Federal Register / Vol. 66, No. 84 / Tuesday, May 1, 2001 / Proposed Rules 21705

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 4, 24, 101

RIN 1515–AC63

User and Navigation Fees; Other

Reimbursement Charges

AGENCY: Customs Service, Department

of the Treasury.

ACTION: Proposed rule.

SUMMARY: This document proposes to

amend the Customs Regulations

regarding the proper assessment of user

and navigation fees, as well as other

reimbursement charges for Customs

services performed in connection with,

among other things, the processing of

vehicles, vessels, aircraft and

merchandise arriving in the United

States. It is believed that the proposed

amendments would conform the

regulations with the intent of the

Customs user fee statute. The proposed

amendments also reflect existing

operational policy and administrative

practice in this area.

DATES: Comments must be received on

or before July 2, 2001.

ADDRESSES: Written comments may be

addressed to and inspected at the

Regulations Branch, U.S. Customs

Service, 1300 Pennsylvania Avenue,

NW., 3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT

Kimberly Nott, Office of Field

Operations, 202–927–1364.

SUPPLEMENTARY INFORMATION:

Background

The Customs user fee statute, codified

at 19 U.S.C. 58c, authorizes a schedule

of fees that are chargeable to users of

various services provided by Customs in

connection with the activities that are

listed in section 58c(a). Under the user

fee statute, in pertinent part, a fee is

charged to reimburse the Government

for Customs services that are provided,

among other things, for processing

certain vehicles, vessels, aircraft and

merchandise that arrive in the United

States. In particular, a user fee is

charged for Customs services that are

provided in connection with the arrival

of a commercial vessel of 100 net tons

or more (19 U.S.C. 58c(a)(1)), and in

connection with the arrival of a private

vessel or private aircraft (19 U.S.C.

58c(a)(4)).

Definition of Arrival for Purposes of the

User Fee Statute

For purposes of the applicability of a

user fee for providing Customs services

in connection with the arrival of a

vessel or aircraft as described above, the

statute generally defines the term

arrival’’ as being an arrival that occurs

within a port of entry in the Customs

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

58c(c)(2)). Each Customs port of entry

has specific geographical limits that are

defined by regulation (19 CFR 101.3(b)).

Section 58c is implemented by

§ 24.22, Customs Regulations (19 CFR

24.22). Section 24.22(a)(2), however,

defines the term arrival’’ as being an

arrival within a Customs port of entry or

any place serviced by any such port.

Customs has concluded that this

definition of arrival is overbroad and

conflicts with a more suitable definition

of arrival in section 58c, which, on its

face, clearly does not mean to require

the assessment of a user fee at every

location serviced by Customs.

Accordingly, Customs proposes to

amend § 24.22(a)(2) to define an arrival

as occurring at any place within the

limits of a Customs port of entry or at

a designated Customs station. A

Customs station is any place other than

a port of entry where Customs officers

or employees are lawfully stationed to

enter and clear vessels, accept entries of

merchandise, collect duties, and enforce

the various provisions of the Customs

and navigation laws of the United States

(19 CFR 101.1). However, under the

proposed amendment, for purposes of

the applicability of user fees in

accordance with 19 U.S.C. 58c(c)(2), a

Customs station would essentially be

considered as the functional equivalent

of a Customs port of entry. The

definition of ‘‘Customs station’’ in

§ 101.1, Customs Regulations (19 CFR

101.1) would be amended to conform

with this.

A list of places that have been

designated as Customs stations appears

in § 101.4(c), Customs Regulations (19

CFR 101.4(c)); also, Customs stations

may be temporarily designated as such

by the port director as provided in

§ 101.4(d), Customs Regulations (19 CFR

101.4(d)).

Customs believes that the definition

of arrival in proposed § 24.22(a)(2)

would conform with the intent of the

user fee statute. Moreover, it reflects

existing Customs operational policy and

administrative practice in this area.

Further, the definition would simplify

the collection of user fees by listing the

specific locations where only these fees

are applicable and must be assessed for

Customs services.

In this latter respect, where user fees

are assessed under section 58c, the law

is quite clear that no charges other than

user fees may be collected to reimburse

the Government for any cargo

inspection, clearance, or other Customs

activity, expense or service performed

(even on an overtime basis); or for any

Customs personnel provided in

connection with the arrival or departure

of a commercial vessel, or its

passengers, crew, stores, material, or

cargo, for the United States (19 U.S.C.

58c(e)(6)(A)(i) and (ii)).

