Automated Commercial Environment (ACE): Elimination of Bond Rider Requirement for Participation in Periodic Monthly Statement Payment Process, 55623-55625 [05-18912]
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Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Notices
SUMMARY: The Secretary of Homeland
Security has determined, pursuant to
law, that it is necessary to waive certain
laws, regulations and other legal
requirements in order to ensure the
expeditious construction of barriers and
roads along the international land
border of the United States in California.
DATES: This Notice is effective on
September 22, 2005.
Determination and Waiver
In section 102(a) of the Illegal
Immigration Reform and Immigrant
Responsibility Act of 1996, Public Law
104–208, Div. C, 110 Stat. 3009–546,
3009–554 (Sept. 30, 1996) (8 U.S.C 1103
note (2000) (IIRIRA)), Congress provided
that the Attorney General shall take
such actions as may be necessary to
install additional physical barriers and
roads (including the removal of
obstacles to detection of illegal entrants)
in the vicinity of the United States
border to deter illegal crossings in areas
of high illegal entry into the United
States. Pursuant to sections 1511 and
1517 of the Homeland Security Act of
2002, Public Law 107–296, 116 Stat.
2135, 2309, 2311 (Nov. 25, 2002) (HSA)
(6 U.S.C. 551, 557), the authorities of the
Attorney General contained in section
102 of the IIRIRA were transferred to
me. In section 102(c) of the IIRIRA, as
amended by section 102 of the REAL ID
Act of 2005, Public Law 109–13, Div. B,
119 Stat. 231, 302, 306 (May 11, 2005)
(REAL ID Act) 8 U.S.C. 1103 note),
Congress granted to me the authority to
waive all legal requirements that I, in
my sole discretion, determine necessary
to ensure the expeditious construction
of barriers and roads under section 102
of IIRIRA.
In section 102(b) of the IIRIRA,
Congress specifically provided for the
construction along the 14 miles of the
international land border of the United
States, starting at the Pacific Ocean and
extending eastward, of second and third
fences, in addition to the existing
reinforced fence, and for roads between
the fences. In section 446 of the HSA,
Congress expressed its sense that
completing the 14-mile border project
under section 102(b) of the IIRIRA
should be a priority for the Secretary of
Homeland Security. Nearly nine years
after the passage of the IIRIRA, the
project prescribed in section 102(b) of
the IIRIRA remains incomplete.
In order to ensure the expeditious
construction of the barriers and roads
that Congress prescribed in section
102(b) of the IIRIRA, regarding which
Congress expressed its support in
section 446 of the HSA, 116 Stat. 2195
(6 U.S.C. 256), and which is an area of
high illegal entry into the United States,
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14:53 Sep 21, 2005
Jkt 205001
I have determined that it is necessary
that I exercise the authority that was
transferred to me by sections 1511 and
1517 of the HSA and that is vested in
me by section 102(c) of the IIRIRA as
amended by section 102 of the REAL ID
Act. Accordingly, I hereby waive in
their entirety, with respect to the
construction of the barriers and roads
prescribed in section 102(b) of the
IIRIRA (including, but not limited to,
the conduct of earthwork, excavation,
fill, and site preparation, and
installation and upkeep of fences, roads,
supporting elements, drainage, erosion
controls, safety features, detection
equipment, and lighting), all federal,
state, or other laws, regulations and
legal requirements of, deriving from, or
related to the subject of, the following
laws, as amended: The National
Environmental Policy Act (Pub. L. 91–
190, 83 Stat. 852, (Jan. 1, 1970) (42
U.S.C. 4321 et seq.)), the Endangered
Species Act (Pub. L. 93–205, 87 Stat.
884 (Dec. 28, 1973) (16 U.S.C. 1531 et
seq.)), the Coastal Zone Management
Act (Pub. L. 92–583, 86 Stat. 1280 (Oct.
27, 1972) (16 U.S.C. 1451 et seq.)), the
Federal Water Pollution Control Act
(commonly referred to as the Clean
Water Act) (Act of June 30, 1948, c. 758,
62 Stat. 1155 (33 U.S.C. 1251 et seq.)),
the National Historic Preservation Act
(Pub. L. 89–665, 80 Stat. 915 (Oct. 15,
1966) (16 U.S.C. 470 et seq.)), the
Migratory Bird Treaty Act (16 U.S.C.
703 et seq.), the Clean Air Act (42 U.S.C.
7401 et seq.), and the Administrative
Procedure Act (5 U.S.C. 551 et seq.). I
reserve the authority to make further
waivers from time to time under the
authority granted to me by section
102(c) of the IIRIRA, as amended by
section 102 of the REAL ID Act, as I may
determine to be necessary to accomplish
the provisions of section 102 of IIRIRA.
Dated: September 13, 2005.
Michael Chertoff,
Secretary of Homeland Security.
[FR Doc. 05–18882 Filed 9–21–05; 8:45 am]
BILLING CODE 4410–10–P
DEPARTMENT OF HOMELAND
SECURITY
Bureau of Customs and Border
Protection
Automated Commercial Environment
(ACE): Elimination of Bond Rider
Requirement for Participation in
Periodic Monthly Statement Payment
Process
Customs and Border Protection;
Department of Homeland Security.
AGENCY:
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Fmt 4703
Sfmt 4703
ACTION:
55623
General notice.
SUMMARY: This notice announces
changes in the Bureau of Customs and
Border Protection’s (CBP) National
Customs Automation Program (NCAP)
test concerning periodic monthly
deposit of estimated duties and fees.
Participants in the Periodic Monthly
Statement test are no longer required to
provide a bond rider covering the
periodic payment of estimated duties
and fees. Nonpayment or untimely
payment of estimated duties and fees,
however, may result in action by CBP to
impose sanctions on the delinquent
importer of record or to allow the surety
to terminate its basic importation bond.
If the bond principal is a participant in
the Periodic Monthly Statement test,
sureties will now be allowed, under
certain conditions, to terminate bonds
with 3 business days notice to the bond
principal and CBP.
EFFECTIVE DATES: The elimination of the
requirement to provide a bond rider
covering the periodic payment of
estimated duties is effective
immediately.
ADDRESSES: Comments concerning this
notice should be submitted to Robert B.
Hamilton via e-mail at
Robert.B.Hamilton@dhs.gov.
SUPPLEMENTARY INFORMATION:
Background
On February 4, 2004, the Bureau of
Customs and Border Protection (CBP)
published a General Notice in the
Federal Register (69 FR 5362)
announcing the National Customs
Automation Program (NCAP) test for
Periodic Monthly Payment Statement
Process. The test, which is part of CBP’s
Automated Commercial Environment
(ACE), benefits participants by giving
them access to operational data through
the ACE Secured Data Portal (‘‘ACE
Portal’’), which provides them the
capability to interact electronically with
CBP, and by allowing them to deposit
estimated duties and fees on a monthly
basis based on a Periodic Monthly
Statement generated by CBP.
When the test started, only importers
were eligible to apply for the test.
Eligibility was later expanded to allow
brokers to apply if they were
specifically designated by an ACE
importer.
On September 8, 2004, CBP published
a General Notice in the Federal Register
(69 FR 54302) which invited customs
brokers, regardless of whether they were
designated by participating importers to
make Periodic Monthly Statement
payments on their behalf, to apply to
participate in the test. That notice set
E:\FR\FM\22SEN1.SGM
22SEN1
55624
Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Notices
forth eligibility requirements for both
importers and brokers.
On February 1, 2005, CBP published
a General Notice in the Federal Register
(70 FR 5199) announcing that applicants
seeking to establish importer or broker
accounts so as to access the ACE Portal,
or to participate in any ACE test
(including the test for Periodic Monthly
Payment Statement Process), are no
longer required to provide a statement
certifying participation in the Customs
Trade Partnership Against Terrorism
(C–TPAT).
On August 8, 2005, CBP published a
General Notice in the Federal Register
(70 FR 45736) changing the time period
allowed for the deposit of the duties and
fees from the 15th calendar day to the
15th working day of the month
following the month in which the goods
are either entered or released. That
change was made in order to comply
with the provisions of section 2004 of
the Miscellaneous Trade and Technical
Corrections Act of 2004, Public Law
108–429, which extended the time of
deposit of those estimated duties and
fees. The document also advised that
entries containing Census errors are
eligible to be placed on a Periodic Daily
Statement and designated for monthly
payment. Finally, the document
described those situations where
liquidated damages would be imposed
for failing to pay estimated duties in a
timely manner.
As provided in the February 4, 2004
General Notice announcing the test,
participants in the Periodic Monthly
Statement test are required to schedule
entries for monthly payment. A Periodic
Monthly Statement will list Periodic
Daily Statements that have been
designated for monthly payment. The
Periodic Monthly Statement can be
created on a port basis by the importer
or broker, as was the case with existing
daily statements in the Automated
Commercial System (ACS) (ACE is the
successor to ACS). The Periodic
Monthly Statement can be created on a
national basis by an Automated Broker
Interface (ABI) filer. If an importer
chooses to file the Periodic Monthly
Statement on a national basis he must
use his filer code and schedule and pay
the monthly statements timely. The
Periodic Monthly Statement will be
routed under existing CBP procedures.
Brokers will only view/receive
information that they have filed on an
importer’s behalf. ACE will not route a
Periodic Monthly Statement to a broker
through ABI if that statement lists
information filed by another broker.
The February 4, 2004, Notice also
stated that, in addition to other
responsibilities, test participants are
VerDate Aug<31>2005
14:53 Sep 21, 2005
Jkt 205001
required to provide a bond rider
covering the periodic payment of
estimated duties.
Elimination of the Periodic Monthly
Statement Payment Bond Rider
In order to open participation in the
Periodic Monthly Statement test to the
widest number of importers, CBP will
no longer require that an applicant, in
order to participate in the test, submit
a bond rider as required by the Federal
Register Notice of February 4, 2004. CBP
has determined that the rider is not
necessary, inasmuch as the terms and
conditions of the basic importation
bond under section 113.62 of the CBP
Regulations (title 19 Code of Federal
Regulations (CFR), section 113.62)
require the bond obligors to deposit, in
the time period prescribed by law or
regulation, any duties, taxes, and
charges imposed, or estimated to be due,
at the time of merchandise release or
withdrawal.
Submission of the bond rider does
have the effect of alerting the surety
guaranteeing performance that the bond
principal is participating in the Periodic
Monthly Statement test. CBP agrees that,
as a result of elimination of the rider
submission requirement, it will notify
sureties, electronically, of a bond
principal’s participation in the test.
Failure To Pay, or To Timely Pay,
Estimated Duties and Fees
A bond principal who fails to meet its
obligation to pay estimated duties and
fees under the test should not continue
to enjoy the benefits of the deferred
payment of estimated duties and fees.
Such an allowance would further stress
the bond amount and place the revenue
in jeopardy. As such, CBP, through this
notice, suspends those regulations in
Part 142 relating to the delinquent
payment of CBP bills as they relate to
non-payment or late payment of
estimated duties and fees made under
the Periodic Monthly Statement test.
Any bond principal who is late with an
estimated monthly statement estimated
duty payment by more than 2 business
days will be notified by CBP, either
electronically or by paper notification,
that immediately it shall be required to
file entry summary documentation with
estimated duties and fees attached
before its merchandise may be released
from any CBP port. The surety on the
affected bond will also be notified. The
bond principal will only be released
from such a requirement upon full
payment of any unpaid estimated duties
and fees that have come due under the
Periodic Monthly Statement test.
During the test, CBP will retain the
right to deny Periodic Monthly
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Fmt 4703
Sfmt 4703
Statement payment privileges to any
importer that is repeatedly delinquent
in the payment of estimated duties and
fees due.
Termination of Bonds
For purposes of the test, the
provisions of 19 CFR part 113 relating
to termination of bonds will be
suspended, in certain situations, insofar
as sureties will be permitted to
terminate bonds with 3 business days
notice to the bond principal and CBP.
Section 113.27(b) of the CBP
Regulations (19 CFR 113.27(b))
generally requires a 30-day notice (with
exceptions) for surety termination of a
bond. Sureties may now terminate
bonds with 3 business days notice when
termination by the surety occurs
because the surety does not accept the
risk relating to participation by the bond
principal in the Periodic Monthly
Statement test. Sureties may also
terminate bonds with 3 business days
notice when termination is a result of
the failure of the bond principal to
perform obligations arising as a result of
participation in the test; however, a
termination under these circumstances
can only take place after the surety has
satisfied its obligations which have
arisen as a result of the principal’s
failure to perform. The importer whose
bond is terminated by a surety will be
suspended from participation in the test
unless a new surety is obtained.
Notification of termination to CBP shall
be provided to the Revenue Division,
Office of Finance, 6650 Telecom Dr.,
Suite 100, Attn: Bond Team,
Indianapolis, Indiana 46278. Notice of
termination to CBP must be in writing
and must be delivered by overnight
mail, other express delivery service, or
fax. Notice of termination to the bond
principal must be in writing and must
be delivered by overnight mail or other
express delivery service. Any notice of
termination provided to CBP must
include a declaration that the bond
principal has been notified of
termination.
Suspension of the Regulations
During the testing of the Periodic
Monthly Statement process, CBP will
suspend provisions in Parts 24, 141,
142, and 143 of the Customs and Border
Protection Regulations (Title 19 Code of
Federal Regulations) pertaining to
financial, accounting, entry procedures,
deposit of estimated duties and fees,
and the delinquent payment of CBP
bills. CBP will also suspend the
provisions of Part 113 of the Customs
and Border Protection Regulations with
regard to surety termination of bonds
only in the manner and for the reasons
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Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Notices
discussed in this Notice. All other
provisions of Part 113 of the Customs
and Border Protection Regulations
remain in effect during this test. All of
the terms of the test and criteria for
participation therein, as announced in
the previous notices identified above,
continue to be applicable unless
changed by this notice.
Dated: September 19, 2005.
Thomas S. Winkowski,
Acting Deputy Assistant Commissioner,
Office of Field Operations.
[FR Doc. 05–18912 Filed 9–21–05; 8:45 am]
BILLING CODE 9110–06–P
INTERNATIONAL TRADE
COMMISSION
[Investigation No. 731–TA–718 (Second
Review)]
Glycine From China
United States International
Trade Commission.
ACTION: Scheduling of an expedited fiveyear review concerning the antidumping
duty order on glycine from China.
AGENCY:
The Commission hereby gives
notice of the scheduling of an expedited
review pursuant to section 751(c)(3) of
the Tariff Act of 1930 (19 U.S.C.
1675(c)(3)) (the Act) to determine
whether revocation of the antidumping
duty order on glycine from China would
be likely to lead to continuation or
recurrence of material injury within a
reasonably foreseeable time. For further
information concerning the conduct of
this review and rules of general
application, consult the Commission’s
Rules of Practice and Procedure, part
201, subparts A through E (19 CFR part
201), and part 207, subparts A, D, E, and
F (19 CFR part 207).
EFFECTIVE DATE: September 7, 2005.
FOR FURTHER INFORMATION CONTACT:
Russell Duncan (202–708–4727), Office
of Investigations, U.S. International
Trade Commission, 500 E Street, SW.,
Washington, DC 20436. Hearingimpaired persons can obtain
information on this matter by contacting
the Commission’s TDD terminal on 202–
205–1810. Persons with mobility
impairments who will need special
assistance in gaining access to the
Commission should contact the Office
of the Secretary at 202–205–2000.
General information concerning the
Commission may also be obtained by
accessing its Internet server (https://
www.usitc.gov). The public record for
this review may be viewed on the
Commission’s electronic docket (EDIS)
at https://edis.usitc.gov.
SUMMARY:
VerDate Aug<31>2005
14:53 Sep 21, 2005
Jkt 205001
SUPPLEMENTARY INFORMATION:
Background.—On September 7, 2005,
the Commission determined that the
domestic interested party group
response to its notice of institution (70
FR 31534, June 1, 2005) of the subject
five-year review was adequate and that
the respondent interested party group
response was inadequate. The
Commission did not find any other
circumstances that would warrant
conducting a full review.1 Accordingly,
the Commission determined that it
would conduct an expedited review
pursuant to section 751(c)(3) of the Act.2
Staff report.—A staff report
containing information concerning the
subject matter of the review will be
placed in the nonpublic record on
September 30, 2005, and made available
to persons on the Administrative
Protective Order service list for this
review. A public version will be issued
thereafter, pursuant to section
207.62(d)(4) of the Commission’s rules.
Written submissions.—As provided in
section 207.62(d) of the Commission’s
rules, interested parties that are parties
to the review and that have provided
individually adequate responses to the
notice of institution,3 and any party
other than an interested party to the
review may file written comments with
the Secretary on what determination the
Commission should reach in the review.
Comments are due on or before October
5, 2005, and may not contain new
factual information. Any person that is
neither a party to the review nor an
interested party may submit a brief
written statement (which shall not
contain any new factual information)
pertinent to the review by October 5,
2005. However, should the Department
of Commerce extend the time limit for
its completion of the final results of its
review, comments (which shall not
contain new factual information) on
Commerce’s final results may be
submitted three business days after the
issuance of Commerce’s results. If
comments contain business proprietary
information (BPI), they must conform
with the requirements of sections 201.6,
207.3, and 207.7 of the Commission’s
rules. The Commission’s rules do not
authorize filing of submissions with the
1 A record of the Commissioners’ votes, the
Commission’s statement on adequacy, and any
individual Commissioner’s statements will be
available from the Office of the Secretary and at the
Commission’s Web site.
2 Commissioner Aranoff did not participate in
this determination.
3 The Commission has found the responses
submitted by the Glycine Fair Trade Committee and
its individual members Chattem Chemicals, Inc.,
and Hampshire Chemical Corp., to be individually
adequate. Comments from other interested parties
will not be accepted (see 19 CFR 207.62(d)(2)).
PO 00000
Frm 00011
Fmt 4703
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55625
Secretary by facsimile or electronic
means, except to the extent permitted by
section 201.8 of the Commission’s rules,
as amended, 67 FR 68036 (November 8,
2002). Even where electronic filing of a
document is permitted, certain
documents must also be filed in paper
form, as specified in II (C) of the
Commission’s Handbook on Electronic
Filing Procedures, 67 FR 68168, 68173
(November 8, 2002).
In accordance with sections 201.16(c)
and 207.3 of the rules, each document
filed by a party to the review must be
served on all other parties to the review
(as identified by either the public or BPI
service list), and a certificate of service
must be timely filed. The Secretary will
not accept a document for filing without
a certificate of service.
Authority: This review is being conducted
under authority of title VII of the Tariff Act
of 1930; this notice is published pursuant to
section 207.62 (c) of the Commission’s rules.
By order of the Commission.
Issued: September 16, 2005.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. 05–18894 Filed 9–21–05; 8:45 am]
BILLING CODE 7020–02–P
INTERNATIONAL TRADE
COMMISSION
[Investigation No. 332–345]
Recent Trends in U.S. Services Trade,
2006 Annual Report
United States International
Trade Commission.
ACTION: Scheduling of 2006 report on
Recent Trends in U.S. Services Trade
and opportunity for the public to submit
information.
AGENCY:
SUMMARY: The International Trade
Commission (ITC) has prepared and
published annual reports in this series
under investigation No. 332–345 since
1996 (Recent Trends in U.S. Services
Trade). The 2006 report, which the
Commission plans to publish in June
2006, will cover cross-border trade for
the period ending in 2004 and
transactions by affiliates based outside
the country of their parent firm for the
period ending in 2003. The Commission
is inviting interested members of the
public to furnish information in
connection with the 2006 report.
EFFECTIVE DATE: September 14, 2005.
FOR FURTHER INFORMATION CONTACT:
Questions about the report may be
directed to the project leader, Eric
Forden, Office of Industries (202–205–
3235; eric.forden@usitc.gov) or to
Richard Brown, Office of Industries
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]]>Agencies
[Federal Register Volume 70, Number 183 (Thursday, September 22, 2005)]
[Notices]
[Pages 55623-55625]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-18912]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
Automated Commercial Environment (ACE): Elimination of Bond Rider
Requirement for Participation in Periodic Monthly Statement Payment
Process
AGENCY: Customs and Border Protection; Department of Homeland Security.
ACTION: General notice.
-----------------------------------------------------------------------
SUMMARY: This notice announces changes in the Bureau of Customs and
Border Protection's (CBP) National Customs Automation Program (NCAP)
test concerning periodic monthly deposit of estimated duties and fees.
Participants in the Periodic Monthly Statement test are no longer
required to provide a bond rider covering the periodic payment of
estimated duties and fees. Nonpayment or untimely payment of estimated
duties and fees, however, may result in action by CBP to impose
sanctions on the delinquent importer of record or to allow the surety
to terminate its basic importation bond. If the bond principal is a
participant in the Periodic Monthly Statement test, sureties will now
be allowed, under certain conditions, to terminate bonds with 3
business days notice to the bond principal and CBP.
EFFECTIVE DATES: The elimination of the requirement to provide a bond
rider covering the periodic payment of estimated duties is effective
immediately.
ADDRESSES: Comments concerning this notice should be submitted to
Robert B. Hamilton via e-mail at Robert.B.Hamilton@dhs.gov.
SUPPLEMENTARY INFORMATION:
Background
On February 4, 2004, the Bureau of Customs and Border Protection
(CBP) published a General Notice in the Federal Register (69 FR 5362)
announcing the National Customs Automation Program (NCAP) test for
Periodic Monthly Payment Statement Process. The test, which is part of
CBP's Automated Commercial Environment (ACE), benefits participants by
giving them access to operational data through the ACE Secured Data
Portal (``ACE Portal''), which provides them the capability to interact
electronically with CBP, and by allowing them to deposit estimated
duties and fees on a monthly basis based on a Periodic Monthly
Statement generated by CBP.
When the test started, only importers were eligible to apply for
the test. Eligibility was later expanded to allow brokers to apply if
they were specifically designated by an ACE importer.
On September 8, 2004, CBP published a General Notice in the Federal
Register (69 FR 54302) which invited customs brokers, regardless of
whether they were designated by participating importers to make
Periodic Monthly Statement payments on their behalf, to apply to
participate in the test. That notice set
[[Page 55624]]
forth eligibility requirements for both importers and brokers.
On February 1, 2005, CBP published a General Notice in the Federal
Register (70 FR 5199) announcing that applicants seeking to establish
importer or broker accounts so as to access the ACE Portal, or to
participate in any ACE test (including the test for Periodic Monthly
Payment Statement Process), are no longer required to provide a
statement certifying participation in the Customs Trade Partnership
Against Terrorism (C-TPAT).
On August 8, 2005, CBP published a General Notice in the Federal
Register (70 FR 45736) changing the time period allowed for the deposit
of the duties and fees from the 15th calendar day to the 15th working
day of the month following the month in which the goods are either
entered or released. That change was made in order to comply with the
provisions of section 2004 of the Miscellaneous Trade and Technical
Corrections Act of 2004, Public Law 108-429, which extended the time of
deposit of those estimated duties and fees. The document also advised
that entries containing Census errors are eligible to be placed on a
Periodic Daily Statement and designated for monthly payment. Finally,
the document described those situations where liquidated damages would
be imposed for failing to pay estimated duties in a timely manner.
As provided in the February 4, 2004 General Notice announcing the
test, participants in the Periodic Monthly Statement test are required
to schedule entries for monthly payment. A Periodic Monthly Statement
will list Periodic Daily Statements that have been designated for
monthly payment. The Periodic Monthly Statement can be created on a
port basis by the importer or broker, as was the case with existing
daily statements in the Automated Commercial System (ACS) (ACE is the
successor to ACS). The Periodic Monthly Statement can be created on a
national basis by an Automated Broker Interface (ABI) filer. If an
importer chooses to file the Periodic Monthly Statement on a national
basis he must use his filer code and schedule and pay the monthly
statements timely. The Periodic Monthly Statement will be routed under
existing CBP procedures. Brokers will only view/receive information
that they have filed on an importer's behalf. ACE will not route a
Periodic Monthly Statement to a broker through ABI if that statement
lists information filed by another broker.
The February 4, 2004, Notice also stated that, in addition to other
responsibilities, test participants are required to provide a bond
rider covering the periodic payment of estimated duties.
Elimination of the Periodic Monthly Statement Payment Bond Rider
In order to open participation in the Periodic Monthly Statement
test to the widest number of importers, CBP will no longer require that
an applicant, in order to participate in the test, submit a bond rider
as required by the Federal Register Notice of February 4, 2004. CBP has
determined that the rider is not necessary, inasmuch as the terms and
conditions of the basic importation bond under section 113.62 of the
CBP Regulations (title 19 Code of Federal Regulations (CFR), section
113.62) require the bond obligors to deposit, in the time period
prescribed by law or regulation, any duties, taxes, and charges
imposed, or estimated to be due, at the time of merchandise release or
withdrawal.
Submission of the bond rider does have the effect of alerting the
surety guaranteeing performance that the bond principal is
participating in the Periodic Monthly Statement test. CBP agrees that,
as a result of elimination of the rider submission requirement, it will
notify sureties, electronically, of a bond principal's participation in
the test.
Failure To Pay, or To Timely Pay, Estimated Duties and Fees
A bond principal who fails to meet its obligation to pay estimated
duties and fees under the test should not continue to enjoy the
benefits of the deferred payment of estimated duties and fees. Such an
allowance would further stress the bond amount and place the revenue in
jeopardy. As such, CBP, through this notice, suspends those regulations
in Part 142 relating to the delinquent payment of CBP bills as they
relate to non-payment or late payment of estimated duties and fees made
under the Periodic Monthly Statement test. Any bond principal who is
late with an estimated monthly statement estimated duty payment by more
than 2 business days will be notified by CBP, either electronically or
by paper notification, that immediately it shall be required to file
entry summary documentation with estimated duties and fees attached
before its merchandise may be released from any CBP port. The surety on
the affected bond will also be notified. The bond principal will only
be released from such a requirement upon full payment of any unpaid
estimated duties and fees that have come due under the Periodic Monthly
Statement test.
During the test, CBP will retain the right to deny Periodic Monthly
Statement payment privileges to any importer that is repeatedly
delinquent in the payment of estimated duties and fees due.
Termination of Bonds
For purposes of the test, the provisions of 19 CFR part 113
relating to termination of bonds will be suspended, in certain
situations, insofar as sureties will be permitted to terminate bonds
with 3 business days notice to the bond principal and CBP. Section
113.27(b) of the CBP Regulations (19 CFR 113.27(b)) generally requires
a 30-day notice (with exceptions) for surety termination of a bond.
Sureties may now terminate bonds with 3 business days notice when
termination by the surety occurs because the surety does not accept the
risk relating to participation by the bond principal in the Periodic
Monthly Statement test. Sureties may also terminate bonds with 3
business days notice when termination is a result of the failure of the
bond principal to perform obligations arising as a result of
participation in the test; however, a termination under these
circumstances can only take place after the surety has satisfied its
obligations which have arisen as a result of the principal's failure to
perform. The importer whose bond is terminated by a surety will be
suspended from participation in the test unless a new surety is
obtained. Notification of termination to CBP shall be provided to the
Revenue Division, Office of Finance, 6650 Telecom Dr., Suite 100, Attn:
Bond Team, Indianapolis, Indiana 46278. Notice of termination to CBP
must be in writing and must be delivered by overnight mail, other
express delivery service, or fax. Notice of termination to the bond
principal must be in writing and must be delivered by overnight mail or
other express delivery service. Any notice of termination provided to
CBP must include a declaration that the bond principal has been
notified of termination.
Suspension of the Regulations
During the testing of the Periodic Monthly Statement process, CBP
will suspend provisions in Parts 24, 141, 142, and 143 of the Customs
and Border Protection Regulations (Title 19 Code of Federal
Regulations) pertaining to financial, accounting, entry procedures,
deposit of estimated duties and fees, and the delinquent payment of CBP
bills. CBP will also suspend the provisions of Part 113 of the Customs
and Border Protection Regulations with regard to surety termination of
bonds only in the manner and for the reasons
[[Page 55625]]
discussed in this Notice. All other provisions of Part 113 of the
Customs and Border Protection Regulations remain in effect during this
test. All of the terms of the test and criteria for participation
therein, as announced in the previous notices identified above,
continue to be applicable unless changed by this notice.
Dated: September 19, 2005.
Thomas S. Winkowski,
Acting Deputy Assistant Commissioner, Office of Field Operations.
[FR Doc. 05-18912 Filed 9-21-05; 8:45 am]
BILLING CODE 9110-06-P
