[Federal Register Volume 63, Number 128 (Monday, July 6, 1998)]
[Proposed Rules]
[Pages 36379-36384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17815]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 4

RIN 1515-AC29


Boarding of Vessels in the United States

AGENCY: U.S. Customs Service, Treasury.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This document proposes, as a primary focus, to amend the 
Customs Regulations regarding the boarding of vessels arriving in ports 
of the United States. It is intended that the Customs Regulations 
regarding this subject accurately reflect and implement amendments to 
the underlying statutory authority, enacted as part of the Customs 
Modernization Act, as well as policy determinations necessitated as a 
result of those amendments. To this same end, certain general 
amendments are proposed to the regulations concerning vessel entry and 
clearance as well as the issuance of permits to lade and unlade 
merchandise.

DATES: Comments must be received on or before September 4, 1998.

ADDRESSES: Written comments may be addressed to and inspected at the 
Regulations Branch, U.S. Customs Service, 1300 Pennsylvania Avenue, 
N.W., 3rd Floor, Washington, D.C. 20229.

FOR FURTHER INFORMATION CONTACT:
Legal aspects: Larry L. Burton, Office of Regulations and Rulings, 202-
927-1287.
Operational aspects: William Scopa, Office of Field Operations, 202-
927-3112.

SUPPLEMENTARY INFORMATION:

Background

    On December 8, 1993, amendments to certain Customs and navigation 
laws became effective as the result of the North American Free Trade 
Agreement Implementation Act (Pub. L. 103-182), Title VI of which is 
popularly known as the Customs Modernization Act (the Act). Sections 
653 and 656 of the Act significantly amended the statutes governing the 
entry and the lading and unlading of vessels in the United States. 
These operations are governed, respectively, by Secs. 434 and 448 of 
the Tariff Act of 1930, as amended (19 U.S.C. 1434 and 1448).
    Prior to the subject amendments, the entry of vessels of the United 
States and vessels of foreign countries had been governed by separate 
statutes (19 U.S.C.

[[Page 36380]]

