Customs Service Field OrganizationSan Jose, CA

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 101

[T.D. 95-80]

Customs Service Field Organization--San Jose, CA

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

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations pertaining to the

field organization of the Customs Service by designating San Jose,

California, as a port of entry. This change is made as part of Customs

continuing program to obtain more efficient use of its personnel,

facilities, and resources, and to provide better service to carriers,

importers, and the general public.

EFFECTIVE DATE: November 9, 1995.

FOR FURTHER INFORMATION CONTACT: Harry Denning, Office of Field

Operations, (202) 927-0196.

SUPPLEMENTARY INFORMATION:

Background

As part of a continuing program to obtain more efficient use of its

personnel, facilities, and resources, and to provide better service to

carriers, importers, and the general public, Customs published a

document in the Federal Register (60 FR 25176) on May 11, 1995,

proposing to amend Sec. 101.3, Customs Regulations (19 CFR 101.3) by

designating a four county area surrounding San Jose, California, as a

port of entry for Customs purposes and to amend Sec. 101.4, Customs

Regulations (19 CFR 101.4) by removing Monterey as a Customs station.

Monterey, which is part of the four county area encompassed within San

Jose, is presently listed in Sec. 101.4(c), Customs Regulations, as a

Customs station under the supervision of the San Francisco port of

entry. San Jose is presently part of the port of entry of San

Francisco.

As the proposal stated, the city of San Jose requested designation

as a port of entry stating that the efficiency in having a port of

entry located in San Jose would represent a considerable saving of time

and cost for the business community.

The request for port of entry status stated that there will be

several Federal Government benefits if the port of entry is approved.

Approval will support the national goal of United States

competitiveness by strengthening the economic competitiveness of one of

the nation's most critical high technology areas. It will increase the

efficiency of the regional Customs service by improving the

distribution of entries which must be cleared through the San

Francisco-Oakland port and the San Jose port. It will decrease

congestion on the Bay Area's freeways due to shipments going directly

to San Jose International Airport. Finally, it will further the Customs

goal of increased automation, since San Jose International Airport has

provided the equipment necessary to supply a fully automated, highly

efficient Customs port.

The proposal stated that the San Jose port of entry will be served

by three major modes of transportation (air, rail and highway) and that

San Jose has a population of 2,167,000.

The City of San Jose has committed to the optimal use of electronic

data input equipment and software to permit integration with any

Customs system for electronic processing of commercial entries. San

Jose International Airport has provided, at no cost to the Federal

Government, computer equipment and systems which are needed to comply

with the goals of the National Customs Automation Program.

Based on the information provided to Customs, the proposal set

forth Customs belief that San Jose meets the current standards for port

of entry designation set forth in T.D. 82-37, as revised by T.D. 86-14

and T.D. 87-65.

Analysis of Comments

Two entities responded to the proposal. One, an airline, responded

favorably to the proposal. One, a Customs broker, responded negatively

to the proposal.

The Customs broker is concerned with how shipments subject to Food

and Drug Administration (FDA) processing will be handled. The current

procedure for handling cargo which is subject to FDA examination and/or

holding will continue, that is, FDA-related entries currently filed in

San Francisco or Oakland for goods located in San Jose are forwarded

first to the FDA office in Alameda, and their determination is

forwarded or faxed to the San Jose FDA office. FDA has informed Customs

that the procedure will not change once San Jose becomes a separate

port. The time required to clear an FDA-related entry should not change

at all.

Most of the broker's other comments related to the relative

staffing between the ports of San Francisco and San Jose and to entry

submission at both ports. San Jose is currently being staffed with six

positions (five inspectors and one supervisor) funded by COBRA user

fees. This staffing will not change in the near future. Customs

believes the current staffing at San Jose is sufficient to process both

passengers and cargo. The staffing will remain constant through the

year 2000.

Regarding the commenter's concern that there will be inconvenience

or added processing time when San Jose becomes a port, Customs notes

that brokers will be able to file their entries at San Francisco

International Airport or San Jose International Airport, whichever they

choose.

Determination

After consideration of the comments and further review, Customs has

determined to amend Sec. 101.3 to establish San Jose as a port of entry

and to amend Sec. 101.4 to remove Monterey as a Customs station.

Limits of Port of Entry

The geographical limits of the port of entry of San Jose are as

follows:

All of Santa Clara, Santa Cruz, Monterey and San Benito Counties in

the State of California.

Regulatory Flexibility Act and Executive Order 12866

Customs routinely establishes, expands, and consolidates Customs

ports of entry throughout the United States to accommodate the volume

of Customs-related activity in various parts of the country. Although

this document was issued for public comment, it is not subject to the

notice and public procedure requirements of 5 U.S.C. 553 because it

relates to agency management and organization. Accordingly, this

document is not subject to the

[[Page 52628]]

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

Agency organization matters such as this are exempt from consideration

under 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 101

Customs duties and inspection, Harbors, Organization and functions

(Government agencies), Seals and insignia, Vessels.

Amendments to the Regulations

For the reasons set forth in the preamble, part 101 of the Customs

Regulation is amended as set forth below.

PART 101--GENERAL PROVISIONS

1. The general authority citation for part 101 and the specific

authority citations for Secs. 101.3 and 101.4 continue to read as

follows:

Authority: 5 U.S.C. 301; 10 U.S.C. 2, 66, 1202 (General Note 20,

Harmonized Tariff Schedule of the United States (HTSUS)), 1623,

1624.

Sections 101.3 and 101.4 also issued under 19 U.S.C. 1 and 58b;

* * * * *

Sec. 101.3 [Amended]

2. Section 101.3(b) is amended by adding ``San Jose'' to the list

of ports of entry in appropriate alphabetical order in the State of

California and by adding ``T.D. 95-80'' in the adjacent ``Limits of

Port'' column.

Sec. 101.4 [Amended]

3. Section 101.4(c) is amended by removing ``Monterey'' from the

``Customs station'' column and ``San Francisco-Oakland'' from the

adjacent ``Supervisory Port of Entry'' column.

Michael H. Lane,

Acting Commissioner of Customs.

Approved: September 20, 1995.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 95-24705 Filed 10-6-95; 8:45 am]

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