3730 Federal Register / Vol. 72, No. 17 / Friday, January 26, 2007 / Rules and Regulations 

* * * * * 

8A918 Marine Boilers. 

License Requirements 

Reason for Control: RS, AT, UN. 

Controls Country chart 

RS applies to entire entry .. RS Column 2. 

AT applies to entire entry .. AT Column 1. 

UN applies to entire entry Iraq, North 

Korea, and 

Rwanda. 

■ 23. In Supplement No. 1 to part 774, 

Category 9—‘‘Propulsion Systems, 

Space Vehicles and Related Equipment’’

is amended by revising the ‘‘License 

Requirements’’ section of ECCNs 9A018, 

9A991, 9D018, and 9E018 to read as 

follows: 

9A018 Equipment on the Wassenaar 

Arrangement Munitions List. 

License Requirements 

Reason for Control: NS, RS, AT, UN. 

Control(s) Country chart 

NS applies to entire entry .. NS Column 1. 

RS applies to 9A018.a and 

b.

RS Column 2. 

AT applies to entire entry .. AT Column 1. 

UN applies to entire entry Iraq, North 

Korea, and 

Rwanda. 

* * * * * 

9A991 ‘‘Aircraft’’, n.e.s., and gas 

turbine engines not controlled by 

9A001 or 9A101 and parts and 

components, n.e.s. 

License Requirements 

Reason for Control: AT, UN. 

Control(s) Country chart 

AT applies to entire entry .. AT Column 1. 

UN applies to 9A991.a ...... Iraq, North 

Korea, and 

Rwanda. 

License Requirement Notes: There is no de 

minimis level for foreign-made aircraft 

described by this entry that incorporate 

Commercial Standby Instrument Systems 

(CSIS) that integrate QRS11–00100–100/101 

Micromachined Angular Rate Sensors (see 

§ 734.4(a) of the EAR). 

* * * * * 

9D018 ‘‘Software’’ for the ‘‘use’’ of 

equipment controlled by 9A018. 

License Requirements 

Reason for Control: NS, RS, AT, UN. 

Control(s) Country chart 

NS applies to entire entry .. NS Column 1. 

RS applies to 9A018.a and 

.b.

RS Column 2. 

Control(s) Country chart 

AT applies to entire entry .. AT Column 1. 

UN applies to entire entry Iraq, North 

Korea, and 

Rwanda. 

* * * * * 

9E018 ‘‘Technology’’ for the 

‘‘development’’ of equipment 

controlled by 9A018. 

License Requirements 

Reason for Control: NS, RS, AT, UN. 

Control(s) Country chart 

NS applies to entire entry .. NS Column 1. 

RS applies to 9A018.a and 

.b.

RS Column 2. 

AT applies to entire entry .. AT Column 1. 

UN applies to entire entry Iraq, North 

Korea, and 

Rwanda. 

Dated: January 22, 2007. 

Christopher A. Padilla, 

Assistant Secretary for Export 

Administration. 

[FR Doc. E7–1180 Filed 1–25–07; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Bureau of Customs and Border 

Protection 

DEPARTMENT OF THE TREASURY 

19 CFR Parts 24 and 111 

[USCBP–2006–0035; CBP Dec. 07–01] 

RIN 1505–AB62 

Fees for Certain Services 

AGENCIES: Customs and Border 

Protection, Department of Homeland 

Security; Department of the Treasury. 

ACTION: Final rule. 

SUMMARY: This document amends the 

rules dealing with customs financial 

and accounting procedures by revising 

the fees charged for certain customs 

inspectional services under section 

13031 of the Consolidated Omnibus 

Budget Reconciliation Act of 1985, as 

amended, and incorporates two 

technical corrections to the existing fee 

chart. 

DATES: Final rule effective April 1, 2007. 

FOR FURTHER INFORMATION CONTACT: For 

information concerning user fee policy 

and rates, contact Mr. Jerry Petty, 

Director, Cost Management Division, 

1300 Pennsylvania Avenue NW., Room 

4.5A, Washington, DC 20229. 

Telephone: (202) 344–1317. 

