[Federal Register Volume 77, Number 59 (Tuesday, March 27, 2012)]
[Proposed Rules]
[Pages 18143-18145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7122]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Part 148

[USCBP-2012-0008]
RIN 1515-AD76


Members of a Family for Purpose of Filing a CBP Family 
Declaration

AGENCIES: U.S. Customs and Border Protection, DHS; Department of the 
Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: U.S. Customs and Border Protection (CBP) is proposing to 
revise its regulations regarding U.S. returning residents who are 
eligible to file a single customs declaration for members of a family 
traveling together upon arrival in the United States. Specifically, CBP 
is proposing to expand the definition of the term ``members of a family 
residing in one household'' to allow more U.S. returning residents to 
file a family customs declaration for articles acquired abroad. CBP 
anticipates that this proposed change will reduce the amount of 
paperwork that CBP officers would need to review during inspection and, 
therefore, facilitate passenger processing. CBP believes that this 
proposed change would more accurately reflect relationships between 
members of the public who are traveling together as a family.

DATES: Written comments must be received on or before May 29, 2012.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments via Docket No. USCBP 
2012-0008.
    <bullet> Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, U.S. Customs and Border Protection, 799 9th Street NW., 
(Mint Annex), Washington, DC 20229-1179.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Submitted comments 
may also be inspected during regular business days between the hours of 
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch, 
Regulations and Rulings, Office of International Trade, U.S. Customs 
and Border Protection, 799 9th Street NW., 5th Floor, Washington, DC. 
Arrangements to inspect submitted comments should be made in advance by 
calling Joseph Clark at (202) 325-0118.

FOR FURTHER INFORMATION CONTACT: Sophie Galvan, Program Manager, 
Trusted Traveler Programs, Office of Field Operations, (202) 344-2292.

SUPPLEMENTARY INFORMATION: 

Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of this 
proposed rule. U.S. Customs and Border Protection (CBP) also invites 
comments that relate to the economic, environmental, or federalism 
effects that might result from this proposed rule. Comments that will 
provide the most

[[Page 18144]]

assistance to CBP in developing these procedures will reference a 
specific portion of the proposed rule, explain the reason for any 
recommended change, and include data, information, or authority that 
supports such recommended change. See ADDRESSES above for information 
on how to submit comments.

Background

    Individuals entering the United States must declare all articles 
acquired abroad to CBP at the port of first arrival in the United 
States. Returning residents and nonresidents arriving in the United 
States must make a declaration, either oral or written, of the 
merchandise they are importing and must pay duty on the merchandise 
unless specifically exempted by law. See 19 U.S.C. 1202 (General Note 
3(i), Harmonized Tariff Schedule of the United States (HTSUS)). Unless 
an oral declaration is accepted, a person arriving in the United States 
must complete a written declaration on CBP Form 6059-B and present the 
form to the CBP officer at inspection.

Personal Exemptions

    Subheadings 9804.00.65, 9804.00.70 and 9804.00.72, Chapter 98, 
HTSUS, extend, under prescribed circumstances, duty exemptions to 
certain articles imported by or for the account of any person arriving 
in the United States who is a returning resident of the United States. 
The duty exemptions (also known as personal exemptions) set forth in 
these tariff schedule subheadings specify the aggregate fair retail 
value of merchandise that a returning resident may bring back to the 
United States without having to pay duty. As authorized by General Note 
3(i), HTSUS, part 148 of title 19 of the Code of Federal Regulations 
(19 CFR) (CBP regulations) sets forth regulations pertaining to 
personal declarations and exemptions under subchapter IV (Personal 
Exemptions Extended to Residents and Nonresidents), Chapter 98, HTSUS.

