Informal Entry Limit and Removal of a Formal Entry Requirement, 72715-72721 [2012-29193]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• U.S. Customs and Border Protection
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 77, Number 235 (Thursday, December 6, 2012)]
[Rules and Regulations]
[Pages 72715-72721]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29193]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 10, 24, 102, 123, 128, 141, 143, 145, and 148

[USCBP-2011-0042, CBP Dec. 12-19]
RIN 1515-AD69


Informal Entry Limit and Removal of a Formal Entry Requirement

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Final rule.

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SUMMARY: Currently, for any merchandise valued over $2,000, CBP 
requires importers to provide a surety bond, complete CBP form 7501, 
and pay a minimum of $25 in Merchandise Processing Fees (MPF). The 
final rule increases the limit, from $2,000 to $2,500, for which 
merchandise may qualify for an ``informal entry'', thereby eliminating 
the need for a surety bond, expediting the customs clearance process, 
and reducing the required MPF amount to $2 (assuming the entries are 
filed electronically). CBP is increasing the informal entry limit to 
mitigate the effects of inflation and in addition, to meet a commitment 
of the Beyond the Border Initiative between the United States and 
Canada, to increase and harmonize the value thresholds to $2,500 for 
expedited customs clearance from the current levels of $2,000 for the 
United States and $1,600 for Canada.
    This document also removes the language requiring formal entry for 
certain articles that were formerly subject to absolute quotas under 
the Agreement on Textiles and Clothing because CBP no longer needs to 
require formal entries for these articles. This document also makes a 
technical conforming amendment to reflect a recent statutory amendment 
that increased the ad valorem Merchandise Processing Fee (MPF) from 
0.21 percent to 0.3464 percent. Finally, this document makes non-
substantive editorial and nomenclature changes.

[[Page 72716]]


DATES: Effective January 7, 2013.

FOR FURTHER INFORMATION CONTACT: Elena Ryan, Acting Director, Trade 
Facilitation and Administration Division, Office of International 
Trade, Customs and Border Protection, 202-863-6578.

SUPPLEMENTARY INFORMATION:

Background

    On October 28, 2011, U.S. Customs and Border Protection (``CBP'') 
published a proposed rule in the Federal Register (76 FR 66875) 
proposing to amend title 19 of the Code of Federal Regulations (``19 
CFR'') to increase the informal entry limit from $2,000 to $2,500, the 
maximum statutory limit, in response to inflation and thereby to reduce 
the burden on importers and other entry filers. We note that an 
increase of the informal entry limit is also consistent with one of the 
goals of the Beyond the Border Initiative, which began on February 4, 
2011, and encourages bilateral cooperation between the United States 
and Canada. Through the Beyond the Border Initiative, the United States 
and Canada have agreed to increase and harmonize the value thresholds 
to $2,500 for expedited customs clearance from the current levels of 
$2,000 for the United States and $1,600 for Canada. (For further 
information on the Beyond the Border Action Plan, see https://www.dhs.gov/files/publications/beyond-the-border.shtm.) CBP also 
proposed to remove the language requiring formal entry for certain 
articles, because with the elimination of absolute quotas under the 
Agreement on Textiles and Clothing, CBP no longer needs to require 
formal entries for these articles. For further details on the proposal, 
please reference the published proposed rule.
    CBP solicited public comments on the proposed rule.

Technical Correction

    This document also makes a technical correction to conform the 
regulations to reflect the statutory amendment to section 13031(a)(9) 
of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(a)(9)) by section 2 of the Trade Adjustment Assistance 
Extension Act of 2011 that increased the ad valorem Merchandise 
Processing Fee (MPF) of 0.21 percent to 0.3464 percent. See Pub. L. 
112-40, 125 Stat. 401 (October 23, 2011). The increased MPF applies to 
imported merchandise entered on or after October 1, 2011 until June 30, 
2014.

