Land Border Carrier Initiative Program

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 123 and 142

RIN 1515-AC16

Land Border Carrier Initiative Program

AGENCY: Customs Service, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations to

provide for the Land Border Carrier Initiative Program (LBCIP), a

program designed to prevent smugglers of illicit drugs from utilizing

commercial land conveyances for their contraband. The program provides

for agreements between carriers and Customs in which the carrier agrees

to increase its security measures and cooperate more closely with

Customs and Customs agrees to apply special administrative provisions

pertaining to penalty amounts and expedited processing of penalty

actions if illegal drugs are found on a conveyance belonging to the

participating carrier. Further, at certain high-risk locations along

the land border, it is proposed to condition an importer's continued

use of the Line Release method of processing entries of merchandise on

the use of carriers/drivers that participate in the LBCIP. These

proposed regulatory changes are designed to improve Customs enforcement

of Federal drug laws along the land border by enhancing its ability to

interdict illicit drug shipments through additional trade movement

information provided by common

[[Page 67766]]

carriers that voluntarily choose to participate in the LBCIP.

DATES: Comments must be received on or before March 2, 1998.

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

to the Regulations Branch, Office of Regulations and Rulings, U.S.

Customs Service, 1300 Pennsylvania Avenue, N.W., Washington, D.C.

20229. Comments submitted may be inspected at the Regulations Branch,

Office of Regulations and Rulings, U.S. Customs Service, 1300

Pennsylvania Avenue, N.W., Suite 3000, Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Jim Kelly, Office of Field Operations,

Anti-Smuggling Division, (202) 927-0458.

SUPPLEMENTARY INFORMATION:

Background

I. Carrier Initiative Programs in General

In 1984, Customs began an air and sea Carrier Initiative Program

(CIP), generally in response to Customs awareness of a substantial

increase in the smuggling of marijuana and cocaine in the South-Florida

area, and specifically as a result of a Customs seizure of an aircraft

operated by an American-flag carrier. The carrier, whose aircraft had

been involved in repeated drug violations, agreed to a multi-point

agreement implementing stringent security measures as a condition to

release of the conveyance. Developed under Customs remission and

mitigation of penalties authority pursuant to section 618 of the Tariff

Act of 1930 (19 U.S.C. 1618), the CIP is grounded in the execution of

written Carrier Initiative Agreements between Customs and the common

carrier, whereby the carrier agrees to improve cargo and conveyance

security, and Customs provides security and drug awareness training.

Over the past ten years, the air and sea CIP has proved to be a

marked success. Since that time, Customs has come to view carriers as

allies in the war against drug smugglers, and expanded the CIP to

include Super Carriers (see, 54 FR 14310, April 10, 1989). To date,

over 2,300 air and sea carriers have voluntarily signed such Carrier

Initiative Agreements with Customs.

Because of the proven success of the air and sea CIP, in 1995

Customs decided to expand the CIP to land border carriers to address

the increased drug smuggling threat. This new Land Border Carrier

Initiative Program (LBCIP) is designed to deter smugglers of illegal

drugs from utilizing commercial land conveyances for their contraband.

The exact locations along the Southwest border where the LBCIP will be

implemented will be published in the Federal Register.

In signing Carrier Initiative Agreements with Customs, land and

rail carriers agree to increase the security measures at their places

of business and on the conveyances used to transport cargo. Further,

carriers agree to cooperate closely with Customs in identifying and

reporting suspected smuggling conduct. In return for this cooperation,

Customs agrees to provide training to carrier employees and drivers in

the areas of cargo and personnel security, document review techniques,

drug awareness, and conveyance search. Further, should illegal drugs be

found aboard a conveyance belonging to a carrier that has executed an

agreement with Customs, Customs agrees to apply special administrative

provisions pertaining to penalty amounts and expedited processing of

penalties. Of course, the degree of compliance with the terms of the

Agreement by the carrier will be considered by Customs in any seizure

or penalty decision or recommendation.