1434 and 1435), neither of which included elements concerning 
preliminary vessel entry or the boarding of vessels. The Act repealed 
19 U.S.C. 1435 and amended 19 U.S.C. 1434 to provide for the entry of 
American and foreign-documented vessels under the same statute. 
Additionally, the amended 19 U.S.C. 1434 now provides authority for the 
promulgation of regulations regarding preliminary vessel entry, and 
while neither mandating boarding for all vessels nor specifying that 
optional boarding must be accomplished at any particular stage of the 
vessel entry process, the amended law does require that a sufficient 
number of vessels be boarded to ensure compliance with the laws 
enforced by the Customs Service.
    The general authority provided for Customs to board vessels is 
found in Sec. 581, Tariff Act of 1930, as amended (19 U.S.C. 1581). 
Prior to amendment, 19 U.S.C. 1448 as previously cited had linked the 
granting of preliminary vessel entry to a mandatory boarding 
requirement and physical presentation of manifest documents to a 
Customs boarding officer. The amended 19 U.S.C. 1448 no longer contains 
provisions regarding preliminary vessel entry, vessel boarding, or 
manifest presentation, all of which are now provided for in other 
statutes; the statute now provides that Customs may electronically 
issue permits to lade or unlade merchandise pursuant to an authorized 
data interchange system as an alternative to physical document 
presentation.
    The regulations which implement the statutory authority for 
boarding, the granting of preliminary and formal vessel entry, the 
issuance of permits to lade and unlade merchandise, and vessel 
clearance are contained in Secs. 4.1, 4.3, 4.8, 4.9, 4.30, 4.60 and 
4.61 of the Customs Regulations (19 CFR 4.1, 4.3, 4.8, 4.9, 4.30, 4.60 
and 4.61). Various of these provisions still contain mandatory boarding 
and physical document presentation requirements, and of course do not 
include any reference to the new electronic permit issuance option. 
This document proposes to amend the cited sections in order to properly 
implement the amended statutory authority and revised Customs 
interpretations.
    This document proposes to amend Sec. 4.1 by removing all reference 
to the mandatory boarding of vessels. The amended 19 U.S.C. 1434 makes 
it clear that boarding is discretionary with Customs and is only 
required to the extent determined necessary to enforce the laws with 
which we are charged. This is accomplished by deleting paragraph (b) 
and making necessary amendments to paragraph (a) of the section.
    Section 4.3 is proposed to be amended by identifying the vessels 
subject to entry in the simplified outline format presented in the 
statute itself. The use of this format makes much of the current 
language of Sec. 4.3 unnecessary. The proposal provides for vessel 
entry within 24 hours after arrival. Although the amended statute 
provides that the time may be extended by regulation to a period not to 
exceed 48 hours, Customs believes that 24 hours is adequate. The 
proposal also includes procedures for allowing Customs, in its 
discretion, to allow vessels to enter at places other than the 
customhouse as well as at locations outside of the actual port of entry 
limits. This discretion is conferred by statute.
    Proposed amendments to Sec. 4.8 are offered in this document. The 
proposal would amend the regulation by providing that preliminary entry 
may be granted after, at the time of, or even before the actual arrival 
of a vessel in the United States. Different procedures are established 
to apply to these differing circumstances.
    Also proposed are amendments to Sec. 4.9 of the regulations 
concerning the actual vessel entry process. The proposed amendments 
make it clear that for the purpose of the vessel entry statute, Customs 
does not interpret bonded merchandise to include bonded vessel stores 
or ship's supplies. We consider the term to refer to in-bond 
transportation of merchandise. This interpretation makes it necessary 
to define specific procedures applicable to certain United States 
vessels sailing between domestic ports.
    It is proposed that Sec. 4.16 be removed from the regulations. The 
section currently provides that parties may apply for entry and 
clearance to be accomplished aboard a vessel. The amended entry and 
clearance statutes permit those functions to be accomplished elsewhere 
than at the customhouse pursuant to regulations. Amendments to 
Secs. 4.3 and 4.61 as proposed in this document would permit entry and 
clearance aboard vessels. These changes would render Sec. 4.16 
redundant.
    The regulation relating to the granting of lading and unlading 
permits in Sec. 4.30 is also proposed to be amended. Specifically, 
procedures are established which are applicable to newly-emerging 
commercial entities, such as those created by vessel sharing and slot 
chartering agreements.
    Section 4.60 is sought to be amended by utilizing the simplified 
outline format appearing in the amended vessel clearance statute (46 
U.S.C. App. 91). This would replace the present paragraph format which 
reflects the clearance language prior to its amendment.
    It is proposed to amend Sec. 4.61 by allowing clearance filings to 
be accomplished by authorized electronic means. The proposal also 
establishes that clearances may be necessary for departures other than 
for foreign ports as was the case under the law prior to its amendment. 
As in the proposed entry regulation, this section would also 
incorporate special procedures applicable to certain United States 
vessels sailing between domestic ports.
    The proposal also makes some changes to the list of elements 
appearing in current Sec. 4.61(b), which are required to be satisfied 
prior to the granting of clearance. The reference to ``crew'' is 
removed from paragraph (b)(8) of the current section, due to the repeal 
of the underlying statute (46 U.S.C. App. 674) by enactment of section 
690(a)(22) of Pub. L. 103-182 (December 8, 1993). The reference to 
``pratique'' is removed from paragraph (b)(14) of the current section, 
as a result of amendments to the Public Health Service Regulations 
which eliminate the pratique but leave in place other health-related 
documentary requirements. Finally, paragraph (b)(17) of the current 
section is removed because the underlying statute in this regard, 7 
U.S.C. 516, which restricted the exportation of tobacco seeds, was 
repealed by Sec. 1019 of Pub. L. 102-237 (December 13, 1991).
    Amendments are proposed to Sec. 4.68 to reflect amendments to laws 
enforced by Customs on behalf of other agencies, and to eliminate the 
antiquated reference to the whale fishery.
    Finally, Sec. 4.70 is proposed to be amended to eliminate the 
reference to the former Public Health Service's certificate of free 
pratique. New Public Health Service foreign quarantine regulations are 
now in effect.

