[Federal Register: March 21, 2003 (Volume 68, Number 55)]
[Rules and Regulations]
[Page 13819-13820]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21mr03-4]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 4
[T.D. 03--11]
RIN 1515-AD25
Compliance With Inflation Adjustment Act
AGENCY: Customs Service, Department of the Treasury.
ACTION: Final rule.
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SUMMARY: Pursuant to the Federal Civil Penalties Inflation Adjustment
Act of 1990, (the Act), each Federal agency is required to adjust for
inflation any civil monetary penalty covered by the Act that may be
assessed in connection with violations of those statutes that the
agency administers. While civil monetary penalties assessed by Customs
under any provisions of the Tariff Act of 1930 are specifically
exempted from the Act, Customs does administer two statutory provisions
which provide for the assessment of civil monetary penalties that are
covered by the Act. One statute concerns the transportation of
passengers between ports or places in the United States; the other
concerns the coastwise towing of vessels. The amount of the penalty
that may be assessed for violations incurred under those statutes needs
to be adjusted for inflation. Accordingly, Customs is amending its
regulations in order to adjust the covered penalty amounts for
inflation in compliance with the provisions of the Act.
EFFECTIVE DATE: March 21, 2003.
FOR FURTHER INFORMATION CONTACT: Jeremy Baskin, Penalties Branch,
Office of Regulations and Rulings, (202-572-8750).
SUPPLEMENTARY INFORMATION:
Background
The Federal Civil Penalties Inflation Adjustment Act of 1990
(hereinafter, the Act), which is codified at 28 U.S.C. 2461 note, and
which was amended in 1996 by the Debt Collection Improvement Act (Pub.
L. 104-134, section 31001(s); 110 Stat. 1321-373), provides that each
Federal agency must adjust for inflation any civil monetary penalties
covered by the Act that are assessed in connection with violations that
are incurred under those statutes that the agency administers. To this
end, pursuant to the Act, as amended by the Debt Collection Improvement
Act, the responsible Federal agency was required, by October 23, 1996,
to make an initial inflationary adjustment to any civil monetary
penalty covered by the Act; and each agency was then required to make
these necessary inflationary adjustments at least once every 4 years
thereafter.
The Act expressly exempts from its coverage any penalties that
Customs may assess for violations that are incurred under any provision
of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et seq.).
However, Customs does administer two statutes that are subject to the
Act; and the penalties that Customs may assess for violations of these
statutes have not previously been adjusted for inflation as required by
the Act.
[[Page 13820]]
Specifically, the two statutes administered by Customs that are
subject to the Act are 46 U.S.C. App. 289 and 46 U.S.C. App. 316(a).
Section 289 prohibits foreign vessels from transporting passengers
between ports or places in the United States; the penalty assessed
under 46 U.S.C. App. 289 is $200 for every passenger transported in
violation of the statute (Sec. 4.80(b)(2), Customs Regulations (19 CFR
4.80(b)(2))). Section 316(a) prohibits certain vessels from towing any
vessel, other than a vessel in distress, between ports or places in the
United States embraced within the coastwise laws; the penalties
assessed for violations of 46 U.S.C. App. 316(a) are a minimum of $250
to a maximum of $1,000 per violation, plus $50 per ton on the
measurement of every vessel towed in violation of the statute (Sec.
4.92, Customs Regulations (19 CFR 4.92)).
Section 5 of the Act (28 U.S.C. 2461 note, section 5) provides that
civil monetary penalties must be adjusted based upon the cost of
living, either by increasing the maximum civil monetary penalty or by
increasing the range of minimum and maximum penalties for each civil
monetary penalty, as appropriate. Any increase determined under section
5 of the Act is to be rounded to the nearest multiple of $10 in the
case of penalties less than or equal to $100, and multiples of $100 in
the case of penalties greater than $100 or less than or equal to
$1,000.
