Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Rules and Regulations 50883 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

2011–17–07 M7 Aerospace LP: Amendment 

39–16771; Docket No. FAA–2011–0832; 

Directorate Identifier 2011–CE–025–AD. 

(a) Effective Date 

This AD is effective September 1, 2011. 

(b) Affected ADs 

AD 87–02–02 (52 FR 2511, January 23, 

1987) requires repetitive inspection or 

replacement of all flight control cables on 

Models SA226 and SA227 airplanes. This 

new action requires repetitive replacement of 

specific flight control cables on affected 

serial number Model SA226 airplanes that 

have been modified by installation of a 

camera system requiring rerouting of the 

affected flight control cables. 

(c) Applicability 

This AD applies to the following M7 

Aerospace LP airplanes, certificated in any 

category, as identified in Table 1 of this AD: 

TABLE 1—APPLICABILITY

Model— Serial Nos.— 

SA226–T ................ T265, T267. 

SA226–T(B) ........... T(B)348. 

SA226–TC ............. TC277. 

SA226–AT ............. AT071, AT072, AT073. 

(d) Subject 

Joint Aircraft System Component (JASC)/ 

Air Transport Association (ATA) of America 

Code: 27, Flight Controls. 

(e) Unsafe Condition 

This AD was prompted by a report of a 

failure of a rudder control cable. We are 

issuing this AD to correct the unsafe 

condition on these products. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done, following M7 Aerospace LP Service 

Bulletin 226–27–072, dated June 27, 2011. If 

the hours time-in-service (TIS) of the control 

cables can not be positively determined by 

the logbook, then you must use hours TIS of 

the airplane to comply with the requirements 

of this AD. 

(g) Inspection 

(1) For cables with more than 6,000 hours 

TIS: Inspect cables for deficiencies within 10 

hours TIS after September 1, 2011 (the 

effective date of this AD). 

(2) If any deficiencies are found during the 

inspection required in paragraph (g)(1) of this 

AD, before further flight replace cables. 

(h) Replacement 

(1) Replace primary control cables within 

the initial compliance times as listed below 

and repetitively thereafter at intervals not to 

exceed 3,500 hours time-in-service (TIS): 

(i) For cables with less than or equal to 

3,500 hours TIS: Replace cables when the 

control cables reach a total of 3,500 hours TIS 

or 150 hours TIS after September 1, 2011 (the 

effective date of this AD), whichever occurs 

later. 

(ii) For cables with less than or equal to 

5,000 hours TIS but greater than 3,500 hours 

TIS: Replace cables within 150 hours TIS 

after September 1, 2011 (the effective date of 

this AD). 

(iii) For cables with more than 5,000 hours 

TIS: Replace cables within 50 hours TIS after 

September 1, 2011 (the effective date of this 

AD). 

(2) Between 50 hours TIS and 200 hours 

TIS after installing any new control cable as 

required in paragraphs (g)(2) or (h)(1) of this 

AD, check (set) flight control cable tension. 

(i) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Fort Worth Airplane 

Certification Office, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or local 

Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the ACO, send it to the 

attention of the person identified in the 

Related Information section of this AD. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(j) Related Information 

For more information about this AD, 

contact Andrew McAnaul, Aerospace 

Engineer, FAA, ASW–150 (c/o San Antonio 

MIDO (SW–MIDO–43)), 10100 Reunion 

Place, Suite 650, San Antonio, Texas 78216; 

phone: (210) 308–3365; fax: (210) 308–3370; 

e-mail: andrew.mcanaul@faa.gov. 

(k) Material Incorporated by Reference 

You must use the following service 

information to do the actions required by this 

AD, unless the AD specifies otherwise. 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) under 5 U.S.C. 552(a) and 1 CFR part 

51 of M7 Aerospace LP Service Bulletin 226– 

27–072, dated June 27, 2011, on September 

1, 2011. 

(2) For service information identified in 

this AD, contact M7 Aerospace, LC, 10823 

NE. Entrance Road, San Antonio, Texas 

78216; telephone (210) 824–9421; fax: 800– 

347–5901; e-mail: http:// 

www.m7aerospace.com/page/1/ 

contact_parts.jsp; Web site: http:// 

www.m7aerospace.com. 

(3) You may review copies of the 

referenced service information at the FAA, 

Small Airplane Directorate, 901 Locust, 

Kansas City, Missouri 64106. For information 

on the availability of this material at the 

FAA, call 816–329–4148. 