Discussion of Comments

    Eighteen commenters responded to the solicitation of public 
comments in the proposed rule. These comments can be found at https://www.regulations.gov/#!docketDetail;dct=PS;rpp=25;po=0;D=USCBP-2011-
0042. The vast majority of the commenters expressed support for 
increasing the informal entry limit and/or removing the formal entry 
list. CBP's responses to the comments are set forth below.
    Comment: Fifteen commenters expressed general agreement with the 
proposal to increase the informal entry limit to $2,500. Fourteen of 
these fifteen commenters agreed with the proposal to remove the formal 
entry requirement for certain articles and one commenter did not 
comment on the proposal concerning the formal entry requirement.
    CBP Response: CBP concurs with proceeding to increase the informal 
entry amount to its statutory limit and to remove the formal entry 
requirement for certain articles that were previously subject to 
absolute quotas under the Agreement on Textiles and Clothing.
    Comment: One commenter questioned whether filing an informal entry 
is less time consuming and burdensome than filing a formal entry. The 
commenter stated that an importer must use due diligence for both 
formal and informal entries.
    CBP Response: CBP notes that importers filing by paper are required 
to complete more data elements in the formal entry paper form than in 
the informal entry form. For example, importers filing a formal entry 
paper form are required to provide the location of the goods, whereas 
importers filing an informal entry paper form are not required to 
provide this data element. Therefore, for paper filers, the informal 
entry is less time consuming. The bulk of affected filings are 
electronic, however, and in the electronic format filers provide the 
same data for both formal and informal entries. CBP agrees that the 
importer must use due diligence for filing both informal and formal 
entries.
    Comment: Two commenters indicated that adjusting the informal entry 
limit to reflect inflation from 1998 to 2011 would raise the amount to 
approximately $2,800 rather than the proposed $2,500. One commenter 
suggested increasing the informal entry limit to $3,000.
    CBP Response: Although CBP agrees that inflation would increase the 
informal entry limit from $2,000 to approximately $2,800, CBP is bound 
by the statutory limit of $2,500.
    Comment: One commenter asked whether a study has been conducted to 
determine how many entries between the value of $2,000 and $2,500 would 
have been filed in the past years if the informal entry limit were 
$2,500.
    CBP Response: As set forth in this document (see the ``Executive 
Orders 12866 and 13563'' section), CBP estimates that in fiscal year 
2011 (the latest year of available data), there were approximately 
852,000 formal entries between the value of $2,000 and $2,500. 
Approximately 558,000 of those entries would have been affected by this 
rule because they were required to pay MPFs.
    Comment: One commenter suggested that CBP postpone the effective 
date of the rule until 2015 because promulgation of the rule would 
result in a net loss of $11 million to the U.S. Treasury. Two other 
commenters stated that the timing of the policy seemed inconsistent 
with the recent Congressional decision to increase the ad valorem MPFs 
by 60 percent. These two commenters noted that CBP would lose revenue 
from MPFs by increasing the informal entry limit and one of these 
commenters additionally noted that removing the formal entry 
requirement for textile and apparel entries would reduce revenue 
further because of the reduced collection of MPFs.
    CBP Response: CBP notes that the MPF is set by Congress and the 
level of the MPF is beyond the scope of this rule. The reduction in MPF 
for the shipments which are affected by this rule should facilitate 
trade.
    Comment: Three commenters stated that the analysis of the impact on 
small entities was too conservative and did not address the savings 
that would be achieved by small and medium businesses. Four commenters 
cited a June 2011 study conducted by the Peterson Institute for 
International Economics (``Peterson study'') in support of this 
statement and in support of its statement that raising the informal 
entry level would result in a substantial savings to CBP, the United 
States Postal Service, the express industry, and U.S. consumers.
    CBP Response: CBP has reviewed the Peterson study, and while we 
agree that this final rule could result in meaningful benefits for the 
public, the estimates in the study relied on assumptions that CBP could 
not verify or support. Given the limitations in the data available for 
this analysis, CBP cannot ascertain with any degree of certainty the 
specific monetary impacts to businesses based on size.
    Comment: Two commenters questioned CBP's ability to conduct post-
entry audit on informal entries. One commenter noted that the security 
of the cargo and the accuracy of the cargo's description is at risk 
because

[[Page 72717]]

there is no review of incoming air cargo prior to lading on board an 
aircraft. The other commenter stated that a similar issue would arise 
in the case of antidumping and countervailing duties entries that were 
not properly prepared.
    CBP Response: CBP has the ability to conduct post-entry audits on 
informal entries because CBP has regulatory auditors who conduct either 
scheduled or random audits on importers' liquidated entries to 
determine compliance with applicable U.S. laws and regulations. 
Moreover, CBP notes that formal entries are required for all 
antidumping and countervailing duties entries. The commenter's concern 
regarding the security of the cargo prior to lading is not impacted by 
raising the informal entry limit because CBP screens all manifested 
merchandise on board the carrier without regard to its value.
    Comment: One commenter asserted that CBP inspectors universally 
seem to agree that a large percentage of import violations occur when 
importers inaccurately claim that their goods are valued less than 
$2,000.
    CBP Response: Even when entries are informal, CBP reviews for 
correctness of the entry and the admissibility of the merchandise to 
ensure compliance with applicable U.S. laws and regulations.
    Comment: One commenter asked whether Congress will allow resource 
deviation from CBP's enforcement efforts to the further development of 
the Automated Commercial Environment (ACE) system.
    CBP Response: The anticipated actions of Congress are beyond the 
scope of this rulemaking.

