Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Proposed Rules 11437 

of the Port Baltimore. Vessels already at 

berth, mooring, or anchor at the time the 

safety zone is implemented do not have 

to depart the safety zone. All vessels 

underway within this safety zone at the 

time it is implemented are to depart the 

zone. 

(3) Persons desiring to transit the area 

of the safety zone must first request 

authorization from the Captain of the 

Port Baltimore or his designated 

representative. To seek permission to 

transit the area, the Captain of the Port 

Baltimore and his designated 

representatives can be contacted at 

telephone number 410–576–2693 or on 

Marine Band Radio, VHF–FM channel 

16 (156.8 MHz). The Coast Guard 

vessels enforcing this section can be 

contacted on Marine Band Radio, VHF– 

FM channel 16 (156.8 MHz). Upon 

being hailed by a U.S. Coast Guard 

vessel, or other Federal, State, or local 

agency vessel, by siren, radio, flashing 

lights, or other means, the operator of a 

vessel shall proceed as directed. If 

permission is granted, all persons and 

vessels must comply with the 

instructions of the Captain of the Port 

Baltimore or his designated 

representative and proceed at the 

minimum speed necessary to maintain a 

safe course while within the zone. 

(4) Enforcement. The U.S. Coast 

Guard may be assisted in the patrol and 

enforcement of the zone by Federal, 

State, and local agencies. 

(d) Enforcement period. This section 

will be enforced from 2 p.m. through 

7 p.m. on May 25, 2012, and, if 

necessary due to inclement weather, 

from 2 p.m. through 7 p.m. on May 31, 

2012. 

Dated: February 10, 2012. 

Mark P. O’Malley, 

Captain, U.S. Coast Guard, Captain of the 

Port Baltimore. 

[FR Doc. 2012–4397 Filed 2–24–12; 8:45 am] 

BILLING CODE 9110–04–P 

POSTAL SERVICE 

39 CFR Part 233 

Inspection Service Authority; Seizure 

and Forfeiture 

AGENCY: Postal ServiceTM. 

ACTION: Proposed rule. 

SUMMARY: The Postal Service proposes 

to revise its regulations with regard to 

forfeiture authority and proceedings. 

These new provisions would implement 

specific requirements in compliance 

with the Civil Asset Forfeiture Reform 

Act (CAFRA) of 2000. 

DATES: Submit comments on or before 

March 28, 2012. 

ADDRESSES: Mail or deliver written 

comments to the Postal Inspection 

Service, Room 3128, 475 L’Enfant Plaza 

SW., Washington, DC 20260–2100. 

Written comments may be inspected 

and photocopied (by appointment only) 

at the USPS Headquarters Library, 475 

L’Enfant Plaza SW., 11th Floor North, 

Washington, DC, between 9 a.m. and 

4 p.m., Monday through Friday. Please 

call 202–268–2906 to make an 

appointment. Email comments, 

containing the name and address of the 

commenter, may be sent to: 

REMattes@uspis.gov with a subject line 

of ‘‘CAFRA comments.’’ Faxed 

comments are not accepted. 

FOR FURTHER INFORMATION CONTACT: 

R. Emmett Mattes III, Chief Counsel, 

U.S. Postal Inspection Service, 202– 

268–7732. 

SUPPLEMENTARY INFORMATION: 

I. Overview 

First, this rulemaking consolidates the 

Postal Service’s rules and regulations 

regarding the seizure and forfeiture of 

property into three sections, 39 CFR 

233.7, 233.8, and 233.9 from the 

previous four sections, 39 CFR 233.7, 

233.8, 233.9, and 233.10. The proposed 

revision consolidates sections 233.8 and 

233.9, and treats seizures involving 

personal use quantities of controlled 

substances and the expedited release of 

conveyances being forfeited for a drugrelated offense in the same manner. It 

also incorporates prior section 233.10, 

Special Notice Provisions, into new 

paragraph 233.8(f). The new rules also 

create a new section 233.9 that 

addresses regulations governing 

remission or mitigation of 

administrative, civil, and criminal 

forfeitures, and incorporates the rules 

and regulations previously contained in 

paragraph 233.7(j). 

Second, this rulemaking identifies the 

scope of authority available to the Postal 

Service to seize property for forfeiture, 

updates definitions, and provides 

procedures governing practical issues 

regarding the seizure, custody, 

inventory, appraisal, settlement, and 

release of property subject to forfeiture. 

See proposed paragraphs 233.7(a)–(g). 

Third, the rule proposes conforming 

the seizure and forfeiture regulations of 

the Postal Service to address procedural 

changes necessitated by CAFRA. The 

rule also incorporates CAFRA’s 

innocent owner defense into the 

remission regulations. Where CAFRA is 

silent or ambiguous on a subject relating 

to administrative forfeiture procedure, 

the proposed rule interprets CAFRA 

based on case law and agency expertise 

and experience. 

Fourth, the rule proposes updating 

the regulations to conform with other 

authorities and current forfeiture 

practice. Thus, proposed paragraph 

233.7(n) adds a provision to the 

regulations allowing for the preforfeiture disposition of seized property 

when the property is liable to perish or 

to waste or to be greatly reduced in 

value while being held for forfeiture; or 

when the expense of holding the 

property is or will be disproportionate 

to its value. Paragraph 233.7(l) clarifies 

that administrative and criminal judicial 

forfeiture proceedings are not mutually 

exclusive, and paragraph 233.7(r) 

affirms that the Postal Service is not 

liable for attorney fees in any 

administrative forfeiture proceeding. 

Paragraph 233.7(j)(1)(i)(B) updates the 

forfeiture regulations by adding the 

option of publishing notice for 

administrative forfeitures on an official 

Government Internet site instead of in a 

newspaper. 

Fifth, the proposed rule amends the 

designated official provision at 

paragraph 233.9(a)(2)(A) governing 

petitions for remission or mitigation of 

forfeiture, clarifies the existing 

regulations pertaining to victims, and 

makes remission available to third 

parties who reimburse victims under an 

indemnification agreement. 

II. Discussion 

A. Consolidation of the Regulations 

Governing the Seizure and Forfeiture of 

Property 

The proposed rule supersedes prior 

sections 233.7, 233.8, 233.9, and 233.10 

and replaces them with new sections 

233.7, 233.8, and 233.9. Section 233.7 

contains generally applicable provisions 

for seizures and forfeitures by the Postal 

Service. Section 233.8 contains 

expedited procedures for property 

seized by the Postal Service for 

violations involving personal use 

quantities of a controlled substance, 

including conveyances. Section 233.9 

replaces the prior paragraph 233.7(j), 

and more clearly defines the rules 

relevant to remission and mitigation of 

forfeitures. 

B. CAFRA Procedural Changes 

Incorporated in the Proposed Rule 

Section 2 of CAFRA enacted 18 U.S.C. 

983, which includes the general rules 

for civil forfeiture proceedings. This 

rule proposes to implement certain 

procedural changes in the conduct of 

administrative forfeitures as required by 

18 U.S.C. 983. These changes address 

procedures relating to notice of seizure, 

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11438 Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Proposed Rules 

filing of claims, hardship requests, and 

releases of property. 

Notice of seizure. Section 983(a)(1) 

establishes time deadlines and other 

procedures for the sending of personal 

written notices of seizures to parties 

with a potential interest in the property. 

These time deadlines and procedures 

are in addition to, and in some respects 

different from, procedures under the 

Customs laws. The Customs laws 

concerning forfeiture procedures 

(19 U.S.C. 1602–1618), which are 

incorporated by reference ‘‘insofar as 

applicable’’ in forfeiture statutes 

enforced by the Postal Service, require 

that ‘‘[w]ritten notice of seizure together 

with information on the applicable 

procedures shall be sent to each party 

who appears to have an interest in the 

seized property.’’ See 19 U.S.C. 1607. 

CAFRA, as codified at 18 U.S.C. 

983(a)(1), requires that notice be sent 

within 60 days of seizure, or within 

90 days of a seizure by a state or local 

agency, or within 60 days of 

establishing the interested party’s 

identity if it is not known at the time of 

seizure. CAFRA also provides that a 

supervisory official of the seizing 

agency may grant a single 30-day 

extension if certain conditions are 

satisfied and that extensions thereafter 

may only be granted by a court. 

Paragraph 233.7(j) of the proposed rule 

incorporates these notice-related 

provisions of CAFRA. 

Filing of administrative claims. 

Section 983(a)(2) of title 18 of the 

United States Code modifies the 

procedure for filing a claim to seized 

property. The Customs statute, which 

was previously applicable to claims in 

Postal Service forfeitures, provides that, 

to contest an administrative forfeiture, a 

claimant has 20 days after the first 

published notice of seizure to file with 

the seizing agency both a claim and a 

cost bond for $5,000 or 10 percent of the 

property’s value, whichever is less, but 

not less than $250. See 19 U.S.C. 1608. 

Section 983(a)(2) eliminates the cost 

bond requirement for forfeitures covered 

by CAFRA and allows the filing of 

claims not later than the deadline set 

forth in a personal notice letter. The 

deadline must be at least 35 days after 

the date the letter was mailed. Persons 

not receiving a notice letter must file a 

claim within 30 days after the date of 

final publication of notice of seizure. 

Section 983(a)(2) also adds provisions 

specifying the information required for 

a valid claim. It reflects the amendments 

to 18 U.S.C. 983(a)(2)(C)(ii) in the Paul 

Coverdell National Forensic Sciences 

Improvement Act of 2000, Public Law 

106–561, 114 Stat. 2787, which 

retroactively deleted CAFRA’s original 

requirements that claimants provide 

with their claims documentary evidence 

supporting their interest in the seized 

property, and state that their claims are 

not frivolous. Consequently, pursuant to 

section 21 of CAFRA (establishing 

CAFRA’s effective date), the amended 

section 983(a)(2)(C)(ii) applies to any 

forfeiture proceeding commenced on or 

after August 23, 2000. Paragraph 

233.7(k) of the proposed rule 

incorporates these section 983(a)(2) 

changes to the claim procedures. 

Release of seized property if forfeiture 

is not commenced. Paragraph 233.7(p) 

of the proposed rule provides 

procedures to implement 18 U.S.C. 

983(a)(3). Section 983(a)(3) requires the 

release of seized property pursuant to 

regulations promulgated by the Attorney 

General and prohibits the United States 

from pursuing further action for civil 

forfeiture if the United States does not 

institute judicial forfeiture proceedings 

against the property within 90 days after 

an administrative claim has been filed 

and no extension of time has been 

obtained from a court. 

Hardship request. Paragraph 233.7(m) 

of the proposed rule implements 

18 U.S.C. 983(f), which provides 

procedures and criteria for the release of 

seized property (subject to certain 

exceptions) pending the completion of 

judicial forfeiture proceedings when a 

claimant’s request for such release 

establishes that continued Government 

custody will cause substantial hardship 

that outweighs the risk that the property 

will not remain available for forfeiture. 

Expedited release of property. Section 

233.8 of the proposed rule incorporates 

and amends, to the extent required by 

CAFRA, the pre-existing regulations for 

expedited forfeiture proceedings for 

certain property. The prior regulations, 

39 CFR 233.9, provided expedited 

procedures for conveyances seized for 

drug-related offenses and property 

seized for violations involving personal 

use quantities of a controlled substance. 

By repealing 21 U.S.C. 888 (expedited 

procedures for seized conveyances), 

CAFRA eliminated the statutory basis 

for the expedited procedure regulations 

pertaining to drug-related conveyance 

seizures. Accordingly, section 233.8 

omits provisions applicable to drugrelated conveyance seizures. The 

remaining provisions apply only where 

property is seized for administrative 

forfeiture involving controlled 

substances in personal use quantities. 

Remissions and mitigations. For 

consistency with CAFRA’s uniform 

innocent owner defense, 18 U.S.C. 

983(d), the proposed rule incorporates 

the innocent owner provisions of 

sections 983(d)(2)(A) and 983(d)(3)(A) 

in a new 39 CFR 233.9. 

Forfeitures affected by CAFRA and 

the proposed rule. CAFRA’s changes 

apply to civil forfeiture proceedings 

commenced on or after August 23, 2000, 

with the exception of civil forfeitures 

under the following: the Tariff Act of 

1930 or any other provision of law 

codified in title 19; the Internal Revenue 

Code of 1986; the Federal Food, Drug 

and Cosmetic Act (21 U.S.C. 301 et 

seq.); the Trading with the Enemy Act 

(50 U.S.C. App. sec. 1 et seq.) or the 

International Emergency Economic 

Powers Act (50 U.S.C. 1701 et seq.); or 

Section 1 of title VI of the Act of June 

15, 1917 (22 U.S.C. 401). 

C. Changes to the Previous Regulations 

Governing the Seizure and Forfeiture of 

Property by the Postal Service 

Pre-forfeiture disposition. The 

provision providing for the preforfeiture disposition of seized property, 

paragraph 233.7(n), is needed to 

implement the authority of 19 U.S.C. 

1612(b), one of the procedural Customs 

statutes incorporated by reference into 

the forfeiture statutes enforced by the 

Postal Service. Section 1612(b) 

authorizes pre-forfeiture disposal of 

seized property, pursuant to regulations, 

when the property is liable to perish or 

to waste or to be greatly reduced in 

value by keeping, or when the costs of 

maintaining the property pending 

forfeiture are disproportionate to the 

property’s value. The proposed rule 

enables the Postal Service to use the 

authority of section 1612(b) in 

appropriate cases. 