(4) You may also review copies of the 

service information that is incorporated by 

reference at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at an NARA facility, call 202–741– 

6030, or go to http://www.archives.gov/ 

federal_register/code_of_federal_regulations/ 

ibr_locations.html. 

Issued in Kansas City, Missouri, on August 

2, 2011. 

John R. Colomy, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2011–20127 Filed 8–16–11; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

DEPARTMENT OF THE TREASURY 

19 CFR Part 159 

[USCBP–2010–0008; BP Dec. 11–17] 

RIN 1515–AD67 (formerly RIN 1505–AC21) 

Courtesy Notice of Liquidation 

AGENCY: Customs and Border Protection, 

Department of Homeland Security; 

Department of the Treasury. 

ACTION: Final rule. 

SUMMARY: This document amends title 

19 of the Code of Federal Regulations 

(‘‘CFR’’) pertaining to the method by 

which U.S. Customs and Border 

Protection (‘‘CBP’’) issues courtesy 

notices of liquidation to importers of 

record whose entry summaries are filed 

in the Automated Broker Interface 

(‘‘ABI’’). Courtesy notices of liquidation 


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50884 Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Rules and Regulations 

provide informal, advance notice of the 

liquidation date and are not required by 

statute. For importers of record whose 

entry summaries are electronically filed 

in ABI, CBP currently provides an 

electronic courtesy notice to the ABI 

filer (importer of record or a broker that 

files as the agent of the importer of 

record) and a paper courtesy notice to 

the importer of record. In an effort to 

streamline the notification process and 

reduce printing and mailing costs, CBP 

will discontinue mailing paper courtesy 

notices of liquidation. All ABI filers 

(importers of record and brokers that file 

as the agent of an importer of record) 

will receive electronic courtesy notices. 

In addition, all importers of record with 

an Automated Commercial Environment 

(‘‘ACE’’) Secure Data Portal Account can 

monitor the liquidation of their entries 

by using the reporting tool in the ACE 

Secure Data Portal Account. Importers 

of record whose entries are not filed 

through ABI will continue to receive 

paper courtesy notices of liquidation. 

DATES: Effective date: September 30, 

2011. Implementation date: The first 

day on or after September 30, 2011, that 

CBP can provide importers with 

complete liquidation reports, including 

liquidation dates, electronically through 

the ACE Portal. CBP will confirm the 

date of implementation through 

electronic notification (see CBP.gov). 

FOR FURTHER INFORMATION CONTACT: 

Laurie Dempsey, Trade Policy and 

Programs, Office of International Trade, 

Customs and Border Protection, 202– 

863–6509. 

SUPPLEMENTARY INFORMATION: 

Background 

On March 16, 2010, U.S. Customs and 

Border Protection (‘‘CBP’’) published a 

proposed rule in the Federal Register 

(75 FR 12483) proposing to amend title 

19 of the Code of Federal Regulations 

(‘‘19 CFR’’) to discontinue mailing paper 

courtesy notices to importers of record 

whose entry summaries are filed in the 

Automated Broker Interface (‘‘ABI’’). 

The proposed amendments were 

intended to streamline the notification 

process and reduce printing and mailing 

costs, as provided in the proposed rule. 

See 75 FR 12483. 

While CBP is not statutorily required 

to provide advance notice of the 

liquidation date to the importer or his 

agent, CBP does issue informal, courtesy 

notices of liquidation (hereinafter 

‘‘courtesy notice’’ or ‘‘courtesy 

notices’’). See 19 CFR 159.9(d). 

Currently, CBP issues electronic 

courtesy notices to all ABI filers: 

importers of record who file their own 

entries and customs brokers who file as 

the duly authorized agents of the 

importer of record. CBP’s Technology 

Center also mails paper courtesy 

notices, on CBP Form 4333–A, to all 

importers of record whose entry 

summaries are scheduled to liquidate by 

each port of entry. As a result, two 

courtesy notices are issued for importers 

of record whose electronic entry 

summaries are filed in ABI: An 

electronic courtesy notice to the ABI 

filer, that is either the importer of record 

or a customs broker filing on behalf of 

the importer of record, and a paper 

courtesy notice to the importer of 

record. Therefore, this renders 

duplicative the paper courtesy notice 

sent by CBP to importers of record that 

file their own entries in ABI because, as 

an ABI filer, they already receive an 

electronic courtesy notice. See 19 CFR 

part 143. 

