Electronic Notice of Liquidation, 89375-89381 [2016-29656]
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Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Incorporation by reference,
Safety.
Adoption of the Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as
follows:
PART 39—AIRWORTHINESS
DIRECTIVES
1. The authority citation for part 39
continues to read as follows:
■
Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13
[Amended]
2. The FAA amends § 39.13 by adding
the following new airworthiness
directive (AD):
■
2016–25–04 Fokker Services B.V.:
Amendment 39–18730; Docket No.
FAA–2015–7530; Directorate Identifier
2014–NM–257–AD.
(a) Effective Date
This AD is effective January 17, 2017.
(b) Affected ADs
None.
(i) Related Information
(c) Applicability
This AD applies to all Fokker Services B.V.
Model F28 Mark 0070 and 0100 airplanes,
certificated in any category.
(d) Subject
Air Transport Association (ATA) of
America Code 57, Wings.
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(f) Compliance
Comply with this AD within the
compliance times specified, unless already
done.
(g) Inspection
Within 12 months after the effective date
of this AD: Do a detailed inspection for
cracking of the trailing edge rib at wing
station 8700, in accordance with the
Accomplishment Instructions of Fokker
Service Bulletin SBF100–57–048, dated
October 27, 2014. If any crack is found,
before further flight, repair using a method
approved by the Manager, International
Branch, ANM–116, Transport Airplane
Directorate, FAA; or the European Aviation
Safety Agency (EASA); or Fokker Services
B.V.’s EASA Design Organization Approval
(DOA).
(h) Other FAA AD Provisions
The following provisions also apply to this
AD:
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Refer to Mandatory Continuing
Airworthiness Information (MCAI) European
AD 2014–0271, dated December 12, 2014, for
related information. This MCAI may be
found in the AD docket on the Internet at
https://www.regulations.gov by searching for
and locating Docket No. FAA–2015–7530.
(j) Material Incorporated by Reference
(e) Reason
This AD was prompted by report of
cracking in the secondary structure of the
wing at station 8700. We are issuing this AD
to detect and correct cracking that could lead
to failure of the affected rib and consequent
reduced control of the airplane.
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(1) Alternative Methods of Compliance
(AMOCs): The Manager, International
Branch, ANM–116, Transport Airplane
Directorate, FAA, has the authority to
approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19.
In accordance with 14 CFR 39.19, send your
request to your principal inspector or local
Flight Standards District Office, as
appropriate. If sending information directly
to the International Branch, send it to ATTN:
Tom Rodriguez, Aerospace Engineer,
International Branch, ANM–116, Transport
Airplane Directorate, FAA, 1601 Lind
Avenue SW., Renton, WA 98057–3356;
telephone 425–227–1405; fax 425–227–1149.
Information may be emailed to: 9-ANM-116AMOC-REQUESTS@faa.gov. Before using
any approved AMOC, notify your appropriate
principal inspector, or lacking a principal
inspector, the manager of the local flight
standards district office/certificate holding
district office.
(2) Contacting the Manufacturer: For any
requirement in this AD to obtain corrective
actions from a manufacturer, the action must
be accomplished using a method approved
by the Manager, International Branch, ANM–
116, Transport Airplane Directorate, FAA; or
the EASA; or Fokker B.V. Service’s EASA
DOA. If approved by the DOA, the approval
must include the DOA-authorized signature.
(1) The Director of the Federal Register
approved the incorporation by reference
(IBR) of the service information listed in this
paragraph under 5 U.S.C. 552(a) and 1 CFR
part 51.
(2) You must use this service information
as applicable to do the actions required by
this AD, unless this AD specifies otherwise.
(i) Fokker Service Bulletin SBF100–57–
048, dated October 27, 2014.
(ii) Reserved.
(3) For service information identified in
this AD, contact Fokker Services B.V.,
Technical Services Dept., P.O. Box 1357,
2130 EL Hoofddorp, the Netherlands;
telephone +31 (0)88–6280–350; fax +31
(0)88–6280–111; email technicalservices@
fokker.com; Internet https://
www.myfokkerfleet.com.
(4) You may view this service information
at the FAA, Transport Airplane Directorate,
1601 Lind Avenue SW., Renton, WA. For
information on the availability of this
material at the FAA, call 425–227–1221.
(5) You may view this service information
that is incorporated by reference at the
National Archives and Records
Administration (NARA). For information on
the availability of this material at NARA, call
202–741–6030, or go to: https://
www.archives.gov/federal-register/cfr/ibrlocations.html.
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89375
Issued in Renton, Washington, on
November 25, 2016.
John P. Piccola, Jr.,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 2016–29243 Filed 12–9–16; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Parts 159 and 173
[USCBP–2016–0065; CBP Dec. No. 16–25]
RIN 1515–AE16
Electronic Notice of Liquidation
U.S. Customs and Border
Protection, HDS; Department of the
Treasury.
ACTION: Final rule.
AGENCY:
This document adopts as a
final rule, with changes, proposed
amendments to the U.S. Customs and
Border Protection (CBP) regulations
reflecting that official notice of
liquidation, suspension of liquidation,
and extension of liquidation will be
posted electronically on the CBP Web
site. The regulatory revisions 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 rule makes certain
technical corrections to the CBP
regulations to reflect statutory
amendments.
