Federal Register / Vol. 66, No. 98 / Monday, May 21, 2001 / Notices 28029

calling the Treasury Bureau Clearance

Officer listed. Comments regarding this

information collection should be

addressed to the OMB reviewer listed

and to the Treasury Department

Clearance Officer, Department of the

Treasury, Room 2110, 1425 New York

Avenue, NW., Washington, DC 20220.

DATES: Written comments should be

received on or before June 20, 2001 to

be assured of consideration.

Internal Revenue Service (IRS)

OMB Number: 1545–1270.

Regulation Project Number: PS–66–93

and PS–120–90 Final.

Type of Review: Extension.

Title: Gasohol; Compressed Natural

Gas (PS–66–93); and Gasoline Excise

Tax (PS–120–90).

Description: PS–66–93: Buyers of

compressed natural gas for a non taxable

use must give a certificate. Persons who

pay a ‘‘first tax’’ on gasoline must file

a report.

PS–120–90: Gasoline refiners, traders,

terminal operators, chemical companies

a notify each other of their registration

status and/or use of product before

transactions may be made tax-free.

Respondents: Business or other forprofit, Not-for-profit institutions, Farms,

State, Local or Tribal Government.

Estimated Number of Respondents:

3,170.

Estimated Burden Hours Per

Respondents: 7 minutes.

Frequency of Response: On occasion,

Annually.

Estimated Total Reporting Burden:

371 hours.

OMB Number: 1545–1331.

Regulation Project Number: PS–55–89

Final.

Type of Review: Extension.

Title: General Asset Accounts Under

the Accelerated Cost Recovery System.

Description: The regulations describe

the time and manner of making the

election described in Internal Revenue

Code (IRC) section 168(i)(4). Basic

information regarding this election is

necessary to monitor compliance with

the rules in IRC section 168.

Respondents: Business or other forprofit, Farms.

Estimated Number of Respondents:

1,000.

Estimated Burden Hours Per

Respondents: 15 minutes.

Frequency of Response: Annually.

Estimated Total Reporting Burden:

250 hours.

OMB Number: 1545–1338.

Regulation Project Number: PS–103–

90 Final.

Type of Review: Extension.

Title: Election Out of Subchapter K for

Producers of Natural Gas.

Description: Under section 1.761–

2(d)(5)(i), gas producers subject to gas

balancing agreements on the

regulation’s effective date are to file

Form 3115 and certain additional

information to obtain the

Commissioner’s consent to a change in

method of accounting to either of the

two new permissible accounting

methods in the regulations.

Respondents: Business or other forprofit, Individuals or households.

Estimated Number of Respondents:

10.

Estimated Burden Hours Per

Respondents: 30 minutes.

Frequency of Response: Other (one

time only).

Estimated Total Reporting Burden: 5

hours.

OMB Number: 1545–1413.

Regulation Project Number: IA–30–95

Final.

Type of Review: Extension.

Title: Reporting of Nonpayroll

Withheld Tax Liabilities.

Description: These regulations

concern the Secretary’s authority to

require a return of tax under section

6011 and provide for the requirement of

a return by persons deducting and

withholding income tax from

‘‘Nonpayroll’’ payments.

Respondents: Business or other forprofit, Individuals or households, Notfor-profit institutions, Farms, Federal

Government, State, Local or Tribal

Government.

Estimated Number of Respondents: 1.

Estimated Burden Hours Per

Respondents: 1 hour.

Frequency of Response: Annually.

Estimated Total Reporting Burden: 1

hour.

OMB Number: 1545–1433.

Regulation Project Number: CO–11–

91 Final and CO–24–95 Final.

Type of Review: Extension.

Title: Consolidated Groups and

Controlled Groups-Intercompany

Transactions and Related Rules (CO–

11–91); and Consolidated GroupsIntercompany Transactions and Related

Rules (CO–24–95).

Description: The regulations require

common parents that make elections

under Section 1.1502–13 to provide

certain information. The information

will be used to identify and assure that

the amount, location, timing and

attributes of intercompany transactions

and corresponding items are properly

maintained.

Respondents: Business or other forprofit.

Estimated Number of Respondents/

Recordkeepers: 2,200.

Estimated Burden Hours Per

Respondent/Recordkeeper: 29 minutes.

Frequency of Response: On occasion.

Estimated Total Reporting/

Recordkeeping Burden: 1,050 hours.

Clearance Officer: Garrick Shear,

Internal Revenue Service, Room 5244,

1111 Constitution Avenue, NW.,

Washington, DC 20224.