Under the proposed rule, when 

electronic entry summaries are filed in 

ABI, ABI filers would only receive 

electronic courtesy notices; paper 

courtesy notices would not also be sent 

to importers of record that do not file 

their own entries. Importers of record 

filing a paper formal entry with CBP 

would continue to receive a mailed 

courtesy notice. See 19 CFR parts 141 

and 142. In addition, all importers of 

record with an Automated Commercial 

Environment (‘‘ACE’’) Secure Data 

Portal Account can monitor the 

liquidation of their entries by using the 

reporting tool in the ACE Secure Data 

Portal Account. 

Cost Savings 

The following analysis details the cost 

savings that would be realized by the 

agency as a result of eliminating paper 

courtesy notices to importers of record 

who personally receive an electronic 

courtesy notice or whose broker receives 

an electronic courtesy notice on their 

behalf. In FY 2009, CBP sent 

approximately 7.2 million paper 

courtesy notices. Under this rule, CBP 

estimates that over 90 percent of paper 

courtesy notices will be eliminated. For 

the purpose of this analysis, we assume 

6.5 million paper notices (90 percent) 

will be eliminated. Additionally, we 

assume that the number of notices does 

not change from year to year. 

Quantified Savings 

1. Postage 

By decreasing the number of paper 

courtesy notices distributed, CBP will 

significantly reduce postage costs 

required to mail the notices. Current 

U.S. Postal Service first-class letter rates 

are 44 cents within the United States, 75 

cents to Canada, 79 cents to Mexico, and 

98 cents to the rest of the world. Exhibit 

1 shows the total estimated savings on 

postage in 2010, an estimated $3 

million. 

EXHIBIT 1—TOTAL SAVINGS ON POSTAGE IN 2010 (UNDISCOUNTED) 

Notice destination Number of 

notices Total cost 

Domestic .................................................................................................................................................................. 5,899,816 $2,595,919 

Canada .................................................................................................................................................................... 379,301 284,475 

Mexico ...................................................................................................................................................................... 57,371 45,323 

Other Foreign ........................................................................................................................................................... 167,193 163,849 

Total .................................................................................................................................................................. 6,503,681 3,089,566 

2. Forms 

CBP estimates that each courtesy 

notice form costs $0.027. Decreasing the 

number of paper forms by 6.5 million 

will save the agency approximately 

$175,599 per year. 

3. Labor 

CBP estimates the cost of contractors 

employed to print the paper courtesy 

notices is $0.08 per copy. Based on this 

estimate, the cost savings on labor for 

printing is approximately $520,294 per 

year. 

Total Quantified Savings 

Exhibit 2 displays all of the cost 

savings that have been quantified for 

this analysis. 


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Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Rules and Regulations 50885 

EXHIBIT 2—TOTAL SAVINGS FROM REDUCING PAPER COURTESY NOTICES

IN 2010 (UNDISCOUNTED) 

Cost Annual 

savings 

Postage ..................................... $3,089,566 

Forms ........................................ 175,599 

Labor ......................................... 520,294 

Total ................................... 3,785,460 

We total these savings over the next 

10 years at a 3 and 7 percent discount 

rate, per guidance provided in the 

OMB’s Circular A–4. Total estimated 

savings range from $28.4 million to 

$33.3 million over the period of 

analysis. Annualized savings are $3.8 

million. Total present value and 

annualized savings are presented in 

Exhibit 3. 

EXHIBIT 3—TOTAL PRESENT VALUE

AND ANNUALIZED COSTS OF ADDITIONAL DATA ELEMENTS, 2010– 

2019 

Total present value 

costs ($ millions) 

Annualized costs 

($ millions) 

3% 7% 3% 7% 

$33.3 $28.4 $3.8 $3.8 

Additional Savings Not Quantified 

CBP has service contracts with fixed 

monthly costs for the equipment used to 

print and mail the paper courtesy 

notices. Current maintenance costs are 

approximately $45,048 per year for two 

printers and approximately $3,478 per 

year for a finishing machine. CBP is 

exploring lower cost options to replace 

these machines, but we are unable to 

quantify these savings or predict when 

they might occur. Additional costs 

associated with the printing and 

distribution of paper courtesy notices 

include labor by government employees 

on the CBP Mail Management Team and 

mainframe processing time. Reducing 

the number of paper notices will allow 

both Mail Management Team and 

mainframe resources to be used for 

other purposes. While we do not have 

enough data to quantify these savings at 

this time, they are important to consider 

in the analysis of the total impact of the 

reduction of paper courtesy notices. 