Family Declarations and Grouping of Exemptions

    When members of a family residing in one household travel together 
on their return to the United States, a responsible family member may 
make a joint declaration, either oral or written, for all members of 
the family traveling together. This joint family declaration is 
contingent upon the value of the articles acquired abroad not exceeding 
the total amount of the exemption to which the family group is 
entitled. See 19 CFR 148.14. CBP regulations also allow for the 
aggregation, or grouping, of exemptions by members of a family for 
articles acquired abroad and for the aggregation of duty allowances for 
household goods by members of a family. See 19 CFR 148.14, 148.34, and 
148.103. For example, when members of a family residing in one 
household travel together on their return to the United States, the 
$800 or $1,600 exemption, which each family member may be entitled to 
claim, may be grouped together without regard to which member of the 
family is the owner of the articles.\1\ 19 CFR 148.34.
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    \1\ A group exemption, however, cannot include an exemption for 
a family member who is not entitled to it in his own right, nor can 
a group exemption apply to any property of such a member. For 
example, the exemption of a family member who has not attained the 
age of 21 regarding the number of permitted duty-free liters of 
alcoholic beverages cannot be applied under the group exemption.
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    Under the current regulations relating to family declarations, a 
family may file a single, aggregated customs declaration only if they 
satisfy the definition of ``members of a family residing in one 
household.'' See 19 CFR 148.34(b) and 148.103(b). This definition 
requires that members of a family traveling together who return to the 
United States be related ``by blood, marriage, or adoption;'' live 
together in the same household at their last permanent residence; and 
intend to live in the same household after returning to the United 
States. CBP does not believe that the current definition encompasses 
other relationships where members of the public travel together as a 
family. CBP believes that the definition unnecessarily limits the 
number of individuals who may file a family customs declaration for 
articles acquired abroad.

Proposed Changes to Family Customs Declarations

    This NPRM proposes to expand the definition of ``members of a 
family residing in one household'' for purposes of filing a customs 
declaration for returning U.S. residents to more accurately reflect 
relationships among members of the public who are traveling together as 
a family.
    By expanding the definition of ``members of a family residing in 
one household,'' CBP anticipates that the number of declarations (CBP 
Form 6059-Bs) will be reduced, which would make the processing of 
passengers by CBP officers more streamlined and efficient. 
Additionally, CBP believes the traveling public will benefit because 
more members of a family traveling together can aggregate their 
individual personal duty exemptions upon their return to the United 
States.
    Under this NPRM, CBP is proposing to include foster children, 
stepchildren, half-siblings, legal wards, other dependents, and 
individuals with an in loco parentis or guardianship relationship 
within the definition of ``members of a family residing in one 
household.'' CBP also is proposing that the definition include two 
adult individuals in a committed relationship wherein the partners 
share financial assets and obligations, and are not married to, or a 
partner of, anyone else, including, but not limited to, long-time 
companions, and couples in civil unions or domestic partnerships. This 
NPRM proposes to add these relationships to the definition of ``members 
of a family residing in one household'' and refer to them as ``domestic 
relationships.'' The proposed term ``domestic relationship'' would not 
extend to roommates or other cohabitants not otherwise meeting the 
above definition. Additionally, the proposed changes would not alter 
the residency requirements that, in order to file a family declaration, 
members of a family residing in one household must live together in one 
household at their last permanent residence and intend to live together 
in one household after their arrival in the United States.

Other Non-Substantive, Changes to the Regulations

    This proposal would also remove outdated references to ``resident 
servants'' of a family and state instead that individuals employed by 
the household but not related by blood, marriage, domestic 
relationship, or adoption cannot be included in the family declaration.
    Finally, this NPRM proposes to remove the phrase ``regardless of 
age'' where it currently appears in the introductory text of Sec. Sec.  
148.34(b) and 148.103(b), because it would not be consistent with the 
proposed definition of ``domestic relationships,'' which is limited to 
adults.

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule

[[Page 18145]]

has been designated a ``significant regulatory action'' although not 
economically significant, under section 3(f) of Executive Order 12866. 
Accordingly, the Office of Management and Budget has reviewed this 
rule.

