Electronic Notice of Liquidation, 71019-71025 [2016-24858]

Agencies

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

[Federal Register Volume 81, Number 199 (Friday, October 14, 2016)]
[Proposed Rules]
[Pages 71019-71025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-24858]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 159 and 173

[USCBP-2016-0065]
RIN 1515-AE16


Electronic Notice of Liquidation

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

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: This document proposes to amend the U.S. Customs and Border 
Protection (CBP) regulations to reflect that official notice of 
liquidation, suspension of liquidation, and extension of liquidation 
will be posted electronically on the CBP Web site. This document also 
proposes regulatory revisions to reflect that official notice of 
liquidation will no longer be posted at the customhouses or stations 
and that official notices of suspension of liquidation and extension of 
liquidation will no longer be mailed. Additionally, this document 
proposes to make certain technical corrections to the CBP regulations.

DATES: Comments must be received on or before November 14, 2016.

ADDRESSES: You may submit comments identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments via docket number 
USCBP-2016-0065.
     Mail: Regulations and Rulings, Office of Trade, U.S. 
Customs and Border Protection, Attention: Trade and Commercial 
Regulations Branch, 90 K Street NE., 10th Floor, Washington, DC 20229-
1177.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to https://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on this rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read comments received, go to 
https://www.regulations.gov. Submitted comments may also be inspected on 
regular business days between the hours of 9 a.m. and 4:30 p.m. at 
Regulations and Rulings, Office of Trade, U.S. Customs and Border 
Protection, 90 K Street, NE., 10th Floor, Washington, DC. Arrangements 
to inspect submitted comments should be made in advance by calling Mr. 
Joseph Clark at (202) 325-0118.

FOR FURTHER INFORMATION CONTACT: Virginia McPherson, ACE Business 
Office, Office of Trade, 571-468-5181, or 
virginia.h.mcpherson@cbp.dhs.gov. Randy Mitchell, Trade Policy and 
Programs, Office of Trade, 202-863-6532, or randy.mitchell@cbp.dhs.gov.

SUPPLEMENTARY INFORMATION:

Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of this 
proposed rule. U.S. Customs and Border Protection (CBP) also invites 
comments that relate to the economic, environmental, or federalism 
effects that might result from this regulatory change. Comments that 
will provide the most assistance to CBP will reference a specific 
portion of the rule, explain the reason for any recommended change, and 
include data, information or authority that support such recommended 
change. See ADDRESSES above for information on how to submit comments.

I. Background

A. Statutory Authority

    Section 500 of the Tariff Act of 1930, as amended (19 U.S.C. 1500), 
provides CBP with the authority, under rules and regulations prescribed 
by the Secretary, to, among other things, give or transmit notice of 
liquidation pursuant to an electronic data interchange system. See 19 
U.S.C. 1500(e). Similarly, CBP is authorized to give notice of 
extension of liquidation in such form and manner (which may include 
electronic transmittal) as prescribed by regulation and notice of 
suspension of liquidation in such manner as considered appropriate. See 
19 U.S.C. 1504(b) and (c). Additionally, the National Customs 
Automation Program (NCAP) was established by Subtitle B of Title VI--
Customs Modernization, in the North American Free Trade Agreement 
Implementation Act (Pub. L. 103-182, 107 Stat. 2057, December 8, 1993), 
to provide for, among other things, the electronic status of 
liquidation. See 19 U.S.C. 1411.

B. Current Regulations and Procedures

    CBP defines ``liquidation'' in section 159.1 of title 19 of the 
Code of Federal Regulations (CFR) as the final computation or 
ascertainment of duties on entries for consumption or drawback entries. 
See 19 CFR 159.1. Currently, notices of liquidation for formal entry, 
including notices of liquidation by operation of law, are physically 
posted in the customhouse or station at the port of entry on CBP Form 
4333, and this physical posting is deemed the legal evidence of 
liquidation and provides the date of liquidation. See 19 CFR 159.9(a)-
(c). The date of liquidation is important if an importer chooses to 
protest CBP's decision as to the final computation or ascertainment of 
duties on entries for consumption or drawback entries. The protest must 
be filed within a specified number of days from the date of 
liquidation. See 19 CFR 174.12(e).

[[Page 71020]]

    Generally, the bulletin notice of liquidation is prepared on 
Thursday afternoons and is placed in the public area at the customhouse 
or station for display so that the public may view it beginning each 
Friday morning. Each port has a sign posted in a conspicuous place, in 
accordance with 19 CFR 159.9(b), directing the public to the bulletin 
notice.
    Courtesy notices of liquidation are sent via a CBP-authorized 
electronic data interchange system or physically mailed on CBP Form 
4333-A. See 19 CFR 159.9(d). CBP generally sends the electronic 
courtesy notice before the posting of official notice. However, because 
a paper courtesy notice may be received at or about the time the 
bulletin notice of liquidation has been physically posted, there may be 
a delay between the official date of liquidation and when the paper 
courtesy notice is received. Liquidation of an entry may be extended or 
suspended. See 19 U.S.C. 1504; 19 CFR 159.12 and 159.51. When extension 
or suspension occurs, official notices are mailed on an appropriately 
modified CBP Form 4333-A, in accordance with 19 CFR 159.12(b) and (c), 
and courtesy notices of extension or suspension are provided 
electronically for electronic filers.
    Individuals interested in perusing the bulletin notices must 
physically go to the customhouse. In most instances, CBP liquidates 
entries without changing the duties, fees or charges asserted by the 
importer; therefore there is generally no need to know the exact date 
of liquidation for most entries. However, as stated above, the exact 
date of liquidation is important if an importer wishes to timely file a 
protest challenging any of the decisions about an entry that are 
subsumed into the liquidation and enumerated in 19 U.S.C. 1514(a). CBP 
estimates that protesters or their representatives take 2,500 trips to 
U.S. customhouses or stations each year to physically view the official 
bulletin notice. In addition, physically posting the bulletin notice of 
liquidation, repeated at each customhouse every week, is laborious and 
time-consuming.