SUMMARY:
This final rule is effective on
January 14, 2017.
FOR FURTHER INFORMATION CONTACT:
Virginia McPherson, ACE Business
Office, Office of Trade,
virginia.h.mcpherson@cbp.dhs.gov.
Randy Mitchell, Trade Policy and
Programs, Office of Trade,
randy.mitchell@cbp.dhs.gov.
SUPPLEMENTARY INFORMATION:
DATES:
Background
Section 500 of the Tariff Act of 1930,
as amended (19 U.S.C. 1500), provides
U.S. Customs and Border Protection
(CBP) with the authority, under rules
and regulations prescribed by the
Secretary of the Treasury, 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
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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.
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. When extension or
suspension of liquidation occurs,
official notices are mailed on an
appropriately modified CBP Form 4333–
A.
On October 14, 2016, CBP published
a notice in the Federal Register (81 FR
71019) proposing to amend title 19 of
the Code of Federal Regulations (‘‘19
CFR’’) to reflect that official notice of
liquidation, suspension of liquidation,
and extension of liquidation would be
posted electronically on the CBP Web
site rather than being physically posted
at the customhouses or stations or
mailed. CBP also proposed eliminating
the mailed paper courtesy notices of
liquidation but stated its intention 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.
The proposed amendments were
intended to modernize, centralize, and
facilitate the method by which
importers are provided official notice of
liquidation, extension, and suspension.
Additionally, CBP proposed certain
technical corrections to sections
159.11(a), 159.12(f), and 173.4a of 19
CFR to update the regulatory language
to reflect statutory changes to sections
504 and 520 of the Tariff Act of 1930,
as amended (19 U.S.C. 1504 and 1520).
The notice of proposed rulemaking
requested public comments. The public
comment period closed on November
14, 2016.
CBP received four comments
regarding the proposed amendments to
part 159 of 19 CFR regarding posting
official notice of liquidation, suspension
of liquidation, and extension of
liquidation on the CBP Web site. No
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comments were received on the
technical corrections to the regulations
contained in sections 159.11(a),
159.12(f), and 173.4a of 19 CFR
reflecting the statutory changes to 19
U.S.C. 1504 and 1520.
Discussion of Comments
Four comments were received in
response to the notice of proposed
rulemaking. CBP has addressed the
comments below:
Comment: Three commenters
expressed support for the proposed
changes to post liquidation information
on CBP’s Web site, www.cbp.gov.
CBP Response: CBP appreciates the
support and the input from the
commenters.
Comment: One commenter suggested
that the regulations state that the link
will be visible on the CBP home page so
that it remains conspicuous regardless
of future CBP Web site changes and the
public will not have to search for the
link.
CBP Response: CBP agrees that the
link needs to be conspicuous although
not necessarily on the homepage. The
link will be labelled ‘‘Official Notices of
Liquidation’’ and, pursuant to 19 CFR
159.9(b), it will be placed in a
conspicuous place on CBP’s Web site in
such a manner that it can readily be
located and consulted by all interested
persons. CBP assures that the link will
remain conspicuous regardless of any
potential future CBP Web site changes.
Comment: One commenter stated that
the regulations should include a
definition of what constitutes the
posting and its data elements.
CBP Response: CBP disagrees that
adding a definition of what constitutes
the posting and its data elements is
necessary because CBP believes such a
definition would not add value or
clarity. As proposed, the regulations at
19 CFR 159.9 provide that the posting
will occur on CBP’s Web site, address
the date of posting, state that the
electronic posting will be deemed the
legal evidence of liquidation, and
address liquidations by operation of
law.
Comment: One commenter stated that
the regulations appear not to deal with
reliquidations and proposed adding
reliquidation to 19 CFR 159.9(b).
CBP Response: CBP disagrees with the
commenter. CBP intends that the
posting of reliquidations will also be
done electronically. Section 173.3(b)
regarding reliquidation (which is in the
current regulations and was not
proposed to be amended) provides that
notice of reliquidation will be given in
accordance with the requirements for
giving notice of the original liquidation.
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Accordingly, CBP believes there is no
need to add reliquidation to 19 CFR
159.9(b).
Comment: One commenter stated that
the regulation should spell out in detail
how the date of posting will appear.
CBP Response: CBP disagrees that the
regulation needs to spell out in detail
how the date of posting will appear as
the posting will be in a format that is
easy to understand. The date of posting
will appear in standard MM/DD/YYYY
format. For example, December 31,
2016, will appear as 12/31/2016.
Comment: One commenter asked if
importers or brokers will be able to print
the notice and asked if the printed
notices would include the posting date.
CBP Response: A printed copy may be
obtained using a web browser’s print
functionality which should include the
information that is displayed on the
screen, such as the posting date.
Comment: One commenter stated that
the liquidation information posted on
the CBP Web site should be searchable
using data elements.
CBP Response: CBP agrees and has
designed the liquidation information
posted on the CBP Web site to be
searchable using data elements.
Comment: One commenter stated that
the large majority of liquidations take
place on a Friday and asked if that
practice will continue.