Comments

    Before adopting this proposal, consideration will be given to any 
written comments that are timely submitted to Customs. Comments 
submitted will be available for public inspection in accordance with 
the Freedom of Information Act (5 U.S.C. 552), Sec. 1.4, Treasury 
Department Regulations (31 CFR 1.4), and Sec. 103.11(b), Customs 
Regulations (19 CFR 103.11(b)), on regular business days between the 
hours of 9:00 a.m. and 4:30 p.m. at the Regulations Branch, U.S. 
Customs Service, 1300 Pennsylvania Avenue, N.W., 3rd Floor, Washington, 
D.C.

[[Page 36381]]

Regulatory Flexibility Act and Executive Order 12866

    The proposed rule would amend the Customs Regulations principally 
in order to accurately reflect and implement changes to the underlying 
statutory authority regarding the boarding of vessels arriving in ports 
of the United States. To this same end, certain general amendments to 
the regulations are proposed concerning vessel entry and clearance as 
well as the issuance of permits to lade and unlade merchandise. As 
such, under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), it 
is certified that, if adopted, the proposed rule will not have a 
significant economic impact on a substantial number of small entities. 
Accordingly, it is not subject to the regulatory analysis or other 
requirements of 5 U.S.C. 603 and 604. Nor does the document meet the 
criteria for a ``significant regulatory action'' as specified in E.O. 
12866.

Paperwork Reduction Act

    The collections of information contained in this notice of proposed 
rulemaking have previously been reviewed and approved by the Office of 
Management and Budget (OMB) in accordance with the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3507) and assigned the following OMB Control 
Numbers:

1515-0013--Application-Permit-Special License, Unlading-Lading-Overtime 
Services (Customs Form 3171);
1515-0060--Master's Oath of Vessels in Foreign Trade (Customs Form 
1300);
1515-0078--Cargo Declaration (inward and outward) (Customs Form 1302); 
and
1515-0144--Customs Bond Structure (Customs Form 301 and Customs Form 
5297).

    An agency may not conduct or sponsor, 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 OMB. This 
document restates the collections of information without substantive 
change.
    Comments concerning suggestions for reducing the burden of the 
collections of information should be sent to the Regulations Branch, 
Office of Regulations and Rulings, U.S. Customs Service, 1300 
Pennsylvania Avenue, N.W., 3rd Floor, Washington, D.C. 20229. A copy 
should also be sent to U.S. Customs Service, Information Services 
Group, Attention: J. Edgar Nichols, Room 3.2-C, 1300 Pennsylvania 
Avenue, N.W., 3rd Floor, Washington, D.C. 20229.
    Drafting Information: The principal author of this document was 
Larry L. Burton, Office of Regulations and Rulings, U.S. Customs 
Service. However, personnel from other offices participated in its 
development.

List of Subjects in 19 CFR Part 4

    Customs duties and inspection, Entry, Freight, Harbors, Inspection, 
Merchandise, Reporting and recordkeeping requirements, Vessels.

Proposed Amendments to the Regulations

    It is proposed to amend part 4, Customs Regulations (19 CFR part 
4), as set forth below.

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

    1. The specific authority citations for Secs. 4.1, 4.9 and 4.68 
would be revised, and a specific authority citation for Sec. 4.61 would 
be added in appropriate numerical order, to read as follows:

    Authority: * * *
    Section 4.1 also issued under 19 U.S.C. 1581(a); 46 U.S.C. App. 
163;
* * * * *
    Section 4.9 also issued under 42 U.S.C. 269;
* * * * *
    Section 4.61 also issued under 46 U.S.C. App. 883;
* * * * *
    Section 4.68 also issued under 46 U.S.C. App. 817d, 817e;
* * * * *
    2. It is proposed to amend Sec. 4.1 by revising paragraph (a) to 
read as set forth below; and by removing paragraph (b) and 
redesignating paragraphs (c), (d), (e), (f), and (g), as paragraphs 
(b), (c), (d), (e) and (f), respectively:


Sec. 4.1  Boarding of vessels; cutter and dock passes.