Summary of Cost Savings 

CBP estimates that this rule will save 

the agency $3.8 million annually by 

eliminating 90 percent, or 

approximately 6.5 million, of the paper 

courtesy notices currently sent to 

importers. If more than 90 percent are 

eliminated, savings could be higher. 

Quantified savings include reduced 

postage, forms, and contract labor costs. 

Additional savings may be realized by 

reducing maintenance costs on 

equipment used to produce the paper 

notices and allowing more efficient use 

of other government resources. 

CBP solicited public comments on the 

proposed rule. 

Discussion of Comments 

Eight commenters responded to the 

solicitation of public comments in the 

proposed rule. Several of these 

commenters applauded CBP’s effort to 

achieve cost savings by eliminating the 

mailing of paper. However, three 

commenters objected to CBP entirely 

eliminating the paper courtesy notice 

for ABI filers for several reasons 

discussed below, and four commenters 

requested that the courtesy mailing 

continue until CBP develops an 

alternative means of notifying importers 

of the liquidation of their entries. 

Comment 

Several commenters stated that the 

proposal will make importers of record 

reliant upon their brokers for 

liquidation information. Importers 

stated that they use the liquidation 

information on the courtesy notices to: 

monitor their entries for fraudulent 

activities; determine liquidation dates, 

protest deadlines, and contingent 

liability periods; check for errors; and 

track the status of antidumping and 

countervailing duty entries. 

Without the courtesy notice, 

importers who are ABI filers state that 

they would need to contact their brokers 

for the liquidation information. 

However, a commenter noted that many 

importers utilize more than one customs 

broker to make their entries, and 

sometimes, the importer’s broker will 

use outport brokers (those from other 

customs broker districts) to make entry 

on behalf of the importer for whom they 

have a power of attorney. 

Moreover, it was noted that brokers 

sometimes fail to provide importers 

with timely notification of liquidation 

information. When such instances 

occur, the broker’s liability is limited to 

$50, whereas importers may lose their 

ability to challenge a CBP decision, 

thereby potentially resulting in a loss of 

millions of dollars. 

CBP Response 

Pursuant to 19 CFR 111.39, ‘‘[a] 

broker must not withhold information 

relative to any customs business from a 

client who is entitled to that 

information.’’ Liquidation information 

is information related to ‘‘customs 

business’’; therefore, brokers cannot 

withhold this information from their 

importer clients. 

In addition, ACE is being 

reprogrammed to allow all importers of 

record to monitor liquidation of entries 

filed under their importer of record 

number(s) through the ACE Portal. 

Importers can establish an ACE Portal 

Account to access reports that will help 

them monitor entry filings for potential 

fraudulent entries and access 

liquidation dates for entries filed by any 

filer using the importer of record 

number belonging to the importer, 

regardless of the filer code used. 

Furthermore, whether or not the 

importer has an ACE Portal Account, 

the importer may gain limited access to 

a broker’s ACE Portal Account to obtain 

reports for entries filed by the broker 

using the importer of record number 

belonging to that importer, if the broker 

that filed the entry grants the importer 

such access. 

Given data storage limitations, at this 

time, the ACE Portal only contains entry 

data for entries filed in the current CBP 

fiscal year and the previous four CBP 

fiscal years. (The CBP fiscal year runs 

from October 1 through September 30.) 

Importers needing liquidation dates for 

entries filed beyond that time period 

may contact their broker, who can 

obtain that information by running an 

ABI query. As for antidumping and 

countervailing duty entries, depending 

on the entry date, importers may be able 

to check their status via a report in the 

ACE Portal. Please note that contractual 

terms of liability between importers and 

brokers are not controlled by CBP. 

Additional information on the ACE 

Portal capabilities and instructions for 

applying for access to the ACE Portal, 

which is accessible free of charge, are 

available on the following Web site: 

http://www.cbp.gov/xp/cgov/trade/ 

automated/modernization/ 

ace_app_info/. 

The instructions for managing ACE 

Portal user accounts are available on the 

following Web site: http://www.cbp.gov/ 

xp/cgov/trade/automated/ 

modernization/ace_welcome/ 

ace_welcome_package/. 