CBP Response: CBP has designed the
functionality so that entries that are set
for auto-liquidation, that is, liquidations
that occur on the standard 314-day cycle
without CBP intervention will continue
to be made on Fridays. However, for
manual liquidations where CBP action
is required, liquidations will generally
post to the Web site within 90 minutes
after CBP processes the liquidation.
Comment: Two commenters suggested
that the 15-month timeline for
maintaining liquidation information on
the CBP Web site should be stated in the
regulations.
CBP Response: CBP agrees that adding
this language to the regulations will be
beneficial. Accordingly, CBP has added
language to §§ 159.9(c)(1), 159.12(b),
and 159.12(c) stating that notices of
liquidation, extension, and suspension,
respectively, will be maintained on the
CBP Web site for a minimum of 15
months.
Comment: One commenter requested
that CBP place in the regulations the
process for requesting access to notices
that are no longer available on the Web
site beyond the 15-month timeline.
CBP Response: CBP disagrees that this
process needs to be included in the
regulations. Guidance will be provided
in the Automated Commercial
Environment (ACE) Business Rules
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Process Document, which can be
updated in a quicker manner than the
regulations should a more efficient
process for obtaining historical
information be developed. When the
information is no longer available on the
CBP Web site, a request may be made
to CBP for historical information by
contacting the filer’s assigned client
representative or by contacting the
appropriate port or Center of Excellence
and Expertise directly. Additionally,
ACE account holders may run queries to
obtain the historical information
without having to contact CBP.
Comment: One commenter stated that
CBP has the ability to post notices
regarding liquidations by operation of
law immediately when they occur in the
electronic environment rather than
‘‘within a reasonable period’’ after each
liquidation by operation of law. Another
commenter asked that CBP post notice
of liquidation by operation of law
within 14 days of the liquidation.
CBP Response: CBP disagrees that it
has the ability to post this information
immediately upon occurrence because
in many situations, CBP is unaware of
the liquidation by operation of law for
some time after it has occurred.
However, the commenters validly
pointed out that the electronic
environment enables CBP to post notice
without delay. Accordingly, based on
these comments, CBP has amended the
regulation at 19 CFR 159.9(c)(2)(i) to
state that CBP will post this information
when it has determined that an entry
has liquidated by operation of law, and
has removed the phrase regarding
posting within a reasonable time period.
Comment: One commenter asked if
the term ‘‘filer’’ was the filer code or the
name of the importer of record and
noted that both the filer code and the
importer of record should be included
with the information posted on the CBP
Web site.
CBP Response: The term ‘‘filer’’ is not
referencing the filer code or importer of
record number but is instead referring to
the party transmitting entry/entry
summary data to CBP. The filer code is
a searchable data element and will be
displayed in the search results.
However, as stated in the notice of
proposed rulemaking, when the results
of a search are viewed, the CBP Web site
will not display the importer of record
numbers.
Comment: One commenter asked if
people in one location may search the
notices for another location and used
the example of being in Miami and
searching notices from Long Beach.
CBP Response: Because information
will be posted on the CBP Web site, all
notices of liquidation throughout the
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16:18 Dec 09, 2016
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country will be available to view and
search regardless of the physical
location of the searcher.
Comment: One commenter asked that
the liquidation information remain on
the CBP Web site indefinitely until
historical information is available to
sureties through the ACE portal, so that
the surety can generate search results
easily for its own list of entries. This
commenter also requested that ‘‘Surety
Code’’ be added to the list of data
elements.
CBP Response: As stated elsewhere in
the document, the liquidation
information will be maintained on the
CBP Web site for a minimum of 15
months. Regarding sureties, CBP has
provided for surety code to be a
searchable data element.
Comment: One commenter asked that
the surety on an entry be included in 19
CFR 159.9(d) as a party to receive
courtesy notices of liquidation.
CBP Response: A surety on an entry
is able to receive courtesy notice if it is
set up in ACE to receive courtesy
notices of liquidation. However, based
on this comment, CBP has amended the
regulation at 19 CFR 159.9(d) to state
that courtesy notices of the extension
will be sent to the entry filer or its agent
and the surety on an entry.
Comment: One commenter asked that
the filer and the surety be included as
a recipient of courtesy notices of
extension of liquidation in 19 CFR
159.12(d)(2) in order to maintain
consistency with 19 CFR 159.12(b) and
(c) regarding whom the regulations
identify as parties receiving courtesy
notices.
CBP Response: CBP agrees that the
regulations should each be consistent in
this regard. Accordingly, based on this
comment, CBP has amended the
regulation at 19 CFR 159.12(b), (c), and
(d)(2), to state that courtesy notices of
the extension will be sent to the entry
filer or its agent and the surety on an
entry through a CBP-authorized
electronic data interchange.
Conclusion
Accordingly, after review of the
comments and further consideration,
CBP has decided to adopt as final, with
the changes discussed above, the
proposed rule published in the Federal
Register (81 FR 71019) on October 14,
2016. Specifically, the final rule
contains the following changes based on
the comments:
—Clarification in § 159.9(c)(1), which
pertains to the date of liquidation,
that notices of liquidation will be
maintained on www.cbp.gov for a
minimum of 15 months.
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89377
—Clarification in § 159.9(c)(2)(i), which
pertains to entries liquidated by
operation of law, that notice of such
will be posted when CBP determines
that an entry has liquidated by
operation of law.