SUPPLEMENTARY INFORMATION: 

Background 

CBP collects fees to pay for the costs 

incurred in providing customs services 

in connection with certain activities 

under the authority of section 13031 of 

the Consolidated Omnibus Budget 

Reconciliation Act of 1985 (COBRA), as 

amended, codified at section 19 U.S.C. 

58c. 

On October 22, 2004, the President 

signed the American Jobs Creation Act 

of 2004 (Pub. L. 108–357). Section 892 

of the American Jobs Creation Act 

amended 19 U.S.C. 58c to renew the 

fees provided under COBRA, which 

would have otherwise expired March 1, 

2005, and to allow the Secretary of the 

Treasury to increase such fees by an 

amount not to exceed 10 percent in the 

period beginning fiscal year 2006 

through the period for which fees are 

authorized by law. Regulations 

concerning user fees, among other 

customs revenue functions, are 

promulgated under the authority of the 

Secretary of the Treasury pursuant to 

Treasury Department Order No. 100–16. 

(See Appendix to 19 CFR Part 0). 

On April 24, 2006, CBP published a 

notice of proposed rulemaking in the 

Federal Register (71 FR 20922) 

proposing to amend the regulations in 

accordance with the current statutory 

provisions by increasing the fees for: (1) 

Customs services provided in 

connection with the arrival of certain 

commercial vessels, commercial trucks, 

railroad cars, private aircraft and private 

vessels, passengers aboard commercial 

aircraft and commercial vessels, and 

barges or other bulk carrier arrivals, (2) 

each item of dutiable mail for which a 

customs officer prepares 

documentation, and (3) annual customs 

brokers permits. The comment period 

ended on May 24, 2006. 

Discussion of Comments 

A total of six commenters responded 

to the solicitation of comments on the 

notice of proposed rulemaking. These 

comments were received from the 

recreational boating associations, 

industry and travel agent products 

services, carrier/vessel concerns, air 

transport associations, and other 

members of the general traveling and 

importing public. The comments are 

discussed below. 

Comment: One commenter supported 

the proposed fee increases as 

appropriate to reflect the costs incurred 

by the agency for services provided. The 

commenter also suggested raising the 

annual maximum fees and each of the 

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Federal Register / Vol. 72, No. 17 / Friday, January 26, 2007 / Rules and Regulations 3731 

annual fee caps by the maximum 10% 

permitted by law. 

CBP response: The COBRA, as 

amended (Pub. L. 108–357, Section 

892), does not authorize an increase in 

annual fee caps. Therefore, the 

suggestion to raise the annual maximum 

fees and each of the annual fee caps 

involves legislative policy issues. In the 

absence of further legislative changes, 

CBP is bound by the current statutory 

provisions which do not provide the 

legal basis to support such regulatory 

changes suggested by the commenter. 

Comment: One commenter suggested 

that CBP establish an on-line ACE 

(Automated Commercial Environment) 

carrier account capable of tracking 

among other things all CBP fees and 

tonnage taxes as well as penalties issued 

by CBP and the United States Coast 

Guard to a vessel. The commenter also 

suggested that the ACE account record 

should be capable of displaying 

accumulated fees charged to each vessel 

regardless of which SCAC (Standard 

Carrier Alpha Code) and carrier bond 

were associated with those charges. 

CBP response: This comment relates 

to issues that are beyond the scope of 

the proposed rulemaking. 

Comment: An association 

representing private vessel owners 

stated its opposition to the increase in 

the annual decal fee for private vessels 

from $25.00 to $27.50, on the basis that 

it is inherently unfair. The commenter 

stated that while the annual decal fee 

currently applies to vessels 30 feet in 

length or greater, CBP must expend an 

equal amount of time and expense on all 

vessels crossing the border, not just 

those 30 feet in length or greater. The 

commenter suggested that if CBP retains 

the annual decal fee of $25.00, but 

removes the specific exemption for 

private pleasure vessels of less than 30 

feet in length, that this action would 

generate far more revenue for CBP than 

raising the annual decal fee only for 

vessels 30 feet in length or greater to 

$27.50. 

