25596 Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Rules and Regulations 

Dam to Lake Michigan including Des 

Plaines River, Chicago Sanitary and 

Ship Canal, Chicago River, CalumetSaganashkee Channel, Chicago, IL, 

listed in 33 CFR 165.930. Specifically, 

the Coast Guard will enforce this safety 

zone between Mile Marker 296.1 to Mile 

Marker 296.7 on all waters of the 

Chicago Sanitary and Ship Canal. 

Enforcement will occur from 7:00 a.m. 

until 11:00 a.m. and 1:00 p.m. until 5:00 

p.m. on: 

(1) On June 14–15, 2012 

(2) On June 21–22, 2012 

This enforcement action is necessary 

because the Captain of the Port, Sector 

Lake Michigan has determined that the 

U.S. Army Corps of Engineers’ postmaintenance testing of Barriers IIA and 

IIB pose risks to life and property. The 

combination of vessel traffic and the 

testing operations in the water makes 

the controlling of vessels through the 

impacted portion of the Chicago 

Sanitary and Ship Canal necessary to 

prevent injury and property loss. 

In accordance with the general 

regulations in § 165.23 of this part, entry 

into, transiting, mooring, laying up or 

anchoring within the enforced area of 

this safety zone by any person or vessel 

is prohibited unless authorized by the 

Captain of the Port, Sector Lake 

Michigan, or his or her designated 

representative. 

This notice is issued under authority 

of 33 CFR 165.930 and 5 U.S.C. 552(a). 

In addition to this notice in the Federal 

Register, the Captain of the Port, Sector 

Lake Michigan, will also provide notice 

through other means, which may 

include, but are not limited to, 

Broadcast Notice to Mariners, Local 

Notice to Mariners, local news media, 

distribution in leaflet form, and onscene oral notice. Additionally, the 

Captain of the Port, Sector Lake 

Michigan, may notify representatives 

from the maritime industry through 

telephonic and email notifications. 

Dated: April 23, 2012. 

M.W. Sibley, 

Captain, U.S. Coast Guard, Captain of the 

Port, Sector Lake Michigan. 

[FR Doc. 2012–10479 Filed 4–30–12; 8:45 am] 

BILLING CODE 9110–04–P 

POSTAL SERVICE 

39 CFR Part 233 

Inspection Service Authority; Seizure 

and Forfeiture 

AGENCY: Postal Service TM. 

ACTION: Final rule. 

SUMMARY: The Postal Service is revising 

its regulations with regard to forfeiture 

authority and proceedings. These new 

provisions implement specific 

requirements in compliance with the 

Civil Asset Forfeiture Reform Act 

(CAFRA) of 2000. 

DATES: Effective date: May 31, 2012. 

FOR FURTHER INFORMATION CONTACT: 

R. Emmett Mattes III, Chief Counsel, 

U.S. Postal Inspection Service, 202– 

268–7732. 

SUPPLEMENTARY INFORMATION: On 

February 27, 2012, the Postal Service 

published with a request for comments 

a proposed revision of its regulations 

with regard to forfeiture authority and 

proceedings (77 FR 11437–52). As 

explained in that notice, the proposed 

revision was intended to implement 

specific requirements in compliance 

with the Civil Asset Forfeiture Reform 

Act (CAFRA) of 2000, consistent with 

the following goals: 

(1) Consolidate the Postal Service’s 

rules and regulations regarding the 

seizure and forfeiture of property from 

four sections into three, and include 

provisions governing remission or 

mitigation of administrative, civil, and 

criminal forfeitures. 

(2) Identify the scope of authority 

available to the Postal Service to seize 

property for forfeiture, update 

definitions, and provide procedures 

governing practical issues regarding the 

seizure, custody, inventory, appraisal, 

settlement, and release of property 

subject to forfeiture. 

(3) Conform the seizure and forfeiture 

regulations of the Postal Service to 

address procedural changes necessitated 

by CAFRA, and incorporate CAFRA’s 

innocent owner defense into the 

remission regulations. 

(4) Update the regulations to conform 

with other authorities and current 

forfeiture practice. 

(5) Modify the procedures governing 

petitions for remission or mitigation of 

forfeiture, clarify the existing 

regulations pertaining to victims, and 

make remission available to third 

parties who reimburse victims under an 

indemnification agreement. 

No comments were received in 

response to the publication of the 

proposed rule, and the Postal Service 

has accordingly determined to adopt the 

proposed revision to Part 233 without 

change. 

List of Subjects in 39 CFR Part 233 

Administrative practice and 

procedure, Crime, Law enforcement, 

Penalties, Privacy. 

Accordingly, for the reasons stated, 

the Postal Service amends 39 CFR Part 

233 as follows: 

PART 233—INSPECTION SERVICE 

AUTHORITY 

■ 1. The authority citation for 39 CFR 

part 233 is revised to read as follows: 

Authority: 39 U.S.C. 101, 102, 202, 204, 

401, 402, 403, 404, 406, 410, 411, 1003, 

3005(e)(1); 12 U.S.C. 3401–3422; 18 U.S.C. 

981, 983, 1956, 1957, 2254, 3061; 21 U.S.C. 

881; Omnibus Budget Reconciliation Act of 

1996, sec. 662 (Pub. L. 104–208). 

■ 2. Section 233.7 is revised to read as 

follows: 

§ 233.7 Forfeiture authority and 

procedures. 

(a) Scope of regulations. (1) The 

regulations in this section apply to all 

forfeitures administered by the United 

States Postal Service with the exception 

of seizures and forfeitures under the 

statutes listed in 18 U.S.C. 983(i). The 

authority to conduct administrative 

forfeitures derives from the procedural 

provisions of the Customs laws (19 

U.S.C. 1602–1618) where those 

provisions are incorporated by reference 

in the substantive forfeiture statutes. 

(2) The regulations in this section will 

apply to all forfeiture actions 

commenced on or after May 31, 2012. 

(b) Designation of officials having 

administrative forfeiture authority. (1) 

Administrative forfeiture authority. The 

Chief Postal Inspector is authorized to 

conduct administrative forfeitures under 

the statutes identified in paragraph 

(b)(2) of this section, following, where 

applicable, the procedures provided by 

the customs laws of the United States 

(19 U.S.C. 1602–1618) and to pay valid 

liens and mortgages against property 

that has been so forfeited. 

(2) Authority of the Chief Postal 

Inspector. The Chief Postal Inspector is 

authorized to perform all duties and 

responsibilities necessary on behalf of 

the Postal Service and the Office of 

Inspector General to enforce 18 U.S.C. 

981, 983, 2254; 21 U.S.C. 863(c), 881; 

and 31 U.S.C. 5317; following, where 

applicable, the procedures provided by 

the Customs laws of the United States 

(19 U.S.C. 1602–1618), and to pay valid 

liens and mortgages against property 

that has been so forfeited. The Chief 

Postal Inspector is authorized to 

delegate all or any part of this authority 

to Deputy Chief Inspectors, Inspectors 

in Charge, and Inspectors of the Postal 

Inspection Service, and to issue such 

instructions as may be necessary to 

carry out this authority. 

(3) State adoption. The seizure of 

property by a state or local law 


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enforcement agency or other entity or 

individual may be adopted for forfeiture 

by the Postal Inspection Service, as 

appropriate under its seizure authority 

pursuant to paragraphs (b)(1) and (2) of 

this section. 

(c) Definitions. As used in this 

section, the following terms shall have 

the meanings specified: 

(1) Administrative forfeiture means 

the process by which property may be 

forfeited by the Postal Inspection 

Service rather than through judicial 

proceedings. Administrative forfeiture 

has the same meaning as nonjudicial 

forfeiture, as that term is used in 18 

U.S.C. 983. 

(2) Appraised value means the 

estimated market value of property at 

the time and place of seizure if such or 

similar property was freely offered for 

sale between a willing seller and a 

willing buyer. 

(3) Appropriate official means the 

Chief Postal Inspector or that person’s 

designee, or where the term 

‘‘appropriate official’’ means the office 

or official identified in the notice 

published or personal written notice in 

accordance with paragraph (j) of this 

section. 

(4) Contraband means: 

(i) Any controlled substance, 

hazardous raw material, equipment or 

container, plants, or other property 

subject to summary forfeiture pursuant 

to sections 511(f) or (g) of the Controlled 

Substances Act (21 U.S.C. 881(f) or (g)); 

or 

(ii) Any controlled substance 

imported into the United States, or 

exported out of the United States, in 

violation of law. 

(5) Civil forfeiture proceeding means a 

civil judicial forfeiture action as that 

term is used in 18 U.S.C. 983. 

(6) Domestic value means the same as 

the term appraised value as defined in 

paragraph (c)(2) of this section. 

(7) Expense means all costs incurred 

to detain, inventory, safeguard, 

maintain, advertise, sell, or dispose of 

property under seizure, detained, or 

forfeited pursuant to any law. 

(8) File or filed has the following 

meanings: 

(i) A claim or any other document 

submitted in an administrative 

forfeiture proceeding is not deemed 

filed until actually received by the 

appropriate official identified in the 

personal written notice and the 

published notice specified in paragraph 

(i) of this section. A claim is not 

considered filed if it is received by any 

other office or official. In addition, a 

claim in an administrative forfeiture 

proceeding is not considered filed if 

received only by an electronic or 

facsimile transmission. 

(ii) For purposes of computing the 

start of the 90-day period set forth in 18 

U.S.C. 983(a)(3), an administrative 

forfeiture claim is filed on the date 

when the claim is received by the 

designated official, even if the claim is 

received from an incarcerated pro se 

prisoner. 

(9) Interested party means any person 

who reasonably appears to have an 

interest in the property, based on the 

facts known to the Postal Inspection 

Service before a declaration of forfeiture 

is entered. 

(10) Judicial forfeiture means either a 

civil or a criminal proceeding in a 

United States District Court that may 

result in a final judgment and order of 

forfeiture. 

(11) Mail includes regular or certified 

U.S. mail, and mail and package 

transportation and delivery services 

provided by other private or commercial 

interstate carriers. 

(12) Nonjudicial forfeiture has the 

same meaning as administrative 

forfeiture. See paragraph (b)(1) of this 

section. 

(13) Person means an individual, 

partnership, corporation, joint business 

enterprise, estate, or other legal entity 

capable of owning property. 

(14) Property subject to administrative 

forfeiture means any personal property 

of the kinds described in 19 U.S.C. 

1607(a)(1)(4). 

(15) Property subject to forfeiture 

refers to all property that Federal law 

authorizes to be forfeited to the United 

States of America in any administrative 

forfeiture proceeding, in any civil 

judicial forfeiture proceeding, or in any 

criminal forfeiture proceeding. 

(d) Seizing property subject to 

forfeiture—(1) Authority to seize 

property. Postal Inspectors may seize 

assets under any Federal statute over 

which the Postal Inspection Service has 

investigative or forfeiture jurisdiction. 

(2) Turnover of assets seized by state 

and local agencies. (i) Property that is 

seized by a state or local law 

enforcement agency and transferred to 

the Postal Inspection Service for 

administrative or civil forfeiture may be 

adopted for administrative forfeiture 

without the issuance of any Federal 

seizure warrant or other Federal judicial 

process. 

(ii) Where a state or local law 

enforcement agency maintains custody 

of property pursuant to process issued 

by a state or local judicial authority, and 

notifies the Postal Inspection Service of 

the impending release of such property, 

the Postal Inspection Service may seek 

and obtain a Federal seizure warrant in 

anticipation of a state or local judicial 

authority releasing the asset from state 

process for purposes of Federal seizure, 

and may execute such seizure warrant 

when the state or local law enforcement 

agency releases the property as allowed 

or directed by its judicial authority. 