Conclusion

    After review of the comments and further consideration, CBP has 
decided to adopt the proposed rule that was published in the Federal 
Register (76 FR 66875) on October 28, 2011, with the addition of the 
conforming technical amendment to the MPF as discussed above. 
Additional minor grammatical and editorial changes were made in this 
final rule.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a ``significant regulatory 
action'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget (OMB). CBP has prepared the following 
analysis to help inform stakeholders of the potential impacts of this 
final rule.
    CBP requires importers to submit a completed CBP Form 7501 (OMB 
Control Number 1651-0022) or its electronic equivalent with each entry 
of merchandise for consumption. Merchandise valued over $2,000 requires 
a formal entry, which generally includes detailed information regarding 
the import transaction as well as commercial documents pertaining to 
the transaction. In addition, a surety bond is required, and the 
importer may take possession of the merchandise before duties and taxes 
are assessed. Currently, merchandise valued below $2,000 may be entered 
informally without a bond; and duties and taxes are assessed 
immediately. However, based on his/her discretion, a port director, may 
require a formal entry to be filed. This final rule increases the 
ceiling for which merchandise may qualify for an informal entry from 
$2,000 to $2,500.
    Unless exempt under a free trade agreement and in addition to any 
duty or tax owed, merchandise requiring a formal entry was subject to a 
0.21 percent ad valorem MPF, which may be no greater than $485 and no 
less than $25. Since the publication of the NPRM, the ad valorem rate 
has increased from 0.21 percent to 0.3464 percent (starting on October 
1, 2011). Any merchandise currently requiring a formal entry with a 
value of $2,000 to $2,500 is subject to the minimum $25 MPF. Entries 
that are now considered informal entries as a result of the change in 
the threshold would now be subject to only a $2 MPF (assuming they are 
filed electronically, see 19 CFR 24.23(b)(2)(i)). In the NPRM, CBP 
stated that in fiscal year (FY) 2009, 476,081 formal entries, valued 
between $2,000 and $2,500, were processed which were not subject to 
free trade agreements and were subject to the $25 MPF. Since the 
publication of the NPRM, these formal entries have increased from 
476,081 entries in FY 2009 to 558,259 entries for FY 2011. 
Consequently, raising the informal entry limited to $2,500 would result 
in a loss of approximately $14 million in revenues if the $25 MPF were 
not collected for these entries in FY 2011 (558,259 x $25 = $14.0 
million). Revenues would now be approximately $1 million (558,259 x $2 
= $1.1 million), thus the net loss in fees collected would be 
approximately $13 million ($14 million - $1 million). We note that the 
estimated loss in net fees collected has increased from approximately 
$11 million estimated in the NPRM to $13 million estimated here for the 
final rule.
    Because the informal entry limit has not kept pace with inflation, 
some importers may have paid a higher MPF than would have been required 
if the informal entry limit had kept pace with inflation. Due to data 
limitations CBP is unable to determine the aggregate savings any 
particular firm will realize if this regulation is finalized. CBP 
estimates importers as a whole, however, will realize a benefit of 
approximately $13 million when this regulation is finalized. CBP notes 
that this benefit to the trade represents a transfer from the 
government.
    Additionally, this increase in the informal entry level meets the 
agreed upon value of $2,500 for the Beyond the Border Initiative. 
Harmonizing the informal entry value thresholds of the United States 
and Canada eliminates one difference in the customs clearance process.

Regulatory Flexibility Act

    This section examines the impact of the rule on small entities as 
required by the Regulatory Flexibility Act (5 U.S.C. 601 et. seq.), as 
amended by the Small Business Regulatory Enforcement and Fairness Act 
of 1996. A small entity may be a small business (defined as any 
independently owned and operated business not dominant in its field 
that qualifies as a small business per the Small Business Act); a small 
not-for-profit organization; or a small governmental jurisdiction 
(locality with fewer than 50,000 people).
    CBP has considered the impact of this rule on small entities. To 
the extent that this rule affects small entities, these entities would 
experience a small cost savings on a per-transaction basis. The total 
cost savings per entity would be based on its annual transaction 
levels. CBP does not believe such a small cost savings would rise to 
the level of a ``significant economic impact.'' During the comment 
period for the NPRM, CBP did not receive any comments that would amend 
this conclusion. Thus, CBP certifies that this rule will not have a 
significant impact on a substantial number of small entities.

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by State, local, and 
tribal governments, in the aggregate, or by the

[[Page 72718]]

private sector, of $100 million or more in any one year, and it will 
not significantly or uniquely affect small governments. Therefore, no 
actions are necessary under the provisions of the Unfunded Mandates 
Reform Act of 1995.

