Federal Register / Vol. 60, No. 249 / Thursday, December 28, 1995 / Rules and Regulations 67057

The proposal set forth representations

to Customs that the greater metropolitan

areas of Sioux Falls has a population of

139,236 based on 1990 census figures

and that a population of well over

300,000 exists within a 70-mile radius

of Sioux Falls. It was projected that

existing businesses would file between

2,709 and 3,253 import entries within

the proposed port of entry in the years

1996 through 1998, with no single

company accounting for more than half

of the projected entries. It was further

stated in the request for a port of entry

that the Sioux Falls Regional Airport

Authority is committed to making

optimal use of electronic date transfer

capability to permit integration with the

Customs Automated Commercial

System for processing entries. Regarding

the Joe Foss Field airport, it was stated

the airport has exceptional cargo and

passenger facilities, that passenger areas

can be secured to accommodate

international arrival passenger

clearance, and that there are several

warehouse facilities in close proximity

to the airport that are suitable for the

secure storage of cargo pending

inspection and release by Customs.

Further, the Sioux Falls Regional

Airport Authority committed to

providing certain space and equipment

to Customs.

Based on the information provided to

Customs, the proposal set forth Customs

belief that Sioux Falls meets the current

minimum criteria for port of entry

designation set forth in T.D. 82–37 (47

FR 10137), as revised by T.D. 86–14 (51

FR 4559) and by T.D. 87–65 (52 FR

16328).

Determination

No comments were received in

response to the proposal. After further

review and consideration by Customs, it

has been determined to establish Sioux

Falls as a port of entry with port limits

as described below. Section 101.3 is

amended accordingly. It is noted,

however, that because the

representations set forth in the proposal

rely on potential, rather than actual,

workload figures, Customs will in 3

years review the actual workload

generated within the port of Sioux Falls

to evaluate whether Sioux Falls may

retain port of entry status. If that review

indicates that the actual workload is

below the standard set forth in T.D. 82–

37, as revised, procedures will be

instituted to revoke port of entry status.

Of course, if port of entry status is

revoked, the City of Sioux Falls will

have the opportunity to apply for user

fee airport status under 19 U.S.C. 58b.

Limits of Port of Entry

The geographical limits of the port of

entry of Sioux Falls are as follows:

All of Minnehaha and Lincoln

Counties in the State of South Dakota.

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

was 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.

List of Subjects in 19 CFR Part 101

Customs duties and inspection,

Harbors, Organization and functions

(Government agencies), Seals and

insignia, Vessels.

Amendments to the Regulations

For the reason set forth in the

preamble, part 101 of the Customs

Regulations is amended as set forth

below:

PART 101—GENERAL PROVISIONS

1. The general authority citation for

part 101 and specific authority citation

for § 101.3 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.

Sections 101.3 and 101.4 also issued under

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

* * * * *

2. Section 101.3(b)(1) is amended by

adding the following entry in

appropriate alphabetical order:

§ 101.3 Customs service ports and ports

of entry.

* * * * *

(b) * * *

(1) * * *

Ports of entry Limits of

port

* * * * *

South Dakota

Sioux Falls .................................. T. D. 96–3

* * * * *

Approved: December 1, 1995.

George J. Weise,

Commissioner of Customs.

Dennis M. O’Connell,

Acting Deputy Assistant Secretary of the

Treasury.

[FR Doc. 95–31324 Filed 12–27–95; 8:45 am]

BILLING CODE 4820–02–P

19 CFR Part 162

[T.D. 96–2]

RIN 1515–AB62

Seizure of Merchandise

AGENCY: Customs Service, Treasury.

ACTION: Final rule.

SUMMARY: In this document, Customs is

amending 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 amendment

follows the legislation and specifies the

circumstances under which the

mandatory and permissive seizures may

take place. The amendment also

contains provisions for the detention of

merchandise and the remission of

articles subject to seizure and forfeiture.

EFFECTIVE DATE: January 29, 1996.

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.

On May 3, 1995, Customs published

a Notice of Proposed Rulemaking in the

Federal Register (60 FR 21788), which

proposed amending the Customs

Regulations to reflect these statutory
67058 Federal Register / Vol. 60, No. 249 / Thursday, December 28, 1995 / Rules and Regulations

changes. Because no comments were

received in response to the Notice of

Proposed Rulemaking, Customs is now

amending its regulations as proposed.

The Mod Act amendments to

§ 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 amendment

addresses conditions where seizure is

mandatory.

Paragraph (b) of the 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 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 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 amendment.

