This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

9359 

Vol. 75, No. 40 

Tuesday, March 2, 2010 

DEPARTMENT OF HOMELAND 

SECURITY 

Bureau of Customs and Border 

Protection 

DEPARTMENT OF THE TREASURY 

19 CFR Parts 113 and 191 

[USCBP–2009–0021] 

RIN 1505–AC18 

Drawback of Internal Revenue Excise 

Tax 

AGENCY: Customs and Border Protection, 

Department of Homeland Security; 

Department of the Treasury. 

ACTION: Withdrawal of notice of 

proposed rulemaking. 

SUMMARY: This document withdraws a 

notice of proposed rulemaking, 

published in the Federal Register on 

October 15, 2009, that proposed 

amendments to title 19 of the Code of 

Federal Regulations to: preclude the 

filing of a substitution drawback claim 

for internal revenue excise tax paid on 

imported merchandise in situations 

where no excise tax was paid upon the 

substituted merchandise or where the 

substituted merchandise is the subject 

of a different claim for refund or 

drawback of tax under any provision of 

the Internal Revenue Code; and add a 

basic importation and entry bond 

condition to foster compliance with the 

amended drawback provision. The 

notice is being withdrawn to permit 

further consideration of the relevant 

issues involved in the proposed 

rulemaking. 

DATES: Effective Date: The effective date 

of this withdrawal is March 2, 2010. 

FOR FURTHER INFORMATION CONTACT: 

William Rosoff, Regulations and 

Rulings, Office of International Trade, 

(202) 325–0047. 

SUPPLEMENTARY INFORMATION: 

Background 

On October 15, 2009, Customs and 

Border Protection (CBP) published a 

notice of proposed rulemaking in the 

Federal Register (74 FR 52928) 

proposing changes to parts 113 and 191 

within title 19 of the Code of Federal 

Regulations. The proposed amendments 

would: (1) Preclude the filing of a 

substitution drawback claim for internal 

revenue excise tax paid on imported 

merchandise in situations where no 

excise tax was paid upon the substituted 

merchandise or where the substituted 

merchandise is the subject of a different 

claim for refund or drawback of tax 

under any provision of the Internal 

Revenue Code; and (2) add a basic 

importation and entry bond condition to 

the CBP regulations to foster compliance 

with the amended drawback provision. 

The comment period was extended 

twice to allow additional time for 

interested parties to submit comments 

on the proposed rulemaking. The 

comment period ended on January 12, 

2010. 

Withdrawal of Notice of Proposed 

Rulemaking 

CBP is withdrawing the notice of 

proposed rulemaking published in the 

Federal Register (74 FR 52928) on 

October 15, 2009, so that relevant issues 

involved in the proposed rulemaking 

may be further considered. 

David V. Aguilar, 

Acting Deputy Commissioner, U.S. Customs 

and Border Protection. 

Approved: February 25, 2010. 

Michael Mundaca, 

Acting Assistant Secretary of the Treasury. 

[FR Doc. 2010–4379 Filed 3–1–10; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Parts 28 and 44 

[Docket No. TTB–2009–0005; Notice No. 

102; Re: Notice Nos. 100 & 101] 

RIN 1513–AB77 

Drawback of Internal Revenue Excise 

Taxes 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Withdrawal of notice of 

proposed rulemaking. 

SUMMARY: This document withdraws a 

notice of proposed rulemaking, 

published in the Federal Register on 

October 15, 2009, that proposed 

conforming amendments to reflect 

proposed Customs and Border 

Protection regulations stating that 

domestic merchandise on which no tax 

is paid under the Internal Revenue Code 

may not be substituted for imported 

merchandise for purposes of claims for 

drawback of tax under the customs laws 

and regulations. The notice is being 

withdrawn to permit further 

consideration of the relevant issues 

involved in the proposed rulemaking. 

DATES: The proposed rulemaking is 

withdrawn on March 2, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Gerry Isenberg, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street, NW., Suite 

200–E, Washington, DC 20220; 

telephone (202) 453–2097. 