Internet publication. The proposed 

rule updates the forfeiture regulations 

by adding, at paragraph 233.7(j)(1)(i)(B), 

a provision for the publication of 

administrative forfeiture notices on the 

Internet instead of in newspapers. The 

statute governing the publication of 

notice in administrative forfeiture 

proceedings, 19 U.S.C. 1607, does not 

require a specific means of publication. 

Paragraph 233.7(j)(1)(i)(B) will provide 

the Postal Service with the choice to use 

the Internet as a more effective and less 

costly alternative to the newspaper 

publication provided for in paragraph 

233.7(j)(1)(i)(A). 

This grant of authority parallels a 

similar one in Rule G(4)(a)(iv)(C) of the 

Supplemental Rules for Admiralty or 

Maritime Claims and Asset Forfeiture 

Actions. Pursuant to Rule G(4)(a)(iv)(C), 

in all civil judicial forfeitures, the 

Government may now employ the 

option of giving public notice through 

the Internet rather than in a newspaper. 

Section 233.7(j)(1)(i)(B) will permit the 

Postal Service likewise to use the 

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Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Proposed Rules 11439 

Internet to provide notice in 

administrative forfeitures, a cost savings 

that is particularly important as the 

volume of administrative forfeitures is 

much greater than judicial forfeitures. 

There is a strong statistical proof that 

Internet access is now available to the 

vast majority of United States residents. 

Internet access continues to grow, while 

newspaper circulation is declining; and 

in some markets, the option to publish 

in a traditional newspaper may not be 

available in the next few years. 

D. Regulations at 39 CFR 233.9 

Governing the Remission or Mitigation 

of Forfeitures 

This proposed rule includes 

modifications to the regulations 

governing the remission or mitigation of 

forfeiture at 39 CFR 233.9. Paragraph 

233.9(2)(A), (B) identifies the Chief 

Counsel of the Postal Inspection 

Service, or attorneys or managers 

working under that person’s 

supervision, as the pertinent designated 

official to whom authority to grant 

remission and mitigation has been 

delegated. 

Second, the definition of ‘‘victim’’ in 

paragraph 233.9(b) is modified to make 

remission available to qualified third 

parties who reimburse a victim pursuant 

to an indemnification agreement. In 

addition, paragraph 233.9(h) is modified 

to specify the procedures applicable to 

persons seeking remission as victims. 

E. Summary of the Impact of the 

Proposed Changes on the Public 

CAFRA enacted additional due 

process protections for property owners 

in Federal civil forfeiture proceedings. 

Section 2(a) of CAFRA, codified at 18 

U.S.C. 983, requires prompt notification 

of administrative forfeiture proceedings. 

As a general rule, in any administrative 

forfeiture proceeding under a civil 

forfeiture statute, the Government must 

send written notice of the seizure and 

the Government’s intent to forfeit the 

property to all persons known to the 

Government who might have an interest 

in the property within 60 days of a 

seizure (or 90 days of a seizure made by 

state or local law enforcement 

authorities and transferred for Federal 

forfeiture). 

CAFRA also changed the procedure 

for filing administrative claims. Section 

983(a)(2)(B) dictates that when the 

agency both publishes and sends notice 

of the seizure and its intent to forfeit the 

property, an owner who receives notice 

by mail has 35 days from the date of 

mailing, and if the personal notice is 

sent but not received, an owner has 30 

days from the date of final publication 

to file a claim with the agency. In 

addition, the notice provision in 

paragraph 233.7(j)(1)(i)(B) was updated 

to allow the agencies to publish 

administrative forfeiture notices on the 

Internet instead of in newspapers, 

consistent with the procedure for civil 

judicial forfeitures under Rule 

G(4)(a)(iv)(C). 

The filing of a valid claim compels 

the agency to refer the matter to the U.S. 

Attorney. To preserve the option to seek 

civil judicial forfeiture, the U.S. 

Attorney must do one of the following 

within 90 days: (1) Commence a civil 

judicial forfeiture action against the 

seized property; (2) obtain an 

indictment alleging the property is 

subject to criminal forfeiture; (3) obtain 

a good cause extension of the deadline 

from the district court; or (4) return the 

property pending the filing of a 

complaint. If the Government fails to 

take any of these steps within the 

statutory deadline, it must promptly 

release the property and is barred from 

taking any further action to civilly 

forfeit the property in connection with 

the underlying offense. 

Prior to CAFRA, claims in an 

administrative forfeiture required an 

accompanying bond of either $5,000 or 

10 percent of the value of the seized 

property, whichever was lower. Section 

983(a)(2) eliminated the bond 

requirement to give the property owner 

greater access to Federal court. 

However, to prevent frivolous claims, 

CAFRA requires the claimant to state 

the basis for that person’s interest in the 

property in the claim under oath. 

Under CAFRA, claimants also have a 

right to petition for immediate release of 

seized property on grounds of hardship 

with a 30-day deadline on judicial 

resolution of such petitions. Section 

983(f)(7) provides that if the court grants 

a petition, it may also enter any order 

necessary to ensure that the value of the 

property is maintained during the 

pendency of the forfeiture action, 

including permitting inspection, 

photographing, and inventory of the 

property, fixing a bond pursuant to Rule 

E(5) of the Supplemental Rules for 

Admiralty or Maritime Claims and Asset 

Forfeiture Actions, or requiring the 

claimant to obtain or maintain 

insurance on the property. It also 

provides that the Government may place 

a lien or file a lis pendens on the 

property. 

It is important to note that CAFRA’s 

deadlines apply only to civil forfeiture 

actions initiated by commencement of 

an administrative proceeding under 

section 983(a) and do not apply to 

actions commenced solely as civil 

judicial forfeitures. However, the vast 

majority of civil forfeitures are handled 

administratively. 

CAFRA changed the procedures for 

the expedited release of property for 

conveyances and property seized for 

drug offenses to apply only where 

property is seized for administrative 

forfeiture involving personal use 

quantities of a controlled substance. 

Although CAFRA enacted a provision 

granting attorney fees to substantially 

prevailing parties in civil judicial 

forfeitures, the regulations make it clear 

that the Postal Service is not liable for 

attorney fees or costs in administrative 

forfeiture proceedings, even if the 

matter is referred to the U.S. Attorney 

and the U.S. Attorney declines to 

initiate a judicial forfeiture on the 

property. 

In addition to implementing these 

CAFRA reforms, the new regulations 

allow the Postal Service to sell property 

that is deteriorating rapidly in order to 

preserve the property’s value pending 

resolution of the forfeiture. This 

disposition must be authorized by 

agency headquarters. The regulations 

also specify that the seizing agency must 

promptly deposit any seized U.S. 

currency over $5,000 into the Hold 

Account—Seizure and Forfeiture under 

the control of the Postal Inspection 

Service pending forfeiture. The only 

exception is for currency that must be 

retained because it has a significant, 

independent, tangible evidentiary 

purpose. 

The new rule changes some of the 

procedures relating to crime victims. 

The definition of victim is modified to 

make remission available to qualified 

third parties who reimburse a victim 

pursuant to an insurance or other 

indemnification agreement. See 

proposed paragraph 233.9(b)(23). In 

addition, paragraph 233.9(h) is 

reorganized and a new paragraph (h)(1) 

is added to specify the filing procedures 

applicable to persons seeking remission 

as victims. This revision is necessary 

because the current petition filing 

procedures in paragraph 233.7(j) are 

applicable to owners and lienholders, 

but not to victims. Paragraph 233.9(h)(9) 

clarifies that the amount of 

compensation available to a particular 

victim may not exceed the victim’s 

share of the net proceeds of the 

forfeiture associated with the activity 

that caused the victim’s loss. In other 

words, a victim is not entitled to full 

compensation, but only the amount of 

compensation available from the 

forfeited property. Also, the new rule 

makes the statutory innocent owner 

provisions at 18 U.S.C. 983(d)(2)(A) and 

(d)(3)(A) applicable to all owner and 

lienholder petitions for remission. 

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11440 Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Proposed Rules 

List of Subjects in 39 CFR Part 233 

Administrative practice and 

procedure, Crime, Law enforcement, 

Penalties, Privacy. 

Accordingly, for the reasons stated, 

the Postal Service proposes to amend 39 

CFR Part 233 as follows: 

PART 233—INSPECTION SERVICE 

AUTHORITY 

1. The authority citation for 39 CFR 

Part 233 is revised to read as follows: 

Authority: 39 U.S.C. 101, 102, 202, 204, 

401, 402, 403, 404, 406, 410, 411, 1003, 

3005(e)(1); 12 U.S.C. 3401–3422; 18 U.S.C. 

981, 983, 1956, 1957, 2254, 3061; 21 U.S.C. 

881; Omnibus Budget Reconciliation Act of 

1996, sec. 662 (Pub. L. 104–208). 

2. Section 233.7 is revised to read as 

follows: 

§ 233.7 Forfeiture authority and 

procedures. 

(a) Scope of Regulations. 

(1) These regulations apply to all 

forfeitures administered by the United 

States Postal Service with the exception 

of seizures and forfeitures under the 

statutes listed in 18 U.S.C. 983(i). The 

authority to conduct administrative 

forfeitures derives from the procedural 

provisions of the Customs laws 

(19 U.S.C. 1602–1618) where those 

provisions are incorporated by reference 

in the substantive forfeiture statutes. 

(2) These regulations will apply to all 

forfeiture actions commenced on or after 

[EFFECTIVE DATE]. 

(b) Designation of officials having 

administrative forfeiture authority— 

(1) Administrative forfeiture 

authority. The Chief Postal Inspector is 

authorized to conduct administrative 

forfeitures under the statutes identified 

in paragraph (2) of this section, 

following, where applicable, the 

procedures provided by the customs 

laws of the United States (19 U.S.C. 

1602–1618) and to pay valid liens and 

mortgages against property that has been 

so forfeited. 

(2) Authority of the Chief Postal 

Inspector. The Chief Postal Inspector is 

authorized to perform all duties and 

responsibilities necessary on behalf of 

the Postal Service and the Office of 

Inspector General to enforce 18 U.S.C. 

981, 983, 2254; 21 U.S.C. 863(c), 881; 

and 31 U.S.C. 5317; following, where 

applicable, the procedures provided by 

the Customs laws of the United States 

(19 U.S.C. 1602–1618), and to pay valid 

liens and mortgages against property 

that has been so forfeited. The Chief 

Postal Inspector is authorized to 

delegate all or any part of this authority 

to Deputy Chief Inspectors, Inspectors 

in Charge, and Inspectors of the Postal 

Inspection Service, and to issue such 

instructions as may be necessary to 

carry out this authority. 

(3) State adoption. The seizure of 

property by a state or local law 

enforcement agency or other entity or 

individual may be adopted for forfeiture 

by the Postal Inspection Service, as 

appropriate under its seizure authority 

pursuant to subparagraphs (1) and (2). 

(c) Definitions. As used in this 

section, the following terms shall have 

the meanings specified: 

(1) Administrative forfeiture means 

the process by which property may be 

forfeited by the Postal Inspection 

Service rather than through judicial 

proceedings. Administrative forfeiture 

has the same meaning as nonjudicial 

forfeiture, as that term is used in 18 

U.S.C. 983. 

(2) Appraised value means the 

estimated market value of property at 

the time and place of seizure if such or 

similar property was freely offered for 

sale between a willing seller and a 

willing buyer. 

(3) Appropriate official means the 

Chief Postal Inspector or that person’s 

designee, or where the term 

‘‘appropriate official’’ means the office 

or official identified in the notice 

published or personal written notice in 

accordance with 233.7(j). 

(4) Contraband means: 

(i) Any controlled substance, 

hazardous raw material, equipment or 

container, plants, or other property 

subject to summary forfeiture pursuant 

to sections 511(f) or (g) of the Controlled 

Substances Act (21 U.S.C. 881(f) or (g)); 

or 

(ii) Any controlled substance 

imported into the United States, or 

exported out of the United States, in 

violation of law. 

(5) Civil forfeiture proceeding means a 

civil judicial forfeiture action as that 

term is used in 18 U.S.C. 983. 

(6) Domestic value means the same as 

the term appraised value as defined in 

paragraph 233.7(c)(2). 

(7) Expense means all costs incurred 

to detain, inventory, safeguard, 

maintain, advertise, sell, or dispose of 

property under seizure, detained, or 

forfeited pursuant to any law. 

(8) File or filed has the following 

meanings: 

(i) A claim or any other document 

submitted in an administrative 

forfeiture proceeding is not deemed 

filed until actually received by the 

appropriate official identified in the 

personal written notice and the 

published notice specified in paragraph 

233.7(i). A claim is not considered filed 

if it is received by any other office or 

official. In addition, a claim in an 

administrative forfeiture proceeding is 

not considered filed if received only by 

an electronic or facsimile transmission. 

(ii) For purposes of computing the 

start of the 90-day period set forth in 18 

U.S.C. 983(a)(3), an administrative 

forfeiture claim is filed on the date 

when the claim is received by the 

designated official, even if the claim is 

received from an incarcerated pro se 

prisoner. 

(9) Interested party means any person 

who reasonably appears to have an 

interest in the property, based on the 

facts known to the Postal Inspection 

Service before a declaration of forfeiture 

is entered. 

(10) Judicial forfeiture means either a 

civil or a criminal proceeding in a 

United States District Court that may 

result in a final judgment and order of 

forfeiture. 