Executive Order 13132 (Federalism)

    Executive Order 13132 requires CBP to develop a process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
Policies that have federalism implications are defined in the Executive 
Order to include rules that have ``substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government.'' CBP has analyzed the rule in accordance 
with the principles and criteria in the Executive Order and has 
determined that it does not have federalism implications or a 
substantial direct effect on the States. The rule increases the 
informal entry limit from $2,000 to $2,500 and removes the formal entry 
list. States do not conduct activities with which this rule would 
interfere. For this reason, this rule would not have sufficient 
federalism implications to warrant the preparation of a federalism 
summary impact statement.

Executive Order 12988 (Civil Justice Reform)

    This rule meets the applicable standards set forth in sections 3(a) 
and 3(b)(2) of Executive Order 12988. That Executive Order requires 
agencies to conduct reviews, before proposing legislation or 
promulgating regulations, to determine the impact of those proposals on 
civil justice and potential issues for litigation. The Order requires 
that agencies make reasonable efforts to ensure that a regulation 
clearly identifies preemptive effects, effects on existing Federal laws 
and regulations, any retroactive effects of the proposal, and other 
matters. CBP has determined that this regulation meets the requirements 
of Executive Order 12988 because it does not involve retroactive 
effects, preemptive effects, or other matters addressed in the Order.

National Environmental Policy Act

    Increasing the informal entry limit, removing the formal entry 
list, and amending the regulations to reflect a recent statutory 
amendment that increased the ad valorem Merchandise Processing Fee 
(MPF) from 0.21 percent to 0.3464 percent, is non-invasive and there is 
no potential environmental impact of any kind. Therefore, an 
environmental statement under the National Environmental Policy Act of 
1969 (NEPA; 42 U.S.C. 4321 et seq.) is not required.

Paperwork Reduction Act

    The collection of information on the Entry Summary and Informal 
Entry has been previously reviewed and approved by OMB in accordance 
with the requirements of the Paperwork Reduction Act (44 U.S.C. 3507) 
under control number 1651-0022. This collection of information is used 
to identify imported merchandise entering the commerce of the United 
States, to document the amount of duty and/or tax paid, and to serve as 
a record of the import transaction for the purposes of required 
certifications, enforcement information, and statistical data. An 
agency may not conduct or sponsor and an individual is not required to 
respond to a collection of information unless it displays a valid OMB 
control number. This rule does not implicate recordkeeping 
requirements; however, please note that the recordkeeping requirements 
for the filing of informal and formal entries are covered in part 163 
of title 19 of the CFR (19 CFR part 163), and are approved under OMB 
control number 1651-0076.

Signing Authority

    This document is being issued in accordance with 19 CFR 0.1(a)(1) 
pertaining to the Secretary of the Treasury's authority (or that of his 
delegate) to approve regulations related to certain customs revenue 
functions.

List of Subjects

19 CFR Parts 10, 123, 128, 141, 143, and 145

    Customs duties and inspection, Reporting and recordkeeping 
requirements.

19 CFR Parts 24 and 148

    Customs duties and inspection, Reporting and recordkeeping 
requirements, Taxes.

19 CFR Part 102

    Canada, Customs duties and inspection, Imports, Mexico, Reporting 
and recordkeeping requirements, Trade agreements.

Amendments to the CBP Regulations

    For the reasons set forth in the preamble, parts 10, 24, 102, 123, 
128, 141, 143, 145, and 148 of title 19 of the CFR (19 CFR parts 10, 
24, 102, 123, 128, 141, 143, 145, and 148) are amended as set forth 
below.

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

0
1. The general authority citation for part 10 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 
1498, 1508, 1623, 1624, 3314.
* * * * *


Sec.  10.1  [Amended]

0
2. In Sec.  10.1:
0
a. Paragraph (a) introductory text is amended by removing the word 
``shall'' and adding in its place the word ``must'', and by removing 
the sum ``$2,000'' and adding in its place the sum ``$2,500'';
0
b. Paragraph (a)(1) is amended by revising``19------'' to read ``20----
--'';
0
c. Paragraph (a)(2) introductory text is amended in the last sentence 
by removing the word ``shall'' and adding in its place the word 
``must'';
0
d. Paragraph (b) is amended by removing the sum ``$2,000'' and adding 
in its place the sum ``$2,500'';
0
e. Paragraph (e) is amended by removing the word ``shall'' and adding 
in its place the word ``will'';
0
f. Paragraph (f) is amended by removing the word ``shall'' each place 
that it appears and adding in its place the word ``must'';
0
g. Paragraph (g)(1) is amended by:
0
i. Removing the word ``Customs'' each place that it appears and adding 
in its place the term ``CBP'';
0
ii. Removing the word ``shall'' the first time that it appears and 
adding in its place the word ``must''; and
0
iii. Removing the word ``shall'' in the last sentence and adding in its 
place the word ``will'';
0
h. Paragraph (g)(2) introductory text is amended by removing the word 
``shall'' and adding in its place the word ``must'', and by removing 
the word ``Customs'' and adding in its place the term ``CBP'';
0
i. Paragraph (g)(3) is amended by removing the word ``Customs'' and 
adding in its place the term ``CBP'', and removing the word ``shall'' 
and adding in its place the word ``will'';
0
j. Paragraph (h)(1) introductory text is amended by removing the word 
``Customs'' each place that it appears and adding in its place the term 
``CBP'', and removing the word ``shall'' each place that it appears and 
adding in its place the word ``must'';
0
k. Paragraph (h)(2) is amended by removing the word ``shall'' and 
adding in its place the word ``will'', and by removing the word 
``Customs'' and adding in its place the term ``CBP'';

