21778 Federal Register / Vol. 60, No. 85 / Wednesday, May 3, 1995 / Proposed Rules

Athens, GA; INT Athens 340° and Harris, GA,

148° radials; Harris; Volunteer, TN.

* * * * *

V–437 (Revised)

From Dolphin, FL; INT Dolphin

354°T(358°M) and Pahokee, FL, 157° radials;

Pahokee; Melbourne, FL; INT Melbourne

322° and Ormond Beach, FL, 211° radials;

Ormond Beach; Savannah, GA; Charleston,

SC; Florence, SC. The airspace within R–

2935 is excluded.

* * * * *

V–511 (Revised)

From Lakeland, FL; INT Lakeland 140° and

Dolphin, FL, 331°T(335°M) radials; Dolphin.

* * * * *

V–521 (Revised)

From Dolphin, FL; INT Dolphin

318°T(322°M) and Lee County, FL, 099°

radials; Lee County; INT Lee County 014°

and Lakeland, FL, 154° radials; Lakeland;

Cross City, FL; INT Cross City 287° and

Marianna, FL, 141° radials; Marianna;

Wiregrass, AL; INT Wiregrass 333° and

Montgomery, AL, 129° radials; Montgomery;

INT Montgomery 357° and Vulcan, AL, 139°

radials; Vulcan.

* * * * *

V–599 (Revised)

From Lee County, FL; INT Lee County

083°T(085°M) and Dolphin, FL,

331°T(335°M) radials; Dolphin.

* * * * *

V–601 (New)

From Pahokee, FL; INT Pahokee

212°T(212°M) and Marathon, FL;

354°T(357°M) radials; Marathon.

* * * * *

Issued in Washington, DC, on April 24,

1995.

Harold W. Becker,

Manager, Airspace-Rules and Aeronautical

Information Division.

[FR Doc. 95–10775 Filed 5–2–95; 8:45 am]

BILLING CODE 4910–13–P

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 162

RIN 1515–AB62

Seizure of Merchandise

AGENCY: Customs Service, Department

of the Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: In this document, Customs is

proposing to amend its regulations in

response to enactment of the Customs

Modernization Act (‘‘The Mod Act’’).

Among its other provisions, the Mod

Act amended Section 596(c) of the Tariff

Act of 1930 (19 U.S.C. 1595a(c)) to

clarify and codify Customs authority to

seize and forfeit merchandise

introduced or attempted to be

introduced into the United States

contrary to law. The Mod Act

distinguishes between circumstances

under which seizure of such

merchandise is mandatory and those in

which it is permissive. The proposed

amendment follows the legislation and

specifies the circumstances under

which the mandatory and permissive

seizures may take place. The proposed

amendment also contains provisions for

the detention of merchandise and the

remission of articles subject to seizure

and forfeiture.

DATES: Comments must be received on

or before July 3, 1995.

ADDRESSES: Comments (preferably in

triplicate) may be submitted to the

Regulations Branch, Office of

Regulations and Rulings, U.S. Customs

Service, Franklin Court, 1301

Constitution Avenue, NW., Washington,

DC 20229, and may be inspected at

Franklin Court, 1099 14th Street NW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Todd Schneider, Penalties Branch (202)

482–6950.

SUPPLEMENTARY INFORMATION:

Background

On December 8, 1993, the President

signed the North American Free Trade

Agreement Implementation Act (Pub. L.

103–182). The Customs Modernization

portion of this Act (Title VI), popularly

known as the Customs Modernization

Act, or ‘‘the Mod Act’’ became effective

when it was signed. Section 624 of Title

VI amended section 596(c) of the Tariff

Act of 1930 (19 U.S.C. 1595a(c)) to

codify and clarify the circumstances

under which merchandise may be

seized and forfeited by Customs.

Customs is now proposing to amend its

regulations so that they will conform to

the amended statute.

The Mod Act amendments to section

1595a(c) provide that merchandise

which is introduced or attempted to be

introduced into the United States

contrary to law shall be treated in two

different manners depending upon the

circumstances of the introduction or

attempted introduction. In instances

where the merchandise is stolen,

smuggled, or clandestinely imported or

introduced or is a controlled substance

or contraband article, seizure is

mandatory.