II. The Drug Interdiction Mandates of the Anti-Drug Abuse Acts

In 1986, Congress enacted the Anti-Drug Abuse Act of 1986 (Pub. L.

99-570, 100 Stat. 3207; 21 U.S.C. 801 note) (the 1986 Act) to, among

other things, strengthen Federal efforts to improve the enforcement of

Federal drug laws and enhance the interdiction of illicit drug

shipments.

The 1986 Act amended Customs laws relating to the assessment of

monetary penalties against persons in charge of conveyances used as

common carriers and the seizure and forfeiture of conveyances for the

illegal importation or transportation of drugs. Congress subjected

common carriers to increased penalties and sanctions for at least two

reasons: (1) To encourage greater vigilance on the part of those in

charge of conveyances used as common carriers; and (2) to increase the

accountability and legal responsibility of carriers to insure that

drugs were not carried on board their conveyances.

In particular, the 1986 Act amended sections 584 and 594 of the

Tariff Act of 1930 (19 U.S.C. 1584 and 1594). Section 584 was amended

to increase the penalty provisions which could be assessed against

owners, masters, or persons in charge of conveyances engaged as common

carriers when unmanifested drugs were discovered on board vessels or in

vehicles bound for the United States. The penalties, virtually

unchanged since the 1930s, were increased 2,000%, i.e., from $25 per

ounce of marijuana to $500 per ounce, and from $50 per ounce of heroin

or cocaine to $1,000 per ounce.

Further, the seizure and forfeiture provisions of section 594 were

greatly expanded to include all common carrier conveyances and

operators where prohibited merchandise was involved. Section 594 was

amended to require a conveyance to be forfeited unless the owner,

operator, or person in charge proves that he exercised the ``highest

degree of care and diligence'' where violations involved prohibited

merchandise contained in unmanifested packages or where the marks,

numbers, weights, or quantities disagreed with the manifest, or where

the merchandise was concealed in or on the conveyance but not in the

cargo.

Although the Customs laws hold common carriers to a high standard

of care, Customs has provided guidance and training through the CIP to

alleviate the harsh consequences of those laws in the face of a

carrier's diligent and good faith effort to comply with them.

III. Customs Modernization, Trade Facilitation, and the Line Release

Method of Merchandise Processing

Pursuant to section 448(b) of the Tariff Act of 1930, as amended

(19 U.S.C. 1448(b)), the Secretary of the Treasury is authorized to

provide by regulation for the issuance of special permits for delivery

prior to formal entry (``immediate delivery''). In the late 1980s,

Customs established a new automated system for the expedited processing

of repetitive, high volume entries of merchandise (``Line Release'')

through the use of personal computers and bar code technology (see,

T.D. 92-93). Regulations implementing the Line Release processing

method are delineated at subpart D of Part 142 (Secs. 142.41-142.52),

Customs Regulations (19 CFR Part 142, subpart D).

Line Release facilitates the entry of merchandise along the land

borders of the United States. However, at certain high-risk locations

Customs does not wish to continue to offer line-release processing

unless it can be assured that such will not compromise its various law

enforcement and drug interdiction responsibilities. Balancing these

concerns, Customs proposes that at certain high-risk land border

locations, continued importer use of Line Release be conditioned on the

imported merchandise being carried by participants in the LBCIP. The

additional information made available to Customs by interfacing the

[[Page 67767]]

merchandise-data of Line Release with the cargo-driver-conveyance data

of the LBCIP will enhance Customs ability to assess the threat of

certain commercial transactions more effectively. Only with the

continuing assistance of such participatory land border carriers, as

shown by the success of the previous CIPs, can Customs be assured that

every tool available to protect the United States borders from illicit

drug traffic is employed before according the benefits of expedited

merchandise processing by means of Line Release.