II. Modernizing Notice of Liquidation

A. Electronic Notice

    In this document, CBP is proposing to post official notice of 
liquidation for all entries, including entries filed in paper form, as 
well as official notices regarding the extension or suspension of 
liquidation, at www.cbp.gov. This proposed electronic posting will 
replace both the physical posting or lodging of bulletin notices in the 
customhouse as the legal evidence of liquidation and the mailed notices 
of extension or suspension as official notice. The information will be 
accessible via a conspicuous link on the www.cbp.gov Web site, labeled 
Bulletin Notices of Liquidation. Accordingly, upon the effective date 
of these regulations, CBP would no longer physically post bulletin 
notice of liquidation in the customhouse or station or mail notices of 
suspension or extension.
    The electronic bulletin notices will be searchable on the CBP Web 
site by using two or more of the following data elements:

1. Entry Number
2. Filer
3. Importer of Record Number
4. Port of Entry
5. Liquidation Date (with searchable date range)
6. Posted Date (date of posting of event with searchable date range)
7. Entry Date (with searchable date range)
8. Event Type (such as, Liquidated, Re-liquidated, Suspended, 
Extended)
9. Basis (Reason for the liquidation, suspension or extension)
10. Action (CBP's final determination of the duties, taxes, and fees 
due on the entry, i.e., No Change; Change Increase; Change Decrease)

For example, conducting a search by entering the port of entry and 
selecting a posted date would return results for all notices posted for 
that port for that date. However, searching with the fields specific to 
an interested party, such as entry number or importer of record number, 
will return more targeted results. When viewing the results of a 
search, importer of record numbers will not be displayed on the CBP Web 
site. CBP may add more search fields as additional capabilities are 
deployed.
    The liquidation information posted electronically will be updated 
daily. When liquidation notices are posted on www.cbp.gov, there will 
no longer be a need for importers or their representatives to go to the 
customhouse or station to obtain the official date of liquidation. Once 
it has been posted electronically, the information will be available on 
www.cbp.gov for a minimum of 15 months. Notices that are no longer 
available on the CBP Web site will be accessible by CBP personnel. 
Requests for notices that have been removed from the CBP Web site may 
be directed to the relevant port of entry.
    Electronic filers, using their ACE Portal Account, would be able to 
access historical liquidation information that is no longer available 
on the CBP Web site, run queries for information on recent 
liquidations, extensions, and suspensions, run targeted reports to 
conduct in-house audits, identify systemic errors, and provide insight 
into entries under review by CBP, all in support of improved compliance 
with trade laws. Obtaining an ACE Portal Account is free, and 
registration information is available at: https://www.cbp.gov/document/guidance/ace-secure-data-portal-account-application. For more general 
information on ACE Portal Accounts, please see: https://www.cbp.gov/trade/automated/getting-started/using-ace-secure-data-portal.
    In addition to posting the official notice of liquidation on 
www.cbp.gov, CBP intends to continue sending electronic courtesy 
notices of liquidation, extension, and suspension via a CBP-authorized 
electronic data interchange system to the electronic filer when entries 
liquidate or are extended or suspended. However, paper courtesy notices 
of liquidation and paper notices of extension or suspension of 
liquidation will no longer be mailed.

B. Explanation of Proposed Amendments

    This section of the document explains the proposed amendments to 
various parts of title 19 of the Code of Federal Regulations (19 CFR) 
to implement the above-described changes regarding the electronic 
posting of notice. Accordingly, the following sections are proposed to 
be revised as follows:
    CBP is proposing to amend section 159.9 throughout, with one 
exception in paragraph (c)(2)(iii), discussed below, to provide for the 
proposed changes discussed above by replacing references to the 
physical posting or lodging bulletin notice of liquidation, CBP Form 
4333, with references to electronic notice provided on www.cbp.gov, 
including for entries liquidated by operation of law. We propose to 
amend paragraph (c)(1) by removing the last sentence stating that ``CBP 
will endeavor to provide the filer with electronic notification of this 
date as an informal, courtesy notice of liquidation'' because this 
sentence is redundant as paragraph (d) deals with courtesy notices of 
liquidation. This document proposes to also amend paragraph (c)(2)(i) 
by adding the phrase ``and will be posted on www.cbp.gov within a 
reasonable period after each liquidation by operation of law and will 
be dated with the date of liquidation by operation of law'' at the end 
of the paragraph. CBP further proposes deleting paragraph (c)(2)(ii) 
because the proposed changes to paragraph (c)(2)(i) make it redundant. 
This document proposes to renumber paragraph (c)(2)(iii) as (c)(2)(ii) 
and to revise it by adding the phrase ``For liquidation notices posted 
or lodged in the customhouse,'' to the beginning of

