Public Meeting on Reconciliation

DEPARTMENT OF THE TREASURY

Customs Service

Public Meeting on Reconciliation

AGENCY: Customs Service, Department of the Treasury.

ACTION: Notice of meeting.

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SUMMARY: This notice announces that a public meeting regarding

reconciliation will be held in Hearing Room A of the Interstate

Commerce Commission Building in Washington, DC., commencing at 9:30

a.m. on Wednesday, November 12, 1997. The purpose of this meeting is to

(1) discuss transfer pricing issues and (2) analyze a proposal for a

menu-approach to reconciliation. Customs has received various comments

from members of the importing community that a flexible approach should

be developed for reconciliation, under which companies can choose an

option which will best suit their business needs.

DATES: The meeting will be held November 12, 1997, from 9:30 a.m. to 4

p.m.

ADDRESSES: The meeting will be held at the Interstate Commerce

Commission Building, Hearing Room A, 12th Street & Constitution Avenue,

NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: To attend the meeting, please contact

the Office of Regulations and Rulings at (202) 927-0760.

For additional information on the meeting, please contact either

John Durant, Office of Regulations and Rulings, at (202)927-1964 or

Shari McCann, Office of Field Operations at (202)927-1106.

SUPPLEMENTARY INFORMATION: On December 8, 1993, the President signed

the North American Free Trade Agreement Implementation Act (Pub. L.

103-182). Title VI of the Act contained provisions relating to Customs

modernization and is popularly known as the Customs Modernization Act

or Mod Act. In Title VI, section 637 amends section 484 of the Tariff

Act of 1930 (19 U.S.C. 1484) to create a new subsection (b) entitled

``Reconciliation.''

Reconciliation allows a party to provide information, other than

admissibility information, which is undeterminable at time of entry

summary, to Customs at a later date. A reconciliation is treated as an

entry for purposes of liquidation, reliquidation and protest.

Customs has published several notices in the Federal Register

regarding prototype tests of reconciliation. On May 10, 1996, Customs

published a notice in the Federal Register (61 FR 21534) regarding a

reconciliation test covering entries to which antidumping and

countervailing duties applied. This test has been completed.

Customs also published two notices regarding plans to test

reconciliation for related party importers who had reason to believe

upward adjustments may have been made to the price of imported

merchandise for tax purposes pursuant

[[Page 58770]]

to 26 U.S.C. 482 (60 FR 64470 and 60 FR 46141).

The Account-based Declaration Prototype (62 FR 14731, published 3/

27/97), which includes a reconciliation component, is currently being

designed under the Automated Commercial Environment.

Customs is also currently designing the ACS Reconciliation

Prototype and published a notice in the Federal Register (62 FR 51181)

on September 30, 1997, announcing plans to conduct a test of this

prototype. The testing period of this prototype is scheduled to be

implemented in October, 1998.

The importing community has raised concerns to Customs that

reconciliation, as is currently envisioned, is overly burdensome in the

data required. Customs and the trade are working together in an attempt

to provide a series of options for reconciliation, which will provide

the controls and information needed by the government and a practical

mechanism which accommodates various business situations.

This document announces that a public meeting will be held to

discuss issues related to the development of reconciliaton by Customs.

At this meeting, Customs and the trade participants will address

reconciliation under the current legal structure, and analyze a menu-

approach to reconciliation. The goal will be to secure a definition of

the various business problems for which reconciliation does not fit,

analyze a series of options under which to design reconciliation, and

finalize a joint Customs/Industry proposal. Customs will discuss with

the trade participants whether any statutory, regulatory or policy

changes are required before reconciliation can be best implemented.

The meeting will be held in Hearing Room A of the Interstate

Commerce Commission Building in Washington, DC., commencing at 9:30

a.m. on Wednesday, November 12, 1997. Because seating is limited,

reservations are required.

The morning session of this meeting will be devoted to a discussion

of transfer pricing, including the issues companies face in working

under both the Customs and IRS statutes and transfer pricing situations

in need of a reconciliation reporting mechanism. The afternoon session

will be devoted to government/industry analysis of a menu-approach to

reconciliation. The menu-approach is intended to provide a series of

options which address various business needs, including the entire

range of value issues (e.g., assists, indirect payments, transfer

pricing, etc.)

Dated: October 27, 1997.

John Durant.

Director, Mod Act Task Force.

[FR Doc. 97-28779 Filed 10-29-97; 8:45 am]

BILLING CODE 4820-02-P