Proposed Amendments Concerning the LBCIP and Line Release

In this document it is proposed to provide for the new LBCIP in

Part 123 of the Customs Regulations, which pertains to Customs

relations with Canada and Mexico, by adding a new Subpart H; the

current subpart H which contains miscellaneous provisions will be

redesignated as new subpart I. The new subpart H of Part 123 will

consist of five sections (Secs. 123.71--123.75).

Further, it is proposed to provide Customs with the discretion, at

certain high-risk locations, to require for the use of Line Release

that imported merchandise, which otherwise qualifies for Line Release,

be transported over the border by carriers and drivers that participate

in the LBCIP. Accordingly, two sections in subpart D (Secs. 142.41 and

142.47) will be revised to reference that carrier participation in the

LBCIP may be required by Customs for Line Release transactions at

particular locations. The public will be informed of these locations by

publications in the Federal Register. At this time Customs plans that

these locations will be limited to those along the Southern border,

where the greatest drug threat to the United States is located. This

limited implementation of the LBCIP is designed to reduce the threat to

public safety presented by the drug problem in that area.

It is noted that participation in either the LBCIP or the Line

Release program does not alter the general authority of Customs

officials to conduct inspections of participating carriers or their

merchandise.

Discussion of Proposed Changes to Regulations

Proposed New Section 123.71

Proposed Sec. 123.71, entitled ``Description of program'',

describes, in general terms, the responsibilities of participants in

the LBCIP, and cross references subpart D, Part 142 of the Customs

Regulations, which provides for expedited processing of repetitive

entries by means of Line Release, to indicate that, at certain high-

risk locations (the locations to be published in the Federal Register),

Customs may require for the use of Line Release that imported

merchandise, which otherwise qualifies for Line Release, be transported

over the border by carriers and drivers that participate in the LBCIP.

Proposed New Section 123.72

Proposed Sec. 123.72, entitled ``Written agreement requirement'',

explains the mutual obligations of LBCIP carriers/drivers and Customs.

A carrier wishing to participate in the LBCIP must agree to assume

certain security responsibilities and a continuing reporting obligation

to Customs regarding material changes to its operations. These material

changes include changes to the structure and relationships of the

carrier's business enterprise and associations, the list of drivers

designated or conveyances registered by the carrier within the

agreement to transport merchandise into the United States, or any other

circumstance that affects the basis of the carrier to participate in

the LBCIP. In return, Customs agrees to train carrier personnel and

designated drivers, and to consider the application of special

administrative procedures when assessing and mitigating drug-related

penalties should controlled substances be found aboard a conveyance

owned or operated by a participating carrier.

Proposed New Section 123.73

Proposed Sec. 123.73, entitled ``Application to participate'',

provides that the application is prepared by the carrier, with

pertinent information provided by those drivers designated for

participation in the program, and delineates the four items of

information needed by Customs to process a request by carriers and

their designated drivers to participate in the program at specific

ports. The descriptive information required pertains to (1) general

business identification and the condition of the business site; (2)

designated drivers; (3) conveyance identification; and (4) an affidavit

of business character. The driver and conveyance information sought is

to enable Customs to conduct background checks and to aid Customs

officers at the border crossing in visually identifying LBCIP-

authorized drivers and LBCIP-registered conveyances. The affidavit of

business character requirement is designed to provide sufficient

business background information for Customs to determine if the

applicant possesses the requisite business integrity to be given access

to Line Release entry processing. Accordingly, applicants will be

required to provide complete business histories to Customs, i.e.,

account for business name changes, reasons for relocations, etc.

Proposed New Section 123.74

Proposed Sec. 123.74, entitled ``Notice of selection; appeal of

determination'', provides that Customs shall provide written notice to

carrier-applicants concerning their participation in the LBCIP.

(Customs will provide written notice to individual designated drivers

only in cases where they are not selected to participate in the LBCIP.)

