[Federal Register Volume 74, Number 229 (Tuesday, December 1, 2009)]
[Proposed Rules]
[Pages 62715-62716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-28674]
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DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
19 CFR Part 101
[Docket No. USCBP-2009-0035]
RIN 1651-AA79
Further Consolidation of CBP Drawback Centers
AGENCY: Customs and Border Protection, DHS.
ACTION: Notice of proposed rulemaking; solicitation of comments.
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SUMMARY: This document proposes to amend the U.S. Customs and Border
Protection (CBP) regulations to reflect a planned closing of the CBP
drawback center at the Port of Los Angeles-Long Beach (``Los
Angeles''), California. CBP believes that the further consolidation in
the number of drawback processing centers from five to four is
necessary because of decreases in claim filings and drawback claim
values at the Los Angeles center. This proposed closure of this
drawback center is intended to conserve resources, increase efficiency,
exercise fiscal responsibility, and promote greater uniformity in the
processing of drawback claims.
DATES: Written comments must be received on or before December 31,
2009.
ADDRESSES: You may submit comments, identified by docket number, by one
of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments via Docket No. USCBP
2009-0035.
Mail: Trade and Commercial Regulations Branch, Regulations
and Rulings, U.S. Customs and Border Protection, 799 9th Street, NW.
(Mint Annex), Washington, DC 20229-1179.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to http://www.regulations.gov, including any
personal information provided. For detailed instructions on submitting
comments and additional information on the rulemaking process, see the
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov. Submitted comments
may also be inspected during regular business days between the hours of
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch,
Regulations and Rulings, Office of International Trade, U.S. Customs
and Border Protection, 799 9th Street, NW., 5th Floor, Washington, DC
Arrangements to inspect submitted comments should be made in advance by
calling Joseph Clark at (202) 325-0118.
FOR FURTHER INFORMATION CONTACT: Christine Kegley, Import Operations
Branch, Office of Field Operations, Customs and Border Protection,
(202) 344-2319.
SUPPLEMENTARY INFORMATION:
Public Participation
Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of this
proposed rule. U.S. Customs and Border Protection (CBP) also invites
comments that relate to the economic, environmental, or federalism
effects that might result from this proposed rule. Comments that will
provide the most assistance to CBP in developing these procedures will
reference a specific portion of the proposed rule, explain the reason
for any recommended change, and include data, information, or authority
that supports such recommended change. See ADDRESSES above for
information on how to submit comments.
Background
To conserve resources, increase efficiency, exercise fiscal
responsibility, and promote greater uniformity in the processing of
drawback claims, U.S. Customs Service (now CBP) published on January
24, 2003, Treasury Decision (T.D.) 03-05 in the Federal Register (68 FR
3381), which consolidated the drawback centers from eight to the
current five by closing the centers located in Miami, Florida; New
Orleans, Louisiana; and Boston, Massachusetts and redirecting that all
claims be filed in the remaining five centers located in Chicago,
Illinois; Houston, Texas; New York, New York; Los Angeles-Long Beach
(``Los Angeles''), California; and San Francisco, California.
Additionally, T.D. 03-05 noted that the agency would re-evaluate
further consolidations as needed. In 2008, CBP further evaluated the
number of drawback claims processed at its remaining drawback centers.
Based on this evaluation, CBP proposes to further consolidate the
drawback centers by closing the Los Angeles, California Drawback Center
to achieve its goal of four drawback centers
[[Page 62716]]
to cover its key geographical areas of North, South, East, and West.
On May 27, 2008 and April 29, 2009, in accordance with 19 U.S.C.
2075(g)(2)(C), the Homeland Security Act of 2002 (6 U.S.C. 217(b)(2)),
and the SAFE Port Act of 2006 (6 U.S.C. 115(D)), CBP notified the House
Committee on Ways & Means, the Senate Committee on Finance, and House
Committee on Homeland Security of its intent to close the Los Angeles
Drawback Center. The Congressional notification period expired July 27,
2009, and CBP did not receive from Congress any objections to the
proposed closing of the Los Angeles Drawback Center. Out of the
remaining five drawback centers, Los Angeles receives and processes the
fewest claims. Drawback statistics from fiscal years 2006, 2007, and
2008 reveal that only 8.4, 9.01, and 7.49 percent of all claims were
filed in Los Angeles. Moreover, the claims paid out by the Los Angeles
center during those years represented only 2.6, 2.42, and 3.15 percent
of all drawback claims paid nationally. Because of the decrease in the
number of drawback claims filed and processed at the Los Angeles
Drawback Center since 2003 and the small number of claims filed overall
in the Los Angeles center, CBP is proposing to close this drawback
center, thus leaving four centers located in its key geographical areas
of Chicago, Houston, New York, and San Francisco. CBP believes that
closing the Los Angeles Drawback Center is required in order to attain
CBP's original goals of conserving resources, increasing efficiency,
exercising fiscal responsibility, and promoting greater uniformity in
the processing of drawback claims.