—Clarification in § 159.9(c)(2)(ii) by
making editorial changes for ease of
reading.
—Clarification in § 159.9(d), which
pertains to courtesy notice of
liquidation, that CBP will endeavor to
provide courtesy notice to the entry
filer or its agent and the surety on an
entry.
—Clarification in § 159.12(b), which
pertains to notices of extension, that
notices of extension will be
maintained on www.cbp.gov for a
minimum of 15 months and that
courtesy notice will be sent to the
entry filer or its agent and the surety
on an entry.
—Clarification in § 159.12(c), which
pertains to notices of suspension, that
notices of suspension will be
maintained on www.cbp.gov for a
minimum of 15 months and that
courtesy notice will be sent to the
entry filer or its agent and the surety
on an entry.
—Clarification in § 159.12(d)(2), which
pertains to additional extensions at
the importer’s request, that courtesy
notice will be sent to the entry filer or
its agent and the surety on an entry.
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.
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 Fairness Act of
1996. The Regulatory Flexibility Act (5
U.S.C. 601 et seq.), as amended by the
Small Business Regulatory Enforcement
Fairness Act of 1996, requires agencies
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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-forprofit organization; or a small
governmental jurisdiction (locality with
fewer than 50,000 people).
Background
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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 generally
available for importers and the public to
peruse for a few 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 its surety 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
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
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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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.
Some liquidations may be extended or
suspended. If liquidation is extended or
suspended, CBP officially notifies the
importer and its 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.
In an effort to modernize the
liquidation, reliquidation, extension,
and suspension notification processes,
CBP, through this rulemaking, will
discontinue physically posting official
bulletin notices of liquidation and
reliquidation at U.S. port of entry
customhouses and stations. Instead,
CBP will post these official notices in a
readily-located, conspicuous place on
the CBP Web site: www.cbp.gov.
Additionally through this rule, CBP will
begin posting electronically on
www.cbp.gov official notices of
extension and suspension that are
currently mailed. CBP will tie all
electronic notices directly to an alreadydeveloped, automated process by which
entries are liquidated, reliquidated,
extended, or suspended, ensuring that
these actions and CBP’s official
notifications of these actions occur
almost simultaneously. This rule will
not change the method in which CBP
6 See
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provides electronic courtesy notices of
liquidation, reliquidation, extension, or
suspension, but it will discontinue the
practice of mailing any paper notices.
For other informal, mail, and baggage
entries, CBP will 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 will introduce
benefits and costs to importers,
including small entities.
For most importers (and their
sureties), this rule will 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 will publish these
notices on the CBP Web site once this
rule is in effect. CBP will 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
will presumably only affect a small
portion of importers. Specifically, this
transition to electronic notice
publications will 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
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
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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 will be lower. Nonetheless, because
the majority of importers are small
businesses, CBP believes this rule will
affect a substantial number of small
entities.
Impacts of Rule on Small Entities
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This rule’s transition to fully
electronic notices will 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
bulletin notices on the CBP Web site,
CBP assumes that these importers will
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
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.
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 will
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.
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16:18 Dec 09, 2016
Jkt 241001
hourly wage rate for importers.11 Most
affected importers will 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
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%20
Guidance%20on%20Valuation
%20of%20Travel%20Time%20in
%20Economic%20Analysis.pdf. Accessed June 1,
2016.
12 Importers will 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 will 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 will 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
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89379
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,
it will 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, its
total costs from this rule will be higher
but the value of its entries will also be
higher, meaning that the average cost to
the importer will 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.
Along with the minor Web site access
cost imposed by this rule, this rule will
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 will 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 will save an estimated 45
minutes (0.75 hours), which will result
than one year to determine its entry’s reliquidation
status. If CBP extends or suspends an entry, which
will 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 its
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 will 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/summaryperformance-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.
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in a time cost saving of $22.57 using the
average hourly wage for importers of
$30.09.14 Importers will also save
$16.20 in travel costs per trip based on
the estimated distance they 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 will be
avoided and the benefits of this rule per
trip will be lower.
The electronic bulletin notices
introduced with this rule will also
provide benefits of eased access,
relatively quicker notification, and
extended viewing to importers. In
particular, this electronic transition will
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 will provide the
added benefit of more timely notice and
additional protest time. Importers who
receive and rely on paper courtesy
notices will also benefit from this rule’s
consolidated electronic notice posting.
This change will allow importers and
their agents to view liquidation,
reliquidation, extension, and
suspension notices simultaneously
instead of individually as they currently
do through paper notices. Furthermore,
importers will have at least 14 more
months to view official liquidation,
reliquidation, extension, and
suspension notices before having to
request access to the notices through
CBP.
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Conclusion
Although CBP believes that this rule
will affect a substantial number of small
entities, specifically importers, CBP
believes that the (negative) economic
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-forBusiness-Medical-and-Moving-Announced.
Accessed April 19, 2016.
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16:18 Dec 09, 2016
Jkt 241001
impact of this rule on small entities will
not be significant. Accordingly, CBP
certifies that this regulation will not
have a significant economic impact on
a substantial number of small entities.
CBP received no public comments on
the Electronic Notice of Liquidation
Notice of Proposed Rulemaking
challenging this certification.
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 § 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.
