2868 Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / Rules and Regulations

8See 35 FR 14328 (1970). Under this law, sellers,

other than charitable organizations soliciting

contributions, may not ship unordered merchandise

to consumers unless the recipient has expressly

agreed to receive it or unless it is clearly identified

as a gift, free sample, or the like. In addition, sellers

cannot try to obtain payment for or the return of the

unordered merchandise. Consumers who receive

unordered merchandise are legally entitled to treat

the merchandise as a gift. The Postal Reorganization

Act refers to ‘‘mailing’’ of unordered merchandise.

The Commission, however, has explained that the

application of Section 5 of the FTC Act to such

practices is not limited to unordered merchandise

distributed through the U.S. mail, 43 FR 4113

(1978).

9E.g., Hachette Book Group USA, Inc., No.

39CV00116 (D. Conn. 1994) (settlement in which

FTC charged that defendants failed to notify

consumers that they would receive yearbooks or

supplements unless they returned a mail

cancellation card, failed to obtain consumers’

agreement to return cancellation coards if they did

not want the merchandise, and mailed merchandise

and bills to consumers who had not placed orders;

settlement included a $200,000 civil penalty); Field

Publications Ltd. Partnership, No. H–90–932 PCD

(D. Conn. 1990) (settlement in which FTC charged

that Field shipped unordered books to subscribers

who had agreed to receive another series of books

as part of a continuity plan; settlement included a

$175,000 civil penalty); Standard Reference Library,

Inc. 77 F.T.C. 969, 976 (1970) (consent order

prohibited respondents from representing that

consumers’ failure to return rejection cards or take

any affirmative action to prevent the shipment of

merchandise constituted a request to receive

merchandise where consumers had not agreed to

take on that obligation).

billing for, unordered merchandise

constitutes a violation of section 5 of the

FTC Act.8 Prior cases brought by the

Commission to enforce the Postal

Reorganization Act and Section 5 of the

FTC Act provide guidance to industry

regarding the illegality of sending and

attempting to collect for unordered

merchandise.9

Second, guides are particularly useful

when they resolve uncertainty over

what claims are likely to be considered

‘‘unfair or deceptive’’ under Section 5.

Several of the provisions in Guides,

however, do little more than advise

against making untrue or deceptive

claims, or failing to disclose material

information where silence would be

deceptive.

Moreover, the Commission

understands from the comments that the

industry is quickly evolving into

electronic media and increasingly using

licensing techniques to distribute legal

publications, which present new

technological and intellectual property

issues for consideration. Thus, although

the Guides provide overly detailed

suggestions regarding presale

disclosures, they are so narrowly

focused that they do not include these

or other new and perhaps more

important areas of concern to sellers and

purchasers.

Third, there appears to be no

justification for singling out this

particular industry for unusually

detailed and specific advice, or why

legal reference material purchasers are

in greater need of protection than

purchasers in other industries. Industry

associations, or purchaser associations

such as AALL or AALS, can adopt

guides of their own to educate sellers

and purchasers about the information

purchasers of legal reference materials

need to make purchasing decisions.

Indeed, eliminating the Guides may

provide the incentive for these

associations to develop their own guides

that address their members’ most

important concerns.

Based on comments, the Commission

has concluded that there no longer is a

need for the Guides. The Commission,

therefore, has rescinded the Guides.

List of Subjects in 16 CFR Part 256

Advertising, Law, Trade practices.

PART 256—[REMOVED]

The Commission, under the authority

of Sections 5(a) and 6(g) of the Federal

Trade Commission Act, 15 U.S.C. 45(a)

and 46(g), amends chapter I of title 16

in the Code of Federal Regulations by

removing part 256.

By direction of the Ccommission.

Donald S. Clark,

Secretary.

[FR Doc. 00–994 Filed 1–18–00; 8:45 am]

BILLING CODE 6750–01–M

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 4

[T.D. 00–4 ]

RIN 1515–AC29

Boarding of Vessels in the United

States

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: Final rule.

SUMMARY: This document, as a primary

focus, amends the Customs Regulations

regarding the boarding of vessels

arriving in ports of the United States.

These amendments are made to

implement amendments to the

underlying statutory authority enacted

as part of the Customs Modernization

Act, as well as to reflect policy

determinations necessitated as a result

of those amendments. To this same end,

certain general amendments are made to

the regulations concerning vessel entry

and clearance as well as the issuance of

permits to lade and unlade

merchandise.

EFFECTIVE DATE: February 18, 2000.

FOR FURTHER INFORMATION CONTACT:

Legal aspects: Larry L. Burton, Office of

Regulations and Rulings, 202–927–1287.

Operational aspects: Robert Watt,

Office of Field Operations, 202–927–

3654.

SUPPLEMENTARY INFORMATION:

Background

On December 8, 1993, amendments to

certain Customs and navigation laws

became effective as the result of the

North American Free Trade Agreement

Implementation Act (Pub. L. 103–182),

Title VI of which is popularly known as

the Customs Modernization Act (the

Act). Sections 653 and 656 of the Act

significantly amended the statutes

governing the entry and the lading and

unlading of vessels in the United States.

These operations are governed,

respectively, by sections 434 and 448 of

the Tariff Act of 1930, as amended (19

U.S.C. 1434 and 1448).

Prior to the subject amendments, the

entry of vessels of the United States and

vessels of foreign countries had been

governed by separate statutes (19 U.S.C.