If this proposal is adopted, then future claims will be required to
be sent to one of the four remaining drawback centers located in
Chicago, Houston, New York, or San Francisco. All remaining claims that
were filed at the Los Angeles Drawback Center prior to closure that
have not been liquidated and still require CBP review will be forwarded
to the San Francisco Drawback Center for final processing.
In order to file a drawback claim at one of the four remaining
centers, persons must ensure that all license/permit and bond
requirements are met in accordance with the regulations. See 19 CFR
Parts 111 and 113 of the CBP regulations.
Explanation of Amendment
Section 101.3(b)(1) of the CBP regulations lists all the CBP ports
of entry. Five ports are denoted with a ``plus'' sign that designates
their status as a ``Drawback unit/office.'' This document proposes to
amend Sec. 101.3(b)(1) to remove the ``plus'' sign in Sec.
101.3(b)(1) next to the port listing for Los Angeles-Long Beach.
Inapplicability of the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
federal agencies to examine the impact a rule would have on small
entities. A small entity may be a small business (defined as any
independently owned and operated business not dominant in its field
that qualifies as a small business per the Small Business Act); a small
not-for-profit organization; or a small governmental jurisdiction
(locality with fewer than 50,000 people).
Although this document is being issued with notice for public
comment, it is noted that this proposal, which relates to agency
management and organization, does not directly regulate small entities
and is not subject to the notice and public procedure requirements of 5
U.S.C. 553. The proposed change is part of CBP's continuing program to
conserve resources, increase efficiency, and exercise fiscal
responsibility, and to provide better service to importers and the
general public.
Because this proposal does not directly regulate small entities and
because CBP estimates that virtually all transactions are accomplished
through either electronic or mailed submissions, and any follow-up is
handled by telephone, fax and/or email, the physical location of a
drawback center is largely irrelevant to the process. Accordingly, CBP
does not believe that this rule will have a significant economic impact
on a substantial number of small entities. However, CBP welcomes
comments on this assumption. If we do not receive any comments to the
contrary, we may certify in the final rule that this rule will not have
a significant economic impact on a substantial number of small
entities.
Executive Order 12866
This proposed rule does not meet the criteria to be considered an
economically ``significant regulatory action'' under Executive Order
12866 because it will not result in the expenditure of over $100
million in any one year. The Office of Management and Budget (OMB) has
not reviewed this proposed rule under that Order.
As stated previously, CBP estimates that virtually all of follow-up
transactions are through fax, email, or telephone; it is a very rare
occasion for any member of the public to visit a drawback center. Thus,
CBP anticipates that this rule will have de minimus costs to the public
as a result of the further consolidation of drawback centers.
Signing Authority
This document is being issued in accordance with 19 CFR 0.2(a),
which provides that the authority of the Secretary of the Treasury with
respect to CBP regulations that are not related to customs revenue
functions was transferred to the Secretary of Homeland Security
pursuant to Sec. 403(l) of the Homeland Security Act of 2002.
Accordingly, this notice of proposed rulemaking to amend such
regulations may be signed by the Secretary of Homeland Security (or her
delegate).
List of Subjects in 19 CFR Part 101
Customs duties and inspection, Customs ports of entry.
Proposed Amendment to the Regulations
For the reasons set forth above, CBP proposes to amend part 101 of
the CBP regulations (19 CFR Part 101) as follows:
PART 101--GENERAL PROVISIONS
1. The general authority citation for part 101 continues to read as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note
3(i), Harmonized Tariff Schedule of the United States), 1623, 1624,
1646a.
Section 101.3 and 101.4 also issued under 19 U.S.C. 1 and 58b.
* * * * *
Sec. 101.3--[Amended].
2. In Sec. 101.3, the table in paragraph (b)(1) is amended by
removing the plus sign in the ``Ports of entry'' column before the
column listing for ``Los Angeles-Long Beach'' under the state of
California.
Dated: November 25, 2009.
Jayson P. Ahern,
Acting Commissioner, U.S. Customs and Border Protection.
[FR Doc. E9-28674 Filed 11-30-09; 8:45 am]
BILLING CODE 9111-14-P