Comment 

One commentator was concerned 

about the accessibility of liquidation 

information entered with a filer code 

that subsequently became inactive at the 

time of liquidation. 

CBP Response 

Even if the filer code is no longer 

active, the importer will be able to 

access the liquidation date associated 

with the importer’s importer of record 


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50886 Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Rules and Regulations 

number using the reporting tool in the 

ACE Portal. 

Comment 

Several commenters suggested 

alternatives to CBP’s proposal, such as: 

creating a system for importers to obtain 

the liquidation information that is 

available on the courtesy notices; 

sending courtesy notifications via email; surveying importers who file their 

entries via ABI to determine whether 

they wish to discontinue receiving 

mailed courtesy notices allowing 

importers to opt out of receiving paper 

courtesy notices at the time CBP assigns 

an importer of record number for 

importers, or notifying the importers at 

that time that that they will have either 

to rely upon ABI for liquidation 

information or participate in ACE; 

ensuring that the information listed in 

ACE is accurate, particularly the data 

regarding older entries; and developing 

an electronic bulletin notice of 

liquidation. 

Also, several commenters suggested 

delaying implementation of the 

proposal until ACE becomes capable of 

issuing complete liquidation reports 

and/or until all entry filers begin using 

ACE. 

CBP Response 

On the effective date of this 

document, through the ACE Portal 

reporting mechanism, CBP will be able 

to make available complete liquidation 

reports to importers with ACE accounts, 

including liquidation dates for all 

entries. Furthermore, an e-mail courtesy 

notification of liquidation would just 

duplicate this information. 

CBP does not plan on surveying the 

trade community to determine which 

ABI-filing importers wish to discontinue 

receiving mailed courtesy notices, 

which CBP believes would not garner 

further substantial input. CBP agrees 

that training will help importers 

transition into using the ACE system. 

Currently, CBP provides Web-based 

training for new ACE Account holders, 

and help desk support to aid with 

account access, account management, 

and report generation in the ACE Portal. 

Please see the following Web site for 

further information: https:// 

nemo.customs.gov/ace_online/. 

Although this training resource and 

the ACE Portal are already available and 

functional, importers will have until 

September 17, 2011 to enroll in the ACE 

Portal Account and familiarize 

themselves with the reporting system. 

Moreover, CBP has considered the 

option of posting an electronic bulletin 

notice of liquidation and will continue 

to explore the feasibility of that option. 

Courtesy notices of liquidations, rather 

than the statutorily mandated bulletin 

notice of liquidation, are the focus of 

this rulemaking. Accordingly, this 

suggestion is outside the scope of this 

rulemaking. 

The purpose of this proposal is to 

reduce printing and mailing costs by 

eliminating duplicative notice to 

importers that file their entries via ABI. 

Therefore, CBP does not intend to 

provide importers with the option of 

receiving paper courtesy notices or 

opting out of receiving paper courtesy 

notices. 

Regarding the suggestion that CBP 

should ensure that the information in 

ACE is accurate, particularly regarding 

older entries, CBP agrees that 

maintaining accurate data in any system 

of record is of paramount concern. As 

discussed above, the entry data in the 

ACE Portal is confined to the current 

CBP fiscal year and the previous four 

CBP fiscal years because of data storage 

limitations. ABI filers may run an ABI 

query for liquidation dates for entries 

filed beyond that time period. Please 

note that for a historical report on all of 

an importer’s importation activity over 

a set time period, an importer can file 

a request with CBP for an ITRAC 

(Importer Trade Activity) report for a 

fee, see http://www.cbp.gov/xp/cgov/ 

admin/fl/foia/itrac/itrac.xml. If one is a 

C–TPAT member, this report is 

provided free of cost. 

Finally, the ACE report contains the 

same data elements as the paper 

courtesy notice, with the exception of: 

(1) Importer address; (2) series; (3) refer 

inquiries to; and (4) liquidation code. 

The ‘‘importer address’’ data element 

will not appear in the ACE Portal report 

because the report will not be mailed. 

The ‘‘series’’ data element will not 

appear because it has not been used 

since 1986 when the entry format 

configuration was changed to eliminate 

the series, that is, the ‘‘2-digit Fiscal 

Year’’ code which appeared in the 5th 

and 6th place of the entry number 

format. The ‘‘refer inquiries to’’ data 

element will not appear in the ACE 

Portal report; however, the report will 

provide the name and code for the port 

of entry. Importers can refer any 

inquiries to the appropriate port of entry 

using the following Web site: http:// 

www.cbp.gov/xp/cgov/toolbox/contacts/ 

ports/. Finally, the ‘‘liquidation code’’ 

data element is an internal CBPassigned code used for managing 

various liquidation types and will not 

appear in the report. 