[[Page 71021]]

the paragraph to ensure protestants are clear on the responsibility to 
file a timely protest based on the method of posting of notice of 
liquidation if posted in the customhouse prior to the effective date of 
these proposed amendments.
    CBP is proposing to add a new paragraph (c)(2)(iii) for liquidation 
notices posted on www.cbp.gov regarding protests of decisions of 
entries liquidated by operation of law. Further, we propose to amend 
paragraph (d) of section 159.9 to state that courtesy notice of 
liquidation will be provided electronically only for entries that were 
filed electronically.
    Because bulletin notices of liquidation will not be physically 
posted at the customhouse or the station, CBP is proposing to amend 
section 159.10 by removing the words ``posting or lodging of'' in 
paragraph (b), removing the words ``on CBP Form 4333 posted or lodged'' 
in paragraph (c)(1), and by removing the words ``on a bulletin notice 
of liquidation, CBP Form 4333,'' in paragraph (c)(3).
    Also, because bulletin notices of liquidation will not be 
physically posted at the customhouse or the station, we propose to 
amend section 159.11 at paragraph (a) by replacing the words ``on the 
bulletin notice of liquidation, CBP Form 4333,'' with 
``electronically''.
    Additionally, CBP proposes to amend section 159.12 at paragraphs 
(b) and (c) to state that official notice of extension and suspension, 
and the reasons therefor, will be posted on www.cbp.gov and that 
courtesy notice will be sent through a CBP-authorized electronic data 
interchange system. This document proposes to amend paragraph (d)(2) of 
section 159.12 to state that, if the port director finds good cause, 
notice of extension will be posted on www.cbp.gov and a courtesy notice 
will be sent through a CBP-authorized electronic system. CBP further 
proposes to amend paragraph (f)(1) of section 159.12 by removing the 
word ``bulletin'' from the last sentence. This document proposes to 
remove paragraph (g) of section 159.12 because sections 159.9 and 
159.10 already deal with notice of liquidation.

C. Technical Corrections

    CBP is also proposing to make certain technical corrections in this 
document. These proposed amendments update the regulatory language to 
reflect statutory changes.
    Sections 159.11(a) and 159.12(f) refer to the timing of 
liquidation. In addition to the changes made to these sections 
regarding the electronic posting of notice, these sections are also 
being modified to reflect updated language that aligns with 19 U.S.C. 
1504, which was amended in 2004 by the Miscellaneous Trade and 
Technical Corrections Act (Pub. L. 108-429, 118 Stat. 683, December 3, 
2004) to provide that entries are deemed liquidated based on the rate 
of duty, value, quantity, and amount of duties asserted by the importer 
of record regardless of when asserted. The current regulations state 
that an entry may only be deemed liquidated based on the rate, duty, 
value, quantity, and amount of duties asserted by the importer at the 
time of entry. Accordingly, this document proposes to update the 
regulatory language of Sec. Sec.  159.11(a) and 159.12(f)(1) to reflect 
this amendment. Also, as 19 U.S.C. 1504(d) no longer requires CBP, when 
liquidation of an entry continues to be suspended beyond four years due 
to a statute or court order, to liquidate the entry within 90 days from 
when the suspension is removed, CBP is proposing to remove section 
159.12(f)(2).
    Section 173.4a provides for the correction of clerical errors prior 
to liquidation. The section implements section 520 of the Tariff Act of 
1930, as amended (19 U.S.C. 1520). Section 1635 of the Pension 
Protection Act of 2006 (Pub. L. 109-280, 170 Stat. 780, August 17, 
2006) modified 19 U.S.C. 1520. Prior to this amendment, 19 U.S.C. 1520 
authorized refunds prior to liquidation of an entry or reconciliation, 
whenever it is ascertained that excess duties, fees, or exactions have 
been deposited or paid by reason of clerical error. Under the 2006 
amendment, the clause, ``by reason of clerical error,'' was deleted 
from the statute. This document proposes to revise the section heading 
for Sec.  173.4a and updates the regulatory language to reflect this 
amendment.

III. Statutory and Regulatory Requirements

A. Executive Orders 13563 and 12866

    Executive Orders 13563 and 12866 direct agencies to assess the 
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 is not a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866. Accordingly, the Office of 
Management and Budget has not reviewed this regulation.