[[Page 72719]]

0
l. Paragraph (h)(3) introductory text is amended by removing the word 
``Customs'' each place that it appears and adding in its place the term 
``CBP'', and removing the word ``shall'' and adding in its place the 
word ``must'';
0
m. Paragraph (h)(4) introductory text is amended by removing the word 
``shall'' and adding in its place the word ``must'';
0
n. Paragraph (h)(5) is amended by removing the word ``Customs'' and 
adding in its place the term ``CBP'', and removing the word ``shall'' 
and adding in its place the word ``will'';
0
o. Paragraph (i) is amended by removing in the first sentence the word 
``Customs'' the first two times it appears and adding in its place the 
term ``CBP'', and by removing the word ``shall'' each place that it 
appears and adding in its place the word ``must''; and
0
p. Paragraph (j)(2) is amended by removing the word ``Customs'' each 
place that it appears and adding in its place the term ``CBP'', and by 
removing the word ``shall'' each place that it appears and adding in 
its place the word ``must''.

PART 24--CUSTOMS AND FINANCIAL ACCOUNTING PROCEDURE

0
3. The general authority citations for part 24 is revised and the 
specific authority citation for Sec.  24.23 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General 
Note 3(i), Harmonized Tariff Schedule of the United States), 1505, 
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 3717, 9701; Pub. L. 107-
296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).
* * * * *
    Section 24.23 also issued under 19 U.S.C. 3332;
* * * * *


Sec.  24.23  [Amended]

0
4. In Sec.  24.23:
0
a. Paragraph (a)(4) introductory text is amended by removing the word 
``shall'' and adding in its place the word ``must'';
0
b. Paragraph (b)(1)(i)(A) is amended by removing the sum ``$2,000'' and 
adding in its place the sum ``$2,500''; and by removing the number 
``0.21'' each place it appears and adding in its place the number 
``0.3464'';
0
c. Paragraph (b)(1)(i)(B) is amended by removing the word ``shall'' 
each place that it appears and adding in its place the word ``must'';
0
d. Paragraph (b)(1)(ii) is amended by removing the word ``shall'' each 
place that it appears and adding in its place the word ``will'';
0
e. Paragraph (b)(3) is amended by removing the sum ``$2,000'' and 
adding in its place the sum ``$2,500'';
0
f. Paragraph (b)(4) introductory text is amended by removing the sum 
``$2,000'' and adding in its place the sum ``$2,500'';
0
g. Paragraph (c)(1) introductory text is amended by removing the word 
``shall'' and adding in its place the word ``will'';
0
h. Paragraphs (c)(2)(i) and (ii) are amended by removing the word 
``shall'' and adding in its place the word ``will'';
0
i. Paragraph (c)(3) is amended by removing the word ``shall'' each 
place that it appears and adding in its place the word ``will'';
0
j. Paragraph (c)(4) is amended by removing the word ``shall'' and 
adding in its place the word ``will'';
0
k. Paragraph (c)(5) is amended by:
0
i. Removing the word ``shall'' and adding in its place the word 
``will'';
0
ii. Removing the word ``Custons'' and adding in its place the word 
``Customs'';
0
l. Paragraph (d)(1) introductory text is amended by:
0
i. Removing the word ``Customs'' and adding in its place the term 
``CBP''; and
0
ii. Removing the word ``shall'' and adding in its place the word 
``will'';
0
m. Paragraph (d)(2) is amended by:
0
i. Removing the word ``shall'' in the first sentence and adding in its 
place the word ``must'';
0
ii. Removing the word ``Customs'' and adding in its place the term 
``CBP''; and
0
iii. Removing the word ``shall'' in the last sentence and adding in its 
place the word ``will'';
0
n. Paragraph (e)(1) is amended by removing the word ``Customs'', in its 
heading and in its text, each place that it appears and adding in its 
place the word ``customs'', and by removing the word ``shall'' each 
place that it appears and adding in its place the word ``will''; and
0
o. Paragraph (e)(2) is amended by removing the word ``shall'' and 
adding in its place the word ``will'', and by removing the word 
``Customs'' and adding in its place the word ``customs''.

PART 102--RULES OF ORIGIN

0
5. The general authority citation for part 102 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States), 1624, 3314, 3592.
* * * * *


Sec.  102.24  [Amended]

0
6. Section 102.24 is amended by removing paragraph (a), the paragraph 
designation ``(b)'', and the paragraph (b) subject heading and wrapping 
into one paragraph.
* * * * *

PART 123--CBP RELATIONS WITH CANADA AND MEXICO

0
7. The general authority citation for part 123 and the specific 
authority citations for Sec.  123.4 continue to read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States (HTSUS)), 1431, 1433, 1436, 
1448, 1624, 2071 note.
* * * * *
    Section 123.4 also issued under 19 U.S.C. 1484, 1498;
* * * * *


Sec.  123.4  [Amended]

0
8. In Sec.  123.4:
0
a. The introductory text is amended by removing the word ``shall'' and 
adding in its place the word ``must'', and by removing the word 
``Customs'' and adding in its place the term ``CBP'';
0
b. Paragraph (a) is amended by removing the word ``Customs'' and adding 
in its place the term ``CBP'';
0
c. Paragraph (b) is amended by removing the sum ``$2,000'' and adding 
in its place the sum ``$2,500'', and removing the word ``Customs'' each 
place that it appears and adding in its place the term ``CBP'';
0
d. Paragraph (c) is amended by removing the word ``Customs'' and adding 
in its place the term ``CBP''; and
0
e. Paragraph (d) is amended by removing the word ``Customs'' and adding 
in its place the term ``CBP'', and removing the word ``shall'' and 
adding in its place the word ``must''.


Sec.  123.92  [Amended]

0
9. In Sec.  123.92:
0
a. Paragraph (b)(2)(i) is amended by removing the words ``Customs Form 
(CF)'' and adding in its place the term ``CBP Form'';
0
b. Paragraph (b)(2)(ii) is amended by removing the sum ``$2,000'' and 
adding in its place the sum ``$2,500'', and by removing the term ``CF'' 
and adding in its place the words ``CBP Form'';
0
c. Paragraph (b)(2)(iii) is amended by removing the term ``CF'' and 
adding in its place the words ``CBP Form''; and
0
d. Paragraph (c)(2) is amended by removing the term ``Customs'' and 
adding in its place the word ``customs''.

PART 128--EXPRESS CONSIGNMENTS

0
10. The general authority citation for part 128 continues to read as 
follows:

    Authority: 19 U.S.C. 58c, 66, 1202 (General Note 3(i), 
Harmonized Tariff Schedule of the United States), 1321, 1484, 1498, 
1551, 1555, 1556, 1565, 1624.

[[Page 72720]]

Sec.  128.24  [Amended]

0
11. In Sec.  128.24:
0
a. Paragraph (a) is amended by removing the sum ``$2,000'' each place 
that it appears and adding in its place the sum ``$2,500'';
0
b. Paragraph (b) is amended by removing the word ``Customs'' and adding 
in its place the term ``CBP'', and by removing the word ``shall'' and 
adding in its place the word ``must'';
0
c. Paragraph (c) is amended by removing the word ``Customs'' each place 
that it appears and adding in its place the term ``CBP'', and by 
removing the word ``shall'' each place that it appears and adding in 
its place the word ``must'';
0
d. Paragraph (d) is amended by removing the word ``Customs'' and adding 
in its place the term ``CBP''; and
0
e. Paragraph (e) introductory text is amended by removing the word 
``shall'' and adding in its place the word ``will''.

PART 141--ENTRY OF MERCHANDISE

0
12. The general authority citation for part 141 is revised to read as 
follows:

    Authority: 19 U.S.C. 66, 1448, 1484, 1498, 1624.
* * * * *


Sec.  141.82  [Amended]

0
13. In Sec.  141.82:
0
a. Paragraphs (b) and (c) are amended by removing the word ``shall'' 
each place that it appears and adding in its place the word ``must''; 
and
0
b. Paragraph (d) is amended by:
0
i. Removing the sum ``$2,000'' and adding in its place the sum 
``$2,500'';
0
ii. Removing the words ``Sections VII, VIII, XI, and XII; Chapter 94; 
and''; and
0
iii. Adding the symbol '')'' after the word ``States''.