User Fees, Navigation Fees, Other

Reimbursement Charges; Arrival of

Commercial Vessel

In cases where Customs user fees do

not apply, the cost of Customs services

is reimbursable to the Government

under the circumstances and to the

extent otherwise specifically authorized

in the law. The specific circumstances

where the cost of Customs services

would be otherwise reimbursable to the

Government are described in § 24.17,

Customs Regulations (19 CFR 24.17).

Furthermore, certain navigation fees for

vessels, as listed in § 4.98, Customs

Regulations (19 CFR 4.98), may be

assessed as well, to the extent they are

also applicable (19 CFR 24.21(b)(1)).

The services listed in § 4.98(a)(1) for

which a navigation fee is applicable

relate to the arrival of any vessel.

However, § 4.98(a) would conflict with

proposed § 24.22(a)(2), and with the

user fee statute, insofar as it also

requires the collection of a navigation

fee for Customs services that are

provided in connection with the arrival

of a commercial vessel of 100 net tons

or more or any private vessel in a

Customs port of entry or a designated

Customs station where, as already

mentioned, a user fee would apply (19

U.S.C. 58c(a)(1)). The user fee would of

course include Customs services as

enumerated in § 4.98(a)(1). Accordingly,

it is proposed to amend the introductory

text of paragraph (a)(1) in § 4.98 to

exclude the assessment of navigation

fees on commercial vessels of 100 net

tons or more and on any private vessels

that arrive within a Customs port of

entry or a designated Customs station,

where user fees would apply to these

vessels.

In addition, § 24.17(a)(4), Customs

Regulations (19 CFR 24.17(a)(4)),

currently requires that the owner,

master, or agent of a vessel sought to be

entered must reimburse the Government

for the salary and expenses of any

Customs officer or employee stationed

at or sent to a designated Customs

station or any other place that is not a

port of entry for services rendered in

connection with the entry or clearance

of the vessel.

As such, § 24.17(a)(4) would also be

in conflict with the definition of arrival

in proposed § 24.22(a)(2), and with the

21706 Federal Register / Vol. 66, No. 84 / Tuesday, May 1, 2001 / Proposed Rules

user fee statute, to the extent that it

requires reimbursement other than user

fees at a designated Customs station.

Accordingly, it is proposed to revise

§ 24.17(a)(4) to require reimbursement

for services afforded by Customs at any

place that is not a port of entry or a

designated Customs station. For the

same reason, §§ 24.17(a)(5) and

101.4(b)(3) would be similarly revised.

User Fees, Other Reimbursement

Charges; Arrival of Private Vessel or

Private Aircraft

Section 58c(a)(4), as noted, provides

for an annual user fee to cover Customs

services that must be furnished in

processing the arrival of a private vessel

or private aircraft. Section 24.22(e)(1),

which implements this provision,

requires, however, that, notwithstanding

payment of the user fee under section

58c, all overtime charges provided for

Customs services remain payable as

well. Again, as previously discussed,

the user fee statute precludes the

assessment of other charges, including

charges for overtime services, where

user fees are applicable (19 U.S.C.

58c(e)(6)(A)(i)). Accordingly, it is

proposed to amend § 24.22(e)(1) by

removing the provision allowing for the

collection of overtime charges.

Comments

Before adopting this proposal as a

final rule, consideration will be given to

any written comments that are timely

submitted to Customs. Customs

specifically requests comments on the

clarity of this proposed rule and how it

may be made easier to understand.

Comments submitted will be available

for public inspection in accordance with

the Freedom of Information Act (5

U.S.C. 552), § 1.4, Treasury Department

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 Regulations Branch, U.S.

Customs Service, 1300 Pennsylvania

Avenue, NW., 3rd Floor, Washington,

DC.

Regulatory Flexibility Act and

Executive Order 12866

The proposed amendments are

intended to conform with statutory law,

reflect existing Customs operational

policy and administrative practice, and

simplify the collection of user fees by

listing the specific locations where only

these fees are applicable and must be

assessed for Customs services.

Accordingly, it is certified, in

accordance with the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.),

that, if adopted, the proposed rule will

not have a significant economic impact

on a substantial number of small

entities. Nor do the proposed

amendments meet the criteria for a

‘‘significant regulatory action’’ under

E.O. 12866.

List of Subjects

19 CFR Part 4

Arrival, Cargo vessels, Common

carriers, Customs duties and inspection,

Entry, Fees, Fishing vessels, Freight,

Harbors, Imports, Landing, Maritime

carriers, Merchandise, Passenger

vessels, Reporting and recordkeeping

requirements, Shipping, Vessels.

19 CFR Part 24

Customs duties and inspection, Fees,

Harbors, Reporting and recordkeeping

requirements, User fees.