B. Regulatory Flexibility Act

    This section examines the impact of this rule on small entities per 
the requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et. 
seq.), as amended by the Small Business Regulatory Enforcement and 
Fairness Act of 1996. The Regulatory Flexibility Act (5 U.S.C. 601 et. 
seq.), as amended by the Small Business Regulatory Enforcement and 
Fairness Act of 1996, requires agencies to assess the impact of 
regulations on small entities. 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).
Background
    Most goods imported into the United States are subject to duty 
assessments, which CBP conducts during a process known as liquidation. 
During this liquidation process, CBP performs a final computation of 
duties (not including vessel repair duties) on the entry covering the 
imported merchandise and then closes out the entry. In accordance with 
current regulations, CBP officially notifies importers,\1\ as well as 
the public, of a formal entry's liquidation by posting a weekly 
bulletin notice of liquidation in a readily-located and consulted place 
in the customhouse or station at each port of entry.\2\ These notices 
are available for importers and the public to peruse for nearly two 
weeks before they are placed in CBP storage. CBP provides the same 
official notice of liquidation for informal entries where a duty cannot 
be determined at the time of entry and for reliquidated dutiable 
entries.\3\ For other informal, mail, and baggage entries, CBP 
furnishes official notice of liquidation to an importer (and their 
sureties when required) by a suitable printed statement appearing on 
the receipt issued for duties collected, by release of the merchandise 
under a free entry, or by acceptance of the free entry after release 
under a special permit for immediate delivery.\4\ Once CBP provides 
official notice of liquidation or reliquidation, importers generally 
have 180 days to file a protest challenging certain aspects of

[[Page 71022]]

their entry's liquidation.\5\ In addition to these official notices, 
CBP endeavors to provide importers (and their sureties) informal, 
courtesy notices of liquidation and reliquidation for entries scheduled 
to be liquidated or deemed liquidated by operation of law. For the 
majority of importers filing entries, who actually file electronically, 
CBP generally sends these filers (and their sureties) courtesy notices 
of liquidation and reliquidation via a CBP-authorized electronic data 
interchange system before the official notice (and protest period's 
start date). For the small portion of importers who file entries by 
paper, CBP typically mails paper courtesy notices of liquidation and 
reliquidation using CBP Form 4333-A to these filers on or around the 
date of the official notice's posting. These courtesy notices are not 
direct, formal, and decisive notices of liquidation or reliquidation; 
however, based on anecdotal evidence, most importers rely on these 
courtesy notices to determine liquidations and reliquidations to avoid 
the time and resource costs incurred to view official bulletin notices 
at U.S. customhouses or stations.
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    \1\ For the purposes of this analysis, ``importers'' can also 
refer to agents, such as brokers, who act on behalf of importers.
    \2\ See 19 CFR 159.9(b).
    \3\ See 19 CFR 159.10.
    \4\ See 19 CFR 159.10.
    \5\ For entries filed before December 18, 2004, the time limit 
is within 90 days after liquidation, but for entries filed on or 
after that date, it is now 180 days (see CFR part 174; see 19 U.S.C. 
1514(c)(3) as amended by section 2103(2)(B), Pub. L. 108-429).
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    Some liquidations may be extended or suspended. If liquidation is 
extended or suspended, CBP officially notifies the importer and his/her 
surety by mail using CBP Form 4333-A, as appropriately modified.\6\ CBP 
also provides importers who file entries electronically and their 
sureties with electronic courtesy notices of extension and suspension, 
which are generally sent in advance of mailed notifications. Although 
these courtesy notices are not direct, formal, and decisive notices of 
extension or suspension, CBP believes that most importers (and all 
sureties) rely on them to determine extensions and suspensions because 
importers receive them before the official notice and they contain the 
same information. Importers who file entries by paper do not receive 
electronic or paper courtesy notices of extension and suspension.
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    \6\ See 19 CFR 159.12.
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    In an effort to modernize the liquidation, reliquidation, 
extension, and suspension notification processes, CBP, through this 
rulemaking, proposes to discontinue physically posting official 
bulletin notices of liquidation and reliquidation at U.S. port of entry 
customhouses and stations. Instead, CBP would post these official 