(11) Mail includes regular or certified 

U.S. mail, and mail and package 

transportation and delivery services 

provided by other private or commercial 

interstate carriers. 

(12) Nonjudicial forfeiture has the 

same meaning as administrative 

forfeiture. See paragraph 233.7(b)(1). 

(13) Person means an individual, 

partnership, corporation, joint business 

enterprise, estate, or other legal entity 

capable of owning property. 

(14) Property subject to administrative 

forfeiture means any personal property 

of the kinds described in 19 U.S.C. 

1607(a)(1)(4). 

(15) Property subject to forfeiture 

refers to all property that Federal law 

authorizes to be forfeited to the United 

States of America in any administrative 

forfeiture proceeding, in any civil 

judicial forfeiture proceeding, or in any 

criminal forfeiture proceeding. 

(d) Seizing property subject to 

forfeiture—(1) Authority to seize 

property. Postal Inspectors may seize 

assets under any Federal statute over 

which the Postal Inspection Service has 

investigative or forfeiture jurisdiction. 

(2) Turnover of assets seized by state 

and local agencies. 

(i) Property that is seized by a state or 

local law enforcement agency and 

transferred to the Postal Inspection 

Service for administrative or civil 

forfeiture may be adopted for 

administrative forfeiture without the 

issuance of any Federal seizure warrant 

or other Federal judicial process. 

(ii) Where a state or local law 

enforcement agency maintains custody 

of property pursuant to process issued 

by a state or local judicial authority, and 

notifies the Postal Inspection Service of 

the impending release of such property, 

the Postal Inspection Service may seek 

and obtain a Federal seizure warrant in 

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anticipation of a state or local judicial 

authority releasing the asset from state 

process for purposes of Federal seizure, 

and may execute such seizure warrant 

when the state or local law enforcement 

agency releases the property as allowed 

or directed by its judicial authority. 

(e) Inventory. The Postal Inspection 

Service shall prepare an inventory of 

any seized property. 

(f) Custody. 

(1) All property seized by Postal 

Inspectors for forfeiture shall be 

delivered to the custody of the U.S. 

Marshals Service, or custodian 

approved by the U.S. Marshals Service, 

as soon as possible after seizure, unless 

it is retained as evidence. 

(2) Seized U.S. currency (and to the 

extent practicable seized foreign 

currency and negotiable instruments) 

must be deposited promptly in the 

Holding Account—Seizure and 

Forfeiture under the control of the 

Postal Inspection Service pending 

forfeiture. Provisional exceptions to this 

requirement may be granted as follows: 

(i) If the seized currency has a value 

less than $5,000, and a supervisory 

official within the U.S. Attorney’s Office 

determines in writing that the currency 

is reasonably likely to serve a 

significant, independent, tangible, 

evidentiary purpose, or that retention is 

necessary while the potential 

evidentiary significance of the currency 

is being determined by scientific testing 

or otherwise, or 

(ii) The seized currency has a value 

greater than $5,000, and the Chief, Asset 

Forfeiture Money Laundering Section 

(AFMLS) determines in writing that the 

currency is reasonably likely to serve a 

significant, independent, tangible, 

evidentiary purpose, or that retention is 

necessary while the potential 

evidentiary significance of the currency 

is being determined by scientific testing 

or otherwise. 

(3) Seized currency has a significant 

independent, evidentiary purpose as 

those terms are used in 2(i) and 2(ii) of 

this paragraph if, for example, it bears 

fingerprint evidence, is packaged in an 

incriminating fashion, or contains a 

traceable amount of narcotic residue or 

some other substance of evidentiary 

significance. If only a portion of the 

seized currency has evidentiary value, 

only that portion should be retained; the 

balance should be deposited. 

(g) Appraisal. The Postal Inspection 

Service shall determine the domestic 

value of the seized property as soon as 

practicable following seizure. 

(h) Release before claim. 

(1) After seizure for forfeiture and 

prior to the filing of any claim, the 

appropriate official is authorized to 

release property seized for forfeiture 

provided: 

(i) The property is not contraband, 

evidence of a violation of law, or any 

property, the possession of which by the 

claimant, petitioner, or the person from 

who it was seized is prohibited by state 

or Federal law, and does not have a 

design or other characteristic that 

particularly suits it for use in illegal 

activities; and 

(ii) The appropriate official 

determines within 10 days of seizure 

that there is an innocent party with the 

right to immediate possession of the 

property or that the release would be in 

the best interest of justice or the 

Government. 

(2) Further, at any time after seizure 

and before any claim is filed, such 

seized property may be released if the 

appropriate official determines that 

there is an innocent party with the right 

to immediate possession of the property 

or that the release would be in the best 

interest of justice or the Government. 

(i) Commencing an Administrative 

Forfeiture. An administrative forfeiture 

proceeding begins when notice is first 

published in accordance with paragraph 

233.7(i)(1), or the first personal written 

notice is sent in accordance with 

paragraph 233.7(i)(2), whichever occurs 

first. 

(j) Notice of administrative 

forfeiture—(1) Notice by publication. 

(i) After seizing property subject to 

administrative forfeiture, the 

Appropriate Official shall select from 

the following options a means of 

publication reasonably calculated to 

notify potential claimants of the seizure 

and intent to forfeit and sell or 

otherwise dispose of the property: 

(A) Publication once each week for at 

least three successive weeks in a 

newspaper generally circulated in the 

judicial district where the property was 

seized; or 

(B) Posting a notice on an official 

Government Internet site for at least 30 

consecutive days. 

(ii) The published notice shall: 

(A) Describe the seized property; 

(B) State the date, statutory basis, and 

place of seizure; 

(C) State the deadline for filing a 

claim when personal written notice has 

not been received, at least 30 days after 

the date of final publication of the 

notice of seizure; and 

(D) State the identity of the 

appropriate official of the Postal 

Inspection Service and address where 

the claim must be filed. 

(2) Personal written notice—(i) 

Manner of providing notice. After 

seizing property subject to 

administrative forfeiture, the Postal 

Inspection Service, in addition to 

publishing notice, shall send personal 

written notice of the seizure to each 

interested party in a manner reasonably 

calculated to reach such parties. 

(ii) Content of personal written notice. 

The personal written notice sent by the 

Postal Inspection Service shall: 

(A) State the date when the personal 

written notice is sent; 

(B) State the deadline for filing a 

claim, at least 35 days after the personal 

written notice is sent; 

(C) State the date, statutory basis, and 

place of seizure; 

(D) State the identity of the 

appropriate official of the Postal 

Inspection Service and the address 

where the claim must be filed; and 

(E) Describe the seized property. 

(3) Timing of notice—(i) Date of 

personal notice. Personal written notice 

is sent on the date when the Postal 

Inspection Service causes it to be placed 

in the mail, or otherwise sent by means 

reasonably calculated to reach the 

interested party. The personal written 

notice required by 233.7(i)(2) shall be 

sent as soon as practicable, and in no 

case more than 60 days after the date of 

seizure (or 90 days after the date of 

seizure by a state or local law 

enforcement agency if the property was 

turned over to the Postal Inspection 

Service for the purpose of forfeiture 

under Federal law). 

(ii) Civil Judicial Forfeiture. If, before 

the time period for sending notice 

expires, the Government files a civil 

judicial forfeiture action against the 

seized property and provides notice of 

such action as required by law, personal 

notice of administrative forfeiture is not 

required under this paragraph. 

(iii) Criminal indictment. If, before the 

time period for sending notice under 

this paragraph expires, no civil judicial 

forfeiture action is filed, but a criminal 

indictment or information is obtained 

containing an allegation that the 

property is subject to forfeiture, the 

seizing agency shall either: 

(A) Send timely personal written 

notice and continue the administrative 

forfeiture proceeding; or 

(B) After consulting with the U.S. 

Attorney, terminate the administrative 

forfeiture proceeding and notify the 

custodian to return the property to the 

person having the right to immediate 

possession unless the U.S. Attorney 

takes steps necessary to maintain 

custody of the property as provided in 

the applicable criminal forfeiture 

statute. 

(4) Subsequent Federal seizure. If 

property is seized by a state or local law 

enforcement agency, but personal 

written notice is not sent to the person 

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from whom the property is seized 

within the time period for providing 

notice under paragraph 3(i), then any 

administrative forfeiture proceeding 

against the property may commence if: 

(i) The property is subsequently 

seized or restrained by the Postal 

Inspection Service pursuant to a Federal 

seizure warrant or restraining order and 

the Postal Inspection Service sends 

notice as soon as practicable, and in no 

case more than 60 days after the date of 

the Federal seizure; or 

(ii) The owner of the property 

consents to forfeiture of the property. 

(5) Tolling. 

(i) In states or localities where orders 

are obtained from a state court 

authorizing the turnover of seized assets 

to the Postal Inspection Service, the 

period from the date an application or 

motion is presented to the state court for 

the turnover order through the date 

when such order is issued by the court 

shall not be included in the time period 

for providing notice under paragraph 

3(i). 

(ii) If property is detained at an 

international border or port of entry for 

the purpose of examination, testing, 

inspection, obtaining documentation, or 

other investigation relating to the 

importation of the property into, or the 

exportation of the property from the 

United States, such period of detention 

shall not be included in the period 

described in paragraph 3(i). In such 

cases, the 60-day period shall begin to 

run when the period of detention ends, 

if a seizing agency seizes the property 

for the purpose of forfeiture to the 

United States. 

(6) Identity of interested party. If the 

Postal Inspection Service determines the 

identity or interest of an interested party 

after the seizure or adoption of the 

property, but before entering a 

declaration of forfeiture, the Postal 

Inspection Service shall send written 

notice to such interested party under 

paragraph 3(i) not later than 60 days 

after determining the identity of the 

interested party or the interested party’s 

interest. 

(7) Extending deadline for notice. The 

Chief Counsel for the Postal Inspection 

Service may extend the period for 

sending personal written notice under 

these regulations in a particular case for 

a period not to exceed 30 days (which 

period may not be further extended 

except by a court pursuant to 18 U.S.C. 

983(a)(1)(C), (D)), if the Chief Counsel 

for the Postal Inspection Service 

determines, and states in writing, that 

there is reason to believe that notice 

may have an adverse result, including: 

endangering the life or physical safety of 

an individual; flight from prosecution; 

destruction of or tampering with 

evidence; intimidation of potential 

witnesses; or otherwise seriously 

jeopardizing an investigation, or unduly 

delaying a trial. 

(8) Certification. The Chief Counsel 

for the Postal Inspection Service shall 

provide the written certification 

required under 18 U.S.C. 983(a)(1)(C) 

when the Government requests it and 

the conditions described in 18 U.S.C. 

983(a)(1)(D) are present. 

(k) Claims—(1) Filing. In order to 

contest the forfeiture of seized property 

in Federal court, any person asserting an 

interest in seized property subject to an 

administrative forfeiture proceeding 

under these regulations must file a 

claim with the appropriate official, after 

the commencement of the 

administrative forfeiture proceeding as 

defined in paragraph 233.7(h), and not 

later than the deadline set forth in a 

personal notice letter sent pursuant to 

paragraph 233.7(i)(2). If personal written 

notice is sent but not received, then the 

intended recipient must file a claim 

with the appropriate official not later 

than 30 days after the date of the final 

publication of the notice of seizure. 

(2) Contents of claim. A claim shall: 

(i) Identify the specific property being 

claimed; 

(ii) Identify the claimant and state the 

claimant’s interest in the property; and 

(iii) Be made under oath by the 

claimant, not counsel for the claimant, 

and recite that it is made under the 

penalty of perjury, consistent with the 

requirements of 28 U.S.C. 1746. An 

acknowledgement, attestation, or 

certification by a notary public alone is 

insufficient. 

(3) Availability of claim forms. The 

claim need not be made in any 

particular form. However, the Postal 

Inspection Service will make claim 

forms generally available on request. 

Such forms shall be written in easily 

understandable language. A request for 

a claim form does not extend the 

deadline for filing a claim. Any person 

may obtain a claim form by requesting 

one in writing from the appropriate 

official. 

(4) Cost bond not required. Any 

person may file a claim under paragraph 

233.7(k)(1) without posting bond, except 

in forfeitures under statutes listed in 18 

U.S.C. 983(i). 

(5) Referral of claim. Upon receipt of 

a claim that meets the requirements of 

paragraphs (1) and (2), the Postal 

Inspection Service shall return the 

property or suspend the administrative 

forfeiture proceeding and promptly 

transmit the claim, together with a 

description of the property and a 

complete statement of the facts and 

circumstances surrounding the seizure, 

to the appropriate U.S. Attorney for 

commencement of judicial forfeiture 

proceedings. Upon making the 

determination that the seized property 

will be released, the Postal Inspection 

Service shall promptly notify the person 

with a right to immediate possession of 

the property, informing that person to 

contact the property custodian within a 

specified period for release of the 

property, and further informing that 

person that failure to contact the 

property custodian within the specified 

period for release of the property will 

result in abandonment of the property 

pursuant to applicable regulations. The 

Postal Inspection Service shall notify 

the property custodian of the identity of 

the person to whom the property should 

be released. The property custodian 

shall have the right to require 

presentation of proper identification 

and/or to take other steps to verify the 

identity of the person who seeks the 

release of property, or both. 

