[Federal Register: June 7, 2005 (Volume 70, Number 108)]
[Proposed Rules]
[Page 33046]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07jn05-20]
[[Page 33046]]
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DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Part 146
RIN 1505-AB27
Expanded Weekly Entry Procedure for Foreign Trade Zones
AGENCY: Customs and Border Protection, Homeland Security; Treasury.
ACTION: Withdrawal of notice of proposed rulemaking.
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SUMMARY: This document withdraws a notice of proposed rulemaking
published in the Federal Register by Customs and Border Protection
(CBP) on July 25, 2002, which proposed to amend the CBP Regulations in
accordance with the Trade and Development Act of 2000 to expand the
weekly entry procedures for foreign trade zones. Public comment on the
proposed rulemaking was solicited. Commenters uniformly expressed
concern that the proposed rule limited weekly entry procedures to
consumption entries, and that amendments to the regulations were
unnecessary because the law was self-effectuating. After careful
consideration, CBP has decided to withdraw the proposed rulemaking
pending assessment of a more comprehensive regulatory scheme for weekly
entry procedures from foreign trade zones.
DATES: The effective date of this withdrawal is June 7, 2005.
FOR FURTHER INFORMATION CONTACT: William G. Rosoff, Chief, Duty and
Refund Determination Branch, Office of Regulations and Rulings, Customs
and Border Protection, Tel. (202) 572-8807.
SUPPLEMENTARY INFORMATION:
Background
Prior NPRM
On July 25, 2002, Customs and Border Protection (CBP) published a
notice of proposed rulemaking (NPRM) in the Federal Register (67 FR
48594) proposing changes to part 146 of the CBP Regulations (19 CFR
part 146). Part 146 pertains to the documentation and recordkeeping
requirements governing, among other things, the admission of
merchandise into a foreign trade zone, its manipulation, manufacture,
storage, destruction, or exhibition while in the zone, and its entry or
removal from the zone. The proposed changes were intended to implement
amendments to that part's underlying statutory authority (19 U.S.C.
1484) as effected by section 410 of the Trade and Development Act of
2000 (the ``Act''), (Pub. L. 106-200, 114 Stat. 251).
Amendments to 19 U.S.C. 1484 Effected by the Act
Section 484 of the Tariff Act of 1930, as amended (19 U.S.C. 1484),
sets forth the procedures generally governing the entry of imported
merchandise for customs purposes.
Section 410 of the Act amended 19 U.S.C. 1484 by adding a new
paragraph (i) that provided for an expanded weekly entry procedure for
foreign trade zones under limited circumstances. Specifically, section
1484(i):
Expanded the weekly entry system beyond its previous
coverage to allow all merchandise (other than merchandise the entry of
which is prohibited by law or for which the filing of an entry summary
is required before the merchandise is released from customs custody)
withdrawn from a foreign trade zone during any 7-day period, to be the
subject of a single estimated entry or release.
Provided that merchandise falling within this expanded
procedure is eligible for treatment as a single estimated entry or
release of merchandise for purposes of the merchandise processing fee
that CBP assesses on importers in order to offset administrative costs
incurred in processing imported merchandise that is formally entered or
released. See 19 U.S.C. 58c(a)(9)(A).
Authorized the Secretary of the Treasury to require that
foreign trade zone operators or users employ a CBP-approved electronic
data interchange system to file entries and pay applicable duties,
fees, and taxes with respect to the entries.
Proposed Conforming Amendments to Sec. 146.63(c) of the CBP
Regulations
Section 146.63 of the CBP Regulations (19 CFR 146.63) sets forth
the procedures applicable to consumption entries from a foreign trade
zone. Section 146.63(c) pertains to weekly consumption entries, and is
limited to merchandise that is manufactured or otherwise changed in a
zone within 24 hours of physical transfer from the zone for
consumption.
In the July 25, 2002, Federal Register document, CBP proposed
amendments to Sec. 146.63(c) to reflect the terms of newly amended 19
U.S.C. 1484(i). In this regard, it was proposed to amend Sec.
146.63(c) to expand the weekly entry procedures applicable to foreign
trade zones to include merchandise involved in activities other than
exclusively assembly-line type production operations. Additionally,
pursuant to 19 U.S.C. 1484 (i)(2)(A)(i) and (ii), it was proposed that
all weekly entry procedures covering estimated removals of merchandise
from a foreign trade zone for any consecutive 7-day period, and the
associated entry summaries, would have to be filed exclusively through
the Automated Broker Interface with duties, fees and taxes scheduled
for payment through the Automated Clearinghouse. The proposed
rulemaking also provided that the estimated weekly entry or release
would be treated as a single entry or release for purposes of assessing
merchandise processing fees under 19 U.S.C. 58c(a)(9)(A).
Discussion of Comments
Fifty-seven comments were received from Foreign Trade Zone users,
operators, municipalities and brokers in response to the solicitation
of comments. All were critical of the proposed rule. Most commenters
objected to the issuance of proposed regulations because, in their
view, the legislation was self-implementing and no regulations were
necessary to give the law effect. The commenters were also uniformly
critical of the proposed rule's limitation to consumption entries, and
expressed the view that the Act was intended to permit the use of
weekly entry procedures for other types of entries (i.e., zone-to-zone
transfers, transfer for transportation and transportation for
exportation).
Withdrawal of Proposal
In view of the comments received, and following further
consideration of the matter, CBP has determined to withdraw the notice
of proposed rulemaking that was published in the Federal Register (67
FR 48594) on July 25, 2002. CBP will continue to assess the feasibility
of a more comprehensive regulatory scheme for zone removals in
cooperation with interested members of the public.
Robert C. Bonner,
Commissioner, Bureau of Customs and Border Protection.
Approved: June 2, 2005.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 05-11261 Filed 6-6-05; 8:45 am]
BILLING CODE 4820-02-P