notices in a readily-located, conspicuous place on the CBP Web site: 
www.cbp.gov. Additionally through this rule, CBP would begin posting 
electronically on www.cbp.gov official notices of extension and 
suspension that are currently mailed. CBP would tie all electronic 
notices directly to an already-developed, automated process by which 
entries are liquidated, reliquidated, extended, or suspended, ensuring 
that these actions and CBP's official notifications of these actions 
occur simultaneously. This rule would not change the method in which 
CBP provides electronic courtesy notices of liquidation, reliquidation, 
extension, or suspension, but it would discontinue the practice of 
mailing any paper notices. For other informal, mail, and baggage 
entries, CBP would continue to furnish official notices of liquidation 
and reliquidation to importers (and their sureties when required) by a 
suitable printed statement appearing on the receipt issued for duties 
collected, by release of the merchandise under a free entry, or by 
acceptance of the free entry after release under a special permit for 
immediate delivery. As described next, these regulatory changes would 
introduce benefits and costs to importers, including small entities.
    For most importers (and their sureties), this rule would simply 
change the way in which they can access official notices of 
liquidation, reliquidation, extension, and suspension. Instead of 
posting weekly official bulletin notices of liquidation and 
reliquidation at each U.S. customhouse and station and mailing official 
notices of extension and suspension, CBP would publish these notices on 
the CBP Web site once this rule is in effect. CBP would also 
discontinue mailing all paper courtesy notices of liquidation and 
reliquidation with this rule. Because the vast majority of importers 
(and all their sureties) already rely on the electronic courtesy 
notices of liquidation, reliquidation, extension, and suspension that 
CBP provides, this rule's transition to electronic official notice 
publications would presumably only affect a small portion of importers. 
Specifically, this transition to electronic notice publications would 
only affect those importers who currently rely on official bulletin 
notices physically posted at U.S. customhouses and stations and those 
importers who receive and rely on paper courtesy notifications of 
liquidation and reliquidation and paper official notices of extension 
and suspension due to their paper entry filings.
Number of Small Entities Affected by Rule
    Using historical data, CBP estimates that importers took an average 
of 2,500 trips to U.S. customhouses or stations each year for the 
single purpose of viewing official bulletin notices because the 
official bulletin notice's posting date was significant to a protest 
that importer planned to file.\7\ CBP also estimates that CBP mailed an 
average of 23,500 paper courtesy notices of liquidation and 
reliquidation and 3,100 paper notices of extension and suspension each 
year to importers who filed paper entries.\8\ Considering this 
historical data, CBP estimates that this rule could affect up to 
approximately 29,100 importers per year. To the extent that the same 
importer took more than one trip to the U.S. customhouse or station to 
view an official bulletin notice or received and relied on more than 
one paper notice, the number of importers affected by this rule would 
be lower. Nonetheless, because the majority of importers are small 
businesses, CBP believes this rule would affect a substantial number of 
small entities.
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    \7\ Based on the 2,500 Applications for Further Review (AFRs) 
filed with protests in 2015. Importers or their attorneys who file 
AFRs depend on the exact dates of liquidation or reliquidation to 
file a timely protest, and thus likely travel to a U.S. customhouse 
or station to physically view official bulletin notices with the 
official dates of liquidation and reliquidation. Using the 2015 AFR 
filings as a proxy for trips taken to view official bulletin 
notices, CBP estimates that importers or their attorneys took 2,500 
trips to U.S. customhouses or stations each year for the single 
purpose of viewing official bulletin notices. Sources: 19 CFR 
174.12(e) and email correspondence with CBP's Office of Trade on 
July 15, 2016.
    \8\ Based on data received through email correspondence with 
CBP's Office of Trade on May 26, 2016; June 22-24, 2016; August 29, 
2016; and September 21, 2016.
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Impacts of Rule on Small Entities
    This rule's transition to fully electronic notices would require 
the estimated 29,100 importers who currently rely on official bulletin 
notices physically posted at U.S. customhouses and stations and those 
who rely on paper notices of liquidation, reliquidation, extension, and 
suspension to visit the CBP Web site to determine entry liquidations, 
reliquidations, extensions, and suspensions.\9\ To view this rule's 
official