19 CFR Part 101

Customs duties and inspection,

Customs ports of entry, Harbors,

Reporting and recordkeeping

requirements, User fees.

Proposed Amendments to the

Regulations

It is proposed that parts 4, 24, and

101, Customs Regulations (19 CFR parts

4, 24, and 101) be amended as set forth

below.

PART 4—VESSELS IN FOREIGN AND

DOMESTIC TRADES

1. The general authority citation for

part 4 would continue to read as

follows, and the specific authority

citation for § 4.98 would be revised to

read as follows:

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

1431, 1433, 1434, 1624; 46 U.S.C. App. 3, 91;

* * * * *

Section 4.98 also issued under 19

U.S.C. 58a;

* * * * *

2. It is proposed to amend § 4.98 by

revising the introductory text of

paragraph (a)(1) to read as follows:

§ 4.98 Navigation fees.

(a)(1) The Customs Service will

publish a General Notice in the Federal

Register and Customs Bulletin

periodically, setting forth a revised

schedule of navigation fees for the

following services provided to

commercial vessels of 100 net tons or

more and any private vessels that arrive

at a place other than a Customs port of

entry or a designated Customs station

and to commercial vessels of less than

100 net tons that arrive anywhere in the

United States, including a Customs port

of entry or a designated Customs station:

* * * * *

PART 24—CUSTOMS FINANCIAL AND

ACCOUNTING PROCEDURE

1. The general and relevant specific

authority citations for part 24 would

continue to read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 58a–58c,

66, 1202 (General Note 20, Harmonized Tariff

Schedule of the United States), 1505, 1624;

26 U.S.C. 4461, 4462; 31 U.S.C. 9701.

* * * * *

Section 24.17 also issued under 19

U.S.C. 261, 267, 1450, 1451, 1452, 1456,

1524, 1557, 1562; 46 U.S.C. 2110, 2111,

2112 ;

* * * * *

2. It is proposed to amend § 24.17 by

revising the first sentence of paragraph

(a)(4) and by revising paragraph (a)(5) to

read as follows:

§ 24.17 Reimbursable services of Customs

employees.

(a) * * *

(4) When a Customs employee is

assigned pursuant to § 101.4 of this

chapter to a place which is not a port

of entry or a designated Customs station

for service in connection with the entry

or clearance of a vessel, the owner,

master, or agent of the vessel will be

charged the full compensation and

authorized travel and subsistence

expenses of such employee from the

time he leaves his official station until

he returns. * * *

(5) When a Customs employee is

assigned under the authority of section

447, Tariff Act of 1930, to make entry

of a vessel at a place other than a port

of entry or designated Customs station

or to supervise the unlading of cargo,

the private interest will be charged the

full compensation and authorized travel

and subsistence expenses of such

employee from the time he leaves his

official station until he returns.

* * * * *

3. It is proposed to amend § 24.22 by

revising paragraph (a)(2) to read as set

forth below; and by removing the last

sentence of paragraph (e)(1):

§ 24.22 Fees for certain services.

(a) Definitions. ***

* * * * *

(2) The term arrival means arrival at

any place within the limits of a port of

entry in the Customs territory of the

United States, at any designated

Customs station as listed in § 101.4(c) of

this chapter, or at any temporary

Customs station designated by the port

director under § 101.4(d) of this chapter.

* * * * *

Federal Register / Vol. 66, No. 84 / Tuesday, May 1, 2001 / Proposed Rules 21707

PART 101—GENERAL PROVISIONS

1. The general and relevant specific

sectional authority citations for part 101

would continue to read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66,

1202 (General Note 20, Harmonized Tariff

Schedule of the United States), 1623, 1624,

1646a.

Sections 101.3 and 101.4 also issued

under 19 U.S.C. 1 and 58b;

* * * * *

2. It is proposed to amend § 101.1 by

revising the definition for ‘‘Customs

station’’ to read as follows:

§ 101.1 Definitions.

* * * * *

Customs station. Other than for

purposes of assessing user fees under 19

U.S.C. 58c where a ‘‘Customs station’’ is

the functional equivalent of a port of

entry, a ‘‘Customs station’’ is any place,

other than a port of entry, at which

Customs officers or employees are

stationed, under the authority contained

in article IX of the President’s Message

of March 3, 1913 (T.D. 33249), to enter

and clear vessels, accept entries of

merchandise, collect duties, and enforce

the various provisions of the Customs

and navigation laws of the United

States.