Comment 

One commenter indicated that 

courtesy notices deemed undeliverable 

by the U.S. Postal Service help the 

Revenue Division update its importer 

address database. 

CBP Response 

The Revenue Division now relies on 

the importer to keep its address and 

contact information current with CBP. 

Conclusion 

After review of the comments and 

further consideration, CBP has decided 

to adopt the proposed rule published in 

the Federal Register (75 FR 12483) on 

March 16, 2010, without substantive 

change. Accordingly, the effective date 

will be September 30, 2011. The 

implementation date will be the first 

day on or after September 30, 2011, that 

CBP can provide importers with 

complete liquidation reports, including 

liquidation dates, electronically through 

the ACE Portal. CBP will confirm 

implementation through electronic 

notification (see http://www.cbp.gov). 

Executive Order 12866 

This final rule is not a ‘‘significant 

regulatory action’’ per Executive Order 

12866 because it will not result in 

savings or expenditures totaling $100 

million or more in any one year. The 

Office of Management and Budget 

(‘‘OMB’’) has not reviewed this 

regulation under that order. The final 

rule will result in cost savings as 

discussed earlier in the preamble. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) requires Federal 

agencies to examine the impact a rule 

would have on small entities. A small 

entity may be a small business (defined 

as any independently owned and 

operated business not dominant in its 

field that qualifies as a small business 

per the Small Business Act); a small notfor-profit organization; or a small 

governmental jurisdiction (locality with 

fewer than 50,000 people). 

This final rule will eliminate paper 

courtesy notices that are sent to 

importers who file entry summaries via 

ABI or who hire a third party to file via 

ABI on their behalf. The primary impact 

of this final rule will be the savings 

realized by CBP as a result of 

eliminating a large portion of its annual 

printing and mailing costs associated 

with paper courtesy notices. Those 

importers that do not file using ABI will 

continue to receive paper courtesy 

notices. Those importers that file via 

ABI themselves will not be significantly 

impacted because they will continue to 

receive an electronic notification. Those 

importers that hire a broker to file via 

ABI on their behalf (with the broker 


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Federal Register / Vol. 76, No. 159 / Wednesday, August 17, 2011 / Rules and Regulations 50887 

filing as an agent and not an importer 

of record) will now have to obtain the 

notification from their broker or view 

the information via CBP’s ACE Portal. 

To the extent that brokers send the 

notification to the importer, they will 

bear a small cost, but because of the low 

cost of forwarding this information 

either electronically or by mail, this cost 

does not rise to the level of significance. 

CBP solicited comments on the 

economic impact of this rule on small 

entities in the Notice of Proposed 

Rulemaking, but did not receive any of 

substance. For these reasons, CBP 

certifies that this final rule will not have 

a significant economic impact on a 

substantial number of small entities. 

Paperwork Reduction Act 

As there is no collection of 

information in this document, the 

provisions of the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3507) are 

inapplicable. 

Signing Authority 

This document is being issued in 

accordance with 19 CFR 0.1(a)(1) 

pertaining to the Secretary of the 

Treasury’s authority (or that of his 

delegate) to approve regulations related 

to certain customs revenue functions. 

List of Subjects in 19 CFR Part 159 

Antidumping, Countervailing duties, 

Customs duties and inspection, Foreign 

currencies. 

Amendments to the CBP Regulations 

For the reasons set forth in the 

preamble, part 159 of title 19 of the CFR 

(19 CFR part 159) is amended as set 

forth below. 

PART 159—LIQUIDATION OF DUTIES 

■ 1. The general authority citation for 

part 159 continues to read as follows: 

Authority: 19 U.S.C. 66, 1500, 1504, 1624. 

* * * * * 

■ 2. In § 159.9, paragraph (d) is revised 

to read as follows: 

§ 159.9 Notice of liquidation and date of 

liquidation for formal entries. 

* * * * * 

(d) Courtesy notice of liquidation. 