OMB Reviewer: Alexander T. Hunt,

(202) 395–7860, Office of Management

and Budget, Room 10202, New

Executive Office Building, Washington,

DC 20503.

Mary A. Able,

Departmental Reports Management Officer.

[FR Doc. 01–12735 Filed 5–18–01; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF THE TREASURY

Customs Service

[T.D. 01–41]

Amendments to U.S. Customs

Mitigation Guidelines Pertaining to

Claims Arising From Foreign Trade

Zone Violations

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: General notice.

SUMMARY: This document revises the

‘‘Guidelines for Cancellation for

Liquidated Damages’’ which were

published in the Federal Register as

Treasury Decision 94–38 on April 14,

1994. This document revises the Section

IX portion of those Guidelines which

concerns claims arising from violations

of foreign trade zone regulations. New

provisions are added to that section of

the Guidelines allowing for cancellation

of claims arising from violations of

foreign trade zone regulations, under

certain conditions and limitations, in

instances in which the violator

voluntarily informs Customs of a

violation prior to Customs discovery of

the existence of that violation.

EFFECTIVE DATE: These guidelines will

take effect upon May 21, 2001, and shall

be applicable to all cases which are

currently open at the petition or

supplemental petition stage.

FOR FURTHER INFORMATION CONTACT:

Steven Bratcher, Penalties Branch,

Office of Regulations and Rulings, 202–

927–2328.

SUPPLEMENTARY INFORMATION:

Background

‘‘Guidelines for Cancellation of

Claims for Liquidated Damages’’ were

published in the Federal Register (59

FR 17830) on April 14, 1994, as

Treasury Decision 94–38. Section IX of

these guidelines is entitled ‘‘Guidelines

28030 Federal Register / Vol. 66, No. 98 / Monday, May 21, 2001 / Notices

for Cancellation of Claims Arising from

Violations of Foreign Trade Zone

Regulations (19 CFR part 146, 19 CFR

113.73).’’ In this document Customs is

revising the Section IX portion of the

‘‘Guidelines for Cancellation of Claims

for Liquidated Damages.’’ The revision

involves the addition of provisions

which allow for the cancellation of

claims arising from the violation of

foreign trade zone regulations, under

certain conditions and limitations, in

instances in which the violator

voluntarily informs Customs of a

violation prior to Customs discovery of

the existence of that same violation.

Foreign trade zone regulations are found

in part 146, Customs Regulations (19

CFR 146) and in 19 CFR 113.73.

This change to the Customs

guidelines with respect to violation of

foreign trade zones regulations has been

requested by members of the trade on

the basis that these provisions will

encourage self-policing of zone

operations. Members of the trade have

brought to Customs attention that

Treasury Decision 99–29 (published in

the Federal Register on March 26,

1999), which sets forth guidelines for

the cancellation of claims for liquidated

damages and mitigation of penalties for

various violations that are non-foreign

trade zone related, includes language

which allows for cancellation of claims

in instances in which the violator

voluntarily informs Customs of a

violation prior to Customs discovery of

the violation.

As Customs has adopted a clear

policy of encouraging self-policing by

importers and promoting importers’

voluntary compliance with Customs

rules and regulations, Customs believes,

in the interest of fairness, companies

operating in foreign trade zones should

obtain the same benefit for voluntary

compliance as do non-foreign trade zone

entities. Therefore, the guidelines for

cancellation of claims arising from

foreign trade zone regulations is revised

to allow for cancellation of claims when

the violator voluntarily informs

Customs of a violation prior to Customs

discovery of the violation. Two new

provisions are added to the end of

section C of the Guidelines and one new

provision is added to the end of section

D of the Guidelines.

The text of Section IX of the

‘‘Guidelines for Cancellation of Claims

for Liquidated Damages,’’ which was

published in the Federal Register (59

FR 17830) on April 14, 1994, is revised

as republished below.

Dated: May 15, 2001.

Charles W. Winwood,

Acting Commissioner of Customs.

IX. Guidelines for Cancellation of

Claims Arising From Violations of

Foreign Trade Zone Regulations (19

CFR Part 146, 19 CFR 113.73)

A. Defaults involving merchandise.

Defaults involving merchandise include

those violations relating to merchandise

which:

1. Cannot be located or accounted for

in the activated area of a foreign trade

zone.

2. Has been removed from the

activated area of the zone without a

proper Customs permit; or

3. Has been admitted, manipulated,

manufactured, exhibited or destroyed in

the activated area of a zone:

a. Without a proper Customs permit;

or

b. Not in accordance with the

description of the activity in the

Customs permit.

