[Federal Register Volume 60, Number 91 (Thursday, May 11, 1995)]
[Proposed Rules]
[Pages 25176-25178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11669]



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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 101


Customs Service Field Organization-San Jose, California

AGENCY: Customs Service, Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations 
pertaining to the field organization of the Customs Service by 
designating San Jose as a port of entry in the Customs District of San 
Francisco, California, of the Pacific Region. The change is being 
proposed as part of Customs continuing program to obtain more efficient 
use of its personnel, facilities, and resources, and to provide better 
service to carriers, importers and the general public.

DATES: Comments must be received on or before July 10, 1995.

ADDRESSES: Written comments (preferably in triplicate) may be submitted 
to the Regulations Branch, Office of Regulations and Rulings, U.S. 
Customs Service, 1301 Constitution Avenue NW., Washington, DC 20229. 
Comments submitted may be inspected at the Regulations Branch, Office 
of Regulations and Rulings, 1099 14th Street NW., Suite 4000, 
Washington, DC, on regular business days between the hours of 9 a.m. 
and 4:30 p.m.

FOR FURTHER INFORMATION CONTACT: Brad Lund, Office of Inspection and 
Control (202-927-0192).

SUPPLEMENTARY INFORMATION:

Background

    As part of a continuing program to obtain more efficient use of its 
personnel, facilities, and resources, and to provide better service to 
carriers, importers, and the general public, Customs is proposing to 
amend Secs. 101.3 and 101.4, Customs Regulations (19 CFR 101.3 and 
101.4) by designating a four county area surrounding San Jose, 
California, as a port of entry for Customs [[Page 25177]] purposes in 
the Customs District of San Francisco, California, within the Pacific 
Region. Part of this four county area, Monterey, is presently listed in 
Sec. 101.4(c), Customs Regulations, as a Customs station within the San 
Francisco District. San Jose is presently part of the port of entry of 
San Francisco.
    The city of San Jose, California, has requested designation of the 
four county area surrounding San Jose as a port of entry and has stated 
that the efficiency in having a port of entry located in San Jose would 
represent a considerable saving of time and cost for the business 
community. The city states that firms in the South Bay Area will 
benefit from the advantages of having their cargo cleared at the San 
Jose port of entry. It also anticipates that more cargo will be shipped 
to the area and that the result will be additional Customs revenue and 
increased Federal benefits.
    The request for designation has been concurred with by the 
Immigration and Naturalization Service of the Department of Justice and 
by the Animal and Plant Health Inspection Service of the Department of 
Agriculture. Various elected officials, local corporations and 
associations also support the request.
    The criteria used by Customs in determining whether to establish a 
port of entry are found in T.D. 82-37 (47 FR 10137), as revised by T. 
D. 86-14 (51 FR 4559) and T.D. 87-65 (52 FR 16328). Under these 
criteria, a community requesting a port of entry designation must: (1) 
Demonstrate that the benefits to be derived justify the Federal 
Government expense involved; (2) be serviced by at least two major 
modes of transportation (rail, air, water, or highway); (3) have a 
minimum population of 300,000 within the immediate service area 
(approximately a 70 mile radius); and (4) make a commitment to make 
optimal use of electronic data transfer capabilities to permit 
integration with Customs Automated Commercial System (ACS), which 
provides a means for the electronic processing of entries of imported 
merchandise. Further, the actual or potential Customs workload (i.e., 
number of transactions per year) at the proposed port of entry must 
meet one of several alternative minimum requirements, among which are 
15,000 passenger arrivals and 2500 consumption entries per year. 
Finally, facilities at the proposed port of entry must include cargo 
and passenger facilities, warehousing space for the secure storage of 
imported cargo pending final Customs inspection and release, and 
administrative office space, inspection areas, storage areas and other 
space necessary for regular Customs operations.
    San Jose International Airport is currently staffed by Customs on a 
rotational basis. If the port of entry is approved, the rotational 
positions currently assigned to San Jose will be converted to permanent 
positions. Any relocation costs will be paid out of COBRA funds.
    The request for port of entry status states that there will be 
several Federal Government benefits if the port of entry is approved. 
Approval will support the national goal of United States 
competitiveness by strengthening the economic competitiveness of one of 
the nation's most critical high technology areas. It will increase the 
efficiency of the regional Customs service by improving the 
distribution of entries which must be cleared through the San 
Francisco-Oakland port and the San Jose port. It will decrease 
congestion on the Bay Area's freeways due to shipments going directly 
to San Jose International Airport. Finally, it will further the Customs 
goal of increased automation, since San Jose International Airport has 
provided the equipment necessary to supply a fully automated, highly 
efficient Customs port.
    The proposed port of entry will be served by three major modes of 
transportation (air, rail and highway).
    The proposed port of entry has a population of 2,167,000.
    The City of San Jose has committed to the optimal use of electronic 
data input equipment and software to permit integration with any 
Customs system for electronic processing of commercial entries. San 
Jose International Airport has provided, at no cost to the Federal 
Government, computer equipment and systems which are needed to comply 
with the goals of the National Customs Automation Program.
    According to recent statistics, San Jose International Airport has 
an annual workload of 92,246 arriving international passengers and 4854 
formal entry releases, plus 2066 informal entry releases.
    Cargo and passenger facilities have been provided for Customs 
operations at San Jose International Airport. The Customs facility is a 
23,000 square foot modular facility in a secure portion of the airport. 
This facility provides the necessary administrative office space, 
inspection rooms and other space required for performing regular 
Customs operations.
    Based on the information provided above, Customs believes that San 
Jose meets the current standards for port of entry designations set 
forth in T. D. 82-37, as revised by T. D. 86-14 and T. D. 87-65.

Proposed Limits of Port of Entry

    The geographical limits of the proposed port of entry of San Jose 
would be as follows:


    All of Santa Clara, Santa Cruz, Monterey and San Benito Counties 
in the State of California.


    If the proposed port of entry designation is adopted, the lists of 
Customs regions, districts, ports of entry and stations in 19 CFR 
101.3(b) and 101.4(c) will be amended accordingly.

Comments

    Before adopting this proposal, 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), 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 a.m. 
and 4:30 p.m. at the Regulations Branch, Suite 4000, 1099 14th St. NW., 
Washington, D.C.

Authority

    This change is proposed under the authority of 5 U.S.C. 301 and 19 
U.S.C. 2, 66 and 1624.

The Regulatory Flexibility Act and Executive Order 12866

    Customs routinely establishes, expands, and consolidates Customs 
ports of entry throughout the United States to accommodate the volume 
of Customs-related activity in various parts of the country. Although 
this document is being issued for public comment, it is not subject to 
the notice and public procedure requirements of 5 U.S.C. 553 because it 
relates to agency management and organization. Accordingly, this 
document is not subject to the provisions of the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.). Agency organization matters such as this 
are exempt from consideration under Executive Order 12866.

Drafting Information

    The principal author of this document was Janet L. Johnson, 
Regulations Branch. However, personnel from other offices participated 
in its development. [[Page 25178]] 
    Approved: April 10, 1995.
William F. Riley,
Acting Commissioner of Customs.

John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 95-11669 Filed 5-10-95; 8:45 am]
BILLING CODE 4820-02-P