1434 and 1435), neither of which

included elements concerning

preliminary vessel entry or the boarding

of vessels. The Act repealed 19 U.S.C.

1435 and amended 19 U.S.C. 1434 to

provide for the entry of American and

foreign-documented vessels under the

same statute. Additionally, the amended

19 U.S.C. 1434 now provides authority

for the promulgation of regulations

regarding preliminary vessel entry, and

while neither mandating boarding for all

vessels nor specifying that optional

boarding must be accomplished at any

particular stage of the vessel entry

process, the amended law does require

that a sufficient number of vessels be

boarded to ensure compliance with the

laws enforced by the Customs Service.

The general authority provided for

Customs to board vessels is found in

section 581, Tariff Act of 1930, as

amended (19 U.S.C. 1581). Prior to

amendment, 19 U.S.C. 1448 as

previously cited had linked the granting

of preliminary vessel entry to a

mandatory boarding requirement and

physical presentation of manifest

documents to a Customs boarding

officer. The amended 19 U.S.C. 1448 no

longer contains provisions regarding

preliminary vessel entry, vessel

boarding, or manifest presentation, all of

which are now provided for in other

statutes. The statute now provides that

Customs may electronically issue

permits to lade or unlade merchandise

Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / Rules and Regulations 2869

pursuant to an authorized data

interchange system, as an alternative to

physical document presentation.

Accordingly, on July 6, 1998, a notice

of proposed rulemaking was published

in the Federal Register (63 FR 36379)

soliciting comments to amend the

Customs Regulations in order to

properly implement the foregoing

statutory amendments, as well as certain

other statutory changes and revised

Customs interpretations, governing the

boarding of vessels arriving in ports of

the United States, vessel entry and

clearance, and the issuance of permits to

lade and unlade merchandise. The

specific Customs Regulations affected

were §§ 4.1, 4.3, 4.8, 4.9, 4.16, 4.30,

4.60, 4.61, 4.68 and 4.70 (19 CFR 4.1,

4.3, 4.8, 4.9, 4.16, 4.30, 4.60, 4.61, 4.68

and 4.70).

Discussion of Comments

Nine comments were received in

response to the notice of proposed

rulemaking. There were two comments

received from representatives of Federal

Government agencies, four from trade

associations representing vessel owners

and operators, one from a vessel

operating company, one from an

interested individual, and one from a

Member of Congress. A discussion of

the comments follows.

Comment

Three commenters suggested, in

connection with proposed § 4.1, that

Customs board every vessel arriving in

a United States port, whether directly

from a foreign location or pursuant to a

permit to proceed from another

domestic port. Each of the commenters

believes that Customs has been boarding

and searching every vessel and that

ceasing the practice would compromise

our enforcement mission.

Customs Response

Customs has never boarded and

searched every vessel, which presently

number approximately 95,000 arrivals a

year. Confusion concerning this matter

could be the result of certain procedures

which were followed regarding vessel

arrivals. Prior to the most recent

amendments, statute and regulations

required every vessel to be boarded by

Customs for the purpose of receiving a

vessel’s cargo declaration, and Customs

Form 1300 (Master’s Oath of Vessel in

Foreign Trade). Once Customs received

the named documents, preliminary

entry was granted that would permit the

vessel to unlade prior to completing

formal entry. Customs might also have

performed formal entry on board a

vessel. Neither procedure entailed a

search of a vessel nor an examination of

cargo. Both procedures were ministerial

acts involving the routine review of

documents and the collection of fees.

At the time, the outlined procedures

were important aspects of the Customs

enforcement mission since there was no

alternative means to obtain a vessel’s

cargo declaration. Customs needs cargo

declarations, in part, to ensure that

importers make proper entry of each

shipment of goods aboard a vessel. With

the advent of advanced technology

including automation, facsimile

transmission, and express delivery

service, Customs now regularly requires

submission of cargo declarations in

advance of vessel arrival for

prescreening enforcement purposes.

The present amendments are

replacing the outdated procedures

outlined above, which were resource

intensive and lacked significant

enforcement results. Resources

conserved by eliminating the prior

boarding policy will enable Customs to

allocate more toward doing meaningful

comprehensive boardings with

examination of high risk vessels and

cargoes.

Comment

Four commenters expressed the

opinion that allowing only 24 hours

following arrival to make formal entry,

as set forth in proposed § 4.3, was

restrictive and unnecessary.

Customs Response

Customs agrees with this comment

and will retain the current 48-hour time

limit to make formal entry in § 4.3(a).

Comment

With reference to proposed § 4.3, two

commenters expressed concern about

potentially being charged both

‘‘expenses incurred,’’ meaning

reimbursable expenses, and Commercial

Vessel User Fees in connection with a

single vessel arrival.

Customs Response

The phrase ‘‘expenses incurred,’’

found in § 4.3(b)(2), as proposed, is

stated in the context of a port director

allowing the provision of services

outside the limits of a port of entry.

Current user fee law under 19 U.S.C.

58c(a)(1) and 19 U.S.C. 58c(c)(2)

requires the collection of user fees to

cover costs of services provided to

vessels which arrive at a port of entry.

Any services provided outside of a port

of entry are considered extraordinary

and involve expending resources

beyond those expected to be recovered

through user fee collections (19 CFR

24.17). Therefore, Customs may collect

both user fees and other expenses

during a calendar year if services are

requested both within and outside of

port boundaries. It may even be

necessary to collect both fees during the

same voyage if a vessel requests services

outside of the limits of a port and then

moves inside the port limits to unlade

or request additional services such as

vessel clearance.