(e) Inventory. The Postal Inspection 

Service shall prepare an inventory of 

any seized property. 

(f) Custody. (1) All property seized by 

Postal Inspectors for forfeiture shall be 

delivered to the custody of the U.S. 

Marshals Service, or custodian 

approved by the U.S. Marshals Service, 

as soon as possible after seizure, unless 

it is retained as evidence. 

(2) Seized U.S. currency (and to the 

extent practicable seized foreign 

currency and negotiable instruments) 

must be deposited promptly in the 

Holding Account—Seizure and 

Forfeiture under the control of the 

Postal Inspection Service pending 

forfeiture. Provisional exceptions to this 

requirement may be granted as follows: 

(i) If the seized currency has a value 

less than $5,000, and a supervisory 

official within the U.S. Attorney’s Office 

determines in writing that the currency 

is reasonably likely to serve a 

significant, independent, tangible, 

evidentiary purpose, or that retention is 

necessary while the potential 

evidentiary significance of the currency 

is being determined by scientific testing 

or otherwise, or 

(ii) The seized currency has a value 

greater than $5,000, and the Chief, Asset 

Forfeiture Money Laundering Section 

(AFMLS) determines in writing that the 

currency is reasonably likely to serve a 

significant, independent, tangible, 

evidentiary purpose, or that retention is 

necessary while the potential 

evidentiary significance of the currency 

is being determined by scientific testing 

or otherwise. 

(3) Seized currency has a significant 

independent, evidentiary purpose as 

those terms are used in paragraphs 

(f)(2)(i) and (f)(2)(ii) of this section if, for 

example, it bears fingerprint evidence, 

is packaged in an incriminating fashion, 

or contains a traceable amount of 

narcotic residue or some other 

substance of evidentiary significance. If 

only a portion of the seized currency 

has evidentiary value, only that portion 

should be retained; the balance should 

be deposited. 

(g) Appraisal. The Postal Inspection 

Service shall determine the domestic 

value of the seized property as soon as 

practicable following seizure. 

(h) Release before claim. (1) After 

seizure for forfeiture and prior to the 

filing of any claim, the appropriate 


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official is authorized to release property 

seized for forfeiture provided: 

(i) The property is not contraband, 

evidence of a violation of law, or any 

property, the possession of which by the 

claimant, petitioner, or the person from 

whom it was seized is prohibited by 

state or Federal law, and does not have 

a design or other characteristic that 

particularly suits it for use in illegal 

activities; and 

(ii) The appropriate official 

determines within 10 days of seizure 

that there is an innocent party with the 

right to immediate possession of the 

property or that the release would be in 

the best interest of justice or the 

Government. 

(2) Further, at any time after seizure 

and before any claim is filed, such 

seized property may be released if the 

appropriate official determines that 

there is an innocent party with the right 

to immediate possession of the property 

or that the release would be in the best 

interest of justice or the Government. 

(i) Commencing an administrative 

forfeiture. An administrative forfeiture 

proceeding begins when notice is first 

published in accordance with paragraph 

233.7(i)(1), or the first personal written 

notice is sent in accordance with 

paragraph 233.7(i)(2), whichever occurs 

first. 

(j) Notice of administrative 

forfeiture—(1) Notice by publication. 

(i) After seizing property subject to 

administrative forfeiture, the 

Appropriate Official shall select from 

the following options a means of 

publication reasonably calculated to 

notify potential claimants of the seizure 

and intent to forfeit and sell or 

otherwise dispose of the property: 

(A) Publication once each week for at 

least three successive weeks in a 

newspaper generally circulated in the 

judicial district where the property was 

seized; or 

(B) Posting a notice on an official 

Government Internet site for at least 30 

consecutive days. 

(ii) The published notice shall: 

(A) Describe the seized property; 

(B) State the date, statutory basis, and 

place of seizure; 

(C) State the deadline for filing a 

claim when personal written notice has 

not been received, at least 30 days after 

the date of final publication of the 

notice of seizure; and 

(D) State the identity of the 

appropriate official of the Postal 

Inspection Service and address where 

the claim must be filed. 

(2) Personal written notice—(i) 

Manner of providing notice. After 

seizing property subject to 

administrative forfeiture, the Postal 

Inspection Service, in addition to 

publishing notice, shall send personal 

written notice of the seizure to each 

interested party in a manner reasonably 

calculated to reach such parties. 

(ii) Content of personal written notice. 

The personal written notice sent by the 

Postal Inspection Service shall: 

(A) State the date when the personal 

written notice is sent; 

(B) State the deadline for filing a 

claim, at least 35 days after the personal 

written notice is sent; 

(C) State the date, statutory basis, and 

place of seizure; 

(D) State the identity of the 

appropriate official of the Postal 

Inspection Service and the address 

where the claim must be filed; and 

(E) Describe the seized property. 

(3) Timing of notice—(i) Date of 

personal notice. Personal written notice 

is sent on the date when the Postal 

Inspection Service causes it to be placed 

in the mail, or otherwise sent by means 

reasonably calculated to reach the 

interested party. The personal written 

notice required by paragraph (i)(2) of 

this section shall be sent as soon as 

practicable, and in no case more than 60 

days after the date of seizure (or 90 days 

after the date of seizure by a state or 

local law enforcement agency if the 

property was turned over to the Postal 

Inspection Service for the purpose of 

forfeiture under Federal law). 

(ii) Civil judicial forfeiture. If, before 

the time period for sending notice 

expires, the Government files a civil 

judicial forfeiture action against the 

seized property and provides notice of 

such action as required by law, personal 

notice of administrative forfeiture is not 

required under this paragraph. 

(iii) Criminal indictment. If, before the 

time period for sending notice under 

this paragraph expires, no civil judicial 

forfeiture action is filed, but a criminal 

indictment or information is obtained 

containing an allegation that the 

property is subject to forfeiture, the 

seizing agency shall either: 

(A) Send timely personal written 

notice and continue the administrative 

forfeiture proceeding; or 

(B) After consulting with the U.S. 

Attorney, terminate the administrative 

forfeiture proceeding and notify the 

custodian to return the property to the 

person having the right to immediate 

possession unless the U.S. Attorney 

takes steps necessary to maintain 

custody of the property as provided in 

the applicable criminal forfeiture 

statute. 

(4) Subsequent Federal seizure. If 

property is seized by a state or local law 

enforcement agency, but personal 

written notice is not sent to the person 

from whom the property is seized 

within the time period for providing 

notice under paragraph (j)(3)(i) of this 

section, then any administrative 

forfeiture proceeding against the 

property may commence if: 

(i) The property is subsequently 

seized or restrained by the Postal 

Inspection Service pursuant to a Federal 

seizure warrant or restraining order and 

the Postal Inspection Service sends 

notice as soon as practicable, and in no 

case more than 60 days after the date of 

the Federal seizure; or 

(ii) The owner of the property 

consents to forfeiture of the property. 

(5) Tolling. (i) In states or localities 

where orders are obtained from a state 

court authorizing the turnover of seized 

assets to the Postal Inspection Service, 

the period from the date an application 

or motion is presented to the state court 

for the turnover order through the date 

when such order is issued by the court 

shall not be included in the time period 

for providing notice under paragraph 

(j)(3)(i) of this section. 

(ii) If property is detained at an 

international border or port of entry for 

the purpose of examination, testing, 

inspection, obtaining documentation, or 

other investigation relating to the 

importation of the property into, or the 

exportation of the property from the 

United States, such period of detention 

shall not be included in the period 

described in paragraph (j)(3)(i) of this 

section. In such cases, the 60-day period 

shall begin to run when the period of 

detention ends, if a seizing agency 

seizes the property for the purpose of 

forfeiture to the United States. 

(6) Identity of interested party. If the 

Postal Inspection Service determines the 

identity or interest of an interested party 

after the seizure or adoption of the 

property, but before entering a 

declaration of forfeiture, the Postal 

Inspection Service shall send written 

notice to such interested party under 

paragraph 3(i) not later than 60 days 

after determining the identity of the 

interested party or the interested party’s 

interest. 

(7) Extending deadline for notice. The 

Chief Counsel for the Postal Inspection 

Service may extend the period for 

sending personal written notice under 

these regulations in a particular case for 

a period not to exceed 30 days (which 

period may not be further extended 

except by a court pursuant to 18 U.S.C. 

983(a)(1)(C), (D)), if the Chief Counsel 

for the Postal Inspection Service 

determines, and states in writing, that 

there is reason to believe that notice 

may have an adverse result, including: 

Endangering the life or physical safety 

of an individual; flight from 


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prosecution; destruction of or tampering 

with evidence; intimidation of potential 

witnesses; or otherwise seriously 

jeopardizing an investigation, or unduly 

delaying a trial. 

(8) Certification. The Chief Counsel 

for the Postal Inspection Service shall 

provide the written certification 

required under 18 U.S.C. 983(a)(1)(C) 

when the Government requests it and 

the conditions described in 18 U.S.C. 

983(a)(1)(D) are present. 

(k) Claims—(1) Filing. In order to 

contest the forfeiture of seized property 

in Federal court, any person asserting an 

interest in seized property subject to an 

administrative forfeiture proceeding 

under these regulations must file a 

claim with the appropriate official, after 

the commencement of the 

administrative forfeiture proceeding as 

defined in paragraph (h) of this section, 

and not later than the deadline set forth 

in a personal notice letter sent pursuant 

to paragraph (i)(2) of this section. If 

personal written notice is sent but not 

received, then the intended recipient 

must file a claim with the appropriate 

official not later than 30 days after the 

date of the final publication of the 

notice of seizure. 

(2) Contents of claim. A claim shall: 

(i) Identify the specific property being 

claimed; 

(ii) Identify the claimant and state the 

claimant’s interest in the property; and 

(iii) Be made under oath by the 

claimant, not counsel for the claimant, 

and recite that it is made under the 

penalty of perjury, consistent with the 

requirements of 28 U.S.C. 1746. An 

acknowledgement, attestation, or 

certification by a notary public alone is 

insufficient. 

(3) Availability of claim forms. The 

claim need not be made in any 

particular form. However, the Postal 

Inspection Service will make claim 

forms generally available on request. 

Such forms shall be written in easily 

understandable language. A request for 

a claim form does not extend the 

deadline for filing a claim. Any person 

may obtain a claim form by requesting 

one in writing from the appropriate 

official. 

(4) Cost bond not required. Any 

person may file a claim under paragraph 

233.7(k)(1) without posting bond, except 

in forfeitures under statutes listed in 18 

U.S.C. 983(i). 

(5) Referral of claim. Upon receipt of 

a claim that meets the requirements of 

paragraphs (k)(1) and (2) of this section, 

the Postal Inspection Service shall 

return the property or suspend the 

administrative forfeiture proceeding and 

promptly transmit the claim, together 

with a description of the property and 

a complete statement of the facts and 

circumstances surrounding the seizure, 

to the appropriate U.S. Attorney for 

commencement of judicial forfeiture 

proceedings. Upon making the 

determination that the seized property 

will be released, the Postal Inspection 

Service shall promptly notify the person 

with a right to immediate possession of 

the property, informing that person to 

contact the property custodian within a 

specified period for release of the 

property, and further informing that 

person that failure to contact the 

property custodian within the specified 

period for release of the property will 

result in abandonment of the property 

pursuant to applicable regulations. The 

Postal Inspection Service shall notify 

the property custodian of the identity of 

the person to whom the property should 

be released. The property custodian 

shall have the right to require 

presentation of proper identification 

and/or to take other steps to verify the 

identity of the person who seeks the 

release of property, or both. 