Regulatory Flexibility Act

Insofar as the regulations closely

follow legislative direction, pursuant to

the provisions of the Regulatory

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

is certified that the amendment 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.

Amendment

Section 162, Customs Regulations (19

CFR Part 162) is amended as set forth

below:

PART 162—RECORDKEEPING,

INSPECTION, SEARCH, AND SEIZURE

1. The general authority citation for

Part 162 is revised and a new specific

cite for § 162.23 is added 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 section 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. 80302).

(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

§ 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.
Federal Register / Vol. 60, No. 249 / Thursday, December 28, 1995 / Rules and Regulations 67059

(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 of this

chapter).

(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).

George J. Weise,

Commissioner of Customs.

Approved: November 29, 1995.

Dennis M. O’Connell,

Acting Deputy Assistant Secretary of the

Treasury.

[FR Doc. 95–31325 Filed 12–27–95; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Part 706

Certifications and Exemptions Under

the International Regulations for

Preventing Collisions at Sea, 1972;

Amendment

AGENCY: Department of the Navy, DOD.

ACTION: Final Rule.

SUMMARY: The Department of the Navy

is amending its certifications and

exemptions under the International

Regulations for Preventing Collisions at

Sea, 1972 (72 COLREGS), to reflect that

the Deputy Assistant Judge Advocate

General (Admiralty) of the Navy has

determined that USS LABOON (DDG

58) is a vessel of the Navy which, due

to its special construction and purpose,

cannot fully comply with certain

provisions of the 72 COLREGS without

interfering with its special functions as

a naval ship. The intended effect of this

rule is to warn mariners in waters where

72 COLREGS apply.

EFFECTIVE DATE: December 5, 1995.

FOR FURTHER INFORMATION CONTACT:

Captain R. R. Pixa, JAGC, U.S. Navy,

Admiralty Counsel, Office of the Judge

Advocate General, Navy Department,

200 Stovall Street, Alexandria, VA

22332–2400; Telephone number: (703)

325–9744.

SUPPLEMENTARY INFORMATION: Pursuant

to the authority granted in 33 U.S.C.

1605, the Department of the Navy

amends 32 CFR Part 706. This

amendment provides notice that the

Deputy Assistant Judge Advocate

General (Admiralty) of the Navy, under

authority delegated by the Secretary of

the Navy, has certified that USS

LABOON (DDG 58) is a vessel of the

Navy which, due to its special

construction and purpose, cannot fully

comply with the following specific

provisions of 72 COLREGS without

interfering with its special function as a

naval ship: Annex I, paragraph 3(a),

pertaining to the location of the forward

masthead light in the forward quarter of

the vessel, the placement of the after

masthead light, and the horizontal

distance between the forward and after

masthead lights; Annex I, paragraph

2(f)(i) pertaining to placement of the

masthead light or lights above and clear

of all other lights and obstructions; and,

Annex I, paragraph 3(c) pertaining to

placement of task lights not less than

two meters from the fore and aft

centerline of the ship in the athwartship

direction. The Deputy Assistant Judge

Advocate General (Admiralty) has also

certified that the lights involved are

located in closest possible compliance

with the applicable 72 COLREGS

requirements.

Moreover, it has been determined, in

accordance with 32 CFR Parts 296 and

701, that publication of this amendment

for public comment prior to adoption is

impracticable, unnecessary, and

contrary to public interest since it is

based on technical findings that the

placement of lights on this vessel in a

manner differently from that prescribed

herein will adversely affect the vessel’s

ability to perform its military functions.

List of Subjects in 32 CFR Part 706

Marine safety, Navigation (water), and

Vessels.

Accordingly, 32 CFR Part 706 is

amended as follows:

PART 706—[AMENDED]

1. The authority citation for 32 CFR

Part 706 continues to read:

Authority: 33 U.S.C. 1605.

2. Table Five of § 706.2 is amended by

revising the entry for ‘‘USS LABOON’’

to read as follows:

§ 706.2 Certifications of the Secretary of

the Navy under Executive Order 11964 and

33 U.S.C. 1605.

* * * * *

TABLE FIVE

Vessel No.

Masthead

lights not

over all

other lights

and obstructions.

annex I,

sec. 2(f)

Forward

masthead

light not in

forward

quarter of

ship. annex

I, sec. 3(a)

After masthead light

less than 1⁄2

ship’s

length aft of

forward

masthead

light. annex

I, sec. 3(a)

Percentage

horizontal

separation

attained.

* * * * * * *

USS LABOON ............................................................................................. DDG 58 X X X 20.4

* * * * * * *