    (a) Every vessel arriving at a Customs port shall be subject to 
such supervision while in port as the port director considers 
necessary. The port director may detail Customs officers to remain on 
board a vessel to secure enforcement of this part. Customs may 
determine to board as many vessels as considered necessary to ensure 
compliance with the laws it enforces.
* * * * *
    3. It is proposed to amend part 4 by removing and reserving 
Footnote 1.
    4. It is proposed to revise Sec. 4.3 to read as follows:


Sec. 4.3  Vessels required to enter; place of entry.

    (a) Formal entry required. Unless specifically excepted by law, 
within 24 hours after the arrival at any port or place in the United 
States, the following vessels are required to make formal entry:
    (1) Any vessel from a foreign port or place;
    (2) Any foreign vessel from a domestic port;
    (3) Any vessel of the United States having merchandise on board 
that is being transported in-bond (not including bonded ship's stores 
or supplies), or foreign merchandise for which entry has not been made; 
or
    (4) Any vessel that has visited a hovering vessel as defined in 19 
U.S.C. 1401(k), or has delivered or received merchandise or passengers 
while outside the territorial sea.
    (b) Completion of entry. (1) When vessel entry is to be made at the 
customhouse, either the master, licensed deck officer, or purser may 
appear in person during regular working hours to complete preliminary 
or formal vessel entry; or, necessary documents properly executed by 
the master or other authorized officer may be delivered at the 
customhouse by the vessel agent or other personal representative of the 
master.
    (2) The appropriate Customs port director may permit the entry of 
vessels to be accomplished at locations other than the customhouse, and 
services may be requested outside of normal business hours. Customs may 
take local resources into consideration in allowing formal entry to be 
transacted on board vessels themselves or at other mutually convenient 
approved sites and times within or of outside port limits. When 
services are requested to be provided outside the limits of a Customs 
port, the appropriate port director to whom an application must be 
submitted is the director of the port located nearest to the point 
where the proposed services would be provided. That port director must 
be satisfied that the place designated for formal entry will be 
sufficiently under Customs control at the time of entry, and that the 
expenses incurred by Customs will be reimbursed as authorized. It may 
be required that advance notice of vessel arrival be given as a 
condition for granting requests for optional entry locations. A master, 
owner, or agent of a vessel who desires that entry be made at an 
optional location shall file with the appropriate port director an 
application on Customs Form 3171 and a single entry or continuous bond 
on Customs Form 301 containing the bond conditions set forth in 
Sec. 113.64 of this chapter, in such amount as that port director deems 
appropriate but not less than $1,000. If the application is approved, 
the port

[[Page 36382]]

director or a designated Customs officer shall formally enter the 
vessel.
    5. It is proposed to revise Sec. 4.8 to read as follows:


Sec. 4.8  Preliminary entry.

    (a) Generally. Preliminary entry allows a U.S. or foreign vessel 
arriving under circumstances that require it formally to enter, to 
commence lading and unlading operations prior to making formal entry. 
Preliminary entry may be accomplished electronically pursuant to an 
authorized electronic data interchange system, or by any other means of 
communication approved by the Customs Service.
    (b) Requirements and conditions. Preliminary entry must be made in 
compliance with Sec. 4.30, and may be granted prior to, at, or 
subsequent to arrival of the vessel. The granting of preliminary vessel 
entry by Customs at or subsequent to arrival of the vessel, is 
conditioned upon the presentation to Customs of all forms, 
electronically or otherwise, comprising a complete manifest as provided 
in Sec. 4.7. Vessels seeking preliminary entry in advance of arrival 
may do so by presenting to Customs a complete Customs Form 1302 (Cargo 
Declaration) showing all cargo on board the vessel and Customs Form 
3171, electronically or otherwise, no less than 48 hours prior to 
vessel arrival. The CF 3171 shall also serve as notice of intended date 
of arrival. The port director may allow for the presentation of the CF 
1302 and CF 3171 less than 48 hours prior to arrival in order to grant 
advanced preliminary entry if a vessel voyage takes less than 48 hours 
to complete from the last foreign port to the first U.S. port, or if 
other reasonable circumstances warrant. Preliminary entry granted in 
advance of arrival will become effective upon arrival at the port 
granting preliminary entry. Additionally, Customs must receive 
confirmation of a vessel's estimated time of arrival in a manner 
acceptable to the port director.
    6. It is proposed to revise Sec. 4.9 to read as follows:


Sec. 4.9  Formal entry.