SUPPLEMENTARY INFORMATION: 

Background 

On October 15, 2009, the Alcohol and 

Tobacco Tax and Trade Bureau (TTB) 

published in the Federal Register a 

notice of proposed rulemaking to amend 

its regulations to clarify the relationship 

between tax payment under the Internal 

Revenue Code of 1986 and drawback of 

tax under the Tariff Act of 1930. See 

Notice No. 100 at 74 FR 52937. 

Specifically, TTB’s proposed 

rulemaking would have provided 

conforming regulations to reflect 

proposed Customs and Border 

Protection (CBP) regulations stating that 

domestic merchandise on which no tax 

is paid under the Internal Revenue Code 

may not be substituted for imported 

merchandise for purposes of claims for 

drawback of tax under the customs laws 

and regulations. TTB later extended the 

comment period closing date for its 

proposal until January 14, 2010. See 

Notice No. 101, November 27, 2009, at 

74 FR 62266. 

The CBP notice of proposed 

rulemaking regarding drawback of 

internal revenue excise tax, on which 

TTB’s proposed rulemaking was based, 

also was published in the Federal 

Register on October 15, 2009, at 74 FR 

52928. CBP twice extended the 

comment period on its proposal to allow 

additional time for interested parties to 

comment on the proposed rulemaking. 

See the CBP notices of November 4, 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

9360 Federal Register / Vol. 75, No. 40 / Tuesday, March 2, 2010 / Proposed Rules 

1Section 601 of the Pension Protection Act of 

2006 (PPA) added sections 408(b)(14) and 408(g) of 

ERISA. The PPA also added parallel provisions to 

the Code at sections 4975(d)(17) and 4975(f)(8). 

Under Reorganization Plan No. 4 of 1978 (43 FR 

47713, Oct. 17, 1978), 5 U.S.C. App. 1, 92 Stat. 

3790, the authority of the Secretary of the Treasury 

to issue rulings under section 4975 of the Code has 

been transferred, with certain exceptions not here 

relevant, to the Secretary of Labor. Therefore, the 

references in this notice to specific sections of 

ERISA should be taken as referring also to the 

corresponding sections of the Code. 

2These comments are available on the 

Department’s Web site at: http://www.dol.gov/ebsa/ 

regs/cmt-investmentadvicefinalrule.html. 

2009 (74 FR 57125), and November 25, 

2009 (74 FR 61585). The CPB proposal’s 

comment period ended on January 12, 

2010. 

Withdrawal of Notice No. 100 

The proposed CBP regulations 

published on October 15, 2009, and on 

which TTB’s proposed rulemaking was 

based, are being withdrawn to allow for 

further consideration of the issues 

involved. Consistent with the CBP 

action, TTB withdraws its proposed 

rulemaking, Notice No. 100, published 

in the Federal Register on October 15, 

2009 at 74 FR 52928. 

Dated: February 3, 2010. 

John J. Manfreda, 

Administrator. 

Approved: February 25, 2010. 

Michael Mundaca, 

Acting Assistant Secretary (Tax Policy). 

[FR Doc. 2010–4374 Filed 3–1–10; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR 2550 

RIN 1210–AB35 

Investment Advice—Participants and 

Beneficiaries 

AGENCY: Employee Benefits Security 

Administration, Labor. 

ACTION: Proposed rule. 

SUMMARY: This document contains a 

proposed rule under the Employee 

Retirement Income Security Act, and 

parallel provisions of the Internal 

Revenue Code of 1986, relating to the 

provision of investment advice to 

participants and beneficiaries in 

individual account plans, such as 401(k) 

plans, and beneficiaries of individual 

retirement accounts (and certain similar 

plans). Upon adoption, the proposed 

rule would implement provisions of a 

statutory prohibited transaction 

exemption, and would replace guidance 

contained in a final rule, published in 

the Federal Register on January 21, 

2009, that was withdrawn by the 

Department pursuant to a Notice 

published in the Federal Register on 

November 20, 2009. Upon adoption, the 

proposed rule affects sponsors, 

fiduciaries, participants and 

beneficiaries of participant-directed 

individual account plans, as well as 

providers of investment and investment 

advice related services to such plans. 

