Increase of Maximum Amount for Informal Entries to $2000

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 123, 128, 141, 143, 145 and 148

RIN 1515-AC11

Increase of Maximum Amount for Informal Entries to $2000

AGENCY: Customs Service, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: Under the current Customs Regulations, shipments of

merchandise generally must be valued at $1,250 or less in order to

qualify for informal entry procedures. This regulatory value limit

reflects the previous statutory maximum that the Secretary of the

Treasury could establish by regulation under 19 U.S.C. 1498(a)(1) prior

to its amendment by section 662 of the North American Free Trade

Agreement Implementation Act which raised the statutory maximum to

$2,500. As a consequence of this increase in the statutory maximum, and

consistent with the regulatory discretion conferred by the statute to

establish a level within that limit, Customs proposes in this document

to amend the Customs Regulations to increase the informal entry value

limit to $2,000.

DATES: Comments must be received on or before August 8, 1997.

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: Operational Aspects: Linda Walfish,

Office of Field Operations (202-927-0042).

Legal Aspects: Jerry Laderberg, Office of Regulations and Rulings

(202-482-6940).

SUPPLEMENTARY INFORMATION:

Background

All merchandise imported into the customs territory of the United

States is subject to entry and clearance procedures. Section 484(a),

Tariff Act of 1930, as amended (19 U.S.C. 1484(a)), provides that the

``importer of record'' or his authorized agent shall: (1) Make entry

for imported merchandise by filing such documentation or information as

is necessary to enable Customs to determine whether the merchandise may

be released from Customs custody; and (2) complete the entry by filing

with Customs the declared value, classification and rate of duty

applicable to the merchandise and such other documentation or other

information as is necessary to enable Customs to properly assess duties

on the merchandise and collect accurate statistics with respect to the

merchandise and determine whether any other applicable requirement of

law is met. Part 142, Customs Regulations (19 CFR Part 142), implements

section 484 and prescribes procedures applicable to most Customs entry

transactions. These procedures are referred to as formal entry

procedures and generally involve the completion and filing of one or

more Customs forms (such as Customs Form 7501, Entry/Entry Summary,

which contains detailed information regarding the import transaction)

as well as the filing of commercial documents pertaining to the

transaction.

As originally enacted, section 498, Tariff Act of 1930

(subsequently codified at 19 U.S.C. 1498), authorized the Secretary of

the Treasury to prescribe rules and regulations for the declaration and

entry of, among other things, imported merchandise when the aggregate

value of the shipment did not exceed such amount, but not greater than

$250, as the Secretary shall specify in the regulations. Regulations

implementing this aspect of section 498 are contained in Subpart C of

Part 143, Customs Regulations (19 CFR Part 143) which is entitled

``Informal Entry''. The informal entry procedures set forth in Subpart

C of Part 143 are less

[[Page 31384]]

burdensome than the formal entry procedures prescribed in Part 142 of

the regulations. For example, if authorized by the port director,

informal entry may be effected by the filing of a commercial invoice

setting forth a declaration signed by the importer or his agent

attesting to the accuracy of the information on the invoice.

Section 206 of the Trade and Tariff Act of 1984 (Public Law 98-573,

98 Stat. 2948) amended section 498 by increasing to $1,250 (but with

some exceptions) the maximum dollar amount that the Secretary could

prescribe by regulation for purposes of the declaration and entry of

imported merchandise. On July 23, 1985, T.D. 85-123 was published in

the Federal Register (50 FR 29949) to, among other things, increase to

$1,000 the regulatory limit for which informal entries could be filed;

the regulatory amendments in this regard involved changes to Subpart C

of Part 143 and various other provisions of the Customs Regulations

that reflected the $250 informal entry dollar limit, and Customs

explained in the background portion of T.D. 85-123 that the new limit

would be set initially in the regulations at $1,000, with the option to

increase it to $1,250 in the future. On August 31, 1989, Customs

published in the Federal Register (54 FR 36025) T.D. 89-82 which

amended the Customs Regulations by increasing the limit for which

informal entries could be filed to the maximum $1,250 permitted under

section 498 as amended by section 206 of the Trade and Tariff Act of

1984.