CBP response: The specific exemption 

for private pleasure vessels of less than 

30 feet in length not carrying goods 

required to be declared was included in 

19 CFR 24.22(e), when it was 

promulgated because CBP incurs no 

processing costs in clearing private 

pleasure vessels of less than 30 feet in 

length not carrying goods required to be 

declared. Pursuant to the amended 

COBRA (Pub. L. 108–357, section 892), 

and in relevant part, fees may be 

charged in amounts that are reasonably 

related to the costs of providing customs 

services. CBP is not authorized to 

collect a fee because the agency would 

like to generate more revenue. 

Accordingly, we cannot implement the 

commenter’s suggested course of action. 

Comment: Two commenters stated 

that the final rule should specify the 

effective date of the user fee increase 

applicable to commercial airline 

passengers. One commenter suggested 

the effective date should be no earlier 

than 60 to 90 days after the final rule is 

published, and two commenters 

requested sufficient time to allow the 

industry to adjust their systems to 

collect the increased fee. One 

commenter urged that the regulations be 

amended to make clear and precise that 

the proper amount of the user fee to be 

collected from a passenger shall be the 

amount of the fee in effect at the time 

that a ticket is issued. One commenter 

stated that the increased fee should 

apply only to tickets issued on and after 

the effective date, so that carriers do not 

have to collect an additional fifty cents 

for tickets already issued. 

CBP response: We have specified that 

the final rule’s effective date will be 

more than 60 days after the date it is 

published to permit industry to adjust 

their systems to collect the increased fee 

amounts. 

In response to the commenter’s 

concern about the proper amount of the 

user fee to be collected, the statute sets 

forth the general rule that the fee shall 

be collected from the passenger by the 

person who issues a transportation 

document or ticket and that such 

collection shall take place when the 

document or ticket is issued. The 

collection procedures in the regulations 

at § 24.22(g)(4)(ii), state, in relevant part, 

that the collection of the fees shall take 

place when a through ticket or travel 

document is issued. 

Given this statutory and regulatory 

specificity and clarity, amending the 

regulations as this commenter suggests 

is not necessary. The increased fee shall 

apply prospectively, that is, only to 

tickets issued on and after the effective 

date of the fee increase. For example, if 

a ticket has been issued prior to the 

effective date of the increased fee rates, 

and the flight does not take place until 

after the effective date of the increased 

fee rates, CBP is not authorized by law 

to retroactively collect the fifty cents 

from the carrier. As such, the date that 

the ticket is issued is the relevant event 

to which the effective date provision 

applies. 

Comment: One commenter stated that 

the proposed rule to increase the 

customs user fee paid by international 

passengers arriving by commercial 

aircraft from $5.00 to $5.50 did not 

suggest that these passengers would 

actually experience a more efficient and 

pleasant clearance process upon arrival 

in the United States. The commenter 

suggested that the number of CBP 

officers at U.S. airports must be 

increased to meet the demands of 

increasing international traffic and 

prevent passengers from waiting in long 

lines in the inspection facilities. 

CBP response: In FY 2005 

approximately 73% of the total 

collections in the COBRA user fee 

account came from international air 

passengers. These passengers stand to 

benefit from the additional revenue 

collected. CBP estimates that the 

additional revenue will support the 

following central priorities of increased 

staffing of no less than 200 new CBP 

Officer positions, and the funding of 

overtime pay which will allow for more 

targeting, enforcement, special 

operations, and backfilling, where 

necessary. 

More officers on more shifts would 

allow CBP to fully match staff-toworkload and address any workload 

movement quickly, thereby meeting 

CBP’s processing goals as well as 

providing better service to passengers. 

Comment: One commenter noted that 

the Secretary of the Treasury is required 

by statute to apply the funds generated 

by the customs user fees to cover 

specific costs. The commenter stated 

that the statute allows the funds to be 

used for the salaries of full-time and 

part-time CBP officers only after five 

other costs, such as overtime 

compensation and premium pay, have 

been met. The commenter stated 

nothing in the proposed rule gives any 

information about how the user fee 

funds are allocated among the various 

options and how they interrelate, e.g., 

could overtime compensation be 

decreased in order to hire additional 

full-time or part-time CBP officers at 

airports. 