Paragraph (a) of the proposed

amendment addresses conditions where

seizure is mandatory.

Paragraph (b) of the proposed

amendment covers those situations in

which seizure is permissive. Seizure is

permissive in instances where the

merchandise is subject to health, safety

or conservation restrictions which have

not been complied with; when licenses,

permits or other authorizations of a U.S.

Government agency are required but do

not accompany the merchandise; when

copyright, trademark, or trade name

violations are involved; when trade

dress merchandise involved is in

violation of a court order citing section

43 of the Act of July 5, 1946 (15 U.S.C.

1125); and when the merchandise is

marked intentionally in violation of

section 304, Tariff Act of 1930 (19

U.S.C. 1304). The legislation also

provides that merchandise may be

seized if it is merchandise for which the

importer has received written notices

that previous importations of identical

merchandise from the same supplier

were found to have been marked in

violation of section 304, Tariff Act of

1930 (19 U.S.C. 1304).

Paragraph (c) of the proposed

amendment provides instructions on

procedures which Customs will follow

in resolving questions which result from

seizures which have been made under

section 1595a(c).

Paragraph (d) of the proposed

amendment contains language

specifying that merchandise which is

misclassified or incorrectly valued,

where there is no issue of admissibility,

will be subject to seizure only under

section 1592.

The Mod Act also provides that

merchandise which is subject to

quantitative restrictions requiring a visa,

permit, license or other similar

document from the United States

Government or a foreign government or

issuing authority pursuant to a bilateral

or multilateral agreement shall be

subject to detention until the

appropriate visa, license, permit or

similar document or stamp is presented

to Customs. However, if the visa,

license, permit, or similar document or

stamp is counterfeit as presented, the

merchandise may be seized. This

provision is contained in paragraph (e)

of the proposed amendment.

Comments

Before adopting the proposed

amendment, consideration will be given

to any written comments 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), § 1.4, Treasury Regulations (31

CFR 1.4), and § 103.11(b), Customs

Regulations (19 CFR 103.11(b)), on

regular business days between the hours

of 9 a.m. and 4:30 p.m. at the
Federal Register / Vol. 60, No. 85 / Wednesday, May 3, 1995 / Proposed Rules 21779

Regulations Branch, 1099 14th Street

NW., Suite 4000, Washington, DC.

Regulatory Flexibility Act

Because the proposed regulations

closely follow legislative requirements,

pursuant to the provisions of the

Regulatory Flexibility Act (5 U.S.C. 601,

et seq.), it is certified that the proposed

regulations, if adopted, 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.

Executive Order 12866

This amendment does not meet the

criteria for a ‘‘significant regulatory

action’’ as specified in E.O. 12866.

Drafting Information

The principal author of this document

was Peter T. Lynch, Regulations Branch,

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 162

Customs duties and inspection, Law

enforcement, Seizures and forfeitures.

Proposed Amendment

It is proposed to amend Part 162,

Customs Regulations (19 CFR part 162)

as set forth below:

PART 162—RECORDKEEPING,

INSPECTION, SEARCH, AND SEIZURE

1. The authority citation for part 162

would be revised in part to read as

follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66,

1624.

* * * * *

Section 162.23 also issued under 19 U.S.C.

1595a(c).

* * * * *

2. In part 162, a new § 162.23 is added

to read as follows:

§ 162.23 Seizure under section 596(c),

Tariff Act of 1930, as amended (19 U.S.C.

1595a(c)).

(a) Mandatory seizures. The

following, if introduced or attempted to

be introduced into the United States

contrary to law, shall be seized pursuant

to section 596(c), Tariff Act of 1930, as

amended (19 U.S.C. 1595a(c)):

(1) Merchandise that is stolen,

smuggled, or clandestinely imported or

introduced;

(2) A controlled substance, as defined

in the Controlled Substance Act (21

U.S.C. 801 et seq.), not imported in

accordance with law; or

(3) A contraband article, as defined in

section 1 of the Act of August 9, 1939

(49 U.S.C. App. 781).

