Customs Service Field OrganizationSioux Falls, SD

SUMMARY: This document proposes to amend the Customs Regulations

pertaining to the field organization of Customs by establishing Sioux

Falls, South Dakota, as a port of entry. The change is being proposed

as part of Customs continuing efforts to obtain more efficient use of

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

to carriers, importers, and the general public.

DATES: Comments must be received on or before November 6, 1995.

ADDRESSES: Written comments (preferably in triplicate) may be addressed

to the Regulations Branch, U.S. Customs Service, Franklin Court, 1301

Constitution Avenue, N.W., Washington, D.C. 20229. Comments submitted

may be inspected at the Regulations Branch, Office of Regulations and

Rulings, Franklin Court, 1099 14th Street, N.W., Suite 4000,

Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Bob Jones, Office of Field Operations

(202-927-0456).

SUPPLEMENTARY INFORMATION:

Background

As part of its continuing efforts to obtain more efficient use of

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

to carriers, importers, and the general public, Customs is proposing to

amend Sec. 101.3 of the Customs Regulations (19 CFR 101.3) by

establishing a port of entry at Sioux Falls, South Dakota, and

encompassing the counties of Minnehaha and Lincoln in the State of

South Dakota.

The Governor of the State of South Dakota has requested the

establishment of a port of entry within South Dakota which does not

presently have a port of entry. In support of the port of entry

request, it has been stated to Customs that the proposed port of entry

will yield significant immediate and future economic benefits for the

State of South Dakota, including the retention and expansion of jobs,

the more efficient transportation of imported and exported merchandise,

the opportunity for establishment of a foreign trade zone, the expanded

development of infrastructure within the proposed port, an enhanced

business competitiveness for existing enterprises, and the opportunity

to encourage new businesses to locate within South Dakota. The Customs

office within the requested port of entry would be located at the Joe

Foss Field airport in Sioux Falls which is the largest urban area

within the State of South Dakota.

In T.D. 82-37 (47 FR 10137), as revised by T.D. 86-14 (51 FR 4559)

and by T.D. 87-65 (52 FR 16328), Customs has set forth certain criteria

which should be considered in connection with a request for port of

entry designation. Specifically, the community for which such

designation is requested must: (1) demonstrate that the benefits to be

derived justify the Federal Government expense involved; (2) except in

the case of land border ports, be serviced by at least two major modes

of transportation (rail, air, water, or highway); and (3) except in the

case of land border ports, have a minimum population of 300,000 within

the immediate service area (approximately a 70-mile radius). In

addition, T.D. 82-37, as revised, provides that at least one of the

following actual or potential workload criteria must be met in the area

to be serviced by the requested port of entry (minimum number of

transactions per year): (1) 15,000 international air passengers; (2)

2,500 (formal) consumption entries, with the applicant location

committing to optimal use of electronic data input means to permit

integration with any Customs system for electronic processing of

entries, and with no more than half of the 2,500 entries being

attributed to one private party; (3) for land border ports, 150,000

vehicles; (4) 2,000 scheduled international aircraft arrivals

(passengers and/or cargo); (5) 350 cargo vessel arrivals; or (6) any

appropriate combination of the foregoing. Finally, T.D. 82-37, as

revised, provides that facilities at the location must include wharfage

and anchorage adequate for oceangoing vessels in the case of a water

port, cargo and passenger facilities, warehousing space for the secure

storage of imported cargo pending final Customs inspection and release,

and administrative office space, inspection areas, storage areas, and

other space necessary for regular Customs operations.

In connection with the request for designation of the Sioux Falls

port of entry it has been represented to Customs that the cost to the

Federal Government would only involve the services of one full-time

Customs official and therefore would be minimal when compared to the

significant benefits, described above, that port of entry status would

impart to the South Dakota business community. As regards

transportation services, Sioux Falls is located at the junction of two

major interstate highways (Interstate 90 and Interstate 29), is

serviced by a major national freight railway company, and is serviced

at the Joe Foss Field airport by national passenger and cargo airlines,

express air freight services and commuter airlines. It has also been

represented to Customs that the greater metropolitan area of Sioux

Falls has a population of 139,236 based on 1990 census figures and that

a population of well over 300,000 exists within a 70-mile radius of

Sioux Falls. With regard to actual or potential workload, the only

figures provided to Customs concerned annual projections of import

entries that would be filed within the requested port of entry by

existing businesses, with no single company accounting for more than

half of the projected entries: 2,709 in 1996, 3,147 in 1997, and 3,253

in 1998; it was also stated to Customs that the Sioux Falls Regional

Airport Authority is committed to making optimal use of electronic data

transfer capability to permit integration with the Customs Automated

Commercial System for processing entries. Finally, it has been

represented to Customs that the Joe Foss Field airport has exceptional

cargo and passenger facilities, that passenger areas can be secured to

accommodate international arrival passenger clearance, that there are

several warehouse facilities in close proximity

[[Page 52348]]

to the Joe Foss Field airport that are suitable for the secure storage

of cargo pending inspection and release by Customs, and that the Sioux

Falls Regional Airport Authority has committed to providing

administrative office space, inspection areas, storage areas, and other

space necessary for regular Customs operations and will also furnish

the Customs office with necessary communications equipment such as a

computer, a telephone, a facsimile machine, and computer lines as well

as access to photocopiers.

Based on the information provided to Customs and summarized above,

Sioux Falls would meet the current minimum criteria for port of entry

designation set forth in T.D. 82-37, as revised. It is noted that the

proposal relies on potential, rather than actual, workload figures.

Therefore, even if the proposed port of entry designation is adopted as

a final rule, Customs will in 3 years review the actual workload

generated within the port of entry. If that review indicates that the

actual workload is below the T.D. 82-37 standards, procedures will be

instituted to revoke port of entry status. Of course, if port of entry

status is revoked, the City of Sioux Falls will have the opportunity to

apply for user fee airport status under 19 U.S.C. 58b.

Proposed Limits of Port of Entry

The geographical limits of the proposed port of entry of Sioux

Falls would be as follows:

All of Minnehaha and Lincoln Counties in the State of South Dakota.

If the proposed port of entry designation is adopted, the list of

Customs ports of entry in 19 CFR 101.3(b) will be amended accordingly.

Comments

Before adopting this proposal, consideration will be given to any

written comments (preferably in triplicate) timely submitted to

Customs. Comments submitted will be available for public inspection in

accordance with the Freedom of Information Act (5 U.S.C. 552),

Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and

Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular

business days between the hours of 9:00 a.m. and 4:30 p.m. at the

Regulations Branch, Office of Regulations and Rulings, Franklin Court,

1099 14th Street, N.W., Suite 4000, Washington, D.C.

Authority

This change is proposed under the authority of 5 U.S.C. 301 and 19

U.S.C. 2, 66 and 1624.

The 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 is being issued with notice 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 provisions of the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.). In addition, matters involving

agency management and organization are not subject to Executive Order

12866.

Michael H. Lane,

Acting Commissioner of Customs.

Approved: September 14, 1995.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 95-24864 Filed 10-5-95; 8:45 am]

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