In calculating the specific amount of the adjustment to any civil
monetary penalty covered by the Act, section 5 required that the first
such adjustment, which was to be made by October 23, 1996, could not
exceed 10 percent of the penalty. Thereafter, in determining the proper
adjustment to any civil monetary penalty covered by the Act, section 5
provides for a cost-of-living adjustment that would be determined based
on the percentage by which the Consumer Price Index (CPI) for the month
of June of the calendar year preceding the adjustment exceeds the CPI
for the month of June of the calendar year in which the amount of such
civil monetary penalty was last set or adjusted pursuant to law.
Hence, consistent with the provisions of Section 5 of the Act, as
described, the civil penalty for violating 46 U.S.C. App. 289 is
adjusted to $300 for every passenger transported in violation of the
statute; and the civil penalties for violating 46 U.S.C. App. 316(a)
are adjusted to a minimum of $350 and a maximum of $1,100, plus $60 per
ton on the measurement of every vessel towed in violation of the
statute.
Accordingly, this document amends Sec. Sec. 4.80 and 4.92 of the
Customs Regulations (19 CFR 4.80 and 4.92) in order to make the
necessary inflation-induced adjustments to the penalties assessed for
violations that are incurred under 46 U.S.C. App. 289 and 46 U.S.C.
App. 316(a), as mandated by the Act. Furthermore, the specific
authority citations for Sec. Sec. 4.80 and 4.92 are revised to add a
reference to the codification of the Act at 28 U.S.C. 2461 note.
Administrative Procedure Act, the Regulatory Flexibility Act, and
Executive Order 12866
This final rule merely brings the Customs Regulations into
conformance with the requirements of the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended. As such, pursuant to 5
U.S.C. 553(b)(B) of the Administrative Procedure Act (APA), prior
notice and public procedure are unnecessary in this case, and, pursuant
to 5 U.S.C. 553(d)(3) of the APA, a delayed effective date is not
required. Since this document is not subject to the notice and public
procedure 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 do these amendments meet the criteria for a ``significant
regulatory action'' as specified in E.O. 12866.
List of Subjects in 19 CFR Part 4
Administrative practice and procedure, Coastal zone, Inspection,
Passenger vessels, Penalties, Reporting and recordkeeping requirements,
Vessels.
Amendments to the Regulations
Part 4, Customs Regulations (19 CFR part 4), is amended as set
forth below:
PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES
1. The general authority citation for part 4 continues, and the
specific authority citations for Sec. Sec. 4.80 and 4.92 are revised,
to read as follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1624; 46
U.S.C. App. 3, 91;
* * * * *
Section 4.80 also issued under 28 U.S.C. 2461 note; 46 U.S.C.
12106; 46 U.S.C. App. 251, 289, 319, 802, 808, 883, 883-1;
* * * * *
Section 4.92 also issued under 28 U.S.C. 2461 note; 46 U.S.C.
App. 316(a);
* * * * *
2. Section 4.80 is amended by revising paragraph (b)(2) to read as
follows:
Sec. 4.80 Vessels entitled to engage in coastwise trade.
* * * * *
(b) Penalties for violating coastwise laws. * * *
(2) The penalty imposed for the unlawful transportation of
passengers between coastwise points is $300 for each passenger so
transported and landed (46 U.S.C. App. 289, as adjusted by the Federal
Civil Penalties Inflation Adjustment Act of 1990).
* * * * *
3. Section 4.92 is amended by revising its second sentence to read
as follows:
Sec. 4.92 Towing.
* * * The penalties for violation of this provision are a fine of
from $350 to $1100 against the owner or master of the towing vessel and
a further penalty against the towing vessel of $60 per ton of the towed
vessel (46 U.S.C. App. 316(a), as adjusted by the Federal Civil
Penalties Inflation Adjustment Act of 1990).
Robert C. Bonner,
Commissioner of Customs.
Approved: February 25, 2003.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 03-6754 Filed 3-20-03; 8:45 am]
BILLING CODE 4820-02-P