Foreign Locomotives and Railroad Equipment in International Traffic; Technical Amendment

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 10

[T.D. 99-79]

Foreign Locomotives and Railroad Equipment in International

Traffic; Technical Amendment

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

ACTION: Final rule.

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SUMMARY: In accordance with Customs policy of periodically reviewing

its regulations to ensure that they are consistent, this document makes

a minor technical amendment to the Customs Regulations regarding entry

requirements for foreign locomotives and railroad equipment that are

brought into the United States in international traffic.

EFFECTIVE DATE: November 10, 1999.

FOR FURTHER INFORMATION CONTACT: Glen E. Vereb, Office of Regulations

and Rulings, (202-927-2320).

SUPPLEMENTARY INFORMATION:

Background

Section 322, Tariff Act of 1930, as amended (19 U.S.C. 1322),

provides that vehicles and other instruments of international traffic,

of any class specified by the Secretary of the Treasury, shall be

excepted from the application of the Customs laws, including the

requirement of entry, to such an extent and subject to such terms and

conditions as may be prescribed in regulations or instructions of the

Secretary of the Treasury.

In this regard, Sec. 10.41(a), Customs Regulations (19 CFR

10.41(a)), states that locomotives and other railroad equipment, as

well as trucks, buses, taxicabs, and other vehicles used in

international traffic are subject to the treatment provided in part

123, Customs Regulations (19 CFR part 123).

In particular, Sec. 123.12(a) and (b) describes the circumstances

under which foreign locomotives or other railroad equipment may be

admitted to the United States without the requirement of an entry; and

Sec. 123.14(c) likewise describes the circumstances under which

foreign-based trucks, buses and taxicabs may be admitted to the United

States without the requirement of an entry.

Against this backdrop, Sec. 10.41(d) prescribes, in pertinent part,

that any foreign-owned vehicle brought into the United States for the

purpose of carrying passengers or merchandise domestically for hire or

as an element of a commercial transaction, except as provided at

Sec. 123.14(c), would be subject to treatment as an importation of

merchandise from a foreign country and an entry would be required for

such vehicle.

The citation in Sec. 10.41(d) to Sec. 123.14(c) covers foreign

trucks, buses and taxicabs. However, there is no reference to

Sec. 123.12(a) and (b), as there also should properly be in

Sec. 10.41(d), concerning foreign locomotives and railroad equipment.

Accordingly, consistent with Sec. 10.41(a), Sec. 10.41(d) is

changed to make clear that foreign-owned vehicles include locomotives

and railroad equipment, as well as trucks, busses and taxicabs. In

addition, a reference to Sec. 123.12 (a) and (b) is added to

Sec. 10.41(d) to reflect the existing conditions under which foreign

locomotives and railway equipment may be admitted to the U.S. without

the requirement of a Customs entry.

Furthermore, section 681 of the North American Free Trade Agreement

Implementation Act (Pub. L. 103-182; December 8, 1993) added a

provision to the Harmonized Tariff Schedule of the United States

(HTSUS) exempting from entry railway locomotives classified in headings

8601 and 8602, HTSUS, and railway freight cars classified in heading

8606, HTSUS, on which no duty is owed (see Additional U.S. Note 1,

chapter 86, HTSUS). These exemptions from entry are noted in

Sec. 141.4(b)(4), Customs Regulations (19 CFR 141.4(b)(4)).

Accordingly, to reflect these exemptions from entry, a reference to

Sec. 141.4(b)(4) is also added to Sec. 10.41(d).

The Regulatory Flexibility Act, Executive Order 12866 and

Inapplicability of Public Notice and Comment and Delayed Effective

Date Requirements

Because the amendment merely conforms to existing law and

regulatory practice as noted above, notice and public procedure in this

case are inapplicable and unnecessary pursuant

[[Page 61205]]

to 5 U.S.C. 553(b)(B), and, pursuant to 5 U.S.C. 553(d)(3), a delayed

effective date is not required. Since this document is not subject to

the notice and public comment requirements of 5 U.S.C. 553, it is not

subject to the provisions of the Regulatory Flexibility Act (5 U.S.C.

601 et seq.). Nor does the amendment result in a ``significant

regulatory action'' under E.O. 12866.

List of Subjects in 19 CFR Part 10

Customs duties and inspection, Imports, International traffic,

Reporting and recordkeeping requirements, Vehicles.

Amendment to the Regulations

Part 10, Customs Regulations (19 CFR part 10), is amended as set

forth below.

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

ETC.

1. The general authority citation for part 10 and the relevant

specific sectional authority citation continue to read as follows:

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

Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484,

1498, 1508, 1623, 1624, 3314;

* * * * *

Sections 10.41, 10.41a, 10.107 also issued under 19 U.S.C. 1322;

* * * * *

2. Section 10.41 is amended by revising the first sentence of

paragraph (d) to read as follows:

Sec. 10.41 Instruments; exceptions.

* * * * *

(d) Any foreign-owned locomotive or other railroad equipment,

truck, bus, taxicab, or other vehicle, aircraft, or undocumented boat

brought into the United States for the purpose of carrying merchandise

or passengers between points in the United States for hire or as an

element of a commercial transaction, except as provided at Secs. 123.12

(a) and (b), 123.14(c), and 141.4(b)(4), is subject to treatment as an

importation of merchandise from a foreign country and a regular entry

for such vehicle, aircraft or boat will be made. * * *

* * * * *

Raymond W. Kelly,

Commissioner of Customs.

Approved: August 3, 1999.

Dennis M. O'Connell,

Acting Deputy Assistant Secretary of the Treasury.

[FR Doc. 99-29380 Filed 11-9-99; 8:45 am]

BILLING CODE 4820-02-P