Expanded Weekly Entry Procedure for Foreign Trade Zones, 33046 [05-11261]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• DEPARTMENT OF THE TREASURY
• Bureau of Customs and Border Protection
• Customs and Border Protection Bureau

[Federal Register Volume 70, Number 108 (Tuesday, June 7, 2005)]
[Proposed Rules]
[Page 33046]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-11261]



[[Page 33046]]

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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Part 146

RIN 1505-AB27


Expanded Weekly Entry Procedure for Foreign Trade Zones

AGENCY: Customs and Border Protection, Homeland Security; Treasury.

ACTION: Withdrawal of notice of proposed rulemaking.

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SUMMARY: This document withdraws a notice of proposed rulemaking 
published in the Federal Register by Customs and Border Protection 
(CBP) on July 25, 2002, which proposed to amend the CBP Regulations in 
accordance with the Trade and Development Act of 2000 to expand the 
weekly entry procedures for foreign trade zones. Public comment on the 
proposed rulemaking was solicited. Commenters uniformly expressed 
concern that the proposed rule limited weekly entry procedures to 
consumption entries, and that amendments to the regulations were 
unnecessary because the law was self-effectuating. After careful 
consideration, CBP has decided to withdraw the proposed rulemaking 
pending assessment of a more comprehensive regulatory scheme for weekly 
entry procedures from foreign trade zones.

DATES: The effective date of this withdrawal is June 7, 2005.

FOR FURTHER INFORMATION CONTACT: William G. Rosoff, Chief, Duty and 
Refund Determination Branch, Office of Regulations and Rulings, Customs 
and Border Protection, Tel. (202) 572-8807.

SUPPLEMENTARY INFORMATION:

Background

Prior NPRM

    On July 25, 2002, Customs and Border Protection (CBP) published a 
notice of proposed rulemaking (NPRM) in the Federal Register (67 FR 
48594) proposing changes to part 146 of the CBP Regulations (19 CFR 
part 146). Part 146 pertains to the documentation and recordkeeping 
requirements governing, among other things, the admission of 
merchandise into a foreign trade zone, its manipulation, manufacture, 
storage, destruction, or exhibition while in the zone, and its entry or 
removal from the zone. The proposed changes were intended to implement 
amendments to that part's underlying statutory authority (19 U.S.C. 
1484) as effected by section 410 of the Trade and Development Act of 
2000 (the ``Act''), (Pub. L. 106-200, 114 Stat. 251).

Amendments to 19 U.S.C. 1484 Effected by the Act

    Section 484 of the Tariff Act of 1930, as amended (19 U.S.C. 1484), 
sets forth the procedures generally governing the entry of imported 
merchandise for customs purposes.
    Section 410 of the Act amended 19 U.S.C. 1484 by adding a new 
paragraph (i) that provided for an expanded weekly entry procedure for 
foreign trade zones under limited circumstances. Specifically, section 
1484(i):
     Expanded the weekly entry system beyond its previous 
coverage to allow all merchandise (other than merchandise the entry of 
which is prohibited by law or for which the filing of an entry summary 
is required before the merchandise is released from customs custody) 
withdrawn from a foreign trade zone during any 7-day period, to be the 
subject of a single estimated entry or release.
     Provided that merchandise falling within this expanded 
procedure is eligible for treatment as a single estimated entry or 
release of merchandise for purposes of the merchandise processing fee 
that CBP assesses on importers in order to offset administrative costs 
incurred in processing imported merchandise that is formally entered or 
released. See 19 U.S.C. 58c(a)(9)(A).
     Authorized the Secretary of the Treasury to require that 
foreign trade zone operators or users employ a CBP-approved electronic 
data interchange system to file entries and pay applicable duties, 
fees, and taxes with respect to the entries.

Proposed Conforming Amendments to Sec.  146.63(c) of the CBP 
Regulations

    Section 146.63 of the CBP Regulations (19 CFR 146.63) sets forth 
the procedures applicable to consumption entries from a foreign trade 
zone. Section 146.63(c) pertains to weekly consumption entries, and is 
limited to merchandise that is manufactured or otherwise changed in a 
zone within 24 hours of physical transfer from the zone for 
consumption.
    In the July 25, 2002, Federal Register document, CBP proposed 
amendments to Sec.  146.63(c) to reflect the terms of newly amended 19 
U.S.C. 1484(i). In this regard, it was proposed to amend Sec.  
146.63(c) to expand the weekly entry procedures applicable to foreign 
trade zones to include merchandise involved in activities other than 
exclusively assembly-line type production operations. Additionally, 
pursuant to 19 U.S.C. 1484 (i)(2)(A)(i) and (ii), it was proposed that 
all weekly entry procedures covering estimated removals of merchandise 
from a foreign trade zone for any consecutive 7-day period, and the 
associated entry summaries, would have to be filed exclusively through 
the Automated Broker Interface with duties, fees and taxes scheduled 
for payment through the Automated Clearinghouse. The proposed 
rulemaking also provided that the estimated weekly entry or release 
would be treated as a single entry or release for purposes of assessing 
merchandise processing fees under 19 U.S.C. 58c(a)(9)(A).

Discussion of Comments

    Fifty-seven comments were received from Foreign Trade Zone users, 
operators, municipalities and brokers in response to the solicitation 
of comments. All were critical of the proposed rule. Most commenters 
objected to the issuance of proposed regulations because, in their 
view, the legislation was self-implementing and no regulations were 
necessary to give the law effect. The commenters were also uniformly 
critical of the proposed rule's limitation to consumption entries, and 
expressed the view that the Act was intended to permit the use of 
weekly entry procedures for other types of entries (i.e., zone-to-zone 
transfers, transfer for transportation and transportation for 
exportation).

Withdrawal of Proposal

    In view of the comments received, and following further 
consideration of the matter, CBP has determined to withdraw the notice 
of proposed rulemaking that was published in the Federal Register (67 
FR 48594) on July 25, 2002. CBP will continue to assess the feasibility 
of a more comprehensive regulatory scheme for zone removals in 
cooperation with interested members of the public.

Robert C. Bonner,
Commissioner, Bureau of Customs and Border Protection.
    Approved: June 2, 2005.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 05-11261 Filed 6-6-05; 8:45 am]
BILLING CODE 4820-02-P