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 amended as set forth
below:
PART 159—LIQUIDATION OF DUTIES
1. The general authority citation for
part 159 continues to read as follows:
■
Authority: 19 U.S.C. 66, 1500, 1504, 1624.
*
*
*
*
*
2. Section 159.9 is revised to read as
follows:
■
§ 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
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Frm 00024
Fmt 4700
Sfmt 4700
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. The notice of liquidation
will be maintained on www.cbp.gov for
a minimum of 15 months from the date
of posting.
(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 §§ 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 when
CBP determines that each entry has
liquidated by operation of law and will
be dated with the date of liquidation by
operation of law.
(ii) For liquidation notices that were
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 was 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 the entry
filer or its agent and the surety on an
entry 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
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Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations
and not as a direct, formal, and decisive
notice of liquidation.
§ 159.10
[Amended]
3. Section 159.10 is amended as
follows:
■ a. By removing the words ‘‘posting or
lodging of’’ from the last sentence in
paragraph (b);
■ b. By removing the words ‘‘on CBP
Form 4333 posted or lodged’’ from the
last sentence of paragraph (c)(1); and
■ c. By removing the words ‘‘on a
bulletin notice of liquidation, CBP Form
4333,’’ from the last sentence of
paragraph (c)(3).
■ 4. In § 159.11, paragraph (a) is revised
to read as follows:
■
§ 159.11
law.
Entries liquidated by operation of
(a) Time limit generally. Except as
provided in § 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 §§ 159.9 and 159.10(c)(3) of this part.
CBP will endeavor to provide a courtesy
notice of liquidation in accordance with
§ 159.9(d).
*
*
*
*
*
■ 5. In § 159.12, revise paragraphs (b),
(c), (d)(2), and (f) and remove paragraph
(g).
The revisions read as follows:
§ 159.12
Extension of time for liquidation.
mstockstill on DSK3G9T082PROD with RULES
*
*
*
*
*
(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 notice of
extension will be maintained on
www.cbp.gov for a minimum of 15
months from the date of posting. The
port director will also endeavor to
transmit a courtesy notice of extension
to the entry filer or its agent and the
surety on an entry through a CBPauthorized 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
will be posted on www.cbp.gov. The
notice of suspension will be maintained
on www.cbp.gov for a minimum of 15
months from the date of posting. The
port director will also endeavor to
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16:18 Dec 09, 2016
Jkt 241001
transmit a courtesy notice of suspension
to the entry filer or its agent and the
surety on an entry through a CBPauthorized electronic data interchange
system.
(d) * * *
(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 provide
courtesy notice of the extension to the
entry filer or its agent and the surety on
an entry 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 § 159.9(d), in addition
to the notice specified in § 159.9(c)(2)(i).
PART 173—ADMINISTRATIVE REVIEW
IN GENERAL
6. The general authority citation for
part 173 continues to read as follows:
■
Authority: 19 U.S.C. 66, 1501, 1520, 1624.
■
7. Revise § 173.4a to read as follows:
§ 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
PO 00000
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Fmt 4700
Sfmt 4700
89381
of excess duties, fees, charges, or
exactions.
R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border
Protection.
Approved: December 6, 2016.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2016–29656 Filed 12–9–16; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 91 and 92
[Docket No. FR–5792–C–02]
RIN 2501–AD69
Changes to HOME Investment
Partnerships (HOME) Program
Commitment Requirement; Correction
AGENCY:
Office of General Counsel,
HUD.
ACTION:
Interim final rule; correction.
On December 2, 2016, HUD
published an interim final rule that
changes the commitment requirement of
the HOME Investment Partnerships
(HOME) Program. After publication,
HUD discovered that the effective dates
and comment due dates were
inadvertently reversed. This document
corrects the preamble to reflect a 30-day
effective date and a 60-day comment
period.
SUMMARY:
Effective Date: The corrected
effective date for HUD’s interim rule
published on December 2, 2016 (81 FR
86947), is January 3, 2017.
FOR FURTHER INFORMATION CONTACT:
With respect to this supplementary
document, contact Ariel Pereira,
Associate General Counsel for
Legislation and Regulations, Department
of Housing and Urban Development,
451 7th Street SW., Room 10238,
Washington, DC 20410; telephone
number 202–708–1793 (this is not a tollfree number). Individuals with speech
or hearing impairments may access this
number via TTY by calling the Federal
Relay Service at 800–877–8339 (this is
a toll-free number).
SUPPLEMENTARY INFORMATION: In the
interim final rule FR Doc. 2016–28591,
published on December 2, 2016, the
following correction is made:
On page 86947, in the first column,
correct the DATES section to read as
follows:
Dates: Effective Date: January 3, 2017.
Comment Due Date: January 31, 2017.
DATES:
E:\FR\FM\12DER1.SGM
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Agencies
[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Rules and Regulations]
[Pages 89375-89381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29656]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Parts 159 and 173
[USCBP-2016-0065; CBP Dec. No. 16-25]
RIN 1515-AE16
Electronic Notice of Liquidation
AGENCY: U.S. Customs and Border Protection, HDS; Department of the
Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document adopts as a final rule, with changes, proposed
amendments to the U.S. Customs and Border Protection (CBP) regulations
reflecting that official notice of liquidation, suspension of
liquidation, and extension of liquidation will be posted electronically
on the CBP Web site. The regulatory revisions 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
rule makes certain technical corrections to the CBP regulations to
reflect statutory amendments.