(6) Premature filing. If a claim is filed 

with the appropriate official after the 

seizure of the property, but before the 

commencement of the administrative 

forfeiture proceeding as defined in 

paragraph 233.7(i), the claim shall be 

deemed filed on the 30th day after the 

commencement of the administrative 

forfeiture proceeding. If such claim 

meets the requirements of paragraph 

(k)(2), the Postal Inspection Service 

shall suspend the administrative 

forfeiture proceedings and promptly 

transmit the claim, together with a 

description of the property and a 

complete statement of the facts and 

circumstances surrounding the seizure 

to the appropriate U.S. Attorney for 

commencement of judicial forfeiture 

proceedings. 

(7) Defective claims. If the Postal 

Inspection Service determines that an 

otherwise timely claim does not meet 

the requirements of paragraph (k)(2), the 

Postal Inspection Service may notify the 

claimant of this determination and 

allow the claimant a reasonable time to 

cure the defect(s) in the claim. If, within 

the time allowed by the Postal 

Inspection Service, the requirements of 

paragraph (k)(2) are not met, the claim 

shall be void and the forfeiture 

proceedings shall proceed as if no claim 

had been submitted. If the claimant 

timely cures the deficiency, then the 

claim shall be deemed filed on the date 

when the appropriate official receives 

the cured claim. 

(l) Interplay of administrative and 

criminal judicial forfeiture proceedings. 

An administrative forfeiture proceeding 

pending against seized or restrained 

property does not bar the Government 

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from alleging that the same property is 

forfeitable in a criminal case. 

Notwithstanding the fact that an 

allegation of forfeiture has been 

included in a criminal indictment or 

information, the property may be 

administratively forfeited in a parallel 

proceeding. 

(m) Requests for hardship release of 

seized property. 

(1) Under certain circumstances, a 

claimant may be entitled to immediate 

release of seized property on the basis 

of hardship. 

(2) Any person filing a request for 

hardship release must also file a claim 

to the seized property pursuant to 

paragraph 233.7(k) and as defined in 18 

U.S.C. 983(a). 

(3) The timely filing of a valid claim 

pursuant to paragraph 233.7(k) does not 

entitle the claimant to possession of the 

seized property, but a claimant may 

request immediate release of the 

property while forfeiture is pending, 

based on hardship. 

(4) A claimant seeking release of 

property under 18 U.S.C. 983(f) and 

these regulations must file a written 

request with the appropriate official. 

The request must establish that: 

(i) The claimant has a possessory 

interest in the property; 

(ii) The claimant has sufficient ties to 

the community to provide assurance 

that the property will be available at the 

time of trial; 

(iii) The continued possession by the 

Government pending the final 

disposition of forfeiture proceedings 

will cause substantial hardship to the 

claimant, such as preventing the 

functioning of a business, preventing an 

individual from working, or leaving an 

individual homeless; 

(iv) The claimant’s likely hardship 

from the continued possession by the 

Government of the seized property 

outweighs the risk that the property will 

be destroyed, damaged, lost, concealed, 

or transferred if it is returned to the 

claimant during the pendency of the 

proceeding; and 

(v) The property is not: 

(A) Contraband, any property, the 

possession of which by the claimant, 

petitioner, or person from whom it was 

seized is prohibited by state or Federal 

law, currency, or other monetary 

instrument, or electronic funds unless 

such currency or other monetary 

instrument or electronic funds 

constitutes the assets of a legitimate 

business which has been seized; 

(B) Intended to be used as evidence of 

a violation of law; 

(C) By reason of design or other 

characteristic, particularly suited for use 

in illegal activities; or 

(D) Likely to be used to commit 

additional criminal acts if returned to 

the claimant. 

(5) A hardship release request 

pursuant to this paragraph shall be 

deemed to have been made on the date 

when it is received by the appropriate 

official as defined in paragraph 

233.7(c)(3), or the date the claim was 

deemed filed under paragraph 233.7(k). 

If the request is ruled on and denied by 

the appropriate official or the property 

has not been released within the 15-day 

time limit period, the claimant may file 

a petition in Federal district court 

pursuant to 18 U.S.C. 983(f)(3). If a 

petition is filed in Federal district court, 

the claimant must send a copy of the 

petition to the appropriate official to 

whom the hardship petition was 

originally submitted and to the U.S. 

Attorney in the judicial district where 

the judicial petition was filed. 

(6) If a civil forfeiture complaint is 

filed on property and the claimant files 

a claim with the court pursuant to 18 

U.S.C. 983(a)(4)(A) and Rule G(5) of the 

Supplemental Rules for Certain 

Admiralty and Maritime Claims, a 

hardship petition may be submitted to 

the individual identified in the public 

or personal notice of the civil forfeiture 

action. 

(n) Disposition of property before 

forfeiture. 

(1) Whenever it appears to the Postal 

Inspection Service that any seized 

property is liable to perish or to waste, 

or to be greatly reduced in value during 

its detention for forfeiture, or that the 

expense of keeping the property is or 

will be disproportionate to its value, the 

Chief Counsel for the Postal Inspection 

Service may order destruction, sale, or 

other disposition of such property prior 

to forfeiture. In addition, the owner may 

obtain release of the property by posting 

a substitute monetary amount with the 

Postal Inspection Service to be held 

subject to forfeiture proceedings in 

place of the seized property to be 

released. Upon approval by the Chief 

Counsel for the Postal Inspection 

Service, the property will be released to 

the owner upon the payment of an 

amount equal to the Government 

appraised value of the property if the 

property is not evidence of a violation 

of law, is not contraband, and has no 

design or other characteristics that 

particularly suit it for use in illegal 

activities. This payment must be in the 

form of a money order, an official bank 

check, or a cashier’s check made 

payable to the Postal Inspection Service. 

A bond in the form of a cashier’s check 

or official bank check will be considered 

as paid once the check has been 

accepted for payment by the financial 

institution that issued the check. If a 

substitute amount is posted and the 

property is administratively forfeited, 

the Postal Inspection Service will forfeit 

the substitute amount in lieu of the 

property. The pre-forfeiture destruction, 

sale, or other disposition of seized 

property pursuant to this subsection 

shall not extinguish any person’s rights 

to the value of the property under 

applicable law. The authority vested in 

the Chief Counsel for the Postal 

Inspection Service under this subsection 

may not be delegated. 

(2) The Postal Inspection Service shall 

commence forfeiture proceedings, 

regardless of the disposition of the 

property under this paragraph. A person 

with an interest in the property that was 

destroyed or otherwise disposed of 

under this paragraph may file a claim to 

contest the forfeiture of the property or 

a petition for remission or mitigation of 

the forfeiture. No employee of the Postal 

Inspection Service shall be liable for the 

destruction or other disposition of 

property made pursuant to this 

paragraph. The destruction or other 

disposition of the property does not 

impair in rem jurisdiction. 

(o) Declaration of administrative 

forfeiture. If the Postal Inspection 

Service commences a timely proceeding 

against property subject to 

administrative forfeiture, and no valid 

and timely claim is filed, the 

appropriate official shall declare the 

property forfeited. The declaration of 

forfeiture shall have the same force and 

effect as a final decree and order of 

forfeiture in a Federal judicial forfeiture 

proceeding. 

(p) Return of property. 

(1) If, under 18 U.S.C. 983(a)(3), the 

Postal Inspection Service is notified by 

the U.S. Attorney in charge of the matter 

that the 90-day deadline was not met, 

the Postal Inspection Service is required 

to release the seized property. Under 

this subsection, the Postal Inspection 

Service is not required to return 

property for which it has an 

independent basis for continued 

custody including, but not limited to, 

contraband or evidence of a violation of 

law. 

(2) Upon becoming aware that the 

seized property must be released, the 

Postal Inspection Service shall promptly 

notify the person with a right to 

immediate possession of the property, 

informing that person to contact the 

property custodian within a specified 

period for release of the property, and 

further informing that person that 

failure to contact the property custodian 

within the specified period for release of 

the property may result in the initiation 

of abandonment proceedings against the 

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property pursuant to 39 CFR 946, et seq. 

The property custodian will be notified 

of the identity of the person to whom 

the property should be released. 

(3) The property custodian shall have 

the right to require presentation of 

proper identification or to verify the 

identity of the person who seeks the 

release of property. 

(q) Disposition of forfeited property. 

(1) Whenever property is forfeited 

administratively, the Postal Inspection 

Service may: 

(i) Retain the property for official use; 

(ii) Transfer ownership of the 

property to any Federal, state or local 

law enforcement agency that 

participated in the investigation leading 

to the forfeiture; 

(iii) Sell any property that is not 

required to be destroyed by law and that 

is not harmful to the public; 

(iv) Destroy the property; or 

(v) Dispose of the property as 

otherwise permitted by law. 

(2) If the laws of a state in which an 

article of forfeited property is located 

prohibit the sale or possession of such 

property, or if the Postal Service and the 

Marshals Service are of the opinion that 

it would be more advantageous to sell 

the forfeited property in another district, 

the property may be moved to and sold 

in such other district. 

(r) Attorney fees and costs. The Postal 

Inspection Service is not liable for 

attorney fees or costs in any 

administrative forfeiture proceeding, 

including such proceedings in which a 

claim is filed, the matter is referred to 

the U.S. Attorney, and the U.S. Attorney 

declines to commence judicial forfeiture 

proceedings. 

3. Section 233.8 is revised to read as 

follows: 

§ 233.8 Expedited Forfeiture Proceedings 

for Property Seizures Based on Violations 

Involving the Possession of Personal Use 

Quantities of a Controlled Substance. 

(a) Purpose and scope. 

(1) The following definitions, 

regulations, and criteria are designed to 

establish and implement procedures 

required by section 6079 of the AntiDrug Abuse Act of 1988, Public Law 

100–690, 102 Stat. 4181. They are 

intended to supplement existing law 

and procedures relative to the forfeiture 

of property under the identified 

statutory authority. These regulations do 

not affect the existing legal and 

equitable rights and remedies of those 

with an interest in property seized for 

forfeiture, nor do these provisions 

relieve interested parties from their 

existing obligations and responsibilities 

in pursuing their interests through such 

courses of action. These regulations are 

intended to reflect the intent of 

Congress to minimize the adverse 

impact on those entitled to legal or 

equitable relief occasioned by the 

prolonged detention of property subject 

to forfeiture due to violations of law 

involving personal use quantities of 

controlled substances. The definition of 

personal use quantities of a controlled 

substance as contained herein is 

intended to distinguish between those 

small quantities, which are generally 

considered to be possessed for personal 

consumption and not for further 

distribution, and those larger quantities 

generally considered to be subject to 

further distribution. 

(2) In this regard, for violations 

involving the possession of personal use 

quantities of a controlled substance, 

section 6079(b)(2) requires either that 

administrative forfeiture be completed 

within 21 days of the seizure of the 

property, or alternatively, that 

procedures are established that provide 

a means by which an individual entitled 

to relief may initiate an expedited 

administrative review of the legal and 

factual basis of the seizure for forfeiture. 

Should an individual request relief 

pursuant to these regulations and be 

entitled to the return of the seized 

property, such property shall be 

returned immediately following that 

determination, but not later than 20 

days after filing of a petition for 

expedited release by an owner, and the 

administrative forfeiture process shall 

cease. Should the individual not be 

entitled to the return of the seized 

property, however, the administrative 

forfeiture of that property shall proceed. 

The owner may, in any event, obtain 

release of property pending the 

administrative forfeiture by submitting 

to the agency making the determination 

property sufficient to preserve the 

Government’s vested interest for 

purposes of the administrative 

forfeiture. 

(b) Definitions. As used in this 

section, the following terms shall have 

the meanings specified: 

(1) Commercial fishing industry vessel 

means a vessel that: 

(i) Commercially engages in the 

catching, taking, or harvesting of fish or 

an activity that can reasonably be 

expected to result in the catching, 

taking, or harvesting of fish; 

(ii) Commercially prepares fish or fish 

products other than by gutting, 

decapitating, gilling, skinning, 

shucking, icing, freezing, or brine 

chilling; or 

(iii) Commercially supplies, stores, 

refrigerates, or transports fish, fish 

products, or materials directly related to 

fishing or the preparation of fish to or 

from a fishing, fish processing, or fish 

tender vessel or fish processing facility. 

(2) Controlled substance has the 

meaning given in 21 U.S.C. 802(6). 

(3) Normal and customary manner 

means that inquiry suggested by 

particular facts and circumstances that 

would customarily be undertaken by a 

reasonably prudent individual in a like 

or similar situation. Actual knowledge 

of such facts and circumstances is 

unnecessary, and implied, imputed, or 

constructive knowledge is sufficient. An 

established norm, standard, or custom is 

persuasive but not conclusive or 

controlling in determining whether an 

owner acted in a normal and customary 

manner to ascertain how property 

would be used by another legally in 

possession of the property. The failure 

to act in a normal and customary 

manner as defined herein will result in 

the denial of a petition for expedited 

release of the property and is intended 

to have the desirable effect of inducing 

owners of the property to exercise 

greater care in transferring possession of 

their property. 

(4) Owner means one having a legal 

and possessory interest in the property 

seized for forfeiture. Even though one 

may hold primary and direct title to the 

property seized, such person may not 

have sufficient actual beneficial interest 

in the property to support a petition as 

owner if the facts indicate that another 

person had dominion and control over 

the property. 

(5) Personal use quantities means 

those amounts of controlled substances 

in possession in circumstances where 

there is no other evidence of an intent 

to distribute, or to facilitate the 

manufacturing, compounding, 

processing, delivering, importing, or 

exporting of any controlled substance. 