(6) Premature filing. If a claim is filed 

with the appropriate official after the 

seizure of the property, but before the 

commencement of the administrative 

forfeiture proceeding as defined in 

paragraph (i) of this section, the claim 

shall be deemed filed on the 30th day 

after the commencement of the 

administrative forfeiture proceeding. If 

such claim meets the requirements of 

paragraph (k)(2) of this section, the 

Postal Inspection Service shall suspend 

the administrative forfeiture 

proceedings and promptly transmit the 

claim, together with a description of the 

property and a complete statement of 

the facts and circumstances surrounding 

the seizure to the appropriate U.S. 

Attorney for commencement of judicial 

forfeiture proceedings. 

(7) Defective claims. If the Postal 

Inspection Service determines that an 

otherwise timely claim does not meet 

the requirements of paragraph (k)(2) of 

this section, the Postal Inspection 

Service may notify the claimant of this 

determination and allow the claimant a 

reasonable time to cure the defect(s) in 

the claim. If, within the time allowed by 

the Postal Inspection Service, the 

requirements of paragraph (k)(2) of this 

section are not met, the claim shall be 

void and the forfeiture proceedings shall 

proceed as if no claim had been 

submitted. If the claimant timely cures 

the deficiency, then the claim shall be 

deemed filed on the date when the 

appropriate official receives the cured 

claim. 

(l) Interplay of administrative and 

criminal judicial forfeiture proceedings. 

An administrative forfeiture proceeding 

pending against seized or restrained 

property does not bar the Government 

from alleging that the same property is 

forfeitable in a criminal case. 

Notwithstanding the fact that an 

allegation of forfeiture has been 

included in a criminal indictment or 

information, the property may be 

administratively forfeited in a parallel 

proceeding. 

(m) Requests for hardship release of 

seized property. (1) Under certain 

circumstances, a claimant may be 

entitled to immediate release of seized 

property on the basis of hardship. 

(2) Any person filing a request for 

hardship release must also file a claim 

to the seized property pursuant to 

paragraph (k) of this section and as 

defined in 18 U.S.C. 983(a). 

(3) The timely filing of a valid claim 

pursuant to paragraph (k) of this section 

does not entitle the claimant to 

possession of the seized property, but a 

claimant may request immediate release 

of the property while forfeiture is 

pending, based on hardship. 

(4) A claimant seeking release of 

property under 18 U.S.C. 983(f) and 

these regulations must file a written 

request with the appropriate official. 

The request must establish that: 

(i) The claimant has a possessory 

interest in the property; 

(ii) The claimant has sufficient ties to 

the community to provide assurance 

that the property will be available at the 

time of trial; 

(iii) The continued possession by the 

Government pending the final 

disposition of forfeiture proceedings 

will cause substantial hardship to the 

claimant, such as preventing the 

functioning of a business, preventing an 

individual from working, or leaving an 

individual homeless; 

(iv) The claimant’s likely hardship 

from the continued possession by the 

Government of the seized property 

outweighs the risk that the property will 

be destroyed, damaged, lost, concealed, 

or transferred if it is returned to the 

claimant during the pendency of the 

proceeding; and 

(v) The property is not: 

(A) Contraband, any property, the 

possession of which by the claimant, 

petitioner, or person from whom it was 

seized is prohibited by state or Federal 

law, currency, or other monetary 

instrument, or electronic funds unless 

such currency or other monetary 

instrument or electronic funds 

constitutes the assets of a legitimate 

business which has been seized; 

(B) Intended to be used as evidence of 

a violation of law; 


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(C) By reason of design or other 

characteristic, particularly suited for use 

in illegal activities; or 

(D) Likely to be used to commit 

additional criminal acts if returned to 

the claimant. 

(5) A hardship release request 

pursuant to this paragraph shall be 

deemed to have been made on the date 

when it is received by the appropriate 

official as defined in paragraph (c)(3) of 

this section, or the date the claim was 

deemed filed under paragraph (k) of this 

section. If the request is ruled on and 

denied by the appropriate official or the 

property has not been released within 

the 15-day time limit period, the 

claimant may file a petition in Federal 

district court pursuant to 18 U.S.C. 

983(f)(3). If a petition is filed in Federal 

district court, the claimant must send a 

copy of the petition to the appropriate 

official to whom the hardship petition 

was originally submitted and to the U.S. 

Attorney in the judicial district where 

the judicial petition was filed. 

(6) If a civil forfeiture complaint is 

filed on property and the claimant files 

a claim with the court pursuant to 18 

U.S.C. 983(a)(4)(A) and Rule G(5) of the 

Supplemental Rules for Certain 

Admiralty and Maritime Claims, a 

hardship petition may be submitted to 

the individual identified in the public 

or personal notice of the civil forfeiture 

action. 

(n) Disposition of property before 

forfeiture. (1) Whenever it appears to the 

Postal Inspection Service that any 

seized property is liable to perish or to 

waste, or to be greatly reduced in value 

during its detention for forfeiture, or 

that the expense of keeping the property 

is or will be disproportionate to its 

value, the Chief Counsel for the Postal 

Inspection Service may order 

destruction, sale, or other disposition of 

such property prior to forfeiture. In 

addition, the owner may obtain release 

of the property by posting a substitute 

monetary amount with the Postal 

Inspection Service to be held subject to 

forfeiture proceedings in place of the 

seized property to be released. Upon 

approval by the Chief Counsel for the 

Postal Inspection Service, the property 

will be released to the owner upon the 

payment of an amount equal to the 

Government appraised value of the 

property if the property is not evidence 

of a violation of law, is not contraband, 

and has no design or other 

characteristics that particularly suit it 

for use in illegal activities. This 

payment must be in the form of a money 

order, an official bank check, or a 

cashier’s check made payable to the 

Postal Inspection Service. A bond in the 

form of a cashier’s check or official bank 

check will be considered as paid once 

the check has been accepted for 

payment by the financial institution that 

issued the check. If a substitute amount 

is posted and the property is 

administratively forfeited, the Postal 

Inspection Service will forfeit the 

substitute amount in lieu of the 

property. The pre-forfeiture destruction, 

sale, or other disposition of seized 

property pursuant to this subsection 

shall not extinguish any person’s rights 

to the value of the property under 

applicable law. The authority vested in 

the Chief Counsel for the Postal 

Inspection Service under this subsection 

may not be delegated. 

(2) The Postal Inspection Service shall 

commence forfeiture proceedings, 

regardless of the disposition of the 

property under this paragraph. A person 

with an interest in the property that was 

destroyed or otherwise disposed of 

under this paragraph may file a claim to 

contest the forfeiture of the property or 

a petition for remission or mitigation of 

the forfeiture. No employee of the Postal 

Inspection Service shall be liable for the 

destruction or other disposition of 

property made pursuant to this 

paragraph. The destruction or other 

disposition of the property does not 

impair in rem jurisdiction. 

(o) Declaration of administrative 

forfeiture. If the Postal Inspection 

Service commences a timely proceeding 

against property subject to 

administrative forfeiture, and no valid 

and timely claim is filed, the 

appropriate official shall declare the 

property forfeited. The declaration of 

forfeiture shall have the same force and 

effect as a final decree and order of 

forfeiture in a Federal judicial forfeiture 

proceeding. 

(p) Return of property. (1) If, under 18 

U.S.C. 983(a)(3), the Postal Inspection 

Service is notified by the U.S. Attorney 

in charge of the matter that the 90-day 

deadline was not met, the Postal 

Inspection Service is required to release 

the seized property. Under this 

subsection, the Postal Inspection 

Service is not required to return 

property for which it has an 

independent basis for continued 

custody including, but not limited to, 

contraband or evidence of a violation of 

law. 

(2) Upon becoming aware that the 

seized property must be released, the 

Postal Inspection Service shall promptly 

notify the person with a right to 

immediate possession of the property, 

informing that person to contact the 

property custodian within a specified 

period for release of the property, and 

further informing that person that 

failure to contact the property custodian 

within the specified period for release of 

the property may result in the initiation 

of abandonment proceedings against the 

property pursuant to 39 CFR part 946. 

The property custodian will be notified 

of the identity of the person to whom 

the property should be released. 

(3) The property custodian shall have 

the right to require presentation of 

proper identification or to verify the 

identity of the person who seeks the 

release of property. 

(q) Disposition of forfeited property. 

(1) Whenever property is forfeited 

administratively, the Postal Inspection 

Service may: 

(i) Retain the property for official use; 

(ii) Transfer ownership of the 

property to any Federal, state or local 

law enforcement agency that 

participated in the investigation leading 

to the forfeiture; 

(iii) Sell any property that is not 

required to be destroyed by law and that 

is not harmful to the public; 

(iv) Destroy the property; or 

(v) Dispose of the property as 

otherwise permitted by law. 

(2) If the laws of a state in which an 

article of forfeited property is located 

prohibit the sale or possession of such 

property, or if the Postal Service and the 

Marshals Service are of the opinion that 

it would be more advantageous to sell 

the forfeited property in another district, 

the property may be moved to and sold 

in such other district. 

(r) Attorney fees and costs. The Postal 

Inspection Service is not liable for 

attorney fees or costs in any 

administrative forfeiture proceeding, 

including such proceedings in which a 

claim is filed, the matter is referred to 

the U.S. Attorney, and the U.S. Attorney 

declines to commence judicial forfeiture 

proceedings. 

■ 3. Section 233.8 is revised to read as 

follows: 

§ 233.8 Expedited forfeiture proceedings 

for property seizures based on violations 

involving the possession of personal use 

quantities of a controlled substance. 

(a) Purpose and scope. (1) The 

following definitions, regulations, and 

criteria are designed to establish and 

implement procedures required by 

section 6079 of the Anti-Drug Abuse Act 

of 1988, Public Law 100–690, 102 Stat. 

4181. They are intended to supplement 

existing law and procedures relative to 

the forfeiture of property under the 

identified statutory authority. These 

regulations do not affect the existing 

legal and equitable rights and remedies 

of those with an interest in property 

seized for forfeiture, nor do these 

provisions relieve interested parties 

from their existing obligations and 


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responsibilities in pursuing their 

interests through such courses of action. 

These regulations are intended to reflect 

the intent of Congress to minimize the 

adverse impact on those entitled to legal 

or equitable relief occasioned by the 

prolonged detention of property subject 

to forfeiture due to violations of law 

involving personal use quantities of 

controlled substances. The definition of 

personal use quantities of a controlled 

substance as contained herein is 

intended to distinguish between those 

small quantities, which are generally 

considered to be possessed for personal 

consumption and not for further 

distribution, and those larger quantities 

generally considered to be subject to 

further distribution. 

(2) In this regard, for violations 

involving the possession of personal use 

quantities of a controlled substance, 

section 6079(b)(2) requires either that 

administrative forfeiture be completed 

within 21 days of the seizure of the 

property, or alternatively, that 

procedures are established that provide 

a means by which an individual entitled 

to relief may initiate an expedited 

administrative review of the legal and 

factual basis of the seizure for forfeiture. 

Should an individual request relief 

pursuant to these regulations and be 

entitled to the return of the seized 

property, such property shall be 

returned immediately following that 

determination, but not later than 20 

days after filing of a petition for 

expedited release by an owner, and the 

administrative forfeiture process shall 

cease. Should the individual not be 

entitled to the return of the seized 

property, however, the administrative 

forfeiture of that property shall proceed. 

The owner may, in any event, obtain 

release of property pending the 

administrative forfeiture by submitting 

to the agency making the determination 

property sufficient to preserve the 

Government’s vested interest for 

purposes of the administrative 

forfeiture. 