DATES: This final rule is effective on January 14, 2017.
FOR FURTHER INFORMATION CONTACT: Virginia McPherson, ACE Business
Office, Office of Trade, virginia.h.mcpherson@cbp.dhs.gov. Randy
Mitchell, Trade Policy and Programs, Office of Trade,
randy.mitchell@cbp.dhs.gov.
SUPPLEMENTARY INFORMATION:
Background
Section 500 of the Tariff Act of 1930, as amended (19 U.S.C. 1500),
provides U.S. Customs and Border Protection (CBP) with the authority,
under rules and regulations prescribed by the Secretary of the
Treasury, 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
[[Page 89376]]
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.
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. When
extension or suspension of liquidation occurs, official notices are
mailed on an appropriately modified CBP Form 4333-A.
On October 14, 2016, CBP published a notice in the Federal Register
(81 FR 71019) proposing to amend title 19 of the Code of Federal
Regulations (``19 CFR'') to reflect that official notice of
liquidation, suspension of liquidation, and extension of liquidation
would be posted electronically on the CBP Web site rather than being
physically posted at the customhouses or stations or mailed. CBP also
proposed eliminating the mailed paper courtesy notices of liquidation
but stated its intention 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. The proposed amendments were
intended to modernize, centralize, and facilitate the method by which
importers are provided official notice of liquidation, extension, and
suspension. Additionally, CBP proposed certain technical corrections to
sections 159.11(a), 159.12(f), and 173.4a of 19 CFR to update the
regulatory language to reflect statutory changes to sections 504 and
520 of the Tariff Act of 1930, as amended (19 U.S.C. 1504 and 1520).
The notice of proposed rulemaking requested public comments. The public
comment period closed on November 14, 2016.
CBP received four comments regarding the proposed amendments to
part 159 of 19 CFR regarding posting official notice of liquidation,
suspension of liquidation, and extension of liquidation on the CBP Web
site. No comments were received on the technical corrections to the
regulations contained in sections 159.11(a), 159.12(f), and 173.4a of
19 CFR reflecting the statutory changes to 19 U.S.C. 1504 and 1520.
Discussion of Comments
Four comments were received in response to the notice of proposed
rulemaking. CBP has addressed the comments below:
Comment: Three commenters expressed support for the proposed
changes to post liquidation information on CBP's Web site, www.cbp.gov.
CBP Response: CBP appreciates the support and the input from the
commenters.
Comment: One commenter suggested that the regulations state that
the link will be visible on the CBP home page so that it remains
conspicuous regardless of future CBP Web site changes and the public
will not have to search for the link.
CBP Response: CBP agrees that the link needs to be conspicuous
although not necessarily on the homepage. The link will be labelled
``Official Notices of Liquidation'' and, pursuant to 19 CFR 159.9(b),
it will be placed in a conspicuous place on CBP's Web site in such a
manner that it can readily be located and consulted by all interested
persons. CBP assures that the link will remain conspicuous regardless
of any potential future CBP Web site changes.
Comment: One commenter stated that the regulations should include a
definition of what constitutes the posting and its data elements.
CBP Response: CBP disagrees that adding a definition of what
constitutes the posting and its data elements is necessary because CBP
believes such a definition would not add value or clarity. As proposed,
the regulations at 19 CFR 159.9 provide that the posting will occur on
CBP's Web site, address the date of posting, state that the electronic
posting will be deemed the legal evidence of liquidation, and address
liquidations by operation of law.
Comment: One commenter stated that the regulations appear not to
deal with reliquidations and proposed adding reliquidation to 19 CFR
159.9(b).
CBP Response: CBP disagrees with the commenter. CBP intends that
the posting of reliquidations will also be done electronically. Section
173.3(b) regarding reliquidation (which is in the current regulations
and was not proposed to be amended) provides that notice of
reliquidation will be given in accordance with the requirements for
giving notice of the original liquidation. Accordingly, CBP believes
there is no need to add reliquidation to 19 CFR 159.9(b).
Comment: One commenter stated that the regulation should spell out
in detail how the date of posting will appear.
CBP Response: CBP disagrees that the regulation needs to spell out
in detail how the date of posting will appear as the posting will be in
a format that is easy to understand. The date of posting will appear in
standard MM/DD/YYYY format. For example, December 31, 2016, will appear
as 12/31/2016.
Comment: One commenter asked if importers or brokers will be able
to print the notice and asked if the printed notices would include the
posting date.
CBP Response: A printed copy may be obtained using a web browser's
print functionality which should include the information that is
displayed on the screen, such as the posting date.
Comment: One commenter stated that the liquidation information
posted on the CBP Web site should be searchable using data elements.
CBP Response: CBP agrees and has designed the liquidation
information posted on the CBP Web site to be searchable using data
elements.
Comment: One commenter stated that the large majority of
liquidations take place on a Friday and asked if that practice will
continue.
CBP Response: CBP has designed the functionality so that entries
that are set for auto-liquidation, that is, liquidations that occur on
the standard 314-day cycle without CBP intervention will continue to be
made on Fridays. However, for manual liquidations where CBP action is
required, liquidations will generally post to the Web site within 90
minutes after CBP processes the liquidation.