(i) Evidence that possession of 

quantities of a controlled substance is 

for other than personal use may include, 

for example: 

(A) Evidence, such as drug scales, 

drug distribution paraphernalia, drug 

records, drug packaging material, 

method of drug packaging, drug 

‘‘cutting’’ agents and other equipment, 

that indicates an intent to process, 

package, or distribute a controlled 

substance; 

(B) Information from reliable sources 

indicating possession of a controlled 

substance with intent to distribute; 

(C) The arrest or conviction record of 

the person or persons in actual or 

constructive possession of the 

controlled substance for offenses under 

Federal, state, or local law that indicates 

an intent to distribute a controlled 

substance; 

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(D) Circumstances or reliable 

information indicating that the 

controlled substance is related to large 

amounts of cash or any amount of 

prerecorded Government funds; 

(E) Circumstances or reliable 

information indicating that the 

controlled substance is a sample 

intended for distribution in anticipation 

of a transaction involving large 

quantities, or is part of a larger delivery; 

(F) Statements by the possessor, or 

otherwise attributable to the possessor, 

including statements of conspirators, 

that indicate possession with intent to 

distribute; or 

(G) The fact that the controlled 

substance was recovered from 

sweepings. 

(ii) Possession of a controlled 

substance shall be presumed to be for 

personal use when there are no indicia 

of illicit drug trafficking or 

distribution—such as, but not limited 

to, the factors listed above—and the 

amounts do not exceed the following 

quantities: 

(A) One gram of a mixture or 

substance containing a detectable 

amount of heroin; 

(B) One gram of a mixture or 

substance containing a detectable 

amount of the following: 

(1) Coca leaves, except coca leaves 

and extracts of coca leaves from which 

cocaine, ecgonine, and derivations of 

ecgonine or their salts have been 

removed; 

(2) Cocaine, its salts, optical and 

geometric isomers, and salts of isomers; 

(3) Ecgonine, its derivatives, their 

salts, isomers, and salts of isomers; or 

(4) Any compound, mixture, or 

preparation that contains any quantity 

of any of the substances referred to in 

(ii)(B)(1) through (ii)(B)(3) of this 

definition; 

(C) One-tenth gram of a mixture or 

substance described in (ii)(B) of this 

definition that contains cocaine base; 

(D) One-tenth gram of a mixture or 

substance containing a detectable 

amount of phencyclidine (PCP); 

(E) Five hundred micrograms of 

lysergic acid diethylamide (LSD); 

(F) One ounce of a mixture or 

substance containing a detectable 

amount of marijuana; 

(G) One gram of methamphetamine, 

its salts, isomers, and salts of its 

isomers, or one gram of a mixture or 

substance containing a detectable 

amount of methamphetamine, its salts, 

isomers, or salts of its isomers. 

(iii) The possession of a narcotic, a 

depressant, a stimulant, a hallucinogen 

or a cannabis-controlled substance will 

be considered in excess of personal use 

quantities if the dosage unit amount 

possessed provides the same or greater 

equivalent efficacy as described in 

(ii)(B) of this definition. 

(6) Property means property subject to 

forfeiture under 21 U.S.C. 881(a)(4), (6), 

or (7); 19 U.S.C. 1595a; or 49 U.S.C. 

80303. 

(7) Seizing agency means the Federal 

agency that has seized the property or 

adopted the seizure of another agency 

and has the responsibility for 

administratively forfeiting the property; 

(8) Statutory rights or defenses to the 

forfeiture means all legal and equitable 

rights and remedies available to a 

claimant of property seized for 

forfeiture. 

(c) Petition for expedited release in an 

administrative forfeiture proceeding. 

(1) Where property is seized for 

administrative forfeiture involving 

controlled substances in personal use 

quantities, the owner may petition the 

Postal Inspection Service for expedited 

release of the property. 

(2) Where property described in 

paragraph (c)(1) of this section is a 

commercial fishing industry vessel 

proceeding to or from a fishing area or 

intermediate port of call or actually 

engaged in fishing operations, which 

would be subject to seizure for 

administrative forfeiture for a violation 

of law involving controlled substances 

in personal use quantities, a summons 

to appear shall be issued in lieu of a 

physical seizure. The vessel shall report 

to the port designated in the summons. 

The Postal Inspection Service shall be 

authorized to effect administrative 

forfeiture as if the vessel had been 

physically seized. Upon answering the 

summons to appear on or prior to the 

last reporting date specified in the 

summons, the owner of the vessel may 

file a petition for expedited release 

pursuant to paragraph (c)(1) of this 

section, and the provisions of paragraph 

(c)(1) and other provisions in this 

section pertaining to a petition for 

expedited release shall apply as if the 

vessel had been physically seized. 

(3) The owner filing the petition for 

expedited release shall establish the 

following: 

(i) The owner has a valid, good faith 

interest in the seized property as owner 

or otherwise; 

(ii) The owner reasonably attempted 

to ascertain the use of the property in a 

normal and customary manner; and 

(iii) The owner did not know of or 

consent to the illegal use of the 

property, or in the event that the owner 

knew or should have known of the 

illegal use, the owner did what 

reasonably could be expected to prevent 

the violation. 

(4) In addition to those factors listed 

in paragraph (c)(3), if an owner can 

demonstrate that the owner has other 

statutory rights or defenses that would 

cause the owner to prevail on the issue 

of forfeiture, such factors shall also be 

considered in ruling on the petition for 

expedited release. 

(5) A petition for expedited release 

must be received by the Postal 

Inspection Service within 20 days from 

the date of the first publication of the 

notice of seizure in order to be 

considered by the Postal Inspection 

Service. The petition must be executed 

and sworn to by the owner, and both the 

envelope and the request must be 

clearly marked ‘‘PETITION FOR 

EXPEDITED RELEASE.’’ Such petition 

shall be filed with the appropriate office 

or official identified in the personal 

written notice and the publication 

notice. 

(6) The petition shall include the 

following: 

(i) A complete description of the 

property, including identification 

numbers, if any, and the date and place 

of seizure; 

(ii) The petitioner’s interest in the 

property, which shall be supported by 

title documentation, bills of sale, 

contracts, mortgages, or other 

satisfactory documentary evidence; and 

(iii) A statement of the facts and 

circumstances, to be established by 

satisfactory proof, relied upon by the 

petitioner to justify expedited release of 

the seized property. 

(d) Ruling on petition for expedited 

release in an administrative forfeiture 

proceeding. 

(1) If a final administrative 

determination of the case, without 

regard to the provisions of this section, 

is made within 21 days of the seizure, 

the Postal Inspection Service need take 

no further action under this section on 

a petition for expedited release received 

pursuant to paragraph (c) of this section. 

(2) If no such final administrative 

determination is made within 21 days of 

the seizure, the following procedure 

shall apply. The Postal Inspection 

Service shall, within 20 days after the 

receipt of the petition for expedited 

release, determine whether the petition 

filed by the owner has established the 

factors listed in paragraph (c)(3) of this 

section and: 

(i) If the Postal Inspection Service 

determines that those factors have been 

established, it shall terminate the 

administrative proceedings and return 

the property to the owner (or in the case 

of a commercial fishing industry vessel 

for which a summons has been issued 

shall dismiss the summons), except 

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where it is evidence of a violation of 

law; or 

(ii) If the Postal Inspection Service 

determines that those factors have not 

been established, the agency shall 

proceed with the administrative 

forfeiture. 

(e) Posting of substitute monetary 

amount in an administrative forfeiture 

proceeding. 

(1) Where property is seized for 

administrative forfeiture involving 

controlled substances in personal use 

quantities, the owner may obtain release 

of the property by posting a substitute 

monetary amount with the Postal 

Inspection Service to be held subject to 

forfeiture proceedings in place of the 

seized property to be released. The 

property will be released to the owner 

upon the payment of an amount equal 

to the Government-appraised value of 

the property if the property is not 

evidence of a violation of law and has 

no design or other characteristics that 

particularly suit it for use in illegal 

activities. This payment must be in the 

form of a traveler’s check, a money 

order, a cashier’s check, or an 

irrevocable letter of credit made payable 

to the Postal Inspection Service. A bond 

in the form of a cashier’s check will be 

considered as paid once the check has 

been accepted for payment by the 

financial institution that issued the 

check. 

(2) If a substitute monetary amount is 

posted and the property is 

administratively forfeited, the Postal 

Inspection Service will forfeit the 

substitute amount in lieu of the 

property. 

(f) Notice provisions. At the time of 

seizure of property defined in paragraph 

(b)(6) of this section for violations 

involving the possession of personal use 

quantities of a controlled substance, the 

Postal Inspection Service must provide 

written notice to the possessor of the 

property specifying the procedures for 

filing of a petition for expedited release 

and for the posting of a substitute 

monetary bond as set forth in section 

6079 of the Anti-Drug Abuse Act of 

1988 and implementing regulations. 

4. Section 233.9 is revised to read as 

follows: 

§ 233.9 Regulations governing remission 

or mitigation of administrative, civil, and 

criminal forfeitures. 

(a) Purpose, authority, and scope—(1) 

Purpose. This section sets forth the 

procedures for Postal Inspection Service 

officials to follow when considering 

remission or mitigation of 

administrative forfeitures under the 

jurisdiction of the Postal Inspection 

Service. The purpose of these 

regulations is to provide a basis for the 

partial or total remission of forfeiture for 

individuals who have an interest in the 

forfeited property but who did not 

participate in, or have knowledge of, the 

conduct that resulted in the property 

being subject to forfeiture and, where 

required, took all reasonable steps under 

the circumstances to ensure that such 

property would not be used, acquired, 

or disposed of contrary to law. 

Additionally, the regulations provide for 

partial or total mitigation of the 

forfeiture and imposition of alternative 

conditions in appropriate 

circumstances. 

(2) Authority to grant remission and 

mitigation. 

(i) Remission and mitigation functions 

in administrative forfeitures under the 

jurisdiction of the Postal Inspection 

Service are performed by the Chief 

Counsel. 

(ii) Remission and mitigation 

functions in judicial cases are 

performed by the Criminal Division of 

the Department of Justice. Within the 

Criminal Division, authority to grant 

remission and mitigation is delegated to 

the Chief, Asset Forfeiture and Money 

Laundering Section. 

(iii) The powers and responsibilities 

delegated by the regulations in this 

section may be re-delegated to attorneys 

or managers working under the 

supervision of the Chief Counsel. 

(3) Scope. This section governs any 

petition for remission filed with the 

Postal Inspection Service and 

supersedes any Postal Service regulation 

governing petitions for remission, to the 

extent such regulation is inconsistent 

with this section. 

(4) Applicability. The time periods 

and internal requirements established in 

this section are designed to guide the 

orderly administration of the remission 

and mitigation process and are not 

intended to create rights or entitlements 

in favor of individuals seeking 

remission or mitigation. The regulations 

will apply to all forfeiture actions 

commenced on or after February 27, 

2012. 

(b) Definitions. As used in this 

section: 

(1) Administrative forfeiture means 

the process by which property may be 

forfeited by the Postal Inspection 

Service rather than through judicial 

proceedings. Administrative forfeiture 

has the same meaning as ‘‘nonjudicial 

forfeiture’’, as that term is used in 18 

U.S.C. 983. 

(2) Appraised value means the 

estimated market value of an asset at the 

time and place of seizure if such or 

similar property was freely offered for 

sale between a willing seller and a 

willing buyer. 

(3) Assets Forfeiture Fund means the 

Department of Justice Assets Forfeiture 

Fund, Department of the Treasury 

Assets Forfeiture Fund, or the Postal 

Service’s Assets Forfeiture Fund, 

depending upon the identity of the 

seizing agency. 

(4) Attorney General means the 

Attorney General of the United States or 

that official’s designee. 

(5) Beneficial owner means a person 

with actual use of, as well as an interest 

in, the property subject to forfeiture. 

(6) Chief, Asset Forfeiture and Money 

Laundering Section, and Chief, refer to 

the Chief of the Asset Forfeiture and 

Money Laundering Section, Criminal 

Division, United States Department of 

Justice. 

(7) General creditor means one whose 

claim or debt is not secured by a 

specific right to obtain satisfaction 

against the particular property subject to 

forfeiture. 

(8) Judgment creditor means one who 

has obtained a judgment against the 

debtor but has not yet received full 

satisfaction of the judgment. 

(9) Judicial forfeiture means either a 

civil or a criminal proceeding in a 

United States District Court that may 

result in a final judgment and order of 

forfeiture. 

(10) Lienholder means a creditor 

whose claim or debt is secured by a 

specific right to obtain satisfaction 

against the particular property subject to 

forfeiture. A lien creditor qualifies as a 

lienholder if the lien: 

(i) Was established by operation of 

law or contract; 

(ii) Was created as a result of an 

exchange of money, goods, or services; 

and 

(iii) Is perfected against the specific 

property forfeited for which remission 

or mitigation is sought (e.g., a real estate 

mortgage; a mechanic’s lien). 

(11) Net equity means the amount of 

a lienholder’s monetary interest in the 

property subject to forfeiture. Net equity 

shall be computed by determining the 

amount of unpaid principal and unpaid 

interest at the time of seizure, and by 

adding to that sum unpaid interest 

calculated from the date of seizure 

through the last full month prior to the 

date of the decision on the petition. 