Comment

Two commenters expressed concern

with the prescribed time periods

allowed for presentation of necessary

documents for preliminary entry, and

stated that if the time periods are not

met, parties would have to request

formal entry on board vessels at time of

arrival in order to avoid delays in the

unlading of cargoes. Concern was

expressed here with reference to the

discretionary authority vested in port

directors to deny requests for formal

entry aboard a vessel at time of arrival.

The discretion is expressed in proposed

§ 4.3(b)(2), which would allow port

directors to take local resources into

consideration when determining

whether to allow formal entry of a

vessel at a place other than the

customhouse. The vessel operating

public has become accustomed to the

routine meeting of vessels upon arrival

and may consider that any reduction in

this service will cause unnecessary

delays. One of the commenters

suggested that the current entry

procedures around the country work

well and should not be changed.

Customs Response

It is necessary to first address the

current procedures employed around

the country regarding vessel entry.

Those procedures caused Customs to

review the entire vessel entry process.

There is a substantial lack of uniformity

around the country when it comes to the

entry of vessels. At many locations, it is

the rare circumstance where Customs

performs formal entry aboard a vessel

while at other locations formal entry is

performed aboard nearly every vessel

which arrives in port.

In addition, the procedures for

granting preliminary entry vary widely.

At many locations preliminary entry is

granted merely by submitting a CF 3171

and reporting arrival. At other locations,

an inspector has to board a vessel and

receive those documents required by

§ 4.7. We have designed the new policy

to create more uniformity. With the new

procedures at all Customs locations,

except in those instances where

Customs boards a vessel for compliance

or enforcement reasons, if a vessel

operator can supply required

documentation within prescribed time

2870 Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / Rules and Regulations

limits the vessel will obtain permission

to unlade upon arrival without the

requirement that an inspector board the

vessel. Evidence suggests that most

vessels currently present required

documents within prescribed time

limits. Once preliminary entry is

granted the 48-hour entry period will

allow ample opportunity for a vessel

operator to come into the customhouse

to conduct formal entry.

There may be circumstances when the

Customs office is closed and a vessel

operator cannot provide the CF 3171 or

CF 1302 within the prescribed times in

order to obtain preliminary entry. In

such cases, the port director has the

discretion to perform formal entry not

only aboard vessels at time of arrival,

but at other locations and outside of

normal business hours. This might be

accomplished by assigning a Customs

employee outside normal business

hours to locations near places of arrival.

Vessel operators might then come to

that location in order to obtain formal

entry. To the extent possible, ports will

attempt to accommodate legitimate

needs to allow entry outside of normal

business hours.

Comment

A separate concern was also

expressed in connection with proposed

§ 4.3(b)(2) about a port director’s

discretion to permit vessel entry at

places other than the customhouse

including locations outside actual port

limits. The commenter states that the

regulation as written gives the public

and the maritime industry the false

impression that Customs entry outside

the designated port of entry relieves

them of other federal agency clearance

requirements. The commenter believes

that the proposed procedures could lead

parties to either unwittingly or

intentionally avoid the clearance

requirements of other federal agencies.

Customs Response

The proposed regulation was written

to formalize a practice which had

become standard at many Customs port

locations. Customs currently permits the

procedure because many locations

where vessels unlade cargo happen to

be outside the boundaries of ports of

entry. To deny entry and unlading at

such locations could unduly burden

commerce. Customs does recognize the

legitimate missions fulfilled by other

federal agencies, and our final

regulations make it clear that we are not

supplanting the roles of those other

entities. The United States Immigration

and Naturalization Service (INS), as

well as the United States Department of

Agriculture’s Animal Plant Health

Inspection Service (APHIS), and Plant

Protection and Quarantine (PPQ) are

notable examples of such entities.

Accordingly, we are amending the

language as proposed in § 4.3(b)(2) to

make it clear that fulfillment of Customs

requirements does not relieve parties of

complying with requirements which are

enforced by other agencies.

Comment

Three commenters expressed concern

about the requirement in proposed § 4.8

that a complete manifest, as prescribed

in § 4.7, be presented in order to obtain

a grant of preliminary entry at the time

of or subsequent to vessel arrival.

Concern was also expressed that the

same section requires the submission of

Customs Form 3171 and the CF 1302, or

their electronic equivalent, 48 hours in

advance in order to obtain a grant of

preliminary entry prior to vessel arrival.

For vessels on voyages shorter than two

days, submission is allowed at any time

prior to arrival in order to receive

preliminary entry in advance of arrival.

It is the opinion of the commenters that

vessel operators may not always have

required information available within

the prescribed time limitations.

Customs Response

With respect to the requirement that

a complete manifest be available in

connection with granting preliminary

entry at or subsequent to arrival, it must

be pointed out that § 4.7 currently

requires that every arriving vessel have

on board a complete manifest. A

complete manifest includes such

documents as the crew list, ships store’s

list, passenger list, cargo declaration,

and crew effect’s list. Since these

documents have been and continue to

be required, no additional burden is

placed upon vessel operators if

preliminary entry is conditioned upon

presentation of these documents to

Customs. Further, the submission of

these documents allows Customs to

combine preliminary and formal entry,

and many ports have been combining

preliminary and formal entry which

would entail presentation of all of the

named documents. There has been no

evidence of any significant delays in

vessel unladings as a result.

