24888 Federal Register / Vol. 61, No. 97 / Friday, May 17, 1996 / Rules and Regulations

§ 10.321 through 10.323 [Removed]

2. Sections 10.321 through 10.323 and

their center heading are removed.

George J. Weise,

Commissioner of Customs.

Approved: April 29, 1996.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 96–12372 Filed 5–16–96; 8:45 am]

BILLING CODE 4820–02–P

19 CFR Parts 12, 145, and 161

[T.D. 96–42]

RIN 1515–AB91

Prohibited/Restricted Merchandise;

Enforcement of Foreign Assets Control

Regulations

AGENCY: Customs Service, Treasury.

ACTION: Final rule.

SUMMARY: This document amends the

Customs Regulations to more clearly

provide that Customs enforces the laws

and regulations of the Office of Foreign

Assets Control (OFAC) of the

Department of the Treasury regarding

economic sanctions applicable to those

countries that have been designated by

the President as constituting a threat to

the national security, foreign policy, or

economy of the United States.

Currently, the Customs Regulations refer

to OFAC regulations only in the context

of merchandise arriving by mail. This

document clarifies that Customs

enforces the laws and regulations

administered by OFAC regardless of

how subject merchandise, services, and

technology arrive in or depart from the

U.S.

EFFECTIVE DATE: May 17, 1996.

FOR FURTHER INFORMATION CONTACT:

Louis Alfano, Office of Field

Operations, Commercial Enforcement

Branch, (202) 927–0005.

SUPPLEMENTARY INFORMATION:

Background

As part of Customs continuing effort

to ensure that its regulations are

informative and up-to-date, Customs has

determined that its regulations do not

clearly set forth the fact that Customs

enforces the laws and regulations

administered by the Office of Foreign

Assets Control (OFAC) of the

Department of the Treasury (31 CFR

Chapter V). These laws include the

Trading With the Enemy Act (50 U.S.C.

App. 1–44), the National Emergencies

Act (50 U.S.C. 1641 et seq.), the

International Emergency Economic

Powers Act (50 U.S.C. 1701–1706), and

the International Security and

Development Cooperation Act (22

U.S.C. 2349aa8–9); the regulations are

found at Chapter V of Title 31 of the

Code of Federal Regulations (Money and

Finance) (31 CFR Chapter V). These

laws and regulations impose

prohibitions or restrictions on

importations, exportations, and other

transactions involving funds,

merchandise, services, and technology

with and of those countries that have

been designated by the President,

pursuant to applicable statutory

provisions. Currently, the Customs

Regulations refer to OFAC regulations

only in part 145 of the Customs

Regulations (19 CFR Part 145), the

provisions of which apply only to

merchandise arriving by mail. This

document clarifies that Customs

enforces the laws and regulations

administered by OFAC regardless of

how the subject merchandise, services,

and technology arrive in or depart from

the U.S. by amending three sections in

as many parts to provide further notice

to the public of Customs enforcement

obligations concerning the application

of economic sanctions to designated

countries.

In reviewing § 145.56 of the Customs

Regulations (19 CFR 145.56), which

concerns the applicability of OFAC

controls on merchandise arriving by

mail, Customs has determined that the

listing of countries subject to controls

administered by OFAC is not up-to-date.

(The list of countries in the section has

not been updated since the section was

promulgated in 1973 and is outdated

and inconsistent with OFAC

regulations: two of the four countries

currently listed are no longer subject to

OFAC’s controls (North Vietnam (now

Vietnam) and Rhodesia (now

Zimbabwe)) and other countries that

have since been designated by the

President as subject to sanctions have

not been added to the list). Each time

the President sanctions and lifts

sanctions on designated countries,

OFAC amends its regulations

accordingly. Repeating the list of

sanctioned countries in the Customs

Regulations merely duplicates the

efforts of OFAC and, if not done timely,

could result in future inconsistencies

between OFAC and Customs

Regulations. Accordingly, Customs has

determined that to avoid the possibility

of future inconsistencies between OFAC

and Customs Regulations in the listing

of sanctioned countries, Customs will

no longer set forth such a list in its

regulations, but will simply refer

readers to the OFAC regulations. Thus,

in amending § 145.56, this document

retains the procedural provisions, but

removes the listing of countries subject

to economic sanctions.