    (a) General. Section 4.3 provides which vessels are subject to 
formal entry and where and when entry must be made. The formal entry of 
an American vessel is governed by section 434, Tariff Act of 1930 (19 
U.S.C. 1434). The term ``American vessel'' means a vessel of the United 
States (see Sec. 4.0(b)) as well as, when arriving by sea, a vessel 
entitled to be documented except for its size (see Sec. 4.0(c)). The 
formal entry of a foreign vessel arriving within the limits of any 
Customs port is also governed by section 434, Tariff Act of 1930 (19 
U.S.C. 1434). The required oath on entry shall be executed on Customs 
Form 1300. Alternatively, information necessary for formal entry may be 
transmitted electronically pursuant to a system authorized by Customs.
    (b) Procedures. Under certain circumstances, American vessels 
arriving in ports of the United States directly from other United 
States ports must make entry. Entry of such vessels is required when 
they have merchandise aboard that is being transported in-bond, or when 
they have unentered foreign merchandise aboard. For the purposes of the 
vessel entry requirements, merchandise transported in-bond does not 
include bonded ship's stores or supplies. While American vessels 
transporting unentered foreign merchandise must fully comply with the 
usual formal entry procedures, American vessels carrying no unentered 
foreign merchandise but that have in-bond merchandise aboard may 
satisfy vessel entry requirements by making a required report of 
arrival, and providing certain bill of lading information to Customs 
concerning the in-bond cargo. If the cargo in question is being moved 
under the ``paperless'' in-bond procedures described in the Customs 
Handbook on Automated Manifest Interface Requirements (a copy of which 
is provided to each Automated Manifest System participant), a list of 
the bill of lading numbers for the in-bond cargo must be provided to 
Customs. If ``paperless'' in-bond procedures are not applicable to the 
cargo, copies of the relevant bills of lading must be presented to 
Customs prior to the start of any cargo unlading. Report of arrival 
together with providing bill of lading information to Customs as 
specified in this paragraph satisfies all entry requirements for the 
subject vessels.
    (c) Delivery of vessel document. The master of any foreign vessel 
shall exhibit the vessel's document to the port director on or before 
the entry of the vessel. After the net tonnage has been noted, the 
document may be delivered to the consul of the nation to which such 
vessel belongs, in which event the vessel master shall certify to the 
port director the fact of such delivery (see section 434, Tariff Act of 
1930, as amended (19 U.S.C. 1434), as applied through section 438, 
Tariff Act of 1930, as amended (19 U.S.C. 1438)). If not delivered to 
the consul, the document shall be deposited in the customhouse. Whether 
delivered to the foreign consul or deposited at the customhouse, the 
document shall not be delivered to the master of the foreign vessel 
until clearance is granted under Sec. 4.61. It shall not be lawful for 
any foreign consul to deliver to the master of any foreign vessel the 
register, or document in lieu thereof, deposited with him in accordance 
with the provisions of 19 U.S.C. 1434 until such master shall produce 
to him a clearance in due form from the director of the port where such 
vessel has been entered. Any consul violating the provisions of this 
section is liable to a fine of not more than $5,000 (section 438, 
Tariff Act of 1930, as amended; 19 U.S.C. 1438).
    (d) Failure to make required entry; penalties. Any master who fails 
to make entry as required by this section or who presents or transmits 
electronically any document required by this section that is forged, 
altered, or false, may be liable for certain civil penalties as 
provided under 19 U.S.C. 1436, in addition to penalties applicable 
under other provisions of law. Further, any vessel used in connection 
with any such violation is subject to seizure and forfeiture.
    7. It is proposed to amend part 4 by removing and reserving 
Sec. 4.16.
    8. It is proposed to amend Sec. 4.30 by adding the word ``fees'' 
between the words ``clearance'' and ``under'' where appearing in 
paragraph (a); and by revising paragraph (b) to read as follows:


Sec. 4.30  Permits and special licenses for unlading and lading.