CBP response: The statute specifically 

stipulates the order of reimbursements 

from the user fees collected for costs 

incurred. First, the Secretary of the 

Treasury shall directly reimburse from 

the fees collected the amount paid for 

the costs incurred by the Secretary in: 

Paying overtime compensation, 

premium pay, and agency contributions 

to the Civil Service Retirement and 

Disability Fund; providing all 

preclearance services for which the 

recipients of such services are not 

required to reimburse the Secretary of 

the Treasury; and paying foreign 

language proficiency awards. To the 

extent funds remain available, 

reimbursements for costs incurred in 

providing salaries for full-time and parttime inspectional personnel and 

equipment that enhance customs 

services for those persons or entities 

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3732 Federal Register / Vol. 72, No. 17 / Friday, January 26, 2007 / Rules and Regulations 

that are required to pay fees under 

paragraphs (1) through (8) of subsection 

(a) of 19 U.S.C. 58c are distributed on 

a basis proportionate to the fees 

collected under subsection (a)(1) 

through (a)(8) of 19 U.S.C. 58c. To the 

extent funds remain available, 

reimbursements are made for costs 

incurred in providing salaries for up to 

50 full-time equivalent inspectional 

positions to provide preclearance 

services. See 19 U.S.C. 58c(f)(3)(A)(i)–

(iii). This is the allocation authorized by 

the statute. 

Fees collected under subsection (a) of 

19 U.S.C. 58c, with two exceptions, 

shall be deposited as offsetting receipts 

into the Customs User Fee Account. 

Section 13031(f) of the Consolidated 

Omnibus Budget Reconciliation Act of 

1985 (19 U.S.C. 58c(f)) was amended by 

section 892 of Pub. L. 108–357 to 

specify that, except as otherwise 

provided in the subsection, all funds in 

the Customs User Fee Account shall be 

available to pay the costs incurred by 

CBP in conducting customs revenue 

functions as defined in section 415 of 

the Homeland Security Act of 2002 

(other than functions performed by the 

Office of International Affairs referred to 

in section 415(8) of that Act), and for 

automation (including the Automation 

Commercial Environment computer 

system), and for no other purpose. 

Paragraph (f)(2) of 19 U.S.C. 58c also 

states that so long as there is a surplus 

of funds in the Customs User Fee 

Account, the Secretary of the Treasury 

may not reduce personnel staffing levels 

for providing commercial clearance and 

preclearance services. 

Comment: One commenter stated it 

was difficult to determine whether air 

passengers paying the proposed 

increases in customs user fees will 

derive any benefits or whether the 

proposed increases were justified 

because the proposed rule does not 

provide the types of costs included in 

the chart showing the fiscal year 2004 

obligations, and does not account for 

savings from the consolidation of 

certain agricultural, customs, and 

immigration inspection functions into 

CBP. 

CBP response: The customs user fees 

are authorized by statute. In Public Law 

108–357, the Congress authorized the 

Secretary of the Treasury to charge fees 

in amounts that are reasonably related 

to the costs of providing customs 

services in connection with the activity 

or item for which the fee is charged, 

except that in no case may the fee 

charged exceed by more than 10 percent 

the amount otherwise prescribed. The 

amounts of the proposed fees are 

reasonably related to the costs of 

providing customs services. 

The types of costs associated with 

providing customs services include 

salaries and benefits, overtime, rent, 

supplies and equipment, training, 

travel, utilities, and overhead. The 

increased fees will support more CBP 

officer positions at airports and new 

technology and equipment. As a result, 

air passengers will benefit from 

enhanced and timely passenger 

facilitation. 

Regarding the question of whether the 

proposed increases account for savings 

from the consolidation of the 

immigration, customs and agricultural 

functions in aircraft passenger 

processing, a CBP officer accounts for 

time and costs spent performing these 

services separately according to work 

activity and function. The inspectional 

services provided and the associated 

costs are identified as legacy Customs, 

legacy Immigration, and legacy 

Agriculture functions, depending on 

which legacy organization performed 

each function. 