B. Defaults not involving

merchandise. Defaults not involving

merchandise means any instance of

failure, other than one involving

merchandise or late payment of the

annual fee, to comply with the laws or

regulations governing foreign trade

zones. A default involving one zone lot

or unique identifier may not be

combined with a default under another

lot or unique identifier.

C. Defaults involving merchandise;

petitions. Claims arising from defaults

involving merchandise should be

processed in accordance with the

following:

1. If the breach resulted from clerical

error or mistake (a non-negligent

inadvertent error), the claim should be

cancelled without payment.

2. If the breach resulted from

negligence, but no threat to the revenue

occurred (e.g., the merchandise was not

manipulated in accordance with the

permit to manipulate) the claim should

be cancelled upon payment of an

amount between one and 15 percent of

the value of the merchandise involved

in the breach, but not less than $100 nor

more than $10,000. If the merchandise

involved in the breach is restricted

merchandise, that shall be considered

an aggravating factor which shall result

in mitigation on the higher end of the

range. If the merchandise involved in

the breach is domestic status

merchandise, that shall be considered a

mitigating factor which shall result in

mitigation on the lower end of the

range.

3. If the breach resulted from

negligence and a potential loss of

revenue resulted (e.g., merchandise

cannot be located in the zone,

merchandise is removed from the zone

without a permit), the claim shall be

cancelled upon payment of an amount

between one and three times the loss of

revenue (loss of revenue to include

duties, fees and taxes). If the

merchandise involved in the breach is

restricted merchandise, the claim shall

be cancelled upon payment of an

amount between three and five times

the loss of revenue but in no case less

than 10 percent of the value of such

merchandise.

4. If the breach is intentional (e.g., the

foreign trade zone operator conspired to

remove merchandise from the

warehouse zone without proper entry

being made), there will be no relief

granted from liquidated damages.

5. Aggravating factors.

a. Principal’s failure or refusal to

cooperate with Customs.

b. Large number of violations

compared to number of transactions

handled.

c. Experience of principal.

d. Principal’s carelessness or willful

disregard toward its responsibilities.

6. Mitigating factors.

a. Contributory error by Customs.

b. Small number of violations

compared to number of transactions

handled.

c. Remedial action taken by principal.

d. Cooperation with Customs.

e. Lack of experience of principal.

f. Merchandise which cannot be

located or which has been removed

without permit is returned to Custom

custody.

g. The merchandise involved in the

breach is domestic status merchandise.

7. If the violator comes forward and

informs Customs of a violation, prior to

Customs discovery of the violation, the

claim for liquidated damages may be

cancelled, at the discretion of the

appropriate Customs officer, upon

payment of an amount equal to the

duties, fees, taxes and charges that

would have been due on the

merchandise had entry been properly

made, plus $50.

8. If the violator comes forward and

informs Customs of a violation, prior to

Customs discovery of the violation, and

the violation involves restricted

merchandise, then the claim for

liquidated damages may be cancelled, at

the discretion of the appropriate

Customs officer, upon payment of an

amount equal to the duties, fees, taxes

and charges that would have been due

on the merchandise had entry been

properly made, plus 5 percent of the

value of the merchandise, but not less

than $500. The kind and character of the

restriction will be considered before

relief under this provision is allowed.

Federal Register / Vol. 66, No. 98 / Monday, May 21, 2001 / Notices 28031

D. Defaults not involving

merchandise; modified CF 5955A.

Defaults not involving merchandise

shall be processed in accordance with

the following guidelines.

1. Modified CF 5955A. Notices of

liquidated damages incurred may be

issued on a modified CF 5955A. The

modified form shall specify two options

from which the petitioner may chose to

resolve the demand.

a. Option 1. He may pay a specified

sum within 60 days, and the case will

be closed. By electing this option in lieu

of petitioning, he waives his right to file

a petition. He may, however, file a

supplemental petition, if he does so in

accordance with the Customs

Regulations and has some new fact or

information which merits consideration

in accordance with these guidelines.

b. Option 2. Petition for relief. The

bond principal or surety may file a

petition for relief. By filing a petition for

relief, the petitioner will no longer be

afforded the Option 1 mitigation

amount. The port director shall grant

full relief when the petitioner

demonstrates that the violation did not

occur. If the petitioner fails to

demonstrate that the violation did not

occur, the port director may cancel the

claim upon payment of an amount no

less than $100 greater than the Option

1 amount.