This section also lists the grounds for nonselection and references the

agency appeal procedures, described at proposed Sec. 123.75, that

carriers/drivers must follow if they wish to appeal the decision of

nonselection.

Proposed New Section 123.75

Proposed Sec. 123.75, entitled ``Notice of revocation; appeal of

decision'', explains the circumstances under which Customs may

terminate a carrier's or driver's participation in the LBCIP. This

section also describes the agency appeal procedures carriers/drivers

must follow if they wish to challenge revocation of their participation

in the LBCIP.

Proposed Amendments to Sections 142.41 and 142.47

Section 142.41, which explains Line Release in general terms, and

Sec. 142.47, which concerns the voiding of Line Release transactions,

are being revised to indicate that, at certain high-risk locations (the

locations to be published in the Federal Register), Customs may require

for the use of Line Release that imported merchandise, which otherwise

qualifies for Line Release, be transported over the border by carriers

and drivers that participate in the LBCIP.

Comments

Before adopting this proposed regulation as a final rule,

consideration will be given to any written comments 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

of the Treasury Department Regulations (31 CFR 1.4), and Sec. 103.11(b)

of the Customs Regulations (19 CFR 103.11(b)), on regular business days

between the hours of 9 a.m. and 4:30 p.m. at the Regulations Branch,

Office of Regulations and Rulings, U.S. Customs Service, 1300

Pennsylvania Avenue, N.W., Suite 3000, Washington, D.C.

[[Page 67768]]

Inapplicability of the Regulatory Flexibility Act, and Executive Order

12866

Pursuant to 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, because the proposed amendments concern a voluntary

program that will confer a benefit on the trade community. Accordingly,

the proposed amendments are not subject to the regulatory analysis or

other requirements of 5 U.S.C. 603 and 604. This amendment does not

meet the criteria for a ``significant regulatory action'' as specified

in Executive Order 12866.

Paperwork Reduction Act

The collection of information contained in this notice of proposed

rulemaking has been submitted to the Office of Management and Budget

(OMB) for review in accordance with the Paperwork Reduction Act of 1995

(44 U.S.C. 3507). Comments on the collection of information should be

sent to the Office of Management and Budget, Attention: Desk Officer

for the Department of the Treasury, Office of Information and

Regulatory Affairs, Washington, D.C. 20503. A copy should also be sent

to Customs at the address set forth previously.

Comments are invited on:

(a) Whether the collection of information is necessary for the

proper performance of the functions of the agency, including whether

the information shall have practical utility;

(b) The accuracy of the agency's estimate of the information

collection burden;

(c) Ways to enhance the quality, utility, and clarity of the

information to be collected;

(d) Ways to minimize the information collection burden on

respondents, including through the use of automated collection

techniques or other forms of information technology; and

(e) Estimates of capital or startup costs and costs of operations,

maintenance, and purchase of services to provide information.

An agency may not conduct or sponsor, and a person is not required

to respond to, a collection of information unless the collection of

information displays a valid control number.

The collection of information in these proposed regulations is at

Sec. 123.73. The information to be collected is necessary to improve

Customs ability to interdict illicit drug shipments along the land

border in cooperation with common carriers and their designated drivers

who participate in the LBCIP. The likely respondents are individual

drivers and commercial carrier organizations that engage in foreign

commerce and trade along the land border of the United States.

Estimated total annual reporting and/or recordkeeping burden: 500

hours.

Estimated average annual burden per respondent/ recordkeeper: 1

hour.

Estimated number of respondents and/or recordkeepers: 500.

Estimated annual frequency of responses: 1.

Part 178 of the Customs Regulations (19 CFR Part 178), which lists

the information collections contained in the regulations and control

numbers assigned by OMB, would be amended accordingly if this proposal

is adopted.

Drafting Information: The principal author of this document was

Gregory R. Vilders, Attorney, Regulations Branch. However, personnel

from other offices participated in its development.