While certain components of the 

legacy agencies have been combined to 

form CBP, the statutory and regulatory 

authorities for those agencies and 

associated functions have not been 

consolidated. Therefore, all user fees are 

collected in distinct accounts (Customs 

User Fee Account, Immigration User Fee 

Account, Land Border Inspection Fee 

Account, etc.) and are only used to 

cover costs based on function and 

authorized by their respective 

legislation. User fee program costs are 

also segregated from all other costs. 

Comment: Two commenters stated 

that the immigration, customs, and 

agriculture user fees should be 

consolidated into a single user fee for 

CBP inspection services provided to air 

passengers. The commenters stated that 

consolidation of the three inspectional 

fees would provide for greater 

efficiency. One commenter stated that 

consolidation of the user fees would 

result in more streamlined and 

transparent accounting, and would 

enable the agency to look at the cost of 

an air passenger inspection in relation 

to what an air passenger pays in user 

fees. 

CBP response: While certain 

components of the legacy agencies have 

been combined to form CBP, the 

statutory and regulatory authorities for 

these agencies and their associated 

functions remain unchanged. The legacy 

Customs user fee authority resides with 

the Secretary of the Treasury. The 

legacy INS user fee authority resides 

with the Attorney General. The legacy 

APHIS user fee authority resides with 

the Secretary of Agriculture. Presently, 

CBP has no authority to consolidate user 

fees. In the administration and 

collection of user fees, CBP is bound by 

current statutory law and must capture 

user fee costs based on function, that is, 

agriculture, customs, and immigration. 

CBP receives only a portion of the total 

user fees from the immigration and 

agriculture user fee accounts. Since CBP 

lacks the necessary authority to modify 

the immigration and agriculture user 

fees, a consolidated average cost of an 

inspection is neither appropriate nor 

possible at this time. However, CBP 

recognizes the benefits of consolidation, 

including streamlining the collection 

process and improving the management 

of the user fees. CBP is looking at 

options to improve the structuring of 

fees. 

Comment: One commenter stated that 

aviation security is a matter of national 

security, a Federal Government 

responsibility that should be funded 

accordingly, and not by increasing user 

fees. 

CBP response: The user fees are for 

the customs inspection and processing 

of passengers as authorized by the 

COBRA statute and the authority to 

increase the fees is specifically provided 

in law. Moreover, most aviation security 

inspection is performed outside of the 

context of these user fees. 

Comment: One commenter stated that 

the airline industry faces a 

disproportionate and ever increasing tax 

burden. The commenter stated that 

implementation of this proposal would 

clearly worsen this inequitable situation 

and further stultify an airline’s ability to 

serve the traveling and shipping public. 

CBP response: While CBP 

understands the concerns of the airline 

industry, the authority to increase 

inspection fees was specifically 

provided in law two years ago, and this 

increase is consistent with that statute. 

Comment: One commenter stated that 

the statement in the notice of proposed 

rulemaking regarding the minimal 

impact on business from the increase in 

user fees since user fees come from 

individual travelers, demonstrates a 

basic misunderstanding of the realities 

of contemporary airline economics. The 

commenter stated that the intense 

competition in the airline industry 

forces carriers to absorb these taxes and 

fees. The commenter stated that it is the 

airline, and ultimately its employees 

and shareholders, that principally bear 

the burden of increased fees. 

CBP response: CBP notes that under 

the statute, entities issuing a document 

or ticket are authorized to collect the 

customs fee from an individual at the 

time the document or ticket is issued. 

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Federal Register / Vol. 72, No. 17 / Friday, January 26, 2007 / Rules and Regulations 3733 

This regulation does not change the 

method for collecting that fee, nor does 

this rule establish a new class of fees; it 

is only increasing the current fee 

collected by a maximum of 10 percent. 

Comment: One commenter stated that 

it has repeatedly requested an analysis 

of the actual average cost of an 

inspection for airline passengers since 

the consolidation of the three border 

inspection agencies, Immigration and 

Naturalization Service (INS), U.S. 

