Notice of Revised Time Frames Regarding Test of Reconciliation for Adjustments Made to the Price of Imported Merchandise by Related Party Companies Under 26 U.S.C. 482

DEPARTMENT OF THE TREASURY

Customs Service

Notice of Revised Time Frames Regarding Test of Reconciliation

for Adjustments Made to the Price of Imported Merchandise by Related

Party Companies Under 26 U.S.C. 482

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

ACTION: Notice of revised time frames for test.

-----------------------------------------------------------------------

SUMMARY: This document announces Customs decision to revise the time

frames regarding the test Customs plans to conduct involving the use of

reconciliation for those related party importers which have reason to

believe upward adjustments may be made to the price of imported

merchandise for tax purposes pursuant to 26 U.S.C. 482. In a prior

Federal Register notice (60 FR 46141), Customs set out the eligibility

requirements for voluntary participation in the test and described the

basis on which Customs will select participants. This notice revises

the time frames for both applicants to volunteer and for the

commencement and conclusion of the planned test.

DATES: Applications to participate in this reconciliation test must be

filed with and approved by Customs on or before May 1, 1996. The test

will commence no earlier than May 1, 1996, and will cover entry

summaries filed by selected participants from May 1, 1996, to December

31, 1996, or the end of the participant's tax year, whichever comes

first. Participants must file the reconciliation summary, which

provides the outstanding value information, within 15 months of the

filing of the first affected entry summary or by July 31, 1997,

whichever comes first.

ADDRESSES: To be considered for voluntary participation in this test,

applications should be submitted to Mr. William F. Inch, Director,

Office of Regulatory Audit, Office of Strategic Trade, U.S. Customs

Service, 1301 Constitution Avenue, N.W., Room 2311, Washington, D.C.

20229-0001. Once the test is underway, reconciliation summaries shall

be filed to the attention of Mr. Matthew Krimski, Office of Regulatory

Audit, Office of Strategic Trade, U.S. Customs Service, 1301

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

FOR FURTHER INFORMATION CONTACT: Matthew Krimski, (202) 927-0411.

SUPPLEMENTARY INFORMATION:

Background

On September 5, 1995, Customs published a document in the Federal

Register (60 FR 46141) announcing plans to conduct a test regarding the

use of reconciliation for those related party importers which have

reason to believe upward adjustments may be made to the price of

imported merchandise for tax purposes pursuant to 26 U.S.C. 482. The

document described the objectives of the test, the application process

to participate, the eligibility criteria, selectivity criteria and test

evaluation criteria. The document invited public participation in the

test and set forth a deadline for applications at no later than October

1, 1995. The planned commencement of the test was October 1, 1995.

Customs is now revising certain elements of the September 5,

document. Customs now plans to begin the test no earlier than May 1,

1996, and the test will cover entry summaries filed by the selected

participants from May 1, 1996, to December 31, 1996, or the end of the

participant's tax year, whichever comes first.

Participants must file the reconciliation summary, which provides

the outstanding value information, within 15 months of the filing of

the first affected entry summary or by July 31, 1997, whichever comes

first. Further, by applying, applicants agree that the value for

merchandise covered by all entry summaries filed by them or on their

behalf on or after May 1, 1996, until the end of the tax year or

December 31, 1996, whichever comes first, shall be finally determined

by the liquidation of the reconciliation filed in accordance with the

test.

The time frame for Customs acceptance and approval of applications

to participate in the test has been revised to May 1, 1996.

Applications shall be addressed to Mr. William F. Inch as indicated

above in this document.

To be eligible to participate in the test, a participant's tax year

must end between May 1, 1996 and December 31, 1996.

For purposes of the reconciliation test, reconciliation summaries

shall be filed to the attention of Matthew Krimski, Office of

Regulatory Audit, Office of Strategic Trade, U.S. Customs Service, 1301

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

Aside from the revised information set forth in this document, all

other information regarding the reconciliation test set forth in the

Federal Register document of September 5, 1995, is still applicable.

Dated: December 6, 1995.

Karen J. Hiatt,

Acting Assistant Commissioner, Office of Strategic Trade.

[FR Doc. 95-30516 Filed 12-14-95; 8:45 am]

BILLING CODE 4820-02-P