Section 662 of the North American Free Trade Agreement

Implementation Act (Pub. L. 103-182, 107 Stat. 2057) amended section

498 by increasing to $2,500 the maximum dollar amount that the

Secretary could prescribe by regulation for purposes of the declaration

and entry of merchandise. As a result of this further increase in the

statutory maximum, and in consideration of the fact that the regulatory

limit for informal entries has not been increased since 1989, Customs

believes that it would be appropriate to again increase the regulatory

limit for informal entries.

Similar to the approach taken in 1985 as indicated above, and

noting that the statutory maximum still represents a ceiling but does

not preclude adoption of a lower regulatory limit, Customs believes

that it would be preferable at this time to take an intermediate step

by establishing a new informal entry limit of $2,000, which would be

considerably higher than the present $1,250 regulatory limit but still

somewhat below the maximum level authorized by statute. Customs

believes that adoption of this proposed $2,000 limit would result in

the best balance between the revenue and statistical collection and

enforcement responsibilities of Customs and the interest of the

importing public in having an expanded opportunity to use the less

burdensome informal entry procedures. If the proposed new $2,000

informal entry limit is adopted, Customs would still retain the option

of proposing a further upward adjustment of the regulatory limit at an

appropriate future date, subject to the statutory maximum, after having

had an opportunity to evaluate the operational effect of the new $2,000

limit as well as any other intervening change in circumstances that may

have an impact on the entry process.

The proposed changes to the regulations set forth in this document

involve replacement of references to ``$1,250'' by references to

``$2,000'' in the informal entry provisions of Subpart C of Part 143

and in various other provisions within Parts 10, 123, 128, 141, 145 and

148 of the Customs Regulations (19 CFR Parts 10, 123, 128, 141, 145 and

148).

Comments

Before adopting the proposed amendments as a final rule,

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, NW., Suite 4000, Washington,

DC.

Executive Order 12866

This document does not meet the criteria for a ``significant

regulatory action'' as specified in E.O. 12866.

Regulatory Flexibility Act

Pursuant to the provisions of the Regulatory Flexibility Act (5

U.S.C. 601 et seq.), it is certified that, if adopted, the proposed

amendments will not have a significant economic impact on a substantial

number of small entities. The proposed regulatory amendments are in

response to a statutory change and will have the effect of reducing the

regulatory burden on the public. Accordingly, the proposed amendments

are not subject to the regulatory analysis or other requirements of 5

U.S.C. 603 and 604.

Drafting Information

The principal author of this document was Francis W. Foote, Office

of Regulations and Rulings, U.S. Customs Service. However, personnel

from other offices participated in its development.

List of Subjects

19 CFR Part 10

Customs duties and inspection, Imports, Reporting and recordkeeping

requirements.

19 CFR Part 123

Aircraft, Canada, Customs duties and inspection, Imports, Mexico,

Motor carriers, Railroads, Reporting and recordkeeping requirements,

Vehicles, Vessels.

19 CFR Part 128

Carriers, Couriers, Customs duties and inspection, Entry, Express

consignments, Freight, Imports, Informal entry procedures, Manifests,

Reporting and recordkeeping requirements.

19 CFR Part 141

Bonds, Customs duties and inspection, Entry of merchandise,

Invoices, Release of merchandise, Reporting and recordkeeping

requirements.

19 CFR Part 143

Customs duties and inspection, Entry of merchandise, Invoice

requirements, Reporting and recordkeeping requirements.

19 CFR Part 145

Customs duties and inspection, Imports, Mail, Postal service,

Reporting and recordkeeping requirements.

19 CFR Part 148

Customs duties and inspection, Imports, Personal exemptions,

Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

For the reasons stated above, it is proposed to amend Parts 10,

123, 128, 141, 143, 145 and 148 of the Customs Regulations (19 CFR

Parts 10, 123, 128, 141, 143, 145 and 148), as set forth below.

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,

ETC.

1. The authority citation for Part 10 continues to read in part as

follows:

[[Page 31385]]

Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized

Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508,

1623, 1624, 3314.

* * * * *

Sec. 10.1 [Amended]

2. In Sec. 10.1, the introductory text of paragraph (a) and the

first sentence of paragraph (b) are amended by removing the reference

``$1,250'' and adding, in its place, the reference ``$2,000''.

PART 123--CUSTOMS RELATIONS WITH CANADA AND MEXICO

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

and the specific authority citation for Sec. 123.4 continues to read,

as follows:

Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized

Tariff Schedule of the United States (HTSUS)), 1431, 1433, 1436,

1448, 1624.