Customs Service (Customs), and the 

Animal and Plant Health Inspection 

Service (APHIS) into CBP. The 

commenter stated that among the 

justifications for the consolidation were 

greater efficiency, enhanced cost 

savings, and a more coordinated 

approach to the way in which 

inspection user fees were levied. The 

commenter stated that the proposed rule 

provides no analytical information on 

the cost of an inspection. The 

commenter concluded that no fee 

increase should be implemented absent 

the cost information and an opportunity 

to comment in response. 

CBP response: The current fees 

charged and collected for the provision 

of customs services in connection with 

the arrival of passengers aboard a 

commercial vessel or commercial 

aircraft are set by statute at 19 U.S.C. 

58c. Public Law 108–357 authorizes the 

Secretary of the Treasury to charge fees 

in amounts that are reasonably related 

to the costs of providing customs 

services in connection with the activity 

or item for which the fee is charged, 

except that in no case may the fee 

charged exceed by more than 10 percent 

the amount otherwise authorized. CBP 

has proposed to raise the customs user 

fees for related customs inspectional 

services based on costs and as 

authorized by the statute. CBP has 

analyzed the costs of providing customs 

services and the fee collections for these 

corresponding customs services, and 

has published the collections received 

and obligations incurred in Fiscal Year 

2004, in the Federal Register (71 FR 

20922) on April 24, 2006. 

Comment: One commenter stated that 

the collection of a $1.75 fee from 

commercial vessel passengers (to be 

raised by 10 percent in the proposed 

rule to $1.93) for the exact same 

inspection that airline passengers 

experience, results in fee collections 

from airline passengers that subsidize 

the inspections of cruise ship 

passengers. The commenter stated that 

this inequity needed to be rectified. 

CBP response: The current fees 

charged and collected for the provision 

of customs services in connection with 

the arrival of passengers aboard a 

commercial vessel or commercial 

aircraft are set by statute at 19 U.S.C. 

58c. In fiscal year 2006, and in each 

succeeding fiscal year for which fees are 

authorized, Public Law 108–357 

authorizes the Secretary of the Treasury 

to charge fees in amounts that are 

reasonably related to the costs of 

providing customs services in 

connection with the activity or item for 

which the fee is charged, except that in 

no case may the fee charged exceed by 

more than 10 percent the amount 

otherwise authorized. As the respective 

fees are established by statute, this 

comment is beyond the scope of this 

rulemaking. 

Conclusion of Comment Analysis 

Based upon the analysis of the 

comments as discussed above, CBP has 

decided to adopt the proposed rule 

published on April 24, 2006, without 

change. 

Additional Changes to the Regulations 

In addition to the changes of the fee 

amounts in the regulatory text of Parts 

24 and 111, as proposed in the proposed 

rulemaking published on April 24, 

2006, the final regulations incorporate 

two technical corrections to the fee 

chart at 19 CFR 24.22(g)(2). The fee 

chart was intended as a tool to help 

readers understand the application of 

the fee structure explained in the 

regulatory text at 19 CFR 24.22(g)(1). 

However, in two locations, the fee chart 

did not accurately reflect the regulatory 

text. 

The fee chart is being corrected to 

reflect the regulatory text at 19 CFR 

24.22(g)(1)(i)(A) and (B). Paragraph 

(g)(1)(i)(A) provides for the collection of 

a fee for services provided in connection 

with the arrival of passengers aboard 

commercial aircraft from Canada, 

Mexico, any territories and possessions 

of the United States, and any adjacent 

islands (‘‘Specified Location’’ (SL)), 

when the journey of the arriving 

passenger originates in a place outside 

the United States other than an SL. The 

chart is accordingly amended to state 

that a fee is assessed in such a situation. 

The chart is also amended to reflect the 

language of paragraph (g)(1)(i)(B) that a 

fee is assessed when the journey of the 

arriving passenger from an SL originates 

in the United States and includes travel 

to a country other than to an SL. 