The CF 1302 and CF 3171 information

is required 48 hours prior to arrival in

order to be granted advanced

preliminary entry because Customs

needs advance notification of a vessel’s

arrival and an adequate description of

the cargo on board in order to expedite

entry of the vessel and release of the

cargo. This amendment is merely

requiring by regulation something

which has been in practice by much of

the vessel carrier community. Due to

this practice, Customs has been able to

conduct needed pre-arrival review of

manifest information, enabling Customs

to identify, in advance of arrival, which

cargo needs to be examined. The benefit

to the trade community is that vessel

operators are immediately informed as

to which shipments need to be

examined, instead of waiting several

days after vessel arrival for examination

requirements to be fulfilled.

It may be that some carriers will have

to modify their procedures in order to

obtain grants of advanced preliminary

entry. One of the commenters suggested

that non-automated carriers may not be

able to participate in the electronic

submission of documents. If a particular

carrier does not wish to automate, there

are designated service centers across the

United States which are available to

transmit the cargo declaration

information to Customs for them.

Interested parties may obtain a list of

service centers by contacting Ms. Becky

Lally, Customs Office of Information

Technology, at (301) 210–6368. Customs

has no information regarding any fees

which these service centers may charge.

Comment

Two commenters had many and

varied observations regarding the entry

and clearance requirements for

American-flag vessels with in-bond

cargoes aboard, as set forth in proposed

§§ 4.9 and 4.61, respectively. Both

commenters stated that Customs should

not require such vessels to have to enter

and clear, with one suggesting that the

requirements would serve no practical

purpose. One stated that the Customs

laws and regulations have never before

imposed such requirements, and that

not imposing any changes to in-bond

control procedures regarding similar rail

or truck movements amounts to unequal

protection under the law.

It was suggested that the proposed

requirements were contrary to the

amended statutory law in that Congress

intended that an in-bond control

transaction would meet the definition of

entered merchandise. Concern was also

expressed regarding the procedural

requirements which would be imposed

upon vessels to present in-bond or bill

of lading numbers for in-bond cargo,

stating that a carrier may not even know

whether in-bond cargo is aboard a

vessel. It was emphasized that the initial

bonded carrier already provides cargo

information to Customs through existing

in-bond procedures, and that asking for

it again would be contrary to the

Paperwork Reduction Act. Finally, the

point was made that the new procedures

would place an undue financial burden

Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / Rules and Regulations 2871

on American vessels carrying in-bond

shipments, such as the payment of user

fees and the cost of hiring vessel agents

to deal with Customs.

Customs Response

By amending the laws concerning

vessel entry and clearance, the

Congress, not Customs, for the first time

placed the requirements under

discussion on American-flag vessels

carrying merchandise on in-bond

movements. No laws applicable to rail

or truck traffic were either enacted or

amended in a similar fashion; thus, the

focus of our regulatory amendments is

on vessels.

Customs agrees with the commenter

that the production of bills of lading or

Immediate Transportation documents

should not be required under the entry

and clearance procedures. Instead, the

documentary requirements for entry and

clearance for these vessels will be

satisfied by presenting to Customs a

completed Customs Form 1301 (General

Declaration). The General Declaration is

primarily required to provide Customs

with the necessary information to record

all vessel entries and clearances on the

Customs Forms 1400 and 1401,

respectively, and to make that record

available for public inspection.

Accordingly, §§ 4.9(b) and 4.61(b) are

changed to reflect that the completed

Customs Form 1301 (General

Declaration) will be acceptable instead

of requiring the production bills of

lading or Immediate Transportation

documents. However, this in no way

limits the authority of a Customs officer

to demand production of any

documents or papers considered

necessary for the proper inspection and

examination of a vessel and its cargo or

passengers as provided in 19 U.S.C.

1581(a). Sections 4.9(b) and 4.61(b) are

further changed to make this clear.

With respect to perceived financial

burdens, 19 U.S.C. 58(c) specifically

requires that Customs collect fees for

services in connection with the arrival

of a vessel. Customs, through this

rulemaking, is affording the domestic

vessel industry as much relief as

possible given the constraints of the

statutes. For American-flag vessels

transporting in-bond merchandise, all

that will be necessary is for such vessels

to report arrival or departure, supply

Customs with completed Customs Form

1301 (General Declaration), and pay

Customs user fees if applicable. As to

the user fee collection, vessel operators

need only present payment to Customs

at the time of arrival. Payment upon

each arrival may be avoided by

prepayment of the annual fee maximum,

as presently allowed.

Comment

One commenter asked that the term

‘‘merchandise’’ be defined by Customs,

for purposes of proposed § 4.9, to mean

foreign merchandise for which entry has

not been made.

Customs Response

The term ‘‘merchandise’’, for Customs

purposes, is already defined by statute

(19 U.S.C. 1401(c)) as meaning goods,

wares, and chattels of every description.

Comment

One commenter urged that the

requirement for deposit of a vessel’s

document with Customs or a foreign

consular office be removed from

proposed § 4.9(c) as no longer needed.