CBP will endeavor to provide importers 

or their agents with a courtesy notice of 

liquidation for all entries scheduled to 

be liquidated or deemed liquidated by 

operation of law. The courtesy notice of 

liquidation that CBP will endeavor to 

provide will be electronically 

transmitted pursuant to an authorized 

electronic data interchange system if the 

entry summary was filed electronically 

in accordance with part 143 of this 

chapter or on CBP Form 4333–A if the 

entry was filed on paper pursuant to 

parts 141 and 142 of this chapter. This 

notice will serve as an informal, 

courtesy notice and not as a direct, 

formal, and decisive notice of 

liquidation. 

§ 159.11 [Amended] 

■ 3. In § 159.11, paragraph (a) is 

amended in the last sentence, by 

removing the words ‘‘on CBP Form 

4333–A’’. 

§ 159.12 [Amended] 

■ 4. In § 159.12: 

■ a. Paragraph (f)(1) is amended, in the 

last sentence, by removing the words 

‘‘on CBP Form 4333–A’’; 

■ b. Paragraph (g) is amended, in the 

last sentence, by removing the words 

‘‘on CBP Form 4333–A’’. 

Alan D. Bersin, 

Commissioner, U.S. Customs and Border 

Protection. 

Approved: August 12, 2011. 

Timothy E. Skud, 

Deputy Assistant Secretary of the Treasury. 

[FR Doc. 2011–20957 Filed 8–16–11; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9542] 

RIN 1545–BE77 

Elections Regarding Start-Up 

Expenditures, Corporation 

Organizational Expenditures, and 

Partnership Organizational Expenses 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations and removal of 

temporary regulations. 

SUMMARY: This document contains final 

regulations relating to elections to 

deduct start-up expenditures, 

organizational expenditures of 

corporations, and organizational 

expenses of partnerships. The American 

Jobs Creation Act of 2004 amended the 

Internal Revenue Code to permit the 

optional deduction of a limited amount 

of these types of expenses that are paid 

or incurred after October 22, 2004. The 

regulations affect taxpayers that pay or 

incur these expenses and provide 

guidance on how to elect to deduct the 

expenses in accordance with the new 

rules. 

DATES: Effective Date: These regulations 

are effective on August 16, 2011. 

Applicability Dates: For dates of 

applicability, see §§ 1.195–1(d), 1.248– 

1(f), and 1.709–1(b)(5). 

FOR FURTHER INFORMATION CONTACT: 

R. Matthew Kelley, (202) 622–7900 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains final 

amendments to the Income Tax 

Regulations (26 CFR part 1) under 

sections 195, 248, and 709 of the 

Internal Revenue Code to reflect 

amendments made by section 902 of the 

American Jobs Creation Act of 2004 

(Pub. L. 108–357, 118 Stat. 1418) (the 

Act). The amendments made by section 

902 of the Act are effective for amounts 

paid or incurred after October 22, 2004, 

the date of the enactment of the Act. 

As amended by section 902(a) of the 

Act, section 195(b) allows an electing 

taxpayer to deduct, in the taxable year 

in which the taxpayer begins an active 

trade or business, an amount equal to 

the lesser of (1) the amount of the startup expenditures that relate to the active 

trade or business, or (2) $5,000, reduced 

(but not below zero) by the amount by 

which the start-up expenditures exceed 

$50,000. The remainder of the start-up 

expenditures is deductible ratably over 

the 180-month period beginning with 

the month in which the active trade or 

business begins. 

As amended by section 902(b) of the 

Act, section 248(a) allows an electing 

corporation to deduct, in the taxable 

year in which the corporation begins 

business, an amount equal to the lesser 

of (1) the amount of the organizational 

expenditures of the corporation, or (2) 

$5,000, reduced (but not below zero) by 

the amount by which the organizational 

expenditures exceed $50,000. The 

remainder of the organizational 

expenditures is deductible ratably over 

the 180-month period beginning with 

the month in which the corporation 

begins business. 

As amended by section 902(c) of the 

Act, section 709(b) allows an electing 

partnership to deduct, in the taxable 

year in which the partnership begins 

business, an amount equal to the lesser 

of (1) the amount of the organizational 

expenses of the partnership, or (2) 

$5,000, reduced (but not below zero) by 

the amount by which the organizational 

expenses exceed $50,000. The 

remainder of the organizational 

expenses is deductible ratably over the 

180-month period beginning with the 

month in which the partnership begins 

business. 


Emcdonald on DSK2BSOYB1PROD with RULES