(b) Definitions. As used in this 

section, the following terms shall have 

the meanings specified: 

(1) Commercial fishing industry vessel 

means a vessel that: 

(i) Commercially engages in the 

catching, taking, or harvesting of fish or 

an activity that can reasonably be 

expected to result in the catching, 

taking, or harvesting of fish; 

(ii) Commercially prepares fish or fish 

products other than by gutting, 

decapitating, gilling, skinning, 

shucking, icing, freezing, or brine 

chilling; or 

(iii) Commercially supplies, stores, 

refrigerates, or transports fish, fish 

products, or materials directly related to 

fishing or the preparation of fish to or 

from a fishing, fish processing, or fish 

tender vessel or fish processing facility. 

(2) Controlled substance has the 

meaning given in 21 U.S.C. 802(6). 

(3) Normal and customary manner 

means that inquiry suggested by 

particular facts and circumstances that 

would customarily be undertaken by a 

reasonably prudent individual in a like 

or similar situation. Actual knowledge 

of such facts and circumstances is 

unnecessary, and implied, imputed, or 

constructive knowledge is sufficient. An 

established norm, standard, or custom is 

persuasive but not conclusive or 

controlling in determining whether an 

owner acted in a normal and customary 

manner to ascertain how property 

would be used by another legally in 

possession of the property. The failure 

to act in a normal and customary 

manner as defined herein will result in 

the denial of a petition for expedited 

release of the property and is intended 

to have the desirable effect of inducing 

owners of the property to exercise 

greater care in transferring possession of 

their property. 

(4) Owner means one having a legal 

and possessory interest in the property 

seized for forfeiture. Even though one 

may hold primary and direct title to the 

property seized, such person may not 

have sufficient actual beneficial interest 

in the property to support a petition as 

owner if the facts indicate that another 

person had dominion and control over 

the property. 

(5) Personal use quantities means 

those amounts of controlled substances 

in possession in circumstances where 

there is no other evidence of an intent 

to distribute, or to facilitate the 

manufacturing, compounding, 

processing, delivering, importing, or 

exporting of any controlled substance. 

(i) Evidence that possession of 

quantities of a controlled substance is 

for other than personal use may include, 

for example: 

(A) Evidence, such as drug scales, 

drug distribution paraphernalia, drug 

records, drug packaging material, 

method of drug packaging, drug 

‘‘cutting’’ agents and other equipment, 

that indicates an intent to process, 

package, or distribute a controlled 

substance; 

(B) Information from reliable sources 

indicating possession of a controlled 

substance with intent to distribute; 

(C) The arrest or conviction record of 

the person or persons in actual or 

constructive possession of the 

controlled substance for offenses under 

Federal, state, or local law that indicates 

an intent to distribute a controlled 

substance; 

(D) Circumstances or reliable 

information indicating that the 

controlled substance is related to large 

amounts of cash or any amount of 

prerecorded Government funds; 

(E) Circumstances or reliable 

information indicating that the 

controlled substance is a sample 

intended for distribution in anticipation 

of a transaction involving large 

quantities, or is part of a larger delivery; 

(F) Statements by the possessor, or 

otherwise attributable to the possessor, 

including statements of conspirators, 

that indicate possession with intent to 

distribute; or 

(G) The fact that the controlled 

substance was recovered from 

sweepings. 

(ii) Possession of a controlled 

substance shall be presumed to be for 

personal use when there are no indicia 

of illicit drug trafficking or distribution 

—such as, but not limited to, the factors 

listed above—and the amounts do not 

exceed the following quantities: 

(A) One gram of a mixture or 

substance containing a detectable 

amount of heroin; 

(B) One gram of a mixture or 

substance containing a detectable 

amount of the following: 

(1) Coca leaves, except coca leaves 

and extracts of coca leaves from which 

cocaine, ecgonine, and derivations of 

ecgonine or their salts have been 

removed; 

(2) Cocaine, its salts, optical and 

geometric isomers, and salts of isomers; 

(3) Ecgonine, its derivatives, their 

salts, isomers, and salts of isomers; or 

(4) Any compound, mixture, or 

preparation that contains any quantity 

of any of the substances referred to in 

(ii)(B)(1) through (ii)(B)(3) of this 

definition; 

(C) One-tenth gram of a mixture or 

substance described in (ii)(B) of this 

definition that contains cocaine base; 

(D) One-tenth gram of a mixture or 

substance containing a detectable 

amount of phencyclidine (PCP); 

(E) Five hundred micrograms of 

lysergic acid diethylamide (LSD); 

(F) One ounce of a mixture or 

substance containing a detectable 

amount of marijuana; 

(G) One gram of methamphetamine, 

its salts, isomers, and salts of its 

isomers, or one gram of a mixture or 

substance containing a detectable 

amount of methamphetamine, its salts, 

isomers, or salts of its isomers. 

(iii) The possession of a narcotic, a 

depressant, a stimulant, a hallucinogen 

or a cannabis-controlled substance will 

be considered in excess of personal use 


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quantities if the dosage unit amount 

possessed provides the same or greater 

equivalent efficacy as described in 

(ii)(B) of this definition. 

(6) Property means property subject to 

forfeiture under 21 U.S.C. 881(a)(4), (6), 

or (7); 19 U.S.C. 1595a; or 49 U.S.C. 

80303. 

(7) Seizing agency means the Federal 

agency that has seized the property or 

adopted the seizure of another agency 

and has the responsibility for 

administratively forfeiting the property; 

(8) Statutory rights or defenses to the 

forfeiture means all legal and equitable 

rights and remedies available to a 

claimant of property seized for 

forfeiture. 

(c) Petition for expedited release in an 

administrative forfeiture proceeding. (1) 

Where property is seized for 

administrative forfeiture involving 

controlled substances in personal use 

quantities, the owner may petition the 

Postal Inspection Service for expedited 

release of the property. 

(2) Where property described in 

paragraph (c)(1) of this section is a 

commercial fishing industry vessel 

proceeding to or from a fishing area or 

intermediate port of call or actually 

engaged in fishing operations, which 

would be subject to seizure for 

administrative forfeiture for a violation 

of law involving controlled substances 

in personal use quantities, a summons 

to appear shall be issued in lieu of a 

physical seizure. The vessel shall report 

to the port designated in the summons. 

The Postal Inspection Service shall be 

authorized to effect administrative 

forfeiture as if the vessel had been 

physically seized. Upon answering the 

summons to appear on or prior to the 

last reporting date specified in the 

summons, the owner of the vessel may 

file a petition for expedited release 

pursuant to paragraph (c)(1) of this 

section, and the provisions of paragraph 

(c)(1) and other provisions in this 

section pertaining to a petition for 

expedited release shall apply as if the 

vessel had been physically seized. 

(3) The owner filing the petition for 

expedited release shall establish the 

following: 

(i) The owner has a valid, good faith 

interest in the seized property as owner 

or otherwise; 

(ii) The owner reasonably attempted 

to ascertain the use of the property in a 

normal and customary manner; and 

(iii) The owner did not know of or 

consent to the illegal use of the 

property, or in the event that the owner 

knew or should have known of the 

illegal use, the owner did what 

reasonably could be expected to prevent 

the violation. 

(4) In addition to those factors listed 

in paragraph (c)(3) of this section, if an 

owner can demonstrate that the owner 

has other statutory rights or defenses 

that would cause the owner to prevail 

on the issue of forfeiture, such factors 

shall also be considered in ruling on the 

petition for expedited release. 

(5) A petition for expedited release 

must be received by the Postal 

Inspection Service within 20 days from 

the date of the first publication of the 

notice of seizure in ordered to be 

considered by the Postal Inspection 

Service. The petition must be executed 

and sworn to by the owner, and both the 

envelope and the request must be 

clearly marked ‘‘PETITION FOR 

EXPEDITED RELEASE.’’ Such petition 

shall be filed with the appropriate office 

or official identified in the personal 

written notice and the publication 

notice. 

(6) The petition shall include the 

following: 

(i) A complete description of the 

property, including identification 

numbers, if any, and the date and place 

of seizure; 

(ii) The petitioner’s interest in the 

property, which shall be supported by 

title documentation, bills of sale, 

contracts, mortgages, or other 

satisfactory documentary evidence; and 

(iii) A statement of the facts and 

circumstances, to be established by 

satisfactory proof, relied upon by the 

petitioner to justify expedited release of 

the seized property. 

(d) Ruling on petition for expedited 

release in an administrative forfeiture 

proceeding. (1) If a final administrative 

determination of the case, without 

regard to the provisions of this section, 

is made within 21 days of the seizure, 

the Postal Inspection Service need take 

no further action under this section on 

a petition for expedited release received 

pursuant to paragraph (c) of this section. 

(2) If no such final administrative 

determination is made within 21 days of 

the seizure, the following procedure 

shall apply. The Postal Inspection 

Service shall, within 20 days after the 

receipt of the petition for expedited 

release, determine whether the petition 

filed by the owner has established the 

factors listed in paragraph (c)(3) of this 

section and: 

(i) If the Postal Inspection Service 

determines that those factors have been 

established, it shall terminate the 

administrative proceedings and return 

the property to the owner (or in the case 

of a commercial fishing industry vessel 

for which a summons has been issued 

shall dismiss the summons), except 

where it is evidence of a violation of 

law; or 

(ii) If the Postal Inspection Service 

determines that those factors have not 

been established, the agency shall 

proceed with the administrative 

forfeiture. 

(e) Posting of substitute monetary 

amount in an administrative forfeiture 

proceeding. (1) Where property is seized 

for administrative forfeiture involving 

controlled substances in personal use 

quantities, the owner may obtain release 

of the property by posting a substitute 

monetary amount with the Postal 

Inspection Service to be held subject to 

forfeiture proceedings in place of the 

seized property to be released. The 

property will be released to the owner 

upon the payment of an amount equal 

to the Government-appraised value of 

the property if the property is not 

evidence of a violation of law and has 

no design or other characteristics that 

particularly suit it for use in illegal 

activities. This payment must be in the 

form of a traveler’s check, a money 

order, a cashier’s check, or an 

irrevocable letter of credit made payable 

to the Postal Inspection Service. A bond 

in the form of a cashier’s check will be 

considered as paid once the check has 

been accepted for payment by the 

financial institution that issued the 

check. 

(2) If a substitute monetary amount is 

posted and the property is 

administratively forfeited, the Postal 

Inspection Service will forfeit the 

substitute amount in lieu of the 

property. 

(f) Notice provisions. At the time of 

seizure of property defined in paragraph 

(b)(6) of this section for violations 

involving the possession of personal use 

quantities of a controlled substance, the 

Postal Inspection Service must provide 

written notice to the possessor of the 

property specifying the procedures for 

filing of a petition for expedited release 

and for the posting of a substitute 

monetary bond as set forth in section 

6079 of the Anti-Drug Abuse Act of 

1988 and implementing regulations. 

■ 4. Section 233.9 is revised to read as 

follows: 

§ 233.9 Regulations governing remission 

or mitigation of administrative, civil, and 

criminal forfeitures. 

(a) Purpose, authority, and scope—(1) 

Purpose. This section sets forth the 

procedures for Postal Inspection Service 

officials to follow when considering 

remission or mitigation of 

administrative forfeitures under the 

jurisdiction of the Postal Inspection 

Service. The purpose of these 

regulations is to provide a basis for the 

partial or total remission of forfeiture for 

individuals who have an interest in the 


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forfeited property but who did not 

participate in, or have knowledge of, the 

conduct that resulted in the property 

being subject to forfeiture and, where 

required, took all reasonable steps under 

the circumstances to ensure that such 

property would not be used, acquired, 

or disposed of contrary to law. 

Additionally, the regulations provide for 

partial or total mitigation of the 

forfeiture and imposition of alternative 

conditions in appropriate 

circumstances. 

