Technical Corrections to the Customs Regulations Relating to Customs Modernization

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 4, 123, 141 and 173

[T.D. 94-24]

RIN 1515-AB36

Technical Corrections to the Customs Regulations Relating to

Customs Modernization

AGENCY: 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 the Customs Modernization

provisions of the North American Free-Trade Agreement Implementation

Act (the NAFTA Act), which went into effect when signed on December 8,

1993. All corrections are to legal authority citations, which do not

involve changes in substantive legal requirements. All vessel and entry

clearance regulatory provisions remain in effect.

EFFECTIVE DATE: March 21, 1994.

FOR FURTHER INFORMATION CONTACT: Gregory R. Vilders, Regulations Branch

(202) 482-6930.

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). Two provisions of the NAFTA Act require that technical

corrections be made to the Customs Regulations immediately: Sections

618 and 690. Sections 618 and 690 repeal more than 50 provisions in

titles 19, 26, and 46 of the United States Code and the Revised

Statutes of the United States to streamline and allow for the

automation of Customs commercial operations; however, it should be

noted that the legal requirements pertaining to vessel entry and

clearance remain in effect under other statutory provisions.

Repealed Provisions

In title 19 of the U.S. Code, 22 sections were repealed: Sections

432, 435, 437, 439, 440, 443, 444, 445, 465, 482, 521, 583, and 585 of

the Tariff Act of 1930 (19 U.S.C. 1432, 1435, 1437, 1439, 1440, 1443,

1444, 1445, 1465, 1482, 1521, 1583, and 1585), and sections 3111, 3118,

3119, 3122, 3124, 3125 of the Revised Statutes of the United States (19

U.S.C. 282, 286, 287, 290, 291, 292), the last undesignated paragraph

of Section 201 of the Act of August 5, 1935 (19 U.S.C. 1432a), the Act

of June 16, 1937 (19 U.S.C. 1435b), and so much of Section 2792 of the

Revised Statutes of the United States as was codified at 19 U.S.C. 289

and 46 U.S.C. app. 110 and 112 on December 8, 1993 (the date this Act

was enacted).

In title 26 of the U.S. Code, a note to Section 4461, relating to

Section 1403(b) of the Water Resources Development Act of 1986 (Public

Law 99-662, 26 U.S.C. 4461 note), was repealed.

In title 46 of the U.S. Code, more than 20 sections were repealed:

Sections 4198, 4199, 4201, 4208, 4213, 4222, 4306, 4307, 4308, 4332,

4348, 4358, 4361, 4362 through 4369, 4573 through 4576 of the Revised

Statutes of the United States (46 U.S.C. app. 94, 93, 96, 102, 101,

126, 351 through 353, 274, 293, 306, 307, 308 through 315, 674 through

677), and Section 4207 of the Revised Statutes of the United States,

Section 1 of the Act of February 10, 1900 (46 U.S.C. app. 131), Section

2 of the Act of April 29, 1908 (46 U.S.C. app. 127), Section 1 of the

Act of July 1, 1916 (46 U.S.C. app. 130) Sections 1 and 2 of the Act of

July 3, 1926 (46 U.S.C. app. 293a and 293b), the Act of May 4, 1934 (46

U.S.C. app. 91a), and so much of Section 4221 as was codified at 46

U.S.C. app. 113 on December 8, 1993 (the date this Act was enacted).

Continued Authority for Regulatory Requirements and Regulatory Changes

Repeal of these statutory provisions affects the following four

parts of the Customs Regulations: Parts 4, 123, 141, and 173 (19 CFR

parts 4, 123, 141, and 173). However, continued legal authority for

existing vessel entry and clearance regulatory provisions is found at

19 U.S.C. 1431, 1433, 1434, 1436 and/or 46 U.S.C. app. 91, as amended.

(See, Section 611 of the NAFTA Act, which amends 19 U.S.C. 1436, and

Section 686 of the NAFTA Act, which amends Section 4197 of the Revised

Statutes, as amended (46 U.S.C. app. 91) and deletes certain obsolete

language from other provisions, to consolidate vessel clearance

requirements, establish the basic requirements for clearance, and

specify circumstances when all requirements need not be met. Further,

Section 686 amends 46 U.S.C. app. 91 to give the Secretary authority to

prescribe by regulation the manner in which clearance is to be

obtained, including the documents, data, or information which must be

submitted or electronically transmitted to obtain clearance).

In part 4, the legal authority references for the following 14

sections are amended: Sections 4.3, 4.6, 4.7, 4.7a, 4.9, 4.12, 4.15,

4.16, 4.39, 4.81, 4.84, 4.85, 4.86, 4.94 (19 CFR Sections 4.3, 4.6,

4.7, 4.7a, 4.9, 4.12, 4.15, 4.16, 4.39, 4.81, 4.84, 4.85, 4.86, 4.94).

The general authority citation for part 4 is also amended.