[[Page 71023]]

bulletin notices on the CBP Web site, CBP assumes that these importers 
would spend an added 4 minutes (0.0667 hours) \10\ navigating the CBP 
Web site to find a liquidation, reliquidation, extension, or suspension 
notice, at a time cost of $2.01 based on the assumed hourly wage rate 
for importers.\11\ Most affected importers would presumably visit the 
CBP Web site once per year to view an entry's official notice of 
liquidation, reliquidation, extension, or suspension, for a total cost 
of $2.01 per year.\12\ However, some affected importers, such as those 
who receive extension and suspension notices that are in effect for an 
unknown amount of time, could visit the CBP Web site more than once per 
year for an entry, incurring the access cost of $2.01 each time they 
visit the CBP Web site. Even if an importer accesses the CBP Web site 
twice a month for an entry, or 24 times per year, he/she would incur 
only a $48.24 cost to do so. The average value per entry was $69,300 in 
FY 2015.\13\ The range of annual importer costs for this rule ($2.01 to 
$48.24) amounts to between 0.003 percent and 0.07 percent of this 
average entry value. Likewise, if an importer processes multiple 
entries per year, his/her total costs from this rule would be higher 
but the value of their entries would also be higher, meaning that the 
average cost to the importer would be between 0.003 percent and 0.07 
percent of the entry value regardless of the number of entries the 
importer files per year. CBP does not consider this to be a significant 
economic impact.
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    \9\ Importers could set up an Automated Commercial Environment 
(ACE) account to receive electronic courtesy notices of liquidation, 
reliquidation, extension, and suspension, but the time cost to do so 
is likely longer than the time it takes to view official notices on 
the CBP Web site. As such, CBP assumes that importers who receive 
and rely on paper notices of liquidation, reliquidation, extension, 
and suspension now would visit the CBP Web site for official notice 
rather than set up an ACE account to receive electronic courtesy 
notices once this rule is effective.
    \10\ The 4-minute added time burden represents the incremental 
change in the time burden over the current paper notification 
process. Source: Email correspondence with CBP's Office of Trade on 
April 26, 2016.
    \11\ The time cost estimate is equal to the assumed hourly wage 
for importers ($30.09) multiplied by the hourly time burden for a 
trade member to navigate the CBP Web site to find a liquidation, 
reliquidation, extension, or suspension notice (0.0667 hours), and 
then rounded. CBP bases the $30.09 hourly wage rate for importers on 
the Bureau of Labor Statistics' (BLS) 2015 median hourly wage rate 
for Cargo and Freight Agents ($20.13), which CBP assumes best 
represents the wage for importers, by the ratio of BLS' average 2015 
total compensation to wages and salaries for Office and 
Administrative Support occupations (1.4799), the assumed 
occupational group for importers, to account for non-salary employee 
benefits. CBP then adjusted this figure, which was in 2015 U.S. 
dollars, to 2016 U.S. dollars by applying a 1.0 percent annual 
growth rate to the figure, as recommended by the U.S. Department of 
Transportation's value of travel time guidance.
    Source of median wage rate: U.S. Bureau of Labor Statistics. 
Occupational Employment Statistics, ``May 2015 National Occupational 
Employment and Wage Estimates, United States- Median Hourly Wage by 
Occupation Code: 43-5011.'' Updated March 30, 2016. Available at 
https://www.bls.gov/oes/2015/may/oes435011.htm. Accessed June 1, 
2016.
    The total compensation to wages and salaries ratio is equal to 
the calculated average of the 2015 quarterly estimates (shown under 
Mar., June, Sep., Dec.) of the total compensation cost per hour 
worked for Office and Administrative Support occupations ($24.9475) 
divided by the calculated average of the 2015 quarterly estimates 
(shown under Mar., June, Sep., Dec.) of wages and salaries cost per 
hour worked for the same occupation category ($16.8575). Source of 
total compensation to wages and salaries ratio data: U.S. Bureau of 
Labor Statistics. Employer Costs for Employee Compensation. Employer 
Costs for Employee Compensation Historical Listing March 2004--March 
2016, ``Table 3. Civilian workers, by occupational group: employer 
costs per hours worked for employee compensation and costs as a 
percentage of total compensation, 2004-2016 by Respondent Type: 
Office and administrative support occupations.'' June 9, 2016. 
Available at https://www.bls.gov/ncs/ect/sp/ececqrtn.pdf. Accessed 
June 14, 2016.
    Source of suggested growth rate: U.S. Department of 
Transportation, Office of Transportation Policy. The Value of Travel 
Time Savings: Departmental Guidance for Conducting Economic 
Evaluations Revision 2 (2015 Update), ``Table 4 (Revision 2-
corrected): Recommended Hourly Values of Travel Time Savings.'' 
April 29, 2015. https://www.transportation.gov/sites/dot.gov/files/docs/Revised%20Departmental%20Guidance%20on%20Valuation%20of%20Travel%20Time%20in%20Economic%20Analysis.pdf. Accessed June 1, 2016.
    \12\ Importers would likely access the CBP Web site once a year 
to determine whether CBP has officially liquidated, reliquidated, 
extended, or suspended their entry. If CBP liquidates or 
reliquidates an entry, which would be the case for the importers who 
currently take 2,500 trips to U.S. customhouses or stations to view 
official bulletin notices and who receive 23,500 paper courtesy 
notices of liquidation and reliquidation annually, the importer 
would likely not have to access the CBP Web site again after the 
initial Web site visit to determine the entry's liquidation status. 
However, in a small number of cases, an importer may have to access 
the Web site more than once per year, over the course of more than 
one year to determine his/her entry's reliquidation status. If CBP 
extends or suspends an entry, which would be the case for the 
importers who receive 3,100 paper notices of extension and 
suspension annually, the importer may have to access the CBP Web 
site more than once per year, over the course of more than one year 
to determine the status of his/her entry's extension or suspension. 
However, considering the typical timeframes of extensions and 
suspensions, importers are most likely to access the CBP Web site 
only once per year for information on their entry's extension or 
suspension. Moreover, importers would likely receive information 
from CBP indicating whether CBP has reliquidated their entry or 
their extension or suspension has ended.
    \13\ Based on fiscal year 2015 U.S. entry and import value data. 
Source of entry data: U.S. Customs and Border Protection. Summary of 
Performance and Financial Information Fiscal Year 2015. May 2016. 
Available at https://www.cbp.gov/sites/default/files/assets/documents/2016-May/summary-performance-financial-info-2015.pdf. 
Accessed September 22, 2016. Source of import value data: U.S. 
Census Bureau. FT920: U.S. Merchandise Trade Selected Highlights--
October 2014 through September 2015 Releases, ``Exhibit 3: U.S. 
Imports--U.S. Customs District of Entry--Total General Customs Value 
by Month.'' December 5, 2014-November 4, 2015. Available at https://www.census.gov/foreign-trade/Press-Release/ft920_index.html. 
Accessed September 22, 2016.
---------------------------------------------------------------------------

    Along with the minor Web site access cost imposed by this rule, 
this rule would provide benefits to importers who currently rely on 
official bulletin notices physically posted at U.S. customhouses and 
stations. This rule's electronic publication of official bulletin 
notices of liquidation and reliquidation would allow these importers to 
avoid visiting U.S. customhouses and stations for formal entry 
liquidation and reliquidation information, which typically occur 2,500 
times a year. For each trip to a U.S. customhouse or station avoided, 
importers would save an estimated 45 minutes (0.75 hours), which would 
result in a time cost saving of $22.57 using the average hourly wage 
for importers of $30.09.\14\ Importers would also save $16.20 in travel 
costs per trip based on the estimated distance members sustain from 
traveling to and from a U.S. customhouse or station--30 miles--and the 
IRS's $0.54 standard mileage rate for business purposes.\15\ To the 
extent that some trips are taken for multiple purposes, not just for 
viewing an official bulletin notice of liquidation or reliquidation, 
fewer costs would be avoided and the benefits of this rule per trip 
would be lower.
---------------------------------------------------------------------------