(2) Authority to grant remission and 

mitigation. (i) Remission and mitigation 

functions in administrative forfeitures 

under the jurisdiction of the Postal 

Inspection Service are performed by the 

Chief Counsel. 

(ii) Remission and mitigation 

functions in judicial cases are 

performed by the Criminal Division of 

the Department of Justice. Within the 

Criminal Division, authority to grant 

remission and mitigation is delegated to 

the Chief, Asset Forfeiture and Money 

Laundering Section. 

(iii) The powers and responsibilities 

delegated by the regulations in this 

section may be re-delegated to attorneys 

or managers working under the 

supervision of the Chief Counsel. 

(3) Scope. This section governs any 

petition for remission filed with the 

Postal Inspection Service and 

supersedes any Postal Service regulation 

governing petitions for remission, to the 

extent such regulation is inconsistent 

with this section. 

(4) Applicability. The time periods 

and internal requirements established in 

this section are designed to guide the 

orderly administration of the remission 

and mitigation process and are not 

intended to create rights or entitlements 

in favor of individuals seeking 

remission or mitigation. The regulations 

will apply to all forfeiture actions 

commenced on or after May 1, 2012. 

(b) Definitions. As used in this 

section: 

(1) Administrative forfeiture means 

the process by which property may be 

forfeited by the Postal Inspection 

Service rather than through judicial 

proceedings. Administrative forfeiture 

has the same meaning as ‘‘nonjudicial 

forfeiture,’’ as that term is used in 

18 U.S.C. 983. 

(2) Appraised value means the 

estimated market value of an asset at the 

time and place of seizure if such or 

similar property was freely offered for 

sale between a willing seller and a 

willing buyer. 

(3) Assets Forfeiture Fund means the 

Department of Justice Assets Forfeiture 

Fund, Department of the Treasury 

Assets Forfeiture Fund, or the Postal 

Service’s Assets Forfeiture Fund, 

depending upon the identity of the 

seizing agency. 

(4) Attorney General means the 

Attorney General of the United States or 

that official’s designee. 

(5) Beneficial owner means a person 

with actual use of, as well as an interest 

in, the property subject to forfeiture. 

(6) Chief, Asset Forfeiture and Money 

Laundering Section, and Chief, refer to 

the Chief of the Asset Forfeiture and 

Money Laundering Section, Criminal 

Division, United States Department of 

Justice. 

(7) General creditor means one whose 

claim or debt is not secured by a 

specific right to obtain satisfaction 

against the particular property subject to 

forfeiture. 

(8) Judgment creditor means one who 

has obtained a judgment against the 

debtor but has not yet received full 

satisfaction of the judgment. 

(9) Judicial forfeiture means either a 

civil or a criminal proceeding in a 

United States District Court that may 

result in a final judgment and order of 

forfeiture. 

(10) Lienholder means a creditor 

whose claim or debt is secured by a 

specific right to obtain satisfaction 

against the particular property subject to 

forfeiture. A lien creditor qualifies as a 

lienholder if the lien: 

(i) Was established by operation of 

law or contract; 

(ii) Was created as a result of an 

exchange of money, goods, or services; 

and 

(iii) Is perfected against the specific 

property forfeited for which remission 

or mitigation is sought (e.g., a real estate 

mortgage; a mechanic’s lien). 

(11) Net equity means the amount of 

a lienholder’s monetary interest in the 

property subject to forfeiture. Net equity 

shall be computed by determining the 

amount of unpaid principal and unpaid 

interest at the time of seizure, and by 

adding to that sum unpaid interest 

calculated from the date of seizure 

through the last full month prior to the 

date of the decision on the petition. 

Where a rate of interest is set forth in 

a security agreement, the rate of interest 

to be used in this computation will be 

the annual percentage rate so specified 

in the security agreement that is the 

basis of the lienholder’s interest. In this 

computation, however, there shall be no 

allowances for attorneys’ fees, 

accelerated or enhanced interest 

charges, amounts set by contract as 

damages, unearned extended warranty 

fees, insurance, service contract charges 

incurred after the date of seizure, 

allowances for dealer’s reserve, or any 

other similar charges. 

(12) Nonjudicial forfeiture has the 

same meaning as administrative 

forfeiture as defined in this section. 

(13) Owner means the person in who 

primary title is vested or whose interest 

is manifested by the actual and 

beneficial use of the property, even 

though the title is vested in another. A 

victim of an offense, as defined in 

paragraph (b)(22) of this section, may 

also be an owner if that person has a 

present legally cognizable ownership 

interest in the property forfeited. A 

nominal owner of property will not be 

treated as its true owner if that person 

is not its beneficial owner. 

(14) Person means an individual, 

partnership, corporation, joint business 

enterprise, estate, or other legal entity 

capable of owning property. 

(15) Petition means a petition for 

remission or mitigation of forfeiture 

under the regulations in this part. This 

definition includes a petition for 

restoration of the proceeds of sale of 

forfeited property and a petition for the 

value of the forfeited property placed 

into official use. 

(16) Petitioner means the person 

applying for remission, mitigation, 

restoration of the proceeds of sale, or for 

the appraised value of forfeited 

property, under this part. A petitioner 

may be an owner as defined in 

paragraph (b)(13) of this section, a 

lienholder as defined in paragraph 

(b)(10), or a victim as defined in 

paragraph (b)(22), subject to the 

limitations of paragraph (h) of this 

section. 

(17) Property means real or personal 

property of any kind capable of being 

owned or possessed. 

(18) Record means a series of arrests 

for related crimes, unless the arrestee 

was acquitted or the charges were 

dismissed for lack of evidence, a 

conviction for a related crime or 

completion of sentence within 10 years 

of the acquisition of the property subject 

to forfeiture, or two convictions for a 

related crime at any time in the past. 

(19) Related crime as used in 

paragraphs (b)(18) and (f) of this section 

means any crime similar in nature to 

that which gives rise to the seizure of 

property for forfeiture. For example, 

where property is seized for a violation 

of the Federal laws relating to drugs, a 

related crime would be any offense 

involving a violation of the Federal laws 

relating to drugs, or the laws of any state 

or political subdivision thereof relating 

to drugs. 

(20) Related offense as used in 

paragraph (h) of this section means: 

(i) Any predicate offense charged in a 

Federal Racketeer Influenced and 


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25604 Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Rules and Regulations 

Corrupt Organizations Act (RICO) count 

for which forfeiture was ordered; or 

(ii) An offense committed as part of 

the same scheme or design, or pursuant 

to the same conspiracy, as was involved 

in the offense for which forfeiture was 

ordered. 

(21) Ruling Official means any official 

to whom decision making authority has 

been delegated pursuant to paragraph 

(a)(2) of this section. 

(22) Seizing agency means any 

Federal agency that seized the property 

or adopted the seizure of another agency 

for Federal forfeiture. 

(23) Victim means a person who has 

incurred a pecuniary loss as a direct 

result of the commission of the offense 

underlying a forfeiture. A drug user is 

not considered a victim of a drug 

trafficking offense under this definition. 

A victim does not include one who 

acquires a right to sue the perpetrator of 

the criminal offense for any loss by 

assignment, subrogation, inheritance, or 

otherwise from the actual victim, unless 

that person has acquired an actual 

ownership interest in the forfeited 

property; provided however, that if a 

victim has received compensation from 

insurance or any other source with 

respect to a pecuniary loss, remission 

may be granted to the third party who 

provided compensation, up to the 

amount of the victim’s pecuniary loss as 

defined in paragraph (h)(3) of this 

section. 

(24) Violator means the person whose 

use or acquisition of the property in 

violation of the law subjected such 

property to seizure for forfeiture. 

(c) Petitions in administrative 

forfeiture cases. (1) Notice of seizure. 

The notice of seizure and intent to 

forfeit the property shall advise any 

persons who may have a present 

ownership interest in the property to 

submit their petitions for remission or 

mitigation within 30 days of the date 

they receive the notice in order to 

facilitate processing. Petitions shall be 

considered any time after notice until 

the property has been forfeited, except 

in cases involving petitions to restore 

the proceeds from the sale of forfeited 

property. A notice of seizure shall 

include the Ruling Official, the mailing 

and street address of the official to 

whom petitions should be sent, and an 

asset identifier number. 

(2) Persons who may file. (i) A 

petition for remission or mitigation 

must be filed by a petitioner as defined 

in paragraph (b)(16) of this section, or as 

prescribed in paragraph (i)(7) and (8) of 

this section. A person or person acting 

on their behalf may not file a petition 

if, after notice or knowledge of the fact 

that a warrant or process has been 

issued for his apprehension, in order to 

avoid criminal prosecution the person: 

(A) Purposely leaves the jurisdiction 

of the United States; 

(B) Declines to enter or reenter the 

United States to submit to its 

jurisdiction; or 

(C) Otherwise evades the jurisdiction 

of the court in which a criminal matter 

is pending against the person. 

(ii) Paragraph (c)(2)(i)(A) of this 

section applies to a petition filed by a 

corporation if any majority shareholder, 

or individual filing the claim on behalf 

of the corporation: 

(A) Purposely leaves the jurisdiction 

of the United States; 

(B) Declines to enter or reenter the 

United States to submit to its 

jurisdiction; or 

(C) Otherwise evades the jurisdiction 

of the court in which a criminal case is 

pending against the person. 

(3) Contents of petition. (i) All 

petitions must include the following 

information in clear and concise terms: 

(A) The name, address, and social 

security or other taxpayer identification 

number of the person claiming an 

interest in the seized property who is 

seeking remission or mitigation; 

(B) The name of the seizing agency, 

the asset identifier number, and the date 

and place of seizure; 

(C) A complete description of the 

property, including make, model, and 

serial numbers, if any; and 

(D) A description of the petitioner’s 

interest in the property as owner, 

lienholder, or otherwise, supported by 

original or certified bills of sale, 

contracts, deeds, mortgages, or other 

documentary evidence. Such 

documentation includes evidence 

establishing the source of funds for 

seized currency or the source of funds 

used to purchase the seized asset. 

(ii) Any factual recitation or 

documentation of any type in a petition 

must be supported by a declaration 

under penalty of perjury that meets the 

requirements of 28 U.S.C. 1746. 

(4) Releases. In addition to the 

contents of the petition for remission or 

mitigation set forth in paragraph (c)(3) 

of this section, upon request, the 

petitioner shall also furnish the agency 

with an instrument executed by the 

titled or registered owner and any other 

known claimant of an interest in the 

property releasing interest in such 

property. 

(5) Filing a petition. (i) A petition for 

remission or mitigation subject to 

administrative forfeiture is to be sent to 

the official address provided in the 

notice of seizure and shall be sworn to 

by the petitioner or by the petitioner’s 

attorney upon information and belief, 

supported by the client’s sworn notice 

of representation pursuant to 28 U.S.C. 

1746, as set out in paragraph (i)(7). 

(ii) If the notice of seizure does not 

provide an official address, the petition 

shall be addressed to the Asset 

Forfeiture Unit at the following address: 

Asset Forfeiture Unit, Criminal 

Investigations, U.S. Postal Inspection 

Service, P.O. Box 44373, Washington, 

DC 20026–4373. 

(iii) Submission by facsimile or other 

electronic means will not be accepted. 

(6) Agency investigation. Upon receipt 

of a petition, the Postal Inspection 

Service shall investigate the merits of 

the petition and prepare a written report 

containing the results of that 

investigation. This report shall be 

submitted to the Ruling Official for 

review and consideration. 

(7) Ruling. Upon receipt of the 

petition and the agency report, the 

Ruling Official for the Postal Inspection 

Service shall review the petition and the 

report, if any, and shall rule on the 

merits of the petition. No hearing shall 

be held. 