In part 123, the legal authority reference for Section 123.11 (19

CFR 123.11) is amended.

In part 141, a legal reference cited in Section 141.83 (19 CFR

141.83) is amended.

In part 173, the general legal authority for the part is amended.

These various sections are amended to correct the legal authority

citations by deleting references to those provisions repealed by the

NAFTA Act wherever they are cited as an underlying statutory authority

for the regulatory provision. It should also be noted that further

amendments to the Customs Regulations will be made in the near future

to conform them to other changes mandated by the Customs Modernization

provisions of the NAFTA Act.

Following is a summary of the present regulatory changes:

Discussion of Changes

Part 4

1. The specific authority citations for Secs. 4.6, 4.15, and 4.16

are deleted because they reference 19 U.S.C. 1585, 46 U.S.C. app. 310,

and 19 U.S.C. 1435b, respectively, as the only other authority for

their provisions, and these provisions were repealed by section 690 of

the NAFTA Act. While continued authority for these regulatory

provisions is found at 19 U.S.C. 1433, 1434, and 46 U.S.C. app. 91, the

reference to this continued authority is carried under the general

authority citation for part 4, which is revised to include sections

1433 and 1434 of title 19, and section 91 of title 46.

2. The specific authority citations for Secs. 4.3, 4.7, 4.7a, 4.9,

4.12, 4.39, 4.81, 4.84, 4.85, 4.86, and 4.94 are revised because they

variously reference sections in title 19--section 1432, 1435, 1437,

1439, 1440, 1443, 1444, 1465, 1583--and/or sections in title 46--313,

314, 674--that were repealed by section 690 of the NAFTA Act.

Accordingly, the repealed statute is deleted from the specific

authority citation. While continued authority for these regulatory

provisions is found at 19 U.S.C. 1431, 1433, 1434, and/or 46 U.S.C.

app. 91, the reference to this continued authority is carried under the

general authority citation to part 4, which is further revised to

include section 1431 of title 19.

3. In Sec. 4.3(a), footnote 10 is deleted because it carries text

of 46 U.S.C. app. 91a, which was repealed by section 690 of the NAFTA

Act. While continued authority for this regulatory provision is found

at 19 U.S.C. 1434 and/or 46 U.S.C. app. 91, for the reason given at 1

above, such reference is carried under the general authority citation

to part 4.

4. In Sec. 4.9, the reference to 19 U.S.C. 1435 is deleted from

paragraphs (a) and (c) because section 1435 was repealed by section 690

of the NAFTA Act. As the entry and certification requirements are now

consolidated under the provisions of 19 U.S.C. 1434, paragraphs (a) and

(c) are revised to reference section 1434.

5. In Sec. 4.15(a), the first and second paragraphs of footnote 28

are deleted because they carry text of 46 U.S.C. app. 310 and text of

46 U.S.C. app. 311, respectively, both of which were repealed by

section 690 of the NAFTA Act. Although continued authority for this

regulatory provision is found at 19 U.S.C. 1433 and/or 46 U.S.C. app.

91, for the reason given at 1 above, such reference is carried under

the general authority citation to part 4.

6. In Sec. 4.60(a), the second paragraph of footnote 90 is deleted

because it carries text of 46 U.S.C. app. 91a, which was repealed by

section 690 of the NAFTA Act. However, because the second paragraph of

footnote 90 also carries a cross-reference to Sec. 4.87 of the Customs

Regulations (19 CFR 4.87), the cross-reference is maintained. Continued

authority for this regulatory provision is found at 46 U.S.C. app. 91.

7. In Sec. 4.85, footnotes 116 and 117 are deleted because they

carry text of 19 U.S.C. 1443 and 1445 (in paragraphs (a) and (b)), and

text of 19 U.S.C. 1444 (in paragraph (c)), respectively, which were

repealed by section 690 of the NAFTA Act. Although continued authority

for this regulatory provision is found at 19 U.S.C. 1433 and 1436 and/

or 46 U.S.C. app. 91, for the reason given at 1 above, such reference

is carried under the general authority citation to part 4.

8. In Sec. 4.94, the parenthetical legal authority citations at the

end of the section are removed because they are duplicative; the legal

authority for this section is already enumerated under the specific

authority citation section at the beginning of the part (recall the

revision of this specific authority section discussed under paragraph 2

above).

Part 123

9. The specific authority citation for Sec. 123.11 is deleted

because it references 19 U.S.C. section 1465 as the only other

authority for its provision, and this provision was repealed by section

690 of the NAFTA Act. While continued authority for this regulatory

provision is found at 19 U.S.C. 1431, the reference to this continued

authority is carried under the general authority citation for part 123,

which is revised to include Sec. 1431.

Part 141

10. In Sec. 141.83, the reference to 19 U.S.C. 1465 in paragraph

(d)(11) is deleted because section 1465 was repealed by section 690 of

the NAFTA Act.