List of Subjects

19 CFR Part 123

Administrative practice and procedure, Aliens, Canada, Common

carriers, Customs duties and inspection, Forms, Imports, International

boundaries, Mexico, Motor carriers, Railroads, Reporting and

recordkeeping requirements, Vehicles.

19 CFR Part 142

Bonds, Common carriers, Customs duties and inspection, Entry of

merchandise, Forms, Reporting and recordkeeping requirements.

Amendments to the Regulations

For the reasons stated above, it is proposed to amend parts 123 and

142 of the Customs Regulations (19 CFR parts 123 and 142), as set forth

below:

PART 123--CUSTOMS RELATIONS WITH CANADA AND MEXICO

1. The general authority citation for part 123 continues to read as

follows, the specific authority citation for Sec. 123.71 is removed,

and specific authority citations for Secs. 123.71 through 123.75 and

for Sec. 123.81 are added, to read as follows:

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

Tariff Schedule of the United States (HTSUS)), 1431, 1433, 1624.

* * * * *

Sections 123.71-123.75 also issued under 19 U.S.C. 1618; Section

123.81 also issued under 19 U.S.C. 1595.

2. Subpart H is redesignated as subpart I and Secs. 123.71 and

123.72 are redesignated as Secs. 123.81 and 123.82 therein,

respectively, and a new subpart H, consisting of Secs. 123.71 through

123.75, is added to read as follows:

Subpart H--Land Border Carrier Initiative Program

Sec. 123.71 Description of program.

The Land Border Carrier Initiative Program (LBCIP) is a program

designed to enlist the voluntary cooperation of commercial conveyance

entities--and their designated drivers--in Customs effort to prevent

the smuggling of controlled substances into the United States.

Participation in the LBCIP requires the land or rail commercial carrier

(e.g., trucks, buses, locomotives, etc.) to enter into a written

agreement with Customs that describes the responsibilities of

participants in the LBCIP. The agreement generally provides that the

carrier agrees to enhance the security of its facilities and the

conveyances employed to transport merchandise. The carrier also agrees

to cooperate closely with Customs in identifying and reporting

suspected smuggling attempts. In exchange for this cooperation, Customs

agrees to provide training to carrier personnel in the areas of cargo

and personnel security, document review techniques, drug awareness, and

conveyance searches. Customs also agrees that should a controlled

substance be found aboard a conveyance owned or operated by a

participating carrier, special administrative procedures relating to

the assessment and mitigation of drug-related penalties will be

followed; the degree of compliance with the terms of the agreement will

be considered as an additional positive mitigating factor in any

seizure or penalties decision or recommendation. Lastly, at certain

high-risk locations, for the use of Line Release, imported merchandise,

which otherwise qualifies for Line Release entry (see, subpart D of

part 142 of this chapter), must be transported over the border by

carriers and drivers that participate in the LBCIP. The locations where

the use of Line Release will be conditioned on participation in the

LBCIP will be published in the Federal Register.

Sec. 123.72 Written agreement requirement.

Commercial carriers desiring to participate in the LBCIP shall

enter into a written agreement with Customs regarding the mutual

obligations of carrier/driver participants and Customs. The terms and

conditions in the written agreement shall generally provide that the

carrier-applicant agrees:

[[Page 67769]]

(a) To participate in Customs training regarding cargo and

personnel security, document review techniques, drug awareness, and

conveyance searches;

(b) To establish (1) security systems at the place of business for

the safe storage and handling of cargo intended to be imported into the

United States, and (2) security procedures aimed at restricting access

to transporting conveyances and preventing the unauthorized lading of

illegal drugs while the conveyance is enroute to the United States;

(c) To conduct, to the extent allowed by law, employment and

criminal history record checks on all personnel designated to

participate in the LBCIP and to exercise responsible supervision and

control over those personnel;

(d) To ensure that only authorized drivers and properly registered

conveyances are utilized in the transportation of merchandise into the

United States, and to maintain current lists of such drivers and

conveyances for Customs inspection upon request;