(8) Petitions granted. If the Ruling 

Official grants a remission or mitigation 

of the forfeiture, a copy of the decision 

shall be mailed to the petitioner or, if 

represented by an attorney, to the 

petitioner’s attorney. A copy shall also 

be sent to the U.S. Marshals Service, or 

other property custodian. The written 

decision shall include the terms and 

conditions, if any, upon which the 

remission or mitigation is granted, and 

the procedures the petitioner must 

follow to obtain release of the property 

or the monetary interest therein. 

(9) Petitions denied. If the Ruling 

Official denies a petition, a copy of the 

decision shall be mailed to the 

petitioner or, if represented by an 

attorney, to the petitioner’s attorney of 

record. A copy of the decision shall also 

be sent to the U.S. Marshals Service, or 

other property custodian. The decision 

shall specify the reason that the petition 

was denied. The decision shall advise 

the petitioner that a request for 

reconsideration of the denial of the 

petition may be submitted to the Ruling 

Official in accordance with paragraph 

(c)(10) of this section. 

(10) Request for reconsideration. (i) A 

request for reconsideration of the denial 

of the petition shall be considered if: 

(A) It is postmarked or received by the 

office of the Ruling Official within 10 

days from the receipt of the notice of 

denial of the petition by the petitioner; 

and 

(B) The request is based on 

information or evidence not previously 

considered that is material to the basis 

for the denial or presents a basis clearly 


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demonstrating that the denial was 

erroneous. 

(ii) In no event shall a request for 

reconsideration be decided by the same 

Ruling Official who ruled on the 

original petition. 

(iii) Only one request for 

reconsideration of a denial of a petition 

shall be considered. 

(11) Restoration of proceeds from sale. 

(i) A petition for restoration of the 

proceeds from the sale of forfeited 

property, or for the appraised value of 

forfeited property when the forfeited 

property has been retained by or 

delivered to a Government agency for 

official use, may be submitted by an 

owner or lienholder in cases in which 

the petitioner: 

(A) Did not know of the seizure prior 

to the entry of a declaration of forfeiture; 

and 

(B) Could not reasonably have known 

of the seizure prior to the entry of a 

declaration of forfeiture. 

(ii) Such a petition shall be submitted 

pursuant to paragraphs (c)(2) through 

(c)(5) of this section within 90 days of 

the date the property is sold or 

otherwise disposed of. 

(d) Petitions in judicial forfeiture 

cases—(1) Notice of seizure. The notice 

of seizure and intent to forfeit the 

property shall advise any persons who 

may have a present ownership interest 

in the property to submit their petitions 

for remission or mitigation within 30 

days of the date they receive the notice 

in order to facilitate processing. 

Petitions shall be considered any time 

after notice until such time as the 

forfeited property is placed in official 

use, sold, or otherwise disposed of 

according to law, except in cases 

involving petitions to restore property. 

A notice of seizure shall include the 

title of the Ruling Official and the 

mailing and street address of the official 

to whom petitions should be sent, the 

name of the agency seizing the property, 

an asset identifier number, and the 

district court docket number. 

(2) Persons who may file. A petition 

for remission or mitigation must be filed 

by a petitioner as defined in paragraph 

(b)(16) of this section, or as prescribed 

in paragraph (i)(7) and (8) of this 

section. 

(3) Contents of petition. (i) All 

petitions must include the following 

information in clear and concise terms: 

(A) The name, address, and Social 

Security or other taxpayer identification 

number of the person claiming an 

interest in the seized property who is 

seeking remission or mitigation; 

(B) The name of the seizing agency, 

the asset identifier number, and the date 

and place of seizure; 

(C) The district court docket number; 

(D) A complete description of the 

property, including the address or legal 

description of real property, and make, 

model, and serial numbers of personal 

property, if any; and 

(E) A description of the petitioner’s 

interest in the property as owner, 

lienholder, or otherwise, supported by 

original or certified bills of sale, 

contracts, mortgages, deeds, or other 

documentary evidence. 

(ii) Any factual recitation or 

documentation of any type in a petition 

must be supported by a declaration 

under penalty of perjury that meets the 

requirements of 28 U.S.C. 1746. 

(4) Releases. In addition to the content 

of the petition for remission or 

mitigation set forth in paragraph (d)(3) 

of this section, the petitioner, upon 

request, also shall furnish the agency 

with an instrument executed by the 

titled or registered owner and any other 

known claimant of an interest in the 

property releasing the interest in such 

property. 

(5) Filing petition with Department of 

Justice. A petition for remission or 

mitigation of a judicial forfeiture shall 

be addressed to the Attorney General; 

shall be sworn to by the petitioner or by 

the petitioner’s attorney upon 

information and belief, supported by the 

client’s sworn notice of representation 

pursuant to 28 U.S.C. 1746, as set forth 

in paragraph (i)(7) of this section; and 

shall be submitted to the U.S. Attorney 

for the district in which the judicial 

forfeiture proceedings are brought. 

(6) Agency investigation and 

recommendation; U.S. Attorney’s 

recommendation. Upon receipt of a 

petition, the U.S. Attorney shall direct 

the seizing agency to investigate the 

merits of the petition based on the 

information provided by the petitioner 

and the totality of the agency’s 

investigation of the underlying basis for 

forfeiture. The agency shall submit to 

the U.S. Attorney a report of its 

investigation and its recommendation 

on whether the petition should be 

granted or denied. Upon receipt of the 

agency’s report and recommendation, 

the U.S. Attorney shall forward to the 

Chief, Asset Forfeiture and Money 

Laundering Section, the petition, the 

seizing agency’s report and 

recommendation, and the U.S. 

Attorney’s recommendation on whether 

the petition should be granted or 

denied. 

(7) Ruling. The Chief shall rule on the 

petition. No hearing shall be held. The 

Chief shall not rule on any petition for 

remission if such remission was 

previously denied by the administrative 

agency pursuant to paragraph (c) of this 

section. 

(8) Petitions granted. If the Chief 

grants a remission or mitigates the 

forfeiture, the Chief shall mail a copy of 

the decision to the petitioner (or, if 

represented by an attorney, to the 

petitioner‘s attorney), and shall mail or 

transmit electronically a copy of the 

decision to the appropriate U.S. 

Attorney, the U.S. Marshals Service or 

other property custodian, and the 

seizing agency. The written decision 

shall include the terms and conditions, 

if any, upon which the remission or 

mitigation is granted and the procedures 

the petitioner must follow to obtain 

release of the property or the monetary 

interest therein. The Chief shall advise 

the petitioner or the petitioner‘s 

attorney to consult with the U.S. 

Attorney as to such terms and 

conditions. The U.S. Attorney shall 

confer with the seizing agency regarding 

the release and shall coordinate 

disposition of the property with that 

office and the U.S. Marshals Service or 

other property custodian. 

(9) Petitions denied. If the Chief 

denies a petition, a copy of that decision 

shall be mailed to the petitioner (or, if 

represented by an attorney, to the 

petitioner‘s attorney of record), and 

mailed or transmitted electronically to 

the appropriate U.S. Attorney, the U.S. 

Marshals Service or other property 

custodian, and the seizing agency. The 

decision shall specify the reason that 

the petition was denied. The decision 

shall advise the petitioner that a request 

for reconsideration of the denial of the 

petition may be submitted to the Chief 

at the address provided in the decision, 

in accordance with paragraph (d)(10) of 

this section. 

(10) Request for reconsideration. (i) A 

request for reconsideration of the denial 

shall be considered if: 

(A) It is postmarked or received by the 

Asset Forfeiture and Money Laundering 

Section at the address contained in the 

decision denying the petition within 10 

days from the receipt of the notice of 

denial of the petition by the petitioner; 

(B) A copy of the request is also 

received by the appropriate U.S. 

Attorney within 10 days of the receipt 

of the denial by the petitioner; and 

(C) The request is based on 

information or evidence not previously 

considered that is material to the basis 

for the denial or presents a basis clearly 

demonstrating that the denial was 

erroneous. 

(ii) In no event shall a request for 

reconsideration be decided by the 

Ruling Official who ruled on the 

original petition. 


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(iii) Only one request for 

reconsideration of a denial of a petition 

shall be considered. 

(iv) Upon receipt of the request for 

reconsideration of the denial of a 

petition, disposition of the property will 

be delayed pending notice of the 

decision at the request of the Chief. lf 

the request for reconsideration is not 

received within the prescribed period, 

the U.S. Marshals Service may dispose 

of the property. 

(11) Restoration of proceeds from sale. 

(i) A petition for restoration of the 

proceeds from the sale of forfeited 

property, or for the appraised value of 

forfeited property when the forfeited 

property has been retained by or 

delivered to a Government agency for 

official use, may be submitted by an 

owner or lienholder in cases in which 

the petitioner: 

(A) Did not know of the seizure prior 

to the entry of a final order of forfeiture; 

and 

(B) Could not reasonably have known 

of the seizure prior to the entry of a final 

order of forfeiture. 

(ii) Such a petition must be submitted 

pursuant to paragraphs (d)(2) through 

(d)(5) of this section within 90 days of 

the date the property was sold or 

otherwise disposed of. 

(e) Criteria governing administrative 

and judicial remission and mitigation— 

(1) Remission. (i) The Ruling Official 

shall not grant remission of a forfeiture 

unless the petitioner establishes that the 

petitioner has a valid, good faith, and 

legally cognizable interest in the seized 

property as owner or lienholder as 

defined in this part and is an innocent 

owner within the meaning of 18 U.S.C. 

983(d)(2)(A) or (d)(3)(A). 

(ii) For purposes of this paragraph (e), 

the knowledge and responsibilities of a 

petitioner’s representative, agent, or 

employee are imputed to the petitioner 

where the representative, agent, or 

employee was acting in the course of 

that person’s employment and in 

furtherance of the petitioner’s business. 

(iii) The petitioner has the burden of 

establishing the basis for granting a 

petition for remission or mitigation of 

forfeited property, a restoration of 

proceeds of sale or appraised value of 

forfeited property, or a reconsideration 

of a denial of such a petition. Failure to 

provide information or documents and 

to submit to interviews, as requested, 

may result in a denial of the petition. 

(iv) The Ruling Official shall presume 

a valid forfeiture and shall not consider 

whether the evidence is sufficient to 

support the forfeiture. 

(v) Willful, materially false statements 

or information made or furnished by the 

petitioner in support of a petition for 

remission or mitigation of forfeited 

property, the restoration of proceeds or 

appraised value of forfeited property, or 

the reconsideration of a denial of any 

such petition shall be grounds for denial 

of such petition and possible 

prosecution for the filing of false 

statements. 

(2) Mitigation. (i) The Ruling Official 

may grant mitigation to a party not 

involved in the commission of the 

offense underlying forfeiture: 

(A) Where the petitioner has not met 

the minimum conditions for remission, 

but the Ruling Official finds that some 

relief should be granted to avoid 

extreme hardship, and that return of the 

property combined with imposition of 

monetary or other conditions of 

mitigation in lieu of a complete 

forfeiture will promote the interest of 

justice and will not diminish the 

deterrent effect of the law. Extenuating 

circumstances justifying such a finding 

include those circumstances that reduce 

the responsibility of the petitioner for 

knowledge of the illegal activity, 

knowledge of the criminal record of a 

user of the property, or failure to take 

reasonable steps to prevent the illegal 

use or acquisition by another for some 

reason, such as a reasonable fear of 

reprisal; or 

(B) Where the minimum standards for 

remission have been satisfied but the 

overall circumstances are such that, in 

the opinion of the Ruling Official, 

complete relief is not warranted. 