2. Maximum assessments. In cases

involving violations which do not

involve merchandise which are assessed

at $1,000 for each business day that the

violation continues, a maximum of

$10,000 shall be assessed for any one

such continuing violation unless the

port director can articulate a legitimate

enforcement purpose for exceeding said

limit. These claims shall be cancelled in

conformance with the terms of these

guidelines.

3. Clerical error. If the breach resulted

from clerical error, the claim may be

cancelled without payment.

4. Negligence. If the breach resulted

from negligence, the claim may be

cancelled upon payment of an amount

between $100 and $250 per default

actually assessed, depending on the

presence of aggravating or mitigating

factors. For example, if a document is

filed 100 days late, Customs, by policy,

will generally limit the assessment to

$10,000. Mitigation will be based on the

$10,000 actual assessment and not relate

to the $100,000 potential assessment.

5. Intentional breach. If the breach

was intentional, no relief shall be

granted.

6. Violator disclosing violation before

Customs discovery. If the violator comes

forward and discloses the violation to

Customs prior to Customs discovery of

the violation, whether or not the

violation is a continuing one, the claim

for liquidated damages may be

cancelled, at the discretion of the

appropriate Customs officer, upon

payment of the amount of $50.

E. Cancellation of claims for late

payment of the annual fee.

1. If the late payment resulted from

clerical error or mistake, the claim may

be cancelled upon payment of the

amount due but not paid.

2. If the late payment resulted from

negligence, cancel the claim upon

payment of the amount due but not paid

plus the following percent of that

amount for each day payment is in

arrears:

a. First seven calendar days—not less

than one-third of one percent nor more

than three-fourths of one percent per

day.

b. Second seven calendar days—not

less than one and one-third percent nor

more than one and three-fourths percent

per day.

c. After the fourteenth calendar day—

not less than two and one-third percent

nor more than two and three-fourths

percent per day.

3. If the late payment was intentional,

no relief shall be granted.

[FR Doc. 01–12662 Filed 5–18–01; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

[INTL–29–91]

Proposed Collection; Comment

Request for Regulation Project

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice and request for

comments.

SUMMARY: The Department of the

Treasury, as part of its continuing effort

to reduce paperwork and respondent

burden, invites the general public and

other Federal agencies to take this

opportunity to comment on proposed

and/or continuing information

collections, as required by the

Paperwork Reduction Act of 1995,

Public Law 104–13 (44 U.S.C.

3506(c)(2)(A)). Currently, the IRS is

soliciting comments concerning an

existing final regulation, INTL–29–91

(TD 8556), Computation and

Characterization of Income and Earnings

and Profits Under the Dollar

Approximate Separate Transactions

Method of Accounting (DASTM)

(§ 1.985–3).

DATES: Written comments should be

received on or before July 20, 2001 to be

assured of consideration.

ADDRESSES: Direct all written comments

to Garrick R. Shear, Internal Revenue

Service, room 5244, 1111 Constitution

Avenue NW., Washington, DC 20224.

FOR FURTHER INFORMATION CONTACT:

Requests for additional information or

copies of the information collection

should be directed to Larnice Mack,

(202) 622–3179, Internal Revenue

Service, room 5244, 1111 Constitution

Avenue NW., Washington, DC 20224.

SUPPLEMENTARY INFORMATION:

Title: Computation and

Characterization of Income and Earnings

and Profits Under the Dollar

Approximate Separate Transactions

Method of Accounting (DASTM).

OMB Number: 1545–1051.

Regulation Project Number: INTL–29–

91.

Abstract: This regulation provides

that taxpayers operating in

hyperinflationary currencies must use

the United States dollar as their

functional currency and compute

income using the dollar approximate

separate transactions method (DASTM).

Small taxpayers may elect an alternate

method by which to compute income or

loss. For prior taxable years in which

income was computed using the profit

and loss method, taxpayers may elect to

recompute their income using DASTM.

Current Actions: There is no change to

this existing regulation.

Type of Review: Extension of a

currently approved collection.

Affected Public: Business or other forprofit organizations.

Estimated Number of Responses: 700.

Estimated Time Per Respondent: 1

hour, 26 minutes.

Estimated Total Annual Burden

Hours: 1,000.

The following paragraph applies to all

of the collections of information covered

by this notice:

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 OMB control number.

Books or records relating to a collection

of information must be retained as long

as their contents may become material

in the administration of any internal

revenue law. Generally, tax returns and

tax return information are confidential,

as required by 26 U.S.C. 6103.

Request for Comments

Comments submitted in response to

this notice will be summarized and/or

included in the request for OMB

approval. All comments will become a