The Regulatory Flexibility Act 

This rule generally affects individuals 

and large commercial carriers. The 

increase in fees is 10 percent over the 

amounts currently paid by users of the 

customs services for which each fee is 

charged. Accordingly, CBP certifies that 

this final rule will not have a significant 

impact on a substantial number of small 

entities because the majority of fees will 

come from individual travelers into the 

United States. Therefore, it is not 

subject to the analysis provisions of the 

Regulatory Flexibility Act, as amended 

(5 U.S.C. 601 et seq.). The American 

Jobs Creation Act specifically provides 

that the Secretary of the Treasury shall 

charge fees that are reasonably related to 

these activities. 

Executive Order 12866 

This rule does not meet the criteria for 

a ‘‘significant regulatory action’’ as 

specified in E.O. 12866. Accordingly, a 

regulatory impact analysis is not 

required. 

Signing Authority 

This document is being issued in 

accordance with § 0.1(a) of Chapter I of 

Title 19, Code of Federal Regulations 

(19 CFR 0.1) pertaining to the exercise 

of authority to approve regulations in 19 

CFR chapter I. 

List of Subjects 

19 CFR Part 24 

Accounting, Claims, Customs duties 

and inspection, Fees, Financial and 

accounting procedures, Imports, Taxes, 

User fees. 

19 CFR Part 111 

Administrative practice and 

procedure, Brokers, Customs duties and 

inspection, Imports, Licensing. 

Amendments to the Regulations 

■ For the reasons set forth above, parts 

24 and 111 of the Customs and Border 

Protection Regulations (19 CFR parts 24 

and 111) are amended as follows: 

PART 24—CUSTOMS FINANCIAL AND 

ACCOUNTING PROCEDURE 

■ 1. The authority citation for part 24 

continues to read in part as follows: 

Authority: 5 U.S.C. 301; 19 U.S.C. 58a–58c, 

66, 1202 (General Note 3(i), Harmonized 

Tariff Schedule of the United States), 1505, 

1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 

9701; Public Law 107–296, 116 Stat. 2135 (6 

U.S.C. 1 et seq.). 

* * * * * 

■ 2. Amend § 24.22 as follows: 

■ a. In paragraph (b)(1)(i), the figure 

‘‘$397’’ is removed and, in its place, the 

figure ‘‘$437’’ is added. 

■ b. In paragraph (b)(2)(i), the figure 

‘‘$100’’ is removed and, in its place, the 

figure ‘‘$110’’ is added. 

■ c. In paragraph (c)(1), the figure ‘‘$5’’

is removed and, in its place, the figure 

‘‘$5.50’’ is added. 

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3734 Federal Register / Vol. 72, No. 17 / Friday, January 26, 2007 / Rules and Regulations 

■ d. In paragraph (d)(1), the figure 

‘‘$7.50’’ is removed and, in its place, the 

figure ‘‘$8.25’’ is added. 

■ e. In paragraph (e)(1), the figure ‘‘$25’’

is removed and, in its place, the figure 

‘‘$27.50’’ is added. 

■ f. In paragraph (e)(2), the figure ‘‘$25’’

is removed and, in its place, the figure 

‘‘$27.50’’ is added. 

■ g. In paragraph (f), the figure ‘‘$5’’ is 

removed and, in its place, the figure 

‘‘$5.50’’ is added. 

■ h. In paragraph (g)(1)(i), the figure 

‘‘$5’’ is removed and, in its place, the 

figure ‘‘$5.50’’ is added. 

■ i. In paragraph (g)(1)(ii), the figure 

‘‘$1.75’’ is removed and, in its place, the 

figure ‘‘$1.93’’ is added. 

■ j. In paragraph (g)(2), the table is 

revised to read as set forth below. 

■ k. In paragraph (g)(5)(v), the figure 

‘‘$5’’ is removed and, in its place, the 

figure ‘‘$5.50’’ is added; and, the figure 

‘‘$1.75’’ is removed and, in its place, the 

figure ‘‘$1.93’’ is added. 

■ l. In paragraph (i)(7), the figure ‘‘$5’’

is removed and, in its place, the figure 

‘‘$5.50’’ is added. 