Customs Response

Prior to amendments made by the

Customs Modernization Act, there had

been authority under 19 U.S.C. 1434

and 1435 to require operators of

American and foreign vessels to deposit

their ship’s registers or documents with

Customs until vessel clearance. Section

1437 of title 19, United States Code (19

U.S.C. 1437), which had provided for

the return to the master or owner of an

American or foreign vessel’s register or

document upon vessel clearance, was

repealed without replacement by that

same Act. Still operative, however, is

section 1438 of title 19, United States

Code (19 U.S.C. 1438), which was

amended by the Act. As amended,

section 1438 provides for a penalty to be

issued against any foreign consul

returning to the master the register or

document of a foreign vessel deposited

with the consul prior to the vessel

receiving clearance from Customs. The

result of the amendments and repeals

affecting sections 1434, 1435, 1437, and

1438 is that Customs will require an

operator of a foreign-flag vessel to

surrender the register or document to

either Customs or the foreign consul of

that country.

Comment

One commenter inquired as to

whether the collection of shipping

articles agreements for American-flag

vessels under proposed § 4.61(c)(9) is

still necessary.

Customs Response

The requirement that shipping articles

be presented before the grant of

clearance to such vessels is statutory (46

U.S.C. App. 10314(d)) and must

continue to be complied with.

Conclusion

In view of the foregoing, and

following careful consideration of the

comments received and further review

of the matter, Customs has concluded

that the proposed amendments with the

modifications discussed above should

be adopted.

Additional Changes

In addition, the requirement for a

master’s oath on Customs Form 1300 is

removed from §§ 4.9(a) and 4.61(a),

inasmuch as the underlying statutory

authority for this, 19 U.S.C. 282, was

repealed by section 690(a)(2) of the

Customs Modernization Act, Pub. L.

103–182. Also, § 4.60(a)(4) is changed,

consistent with statutory law (46 U.S.C.

App. 91), to fully reflect those vessels

for which Customs clearance must be

obtained.

Regulatory Flexibility Act and

Executive Order 12866

This final rule amends the Customs

Regulations principally in order to

accurately reflect and implement

changes to the underlying statutory

authority regarding the boarding of

vessels arriving in ports of the United

States. To this same end, certain general

amendments are made to the regulations

concerning vessel entry and clearance as

well as those concerning issuance of

permits to lade and unlade

merchandise. As such, under the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.), it is certified that the

amendments will not have a significant

economic impact on a substantial

number of small entities. Accordingly,

the amendments are not subject to the

regulatory analysis or other

requirements of 5 U.S.C. 603 and 604.

Nor does this document meet the

criteria for a ‘‘significant regulatory

action’’ as specified in E.O. 12866.

Paperwork Reduction Act

The collections of information

referenced in this final rule have

previously been reviewed and approved

by the Office of Management and

Budget (OMB) in accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. 3507) and assigned the following

OMB Control Numbers:

1515–0013—Application-PermitSpecial License, Unlading-LadingOvertime Services (Customs Form

3171);

1515–0062—General Declaration

(Customs Form 1301);

1515–0078—Cargo Declaration

(inward and outward) (Customs Form

1302); and 1515–0144—Customs Bond

Structure (Customs Form 301 and

Customs Form 5297).

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

2872 Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / Rules and Regulations

unless the collection of information

displays a valid control number

assigned by OMB. This document

restates the collections of information

without substantive change.

Comments concerning suggestions for

reducing the burden of collections of

information should be sent to the

Regulations Branch, Office of

Regulations and Rulings, U.S. Customs

Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, D.C.

20229. A copy should also be sent to

U.S. Customs Service, Information

Services Group, Attention: J. Edgar

Nichols, Room 3.2–C, 1300

Pennsylvania Avenue, NW., 3rd Floor,

Washington, D.C. 20229.

Drafting Information

The principal author of this document

was Larry L. Burton, Office of

Regulations and Rulings, U.S. Customs

Service. However, personnel from other

offices participated in its development.

List of Subjects in 19 CFR Part 4

Customs duties and inspection, Entry,

Inspection, Merchandise, Reporting and

recordkeeping requirements, Vessels.

Amendments to the Regulations

Part 4, Customs Regulations (19 CFR

part 4), is amended as set forth below.

PART 4—VESSELS IN FOREIGN AND

DOMESTIC TRADES

1. The general authority citation for

part 4 as well as the specific authority

citations for §§ 4.3, 4.7, 4.8 and 4.30

continue to read as follows, while the

specific authority citations for §§ 4.1,

4.9 and 4.68 are revised, and a specific

authority citation for § 4.61 is added in

appropriate numerical order, to read as

follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66,

1431, 1433, 1434, 1624; 46 U.S.C. App. 3, 91;

Section 4.1 also issued under 19

U.S.C. 1581(a); 46 U.S.C. App. 163;

* * * * *

Section 4.3 also issued under 19

U.S.C. 288, 1441; 46 U.S.C. App. 111;

* * * * *

Section 4.7 also issued under 19

U.S.C. 1581(a); 46 U.S.C. App. 883a,

883b;

* * * * *

Section 4.8 also issued under 19

U.S.C. 1448, 1486;

Section 4.9 also issued under 42

U.S.C. 269;

* * * * *

Section 4.30 also issued under 19

U.S.C. 288, 1446, 1448, 1450–1454,

1490;

* * * * *

Section 4.61 also issued under 46

U.S.C. App. 883;

* * * * *

Section 4.68 also issued under 46

U.S.C. App. 817d, 817e;

* * * * *

2. Section 4.1 is amended by revising

paragraph (a) to read as set forth below;

and by removing paragraph (b) and

redesignating paragraphs (c), (d), (e), (f),

and (g), as paragraphs (b), (c), (d), (e)

and (f), respectively:

§ 4.1 Boarding of vessels; cutter and dock

passes.