(b) Permissive seizures. The following,

if introduced or attempted to be

introduced into the United States

contrary to law, may be seized pursuant

to section 596(c), Tariff Act of 1930, as

amended (19 U.S.C. 1595a(c)):

(1) Merchandise, the importation or

entry of which is subject to any

restriction or prohibition imposed by

law relating to health, safety, or

conservation, and which is not in

compliance with the applicable rule,

regulation or statute;

(2) Merchandise the importation or

entry of which requires a license, permit

or other authorization of a United States

Government agency, and which is not

accompanied by such license, permit or

authorization;

(3) Merchandise or packaging in

which copyright, trademark or trade

name protection violations are involved

(including, but not limited to, a

violation of sections 42, 43 or 45 of the

Act of July 5, 1946 (15 U.S.C. 1124, 1125

or 1127), sections 506 or 509 of title 17,

United States Code, or sections 2318 or

2320 of title 18, United States Code);

(4) Trade dress merchandise involved

in the violation of a court order citing

section 43 of the Act of July 5, 1946 (15

U.S.C. 1125);

(5) Merchandise marked intentionally

in violation of 19 U.S.C. 1304;

(6) Merchandise for which the

importer has received written notices

that previous importations of identical

merchandise from the same supplier

were found to have been in violation of

19 U.S.C. 1304; or

(7) Merchandise subject to

quantitative restrictions, found to bear a

counterfeit visa, permit, license, or

similar document, or stamp from the

United States or from a foreign

government or issuing authority

pursuant to a multilateral or bilateral

agreement (but see paragraph (e), of this

section).

(c) Resolution of seizure under section

1595a(c). When merchandise is either

required or authorized to be seized

under this section, the forfeiture

incurred may be remitted in accord with

19 U.S.C. 1618, to include as a possible

option the exportation of the

merchandise under such conditions as

Customs shall impose, unless its release

would adversely affect health, safety, or

conservation, or be in contravention of

a bilateral or multilateral agreement or

treaty.

(d) Seizure under 19 U.S.C. 1592. If

merchandise is imported, introduced or

attempted to be introduced contrary to

a provision of law governing its

classification or value, and there is no

issue of admissibility, such merchandise

shall not be seized pursuant to 19 U.S.C.

1595a(c). Any seizure of such

merchandise shall be in accordance

with section 1592 (see § 162.75).

(e) Detention only. Merchandise

subject to quantitative restrictions

requiring a visa, permit, license, or other

similar document, or stamp from the

United States Government or from a

foreign government or issuing authority

pursuant to a bilateral or multilateral

agreement, shall be subject to detention

in accordance with 19 U.S.C. 1499,

unless the appropriate visa, permit,

license, or similar document, or stamp

is presented to Customs (but see

paragraph (b)(7) of this section for

instances when seizure may occur).

Michael H. Lane,

Acting Commissioner of Customs.

Approved: April 5, 1995.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 95–10855 Filed 5–2–95; 8:45 am]

BILLING CODE 4820–02–P

Internal Revenue Service

26 CFR Part 1

[FI–42–94]

RIN 1545–AS85

Mark to Market for Dealers in

Securities; Hearing Cancellation

AGENCY: Internal Revenue Service,

Treasury.

ACTION: Cancellation of notice of public

hearing on proposed regulations.

SUMMARY: This document provides

notice of cancellation of a public

hearing on proposed regulations relating

to the mark-to-market method of

accounting for securities that is required

to be used by a dealer in securities.

DATES: The public hearing originally

scheduled for Wednesday, May 3, 1995,

beginning at 10:00 a.m. is cancelled.

FOR FURTHER INFORMATION CONTACT :

Mike Slaughter of the Regulations Unit,

Assistant Chief Counsel (Corporate),

(202) 622–7190, (not a toll-free number).

SUPPLEMENTARY INFORMATION: The

subject of the public hearing is proposed

regulations under section 475 of the

Internal Revenue Code. A notice of

proposed rulemaking and notice of

public hearing appearing in the Federal

Register for Wednesday, January 4, 1995

(60 FR 397), announced that the public

hearing on proposed regulations under

section 475 of the Internal Revenue

Code would be held on Wednesday,