Comment: Two commenters suggested that the 15-month timeline for
maintaining liquidation information on the CBP Web site should be
stated in the regulations.
CBP Response: CBP agrees that adding this language to the
regulations will be beneficial. Accordingly, CBP has added language to
Sec. Sec. 159.9(c)(1), 159.12(b), and 159.12(c) stating that notices
of liquidation, extension, and suspension, respectively, will be
maintained on the CBP Web site for a minimum of 15 months.
Comment: One commenter requested that CBP place in the regulations
the process for requesting access to notices that are no longer
available on the Web site beyond the 15-month timeline.
CBP Response: CBP disagrees that this process needs to be included
in the regulations. Guidance will be provided in the Automated
Commercial Environment (ACE) Business Rules
[[Page 89377]]
Process Document, which can be updated in a quicker manner than the
regulations should a more efficient process for obtaining historical
information be developed. When the information is no longer available
on the CBP Web site, a request may be made to CBP for historical
information by contacting the filer's assigned client representative or
by contacting the appropriate port or Center of Excellence and
Expertise directly. Additionally, ACE account holders may run queries
to obtain the historical information without having to contact CBP.
Comment: One commenter stated that CBP has the ability to post
notices regarding liquidations by operation of law immediately when
they occur in the electronic environment rather than ``within a
reasonable period'' after each liquidation by operation of law. Another
commenter asked that CBP post notice of liquidation by operation of law
within 14 days of the liquidation.
CBP Response: CBP disagrees that it has the ability to post this
information immediately upon occurrence because in many situations, CBP
is unaware of the liquidation by operation of law for some time after
it has occurred. However, the commenters validly pointed out that the
electronic environment enables CBP to post notice without delay.
Accordingly, based on these comments, CBP has amended the regulation at
19 CFR 159.9(c)(2)(i) to state that CBP will post this information when
it has determined that an entry has liquidated by operation of law, and
has removed the phrase regarding posting within a reasonable time
period.
Comment: One commenter asked if the term ``filer'' was the filer
code or the name of the importer of record and noted that both the
filer code and the importer of record should be included with the
information posted on the CBP Web site.
CBP Response: The term ``filer'' is not referencing the filer code
or importer of record number but is instead referring to the party
transmitting entry/entry summary data to CBP. The filer code is a
searchable data element and will be displayed in the search results.
However, as stated in the notice of proposed rulemaking, when the
results of a search are viewed, the CBP Web site will not display the
importer of record numbers.
Comment: One commenter asked if people in one location may search
the notices for another location and used the example of being in Miami
and searching notices from Long Beach.
CBP Response: Because information will be posted on the CBP Web
site, all notices of liquidation throughout the country will be
available to view and search regardless of the physical location of the
searcher.
Comment: One commenter asked that the liquidation information
remain on the CBP Web site indefinitely until historical information is
available to sureties through the ACE portal, so that the surety can
generate search results easily for its own list of entries. This
commenter also requested that ``Surety Code'' be added to the list of
data elements.
CBP Response: As stated elsewhere in the document, the liquidation
information will be maintained on the CBP Web site for a minimum of 15
months. Regarding sureties, CBP has provided for surety code to be a
searchable data element.
Comment: One commenter asked that the surety on an entry be
included in 19 CFR 159.9(d) as a party to receive courtesy notices of
liquidation.
CBP Response: A surety on an entry is able to receive courtesy
notice if it is set up in ACE to receive courtesy notices of
liquidation. However, based on this comment, CBP has amended the
regulation at 19 CFR 159.9(d) to state that courtesy notices of the
extension will be sent to the entry filer or its agent and the surety
on an entry.
Comment: One commenter asked that the filer and the surety be
included as a recipient of courtesy notices of extension of liquidation
in 19 CFR 159.12(d)(2) in order to maintain consistency with 19 CFR
159.12(b) and (c) regarding whom the regulations identify as parties
receiving courtesy notices.
CBP Response: CBP agrees that the regulations should each be
consistent in this regard. Accordingly, based on this comment, CBP has
amended the regulation at 19 CFR 159.12(b), (c), and (d)(2), to state
that courtesy notices of the extension will be sent to the entry filer
or its agent and the surety on an entry through a CBP-authorized
electronic data interchange.
Conclusion
Accordingly, after review of the comments and further
consideration, CBP has decided to adopt as final, with the changes
discussed above, the proposed rule published in the Federal Register
(81 FR 71019) on October 14, 2016. Specifically, the final rule
contains the following changes based on the comments:
--Clarification in Sec. 159.9(c)(1), which pertains to the date of
liquidation, that notices of liquidation will be maintained on
www.cbp.gov for a minimum of 15 months.
--Clarification in Sec. 159.9(c)(2)(i), which pertains to entries
liquidated by operation of law, that notice of such will be posted when
CBP determines that an entry has liquidated by operation of law.
--Clarification in Sec. 159.9(c)(2)(ii) by making editorial changes
for ease of reading.
--Clarification in Sec. 159.9(d), which pertains to courtesy notice of
liquidation, that CBP will endeavor to provide courtesy notice to the
entry filer or its agent and the surety on an entry.