* * * * *

3. It is proposed to amend § 101.4 by

revising the section heading, paragraph

(b), introductory text, and paragraph

(b)(3) to read as follows:

§ 101.4 Entry and clearance of vessels at

Customs stations and places other than a

port of entry.

* * * * *

(b) Authorization to enter.

Authorization to enter or be cleared at

a Customs station, or any other place

that is not a port of entry, will be

granted by the director of the port under

whose jurisdiction the station or place

falls provided the port director is

notified in advance of the arrival of the

vessel concerned and the following

conditions are met:

* * * * *

(3) The owner, master, or agent of a

vessel sought to be entered at a place

other than a port of entry or designated

Customs station reimburses the

Government for the salary and expenses

of the Customs officer or employee

stationed at or sent to such other place

which is not a port of entry or a

designated Customs station for services

rendered in connection with the entry

or clearance of the vessel, and

* * * * *

Raymond W. Kelly,

Commissioner of Customs.

Approved: October 26, 2000.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 01–10718 Filed 4–30–01; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and

Firearms

27 CFR Part 9

[Notice No. 916]

RIN 1512–AA07

Proposed Rockpile Viticultural Area

(2000R–436P)

AGENCY: Bureau of Alcohol, Tobacco

and Firearms (ATF), Department of the

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Bureau of Alcohol,

Tobacco and Firearms (ATF) has

received a petition proposing the

establishment of a viticultural area

located in northwest Sonoma County,

California. The proposed Rockpile

viticultural area would consist of

approximately 14,000 acres of land

which the petitioner states is at or above

the 800′ elevation, includes areas of

small rock and gravel mixed in the

topsoil, some with outcroppings of

larger rock, and growing conditions

favorable for commercial wine grapes.

DATES: Written comments must be

received by July 2, 2001.

ADDRESSES: Send written comments to:

Chief, Regulations Division, Bureau of

Alcohol, Tobacco and Firearms, P.O.

Box 50221, Washington, DC 20091–0221

(Attn: Notice No. 916). Copies of the

petition, the proposed regulations, the

appropriate maps, and any written

comments received will be available for

public inspection during normal

business hours at the ATF Reading

Room, Office of Public Affairs and

Disclosure, Room 6480, 650

Massachusetts Avenue, NW.,

Washington, DC 20226. Submit e-mail

comments to: nprm@atfhq.atf.treas.gov.

E-mail comments must contain your

name, mailing address, and e-mail

address. They must also reference this

notice number and be legible when

printed on not more than three pages

81⁄2′′ x 11′′ in size. We will treat e-mail

as originals and we will not

acknowledge receipt of e-mail. See

Public Participation section of this

notice for alternative means of

commenting.

FOR FURTHER INFORMATION CONTACT: N.A.

Sutton, Specialist, Regulations Division

(San Francisco, CA), Bureau of Alcohol,

Tobacco and Firearms, 221 Main Street,

11th Floor, San Francisco, CA (415)

744–7011.

SUPPLEMENTARY INFORMATION:

Background

On August 23, 1978, ATF published

Treasury Decision ATF–53 (43 FR

37672, 54624) revising regulations in 27

CFR Part 4. These regulations allow the

establishment of definitive viticultural

areas. The regulations allow the name of

an approved viticultural area to be used

as an appellation of origin on wine

labels and in wine advertisements. On

October 2, 1979, ATF published

Treasury Decision ATF–60 (44 FR

56692) which added a new Part 9 to 27

CFR, for the listing of approved

American viticultural areas, the names

of which may be used as appellations of

origin.

27 CFR 4.25(e)(1) defines an

American viticultural area as a

delimited grape-growing region

distinguishable by geographic features,

the boundaries of which have been

delineated in Subpart C of Part 9.

Section 4.25a(e)(2) outlines the

procedure for proposing an American

viticultural area. Any interested person

may petition ATF to establish a grapegrowing region as a viticultural area.

The petition should include:

(a) Evidence that the name of the

proposed viticultural area is locally

and/or nationally known as referring to

the area specified in the petition;

(b) Historical or current evidence that

the boundaries of the viticultural area

are as specified in the petition;

(c) Evidence relating to the

geographical characteristics (climate,

soil, elevation, physical features, etc.)

which distinguish the viticultural

features of the proposed area from

surrounding areas;

(d) A description of the specific

boundaries of the viticultural area,

based on features which can be found

on United States Geological Survey

(U.S.G.S.) maps of the largest applicable

scale; and

(e) A copy (or copies) of the

appropriate U.S.G.S. map(s) with the

boundaries prominently marked.

Petition

The Bureau of Alcohol, Tobacco and

Firearms (ATF) has received a petition

proposing a new viticultural area to be