Regulatory Flexibility Act

    This section examines the impact of the rule on small entities as 
required by the Regulatory Flexibility Act (5 U.S.C. 603), as amended 
by the Small Business Regulatory Enforcement and Fairness Act of 1996 
(SBREFA), which requires an agency to prepare and make available to the 
public a regulatory flexibility analysis that describes the effect of a 
proposed rule on small entities (i.e., small business, small 
organizations, and small governmental jurisdictions) when the agency is 
required to publish a general notice of proposed rulemaking for any 
proposed rule.
    This rule directly regulates individuals and families, and these 
are not considered small entities. Therefore, CBP certifies that this 
rule will not have a significant economic impact on a substantial 
number of small entities. CBP welcomes any comments on this conclusion.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507), an agency may not conduct, and a person is not required to 
respond to, a collection of information unless the collection of 
information displays a valid control number assigned by Office of 
Management and Budget (OMB). The information collected under 19 CFR 
part 148 is included under OMB control number 1651-0009. There are no 
new collections of information proposed in this document. The estimated 
burden hours related to the completion of the CBP Form 6059-B (Customs 
Declaration) for OMB control number 1651-0009 by members of the public 
traveling by air and sea have been updated below to reflect the slight 
decrease in the number of Customs Declarations that are submitted if 
the definition of a ``member of a family residing in one household'' in 
this proposal is adopted, as follows
    Estimated Number of Respondents (Travelers): 1,100,000.
    Estimated Time per Response: 4 minutes.
    Estimated Total Responses: -1,100,000.
    Estimated Total Annual Burden Hours: -2,600.
    The Customs Declaration (CBP Form 6059B) is due to expire in 
February 2014. CBP Form 6059B can be seen on the following Web site: 
http://www.cbp.gov/xp/cgov/travel/vacation/sample_declaration_form.xml. CBP seeks public comment as to as to whether and how the 
Customs Declaration form could more clearly inform U.S. residents of 
the definition of family for the purposes of filling out a customs 
declaration.

Signing Authority

    This regulation is being issued in accordance with 19 CFR 0.1(a)(1) 
pertaining to the authority of the Secretary of the Treasury (or that 
of his or her delegate) to approve regulations pertaining to certain 
customs revenue functions.

List of Subjects in 19 CFR Part 148

    Customs duties and inspection, Declarations, Reporting and 
recordkeeping requirements, Taxes.

Amendments to the CBP Regulations

    For the reasons set forth above, part 148 of the CBP regulations 
(19 CFR part 148) is proposed to be amended as set forth below.

PART 148--PERSONAL DECLARATIONS AND EXEMPTIONS

    1. The general authority for part 148 continues to read as follows:

    Authority:  19 U.S.C. 66, 1496, 1498, 1624. The provisions of 
this part, except for subpart C, are also issued under 19 U.S.C. 
1202 (General Note 3(i), Harmonized Tariff Schedule of the United 
States);
* * * * *


Sec.  148.14  [Amended]

    2. Section 148.14 is amended by removing the last sentence and 
adding in its place the sentence ``Individuals who are employed by the 
household but not related by blood, marriage, domestic relationship, or 
adoption will not be included in the family declaration.''
    3. In Sec.  148.34:
    a. Paragraph (a) is amended by removing the last sentence and 
adding in its place the sentence ``No exemptions allowable to 
individuals employed by the household and accompanying the family but 
not related by blood, marriage, domestic relationship, or adoption will 
be included in the family grouping.''; and
    b. By revising paragraph (b) and adding a new paragraph (c).
    The additions and revisions to Sec.  148.34 are to read as follows:


Sec.  148.34  Family grouping of exemptions for articles acquired 
abroad.

* * * * *
    (b) Members of a family residing in one household. ``Members of a 
family residing in one household'' includes all persons who:
    (1) Are related by blood, marriage, domestic relationship, or 
adoption;
    (2) Lived together in one household at their last permanent 
residence; and
    (3) Intend to live in one household after their arrival in the 
United States.
    (c) Domestic relationship. As used in paragraph (b)(1), the term 
``domestic relationship'' includes foster children, stepchildren, half-
siblings, legal wards, other dependents, individuals with an in loco 
parentis or guardianship relationship, and two adults who are in a 
committed relationship including, but not limited to, long-time 
companions, and couples in civil unions, or domestic partnerships, 
wherein the partners share financial assets and obligations, and are 
not married to, or a partner of, anyone else. The term ``domestic 
relationship'' does not extend to roommates or other cohabitants not 
otherwise meeting this definition.
    4. Section 148.103(b) is revised to read as follows:


Sec.  148.103  Family grouping of allowances.

* * * * *
    (b) Members of a family residing in one household. ``Members of a 
family residing in one household'' includes all persons who:
    (1) Are related by blood, marriage, domestic relationship (as 
defined in Sec.  148.34(c)), or adoption;
    (2) Lived together in one household at their last permanent 
residence; and
    (3) Intend to live in one household after their arrival in the 
United States.

Allen Gina,
Acting Commissioner, U.S. Customs and Border Protection.
    Approved: March 20, 2012.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2012-7122 Filed 3-26-12; 8:45 am]
BILLING CODE 9111-14-P