(a) Every vessel arriving at a Customs

port will be subject to such supervision

while in port as the port director

considers necessary. The port director

may detail Customs officers to remain

on board a vessel to secure enforcement

of the requirements set forth in this part.

Customs may determine to board as

many vessels as considered necessary to

ensure compliance with the laws it

enforces.

* * * * *

3. Part 4 is amended by removing and

reserving Footnote 1.

4. Section 4.3 is revised to read as

follows:

§ 4.3 Vessels required to enter; place of

entry.

(a) Formal entry required. Unless

specifically excepted by law, within 48

hours after the arrival at any port or

place in the United States, the following

vessels are required to make formal

entry:

(1) Any vessel from a foreign port or

place;

(2) Any foreign vessel from a domestic

port;

(3) Any vessel of the United States

having merchandise on board which is

being transported in-bond (not

including bonded ship’s stores or

supplies), or foreign merchandise for

which entry has not been made; or

(4) Any vessel which has visited a

hovering vessel as defined in 19 U.S.C.

1401(k), or has delivered or received

merchandise or passengers while

outside the territorial sea.

(b) Completion of entry. (1) When

vessel entry is to be made at the

customhouse, either the master,

licensed deck officer, or purser may

appear in person during regular working

hours to complete preliminary or formal

vessel entry; or necessary documents

properly executed by the master or other

authorized officer may be delivered at

the customhouse by the vessel agent or

other personal representative of the

master.

(2) The appropriate Customs port

director may permit the entry of vessels

to be accomplished at locations other

than the customhouse, and services may

be requested outside of normal business

hours. Customs may take local resources

into consideration in allowing formal

entry to be transacted on board vessels

or at other mutually convenient

approved sites and times within or

outside of port limits. When services are

requested to be provided outside the

limits of a Customs port, the appropriate

port director to whom an application

must be submitted is the director of the

port located nearest to the point where

the proposed services would be

provided. That port director must be

satisfied that the place designated for

formal entry will be sufficiently under

Customs control at the time of entry,

and that the expenses incurred by

Customs will be reimbursed as

authorized. It may be required that

advance notice of vessel arrival be given

as a condition for granting requests for

optional entry locations. A master,

owner, or agent of a vessel who desires

that entry be made at an optional

location will file with the appropriate

port director an application on Customs

Form 3171 and a single entry or

continuous bond on Customs Form 301

containing the bond conditions set forth

in § 113.64 of this chapter, in such

amount as that port director deems

appropriate but not less than $1,000. If

the application is approved, the port

director or a designated Customs officer

will formally enter the vessel. Nothing

in this paragraph relieves any person or

vessel from any requirement as to how,

when and where they are to report, be

inspected or receive clearance from

other Federal agencies upon arrival in

the United States.

5. Section 4.8 is revised to read as

follows:

§ 4.8 Preliminary entry.

(a) Generally. Preliminary entry

allows a U.S. or foreign vessel arriving

under circumstances that require it to

formally enter, to commence lading and

unlading operations prior to making

formal entry. Preliminary entry may be

accomplished electronically pursuant to

an authorized electronic data

interchange system, or by any other

means of communication approved by

the Customs Service.

(b) Requirements and conditions.

Preliminary entry must be made in

compliance with § 4.30, and may be

granted prior to, at, or subsequent to

arrival of the vessel. The granting of

preliminary vessel entry by Customs at

or subsequent to arrival of the vessel, is

conditioned upon the presentation to

and acceptance by Customs of all forms,

electronically or otherwise, comprising

Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / Rules and Regulations 2873

a complete manifest as provided in

§ 4.7. Vessels seeking preliminary entry

in advance of arrival may do so by

presenting to Customs a complete

Customs Form 1302 (Cargo Declaration)

showing all cargo on board the vessel

and Customs Form 3171, electronically

or otherwise, no less than 48 hours prior

to vessel arrival. The CF 3171 will also

serve as notice of intended date of

arrival. The port director may allow for

the presentation of the CF 1302 and CF

3171 less than 48 hours prior to arrival

in order to grant advanced preliminary

entry if a vessel voyage takes less than

48 hours to complete from the last

foreign port to the first U.S. port, or if

other reasonable circumstances warrant.

Preliminary entry granted in advance of

arrival will become effective upon

arrival at the port granting preliminary

entry. Additionally, Customs must

receive confirmation of a vessel’s

estimated time of arrival in a manner

acceptable to the port director.

6. Section 4.9 is revised to read as

follows:

§ 4.9 Formal entry.

(a) General. Section 4.3 provides

which vessels are subject to formal entry

and where and when entry must be

made. The formal entry of an American

vessel is governed by section 434, Tariff

Act of 1930 (19 U.S.C. 1434). The term

‘‘American vessel’’ means a vessel of the

United States (see § 4.0(b)) as well as,

when arriving by sea, a vessel entitled

to be documented except for its size (see

§ 4.0(c)). The formal entry of a foreign

vessel arriving within the limits of any

Customs port is also governed by

section 434, Tariff Act of 1930 (19

U.S.C. 1434). Alternatively, information

necessary for formal entry may be

transmitted electronically pursuant to a

system authorized by Customs.

(b) Procedures for American vessels.

