[Federal Register Volume 74, Number 185 (Friday, September 25, 2009)]
[Rules and Regulations]
[Pages 48853-48855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23158]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Part 148

[CBP Dec. 09-37]
RIN 1505-AC16


Increase in Certain Personal Duty Exemptions Extended to 
Returning U.S. Residents

AGENCIES: Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document amends title 19 of the Code of Federal 
Regulations (CFR) by making technical corrections to those regulatory 
provisions within part 148 that set forth personal duty exemption 
amounts authorized by the Harmonized Tariff Schedule of the United 
States (HTSUS). These technical corrections are necessary to conform 
title 19 of the CFR to amendments to the HTSUS effected by section 381 
of the Trade Act of 2002 and section 2004(d)(8)(A) and (B) of the 
Miscellaneous Trade and Technical Corrections Act of 2004, which 
increased personal duty exemption amounts.

DATES: The final rule is effective on September 25, 2009.

FOR FURTHER INFORMATION CONTACT: Bernarda Gilbert, Passenger 
Operations, Office of Field Operations, Customs and Border Protection, 
(202) 344-2269.

SUPPLEMENTARY INFORMATION: 

Background

I. Personal Duty Exemptions

    Generally, when an individual imports merchandise into the United 
States, the person must pay duty to Customs and Border Protection (CBP) 
on the goods. The amount of duty payable is determined by the 
merchandise's classification within the Harmonized Tariff Schedule of 
the United States (HTSUS).
    Under prescribed circumstances, the government permits an exemption 
from the payment of duty on certain articles imported by or for the 
account of any person arriving in the United States who is a returning 
resident of the United States, including American citizens who are 
residents of American Samoa, Guam, or the U.S. Virgin Islands. 
Subheadings 9804.00.65, 9804.00.70 and 9804.00.72, HTSUS, with certain 
limitations and conditions, extend such duty exemptions to articles for 
personal or household use that are acquired abroad merely as an 
incident of the foreign journey. The duty exemptions (also known as 
personal exemptions) provided for in these tariff schedule subheadings 
specify the aggregate fair retail value of merchandise that a returning 
resident may bring back to the United States without having to pay 
duty.
    It is noted that although the Commonwealth of the Northern Mariana 
Islands is not listed in these provisions, pursuant to section 603(c) 
of the Covenant to Establish a Commonwealth of the Northern Mariana 
Islands in Political Union with the United States of America, Public 
Law 94-241, 90 Stat. 263, 270, goods imported from the Commonwealth of 
the Northern Marianas are entitled to the same tariff treatment as 
imports from Guam and are therefore subject to the duty exemptions 
provided for under these subheadings.

II. Statutory Amendments

    The Trade Act of 2002 (Pub. L. 107-210, 116 Stat. 933, 19 U.S.C. 
3801) and the Miscellaneous Trade and Technical Corrections Act of 2004 
(Pub. L. 108-429, 118 Stat. 2598) amended subheadings 9804.00.65, 
9804.00.70, and 9804.00.72 of the HTSUS, in pertinent part, regarding 
the amounts of the duty exemptions, as well as the scope of those 
provisions. The amendments are as follows:
    <bullet> Section 381, within Subtitle D of the Trade Act of 2002, 
amended subheading 9804.00.65, HTSUS, by increasing from $400 to $800 
the duty exemption accorded articles for personal or household use 
accompanying returning U.S. residents.
    <bullet> Section 2004(d)(8)(A) of the Miscellaneous Trade and 
Technical Corrections Act of 2004 (Pub. L. 108-429, 118 Stat. 2598) 
amended subheading 9804.00.70, HTSUS, by increasing the duty exemption 
accorded to articles for personal or household use, whether or not the 
articles accompany the returning resident, from $1,200 to $1,600 in the 
case of a direct or indirect arrival from American Samoa, Guam, or the 
Virgin Islands of the United States, not more than $800 (increased from 
$400) of which must have been acquired elsewhere than in such locations 
(including the Commonwealth of the Northern Mariana Islands, as 
explained above). The 2004 amendment to subheading 9804.00.70, HTSUS, 
removed the restriction that ``up to $600'' may have been acquired in 
one or more beneficiary countries.
    <bullet> Section 2004(d)(8)(B) of the Miscellaneous Trade and 
Technical Corrections Act of 2004 amended subheading 9804.00.72, HTSUS, 
by increasing the duty exemption accorded to articles for personal or 
household use, whether or not accompanying the returning resident, from 
$600 to $800 in the case of a direct arrival from a beneficiary country 
of the Caribbean Basin Initiative or the Andean Trade Preference 
Program (see U.S. Note 4 to Chapter 98, HTSUS (19 U.S.C. 1202)), and 
removed the limitation that ``not more than $400 of that amount must 
have been acquired elsewhere than in beneficiary countries.''