PART 143--SPECIAL ENTRY PROCEDURES

0
14. The general authority citation for part 143 is revised to read as 
follows:

    Authority: 19 U.S.C. 66, 1321, 1414, 1481, 1484, 1498, 1624, 
1641.
* * * * *


Sec.  143.21  [Amended]

0
15. In Sec.  143.21:
0
a. Paragraphs (a) and (b) are amended by removing the sum ``$2,000'' 
and adding in its place the sum ``$2,500'';
0
b. Paragraph (a) is further amended by removing the words ``Sections 
VII, VIII, XI, and XII; Chapter 94 and'';
0
c. Paragraph (c) is amended by:
0
i. Removing the sum ``$2,000'' and adding in its place the sum 
``$2,500'';
0
ii. Removing the citation ``Sec.  141.51'' and adding in its place the 
citation ``Sec.  141.52''; and
0
iii. Removing the words ``subheadings from Sections VII, VIII, XI, and 
XII; or in Chapter 94 and'';
0
d. Paragraphs (f) and (g) are amended by removing the sum ``$2,000'' 
and adding in its place the sum ``$2,500'';
0
e. Paragraph (j) is amended by removing the word ``Customs'' and adding 
in its place the term ``CBP'';

0
16. Section 143.22 is revised to read as follows:


Sec.  143.22  Formal entry may be required.

    The port director may require a formal consumption or appraisement 
entry for any merchandise if deemed necessary for import admissibility 
enforcement purposes; revenue protection; or the efficient conduct of 
customs business. Individual shipments for the same consignee, when 
such shipments are valued at $2,500 or less, may be consolidated on one 
such entry.


Sec.  143.23  [Amended]

0
17. In Sec.  143.23:
0
a. The introductory text is amended by removing the word ``shall'' and 
adding in its place the word ``must'', and by removing the word 
``Customs'' each time it appears and adding in its place the term 
``CBP'';
0
b. Paragraphs (b) and (c) are amended by removing the word ``Customs'' 
and adding in its place the term ``CBP'';
0
c. Paragraph (d) is amended by:
0
i. Removing the sum ``$2,000'' and adding in its place the sum 
``$2,500'';
0
ii. Removing the word ``Customs'' and adding in its place the term 
``CBP''; and
0
iii. Removing the words ``Sections VII, VIII, XI, and XII; Chapter 94; 
and'';
0
d. Paragraph (e) is amended by removing the word ``can'' and adding in 
its place the word ``may'';
0
e. Paragraphs (f), (g), (h)(1), and (h)(2) introductory text are 
amended by removing the word ``Customs'' each time it appears and 
adding in its place the term ``CBP''; and
0
f. Paragraph (i) is amended by removing the sum ``$2,000'' and adding 
in its place the sum ``$2,500''.


Sec.  143.26  [Amended]

0
18. In Sec.  143.26:
0
a. Paragraph (a) is amended by removing, in its heading and in its 
text, the sum ``$2,000'' each place that it appears and adding in its 
place the sum ``$2,500'', and by removing the word ``Customs'' and 
adding in its place the word ``customs''; and
0
b. Paragraph (b) is amended by removing the space between 
``appropriatel'' and ``y'' to read ``appropriately'', and by removing 
the word ``Customs'' and adding in its place the word ``customs''.

PART 145--MAIL IMPORTATIONS

0
19. The general authority citation for part 145 and the specific 
authority citations for Sec. Sec.  145.4, 145.12, 145.31, 145.35, 
145.41 continue to read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Notice 3(i), Harmonized 
Tariff Schedule of the United States), 1624.
* * * * *
    Section 145.4 also issued under 18 U.S.C. 545, 19 U.S.C. 1618;
* * * * *
    Section 145.12 also issued under 19 U.S.C. 1315, 1484, 1498;
* * * * *
    Section 145.31 also issued under 19 U.S.C. 1321;
    Section 145.35 through 145.38, 145.41, also issued under 19 
U.S.C. 1498;
* * * * *


Sec.  145.4  [Amended]

0
20. In Sec.  145.4:
0
a. Paragraph (a) is amended by removing the word ``Customs'' the first 
time it appears and adding in its place the term ``CBP'', and by 
removing the word ``Customs'' the second time it appears and adding in 
its place the word ``customs''; and
0
b. Paragraph (c) is amended by:
0
i. Removing the sum ``$2,000'' and adding in its place the sum 
``$2,500'';
0
ii. Removing the word ``Customs'' and adding in its place the term 
``CBP''; and
0
iii. Removing the word ``shall'' and adding in its place the word 
``must''.


Sec.  145.12  [Amended]

0
21. In Sec.  145.12:
0
a. Paragraph (a)(2) is amended by removing the word ``shall'' and 
adding in its place the word ``will'', and by removing the sum 
``$2,000'' and adding in its place the sum ``$2,500'';
0
b. Paragraph (a)(3) is amended by:
0
i. Removing the sum ``$2,000'' each place that it appears and adding in 
its place the sum ``$2,500'';
0
ii. Removing the word ``Customs'' the first time that it appears and 
adding in its place the term ``CBP'';
0
iii. Removing the word ``Customs'' the second time that it appears and 
adding in its place the word ``customs''; and
0
iv. Removing the words ``shall not'' and adding in its place the word 
``cannot'';
0
c. Paragraph (a)(4) is amended by:
0
i. Removing the word ``shall'' in the first and second sentence and 
adding in its place the word ``will'';
0
ii. Removing the word ``shall'' in the last sentence and adding in its 
place the word ``must''; and
0
iii. Removing the word ``Customs'' and adding in its place the term 
``CBP'',

