued

cruising licenses that reciprocally exempt them from similar, U.S.

formal entry and clearance procedures (e.g., filing manifests,

obtaining permits to proceed, and paying entry and clearance fees).

Then, upon arrival at each U.S. port of entry, the masters of such

licensed vessels simply report the fact of arrival to the appropriate

Customs office. Also, yachts or pleasure vessels not carrying

passengers or merchandise in trade are exempt from paying tonnage tax

and light money pursuant to Sec. 4.21(b)(5), Customs Regulations (19

CFR 4.21(b)(5)). The list of such countries that have been granted

reciprocal customs privileges is set forth at Sec. 4.94(b).

By diplomatic note dated January 20, 1994, the Embassy of Italy, in

Washington, D.C., informed the Department of State that Italy allows

U.S. yachts and other pleasure boats to arrive at and depart from

Italian ports and to cruise without payment of import duties or taxes

and free of import prohibitions and restrictions, subject to re-

exportation and certain other conditions. By letter dated March 7,

1994, the Department of State advised the Chief, Carrier Rulings

Branch, U.S. Customs Service, that the Italian treatment of U.S.

pleasure vessels in Italian waters appeared to satisfy the conditions

for reciprocal customs privileges and recommended that Italy be added

to the list of countries under the provisions of 19 CFR 4.94(b). The

Director, International Trade Compliance Division, is of the opinion

that satisfactory evidence has been furnished to grant the reciprocal

privileges allowed under Sec. 4.94(b), effective March 11, 1994, and

requested that Italy be added to the list of countries enumerated at

Sec. 4.94(b).

Authority to amend this section of the Customs Regulations has been

delegated to the Chief, Regulations Branch.

Inapplicability of Public Notice and Comment Requirements, Delayed

Effective Date Requirements, the Regulatory Flexibility Act, and

Executive Order 12866

Because this amendment merely reflects a statutory requirement that

confers a benefit upon the public, pursuant to 5 U.S.C. 553(b)(B),

notice and public procedure thereon are not required. Furthermore, for

the same reasons, good cause exists for dispensing with a delayed

effective date under 5 U.S.C. 553(d) (1) and (3).

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 amendment does not meet the criteria for a ``significant

regulatory action'' as specified in Executive Order 12866.

Drafting Information

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

Regulations Branch. However, personnel from other offices of the

Customs Service participated in its development.

List of Subjects in 19 CFR Part 4

Customs duties and inspection, Exports, Freight, Harbors, Maritime

Carriers, Oil pollution, Reporting and recordkeeping requirements,

Vessels.

Amendment to the Customs Regulations

To reflect the reciprocal privileges granted to vessels registered

in Italy, Part 4, Customs Regulations (19 CFR Part 4), is amended as

set forth below:

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

1. The general authority citation for Part 4 and the specific

authority citation for Sec. 4.94 continue to read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624;

46 U.S.C. App. 3, 91;

* * * * *

Section 4.94 also issued under 19 U.S.C. 1441, 46 U.S.C. App. 104;

* * * * *

Sec. 4.94 [Amended]

2. In Sec. 4.94, paragraph (b) is amended by inserting, in

appropriate alphabetical order, ``Italy'' in the list of countries.

Dated: July 28, 1994.

Harold Singer,

Chief, Regulations Branch.

[FR Doc. 94-18984 Filed 8-3-94; 8:45 am]

BILLING CODE 4820-02-P