III. Technical Corrections to the Regulations

    Within part 148 of title 19 of the Code of Federal Regulations (19 
CFR), several regulations pertain directly to or reference the duty 
exemptions set forth in the amended HTSUS subheadings. Technical 
corrections are necessary to the following regulations to conform them 
to the increased personal duty exemption amounts set forth in the 
current HTSUS: Sec. Sec.  148.12; 148.17; 148.31; 148.32; 148.33; 
148.34; 148.35; 148.36; 148.37; 148.38; 148.51; and 148.113.
    Sections 148.12(b)(1)(i)(B) and 148.33(a)(2) and (d)(3)(ii) are 
also amended by removing the reference to ``Sec.  10.191(b)(1) of this 
chapter'' as the source for the definition of ``beneficiary country'' 
for purposes of these provisions, and replacing it with a reference to 
``U.S. Note 4 to Chapter 98 of the Harmonized Tariff Schedule of the 
United States.'' This change is necessary because the definition set 
forth in 19 CFR 10.191(b)(1) is limited to those countries designated 
as beneficiary countries in accordance

[[Page 48854]]

with section 212(a)(1)(A) of the Caribbean Basin Economic Recovery Act 
(19 U.S.C. 2702(a)(1)(A)). The definition of ``beneficiary country'' 
was expanded in U.S. Note 4 to Chapter 98, HTSUS, to include products 
of countries designated as beneficiary countries for purposes of 
section 203 of the Andean Trade Preference Act (19 U.S.C. 3202). This 
document amends the regulations to reflect the correct, expanded 
definition set forth in the HTSUS.

Inapplicability of Notice and Delayed Effective Date

    Because the technical corrections set forth in this document are 
necessary to conform part 148 of title 19 of the CFR to the amendments 
to the HTSUS effected by section 381 of the Trade Act of 2002 and 
section 2004(d)(8)(A) and (B) of the Miscellaneous Trade and Technical 
Corrections Act of 2004, pursuant to 5 U.S.C. 553(b)(B), CBP finds that 
good cause exists for dispensing with notice and public procedure as 
unnecessary. For this same reason, pursuant to 5 U.S.C. 553(d)(3), CBP 
finds that good cause exists for dispensing with the requirement for a 
delayed effective date.

The Regulatory Flexibility Act

    Because this document is not subject to the notice and public 
procedure requirements of 5 U.S.C. 553, it is not subject to the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

Executive Order 12866

    As these amendments are technical corrections to the regulations to 
reflect statutory changes, these amendments do not meet the criteria 
for a ``significant regulatory action'' as specified in Executive Order 
12866.

Signing Authority

    This document is being issued in accordance with 19 CFR 0.1(a)(1).

List of Subjects in 19 CFR Part 148

    Customs duties and inspection, Declarations, Reporting and 
recordkeeping requirements, Taxes.

Amendment to the Regulations

0
For the reasons stated above, part 148 of title 19 of the Code of 
Federal Regulations (19 CFR part 148) is amended as set forth below.

PART 148--PERSONAL DECLARATIONS AND EXEMPTIONS

0
1. The authority citation for part 148 continues to read as follows:

    Authority:  19 U.S.C. 66, 1496, 1498, 1624. The provisions of 
this part, except for subpart C, are also issued under 19 U.S.C. 
1202 (General Note 3(i), Harmonized Tariff Schedule of the United 
States);
    Section 148.21 also issued under 19 U.S.C. 1461, 1462.
    Section 148.22 also issued under 19 U.S.C. 1629;
    Sections 148.43, 148.51, 148.63, 148.64, 148.74 also issued 
under 19 U.S.C. 1321;
    Section 148.87 also issued under 22 U.S.C. 288.


0
2. Section 148.11 is amended by removing the word ``Customs'' each 
place it appears and adding in its place the term ``CBP'', and by 
removing the word ``shall'' and adding in its place the word ``must''.