(e) To immediately report to the appropriate port director any

criminal or dishonest conduct on the part of drivers designated to

participate in the LBCIP, or attempt by others to impede, influence, or

coerce the carrier or drivers into violating any United States law,

including Customs regulations, especially those concerned with

trafficking in illegal drugs; and

(f) To notify the appropriate port director in writing by mail

within 5 days of any change in legal name, business address, business

principals, ownership, drivers, or conveyances that affects the basis

for continued participation in the LBCIP or any other provision

contained in the written agreement.

Sec. 123.73 Application to participate.

To request participation in the LBCIP, the carrier-applicant must

submit an application containing the information requested in this

section. The application must be accompanied by two copies of a LBCIP

written agreement (see Sec. 123.72 of this part; upon request, the

local port director of Customs will provide copies of an unsigned

written agreement) containing original signatures of corporate officers

or owners of the common carrier. The application shall be prepared by

the common carrier, be signed by corporate officers or owners, and

submitted to the port director. If a submitted application does not

provide all of the information specified in this section, the

processing of the application will either be delayed or the application

will be rejected. The application information shall include the

following information:

(a) General business identification and site condition information.

The name and address of the commercial conveyance entity, the names of

all principals or corporate officers, the name and telephone number of

an individual to be contacted for further information, and a complete

and detailed description of the premises where business operations are

conducted, to include all working/storage areas and security features

employed;

(b) Designated driver information. A listing of the drivers

designated by the carrier who will be transporting merchandise into the

U.S. The listing shall set forth the name(s), address(es), date of

birth, nationality, driver's license number, and any other personal

identifying information regarding the drivers listed, e.g., social

security number (if available), to enable Customs to conduct background

checks and to aid Customs officers at the border crossing point in

identifying individual LBCIP-authorized drivers;

(c) Conveyance identification information. A listing of the

conveyances, e.g., trucks and locomotives, that the carrier will

utilize to transport merchandise into the U.S. The listing shall set

forth the type and make of conveyances, country of registration and

license number(s), conveyance-specific identifying markings, e.g.,

vehicle identification numbers (VINs), and any other general conveyance

identifying information, e.g., weight, color, recognizable

modifications, etc., to aid Customs officers at the border crossing

point in identifying particular LBCIP-registered conveyances; and

(d) Affidavit of business character. A statement signed by the

carrier-applicant which attests to each principal's or corporate

officer's past and present business relations, e.g., a list of past

companies worked for and positions held, which fully explains the

presence of any past or present crime involving theft or smuggling or

investigations into such crimes, or other dishonest conduct on the part

of a principal.

Sec. 123.74 Notice of selection; appeal of determination.

The information provided pursuant to paragraphs (b) through (d) of

Sec. 123.73 shall constitute the criteria used to evaluate the

competency of the carrier-applicant and its designated drivers to

participate in the LBCIP. Following Customs evaluation of the

information provided, Customs shall determine the carrier-applicant's

and its designated drivers' ability to participate in the LBCIP. In

cases of selection, Customs will notify the common carrier in writing

and sign and return one of the copies of the written agreement. In

cases of nonselection, the written notice of nonselection shall clearly

state the reason(s) for denial and recite the applicant's/driver's

appeal rights under paragraph (b) of this section.

(a) Grounds for nonselection. The port director may deny a

carrier's application, or a driver's designation, to participate in the

LBCIP for any of the following reasons:

(1) Evidence of any criminal or dishonest conduct involving the

carrier, a corporate officer, designated drivers, or other person the

port director determines is exercising substantial ownership or control

over the carrier operation or corporate officer;

(2) Evidence of improper use of designated conveyances;

(3) Evidence that the written agreement was entered into by fraud

or misstatement of a material fact; or

(4) A determination is made that the grant of LBCIP privileges

would endanger the revenue or security of the Customs area.