Where a rate of interest is set forth in 

a security agreement, the rate of interest 

to be used in this computation will be 

the annual percentage rate so specified 

in the security agreement that is the 

basis of the lienholder’s interest. In this 

computation, however, there shall be no 

allowances for attorneys’ fees, 

accelerated or enhanced interest 

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charges, amounts set by contract as 

damages, unearned extended warranty 

fees, insurance, service contract charges 

incurred after the date of seizure, 

allowances for dealer’s reserve, or any 

other similar charges. 

(12) Nonjudicial forfeiture has the 

same meaning as administrative 

forfeiture as defined in this section. 

(13) Owner means the person in who 

primary title is vested or whose interest 

is manifested by the actual and 

beneficial use of the property, even 

though the title is vested in another. A 

victim of an offense, as defined in 

paragraph (b)(22) of this section, may 

also be an owner if that person has a 

present legally cognizable ownership 

interest in the property forfeited. A 

nominal owner of property will not be 

treated as its true owner if that person 

is not its beneficial owner. 

(14) Person means an individual, 

partnership, corporation, joint business 

enterprise, estate, or other legal entity 

capable of owning property. 

(15) Petition means a petition for 

remission or mitigation of forfeiture 

under the regulations in this part. This 

definition includes a petition for 

restoration of the proceeds of sale of 

forfeited property and a petition for the 

value of the forfeited property placed 

into official use. 

(16) Petitioner means the person 

applying for remission, mitigation, 

restoration of the proceeds of sale, or for 

the appraised value of forfeited 

property, under this part. A petitioner 

may be an owner as defined in 

paragraph (b)(13), a lienholder as 

defined in paragraph (b)(10), or a victim 

as defined in paragraph (b)(22), subject 

to the limitations of paragraph (h). 

(17) Property means real or personal 

property of any kind capable of being 

owned or possessed. 

(18) Record means a series of arrests 

for related crimes, unless the arrestee 

was acquitted or the charges were 

dismissed for lack of evidence, a 

conviction for a related crime or 

completion of sentence within 10 years 

of the acquisition of the property subject 

to forfeiture, or two convictions for a 

related crime at any time in the past. 

(19) Related crime as used in 

paragraphs (b)(18) and (f) means any 

crime similar in nature to that which 

gives rise to the seizure of property for 

forfeiture. For example, where property 

is seized for a violation of the Federal 

laws relating to drugs, a related crime 

would be any offense involving a 

violation of the Federal laws relating to 

drugs, or the laws of any state or 

political subdivision thereof relating to 

drugs. 

(20) Related offense as used in 

paragraph (h) means: 

(i) Any predicate offense charged in a 

Federal Racketeer Influenced and 

Corrupt Organizations Act (RICO) count 

for which forfeiture was ordered; or 

(ii) An offense committed as part of 

the same scheme or design, or pursuant 

to the same conspiracy, as was involved 

in the offense for which forfeiture was 

ordered. 

(21) Ruling Official means any official 

to whom decision making authority has 

been delegated pursuant to paragraph 

(a)(2). 

(22) Seizing agency means any 

Federal agency that seized the property 

or adopted the seizure of another agency 

for Federal forfeiture. 

(23) Victim means a person who has 

incurred a pecuniary loss as a direct 

result of the commission of the offense 

underlying a forfeiture. A drug user is 

not considered a victim of a drug 

trafficking offense under this definition. 

A victim does not include one who 

acquires a right to sue the perpetrator of 

the criminal offense for any loss by 

assignment, subrogation, inheritance, or 

otherwise from the actual victim, unless 

that person has acquired an actual 

ownership interest in the forfeited 

property; provided however, that if a 

victim has received compensation from 

insurance or any other source with 

respect to a pecuniary loss, remission 

may be granted to the third party who 

provided compensation, up to the 

amount of the victim’s pecuniary loss as 

defined in paragraph (h)(3). 

(24) Violator means the person whose 

use or acquisition of the property in 

violation of the law subjected such 

property to seizure for forfeiture. 

(c) Petitions in administrative 

forfeiture cases—(1) Notice of seizure. 

The notice of seizure and intent to 

forfeit the property shall advise any 

persons who may have a present 

ownership interest in the property to 

submit their petitions for remission or 

mitigation within 30 days of the date 

they receive the notice in order to 

facilitate processing. Petitions shall be 

considered any time after notice until 

the property has been forfeited, except 

in cases involving petitions to restore 

the proceeds from the sale of forfeited 

property. A notice of seizure shall 

include the Ruling Official, the mailing 

and street address of the official to 

whom petitions should be sent, and an 

asset identifier number. 

(2) Persons who may file. 

(i) A petition for remission or 

mitigation must be filed by a petitioner 

as defined in paragraph (b)(16), or as 

prescribed in paragraph (i)(7) and (8). A 

person or person acting on their behalf 

may not file a petition if, after notice or 

knowledge of the fact that a warrant or 

process has been issued for his 

apprehension, in order to avoid criminal 

prosecution the person: 

(A) Purposely leaves the jurisdiction 

of the United States; 

(B) Declines to enter or reenter the 

United States to submit to its 

jurisdiction; or 

(C) Otherwise evades the jurisdiction 

of the court in which a criminal matter 

is pending against the person. 

(ii) Paragraph (c)(2)(A) applies to a 

petition filed by a corporation if any 

majority shareholder, or individual 

filing the claim on behalf of the 

corporation: 

(A) Purposely leaves the jurisdiction 

of the United States; 

(B) Declines to enter or reenter the 

United States to submit to its 

jurisdiction; or 

(C) Otherwise evades the jurisdiction 

of the court in which a criminal case is 

pending against the person. 

(3) Contents of petition. 

(i) All petitions must include the 

following information in clear and 

concise terms: 

(A) The name, address, and social 

security or other taxpayer identification 

number of the person claiming an 

interest in the seized property who is 

seeking remission or mitigation; 

(B) The name of the seizing agency, 

the asset identifier number, and the date 

and place of seizure; 

(C) A complete description of the 

property, including make, model, and 

serial numbers, if any; and 

(D) A description of the petitioner’s 

interest in the property as owner, 

lienholder, or otherwise, supported by 

original or certified bills of sale, 

contracts, deeds, mortgages, or other 

documentary evidence. Such 

documentation includes evidence 

establishing the source of funds for 

seized currency or the source of funds 

used to purchase the seized asset. 

(ii) Any factual recitation or 

documentation of any type in a petition 

must be supported by a declaration 

under penalty of perjury that meets the 

requirements of 28 U.S.C. 1746. 

(4) Releases. In addition to the 

contents of the petition for remission or 

mitigation set forth in paragraph (c)(3) 

of this section, upon request, the 

petitioner shall also furnish the agency 

with an instrument executed by the 

titled or registered owner and any other 

known claimant of an interest in the 

property releasing interest in such 

property. 

(5) Filing a petition. 

(i) A petition for remission or 

mitigation subject to administrative 

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11448 Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Proposed Rules 

forfeiture is to be sent to the official 

address provided in the notice of 

seizure and shall be sworn to by the 

petitioner or by the petitioner’s attorney 

upon information and belief, supported 

by the client’s sworn notice of 

representation pursuant to 28 U.S.C. 

1746, as set out in paragraph (i)(7). 

(ii) If the notice of seizure does not 

provide an official address, the petition 

shall be addressed to the Asset 

Forfeiture Unit at the following address: 

Asset Forfeiture Unit, Criminal 

Investigations, U.S. Postal Inspection 

Service, P.O. Box 44373, Washington, 

DC 20026–4373. 

(iii) Submission by facsimile or other 

electronic means will not be accepted. 

(6) Agency investigation. Upon receipt 

of a petition, the Postal Inspection 

Service shall investigate the merits of 

the petition and prepare a written report 

containing the results of that 

investigation. This report shall be 

submitted to the Ruling Official for 

review and consideration. 

(7) Ruling. Upon receipt of the 

petition and the agency report, the 

Ruling Official for the Postal Inspection 

Service shall review the petition and the 

report, if any, and shall rule on the 

merits of the petition. No hearing shall 

be held. 

(8) Petitions granted. If the Ruling 

Official grants a remission or mitigation 

of the forfeiture, a copy of the decision 

shall be mailed to the petitioner or, if 

represented by an attorney, to the 

petitioner’s attorney. A copy shall also 

be sent to the U.S. Marshals Service, or 

other property custodian. The written 

decision shall include the terms and 

conditions, if any, upon which the 

remission or mitigation is granted, and 

the procedures the petitioner must 

follow to obtain release of the property 

or the monetary interest therein. 

(9) Petitions denied. If the Ruling 

Official denies a petition, a copy of the 

decision shall be mailed to the 

petitioner or, if represented by an 

attorney, to the petitioner’s attorney of 

record. A copy of the decision shall also 

be sent to the U.S. Marshals Service, or 

other property custodian. The decision 

shall specify the reason that the petition 

was denied. The decision shall advise 

the petitioner that a request for 

reconsideration of the denial of the 

petition may be submitted to the Ruling 

Official in accordance with paragraph 

(c)(10). 

(10) Request for reconsideration. 

(i) A request for reconsideration of the 

denial of the petition shall be 

considered if: 

(A) It is postmarked or received by the 

office of the Ruling Official within 10 

days from the receipt of the notice of 

denial of the petition by the petitioner; 

and 

(B) The request is based on 

information or evidence not previously 

considered that is material to the basis 

for the denial or presents a basis clearly 

demonstrating that the denial was 

erroneous. 

(ii) In no event shall a request for 

reconsideration be decided by the same 

Ruling Official who ruled on the 

original petition. 

(iii) Only one request for 

reconsideration of a denial of a petition 

shall be considered. 

(11) Restoration of proceeds from sale. 

(i) A petition for restoration of the 

proceeds from the sale of forfeited 

property, or for the appraised value of 

forfeited property when the forfeited 

property has been retained by or 

delivered to a Government agency for 

official use, may be submitted by an 

owner or lienholder in cases in which 

the petitioner: 

(A) Did not know of the seizure prior 

to the entry of a declaration of forfeiture; 

and 

(B) Could not reasonably have known 

of the seizure prior to the entry of a 

declaration of forfeiture. 

(ii) Such a petition shall be submitted 

pursuant to paragraphs (c)(2) through 

(c)(5) of this section within 90 days of 

the date the property is sold or 

otherwise disposed of. 

(d) Petitions in judicial forfeiture 

cases—(1) Notice of seizure. The notice 

of seizure and intent to forfeit the 

property shall advise any persons who 

may have a present ownership interest 

in the property to submit their petitions 

for remission or mitigation within 30 

days of the date they receive the notice 

in order to facilitate processing. 

Petitions shall be considered any time 

after notice until such time as the 

forfeited property is placed in official 

use, sold, or otherwise disposed of 

according to law, except in cases 

involving petitions to restore property. 

A notice of seizure shall include the 

title of the Ruling Official and the 

mailing and street address of the official 

to whom petitions should be sent, the 

name of the agency seizing the property, 

an asset identifier number, and the 

district court docket number. 

(2) Persons who may file. A petition 

for remission or mitigation must be filed 

by a petitioner as defined in paragraph 

(b)(16), or as prescribed in paragraph 

(i)(7) and (8). 

(3) Contents of petition. 

(i) All petitions must include the 

following information in clear and 

concise terms: 

(A) The name, address, and Social 

Security or other taxpayer identification 

number of the person claiming an 

interest in the seized property who is 

seeking remission or mitigation; 

(B) The name of the seizing agency, 

the asset identifier number, and the date 

and place of seizure; 

(C) The district court docket number; 

(D) A complete description of the 

property, including the address or legal 

description of real property, and make, 

model, and serial numbers of personal 

property, if any; and 

(E) A description of the petitioner’s 

interest in the property as owner, 

lienholder, or otherwise, supported by 

original or certified bills of sale, 

contracts, mortgages, deeds, or other 

documentary evidence. 

(ii) Any factual recitation or 

documentation of any type in a petition 

must be supported by a declaration 

under penalty of perjury that meets the 

requirements of 28 U.S.C. 1746. 

(4) Releases. In addition to the content 

of the petition for remission or 

mitigation set forth in paragraph (d)(3) 

of this section, the petitioner, upon 

request, also shall furnish the agency 

with an instrument executed by the 

titled or registered owner and any other 

known claimant of an interest in the 

property releasing the interest in such 

property. 

(5) Filing petition with Department of 

Justice. A petition for remission or 

mitigation of a judicial forfeiture shall 

be addressed to the Attorney General; 

shall be sworn to by the petitioner or by 

the petitioner’s attorney upon 

information and belief, supported by the 

client’s sworn notice of representation 

pursuant to 28 U.S.C. 1746, as set forth 

in paragraph (i)(7) of this section; and 

shall be submitted to the U.S. Attorney 

for the district in which the judicial 

forfeiture proceedings are brought. 

(6) Agency investigation and 

recommendation; U.S. Attorney’s 

recommendation. Upon receipt of a 

petition, the U.S. Attorney shall direct 

the seizing agency to investigate the 

merits of the petition based on the 

information provided by the petitioner 

and the totality of the agency’s 

investigation of the underlying basis for 

forfeiture. The agency shall submit to 

the U.S. Attorney a report of its 

investigation and its recommendation 

on whether the petition should be 

granted or denied. Upon receipt of the 

agency’s report and recommendation, 

the U.S. Attorney shall forward to the 

Chief, Asset Forfeiture and Money 

Laundering Section, the petition, the 

seizing agency’s report and 

recommendation, and the U.S. 