0
3. In Sec.  148.12:
0
a. Paragraph (a) is amended by removing the word ``Customs'' and adding 
in its place the term ``CBP'';
0
b. Paragraph (b)(1)(i)(A) is amended by removing ``$400'' and adding in 
its place ``$800'';
0
c. Paragraphs (b)(1)(i)(B) and (C) are revised; and
0
d. Paragraph (c) is amended by removing the word ``Customs'' where it 
appears and adding in each place the term ``CBP''.
    The revisions to Sec.  148.12 read as follows.


Sec.  148.12  Oral declarations.

* * * * *
    (b) * * *
    (1) * * *
    (i) * * *
    (B) $800 in the case of a direct arrival from a beneficiary country 
as defined in U.S. Note 4 to Chapter 98, Harmonized Tariff Schedule of 
the United States (19 U.S.C. 1202); or
    (C) $1,600 in the case of a direct or indirect arrival from 
American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, 
or the Virgin Islands of the United States, not more than $800 of which 
must have been acquired elsewhere than in such locations.
* * * * *

0
4. In Sec.  148.17:
0
a. Paragraph (a) is amended by removing the word ``shall'' wherever it 
appears and adding in each place the word ``must'', and by removing the 
word ``Customs'' wherever it appears and adding in each place the term 
``CBP'';
0
b. Paragraph (b) is amended by removing the word ``Customs'' wherever 
it appears and adding in each place the term ``CBP'', and by removing 
the language ``$400, $600, or $1,200'' and adding in its place, ``$800 
or $1,600''; and
0
c. Paragraph (c) is amended by removing the word ``Customs'' and adding 
in its place the term ``CBP'', by removing the language ``$400, $600, 
or $1,200'' and adding in its place, ``$800 or $1,600'', and by 
removing the word ``shall'' and adding in its place the word ``will''.

0
5. Section 148.31(b) is amended by removing the language ``$400, $600, 
or $1,200'' and adding in its place the language,''$800 or $1,600''.
0
6. In Sec.  148.32:
0
a. Paragraph (a) is amended by removing the word ``shall'' and adding 
in its place the word ``will'';
0
b. Paragraph (b) is amended by removing the word ``shall'' wherever it 
appears and adding in each place the word ``will'', and by removing the 
word ``Customs'' wherever it appears and adding in each place the term 
``CBP'';
0
c. Paragraph (c) is amended, in the second sentence, by removing the 
word ``shall'' and adding in its place the word ``will'' and, in the 
fourth sentence, by removing the word ``shall'' and adding in its place 
the word ``must''; and
0
d. The introductory text to paragraph (d) is amended by removing the 
word ``shall'' and adding in its place the word ``will'' and, in 
paragraph (d)(2), by removing the language ``$400, $600, or $1,200'' 
and adding in its place the language, ``$800 or $1,600''.

0
7. In Sec.  148.33:
0
a. The introductory text to paragraph (a) is amended by removing the 
word ``shall'' and adding in its place the word ``must'';
0
b. Paragraph (a)(1) is amended by removing the language ``$400'' and 
adding in its place the language, ``$800'';
0
c. Paragraphs (a)(2) and (a)(3) are revised;
0
d. Paragraph (b) is amended by removing the language ``$400, $600, or 
$1,200'' and adding in its place the language, ``$800 or $1,600'', and 
by removing the word ``shall'' wherever it appears and adding in each 
place the word ``will'';
0
e. Paragraph (d)(2) is amended by removing the word ``shall'' and 
adding in its place the word ``will'';
0
f. Paragraph (d)(3)(i) is amended by removing the words ``1 liter of 
which shall have been'' and adding in their place the words ``1 liter 
of which was'', and by removing the words ``4 liters of which shall 
have been'' and adding in their place the words ``4 liters of which 
were'';
0
g. Paragraph (d)(3)(ii) is amended by removing the words ``Sec.  
10.191(b)(1) of this chapter'' and adding in their place the language, 
``U.S. Note 4 to Chapter

[[Page 48855]]

98, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202)''; 
and
0
h. Paragraph (f) is amended by removing the language ``$400, $600, or 
$1,200'' and adding in its place the language, ``$800 or $1,600''.
    The revisions to Sec.  148.33 read as follows:


Sec.  148.33  Articles acquired abroad.

    (a) * * *
    (2) $800 in the case of a direct arrival from a beneficiary 
country, as defined in U.S. Note 4 to Chapter 98, Harmonized Tariff 
Schedule of the United States, whether or not the articles accompany 
the returning resident. Articles acquired elsewhere than in such 
beneficiary country that do not accompany the returning resident are 
not entitled to the duty exemption; or
    (3) $1,600 in the case of a direct or indirect arrival from 
American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, 
or the Virgin Islands of the United States, whether or not the articles 
accompany the returning resident, not more than $800 of which may have 
been acquired elsewhere than in such locations. Articles acquired 
elsewhere than in such insular possessions that do not accompany the 
returning resident are not entitled to the duty exemption.