[[Page 72721]]

and adding the word, ``customs'' before the word, ``station'';
0
d. Paragraph (b)(1) is amended by:
0
i. Removing the word ``Customs'' each place that it appears and adding 
in its place the term ``CBP'';
0
ii. Removing the word ``shall'' each place that it appears and adding 
in its place the word ``will'';
0
iii. Removing the sum ``$2,000'' and adding in its place the sum 
``$2,500''; and
0
iv. Removing the word ``shall'' and adding in its place the word 
``will'';
0
e. Paragraph (b)(2) is amended by removing the word ``shall'' and 
adding in its place the word ``will'', and by removing the word 
``Customs'' and adding in its place the term ``CBP'';
0
f. Paragraph (c) is amended by:
0
i. Removing, in its heading and in its text, the sum ``$2,000'' and 
adding in its place the sum $2,500'';
0
ii. Removing the word ``Customs'' each place that it appears in the 
first sentence and adding in its place the term ``CBP'';
0
iii. Removing the words ``Customs treatment'' in the third sentence and 
adding in its place the words ``customs treatment'';
0
iv. Removing the words ``Customs office'' and adding in its place the 
words ``CBP office''; and
0
v. Removing the word ``shall'' each place that it appears and adding in 
its place the term ``will'';
0
g. Paragraph (e)(1) is amended by removing the word ``Customs'' in each 
place that it appears and adding in its place the term ``CBP'', and by 
removing the word ``shall'' and adding in its place the word ``will''; 
and
0
h. Paragraph (e)(2) is amended by:
0
i. Removing the words ``Customs Form'' each place that it appears, in 
its heading and its text, and adding in its place the words ``CBP 
Form'';
0
ii. Removing the words ``Customs officer'' and adding in its place the 
words ``CBP officer'';
0
iii. Removing the words ``Customs purposes'' and adding in its place 
the words ``customs purposes'';
0
iv. Removing the word ``shall'' in the first sentence and adding in its 
place the word ``must''; and
0
v. Removing the word ``shall'' in the second sentence and adding in its 
place the word ``will''.


Sec.  145.31  [Amended]

0
22. Section 145.31 is amended by removing the word ``shall'' and adding 
in its place the word ``will''.


Sec.  145.35  [Amended]

0
23. Section 145.35 is amended by removing the sum ``$2,000'' and adding 
in its place the sum ``$2,500''.


Sec.  145.41  [Amended]

0
24. Section 145.41 is amended by removing the sum ``$2,000'' and adding 
in its place the sum ``$2,500''.

PART 148--PERSONAL DECLARATIONS AND EXEMPTIONS

0
25. The general authority citation for part 148 is revised and the 
specific authority citations for Sec.  148.51 and 148.64 continue to 
read as follows:

    Authority: 19 U.S.C. 66, 1496, 1498, 1624. The provisions of 
this part, except for subpart C, are also issued under 19 U.S.C. 
1202 (General Note 3(i), Harmonized Tariff Schedule of the United 
States).
* * * * *
    Sections 148.43, 148.51, 148.63, 148.64, 148.74 also issued 
under 19 U.S.C. 1321;
* * * * *


Sec.  148.23  [Amended]

0
26. In Sec.  148.23:
0
a. Paragraph (c)(1) is amended by removing, in its heading and in its 
text, the sum ``$2,000'' and adding in its place the sum ``$2,500'';
0
b. Paragraph (c)(1) is further amended by removing, in the text, the 
words ``Sections VII, VIII, XI, and XII; Chapter 94; and'';
0
c. Paragraph (c)(2) is amended by removing, in its heading and in its 
text, the sum ``$2,000'' and adding in its place the sum ``$2,500''; 
and
0
d. Paragraph (c)(2) is further amended by removing the words ``Sections 
VII, VIII, XI, and XII; Chapter 94; and''.


Sec.  148.54  [Amended]

0
27. In Sec.  148.54
0
a. Paragraph (b) is amended by removing the word ``shall'' and adding 
in its place the word ``must'', and by removing the sum ``$250'' and 
adding in its place the sum``$2,500''; and
0
b. Paragraph (c) is amended by removing the word ``shall'' each place 
that it appears and adding in its place the word ``will''.

David V. Aguilar,
Deputy Commissioner, U.S. Customs and Border Protection.
    Approved: November 28, 2012.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2012-29193 Filed 12-5-12; 8:45 am]
BILLING CODE 9111-14-P