DATES: Written comments on the 

proposed regulations should be 

submitted to the Department of Labor on 

or before May 5, 2010. 

FOR FURTHER INFORMATION CONTACT: Fred 

Wong, Office of Regulations and 

Interpretations, Employee Benefits 

Security Administration (EBSA), (202) 

693–8500. This is not a toll-free number. 

ADDRESSES: To facilitate the receipt and 

processing of comment letters, the EBSA 

encourages interested persons to submit 

their comments electronically by e-mail 

to e-ORI@dol.gov (enter into subject 

line: 2010 Investment Advice Proposed 

Rule) or by using the Federal 

eRulemaking portal at http:// 

www.regulations.gov. Persons 

submitting comments electronically are 

encouraged not to submit paper copies. 

Persons interested in submitting paper 

copies should send or deliver their 

comments to the Office of Regulations 

and Interpretations, Employee Benefits 

Security Administration, Attn: 2010 

Investment Advice Proposed Rule, 

Room N–5655, U.S. Department of 

Labor, 200 Constitution Avenue, NW., 

Washington, DC 20210. All comments 

will be available to the public, without 

charge, online at http:// 

www.regulations.gov and http:// 

www.dol.gov/ebsa and at the Public 

Disclosure Room, N–1513, Employee 

Benefits Security Administration, U.S. 

Department of Labor, 200 Constitution 

Avenue, NW., Washington, DC 20210. 

SUPPLEMENTARY INFORMATION: 

A. Background 

On January 21, 2009, the Department 

of Labor published final rules on the 

provision of investment advice to 

participants and beneficiaries of 

participant-directed individual account 

plans and to beneficiaries of individual 

retirement accounts and certain similar 

plans (IRAs) (74 FR 3822). The rules 

implement a statutory prohibited 

transaction exemption under ERISA 

Sec. 408(b)(14) and Sec. 408(g), and 

under section 4975 of the Internal 

Revenue Code of 1986 (Code),1 and also 

contain an administrative class 

exemption granting additional relief. As 

published, these rules were to be 

effective on March 23, 2009. On 

February 4, 2009, the Department 

published in the Federal Register (74 

FR 6007) an invitation for public 

comment on a proposed 60 day 

extension of the effective dates of the 

final rules in order to afford the Agency 

the opportunity to review legal and 

policy issues relating to the final rules. 

The Department also invited public 

comments on the provisions of those 

rules and on the merits of rescinding, 

modifying or retaining the rules. In 

response to this invitation, the 

Department received 28 comment 

letters.2 On March 20, 2009, the 

Department adopted a 60 day extension 

of the final rule. (See 74 FR 11847). In 

order to afford the Department 

additional time to consider the issues 

raised by commenters, the effective and 

applicability dates were further delayed 

until November 18, 2009 (74 FR 23951), 

and then until May 17, 2010 (74 FR 

59092). 

B. Comments Received 

A number of the commenters 

expressed the view that the final rule 

raises significant issues of law and 

policy, and should be withdrawn. 

Several of these commenters argued that 

the class exemption contained in the 

final rule permits financial interests that 

would cause a fiduciary adviser, and 

individuals providing investment 

advice on behalf of a fiduciary adviser, 

to have conflicts of interest, but does not 

contain conditions that would 

adequately mitigate such conflicts. They 

asserted that investment advice 

provided under the class exemption 

therefore might be tainted by the 

fiduciary adviser’s conflicts. Other 

commenters expressed concerns about 

those provisions of the rule relating to 

the ‘‘fee-leveling’’ requirement under the 

statutory exemption. In particular, some 

opined that the Department’s 

interpretation of the statutory 

exemption’s fee-leveling requirement is 

incorrect for permitting the receipt of 

varying fees by an affiliate of a fiduciary 

adviser. As a result, they argued, a 

fiduciary adviser under such a feeleveling arrangement has a conflict of 

interest, and the final rule does not 

adequately protect against investment 

advice that is influenced by the 

financial interests of the fiduciary 

adviser’s affiliates. Commenters who 

advocated retention of the final rule 

argued that it contains strong safeguards 

that would protect the interests of plan 

participants and beneficiaries. 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS