This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

42209

Vol. 62, No. 151

Wednesday, August 6, 1997

FEDERAL TRADE COMMISSION

16 CFR Part 305

RIN 3084–AA26

Rule Concerning Disclosures

Regarding Energy Consumption and

Water use of Certain Home Appliances

and other Products Required Under

the Energy Policy and Conservation

Act (‘‘Appliance Labeling Rule’’);

Correction to Ranges of Comparability

for Clothes Washers

AGENCY: Federal Trade Commission.

ACTION: Final rule.

SUMMARY: The Federal Trade

Commission amends its Appliance

Labeling Rule by issuing corrections to

the ranges of comparability used on

required labels for clothes washers that

were published on May 14, 1997, to

become effective August 12, 1997 (62 FR

26383). The corrections affect only the

ranges of comparability for compact, top

loading clothes washers. Catalogs

printed prior to the effective date of this

notice on accordance with 16 CFR

305.14 need not be revised.

EFFECTIVE DATE: August 12, 1997.

FOR FURTHER INFORMATION CONTACT:

James Mills, Attorney, 202–326–3035,

Division of Enforcement, Federal Trade

Commission, Washington, DC 20580.

SUPPLEMENTARY INFORMATION: This

notice publishes the corrected range

figures, which, under Sections 305.10,

305.11 and 305.14 of the rule, must be

used on labels on clothes washers

manufactured on and after August 12,

1997, and in advertising of clothes

washers in catalogs printed on and after

August 12, 1997.

Estimated annual energy consumption

figures for 1997 for clothes washers

were submitted by manufacturers and

analyzed by the Commission. New

ranges of comparability based upon

them were published in the Federal

Register on May 14, 1997. The

Commission has learned since

publication of the ranges that there was

an inadvertent error in the ranges for

compact, top loading clothes washers,

and the new ranges published today

reflect the correction. All models of

clothes washers in this sub-category are

manufactured by the same

manufacturer. The manufacturer has

assured the Commission that it will use

the corrected range numbers on labels

for those products beginning August 12,

1997, the effective date of both the

revised ranges and today’s corrections.

For the sake of clarity, the Commission

is republishing the complete set of

ranges in their corrected form.

In consideration of the foregoing, the

Commission amends Appendix F of its

Appliance Labeling Rule by publishing

the following ranges of comparability

for use in the labeling and advertising

of clothes washers beginning August 12,

1997.

List of Subjects in 16 CFR Part 305

Advertising, Energy conservation,

Household appliances, Labeling,

Reporting and recordkeeping

requirements.

Accordingly, 16 CFR Part 305 is

amended as follows:

PART 305—[AMENDED]

1. The authority citation for Part 305

continues to read as follows:

Authority: 42 U.S.C. 6294.

2. Appendix F to Part 305 is revised

to read as follows:

Appendix F to Part 305—Clothes

Washers

Range Information

‘‘Compact’’ includes all household

clothes washers with a tub capacity of

less than 1.6 cu. ft. or 13 gallons of

water.

‘‘Standard’’ includes all household

clothes washers with a tub capacity of

1.6 cu. ft. or 13 gallons of water or more.

Capacity

Range of estimated

annual energy consumption (kWh/yr.)

Low High

COMPACT:

Top Loading ....... 607 628

Front Loading ..... (*) (*)

STANDARD:

Top Loading ....... 312 1306

Capacity

Range of estimated

annual energy consumption (kWh/yr.)

Low High

Front Loading ..... 241 278

(*) No data submitted.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 97–20651 Filed 8–5–97; 8:45 am]

BILLING CODE 6750–01–M

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 10

[T.D. 97–69]

RIN 1515–AB79

Use of Containers Designated as

Instruments of International Traffic in

Point-to-Point Local Traffic

AGENCY: Customs Service, Department

of the Treasury.

ACTION: Final rule.

SUMMARY: This document amends the

Customs Regulations to provide that

certain containers that are designated as

instruments of international traffic are

deemed to remain in international

traffic provided they exit the United

States within 365 days of the date on

which they are admitted to the U.S. For

the importing community as well as

Customs, this amendment greatly

simplifies the treatment of containers

for Customs purposes regardless of their

use in domestic commerce.

DATES: Effective: December 4, 1997.

Compliance date: For containers

subject to this rule that have already

been admitted to the U.S. the 365-day

period will begin on December 4, 1997,

without regard to the time the

containers were already in this country.

FOR FURTHER INFORMATION CONTACT:

Legal aspects: Glen E. Vereb, Entry

and Carrier Rulings Branch, (202–482–

6940).

Operational aspects: Eileen A.

Kastava, Cargo Control, (202–927–0983).
42210 Federal Register / Vol. 62, No. 151 / Wednesday, August 6, 1997 / Rules and Regulations

SUPPLEMENTARY INFORMATION:

Background

Under 19 U.S.C. 1322, vehicles and

other instruments of international traffic

are excepted from the application of the

Customs laws to such extent and subject

to such terms and conditions as may be

prescribed in regulations or instructions

of the Secretary of the Treasury. The

Customs Regulations issued under the

authority of 19 U.S.C. 1322 are

contained in § 10.41a.

Instruments of international traffic so

designated pursuant to § 10.41a may, as

provided therein, be released without a

Customs entry which would otherwise

be required. Such instruments are also

stated to be duty-free in subheading

9803.00.50, Harmonized Tariff Schedule

of the United States.

Section 10.41a(d) provides that if an

instrument of foreign origin, or of U.S.-

origin that has been increased in value

or improved in condition by a process

of manufacture or other means while

abroad, is released under § 10.41a and is

subsequently diverted to point-to-point

local traffic within the United States, or

is otherwise withdrawn from its use as

an instrument of international traffic, it

becomes subject to entry and the

payment of any applicable duty.

However, § 10.41a(f) sets forth certain

uses to which an instrument of

international traffic may properly be put

in the United States that would not

constitute a diversion to unpermitted

point-to-point local traffic within the

U.S. or a withdrawal from its use in

international traffic.

Specifically, § 10.41a(f) provides that,

except for the application of the

coastwise trade laws (see § 4.93,

Customs Regulations (19 CFR 4.93)), no

part of § 10.41a precludes (1) the use of

an instrument in picking up and

delivering loads at intervening points in

the United States while en route

between the port of arrival and the point

of destination of its imported cargo, (2)

the use of an instrument while en route

from such point of destination of

imported cargo to a point where export

cargo is to be loaded or to an exterior

port of departure by a reasonably direct

route to, or nearer to, the place of such

loading or departure, or (3) the use of a

‘‘container’’ as defined in the Customs

Convention on Containers (together

with its normal accessories and

equipment if imported therewith), when

such container arrives empty while en

route between the port of arrival and a

point where export cargo is to be loaded

or from that point to an exterior port of

departure by a reasonably direct route

to, or nearer to, the place of such

loading or departure, provided that such

point-to-point traffic is incidental to the

efficient and economical utilization of

the instrument in the course of its use

in international traffic.

By a document published in the

Federal Register on October 4, 1996 (61

FR 51849), Customs proposed to amend

§ 10.41a(f) so as to apply only to

instruments of international traffic other

than containers as defined in Article 1

of the Customs Convention on

Containers, and to add a new paragraph

(g) to § 10.41a, that would provide that

such containers would be deemed to

remain in international traffic as long as

they exited the U.S. within 365 days of

the date of their admission to the U.S.

This would be so regardless of the fact

that the containers engaged in point-topoint local traffic while in the United

States during this period.

This proposal was intended to

simplify Customs treatment of

containers for both the public as well as

Customs itself in that the more difficultto-apply requirements set forth in

§ 10.41a(f) would no longer apply to

containers, these requirements

constituting a restrictive and

cumbersome impediment to the efficient

and economical utilization of such

containers while in the U.S.

Inasmuch as containers specially

designed and equipped for carriage by

one or more modes of transport were

duty-free under subheading 8609.00.00,

Harmonized Tariff Schedule of the

United States, Customs expected little

or no loss of revenue to the Government

under the proposal.

Eight comments were submitted in

response to the notice of proposed

rulemaking, five of which fully

supported the proposal. A discussion,

together with Customs analysis, of the

questions raised about the proposed rule

appears below.

Discussion of Comments

Comment

One commenter believed that the

proposal would permit a more flexible

use of railcars.

Customs Response

While § 10.41a(g) will facilitate

intermodal transportation insofar as the

domestic movement of the subject

containers is concerned, it must be

emphasized that foreign railcars, which

may sometimes be used to transport

such containers, are still governed by

the provisions of § 123.12, Customs

Regulations (19 CFR 123.12), as to the

permissible domestic traffic in which

they may engage. Pursuant to Article 1,

section (b)(v), of the Customs

Convention on Containers, the term

‘‘container’’ expressly excludes

vehicles. Thus, railcars are not

containers within the scope of, and are

not covered by, § 10.41a(g).

Comment

One commenter suggested that

§§ 123.14 and 123.16, Customs

Regulations (19 CFR 123.14, 123.16), be

amended to permit Canadian tractors

and trailers to engage in point-to-point

local traffic within the United States,

similar to that permitted for containers

in proposed § 10.41a(g).

Customs Response

Customs has this suggestion under

consideration. Such a proposal would

be the subject of a separate publication

in the Federal Register, should Customs

decide to proceed therewith.

Comment

One commenter requested that certain

wooden containers, which were capable

of being enlarged by the use of

removable sections, and were used to

import bearings, be included in

proposed § 10.41a(g).

Customs Response

Customs is satisfied that the wooden

containers, which were described in

literature furnished by the commenter,

fall within the purview of § 10.41a(g).

Comment:

Two commenters, on behalf of various

container lessors, owners and operators,

raised a number of objections to

proposed § 10.41a(g).

Specifically, these commenters stated

that requiring entry for containers

remaining in the U.S. in excess of the

365-day limit would impose an onerous

financial and paperwork burden on the

container owner, in terms of the

administrative costs of tracking and

monitoring the subject containers, and

making arrangements, if necessary, for

their entry.

Moreover, in the case of a leasing

company, the 365-day limit would be

very difficult, or impossible, to comply

with, because if a container were on

lease to a shipping line, the section

leasing company would not know when

it entered the United States; and should

the container be returned to the leasing

company by the shipping line, the lessor

would not know how much of the 365-

day period had expired.

In addition, entry would be required

for containers left in the U.S. in excess

of the 365-day period, even though they

might have remained unused at a depot

during this time and thus posed no

competitive threat to any domestic or

other transport.
Federal Register / Vol. 62, No. 151 / Wednesday, August 6, 1997 / Rules and Regulations 42211

To this latter end, it was declared

that, from time to time, a container

could remain in the U.S. in excess of the

365-day limit, for example, because of a

reduced demand therefor, as in a

recession, or because the container had

been stored/stacked in a manner which

precluded its ready accessibility

(although one commenter remarked that

the time a container remained unused in

this manner averaged only a few days or

weeks). In a recession, a leasing

company’s containers, rather than those

owned by a shipping company, were

asserted to be more likely to remain

unused at a depot, since the shipper

would rely on its own containers during

an economic slowdown, returning any

leased containers to the lessor.

Yet, notwithstanding these objections,

the commenters stated that they would

nevertheless support proposed

§ 10.41a(g) as long as they had the

option of continuing to operate under

existing § 10.41a(f).

Customs Response

Customs believes that § 10.41a(g)

significantly alleviates the burden of

tracking and monitoring containers

otherwise imposed by § 10.41a(f),

inasmuch as § 10.41a(g) focuses solely

on the dates of a container’s admission

to, and subsequent exit from, the U.S.

As such, § 10.41a(g) will simplify

Customs administration of the

applicable statutory and regulatory

authority, and, moreover, it will better

facilitate the domestic use of containers

for the parties concerned, by basically

permitting their unrestricted, and hence

more efficient and economical, use

within the U.S. In addition, the records

necessary to track and monitor the

movements of containers under

§ 10.41a(g) are those that are otherwise

generated and retained in the ordinary

course of business. A reference to this

latter effect is included in § 10.41a(g)(2).

By contrast, as pointed out by the

commenters who unreservedly

supported the amendment, § 10.41a(f)

has consumed unduly burdensome

amounts of time and effort expended in

container tracking and recordkeeping;

has created much confusion and

misunderstanding as to which domestic

uses of containers are or are not

permitted thereunder; and has caused

an inefficient and uneconomical

deployment of containers and related

facilities, resulting in higher costs for

carriers and shippers.

Consequently, Customs has

concluded that containers as defined in

Article 1 of the Customs Convention on

Containers will, as initially proposed, be

governed solely by § 10.41a(g), in place

of current § 10.41a(f) with its

cumbersome restrictions in this regard.

Entry pursuant to § 10.41a(g) would

be required only when the container

remained in the U.S. in excess of the

365-day period, an occurrence that

should be relatively rare especially in

the case of a container remaining

unused at a depot, given the fact that the

time a container so remains in the U.S.

ordinarily averages at most only a few

weeks, as stated by one of the

commenters. Thus, it fairly appears that

the container industry is already

generally operating well within the 365-

day limit.

Nevertheless, in light of the concerns

expressed by the commenters with

respect to any possible revisions in their

business practices that may be incurred

as a result of the adoption of § 10.41a(g),

Customs has determined that the effective date of the final rule should be

delayed for 120 days from the date of

publication of this document in the

Federal Register, in order to mitigate

any possible administrative impact

resulting from its implementation. In

this respect, Customs calculation of the

365-day period for subject containers

already in the United States would

begin as of the aforementioned date

without regard to any prior time

expended by the containers in this

country.

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 should

be adopted.

In addition, § 10.41a(f)(1) is changed

by adding a phrase which makes clear

that containers are no longer covered

thereunder, and are governed instead by

§ 10.41a(g)(1)–(3); to this end, a cross

reference to § 10.41a(g)(1)–(3) is also

included in § 10.41a(f)(1).

Furthermore, the last sentence of

§ 10.41a(g)(3), as proposed, is changed,

and an additional sentence is added

thereafter, in order to clarify and

confirm that if any container is removed

from international traffic and thus

becomes subject to entry under 19

U.S.C. 1484, the determination of the

value of the container for entry purposes

must be effected in the manner

prescribed by the Customs valuation

law (19 U.S.C. 1401a).

Regulatory Flexibility Act and

Executive Order 12866

The amendments simplify the

Customs treatment of containers for the

importing public in that the more

difficult-to-apply requirements set forth

in § 10.41a(f) will no longer apply to

containers. As such, pursuant to the

provisions of 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, these amendments are not

subject to the regulatory analysis or

other requirements of 5 U.S.C. 603 or

604, nor do they result in a ‘‘significant

regulatory action’’ under E.O. 12866.

List of Subjects in 19 CFR Part 10

Alterations, Bonds, Customs duties

and inspection, Exports, Imports,

Preference programs, Repairs, Reporting

and recordkeeping requirements, Trade

agreements.

Amendments to the Regulations

Part 10, Customs Regulations (19 CFR

part 10), is amended as set forth below.

PART 10—ARTICLES CONDITIONALLY

FREE, SUBJECT TO A REDUCED

RATE, ETC.

1. The general authority for part 10 is

revised, and the specific authority for

§ 10.41a continues, to read as follows:

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

Note 20, Harmonized Tariff Schedule of the

United States (HTSUS)), 1321, 1481, 1484,

1498, 1508, 1623, 1624, 3314;

* * * * *

Sections 10.41, 10.41a, 10.107 also issued

under 19 U.S.C. 1322;

* * * * *

2. Section 10.41a is amended by

revising paragraph (f) to read as follows;

by redesignating paragraphs (g), (h) and

(i), as (h), (i) and (j), respectively; and

adding a new paragraph (g) to read as

follows:

§ 10.41a Lift vans, cargo vans, shipping

tanks, skids, pallets, and similar

instruments of international traffic; repair

components.

* * * * *

(f)(1) Except as provided in paragraph

(j) of this section, 12 an instrument of

international traffic (other than a

container as defined in Article 1 of the

Customs Convention on Containers that

is governed by paragraphs (g)(1)-(3) of

this section) may be used as follows in

point-to-point traffic, provided such

traffic is incidental to the efficient and

economical utilization of the instrument

in the course of its use in international

traffic:

(i) Picking up and delivering loads at

intervening points in the United States

while en route between the port of

arrival and the point of destination of its

imported cargo; or

(ii) Picking up and delivering loads at

intervening points in the United States
42212 Federal Register / Vol. 62, No. 151 / Wednesday, August 6, 1997 / Rules and Regulations

while en route from the point of

destination of imported cargo to a point

where export cargo is to be loaded or to

an exterior port of departure by a

reasonably direct route to, or nearer to,

the place of such loading or departure.

(2) Neither use as enumerated in

paragraph (f)(1)(i) or (ii) of this section

constitutes a diversion to unpermitted

point-to-point local traffic within the

United States or a withdrawal of an

instrument in the United States from its

use as an instrument of international

traffic under this section.

(g)(1) Except as provided in paragraph

(j) of this section, a container (as defined

in Article 1 of the Customs Convention

on Containers) that is designated as an

instrument of international traffic is

deemed to remain in international

traffic provided that the container exits

the U.S. within 365 days of the date on

which was admitted under this section.

An exit from the U.S. in this context

means a movement across the border of

the United States into a foreign country

where either:

(i) All merchandise is unladen from

the container; or

(ii) Merchandise is laden aboard the

container (if the container is empty).

(2) The person who filed the

application for release under paragraph

(a)(1) of this section is responsible for

keeping and maintaining such records,

otherwise generated and retained in the

ordinary course of business, as may be

necessary to establish the international

movements of the containers. Such

records shall be made available for

inspection by Customs officials upon

reasonable notice.