(ii) The Ruling Official may as a 

matter of discretion grant mitigation to 

a party involved in the commission of 

the offense underlying the forfeiture 

where certain mitigating factors exist, 

including, but not limited to: The lack 

of a prior record or evidence of similar 

criminal conduct; if the violation does 

not include drug distribution, 

manufacturing, or importation, the fact 

that the violator has taken steps, such as 

drug treatment, to prevent further 

criminal conduct; the fact that the 

violation was minimal and was not part 

of a larger criminal scheme; the fact that 

the violator has cooperated with 

Federal, state, or local investigations 

relating to the criminal conduct 

underlying the forfeiture; or the fact that 

complete forfeiture of an asset is not 

necessary to achieve the legitimate 

purposes of forfeiture. 

(iii) Mitigation may take the form of 

a monetary condition or the imposition 

of other conditions relating to the 

continued use of the property, and the 

return of the property, in addition to the 

imposition of any other costs that would 

be chargeable as a condition to 

remission. This monetary condition is 

considered as an item of cost payable by 

the petitioner, and shall be deposited 

into the Postal Inspection Service’s 

Fund as an amount realized from 

forfeiture in accordance with the 

applicable statute. If the petitioner fails 

to accept the Ruling Official’s mitigation 

decision or any of its conditions, or fails 

to pay the monetary amount within 20 

days of the receipt of the decision, the 

property shall be sold, and the monetary 

amount imposed and other costs 

chargeable as a condition to mitigation 

shall be subtracted from the proceeds of 

the sale before transmitting the 

remainder to the petitioner. 

(f) Special rules for specific 

petitioners—(1) General creditors. A 

general creditor may not be granted 

remission or mitigation of forfeiture 

unless that person otherwise qualifies as 

petitioner under this part. 

(2) Rival claimants. If the beneficial 

owner of the forfeited property and the 

owner of a security interest in the same 

property each files a petition, and if 

both petitions are found to be 

meritorious, the claims of the beneficial 

owner shall take precedence. 

(3) Voluntary bailments. A petitioner 

who allows another to use the 

petitioner’s property without cost, and 

who is not in the business of lending 

money secured by property or of leasing 

or renting property for profit, shall be 

granted remission or mitigation of 

forfeiture in accordance with the 

provisions of paragraph (e) of this 

section. 

(4) Lessors. A person engaged in the 

business of leasing or renting real or 

personal property on a long-term basis 

with the right to sublease shall not be 

entitled to remission or mitigation of a 

forfeiture of such property unless the 

lessor can demonstrate compliance with 

all the requirements of paragraph (e) of 

this section. 

(5) Straw owners. A petition by any 

person who has acquired a property 

interest recognizable under this part, 

and who knew or had reason to believe 

that the interest was conveyed by the 

previous owner for the purpose of 

circumventing seizure, forfeiture, or the 

regulations in this part, shall be denied. 

A petition by a person who purchases 

or owns property for another who has a 

record for related crimes as defined in 

paragraph (b)(19), or a petition by a 

lienholder who knows or has reason to 

believe that the purchaser or owner of 

record is not the real purchaser or 

owner, shall be denied unless both the 

purchaser of record and the real 

purchaser or owner meet the 

requirements of paragraph (e) of this 

section. 


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(6) Judgment creditors. (i) A judgment 

creditor will be recognized as a 

lienholder if: 

(A) The judgment was duly recorded 

before the seizure of the property for 

forfeiture; 

(B) Under applicable state or other 

local law, the judgment constitutes a 

valid lien on the property that attached 

to it before the seizure of the property 

for forfeiture; and 

(C) The petitioner had no knowledge 

of the commission of any act or acts 

giving rise to the forfeiture at the time 

the judgment became a lien on the 

forfeited property. 

(ii) A judgment creditor will not be 

recognized as a lienholder if the 

property in question is not property of 

which the judgment debtor is entitled to 

claim ownership under applicable state 

or other local law (e.g., stolen property). 

A judgment creditor is entitled under 

this part to no more than the amount of 

the judgment, exclusive of any interest, 

costs, or other fees including attorney’s 

fees associated with the action that led 

to the judgment or its collection. 

(iii) A judgment creditor’s lien must 

be registered in the district where the 

property is located if the judgment was 

obtained outside the district. 

(g) Terms and conditions of remission 

and mitigation—(1) Owners. (i) An 

owner’s interest in property that has 

been forfeited is represented by the 

property itself or by a monetary interest 

equivalent to that interest at the time of 

seizure. Whether the property or a 

monetary equivalent will be remitted to 

an owner shall be determined at the 

discretion of the Ruling Official. 

(ii) If a civil judicial forfeiture action 

against the property is pending, release 

of the property must await an 

appropriate court order. 

(iii) Where the Government sells or 

disposes of the property prior to the 

grant of the remission, the owner shall 

receive the proceeds of that sale, less 

any costs incurred by the Government 

in the sale. The Ruling Official, as a 

matter of discretion, may waive the 

deduction of costs and expenses 

incident to the forfeiture. 

(iv) Where the owner does not comply 

with the conditions imposed upon 

release of the property by the Ruling 

Official, the property shall be sold. 

Following the sale, the proceeds shall be 

used to pay all costs of the forfeiture 

and disposition of the property, in 

addition to any monetary conditions 

imposed. The remaining balance shall 

be paid to the owner. 

(2) Lienholders. (i) When the forfeited 

property is to be retained for official use 

or transferred to a state or local law 

enforcement agency or foreign 

government pursuant to law, and 

remission or mitigation has been 

granted to a lienholder, the recipient of 

the property shall assure that: 

(A) In the case of remission, the lien 

is satisfied as determined through the 

petition process; or 

(B) In the case of mitigation, an 

amount equal to the net equity, less any 

monetary conditions imposed, is paid to 

the lienholder prior to the release of the 

property to the recipient agency of 

foreign government. 

(ii) When the forfeited property is not 

retained for official use or transferred to 

another agency or foreign government 

pursuant to law, the lienholder shall be 

notified by the Ruling Official of the 

right to select either of the following 

alternatives: 

(A) Return of Property. The lienholder 

may obtain possession of the property 

after paying the United States, through 

the Ruling Official, the costs and 

expenses incident to the forfeiture, the 

amount, if any, by which the appraised 

value of the property exceeds the 

lienholder’s net equity in the property, 

and any amount specified in the Ruling 

Official’s decision as a condition to 

remit the property. The Ruling Official, 

as a matter of discretion, may waive 

costs and expenses incident to the 

forfeiture. The Ruling Official shall 

forward a copy of the decision, a 

memorandum of disposition, and the 

original releases to the division or field 

office responsible for the seizure and 

custody of the property or, if applicable, 

to the U.S. Marshals Service, who shall 

thereafter release the property to the 

lienholder; or 

(B) Sale of Property and Payment to 

Lienholder. Subject to the provisions of 

paragraph (i)(1) of this section, upon 

sale of the property, the lienholder may 

receive the payment of a monetary 

amount up to the sum of the 

lienholder’s net equity, less the 

expenses and costs incident to the 

forfeiture and sale of the property, and 

any other monetary conditions imposed. 

The Ruling Official, as a matter of 

discretion, may waive costs and 

expenses incident to the forfeiture. 

(iii) If the lienholder does not notify 

the Ruling Official of the selection of 

one of the two options set forth in this 

paragraph (g)(2)(ii) within 20 days of the 

receipt of notification, the Ruling 

Official shall direct the division or field 

office responsible for the seizure or 

custody, or if applicable, the U.S. 

Marshals Service, to sell the property 

and pay the lienholder an amount up to 

the net equity, less the costs and 

expenses incurred incident to the 

forfeiture and sale, and any monetary 

conditions imposed. In the event a 

lienholder subsequently receives a 

payment of any kind on the debt owed 

for which he or she received payment as 

a result of the granting of remission or 

mitigation, the lienholder shall 

reimburse the Postal Service Forfeiture 

Fund to the extent of the payment 

received. 

(iv) Where the lienholder does not 

comply with the conditions imposed 

upon the release of the property, the 

property shall be sold after forfeiture. 

From the proceeds of the sale, all costs 

incident to the forfeiture and sale shall 

first be deducted, and the balance up to 

the net equity, less any monetary 

conditions, shall be paid to the 

lienholder. 

(h) Remission procedures for victims. 

This section applies to victims of an 

offense underlying the forfeiture of 

property, or of a related offense, who do 

not have a present ownership interest in 

the forfeited property (or, in the case of 

multiple victims of an offense, who do 

not have a present ownership interest in 

the forfeited property that is clearly 

superior to that of other petitioner 

victims). This section applies only with 

respect to property forfeited pursuant to 

statutes that explicitly authorize 

restoration or remission of forfeited 

property to victims. A victim requesting 

remission under this section may 

concurrently request remission as an 

owner, pursuant to the regulations set 

forth in paragraphs (c), (d), and (g) of 

this section. The claims of victims 

granted remission as both an owner and 

victim shall, like other owners, have 

priority over the claims of any nonowner victims whose claims are 

recognized under this section. 

(1) Remission procedure for victims— 

(i) Where to file. Persons seeking 

remission as victims shall file petitions 

for remission with the appropriate 

deciding official as described in 

paragraph (c)(5) (administrative 

forfeiture) or (d)(5) (judicial forfeiture) 

of this section. 

(ii) Time of decision. The Ruling 

Official or that person’s designee as 

described in paragraph (a)(2) of this 

section may consider petitions filed by 

persons claiming eligibility for 

remission as victims at any time prior to 

the disposal of the forfeited property in 

accordance with law. 

(iii) Request for reconsideration. 

Persons denied remission under this 

section may request reconsideration of 

the denial, in accordance with 

paragraph (c)(10) (administrative 

forfeiture) or (d)(10) (judicial forfeiture) 

of this section. 

(2) Qualification to file. A victim, as 

defined in paragraph (b)(22) of this 

section, may be granted remission, if in 


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25608 Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Rules and Regulations 

addition to complying with the other 

applicable provisions of this paragraph 

(h), the victim satisfactorily 

demonstrates that: 

(i) A pecuniary loss of a specific 

amount has been directly caused by the 

criminal offense, or related offense, that 

was the underlying basis for the 

forfeiture, and that the loss is supported 

by documentary evidence including 

invoices and receipts; 

(ii) The pecuniary loss is the direct 

result of the illegal acts and is not the 

result of otherwise lawful acts that were 

committed in the course of a criminal 

offense; 

(iii) The victim did not knowingly 

contribute to, participate in, benefit 

from, or act in a willfully blind manner 

towards commission of the offense, or 

related offense, that was the underlying 

basis of the forfeiture; 

(iv) The victim has not in fact been 

compensated for the wrongful loss of 

the property by the perpetrator or 

others; and 

(v) The victim does not have recourse 

reasonably available to other assets from 

which to obtain compensation for the 

wrongful loss of the property. 

(3) Pecuniary loss. The amount of the 

pecuniary loss suffered by a victim for 

which remission may be granted is 

limited to the fair market value of the 

property of which the victim was 

deprived as of the date of the occurrence 

of the loss. No allowance shall be made 

for interest forgone or for collateral 

expenses incurred to recover lost 

property or to seek other recompense. 

(4) Torts. A tort associated with illegal 

activity that formed the basis for the 

forfeiture shall not be a basis for 

remission, unless it constitutes the 

illegal activity itself, nor shall remission 

be granted for physical injuries to a 

petitioner or for damage to a petitioner’s 

property. 

(5) Denial of petition. As a matter of 

discretion, the Ruling Official may 

decline to grant remission where: 

(i) There is substantial difficulty in 

calculating the pecuniary loss incurred 

by the victim or victims; 

(ii) The amount of the remission, if 

granted, would be small compared with 

the amount of expenses incurred by the 

Government in determining whether to 

grant remission; or 

(iii) The total number of victims is 

large and the monetary amount of the 

remission so small as to make its 

granting impractical. 