Attorney’s recommendation on whether 

the petition should be granted or 

denied. 

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(7) Ruling. The Chief shall rule on the 

petition. No hearing shall be held. The 

Chief shall not rule on any petition for 

remission if such remission was 

previously denied by the administrative 

agency pursuant to paragraph (c) of this 

section. 

(8) Petitions granted. If the Chief 

grants a remission or mitigates the 

forfeiture, the Chief shall mail a copy of 

the decision to the petitioner (or, if 

represented by an attorney, to the 

petitioner‘s attorney), and shall mail or 

transmit electronically a copy of the 

decision to the appropriate U.S. 

Attorney, the U.S. Marshals Service or 

other property custodian, and the 

seizing agency. The written decision 

shall include the terms and conditions, 

if any, upon which the remission or 

mitigation is granted and the procedures 

the petitioner must follow to obtain 

release of the property or the monetary 

interest therein. The Chief shall advise 

the petitioner or the petitioner‘s 

attorney to consult with the U.S. 

Attorney as to such terms and 

conditions. The U.S. Attorney shall 

confer with the seizing agency regarding 

the release and shall coordinate 

disposition of the property with that 

office and the U.S. Marshals Service or 

other property custodian. 

(9) Petitions denied. If the Chief 

denies a petition, a copy of that decision 

shall be mailed to the petitioner (or, if 

represented by an attorney, to the 

petitioner‘s attorney of record), and 

mailed or transmitted electronically to 

the appropriate U.S. Attorney, the U.S. 

Marshals Service or other property 

custodian, and the seizing agency. The 

decision shall specify the reason that 

the petition was denied. The decision 

shall advise the petitioner that a request 

for reconsideration of the denial of the 

petition may be submitted to the Chief 

at the address provided in the decision, 

in accordance with paragraph (d)(10) of 

this section. 

(10) Request for reconsideration. 

(i) A request for reconsideration of the 

denial shall be considered if: 

(A) It is postmarked or received by the 

Asset Forfeiture and Money Laundering 

Section at the address contained in the 

decision denying the petition within 10 

days from the receipt of the notice of 

denial of the petition by the petitioner; 

(B) A copy of the request is also 

received by the appropriate U.S. 

Attorney within 10 days of the receipt 

of the denial by the petitioner; and 

(C) The request is based on 

information or evidence not previously 

considered that is material to the basis 

for the denial or presents a basis clearly 

demonstrating that the denial was 

erroneous. 

(ii) In no event shall a request for 

reconsideration be decided by the 

Ruling Official who ruled on the 

original petition. 

(iii) Only one request for 

reconsideration of a denial of a petition 

shall be considered. 

(iv) Upon receipt of the request for 

reconsideration of the denial of a 

petition, disposition of the property will 

be delayed pending notice of the 

decision at the request of the Chief. lf 

the request for reconsideration is not 

received within the prescribed period, 

the U.S. Marshals Service may dispose 

of the property. 

(11) Restoration of proceeds from sale. 

(i) A petition for restoration of the 

proceeds from the sale of forfeited 

property, or for the appraised value of 

forfeited property when the forfeited 

property has been retained by or 

delivered to a Government agency for 

official use, may be submitted by an 

owner or lienholder in cases in which 

the petitioner: 

(A) Did not know of the seizure prior 

to the entry of a final order of forfeiture; 

and 

(B) Could not reasonably have known 

of the seizure prior to the entry of a final 

order of forfeiture. 

(ii) Such a petition must be submitted 

pursuant to paragraphs (d)(2) through 

(d)(5) of this section within 90 days of 

the date the property was sold or 

otherwise disposed of. 

(e) Criteria governing administrative 

and judicial remission and mitigation. 

(1) Remission. 

(i) The Ruling Official shall not grant 

remission of a forfeiture unless the 

petitioner establishes that the petitioner 

has a valid, good faith, and legally 

cognizable interest in the seized 

property as owner or lienholder as 

defined in this part and is an innocent 

owner within the meaning of 18 U.S.C. 

983(d)(2)(A) or (d)(3)(A). 

(ii) For purposes of this paragraph, the 

knowledge and responsibilities of a 

petitioner’s representative, agent, or 

employee are imputed to the petitioner 

where the representative, agent, or 

employee was acting in the course of 

that person’s employment and in 

furtherance of the petitioner’s business. 

(iii) The petitioner has the burden of 

establishing the basis for granting a 

petition for remission or mitigation of 

forfeited property, a restoration of 

proceeds of sale or appraised value of 

forfeited property, or a reconsideration 

of a denial of such a petition. Failure to 

provide information or documents and 

to submit to interviews, as requested, 

may result in a denial of the petition. 

(iv) The Ruling Official shall presume 

a valid forfeiture and shall not consider 

whether the evidence is sufficient to 

support the forfeiture. 

(v) Willful, materially false statements 

or information made or furnished by the 

petitioner in support of a petition for 

remission or mitigation of forfeited 

property, the restoration of proceeds or 

appraised value of forfeited property, or 

the reconsideration of a denial of any 

such petition shall be grounds for denial 

of such petition and possible 

prosecution for the filing of false 

statements. 

(2) Mitigation. 

(i) The Ruling Official may grant 

mitigation to a party not involved in the 

commission of the offense underlying 

forfeiture: 

(A) Where the petitioner has not met 

the minimum conditions for remission, 

but the Ruling Official finds that some 

relief should be granted to avoid 

extreme hardship, and that return of the 

property combined with imposition of 

monetary or other conditions of 

mitigation in lieu of a complete 

forfeiture will promote the interest of 

justice and will not diminish the 

deterrent effect of the law. Extenuating 

circumstances justifying such a finding 

include those circumstances that reduce 

the responsibility of the petitioner for 

knowledge of the illegal activity, 

knowledge of the criminal record of a 

user of the property, or failure to take 

reasonable steps to prevent the illegal 

use or acquisition by another for some 

reason, such as a reasonable fear of 

reprisal; or 

(B) Where the minimum standards for 

remission have been satisfied but the 

overall circumstances are such that, in 

the opinion of the Ruling Official, 

complete relief is not warranted. 

(ii) The Ruling Official may as a 

matter of discretion grant mitigation to 

a party involved in the commission of 

the offense underlying the forfeiture 

where certain mitigating factors exist, 

including, but not limited to: The lack 

of a prior record or evidence of similar 

criminal conduct; if the violation does 

not include drug distribution, 

manufacturing, or importation, the fact 

that the violator has taken steps, such as 

drug treatment, to prevent further 

criminal conduct; the fact that the 

violation was minimal and was not part 

of a larger criminal scheme; the fact that 

the violator has cooperated with 

Federal, state, or local investigations 

relating to the criminal conduct 

underlying the forfeiture; or the fact that 

complete forfeiture of an asset is not 

necessary to achieve the legitimate 

purposes of forfeiture. 

(iii) Mitigation may take the form of 

a monetary condition or the imposition 

of other conditions relating to the 

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continued use of the property, and the 

return of the property, in addition to the 

imposition of any other costs that would 

be chargeable as a condition to 

remission. This monetary condition is 

considered as an item of cost payable by 

the petitioner, and shall be deposited 

into the Postal Inspection Service’s 

Fund as an amount realized from 

forfeiture in accordance with the 

applicable statute. If the petitioner fails 

to accept the Ruling Official’s mitigation 

decision or any of its conditions, or fails 

to pay the monetary amount within 20 

days of the receipt of the decision, the 

property shall be sold, and the monetary 

amount imposed and other costs 

chargeable as a condition to mitigation 

shall be subtracted from the proceeds of 

the sale before transmitting the 

remainder to the petitioner. 

(f) Special rules for specific 

petitioners—(1) General creditors. A 

general creditor may not be granted 

remission or mitigation of forfeiture 

unless that person otherwise qualifies as 

petitioner under this part. 

(2) Rival claimants. If the beneficial 

owner of the forfeited property and the 

owner of a security interest in the same 

property each files a petition, and if 

both petitions are found to be 

meritorious, the claims of the beneficial 

owner shall take precedence. 

(3) Voluntary bailments. A petitioner 

who allows another to use the 

petitioner’s property without cost, and 

who is not in the business of lending 

money secured by property or of leasing 

or renting property for profit, shall be 

granted remission or mitigation of 

forfeiture in accordance with the 

provisions of paragraph (e) of this 

section. 

(4) Lessors. A person engaged in the 

business of leasing or renting real or 

personal property on a long-term basis 

with the right to sublease shall not be 

entitled to remission or mitigation of a 

forfeiture of such property unless the 

lessor can demonstrate compliance with 

all the requirements of paragraph (e) of 

this section. 

(5) Straw owners. A petition by any 

person who has acquired a property 

interest recognizable under this part, 

and who knew or had reason to believe 

that the interest was conveyed by the 

previous owner for the purpose of 

circumventing seizure, forfeiture, or the 

regulations in this part, shall be denied. 

A petition by a person who purchases 

or owns property for another who has a 

record for related crimes as defined in 

paragraph (b)(19), or a petition by a 

lienholder who knows or has reason to 

believe that the purchaser or owner of 

record is not the real purchaser or 

owner, shall be denied unless both the 

purchaser of record and the real 

purchaser or owner meet the 

requirements of paragraph (e) of this 

section. 

(6) Judgment creditors. 

(i) A judgment creditor will be 

recognized as a lienholder if: 

(A) The judgment was duly recorded 

before the seizure of the property for 

forfeiture; 

(B) Under applicable state or other 

local law, the judgment constitutes a 

valid lien on the property that attached 

to it before the seizure of the property 

for forfeiture; and 

(C) The petitioner had no knowledge 

of the commission of any act or acts 

giving rise to the forfeiture at the time 

the judgment became a lien on the 

forfeited property. 

(ii) A judgment creditor will not be 

recognized as a lienholder if the 

property in question is not property of 

which the judgment debtor is entitled to 

claim ownership under applicable state 

or other local law (e.g., stolen property). 

A judgment creditor is entitled under 

this part to no more than the amount of 

the judgment, exclusive of any interest, 

costs, or other fees including attorney’s 

fees associated with the action that led 

to the judgment or its collection. 

(iii) A judgment creditor’s lien must 

be registered in the district where the 

property is located if the judgment was 

obtained outside the district. 

(g) Terms and conditions of remission 

and mitigation—(1) Owners. 

(i) An owner’s interest in property 

that has been forfeited is represented by 

the property itself or by a monetary 

interest equivalent to that interest at the 

time of seizure. Whether the property or 

a monetary equivalent will be remitted 

to an owner shall be determined at the 

discretion of the Ruling Official. 

(ii) If a civil judicial forfeiture action 

against the property is pending, release 

of the property must await an 

appropriate court order. 

(iii) Where the Government sells or 

disposes of the property prior to the 

grant of the remission, the owner shall 

receive the proceeds of that sale, less 

any costs incurred by the Government 

in the sale. The Ruling Official, as a 

matter of discretion, may waive the 

deduction of costs and expenses 

incident to the forfeiture. 

(iv) Where the owner does not comply 

with the conditions imposed upon 

release of the property by the Ruling 

Official, the property shall be sold. 

Following the sale, the proceeds shall be 

used to pay all costs of the forfeiture 

and disposition of the property, in 

addition to any monetary conditions 

imposed. The remaining balance shall 

be paid to the owner. 

(2) Lienholders. 

(i) When the forfeited property is to be 

retained for official use or transferred to 

a state or local law enforcement agency 

or foreign government pursuant to law, 

and remission or mitigation has been 

granted to a lienholder, the recipient of 

the property shall assure that: 

(A) In the case of remission, the lien 

is satisfied as determined through the 

petition process; or 

(B) In the case of mitigation, an 

amount equal to the net equity, less any 

monetary conditions imposed, is paid to 

the lienholder prior to the release of the 

property to the recipient agency of 

foreign government. 

(ii) When the forfeited property is not 

retained for official use or transferred to 

another agency or foreign government 

pursuant to law, the lienholder shall be 

notified by the Ruling Official of the 

right to select either of the following 

alternatives: 

(A) Return of property. The lienholder 

may obtain possession of the property 

after paying the United States, through 

the Ruling Official, the costs and 

expenses incident to the forfeiture, the 

amount, if any, by which the appraised 

value of the property exceeds the 

lienholder’s net equity in the property, 

and any amount specified in the Ruling 

Official’s decision as a condition to 

remit the property. The Ruling Official, 

as a matter of discretion, may waive 

costs and expenses incident to the 

forfeiture. The Ruling Official shall 

forward a copy of the decision, a 

memorandum of disposition, and the 

original releases to the division or field 

office responsible for the seizure and 

custody of the property or, if applicable, 

to the U.S. Marshals Service, who shall 

thereafter release the property to the 

lienholder; or 

(B) Sale of Property and Payment to 

Lienholder. Subject to the provisions of 

paragraph (i)(1), upon sale of the 

property, the lienholder may receive the 

payment of a monetary amount up to 

the sum of the lienholder’s net equity, 

less the expenses and costs incident to 

the forfeiture and sale of the property, 

and any other monetary conditions 

imposed. The Ruling Official, as a 

matter of discretion, may waive costs 

and expenses incident to the forfeiture. 

(iii) If the lienholder does not notify 

the Ruling Official of the selection of 

one of the two options set forth in 

paragraph (g)(2)(ii) of this section within 

20 days of the receipt of notification, the 

Ruling Official shall direct the division 

or field office responsible for the seizure 

or custody, or if applicable, the U.S. 