■ m. In paragraph (i)(8), the figure 

‘‘$1.75’’ is removed and, in its place, the 

figure ‘‘$1.93’’ is added. 

The revision reads as follows: 

§ 24.22 Fees for certain services. 

* * * * * 

(g) * * * 

(2) * * * 

Place where journey originates (see (g)(1)(iv)) 

Fee status for arrival from SL Fee status for arrival from 

other than SL 

Vessel Aircraft Vessel Aircraft 

SL ............................................................................................................................ $1.93 No fee ......... No fee ......... No fee. 

Other than SL or U.S. ............................................................................................. 1.93 $5.50 ........... $5.50 ........... $5.50. 

U.S.* ........................................................................................................................ 1.93 No fee ......... N/A .............. N/A. 

U.S.** ....................................................................................................................... 1.93 $5.50 ........... $5.50 ........... $5.50. 

* * * * * 

PART 111—CUSTOMS BROKERS 

■ 3. The authority citation for part 111 

continues to read in part as follows: 

Authority: 19 U.S.C. 66, 1202, (General 

Note 3(i), Harmonized Tariff Schedule of the 

United States), 1624, 1641. 

* * * * * 

Section 111.96 also issued under 19 U.S.C. 

58c; 31 U.S.C. 9701. 

■ 4. Section 111.19 is amended in 

paragraph (c) by removing all the figures 

reading ‘‘$125’’ and adding in their 

place the figure ‘‘$138’’. 

■ 5. Section 111.96 is amended in 

paragraph (c) by removing all the figures 

reading ‘‘$125’’ and adding in their 

place the figure ‘‘$138’’. 

Deborah J. Spero, 

Acting Commissioner, Bureau of Customs and 

Border Protection. 

Approved: January 23, 2007. 

Timothy E. Skud, 

Deputy Assistant Secretary of the Treasury. 

[FR Doc. 07–335 Filed 1–25–07; 8:45 am] 

BILLING CODE 9114–14–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 31 

[TD 9276] 

RIN 1545–BD96 

Flat Rate Supplemental Wage 

Withholding; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains 

correction to final regulations (TD 9276) 

that were published in the Federal 

Register on Tuesday, July 25, 2006 (71 

FR 42049), amending the regulations 

that provide for determining the amount 

of income tax withholding on 

supplemental wages. These regulations 

apply to all employers and others 

making supplemental wage payments to 

employees. 

DATES: The correction is effective 

January 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

A.G. Kelley, (202) 622–6040 (not a tollfree number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations that are the 

subject of this correction are under 

sections 3401 and 3402 of the Internal 

Revenue Code. 

Need for Correction 

As published, final regulations (TD 

9276) contain an error that may prove to 

be misleading and is in need of 

clarification. 

List of Subjects in 26 CFR Part 31 

Employment taxes, Income taxes, 

Penalties, Pensions, Railroad retirement, 

Reporting and recordkeeping 

requirements, Social Security, 

Unemployment compensation. 

Correction of Publication 

■ Accordingly, 26 CFR part 31 is 

corrected by making the following 

correcting amendment: 

PART 31—EMPLOYMENT TAXES AND 

COLLECTION OF INCOME TAX AT 

SOURCE 

■ Paragraph 1. The authority citation 

for part 31 continues to read, in part, as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 2. Section 31.3402(g)–1(a)(8) is 

amended by revising the last sentence of 

Example 3 paragraph (iv). The revision 

reads as follows: 

§ 31.3402(g)–1 Supplemental wage 

payments. 

(a) * * * 

(8) * * * 

Example 3. * * * 

(iv) * * * If R elects to use optional 

flat rate withholding provided under 

paragraph (a)(7)(iii)(F) of this section, 

withholding would be calculated at 25 

percent of the $1,000,000 portion of the 

payment and would be $250,000. 

* * * * * 

LaNita Van Dyke, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel, (Procedure and Administration). 

[FR Doc. E7–1051 Filed 1–25–07; 8:45 am] 

BILLING CODE 4830–01–P 

mstockstill on PROD1PC62 with RULES