Under certain circumstances, American

vessels arriving in ports of the United

States directly from other United States

ports must make entry. Entry of such

vessels is required when they have

merchandise aboard which is being

transported in-bond, or when they have

unentered foreign merchandise aboard.

For the purposes of the vessel entry

requirements, merchandise transported

in-bond does not include bonded ship’s

stores or supplies. While American

vessels transporting unentered foreign

merchandise must fully comply with

the usual formal entry procedures,

American vessels carrying no unentered

foreign merchandise but which have inbond merchandise aboard may satisfy

vessel entry requirements by making a

required report of arrival, and

presenting a completed Customs Form

1301 (General Declaration). Report of

arrival as provided in § 4.2 of this part,

together with presenting a completed

Customs Form 1301 (General

Declaration), satisfies all entry

requirements for the subject vessels.

(c) Delivery of foreign vessel

document. The master of any foreign

vessel will exhibit the vessel’s

document to the port director on or

before the entry of the vessel. After the

net tonnage has been noted, the

document may be delivered to the

consul of the nation to which such

vessel belongs, in which event the

vessel master will certify to the port

director the fact of such delivery (see

section 434, Tariff Act of 1930, as

amended (19 U.S.C. 1434), as applied

through section 438, Tariff Act of 1930,

as amended (19 U.S.C. 1438)). If not

delivered to the consul, the document

will be deposited in the customhouse.

Whether delivered to the foreign consul

or deposited at the customhouse, the

document will not be delivered to the

master of the foreign vessel until

clearance is granted under § 4.61. It will

not be lawful for any foreign consul to

deliver to the master of any foreign

vessel the register, or document in lieu

thereof, deposited with him in

accordance with the provisions of 19

U.S.C. 1434 until such master will

produce to him a clearance in due form

from the director of the port where such

vessel has been entered. Any consul

violating the provisions of this section

is liable to a fine of not more than

$5,000 (section 438, Tariff Act of 1930,

as amended; 19 U.S.C. 1438).

(d) Failure to make required entry;

penalties. Any master who fails to make

entry as required by this section or who

presents or transmits electronically any

document required by this section that

is forged, altered, or false, may be liable

for certain civil penalties as provided

under 19 U.S.C. 1436, in addition to

penalties applicable under other

provisions of law. Further, any vessel

used in connection with any such

violation is subject to seizure and

forfeiture.

§ 4.16 [Reserved]

7. Part 4 is amended by removing and

reserving § 4.16.

8. Section 4.30 is amended by adding

the word ‘‘fees’’ between the words

‘‘clearance’’ and ‘‘under’’ in

introductory paragraph (a); and by

revising paragraph (b) to read as follows:

§ 4.30 Permits and special licenses for

unlading and lading.

* * * * *

(b) Application for a permit or special

license will be made by the master,

owner, or agent of the vessel on

Customs Form 3171, or electronically

pursuant to an authorized electronic

data interchange system or other means

of communication approved by the

Customs Service, and will specifically

indicate the type of service desired at

that time, unless a term permit or term

special license has been issued. Vessels

that arrive in a Customs port with more

than one vessel carrier sharing or

leasing space on board the vessel (such

as under a vessel sharing or slot charter

arrangement) are required to indicate on

the CF 3171 all carriers on board the

vessel and indicate whether each carrier

is transmitting its cargo declaration

electronically or is presenting it on the

Customs Form 1302. In the case of a

term permit or term special license,

upon entry of each vessel, a copy of the

term permit or special license must be

submitted to Customs during official

hours in advance of the rendering of

services so as to update the nature of the

services desired and the exact times

they will be needed. Permits must also

be updated to reflect any other needed

changes including those in the name of

the vessel as well as the slot charter or

vessel sharing parties. An agent of a

vessel may limit his application to

operations involved in the entry and

unlading of the vessel or to operations

involved in its lading and clearance.

Such limitation will be specifically

noted on the application.

* * * * *

9. Section 4.60 is amended by revising

paragraph (a) to read as follows:

§ 4.60 Vessels required to clear.

(a) Unless specifically excepted by

law, the following vessels must obtain

clearance from the Customs Service

before departing from a port or place in

the United States:

(1) All vessels departing for a foreign

port or place;

(2) All foreign vessels departing for

another port or place in the United

States;

(3) All American vessels departing for

another port or place in the United

States that have merchandise on board

that is being transported in-bond (not

including bonded ship’s stores or

supplies), or foreign merchandise for

which entry has not been made; and

(4) All vessels departing for points

outside the territorial sea to visit a

hovering vessel or to receive

merchandise or passengers while

outside the territorial sea, as well as

foreign vessels delivering merchandise

or passengers while outside the

territorial sea.

* * * * *

2874 Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / Rules and Regulations

10. Section 4.61 is revised to read as

follows:

§ 4.61 Requirements for clearance.

(a) Application for clearance.

Application for clearance for a vessel

will be made by filing a General

Declaration, Customs Form 1301, by or

on behalf of the master at the

customhouse. The master, licensed deck

officer, or purser may appear in person

to clear the vessel, or documents

properly executed by the master or other

proper officer may be delivered at the

customhouse by the vessel agent or

other personal representative of the

master. Necessary information may also

be transmitted electronically pursuant

to a system authorized by Customs.