This document also clarifies the

extent of Customs responsibility in

enforcing OFAC controls by adding

sections regarding OFAC controls in

both Part 12, which concerns

regulations of various Federal agencies

which Customs enforces and special

classes of merchandise, and in Part 161,

which concerns general enforcement

provisions. A new § 12.150 is added to

Part 12, which cross-references OFAC

regulations at 31 CFR Chapter V,

explains how OFAC regulations work,

and provides an address for further

information from OFAC. Also, a specific

authority citation is added to account

for Customs import (19 U.S.C. 1595a(c))

and export (22 U.S.C 401) seizure

authority and to account for the terms

and conditions for release (19 U.S.C.

1618). Section 161.2 is amended to list

OFAC as an agency whose laws are

enforced by Customs. Also, the

parenthetical legal authority citations at

the end of § 161.2 are amended to

account for changes in the law since

1972, when the citations were first

provided, and are placed under the

general authority citation at the

beginning of Part 161.

Inapplicability of Public Notice and

Comment Requirements, Delayed

Effective Date Requirements, the

Regulatory Flexibility Act, and

Executive Order 12866

Because this amendment merely

provides further notice to the public

that Customs enforces the laws and

regulations administered by the Office

of Foreign Assets Control of the

Department of the Treasury, pursuant to

5 U.S.C. 553(b)(B), good cause exists for

dispensing with notice and public

procedure thereon as unnecessary. For

the same reasons, good cause exists for

dispensing with a delayed effective date

under 5 U.S.C. 553(d)(1) and (d)(3).

Since this document is not subject to the

notice and public procedure

requirements of 5 U.S.C. 553, it is not

subject to provisions of the Regulatory

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

This document does not meet the

criteria for a ‘‘significant regulatory

action’’ as specified in E.O. 12866.

List of Subjects

19 CFR Part 12

Customs duties and inspection,

Economic sanctions, Imports, Licensing,

Prohibited merchandise, Restricted

merchandise, Reporting and

recordkeeping requirements, Sanctions,

Seizure and forfeiture.
Federal Register / Vol. 61, No. 97 / Friday, May 17, 1996 / Rules and Regulations 24889

19 CFR Part 145

Customs duties and inspection,

Imports, Mail, Postal service, Prohibited

merchandise, Restricted merchandise,

Reporting and recordkeeping

requirements, Seizure and forfeiture.

19 CFR Part 161

Customs duties and inspection,

Imports, Law enforcement.

Amendments to the Regulations

For the reasons stated above, parts 12,

145, and 161 of the Customs Regulations

(19 CFR parts 12, 145, and 161), are

amended as set forth below:

PART 12—SPECIAL CLASSES OF

MERCHANDISE

1. The general authority citation for

Part 12 continues and a specific

authority citation for new § 12.150 is

added to read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202

(General Note 20, Harmonized Tariff

Schedule of the United States (HTSUS)),

1624;

* * * * *

Section 12.150 also issued under 19 U.S.C.

1595a and 1618; 22 U.S.C. 401.

2. Part 12 is amended by adding a

centerheading and new § 12.150 to read

as follows:

Merchandise Subject to Economic

Sanctions

§ 12.150 Merchandise prohibited by

economic sanctions; detention; seizure or

other disposition; blocked property.

(a) Generally. Merchandise from

certain countries designated by the

President as constituting a threat to the

national security, foreign policy, or

economy of the United States shall be

detained until the question of its

release, seizure, or other disposition has

been determined under law and

regulations issued by the Treasury

Department’s Office of Foreign Assets

Control (OFAC) (31 CFR Chapter V).

(b) Seizure. When an unlicensed

importation of merchandise subject to

OFAC’s regulations is determined to be

prohibited, no entry for any purpose

shall be permitted and, unless the

immediate reexportation or other

disposition of such merchandise under

Customs supervision has previously

been authorized by OFAC, the

merchandise shall be seized.

(c) Licenses. OFAC’s regulations may

authorize OFAC to issue licenses on a

case-by-case basis authorizing the

importation of otherwise prohibited

merchandise under certain conditions.