* * * * *
    (b) Application for a permit or special license shall be made by 
the master, owner, or agent of the vessel on Customs Form 3171, or 
electronically pursuant to an authorized electronic data interchange 
system or other means of communication approved by the Customs Service, 
and shall specifically indicate the type of service desired at that 
time, unless a term permit or term special license has been issued. 
Vessels that arrive in a Customs port with more than one vessel carrier 
sharing or leasing space on board the vessel (such as under a vessel 
sharing or slot charter arrangement) are required to indicate on the CF 
3171 all carriers on board the vessel and indicate whether each carrier 
is transmitting its cargo declaration electronically or is presenting 
it on the Customs Form 1302. In the case of a term permit or term 
special license, upon entry of each vessel, a copy of the term permit 
or special license must be submitted to Customs during official hours 
in advance of the rendering of services so as to update the nature of 
the services desired and the exact times they will be needed. Permits 
must also be updated to reflect any other needed changes including 
those in name of vessel and in slot charter or vessel

[[Page 36383]]

sharing parties. An agent of a vessel may limit his application to 
operations involved in the entry and unlading of the vessel or to 
operations involved in its lading and clearance. Such limitation shall 
be specifically noted on the application.
* * * * *
    9. It is proposed to amend Sec. 4.60 by revising paragraph (a) to 
read as follows:


Sec. 4.60  Vessels required to clear.

    (a) Unless specifically excepted by law, the following vessels must 
obtain clearance from the Customs Service before departing from a port 
or place in the United States:
    (1) All vessels departing for a foreign port or place;
    (2) All foreign vessels departing for another port or place in the 
United States;
    (3) All American vessels departing for another port or place in the 
United States that have merchandise on board which is being transported 
in-bond (not including bonded ship's stores or supplies), or foreign 
merchandise for which entry has not been made; and
    (4) All vessels departing for points outside the territorial sea to 
visit a hovering vessel or to receive merchandise or passengers while 
outside the territorial sea.
* * * * *
    10. It is proposed to revise Sec. 4.61 to read as follows:


Sec. 4.61  Requirements for clearance.