    \14\ The time cost estimate is equal to the assumed hourly wage 
for importers ($30.09) multiplied by the estimated hourly time 
burden for a trade member to travel to and from a U.S. customhouse 
or station (0.75 hours), and then rounded.
    \15\ Source of miles traveled: Based on estimates from CBP's 
Office of Trade on May 2, 2016. Source of mileage rate: Internal 
Revenue Service. 2016 Standard Mileage Rates for Business, Medical 
and Moving Announced. IR-2015-137, December 17, 2015. Available at 
https://www.irs.gov/uac/Newsroom/2016-Standard-Mileage-Rates-for-Business-Medical-and-Moving-Announced. Accessed April 19, 2016.
---------------------------------------------------------------------------

    The electronic bulletin notices introduced with this rule would 
also provide benefits of eased access, relatively quicker notification, 
and extended viewing to importers. In particular, this electronic 
transition would allow importers to easily view and query a complete, 
consolidated list of U.S. entry liquidations, reliquidations, 
extensions, and suspensions, thus facilitating the process by which 
these individuals obtain such entry information. For importers who 
typically rely on paper courtesy notices for liquidation and 
reliquidation information, which they receive by mail after the 
official notice's posting, this electronic posting would provide the 
added benefit of more timely notice and additional protest time. 
Importers who receive and rely on paper courtesy notices would also 
benefit from this rule's consolidated electronic notice posting. This 
change would allow importers and their agents to view liquidation, 
reliquidation, extension, and suspension notices

[[Page 71024]]

simultaneously instead of individually as they currently do through 
paper notices. Furthermore, importers would have almost 14 more months 
to view official liquidation, reliquidation, extension, and suspension 
notices before having to request access to the notices through CBP.
Conclusion
    Although CBP believes that this rule would affect a substantial 
number of small entities, specifically importers, CBP does not believe 
that the (negative) economic impact of this rule on small entities 
would be significant. Accordingly, CBP certifies that this regulation 
would not have a significant economic impact on a substantial number of 
small entities. CBP welcomes any comments on this conclusion.

C. Paperwork Reduction Act

    As there is no collection of information proposed in this document, 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
are inapplicable.
Signing Authority
    This document is being issued in accordance with Sec.  0.1(a)(1) of 
the CBP Regulations (19 CFR 0.1(a)(1)) pertaining to the authority of 
the Secretary of the Treasury (or his/her delegate) to approve 
regulations related to certain customs revenue functions.

List of Subjects

19 CFR Part 159

    Antidumping, Countervailing duties, Customs duties and inspection, 
Foreign currencies.

19 CFR Part 173

    Administrative practice and procedure, Customs duties and 
inspection.

Proposed Amendments to the CBP Regulations

    For the reasons given above, parts 159 and 173 of title 19 of the 
Code of Federal Regulations (19 CFR parts 159 and 173) are proposed to 
be amended as set forth below:

PART 159--LIQUIDATION OF DUTIES

0
1. The general authority citations for part 159 continues to read as 
follows:

    Authority:  19 U.S.C. 66, 1500, 1504, 1624.
* * * * *
0
2. Section 159.9 is revised to read as follows:


Sec.  159.9  Notice of liquidation and date of liquidation for formal 
entries.

    (a) Notice of liquidation. Notice of liquidation of formal entries 
will be provided on CBP's public Web site, www.cbp.gov.
    (b) Posting of notice. The notice of liquidation will be posted for 
the information of importers in a conspicuous place on www.cbp.gov in 
such a manner that it can readily be located and consulted by all 
interested persons.
    (c) Date of liquidation--(1) Generally. The notice of liquidation 
will be dated with the date it is posted electronically on www.cbp.gov 
for the information of importers. This electronic posting will be 
deemed the legal evidence of liquidation.
    (2) Exception: Entries liquidated by operation of law. (i) Entries 
liquidated by operation of law at the expiration of the time 
limitations prescribed in section 504, Tariff Act of 1930, as amended 
(19 U.S.C. 1504), and set out in Sec. Sec.  159.11 and 159.12, will be 
deemed liquidated as of the date of expiration of the appropriate 
statutory period and will be posted on www.cbp.gov within a reasonable 
period after each liquidation by operation of law and will be dated 
with the date of liquidation by operation of law.
    (ii) For liquidation notices posted or lodged in the customhouse, 
pursuant to section 514, Tariff Act of 1930, as amended (19 U.S.C. 
1514) and part 174 of this chapter, a protest of a decision relating to 
an entry made before December 18, 2004, must be filed within 90 days 
from the date of liquidation of an entry by operation of law or within 
90 days from the date the bulletin notice thereof is posted or lodged 
in the customhouse, or, in the case of a protest of a decision relating 
to an entry made on or after December 18, 2004, within 180 days from 
the date of liquidation of an entry by operation of law.
    (iii) For liquidation notices posted on www.cbp.gov, pursuant to 
section 514, Tariff Act of 1930, as amended (19 U.S.C. 1514) and part 
174 of this chapter, a protest of a decision relating to an entry made 
before December 18, 2004, must be filed within 90 days from the date of 
liquidation of an entry by operation of law or within 90 days from the 
date notice thereof is posted on www.cbp.gov, or, in the case of a 
protest of a decision relating to an entry made on or after December 
18, 2004, within 180 days from the date of liquidation of an entry by 
operation of law.
    (d) Courtesy notice of liquidation. CBP will endeavor to provide 
importers or their agents with a courtesy notice of liquidation for all 
electronically filed entries liquidated by CBP or deemed liquidated by 
operation of law. The courtesy notice of liquidation that CBP will 
endeavor to provide will be electronically transmitted pursuant to a 
CBP authorized electronic data interchange system if the entry was 
filed electronically in accordance with part 143 of this chapter. This 
notice will serve as an informal, courtesy notice and not as a direct, 
formal, and decisive notice of liquidation.