Marshals Service, to sell the property 

and pay the lienholder an amount up to 

the net equity, less the costs and 

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expenses incurred incident to the 

forfeiture and sale, and any monetary 

conditions imposed. In the event a 

lienholder subsequently receives a 

payment of any kind on the debt owed 

for which he or she received payment as 

a result of the granting of remission or 

mitigation, the lienholder shall 

reimburse the Postal Service Forfeiture 

Fund to the extent of the payment 

received. 

(iv) Where the lienholder does not 

comply with the conditions imposed 

upon the release of the property, the 

property shall be sold after forfeiture. 

From the proceeds of the sale, all costs 

incident to the forfeiture and sale shall 

first be deducted, and the balance up to 

the net equity, less any monetary 

conditions, shall be paid to the 

lienholder. 

(h) Remission procedures for victims. 

This section applies to victims of an 

offense underlying the forfeiture of 

property, or of a related offense, who do 

not have a present ownership interest in 

the forfeited property (or, in the case of 

multiple victims of an offense, who do 

not have a present ownership interest in 

the forfeited property that is clearly 

superior to that of other petitioner 

victims). This section applies only with 

respect to property forfeited pursuant to 

statutes that explicitly authorize 

restoration or remission of forfeited 

property to victims. A victim requesting 

remission under this section may 

concurrently request remission as an 

owner, pursuant to the regulations set 

forth in paragraphs (c), (d), and (g) of 

this section. The claims of victims 

granted remission as both an owner and 

victim shall, like other owners, have 

priority over the claims of any nonowner victims whose claims are 

recognized under this section. 

(1) Remission procedure for victims— 

(i) Where to file. Persons seeking 

remission as victims shall file petitions 

for remission with the appropriate 

deciding official as described in 

paragraph (c)(5) (administrative 

forfeiture) or (d)(5) (judicial forfeiture) 

of this section. 

(ii) Time of decision. The Ruling 

Official or that person’s designee as 

described in paragraph (a)(2) of this 

section may consider petitions filed by 

persons claiming eligibility for 

remission as victims at any time prior to 

the disposal of the forfeited property in 

accordance with law. 

(iii) Request for reconsideration. 

Persons denied remission under this 

section may request reconsideration of 

the denial, in accordance with 

paragraph (c)(10) (administrative 

forfeiture) or (d)(10) (judicial forfeiture) 

of this section. 

(2) Qualification to file. A victim, as 

defined in paragraph (b)(22) of this 

section, may be granted remission, if in 

addition to complying with the other 

applicable provisions of paragraph (h) of 

this section, the victim satisfactorily 

demonstrates that: 

(i) A pecuniary loss of a specific 

amount has been directly caused by the 

criminal offense, or related offense, that 

was the underlying basis for the 

forfeiture, and that the loss is supported 

by documentary evidence including 

invoices and receipts; 

(ii) The pecuniary loss is the direct 

result of the illegal acts and is not the 

result of otherwise lawful acts that were 

committed in the course of a criminal 

offense; 

(iii) The victim did not knowingly 

contribute to, participate in, benefit 

from, or act in a willfully blind manner 

towards commission of the offense, or 

related offense, that was the underlying 

basis of the forfeiture; 

(iv) The victim has not in fact been 

compensated for the wrongful loss of 

the property by the perpetrator or 

others; and 

(v) The victim does not have recourse 

reasonably available to other assets from 

which to obtain compensation for the 

wrongful loss of the property. 

(3) Pecuniary loss. The amount of the 

pecuniary loss suffered by a victim for 

which remission may be granted is 

limited to the fair market value of the 

property of which the victim was 

deprived as of the date of the occurrence 

of the loss. No allowance shall be made 

for interest forgone or for collateral 

expenses incurred to recover lost 

property or to seek other recompense. 

(4) Torts. A tort associated with illegal 

activity that formed the basis for the 

forfeiture shall not be a basis for 

remission, unless it constitutes the 

illegal activity itself, nor shall remission 

be granted for physical injuries to a 

petitioner or for damage to a petitioner’s 

property. 

(5) Denial of petition. As a matter of 

discretion, the Ruling Official may 

decline to grant remission where: 

(i) There is substantial difficulty in 

calculating the pecuniary loss incurred 

by the victim or victims; 

(ii) The amount of the remission, if 

granted, would be small compared with 

the amount of expenses incurred by the 

Government in determining whether to 

grant remission; or 

(iii) The total number of victims is 

large and the monetary amount of the 

remission so small as to make its 

granting impractical. 

(6) Pro rata basis. In granting 

remission to multiple victims pursuant 

to this section, the Ruling Official 

should generally grant remission on a 

pro rata basis to recognized victims 

when petitions cannot be granted in full 

due to the limited value of the forfeited 

property. However, the Ruling Official 

may consider, among others, the 

following factors in establishing 

appropriate priorities in individual 

cases: 

(i) The specificity and reliability of 

the evidence establishing a loss; 

(ii) The fact that a particular victim is 

suffering an extreme financial hardship; 

(iii) The fact that a particular victim 

has cooperated with the Government in 

the investigation related to the forfeiture 

or to a related persecution or civil 

action; and 

(iv) In the case of petitions filed by 

multiple victims of related offenses, the 

fact that a particular victim is a victim 

of the offense underlying the forfeiture. 

(7) Reimbursement. Any petitioner 

granted remission pursuant to this part 

shall reimburse the Postal Service 

Forfeiture Fund for the amount 

received, to the extent the individual 

later receives compensation for the loss 

of property from any other source. The 

petitioner shall surrender the 

reimbursement upon payment from any 

secondary source. 

(8) Claims of financial institution 

regulatory agencies. In cases involving 

property forfeitable under 18 U.S.C. 

981(a)(1)(C) or (D), the Ruling Official 

may decline to grant a petition filed by 

a petitioner in whole or in part due to 

the lack of sufficient forfeitable funds to 

satisfy both the petitioner and claims of 

the financial institution regulatory 

agencies pursuant to 18 U.S.C. 981(e)(3) 

or (7). Generally, claims of financial 

institution regulatory agencies pursuant 

to 18 U.S.C. 981(e)(3) or (7) shall take 

priority over claims of victims. 

(9) Amount of Remission. Consistent 

with the Assets Forfeiture Fund statute 

(28 U.S.C. 524(c)), the amount of 

remission shall not exceed the victim’s 

share of the net proceeds of the 

forfeitures associated with the activity 

that caused the victim’s loss. The 

calculation of net proceeds includes, but 

is not limited to, the deduction of 

allowable Government expenses and 

valid third-party claims. 

(i) Miscellaneous provisions—(1) 

Priority of payment. Except where 

otherwise provided in this part, costs 

incurred by the Postal Inspection 

Service, the U.S. Marshals Service, and 

other agencies participating in the 

forfeiture that were incident to the 

forfeiture, sale, or other disposition of 

the property shall be deducted from the 

amount available for remission or 

mitigation. Such costs include, but are 

not limited to, court costs, storage costs, 

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11452 Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Proposed Rules 

brokerage and other sales-related costs, 

the amount of any liens and associated 

costs paid by the Government on the 

property, costs incurred in paying the 

ordinary and necessary expenses of a 

business seized for forfeiture, awards for 

information as authorized by statute, 

expenses of trustees or other assistants 

pursuant to paragraph (i)(3) of this 

section, investigative or prosecutorial 

costs specially incurred incident to the 

particular forfeiture, and costs incurred 

incident to the processing of petitions 

for remission or mitigation. The 

remaining balance shall be available for 

remission or mitigation. The Ruling 

Official shall direct the distribution of 

the remaining balance in the following 

order or priority, except that the Ruling 

Official may exercise discretion in 

determining the priority between 

petitioners belonging to classes 

described in paragraph (i)(1)(iii) and (iv) 

of this section in exceptional 

circumstances: 

(i) Owners; 

(ii) Lienholders; 

(iii) Federal financial institution 

regulatory agencies (pursuant to 

paragraph (i)(5) of this section), not 

constituting owners or lienholders; and 

(iv) Victims not constituting owners 

or lienholders pursuant to paragraph (h) 

of this part. 

(2) Sale or disposition of property 

prior to ruling. If forfeited property has 

been sold or otherwise disposed of prior 

to a ruling, the Ruling Official may grant 

relief in the form of a monetary amount. 

The amount realized by the sale of 

property is presumed to be the value of 

the property. Monetary relief shall not 

be greater than the appraised value of 

the property at the time of seizure and 

shall not exceed the amount realized 

from the sale or other disposition. The 

proceeds of the sale shall be distributed 

as follows: 

(i) Payment of the Government’s 

expenses incurred incident to the 

forfeiture and sale, including court costs 

and storage charges, if any; 

(ii) Payment to the petitioner of an 

amount up to that person’s interest in 

the property; 

(iii) Payment to the Postal Service 

Forfeiture Fund of all other costs and 

expenses incident to the forfeiture; 

(iv) In the case of victims, payment of 

any amount up to the amount of that 

person’s loss; and 

(v) Payment of the balance remaining, 

if any, to the Postal Service Forfeiture 

Fund. 

(3) Trustees and other assistants. As 

a matter of discretion, the Ruling 

Official, with the approval of the Chief 

Postal Inspector, may use the services of 

a trustee, other Government official, or 

appointed contractors to notify potential 

petitioners, process petitions, and make 

recommendations to the Ruling Official 

on the distribution of property to 

petitioners. The expense for such 

assistance shall be paid out of the 

forfeited funds. 

(4) Other agencies of the United 

States. Where another agency of the 

United States is entitled to remission or 

mitigation of forfeited assets because of 

an interest that is recognizable under 

this part or is eligible for such transfer 

pursuant to 18 U.S.C. 981(e)(6), such 

agency shall request the transfer in 

writing, in addition to complying with 

any applicable provisions of paragraphs 

(c) through (e) of this section. The 

decision to make such transfer shall be 

made in writing by the Ruling Official. 

(5) Financial institution regulatory 

agencies. A Ruling Official may direct 

the transfer of property under 18 U.S.C. 

981(e) to certain Federal financial 

institution regulatory agencies or an 

entity acting in their behalf, upon 

receipt of a written request, in lieu of 

ruling on a petition for remission or 

mitigation. 

(6) Transfers to foreign governments. 

A Ruling Official may decline to grant 

remission to any petitioner other than 

an owner or lienholder so that forfeited 

assets may be transferred to a foreign 

government pursuant to 18 U.S.C. 

981(i)(1); 19 U.S.C. 1616a(c)(2); or 21 

U.S.C. 881(e)(1)(E). 

(7) Filing by attorneys. 

(i) A petition for remission or 

mitigation may be filed by a petitioner 

or by that person’s attorney or legal 

guardian. If an attorney files on behalf 

of the petitioner, the petition must 

include a signed and sworn statement 

by the client-petitioner stating that: 

(A) The attorney has the authority to 

represent the petitioner in this 

proceeding; 

(B) The petitioner has fully reviewed 

the petition; and 

(C) The petition is truthful and 

accurate in every respect. 

(ii) Verbal notification of 

representation is not acceptable. 

Responses and notification of rulings 

shall not be sent to an attorney claiming 

to represent a petitioner unless a written 

notice of representation is filed. No 

extensions of time shall be granted due 

to delays in submission of the notice of 

representation. 

(8) Consolidated petitions. At the 

discretion of the Ruling Official in 

individual cases, a petition may be filed 

by one petitioner on behalf of other 

petitioners, provided the petitions are 

based on similar underlying facts, and 

the petitioner who files the petition has 

written authority to do so on behalf of 

other petitioners. This authority must be 

either expressed in documents giving 

the petitioner the authority to file 

petitions for remission, or reasonably 

implied from documents giving the 

petitioner express authority to file 

claims or lawsuits related to the course 

of conduct in question on behalf of 

these petitioners. An insurer or an 

administrator of an employee benefit 

plan, for example, which itself has 

standing to file a petition as a ‘‘victim’’ 

within the meaning of paragraph (b)(22) 

of this section, may also file a petition 

on behalf of its insured or plan 

beneficiaries for any claims they may 

have based on co-payments made to the 

perpetrator of the offense underlying the 

forfeiture, or the perpetrator of a 

‘‘related offense’’ within the meaning of 

paragraph (b)(20), if the authority to file 

claims or lawsuits is contained in the 

document or documents establishing the 

plan. Where such a petition is filed, any 

amounts granted as remission must be 

transferred to the other petitioners, not 

the party filing the petition; although, as 

a matter of discretion, the Ruling 

Official may use the actual petitioner as 

an intermediary for transferring the 

amounts authorized as a remission to 

the other petitioners. 

5. Section 233.10 is reserved. 

§ 233.10 [Reserved]. 

Stanley F. Mires, 

Attorney, Legal Policy & Legislative Advice. 

[FR Doc. 2012–4396 Filed 2–24–12; 8:45 am] 

BILLING CODE 7710–12–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R04–OAR–2010–0936–201150, FRL– 

9637–9] 

Approval and Promulgation of Air 

Quality Implementation Plans; State of 

Georgia; Regional Haze State 

Implementation Plan 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing a limited 

approval of a revision to the Georgia 

state implementation plan (SIP) 

submitted by the State of Georgia 

through the Georgia Department of 

Natural Resources, Environmental 

Protection Division (GA EPD), on 

February 11, 2010, as supplemented on 

November 19, 2010, that addresses 

regional haze for the first 

implementation period. This SIP 

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