Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Rules and Regulations 18575 

ACE Truck Manifest Test 

On September 13, 2004, CBP 

published a notice in the Federal 

Register (69 FR 55167) announcing a 

test allowing participating Truck Carrier 

Accounts to transmit electronic manifest 

data for inbound cargo through ACE, 

with any such transmissions 

automatically complying with advance 

cargo information requirements as 

provided in section 343(a) of the Trade 

Act of 2002. Truck Carrier Accounts 

participating in the test were given the 

ability to electronically transmit the 

truck manifest data and obtain release of 

their cargo, crew, conveyances, and 

equipment via the ACE Portal or 

electronic data interchange messaging. 

A series of notices announced 

additional deployments of the test, with 

deployment sites being phased in as 

clusters. Clusters were announced in the 

following notices published in the 

Federal Register: 70 FR 30964 (May 31, 

2005); 70 FR 43892 (July 29, 2005); 70 

FR 60096 (October 14, 2005); 71 FR 

3875 (January 24, 2006); 71 FR 23941 

(April 25, 2006); 71 FR 42103 (July 25, 

2006), 71 FR 77404 (December 26, 2006) 

and 72 FR 7058 (February 14, 2007). 

CBP continues to test ACE at various 

ports. CBP will continue, as necessary, 

to announce in subsequent notices in 

the Federal Register the deployment of 

the ACE truck manifest system test at 

additional ports. 

Designation of ACE Truck Manifest 

System as the Approved Data 

Interchange System 

In a notice published October 27, 

2006 (71 FR 62922), CBP designated the 

Automated Commercial Environment 

(ACE) Truck Manifest System as the 

approved EDI for the transmission of 

required data and announced that the 

requirement that advance electronic 

cargo information be transmitted 

through ACE would be phased in by 

groups of ports of entry. 

ACE will be phased in as the required 

transmission system at some ports even 

while it is still being tested at other 

ports. However, the use of ACE to 

transmit advance electronic truck cargo 

information will not be required in any 

port in which CBP has not first 

conducted the test. 

The October 27, 2006, document 

identified all land border ports in the 

states of Washington and Arizona and 

the ports of Pembina, Neche, Walhalla, 

Maida, Hannah, Sarles, and Hansboro in 

North Dakota as the first group of ports 

where use of the ACE Truck Manifest 

System is mandated. Subsequently, CBP 

announced on January 19, 2007 (72 FR 

2435) that, after 90 days notice, the use 

of the ACE Truck Manifest System will 

be mandatory at all land border ports in 

the states of California, Texas and New 

Mexico. On February 23, 2007 (72 FR 

8109), CBP announced that, again after 

90 days notice, the ACE Truck Manifest 

System will be mandatory at all land 

border ports in Michigan and New York, 

as well. 

ACE Mandated at Land Border Ports of 

Entry in Vermont and New Hampshire 

and Identified Ports in North Dakota 

Applicable regulations (19 CFR 

123.92(e)) require CBP, 90 days prior to 

mandating advance electronic 

information at a port of entry, to publish 

notice in the Federal Register informing 

affected carriers that the EDI system is 

in place and fully operational. 

Accordingly, CBP is announcing in this 

document that, effective 90 days from 

the date of publication of this notice, 

truck carriers entering the United States 

through land border ports of entry in the 

states of Vermont and New Hampshire 

and through the ports of St. John, 

Fortuna, Ambrose, Carbury, Noonan, 

Dunseith, Sherwood, Antler, Northgate, 

Westhope, and Portal, in the state of 

North Dakota, will be required to 

present advance electronic cargo 

information regarding truck cargo 

through the ACE Truck Manifest 

System. Together with the ports 

announced in 71 FR 62922, use of the 

ACE Truck Manifest System will, 90 

days from the date of publication of this 

notice, be mandatory in all land border 

ports in the state of North Dakota, as 

well as the land border ports in the 

states of Vermont and New Hampshire. 

Although other systems that have 

been deemed acceptable by CBP for 

transmitting advance truck manifest 

data will continue to operate and may 

still be used in the normal course of 

business for purposes other than 

transmitting advance truck manifest 

data, use of systems other than ACE will 

no longer satisfy advance electronic 

cargo information requirements at the 

ports of entry announced in this 

document as of July 12, 2007. 

Compliance Sequence 

CBP will be publishing subsequent 

notices in the Federal Register as it 

phases in the requirement that truck 

carriers utilize the ACE system to 

present advance electronic truck cargo 

information at other ports. ACE will be 

phased in as the mandatory EDI system 

at the ports identified below in the 

sequential order in which they are 

listed. The sequential order provided 

below is somewhat different than that 

announced in the October 27, 2006, 

notice. Although further changes to this 

order are not currently anticipated, CBP 

will state in future notices if changes do 

occur. In any event, as mandatory ACE 

is phased in at these remaining ports, 

CBP will always provide 90 days’ notice 

through publication in the Federal 

Register prior to requiring the use of 

ACE for the transmission of advance 

electronic truck cargo information at a 

particular group of ports. 

The remaining ports at which the 

mandatory use of ACE will be phased 

in, listed in sequential order, are as 

follows: 

1. All land border ports in the states 

of Idaho and Montana. 

2. All land border ports in the state of 

Maine. 

3. All land border ports in the states 

of Alaska and Minnesota. 

Dated: April 6, 2007. 

Deborah J. Spero, 

Acting Commissioner, Customs and Border 

Protection. 

[FR Doc. E7–6908 Filed 4–12–07; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9313] 

RIN 1545–BG29 

Corporate Reorganizations; Additional 

Guidance on Distributions Under 

Sections 368(a)(1)(D) and 354(b)(1)(B); 

Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains a 

correction to temporary regulations (TD 

9313) that were published in the 

Federal Register on Thursday, March 1, 

2007 (72 FR 9262) providing guidance 

regarding the qualification of certain 

transactions as reorganizations 

described in section 368(a)(1)(D) where 

no stock and/or securities of the 

acquiring corporation are issued and 

distributed in the transaction. 

DATES: This correcting amendment is 

effective April 13, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Bruce A. Decker at (202) 622–7550 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The temporary regulations that are the 

subject of this correction are under 

section 368 of the Internal Revenue 

Code. 


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18576 Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Rules and Regulations 

Need for Correction 

As published, temporary regulations 

(TD 9313) contain an error that may 

prove to be misleading and is in need 

of clarification. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

■ Accordingly, 26 CFR part 1 is 

corrected by making the following 

amendment: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read, in part, as 

follows: 

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

■ Par. 2. Section 1.368–2T is amended 

by revising paragraph (l)(2)(iv) to read as 

follows: 

§ 1.368–2T Definition of terms (temporary). 

* * * * * 

(l) * * * 

(2) * * * 

(iv) Exception. This paragraph (l)(2) 

does not apply to a transaction 

otherwise described in section 1.358–

6(b)(2) or section 368(a)(1)(G) by reason 

of section 368(a)(2)(D). 

* * * * * 

LaNita Van Dyke, 

Chief, Publications and Regulations Branch 

Legal Processing Division, Associate Chief 

Counsel (Procedure and Administration). 

[FR Doc. E7–6979 Filed 4–12–07; 8:45 am] 

BILLING CODE 4830–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4022 and 4044 

Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets 

in Single-Employer Plans; Interest 

Assumptions for Valuing and Paying 

Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: The Pension Benefit Guaranty 

Corporation’s regulations on Benefits 

Payable in Terminated Single-Employer 

Plans and Allocation of Assets in 

Single-Employer Plans prescribe interest 

assumptions for valuing and paying 

benefits under terminating singleemployer plans. This final rule amends 

the regulations to adopt interest 

assumptions for plans with valuation 

dates in May 2007. Interest assumptions 

are also published on the PBGC’s Web 

site (http://www.pbgc.gov). 

DATES: Effective May 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, Manager, Regulatory 

and Policy Division, Legislative and 

Regulatory Department, Pension Benefit 

Guaranty Corporation, 1200 K Street, 

NW., Washington, DC 20005, 202–326–

4024. (TTY/TDD users may call the 

Federal relay service toll-free at 1–800–

877–8339 and ask to be connected to 

202–326–4024.) 

