Customs Service Field Organization; Establishment of Sanford Port of Entry

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 101 and 122

[T.D. 98-35]

Customs Service Field Organization; Establishment of Sanford Port

of Entry

AGENCY: Customs Service; Treasury.

ACTION: Final rule.

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SUMMARY: This document confirms that May 1, 1998, is the effective date

for the establishment of a Customs port of entry at Orlando-Sanford

Airport in Sanford, Florida. Orlando-Sanford Airport's designation as a

user fee airport will terminate on the same date.

EFFECTIVE DATE: May 1, 1998 is the effective date for amendment of

Secs. 101.3(b)(1) and 122.15(b), Customs Regulations, published in the

Federal Register (62 FR 37131) on July 11, 1997.

FOR FURTHER INFORMATION CONTACT: Harry Denning, Office of Field

Operations (202) 927-0196.

SUPPLEMENTARY INFORMATION:

Background

On July 11, 1997, Customs published a document in the Federal

Register (62 FR 37131) T.D. 97-64 which amended Sec. 101.3(b), Customs

Regulations (19 CFR 101.3(b)), to establish a new port of entry at

Orlando-Sanford Airport in Sanford, Florida, and amended

Sec. 122.15(b), Customs Regulations (19 CFR 122.15(b)) to remove the

Sanford Regional Airport from the list of user fee airports. Customs

set forth in that document the justification for redesignating the

airport facility from its user fee status to that of a port of entry

and designated November 10, 1997, as the effective date.

For reasons set forth in a document (T.D. 97-88) published in the

Federal Register (62 FR 60164) on November 7, 1997, Customs delayed the

effective date for establishment of the new port of entry and the

termination of the airport's user fee status until May 1, 1998, and

solicited comments regarding the delayed effective date. In that

document, Customs stated that if comments submitted demonstrated

sufficient grounds for not delaying the effective date until May 1,

1998, Customs would issue another document. The comment period expired

on December 8, 1997.

Discussion of Comments

Six comments were received in response to the document delaying the

effective date until May 1, 1998, four opposing the delay and two in

favor of extending the delay until July 1, 1998.

The four comments opposing the delay emanate from the State of

Maine and were submitted by members of the Maine congressional

delegation and by attorneys on behalf of Bangor International Airport.

These comments essentially contend that Bangor International Airport is

being harmed by the delay because flights would clear at Bangor but for

the market distortion caused by Sanford being permitted to operate

longer as a user fee airport not subject to the passenger fee that is

assessed at ports of entry.

The two comments urging further delay beyond May 1, 1998, in the

establishment of a port of entry at Orlando-Sanford Airport come from

that airport and from attorneys on its behalf. The comments argue that

the delay does not impose an unwarranted competitive burden on port of

entry airports such as Bangor International Airport.

[[Page 23215]]

They further contend that until the construction of the cargo

building and security system at Orlando-Sanford Airport, which has been

delayed, the airport does not fully meet the criteria for a Customs

port of entry.

Determination

Customs decision to suspend the November 10, 1997, effective date

for conversion of Orlando-Sanford Airport to a port of entry was based

in large part on claims that imposition of port of entry status on the

date set by Customs would subject the Airport Operator to a significant

additional cost that it could not, under agreements effective through

May 1, 1998 with carriers landing at Orlando-Sanford Airport, pass on

to carriers.

After reviewing all the comments, which basically represent two

distinct competitive interests, Customs believes that delaying the

designation of Orlando-Sanford Airport as a port of entry was

appropriate under the circumstances. However, Customs believes Orlando-

Sanford Airport was provided with sufficient opportunity to resolve the

concerns it proffered to obtain that delayed effective date.

Accordingly, Customs believes that the designation should not be

further delayed.

Further, Customs believes the comments received did not demonstrate

sufficient grounds for making the Orlando-Sanford Airport a port of

entry before the May 1, 1998 announced effective date.

Accordingly, Customs is confirming that the effective date for the

establishment of the Orlando-Sanford port of entry and the date for the

termination of the airport's user fee status is May 1, 1998.

Amendment to the Regulations

For the reasons stated above, the effective date of the final rule

document FR Doc. 97-18206, published in the Federal Register on July

11, 1997, and delayed until May 1, 1998, pursuant to interim rule

document FR Doc. 97-29599, published in the Federal Register on

November 7, 1997, is now finalized as May 1, 1998.

Regulatory Flexibility Act and Executive Order 12866

Because this document merely confirms a decision previously made,

this document is not subject to the notice and public procedure

requirements of 5 U.S.C. 553, and is not subject to the provisions of

the Regulatory Flexibility Act (5 U.S.C. 603 et seq.). This amendment

does not meet the criteria for a ``significant regulatory action'' as

specified in Executive Order 12866.

Samuel H. Banks,

Acting Commissioner of Customs.

Approved: April 17, 1998.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 98-11190 Filed 4-27-98; 8:45 am]

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