Part 173

11. In the general authority citation for part 173, the reference

to 19 U.S.C. 1521 is deleted because section 1521 was repealed by 618

of the NAFTA Act.

Inapplicability of Public Notice and Comment Requirements, Delayed

Effective Date Requirements, 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. 553(a)(2) and (b)(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. 553(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 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 Gregory R. Vilders,

Regulations Branch. However, personnel from other offices participated

in its development.

List of Subjects

19 CFR Part 4

Bonds, Cargo vessels, Customs duties and inspection, Fishing

vessels, Imports, Maritime carriers, Merchandise, Passenger vessels,

Reporting and recordkeeping requirements, Vessels, Yachts.

19 CFR Part 123

Administrative practice and procedure, Bonds, Canada, Customs

duties and inspection, Freight, Imports, Mexico, Railroads, Reporting

and recordkeeping requirements, Vehicles, Vessels.

19 CFR Part 141

Customs duties and inspection, Entry procedures, Invoices,

Reporting and recordkeeping requirements.

19 CFR Part 173

Administrative practice and procedure, Customs duties and

inspection.

Amendments to the Regulations

Parts 4, 123, 141, and 173 of the Customs Regulations (19 CFR parts

4, 123, 141, and 173) are amended as set forth below:

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

1. The general authority citation for part 4 is revised 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;

2. The specific authority references for Secs. 4.6, 4.15, and 4.16

are removed, and the specific authority citations for Secs. 4.3, 4.7,

4.7a, 4.9, 4.12, 4.39, 4.81, 4.84, 4.85, 4.86, and 4.94 are revised to

read as follows:

* * * * *

Section 4.3 also issued under 19 U.S.C. 288, 1441; 46 U.S.C.app.

111;

* * * * *

Section 4.7 also issued under 19 U.S.C. 1581(a); 46 U.S.C.app.

883a, 883b;

Section 4.7a also issued under 19 U.S.C. 1498, 1584;

* * * * *

Section 4.9 also issued under 42 U.S.C. 269; 46 U.S.C.app. 677;

* * * * *

Section 4.12 also issued under 19 U.S.C. 1584;

* * * * *

Section 4.39 also issued under 19 U.S.C. 1446;

* * * * *

Section 4.81 also issued under 19 U.S.C. 1442, 1486; 46 U.S.C.

251, 883;

* * * * *

Section 4.84 also issued under 46 U.S.C.app. 883-1;

Section 4.85 also issued under 19 U.S.C. 1442, 1623;

Section 4.86 also issued under 19 U.S.C. 1442;

* * * * *

Section 4.94 also issued under 19 U.S.C. 1441; 46 U.S.C.app.

104;

* * * * *

Sec. 4.3 [Amended]

3. In Sec. 4.3, paragraph (a) is amended by removing and reserving

footnote 10.

Sec. 4.9 [Amended]

4. In Sec. 4.9, paragraph (a) is amended by removing the reference

``section 435, Tariff Act of 1930 (19 U.S.C. 1435)'' in the fourth

sentence and adding, in its place, the reference ``section 434, Tariff

Act of 1930 (19 U.S.C. 1434)''; and paragraph (c) is amended by

removing the reference ``section 435, Tariff Act of 1930 (19 U.S.C.

1435)'' and adding, in its place, the reference ``section 434, Tariff

Act of 1930 (19 U.S.C. 1434)''.

Sec. 4.15 [Amended]

5. In Sec. 4.15, paragraph (a) is amended by removing the first two

paragraphs of footnote 28.

Sec. 4.60 [Amended]

6. In Sec. 4.60, paragraph (a) is amended by removing the last

paragraph in footnote 90 and adding, in its place, the reference ``(For

clearance via domestic ports, see Sec. 4.87).''.

Sec. 4.85 [Amended]

7. In Sec. 4.85, footnote 116 and footnote 117 are removed and

reserved.

Sec. 4.94 [Amended]

8. In Sec. 4.94 the parenthetical legal authority citations at the

end of the section are removed.

PART 123--CUSTOMS RELATIONS WITH CANADA AND MEXICO

1. The general authority citation for part 123 is revised to read

as follows:

Authority: 19 U.S.C. 66, 1202 (General Note 8, Harmonized Tariff

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

* * * * *

PART 141--ENTRY OF MERCHANDISE

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

follows:

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

* * * * *

Sec. 141.83 [Amended]

2. In Sec. 141.83, paragraph (d)(11) is amended by removing the

words ``465 or'' and ``1465 or''.

PART 173--ADMINISTRATIVE REVIEW IN GENERAL

1. The general authority citation for part 173 is revised to read

as follows:

Authority: 19 U.S.C. 66, 1501, 1520, 1624.

Samuel H. Banks,

Acting Commissioner of Customs.

Approved: March 1, 1994.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 94-6531 Filed 3-18-94; 8:45 am]

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