--Clarification in Sec. 159.12(b), which pertains to notices of
extension, that notices of extension will be maintained on www.cbp.gov
for a minimum of 15 months and that courtesy notice will be sent to the
entry filer or its agent and the surety on an entry.
--Clarification in Sec. 159.12(c), which pertains to notices of
suspension, that notices of suspension will be maintained on
www.cbp.gov for a minimum of 15 months and that courtesy notice will be
sent to the entry filer or its agent and the surety on an entry.
--Clarification in Sec. 159.12(d)(2), which pertains to additional
extensions at the importer's request, that courtesy notice will be sent
to the entry filer or its agent and the surety on an entry.
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.
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 Fairness
Act of 1996. The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as
amended by the Small Business Regulatory Enforcement Fairness Act of
1996, requires agencies
[[Page 89378]]
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 generally available for importers and the public to peruse for a
few 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 its surety
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 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 its
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, will discontinue physically posting official bulletin
notices of liquidation and reliquidation at U.S. port of entry
customhouses and stations. Instead, CBP will post these official
notices in a readily-located, conspicuous place on the CBP Web site:
www.cbp.gov. Additionally through this rule, CBP will begin posting
electronically on www.cbp.gov official notices of extension and
suspension that are currently mailed. CBP will 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 almost simultaneously. This rule will not change the method in
which CBP provides electronic courtesy notices of liquidation,
reliquidation, extension, or suspension, but it will discontinue the
practice of mailing any paper notices. For other informal, mail, and
baggage entries, CBP will 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 will introduce benefits and costs to importers, including small
entities.
For most importers (and their sureties), this rule will 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 will publish these notices on
the CBP Web site once this rule is in effect. CBP will 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 will presumably only affect a small portion of importers.
Specifically, this transition to electronic notice publications will
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
[[Page 89379]]
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 will be
lower. Nonetheless, because the majority of importers are small
businesses, CBP believes this rule will 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 will 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 bulletin notices on the CBP Web site, CBP assumes that these
importers will 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 will 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, it will
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, its total costs from this rule will be
higher but the value of its entries will also be higher, meaning that
the average cost to the importer will 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 will 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 will 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 will 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 will
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 its entry's reliquidation status. If CBP extends or
suspends an entry, which will 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 its 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 will
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.
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Along with the minor Web site access cost imposed by this rule,
this rule will 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 will 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 will save an estimated 45 minutes (0.75 hours), which will
result
[[Page 89380]]
in a time cost saving of $22.57 using the average hourly wage for
importers of $30.09.\14\ Importers will also save $16.20 in travel
costs per trip based on the estimated distance they 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 will be avoided and the benefits of this rule per trip will
be lower.
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\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.
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The electronic bulletin notices introduced with this rule will also
provide benefits of eased access, relatively quicker notification, and
extended viewing to importers. In particular, this electronic
transition will 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 will provide the
added benefit of more timely notice and additional protest time.
Importers who receive and rely on paper courtesy notices will also
benefit from this rule's consolidated electronic notice posting. This
change will allow importers and their agents to view liquidation,
reliquidation, extension, and suspension notices simultaneously instead
of individually as they currently do through paper notices.
Furthermore, importers will have at least 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 will affect a substantial
number of small entities, specifically importers, CBP believes that the
(negative) economic impact of this rule on small entities will not be
significant. Accordingly, CBP certifies that this regulation will not
have a significant economic impact on a substantial number of small
entities. CBP received no public comments on the Electronic Notice of
Liquidation Notice of Proposed Rulemaking challenging this
certification.
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.
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 amended as
set forth below:
PART 159--LIQUIDATION OF DUTIES
0
1. The general authority citation 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. The notice of liquidation
will be maintained on www.cbp.gov for a minimum of 15 months from the
date of posting.
(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 when CBP determines
that each entry has liquidated by operation of law and will be dated
with the date of liquidation by operation of law.
(ii) For liquidation notices that were 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 was
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
the entry filer or its agent and the surety on an entry 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
[[Page 89381]]
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. In Sec. 159.11, paragraph (a) 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) of this part. CBP will
endeavor to provide a courtesy notice of liquidation in accordance with
Sec. 159.9(d).
* * * * *
0
5. In Sec. 159.12, revise paragraphs (b), (c), (d)(2), and (f) and
remove paragraph (g).
The revisions 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 notice of extension will be maintained on www.cbp.gov
for a minimum of 15 months from the date of posting. The port director
will also endeavor to transmit a courtesy notice of extension to the
entry filer or its agent and the surety on an entry 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
will be posted on www.cbp.gov. The notice of suspension will be
maintained on www.cbp.gov for a minimum of 15 months from the date of
posting. The port director will also endeavor to transmit a courtesy
notice of suspension to the entry filer or its agent and the surety on
an entry through a CBP-authorized electronic data interchange system.
(d) * * *
(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 provide courtesy notice of the extension to the entry
filer or its agent and the surety on an entry 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)(i).
PART 173--ADMINISTRATIVE REVIEW IN GENERAL
0
6. The general authority citation 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: December 6, 2016.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2016-29656 Filed 12-9-16; 8:45 am]
BILLING CODE 9111-14-P