* * * * *

Section 123.4 also issued under 19 U.S.C. 1484, 1498;

* * * * *

Sec. 123.4 [Amended]

2. In Sec. 123.4, the first sentence of paragraph (b) is amended by

removing the reference ``$1,250'' and adding, in its place, the

reference ``$2,000''.

PART 128--EXPRESS CONSIGNMENTS

1. The authority citation for Part 128 continues to read as

follows:

Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized

Tariff Schedule of the United States), 1321, 1484, 1498, 1551, 1555,

1556, 1565, 1624.

Sec. 128.24 [Amended]

2. In Sec. 128.24, paragraph (a) is amended by removing the

reference ``$1250'' wherever it appears and adding, in its place, the

reference ``$2,000''.

PART 141--ENTRY OF MERCHANDISE

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

follows:

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

* * * * *

Subpart F also issued under 19 U.S.C. 1481;

* * * * *

Sec. 141.82 [Amended]

2. In Sec. 141.82, paragraph (d) is amended by removing the

reference ``$1,250'' and adding, in its place, the reference

``$2,000''.

PART 143--SPECIAL ENTRY PROCEDURES

1. The authority citation for Part 143 continues to read as

follows:

Authority: 19 U.S.C. 66, 1481, 1484, 1498, 1624.

Sec. 143.21 [Amended]

2. In Sec. 143.21, paragraph (a), the first sentence of paragraph

(b), and paragraphs (c), (f) and (g) are amended by removing the

reference ``$1,250'' and adding, in its place, the reference

``$2,000''.

Sec. 143.22 [Amended]

3. In Sec. 143.22, the second sentence is amended by removing the

reference ``$1,250'' and adding, in its place, the reference

``$2,000''.

Sec. 143.23 [Amended]

4. In Sec. 143.23, paragraphs (d) and (i) are amended by removing

the reference ``$1,250'' and adding, in its place, the reference

``$2,000''.

Sec. 143.26 [Amended]

5. In Sec. 143.26, the heading and text of paragraph (a) are

amended by removing the reference ``$1,250'' and adding, in its place,

the reference ``$2,000''.

PART 145--MAIL IMPORTATIONS

1. The authority citation for Part 145 continues to read in part as

follows:

Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized

Tariff Schedule of the United States), 1624.

Section 145.4 also issued under 18 U.S.C. 545, 19 U.S.C. 1618;

* * * * *

Section 145.12 also issued under 19 U.S.C. 1315, 1484, 1498;

* * * * *

Section 145.35 through 145.38, 145.41, also issued under 19 U.S.C.

1498;

* * * * *

Sec. 145.4 [Amended]

2. In Sec. 145.4, paragraph (c) is amended by removing the

reference ``$1,250'' and adding, in its place, the reference

``$2,000''.

Sec. 145.12 [Amended]

3. In Sec. 145.12, paragraphs (a)(2), (a)(3) and (b)(1) and the

heading and text of paragraph (c) are amended by removing the reference

``$1,250'' wherever it appears and adding, in its place, the reference

``$2,000''.

Sec. 145.35 [Amended]

4. Section 145.35 is amended by removing the reference ``$1,250''

and adding, in its place, the reference ``$2,000''.

Sec. 145.41 [Amended]

5. Section 145.41 is amended by removing the reference ``$1,250''

and adding, in its place, the reference ``$2,000''.

PART 148--PERSONAL DECLARATIONS AND EXEMPTIONS

1. The authority citation for Part 148 continues to read in part as

follows:

Authority: 19 U.S.C. 66, 1496, 1498, 1624. The provisions of

this part, except for subpart C, are also issued under 19 U.S.C.

1202 (General Note 20, Harmonized Tariff Schedule of the United

States).

* * * * *

Sec. 148.23 [Amended]

2. In Sec. 148.23, the heading and text of paragraph (c)(1) and the

heading and introductory text of paragraph (c)(2) are amended by

removing the reference ``$1,250'' and adding, in its place, the

reference ``$2,000''.

George J. Weise,

Commissioner of Customs.

Approved: April 25, 1997.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 97-14903 Filed 6-6-97; 8:45 am]

BILLING CODE 4820-02-P