(6) Pro rata basis. In granting 

remission to multiple victims pursuant 

to this section, the Ruling Official 

should generally grant remission on a 

pro rata basis to recognized victims 

when petitions cannot be granted in full 

due to the limited value of the forfeited 

property. However, the Ruling Official 

may consider, among others, the 

following factors in establishing 

appropriate priorities in individual 

cases: 

(i) The specificity and reliability of 

the evidence establishing a loss; 

(ii) The fact that a particular victim is 

suffering an extreme financial hardship; 

(iii) The fact that a particular victim 

has cooperated with the Government in 

the investigation related to the forfeiture 

or to a related persecution or civil 

action; and 

(iv) In the case of petitions filed by 

multiple victims of related offenses, the 

fact that a particular victim is a victim 

of the offense underlying the forfeiture. 

(7) Reimbursement. Any petitioner 

granted remission pursuant to this part 

shall reimburse the Postal Service 

Forfeiture Fund for the amount 

received, to the extent the individual 

later receives compensation for the loss 

of property from any other source. The 

petitioner shall surrender the 

reimbursement upon payment from any 

secondary source. 

(8) Claims of financial institution 

regulatory agencies. In cases involving 

property forfeitable under 18 U.S.C. 

981(a)(1)(C) or (D), the Ruling Official 

may decline to grant a petition filed by 

a petitioner in whole or in part due to 

the lack of sufficient forfeitable funds to 

satisfy both the petitioner and claims of 

the financial institution regulatory 

agencies pursuant to 18 U.S.C. 981(e)(3) 

or (7). Generally, claims of financial 

institution regulatory agencies pursuant 

to 18 U.S.C. 981(e)(3) or (7) shall take 

priority over claims of victims. 

(9) Amount of remission. Consistent 

with the Assets Forfeiture Fund statute 

(28 U.S.C. 524(c)), the amount of 

remission shall not exceed the victim’s 

share of the net proceeds of the 

forfeitures associated with the activity 

that caused the victim’s loss. The 

calculation of net proceeds includes, but 

is not limited to, the deduction of 

allowable Government expenses and 

valid third-party claims. 

(i) Miscellaneous provisions—(1) 

Priority of payment. Except where 

otherwise provided in this part, costs 

incurred by the Postal Inspection 

Service, the U.S. Marshals Service, and 

other agencies participating in the 

forfeiture that were incident to the 

forfeiture, sale, or other disposition of 

the property shall be deducted from the 

amount available for remission or 

mitigation. Such costs include, but are 

not limited to, court costs, storage costs, 

brokerage and other sales-related costs, 

the amount of any liens and associated 

costs paid by the Government on the 

property, costs incurred in paying the 

ordinary and necessary expenses of a 

business seized for forfeiture, awards for 

information as authorized by statute, 

expenses of trustees or other assistants 

pursuant to paragraph (i)(3) of this 

section, investigative or prosecutorial 

costs specially incurred incident to the 

particular forfeiture, and costs incurred 

incident to the processing of petitions 

for remission or mitigation. The 

remaining balance shall be available for 

remission or mitigation. The Ruling 

Official shall direct the distribution of 

the remaining balance in the following 

order or priority, except that the Ruling 

Official may exercise discretion in 

determining the priority between 

petitioners belonging to classes 

described in paragraph (i)(1)(iii) and (iv) 

of this section in exceptional 

circumstances: 

(i) Owners; 

(ii) Lienholders; 

(iii) Federal financial institution 

regulatory agencies (pursuant to 

paragraph (i)(5) of this section), not 

constituting owners or lienholders; and 

(iv) Victims not constituting owners 

or lienholders pursuant to paragraph (h) 

of this part. 

(2) Sale or disposition of property 

prior to ruling. If forfeited property has 

been sold or otherwise disposed of prior 

to a ruling, the Ruling Official may grant 

relief in the form of a monetary amount. 

The amount realized by the sale of 

property is presumed to be the value of 

the property. Monetary relief shall not 

be greater than the appraised value of 

the property at the time of seizure and 

shall not exceed the amount realized 

from the sale or other disposition. The 

proceeds of the sale shall be distributed 

as follows: 

(i) Payment of the Government’s 

expenses incurred incident to the 

forfeiture and sale, including court costs 

and storage charges, if any; 

(ii) Payment to the petitioner of an 

amount up to that person’s interest in 

the property; 

(iii) Payment to the Postal Service 

Forfeiture Fund of all other costs and 

expenses incident to the forfeiture; 

(iv) In the case of victims, payment of 

any amount up to the amount of that 

person’s loss; and 

(v) Payment of the balance remaining, 

if any, to the Postal Service Forfeiture 

Fund. 

(3) Trustees and other assistants. As 

a matter of discretion, the Ruling 

Official, with the approval of the Chief 

Postal Inspector, may use the services of 

a trustee, other Government official, or 

appointed contractors to notify potential 

petitioners, process petitions, and make 

recommendations to the Ruling Official 


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Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Rules and Regulations 25609 

on the distribution of property to 

petitioners. The expense for such 

assistance shall be paid out of the 

forfeited funds. 

(4) Other agencies of the United 

States. Where another agency of the 

United States is entitled to remission or 

mitigation of forfeited assets because of 

an interest that is recognizable under 

this part or is eligible for such transfer 

pursuant to 18 U.S.C. 981(e)(6), such 

agency shall request the transfer in 

writing, in addition to complying with 

any applicable provisions of paragraphs 

(c) through (e) of this section. The 

decision to make such transfer shall be 

made in writing by the Ruling Official. 

(5) Financial institution regulatory 

agencies. A Ruling Official may direct 

the transfer of property under 18 U.S.C. 

981(e) to certain Federal financial 

institution regulatory agencies or an 

entity acting in their behalf, upon 

receipt of a written request, in lieu of 

ruling on a petition for remission or 

mitigation. 

(6) Transfers to foreign governments. 

A Ruling Official may decline to grant 

remission to any petitioner other than 

an owner or lienholder so that forfeited 

assets may be transferred to a foreign 

government pursuant to 18 U.S.C. 

981(i)(1); 19 U.S.C. 1616a(c)(2); or 

21 U.S.C. 881(e)(1)(E). 

(7) Filing by attorneys. (i) A petition 

for remission or mitigation may be filed 

by a petitioner or by that person’s 

attorney or legal guardian. If an attorney 

files on behalf of the petitioner, the 

petition must include a signed and 

sworn statement by the client-petitioner 

stating that: 

(A) The attorney has the authority to 

represent the petitioner in this 

proceeding; 

(B) The petitioner has fully reviewed 

the petition; and 

(C) The petition is truthful and 

accurate in every respect. 

(ii) Verbal notification of 

representation is not acceptable. 

Responses and notification of rulings 

shall not be sent to an attorney claiming 

to represent a petitioner unless a written 

notice of representation is filed. No 

extensions of time shall be granted due 

to delays in submission of the notice of 

representation. 

(8) Consolidated petitions. At the 

discretion of the Ruling Official in 

individual cases, a petition may be filed 

by one petitioner on behalf of other 

petitioners, provided the petitions are 

based on similar underlying facts, and 

the petitioner who files the petition has 

written authority to do so on behalf of 

other petitioners. This authority must be 

either expressed in documents giving 

the petitioner the authority to file 

petitions for remission, or reasonably 

implied from documents giving the 

petitioner express authority to file 

claims or lawsuits related to the course 

of conduct in question on behalf of 

these petitioners. An insurer or an 

administrator of an employee benefit 

plan, for example, which itself has 

standing to file a petition as a ‘‘victim’’ 

within the meaning of paragraph (b)(22) 

of this section, may also file a petition 

on behalf of its insured or plan 

beneficiaries for any claims they may 

have based on co-payments made to the 

perpetrator of the offense underlying the 

forfeiture, or the perpetrator of a 

‘‘related offense’’ within the meaning of 

paragraph (b)(20), if the authority to file 

claims or lawsuits is contained in the 

document or documents establishing the 

plan. Where such a petition is filed, any 

amounts granted as remission must be 

transferred to the other petitioners, not 

the party filing the petition; although, as 

a matter of discretion, the Ruling 

Official may use the actual petitioner as 

an intermediary for transferring the 

amounts authorized as a remission to 

the other petitioners. 

§ 233.10 [Removed and Reserved] 

■ 5. Section 233.10 is removed and 

reserved. 

Stanley F. Mires, 

Attorney, Legal Policy & Legislative Advice. 

[FR Doc. 2012–10271 Filed 4–30–12; 8:45 am] 

BILLING CODE 7710–12–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 54 

[WC Docket Nos. 11–42, 03–109, 12–23 and 

CC Docket No. 96–45; FCC 12–11] 

Lifeline and Link Up Reform and 

Modernization, Advancing Broadband 

Availability Through Digital Literacy 

Training 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule; announcement of 

effective date. 

SUMMARY: In this document, the Federal 

Communications Commission 

(Commission) announces that the Office 

of Management and Budget (OMB) has 

approved, for a period of six months, 

the information collection requirements 

associated with certain of the provisions 

of the rules adopted as part of the 

Commission’s Lifeline and Link Up 

Reform and Modernization Report and 

Order (Order). The Commission 

submitted revisions to those information 

collection requirements under control 

number 3060–0819 to OMB for review 

and approval, as required by the 

Paperwork Reduction Act (PRA) of 1995 

(44 U.S.C. 3501–3520), 77 FR 13319, 

March 6, 2012. The revisions as updated 

were approved by OMB on April 13, 

2012. 

DATES: Sections 54.202(a), 54.401(d), 

54.403, 54.405(c), 54.407, 54.416, 

54.417, 54.420(b), and 54.422, published 

at 77 FR 12952, March 2, 2012, are 

effective May 1, 2012 and § 54.410(a) 

through (f) is effective June 1, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Kimberly Scardino, Wireline 

Competition Bureau, (202) 418–7400 or 

TTY: (202) 418–0484. 

SUPPLEMENTARY INFORMATION: This 

document announces that, on April 13, 

2012, OMB approved, for a period of six 

months, the information collection 

requirements contained in the 

Commission’s Order, FCC 12–11, 

published at 77 FR 12952, March 2, 

2012. The OMB Control Number is 

3060–0819. The Commission publishes 

this notice as an announcement of the 

effective date rules requiring OMB 

approval. The Commission updated its 

request to remove the temporary address 

confirmation and recertification 

requirements set forth in 47 CFR 

54.410(g) and the portion of 47 CFR 

54.405(e)(4) relating to temporary 

address de-enrollment; and the biennial 

audit requirements (47 CFR 54.420(a)). 

To request materials in accessible 

formats for people with disabilities 

(Braille, large print, electronic files, 

audio format), send an email to 

fcc504@fcc.gov or call the Consumer 

and Governmental Affairs Bureau at 

(202) 418–0530 (voice), (202) 418–0432 

(TTY). 

Synopsis 

As required by the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3507), 

the FCC is notifying the public that it 

received OMB approval on April 13, 

2012, for the information collection 

requirements contained in the 

Commission’s rules at 47 CFR Sections 

54.202(a), 54.401(d), 54.403, 54.404, 

54.405(c) as it applies to the 

certification form, 54.405(e) except the 

portion of paragraph (4) relating to 

temporary address de-enrollment, 

54.407, 54.410(a) through (f), 54.416, 

54.417, 54.420(b), and 54.422. 

Under 5 CFR 1320, an agency may not 

conduct or sponsor a collection of 

information unless it displays a current, 

valid OMB Control Number. 

No person shall be subject to any 

penalty for failing to comply with a 

collection of information subject to the 


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