Technical Corrections to the Customs Regulations Relating to Customs Modernization

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 133

[T.D. 94-90]

Technical Corrections to the Customs Regulations Relating to

Customs Modernization

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

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations by making certain

technical corrections necessitated by one of the Customs Modernization

provisions of the North American Free Trade Agreement Implementation

Act, which went into effect when signed on December 8, 1993. The

changes involve the time period that Customs must retain goods seized

for certain intellectual property violations before the goods can be

sold.

EFFECTIVE DATE: November 10, 1994.

FOR FURTHER INFORMATION CONTACT: George F. McCray, Intellectual

Property Rights Branch, at 202-482-6960.

SUPPLEMENTARY INFORMATION:

Background

The Customs Modernization provisions contained in Title VI of the

North American Free Trade Agreement Implementation Act of 1993, Public

Law 103-182, 107 Stat. 2057 (the NAFTA Act), went into effect when the

NAFTA Act was signed on December 8, 1993 (section 692 of the NAFTA

Act). One of the changes effected by this legislation was an amendment

to 19 U.S.C. 1526(e)(3), which involves the time period for retention

of goods seized by Customs for certain intellectual property rights

violations. Section 663 of the NAFTA Act amended 19 U.S.C. 1526(e)(3)

to allow Customs to sell merchandise bearing a counterfeit trademark at

a public auction 90 days after the forfeiture of the merchandise if

Customs has determined that a need for the merchandise has not been

established by any federal, state, or local government or eleemosynary

institution. Prior to this amendment, the statute had required Customs

to wait more than one year before the sale of the merchandise by

appropriate Customs officers.

As a result of the changes in 19 U.S.C. 526(e)(3), corresponding

changes are required in the Customs Regulations, in Sec. 133.52(c)(3)

(19 CFR 133.52(c)(3)).

Discussion of Changes

In 19 CFR 133.52(c)(3), the time period is changed from ``one

year'' to ``90 days,'' and the entity responsible for the sale is

changed from ``the Commissioner or his designee'' to ``the Customs

Service.''

Inapplicability of Public Notice and Comment Requirements, Delayed

Effective Date Reguirements, the Regulatory Flexibility Act, and

Executive Order 12866

Inasmuch as these amendments merely conform the Customs Regulations

to existing law, pursuant to 5 U.S.C.(a)(2) and (b)(3)(B), good cause

exists for dispensing with notice and public procedure thereon as

unnecessary. For the same reason, good cause exists for dispensing with

the requirement for a delayed effective date, under 5 U.S.C. (a)(2) and

(d)(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 participated

in its development.

List of Subjects in 19 CFR Part 133

Copyright, Customs duties and inspection, Imports, Reporting and

recordkeeping requirements, Trade names, Trademarks.

Amendments to the Regulations

Part 133 of the Customs Regulations (19 CFR Part 133) is amended as

set forth below:

PART 133--TRADEMARK, TRADE NAMES AND COPYRIGHTS

1. The general authority citation for Part 133 continues to read

and specific authority for Sec. 133.52 is added to read as follows:

Authority: 17 U.S.C. 101, 601, 602, 603; 19 U.S.C. 66, 1624; 31

U.S.C. 9701.

* * * * *

Section 133.52 also issued under 19 U.S.C. 1526;

* * * * *

Sec. 133.52 [Amended]

2. Section 133.52(c)(3) is amended by removing the words ``1 year''

in the first sentence and adding in their place ``90 days''; and

removing the words ``Commissioner or his designee'' wherever they

appear and adding in their place the words ``Customs Service''.

George J. Weise,

Commissioner of Customs.

Approved: October 24, 1994.

Dennis M. O'Connell,

Acting Deputy Assistant Secretary of the Treasury.

[FR Doc. 94-27906 Filed 11-9-94; 8:45 am]

BILLING CODE 4820-02-P