If such a license is issued subsequent to

the attempted entry and seizure of the

merchandise, importation shall be

conditioned upon the importer:

(1) Agreeing in writing to hold the

Government harmless, and

(2) Paying any storage and other

Customs fees, costs, or expenses, as well

as any mitigated forfeiture amount or

monetary penalty imposed or assessed

by Customs or OFAC, or both.

(d) Blocked property. Merchandise

which constitutes property in which the

government or any national of certain

designated countries has an interest may

be blocked (frozen) pursuant to OFAC’s

regulations and may not be transferred,

sold, or otherwise disposed of without

an OFAC license.

(e) Additional information. For

further information concerning

importing merchandise prohibited

under economic sanctions programs

currently in effect, the Office of Foreign

Assets Control of the Department of the

Treasury should be contacted. The

address of that office is 1500

Pennsylvania Ave., N.W., Annex 2nd

Floor, Washington, D.C. 20220.

PART 145—MAIL IMPORTATIONS

1. The general authority citation for

Part 145 is revised to read as follows:

Authority: 19 U.S.C. 66, 1202 (General

Note 20, Harmonized Tariff Schedule of the

United States), 1624;

* * * * *

§ 145.56 [Amended]

2. Section 145.56 is amended by

removing the words ‘‘North Korea,

North Vietnam, Cuba, or Rhodesia’’ and

adding, in their place, the words

‘‘certain designated countries’’; and by

adding the parenthetical words ‘‘(See

also 19 CFR 12.150)’’ at the end of the

section before the period.

PART 161—GENERAL ENFORCEMENT

PROVISIONS

1. The general authority citation for

Part 161 is revised, and a specific

authority citation for section 161.2 is

added, to read as follows:

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

1600, 1619, 1624, 1646a;

Section 161.2 also issued under 12 U.S.C.

95a; 18 U.S.C. 545; 19 U.S.C. 1595(a); 22

U.S.C. 401, 1934, 2349aa8–9;

42 U.S.C. 1804, 1807; 50 U.S.C. 1641 et

seq., 1701 et seq.;

50 U.S.C. App. 1–44, 2411.

* * * * *

2. Section 161.2 is amended by

adding paragraph (a)(3) and removing

the parenthetical authority citations at

the end of the section. The revision

reads as follows:

§ 161.2 Enforcement for other agencies.

(a) * * *

(1) * * *

(2) * * *

(3) Importations, exportations, and

transactions involving identified goods,

services, and technology with any of

those countries designated as subject to

economic sanctions under the laws and

regulations administered by the Office

of Foreign Assets Control of the

Department of the Treasury.

* * * * *

Michael H. Lane,

Acting Commissioner of Customs.

Approved: April 8, 1996.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 96–12373 Filed 5–16–96; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF JUSTICE

28 CFR Part 58

United States Trustees; Guidelines

Relating to the Bankruptcy Reform Act

of 1994

AGENCY: Department of Justice.

ACTION: Final internal procedural

guidelines.

SUMMARY: The Department of Justice is

establishing internal procedural

guidelines for reviewing applications for

compensation and reimbursement of

expenses filed by case trustees and

professionals under section 330 of Title

11, United States Code. These

procedural guidelines are not intended

to supersede local rules, but are to be

read as complementing the procedures

set forth in local rules.

To keep all published rules,

regulations, and guidelines pertaining to

the United States Trustee Program in

one section of the Code of Federal

Regulations, the title to 28 CFR 58 will

be amended to include the Bankruptcy

Reform Act of 1994.

EFFECTIVE DATE: January 30, 1996.

FOR FURTHER INFORMATION CONTACT:

Martha L. Davis, General Counsel, or

Kathleen Dunivin Schmitt, Attorney,

(202) 307–1399. This is not a toll-free

number.

SUPPLEMENTARY INFORMATION: This

action is in response to the Bankruptcy

Reform Act of 1994, which amended 28

U.S.C. 586(a)(3)(A) to direct United

States Trustees to review applications

for compensation and reimbursement of

expenses in accordance with procedural

guidelines adopted by the Executive

Office for United States Trustees. The

guidelines are to be applied uniformly

by the United States Trustees, except

when circumstances warrant different

treatment.