(3) If the container does not exit the

U.S. within 365 days of the date on

which it is admitted under this section,

such container shall be considered to

have been removed from international

traffic, and entry for consumption must

be made within 10 business days after

the end of the month in which the

container is deemed removed from

international traffic. When entry is

required under this section, any

containers considered removed from

international traffic in the same month

may be listed on one entry. Such entry

may be made at any port of entry. Under

19 U.S.C. 1484(a)(1)(B), the importer of

record is required, using reasonable

care, to complete the entry by filing

with Customs the declared value,

classification and rate of duty applicable

to the merchandise. The importer of

record must use the value of the

container as determined in accordance

with section 402, Tariff Act of 1930 (19

U.S.C. 1401a), as amended by the Trade

Agreements Act of 1979 (TAA).

* * * * *

George J. Weise,

Commissioner of Customs.

Approved: June 25, 1997.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 97–20648 Filed 8–5–97; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF THE TREASURY

31 CFR Part 27

Departmental Offices; Civil Penalty

Assessment for Misuse of Department

of the Treasury Names, Symbols, Etc.

AGENCY: Departmental Offices, Treasury.

ACTION: Interim rule.

SUMMARY: This interim rule sets forth

the procedures by which civil penalties

may be imposed for violations of the

statutory prohibition against misuse of

Department of the Treasury names,

symbols, titles, abbreviations, initials,

seals, or badges. Section 333(c) of title

31, United States Code, authorizes the

Secretary of the Treasury to impose

these civil penalties. These regulations

are being promulgated to ensure that

persons assessed a civil penalty under

section 333(c) are accorded due process.

Published in the proposed rules

section of this Federal Register, is a

notice of proposed rulemaking inviting

comments on the interim rule for a 60-

day period following the publication

date of this interim rule.

EFFECTIVE DATE: The interim regulations

are effective August 6, 1997.

FOR FURTHER INFORMATION CONTACT:

Karen Wehner, Senior Advisor, Office of

Enforcement, 202–622–0300 (not a tollfree call).

SUPPLEMENTARY INFORMATION:

Introduction

This document sets forth an interim

rule implementing 31 U.S.C. 333(c),

which authorizes the Secretary of the

Treasury to impose a civil penalty on

any person who violates 31 U.S.C.

333(a), which prohibits the misuse of

Department of the Treasury names,

symbols, etc. Section 333(c) was enacted

by title III, section 312(l)(1) of the social

Security Independence and Program

improvements Act of 1994, Pub. L. 103–

296 (August 15, 1994).

Background

Section 333(a) of title 31, United

States Code, prohibits, in connection

with any advertisement, solicitation,

business activity, or product, the

unauthorized use (1) of the words,

abbreviations, initials, symbols, or

emblems of Treasury or any of its

components; (2) the titles of any officer

or employee of the Treasury or any of

its components; or (3) the words

‘‘United States Savings Bond’’ or the

name of any other obligation issued by

the Treasury. This prohibition extends

to colorable imitations of words, titles,

abbreviations, initials, symbols, and

emblems. Section 333(b) provides that

the prohibition applies regardless of

whether the violator has used a

disclaimer of affiliation with the United

States Government or any agency

thereof.

Section 333(c) provides that Secretary

of the Treasury may impose a civil

penalty on any person who violates

section 333(a), in an amount not to

exceed $5,000 for each use of material

in violation of section 333(a), unless the

use is in a broadcast or telecast, in

which case the penalty shall not exceed

$25,000 for each use. Section 333(c)

imposes a three-year statute of

limitation within which the Secretary of

the Treasury may assess civil penalties,

beginning on the date of the violation of

section 333(a). Section 333(c) also

imposes a two-year statute of limitation

within which the Secretary of the

Treasury may commence a civil action

to recover any civil penalty imposed

under section 333(c), beginning on the

date the civil penalty was assessed.

Section 333(d) sets forth criminal

penalties for knowing violations of

333(a). However, section 333(d)(3)

provides that no criminal proceeding

may be commenced under its provisions

if a civil penalty previously has been

assessed for that violation under section

333(c). Similarly, section 333(c)(4)

provides that no civil penalty may be

assessed under its provisions for a

violation if a criminal proceeding has

been commenced for that violation

under section 333(d).

These regulations implement the

authority of the Secretary of the

Treasury under section 333(c) to impose

a civil penalty on any person who

violates section 333(a). The regulations

also ensure that any person assessed

with a civil penalty pursuant to section

333(c) is accorded due process in the

civil penalty proceeding. Specifically,

the regulations provide that any person

assessed with a civil penalty pursuant to

section 333(c): (1) Shall receive a notice

of assessment citing the statutory

provisions which allegedly have been

violated, the factual basis for the

allegation, the amount of any proposed

civil monetary penalty and/or any other

proposed civil or equitable remedy; (2)