Clearance will be granted either on

Customs Form 1378 or by approved

electronic means. Customs port

directors may permit the clearance of

vessels at locations other than the

customhouse, and at times outside of

normal business hours. Customs may

take local resources into consideration

in allowing clearance to be transacted

on board vessels themselves or at other

mutually convenient sites and times

either within or outside of port limits.

Customs must be satisfied that the place

designated for clearance is sufficiently

under Customs control at the time of

clearance, and that the expenses

incurred by Customs will be reimbursed

as authorized. Customs may require that

advance notice of vessel departure be

given prior to granting requests for

optional clearance locations.

(b) When clearance required. Under

certain circumstances, American vessels

departing from ports of the United

States directly for other United States

ports must obtain Customs clearance.

The clearance of such vessels is

required when they have merchandise

aboard which is being transported inbond, or when they have unentered

foreign merchandise aboard. For the

purposes of the vessel clearance

requirements, merchandise transported

in-bond does not include bonded ship’s

stores or supplies. While American

vessels transporting unentered foreign

merchandise must fully comply with

usual clearance procedures, American

vessels carrying no unentered foreign

merchandise but that have in-bond

merchandise aboard may satisfy vessel

clearance requirements by reporting

intended departure within 72 hours

prior thereto by any means of

communication that is satisfactory to

the local Customs port director, and by

presenting a completed Customs Form

1301 (General Declaration). Also, the

Customs officer may require the

production of any documents or papers

deemed necessary for the proper

inspection/examination of the vessel,

cargo, passenger, or crew. Report of

departure together with providing

information to Customs as specified in

this paragraph satisfies all clearance

requirements for the subject vessels.

(c) Verification of compliance. Before

clearance is granted to a vessel bound to

a foreign port as provided in § 4.60 and

this section, the port director will verify

compliance with respect to the

following matters:

(1) Accounting for inward cargo (see

§ 4.62).

(2) Outward Cargo Declarations;

shippers export declarations (see § 4.63).

(3) Documentation (see § 4.0(c)).

(4) Verification of nationality and

tonnage (see § 4.65).

(5) Verification of inspection (see

§ 4.66).

(6) Inspection under State laws (46

U.S.C. App. 97).

(7) Closed ports or places (see § 4.67).

(8) Passengers (see § 4.68).

(9) Shipping articles and enforcement

of Seamen’s Act (see § 4.69).

(10) Medicine and slop chests.

(11) Load line regulations (see

§ 4.65a).

(12) Carriage of United States

securities, etc. (46 U.S.C. App. 98).

(13) Carriage of mail.

(14) Public Health regulations (see

§ 4.70).

(15) Inspection of vessels carrying

livestock (see § 4.71).

(16) Inspection of meat, meat-food

products, and inedible fats (see § 4.72).

(17) Neutrality exportation of arms

and munitions (see § 4.73).

(18) Payment of State and Federal fees

and fees due the Government of the

Virgin Islands of the United States (46

U.S.C. App. 100).

(19) Orders restricting shipping (see

§ 4.74).

(20) Estimated duties deposited or a

bond given to cover duties on foreign

repairs and equipment for vessels of the

United States (see § 4.14).

(21) Illegal discharge of oil (see

§ 4.66a).

(22) Attached or arrested vessel.

(23) Immigration laws.

(d) Vessel built for foreign account. A

new vessel built in the United States for

foreign account will be cleared under a

certificate of record, Coast Guard Form

1316, in lieu of a marine document.

(e) Clearance not granted. Clearance

will not be granted to any foreign vessel

using the flag of the United States or any

distinctive signs or markings indicating

that the vessel is an American vessel (22

U.S.C. 454a).

(f) Clearance in order of itinerary.

Unless otherwise provided in this

section, every vessel bound for a foreign

port or ports will be cleared for a

definite port or ports in the order of its

itinerary, but an application to clear for

a port or place for orders, that is, for

instructions to masters as to destination

of the vessel, may be accepted if the

vessel is in ballast or if any cargo on

board is to be discharged in a port of the

same country as the port for which

clearance is sought.

11. Part 4 is amended by removing

and reserving Footnotes 97, 99 and 100a

through 101.

12. Section 4.68 is revised to read as

follows:

§ 4.68 Federal Maritime Commission

certificates for certain passenger vessels.

No vessel having berth or stateroom

accommodations for 50 or more

passengers and embarking passengers at

U.S. ports will be granted a clearance at

the port or place of departure from the

United States unless it is established

that the vessel has valid certificates

issued by the Federal Maritime

Commission.

13. Section 4.70 is revised to read as

follows:

§ 4.70 Public Health Service requirements.

No clearance will be granted to a

vessel subject to the foreign quarantine

regulations of the Public Health Service.

Raymond W. Kelly,

Commissioner of Customs.

Approved: December 22, 1999.

Dennis M. O’Connell,

Acting Deputy Assistant Secretary of the

Treasury.

[FR Doc. 00–1120 Filed 1–18–00; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 203, 250, 251, 253, 254,

and 256

Outer Continental Shelf Regulations

AGENCY: Minerals Management Service

(MMS), Interior.

ACTION: Technical amendments.

SUMMARY: This document makes minor

technical changes to regulations that

were published in various Federal

Register documents and are codified in

the Code of Federal Regulations. These

changes will correct the name of form

MMS–126; correct a citation in 30 CFR

250, subpart N; and correct the

instructions in 30 CFR parts 203, 251,

253, 254, and 256 for commenting on

information collection burdens.