(b) Appeal of determination. Carrier-applicants and designated

drivers not selected to participate in the LBCIP and who wish to appeal

the decision shall either:

(1) Appeal the adverse determination in accordance with the appeal

procedure set forth in Sec. 123.75(c) of this part; or

(2) Cure any deficiency in the first application by submitting a

new application to the port director who denied the previous

application after waiting 60 days from the date of issuance of the

first determination.

Sec. 123.75 Notice of revocation; appeal of decision.

(a) Revocation. The port director may immediately revoke a

carrier's participation in the LBCIP and cancel the written agreement,

or a driver's authorization to participate in the LBCIP, for any of the

following applicable reasons:

(1) The selection and written agreement were obtained through fraud

or the misstatement of a material fact by the carrier;

(2) The carrier, a corporate officer, any designated driver, or

other person the port director determines is exercising substantial

ownership or control over the carrier operation or corporate officer,

is indicted for, convicted of, or has committed acts which would

constitute any felony or misdemeanor under United States Federal or

State law. In the absence of an indictment,

[[Page 67770]]

conviction, or other legal process, the port director must have

probable cause to believe the proscribed acts occurred;

(3) The carrier-participant or a designated driver allows an

unauthorized person or entity to use its LBCIP certificate or other

approved form of identification;

(4) The carrier-participant or a designated driver misuses

authorized conveyances;

(5) The carrier-participant or a designated driver refuses or

otherwise fails to follow any proper order of a Customs officer or any

Customs order, rule, or regulation relative to continued participation

in the LBCIP;

(6) The carrier-participant or a designated driver fails to operate

in accordance with the terms of the written agreement; or

(7) Continuation of LBCIP privileges would endanger the revenue or

security of the Customs area in the judgment of the port director.

(b) Notice. When a decision revoking participation has been made,

the port director shall notify the carrier-participant, and, where

appropriate, the individual designated driver(s), of the decision in

writing. The notice of revocation shall clearly state the reason(s) for

revocation and recite the applicant's/driver's appeal rights under

paragraph (c) of this section.

(c) Appeal. An LBCIP participant who receives a notice of

revocation and who wishes to appeal the decision shall file a written

appeal with the Assistant Commissioner, Office of Field Operations,

U.S. Customs Service, Washington, D.C. 20229, within 10 calendar days

of receipt of the notice. The appeal shall be filed in duplicate and

shall set forth the participant's responses to the grounds specified by

the port director in the notice. Within 30 working days of receipt of

the appeal, the Assistant Commissioner, or his designee, shall make a

determination regarding the appeal and notify the applicant in writing.

PART 142--ENTRY PROCESS

1. The authority citation for part 142 continues to read as

follows:

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

2. Section 142.41 is amended by adding a sentence at the end to

read as follows:

Sec. 142.41 Line release.

* * * * *

At certain high-risk locations along the land borders of the United

States (the locations to be published in the Federal Register), which

are approved by Customs for handling Line Release, the use of Line

Release may be denied by Customs unless the imported merchandise is

transported by carriers and drivers that participate in the Land Border

Carrier Initiative Program (see, subpart H of part 123 of this

chapter).

Sec. 142.47 [Amended]

3. In Sec. 142.47, the first sentence of paragraph (b) is amended

by removing the words ``because of an examination'' and adding, in

their place, the words ``for the following reasons: because of an

examination, because a carrier transporting the Line Release

merchandise is not a participant in the Land Border Carrier Initiative

Program (LBCIP), or because a driver or conveyance is not authorized in

accordance with the LBCIP''.

Samuel H. Banks,

Acting Commissioner of Customs.

Approved: August 7, 1997.

Dennis M. O'Connell,

Acting Deputy Assistant Secretary of the Treasury.

[FR Doc. 97-33854 Filed 12-29-97; 8:45 am]

BILLING CODE 4820-02-P