SUPPLEMENTARY INFORMATION: The 

PBGC’s regulations prescribe actuarial 

assumptions—including interest 

assumptions—for valuing and paying 

plan benefits of terminating singleemployer plans covered by title IV of 

the Employee Retirement Income 

Security Act of 1974. The interest 

assumptions are intended to reflect 

current conditions in the financial and 

annuity markets. 

Three sets of interest assumptions are 

prescribed: (1) A set for the valuation of 

benefits for allocation purposes under 

section 4044 (found in Appendix B to 

Part 4044), (2) a set for the PBGC to use 

to determine whether a benefit is 

payable as a lump sum and to determine 

lump-sum amounts to be paid by the 

PBGC (found in Appendix B to Part 

4022), and (3) a set for private-sector 

pension practitioners to refer to if they 

wish to use lump-sum interest rates 

determined using the PBGC’s historical 

methodology (found in Appendix C to 

Part 4022). 

This amendment (1) adds to 

Appendix B to Part 4044 the interest 

assumptions for valuing benefits for 

allocation purposes in plans with 

valuation dates during May 2007, (2) 

adds to Appendix B to Part 4022 the 

interest assumptions for the PBGC to 

use for its own lump-sum payments in 

plans with valuation dates during May 

2007, and (3) adds to Appendix C to 

Part 4022 the interest assumptions for 

private-sector pension practitioners to 

refer to if they wish to use lump-sum 

interest rates determined using the 

PBGC’s historical methodology for 

valuation dates during May 2007. 

For valuation of benefits for allocation 

purposes, the interest assumptions that 

the PBGC will use (set forth in 

Appendix B to part 4044) will be 5.20 

percent for the first 20 years following 

the valuation date and 4.87 percent 

thereafter. These interest assumptions 

represent an increase (from those in 

effect for April 2007) of 0.21 percent for 

the first 20 years following the valuation 

date and 0.21 percent for all years 

thereafter. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 3.00 percent for the 

period during which a benefit is in pay 

status and 4.00 percent during any years 

preceding the benefit’s placement in pay 

status. These interest assumptions 

represent an increase (from those in 

effect for April 2007) of 0.25 percent in 

the immediate annuity rate and are 

otherwise unchanged. For private-sector 

payments, the interest assumptions (set 

forth in Appendix C to part 4022) will 

be the same as those used by the PBGC 

for determining and paying lump sums 

(set forth in Appendix B to part 4022). 

The PBGC has determined that notice 

and public comment on this amendment 

are impracticable and contrary to the 

public interest. This finding is based on 

the need to determine and issue new 

interest assumptions promptly so that 

the assumptions can reflect current 

market conditions as accurately as 

possible. 

Because of the need to provide 

immediate guidance for the valuation 

and payment of benefits in plans with 

valuation dates during May 2007, the 

PBGC finds that good cause exists for 

making the assumptions set forth in this 

amendment effective less than 30 days 

after publication. 

The PBGC has determined that this 

action is not a ‘‘significant regulatory 

action’’ under the criteria set forth in 

Executive Order 12866. 

Because no general notice of proposed 

rulemaking is required for this 

amendment, the Regulatory Flexibility 

Act of 1980 does not apply. See 5 U.S.C. 

601(2). 

List of Subjects 

29 CFR Part 4022 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

29 CFR Part 4044 

Employee benefit plans, Pension 

insurance, Pensions. 

■ In consideration of the foregoing, 29 

CFR parts 4022 and 4044 are amended 

as follows: 

PART 4022—BENEFITS PAYABLE IN 

TERMINATED SINGLE-EMPLOYER 

PLANS 

■ 1. The authority citation for part 4022 

continues to read as follows: 

Authority: 29 U.S.C. 1302, 1322, 1322b, 

1341(c)(3)(D), and 1344. 

■ 2. In appendix B to part 4022, Rate Set 

163, as set forth below, is added to the 

table. 


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