Sec.  159.10  [amended]

0
3. Section 159.10 is amended as follows:
0
a. By removing the words ``posting or lodging of'' from the last 
sentence in paragraph (b);
0
b. By removing the words ``on CBP Form 4333 posted or lodged'' from the 
last sentence of paragraph (c)(1); and
0
c. By removing the words ``on a bulletin notice of liquidation, CBP 
Form 4333,'' from the last sentence of paragraph (c)(3).
0
4. Paragraph (a) of Sec.  159.11 is revised to read as follows:


Sec.  159.11  Entries liquidated by operation of law.

    (a) Time limit generally. Except as provided in Sec.  159.12, an 
entry not liquidated within one year from the date of entry of the 
merchandise, or the date of final withdrawal of all merchandise covered 
by a warehouse entry, will be deemed liquidated by operation of law at 
the rate of duty, value, quantity, and amount of duties asserted by the 
importer of record. Notice of liquidation will be given electronically 
as provided in Sec. Sec.  159.9 and 159.10(c)(3). CBP will endeavor to 
provide a courtesy notice of liquidation in accordance with Sec.  
159.9(d).
* * * * *
0
5. In Sec.  159.12, remove paragraph (g) and revise paragraphs (b), 
(c), (d)(2), and (f) to read as follows:


Sec.  159.12  Extension of time for liquidation.

* * * * *
    (b) Notice of extension. If the port director extends the time for 
liquidation, as provided in paragraph (a)(1) of this section, the 
official notice of extension and reasons therefor will be posted on 
www.cbp.gov. The port director will also endeavor to transmit a 
courtesy notice of extension to the entry filer and surety through a 
CBP-authorized electronic data interchange system.
    (c) Notice of suspension. If the liquidation of an entry is 
suspended as required by statute or court order, as provided in 
paragraph (a)(2) of this section, the official notice of suspension

[[Page 71025]]

will be posted on www.cbp.gov. The port director will also endeavor to 
transmit a courtesy notice of suspension to the entry filer and surety 
through a CBP-authorized electronic data interchange system.
    (d) * * *
    (1) * * *
    (2) At importer's request. If the statutory period has been 
extended for one year at the importer's request, and the importer 
thereafter determines that additional time is necessary, it may request 
another extension in writing before the original extension expires, 
giving reasons for its request. If the port director finds that good 
cause (as defined in paragraph (a)(1)(ii) of this section) exists, the 
official notice of extension extending the time for liquidation for an 
additional period not to exceed one year will be posted on www.cbp.gov, 
and CBP will endeavor to transmit a courtesy notice of the extension 
through a CBP-authorized electronic data interchange system.
* * * * *
    (f) Time limitation. An entry not liquidated within four years from 
either the date of entry, or the date of final withdrawal of all the 
merchandise covered by a warehouse entry, will be deemed liquidated by 
operation of law at the rate of duty, value, quantity, and amount of 
duty asserted by the importer of record, unless liquidation continues 
to be suspended by statute or court order. CBP will endeavor to provide 
a courtesy notice of liquidation, in accordance with Sec.  159.9(d), in 
addition to the notice specified in Sec.  159.9(c)(2)(ii).

PART 173--ADMINISTRATIVE REVIEW IN GENERAL

0
6. The general authority citations for part 173 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1501, 1520, 1624.
0
7. Revise Sec.  173.4a to read as follows:


Sec.  173.4a  Refund of excess duties, fees, charges, or exaction paid 
prior to liquidation.

    Pursuant to section 520(a)(4), Tariff Act of 1930, as amended (19 
U.S.C. 1520(a)(4)), whenever an importer of record declares or it is 
ascertained that excess duties, fees, charges, or exactions have been 
deposited or paid, the port director may, prior to liquidation of an 
entry or reconciliation, take appropriate action to refund the deposit 
or payment of excess duties, fees, charges, or exactions.

R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border Protection.
    Approved: October 11, 2016.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2016-24858 Filed 10-13-16; 8:45 am]
 BILLING CODE 9111-14-P