    (a) Application for clearance. Application for clearance for a 
vessel shall be made by filing the oath, Customs Form 1300, and a 
General Declaration, Customs Form 1301, by or on behalf of the master 
at the customhouse. The master, licensed deck officer, or purser may 
appear in person to clear the vessel, or documents properly executed by 
the master or other proper officer may be delivered at the customhouse 
by the vessel agent or other personal representative of the master. 
Necessary information may also be transmitted electronically pursuant 
to a system authorized by Customs. Clearance shall be granted either on 
Customs Form 1378 or by approved electronic means. Customs port 
directors may permit the clearance of vessels at locations other than 
the customhouse, and at times outside of normal business hours. Customs 
may take local resources into consideration in allowing clearance to be 
transacted on board vessels themselves or at other mutually convenient 
sites and times either within or outside of port limits. Customs must 
be satisfied that the place designated for clearance is sufficiently 
under Customs control at the time of clearance, and that the expenses 
incurred by Customs will be reimbursed as authorized. Customs may 
require that advance notice of vessel departure be given prior to 
granting requests for optional clearance locations.
    (b) When clearance required. Under certain circumstances, American 
vessels departing from ports of the United States directly for other 
United States ports must obtain Customs clearance. The clearance of 
such vessels is required when they have merchandise aboard that is 
being transported in-bond, or when they have unentered foreign 
merchandise aboard. For the purposes of the vessel clearance 
requirements, merchandise transported in-bond does not include bonded 
ship's stores or supplies. While American vessels transporting 
unentered foreign merchandise must fully comply with usual clearance 
procedures, American vessels carrying no unentered foreign merchandise 
but that have in-bond merchandise aboard may satisfy vessel clearance 
requirements by reporting intended departure within 72 hours prior 
thereto by any means of communication that is satisfactory to the local 
Customs port director, and by providing certain bill of lading 
information to Customs concerning the in-bond cargo. If the cargo in 
question is being moved under the ``paperless'' in-bond procedures as 
described in the Customs Handbook on Automated Manifest Interface 
Requirements (a copy of which is provided to each Automated Manifest 
System participant), a list of the bill of lading numbers for the in-
bond cargo must be provided to Customs. If ``paperless'' in-bond 
procedures are not applicable to the cargo, copies of the relevant 
bills of lading must be presented to Customs prior to vessel departure. 
Report of departure together with providing bill of lading information 
to Customs as specified in this paragraph satisfies all clearance 
requirements for the subject vessels.
    (c) Verification of compliance. Before clearance is granted to a 
vessel bound to a foreign port as provided in Sec. 4.60 and this 
section, the port director shall verify compliance with respect to the 
following matters:
    (1) Accounting for inward cargo (see Sec. 4.62).
    (2) Outward Cargo Declarations; shippers export declarations (see 
Sec. 4.63).
    (3) Documentation (see Sec. 4.0(c)).
    (4) Verification of nationality and tonnage (see Sec. 4.65).
    (5) Verification of inspection (see Sec. 4.66).
    (6) Inspection under State laws (46 U.S.C. App. 97).
    (7) Closed ports or places (see Sec. 4.67).
    (8) Passengers (see Sec. 4.68).
    (9) Shipping articles and enforcement of Seamen's Act (see 
Sec. 4.69).
    (10) Medicine and slop chests.
    (11) Load line regulations (see Sec. 4.65a).
    (12) Carriage of United States securities, etc. (46 U.S.C. App. 
98).
    (13) Carriage of mail.
    (14) Public Health regulations (see Sec. 4.70).
    (15) Inspection of vessels carrying livestock (see Sec. 4.71).
    (16) Inspection of meat, meat-food products, and inedible fats (see 
Sec. 4.72).
    (17) Neutrality exportation of arms and munitions (see Sec. 4.73).
    (18) Payment of State and Federal fees and fees due the Government 
of the Virgin Islands of the United States (46 U.S.C. App. 100).
    (19) Orders restricting shipping (see Sec. 4.74).
    (20) Estimated duties deposited or a bond given to cover duties on 
foreign repairs and equipment for vessels of the United States (see 
Sec. 4.14).
    (21) Illegal discharge of oil (see Sec. 4.66a).
    (22) Attached or arrested vessel.
    (23) Immigration laws.
    (d) Vessel built for foreign account. A new vessel built in the 
United States for a foreign account shall be cleared under a 
certificate of record, Coast-Guard Form 1316, in lieu of a marine 
document.
    (e) Clearance not granted. Clearance shall not be granted to any 
foreign vessel using the flag of the United States or any distinctive 
signs or markings indicating that the vessel is an American vessel (22 
U.S.C. 454a).
    (f) Clearance in order of itinerary. Unless otherwise provided in 
this section, every vessel bound for a foreign port or ports shall be 
cleared for a definite port or ports in the order of its itinerary, but 
an application to clear for a port or place for orders, that is, for 
instructions to masters as to destination of the vessel, may be 
accepted if the vessel is in ballast or if any cargo on board is to be 
discharged in a port of the same country as the port for which 
clearance is sought.
    11. It is proposed to amend part 4 by removing and reserving 
Footnotes 97, 99 and 100a through 101.
    12. It is proposed to revise Sec. 4.68 to read as follows:


Sec. 4.68  Federal Maritime Commission certificates for certain 
passenger vessels.

    No vessel having berth or stateroom accommodations for 50 or more 
passengers and embarking passengers at

[[Page 36384]]

U.S. ports shall be granted a clearance at the port or place of 
departure from the United States unless it is established that the 
vessel has valid certificates issued by the Federal Maritime 
Commission.
    13. It is proposed to revise Sec. 4.70 to read as follows:


Sec. 4.70  Public Health Service requirements.

    No clearance shall be granted to a vessel subject to the foreign 
quarantine regulations of the Public Health Service.
Bonni G. Tischler,
Acting Commissioner of Customs.

    Approved: June 8, 1998.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 98-17815 Filed 7-2-98; 8:45 am]
BILLING CODE 4820-02-P