0
8. In Sec.  148.34:
0
a. Paragraph (a) is amended by removing the language ``$400, $600, or 
$1,200'' wherever it appears and adding in each place the language, 
``$800 or $1,600'', and by removing the word ``shall'' where is appears 
and adding in each place the word ``will''; and
0
b. The introductory text to paragraph (b) is amended by removing the 
words ``shall include'' and adding in their place the word 
``includes''.

0
9. In Sec.  148.35:
0
a. The heading text to paragraph (a) is revised to read, ``Requirements 
for allowance of $800 or $1,600 exemption.'';
0
b. Paragraph (a) is amended, in the first sentence, by removing the 
language ``$400, $600, or $1,200'' and adding in its place the language 
``$800 or $1,600'' and by removing the word ``shall'' and adding in its 
place the word ``will'' and, in the second sentence, by removing the 
reference to ``$400'' and adding in its place ``$800''.
0
c. The heading text to paragraph (b) is revised to read, ``Not required 
for allowance of $1,600 exemption on return from the Virgin Islands.'';
0
d. Paragraph (b) is amended by removing the reference to ``$1,200'' and 
adding in its place ``$1,600''; and
0
e. Paragraph (c) is amended by removing the word ``shall'' and adding 
in its place the word ``will''.

0
10. In Sec.  148.36:
0
a. Paragraph (a) is amended by removing the language ``$400, $600, or 
$1,200'' wherever it appears and adding in each place the language 
``$800 or $1,600'', and by removing the word ``shall'' wherever it 
appears and adding in each place the word ``will''; and
0
b. Paragraph (b) is amended by removing the word ``shall'' and adding 
in its place the word ``will'', and by removing the language ``$400, 
$600, or $1,200'' and adding in its place the language ``$800 or 
$1,600''.

0
11. In Sec.  148.37:
0
a. Paragraph (a) is amended by removing the language ``$400, $600, or 
$1,200'' and adding in its place the language, ``$800 or $1,600'', by 
removing the word ``shall'' and adding in its place the word ``will'' 
and, in the last sentence, by removing the words ``Customs matters'' 
and adding in their place the words ``customs matters'' and by removing 
the words ``Customs supervision'' and adding in their place the words 
``CBP supervision'';
0
b. Paragraph (b) is amended, in the first sentence, by removing the 
language ``$400, $600, or $1,200'' and adding in its place the 
language, ``$800 or $1,600'', by removing the word ``shall'' and adding 
its place the word ``must'', and by removing the word ``Customs'' each 
place it appears and adding the term ``CBP''; and, in the second 
sentence, by removing the word ``shall'' and adding in its place the 
word ``will'', and by removing the word ``Customs'' and adding in its 
place the term ``CBP''; and
0
c. Paragraph (c) is amended by removing the language ``$400, $600, or 
$1,200'' wherever it appears and adding in each place the language, 
``$800 or $1,600'', by removing the word ``Customs'' wherever it 
appears and adding in each place the term ``CBP'', and by removing the 
word ``shall'' wherever it appears and adding in each place the word 
``will''.

0
12. Section 148.38 is amended by removing the language ``$400, $600, or 
$1,200'' and adding in its place the language, ``$800 or $1,600''.

0
13. In Sec.  148.51:
0
a. Paragraph (a)(2) is amended by removing the language ``$400, $600, 
or $1,200'' and adding in its place the language, ``$800 or $1,600''; 
and
0
b. The introductory text to paragraph (b), and paragraph (b)(2), are 
amended by removing the word ``shall'' wherever it appears and adding 
in each place the word ``will''.

0
14. In Sec.  148.113(a): the number ``$1,200'' is removed and the 
number ``$1,600'' is added in its place; the word ``shall'' is removed 
wherever it appears and the word ``must'' is added in each place, and; 
the word ``Customs'' is removed wherever it appears and the term 
``CBP'' is added in each place.

Jayson P. Ahern,
Acting Commissioner, U.S. Customs and Border Protection.
    Approved: September 21, 2009.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. E9-23158 Filed 9-24-09; 8:45 am]
BILLING CODE 9111-14-P