Elimination of Debit Voucher Interest Accruing Before the Issuance of a Bill, 72675-72680 [2023-23305]

Agencies

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

[Federal Register Volume 88, Number 203 (Monday, October 23, 2023)]
[Rules and Regulations]
[Pages 72675-72680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23305]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 88, No. 203 / Monday, October 23, 2023 / 
Rules and Regulations

[[Page 72675]]



DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Part 24

[USCBP-2023-0025; CBP Dec. 23-13]
RIN 1515-AE81


Elimination of Debit Voucher Interest Accruing Before the 
Issuance of a Bill

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

ACTION: Interim final rule; solicitation of comments.

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SUMMARY: This document amends the U.S. Customs and Border Protection 
(CBP) regulations to reflect the elimination of CBP's collection of 
interest specific to debit vouchers in order to enable CBP to 
efficiently include debit voucher bills in CBP's automated billing 
process in the Automated Commercial Environment. As a result of this 
change, CBP will automatically issue debit voucher bills, inclusive of 
all applicable interest accruing on such bills and dishonored payment 
fees. Interest on the debited amount will accrue from the date of the 
issuance of a debit voucher bill, and no longer from the date of the 
debit voucher.

DATES: This interim final rule is effective as of November 4, 2023; 
comments must be received by December 22, 2023.

ADDRESSES: Please submit comments, identified by docket number, by the 
following method:
    Federal eRulemaking Portal: https://www.regulations.gov. Follow the 
instructions for submitting comments via docket number USCBP-2023-0025.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to https://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Steven J. Grayson, Program Manager, 
Investment Analysis Office, Office of Finance, U.S. Customs and Border 
Protection, (202) 579-4400, or [email protected].

SUPPLEMENTARY INFORMATION:

I. Public Participation

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

II. Background

A. Ongoing Modernization of the Collections System at U.S. Customs and 
Border Protection

    U.S. Customs and Border Protection (CBP) is modernizing its 
collections system, allowing CBP to eventually retire the Automated 
Commercial System (ACS) and transfer all collections processes into the 
Automated Commercial Environment (ACE). This modernization effort, 
known as ACE Collections, includes the consolidation of the entire 
collections system into the ACE framework, which will enable CBP to 
utilize trade data from ACE modules, benefitting both the trade 
community and CBP with more streamlined and better automated payment 
processes. The new collections system in ACE will reduce costs for CBP, 
create a common framework that aligns with other initiatives to reduce 
manual collection processes, and provide additional flexibility to 
allow for future technological enhancements. ACE Collections will also 
provide the public with more streamlined and better automated payment 
processes with CBP, including better visibility into data regarding 
specific transactions.
    ACE Collections supports the goals of the Customs Modernization Act 
(Pub. L. 103-182, 107 Stat. 2057, 2170, December 8, 1993, Title VI of 
the North American Free Trade Agreement Implementation Act), of 
modernizing the business processes that are essential to securing U.S. 
borders, speeding up the flow of legitimate shipments, and targeting 
illicit goods that require scrutiny. ACE Collections also fulfills the 
objectives of Executive Order 13659 (79 FR 10655, February 25, 2014), 
to provide the trade community with an integrated CBP trade system that 
facilitates trade, from entry of goods to receipt of duties, taxes, and 
fees.
    CBP is implementing ACE Collections through phased releases in ACE. 
Release 1 was deployed on September 7, 2019, and dealt with statements 
integration, the collections information repository (CIR) framework, 
and automated clearinghouse (ACH) processing. See 84 FR 46749 and 84 FR 
46678 (September 5, 2019), with a minor correction on September 23, 
2019 (84 FR 49650).
    Release 2 was deployed on February 5, 2021, and focused on non-ACH 
electronic receivables and collections, for Fedwire and Pay.gov, that 
included user fees, and Harbor Maintenance Fee (HMF) and Seized Assets 
and Case Tracking System (SEACATS) payments. All the changes in Release 
2 were internal to CBP and did not affect the trade community; as such, 
no notice was published.
    Release 3 was deployed on May 1, 2021, and primarily implemented 
technical changes to the liquidation process, and deferred tax bills, 
which were internal to CBP. See 86 FR 22696 (April 29, 2021). Release 3 
also harmonized the determination of the due date for deferred tax 
payments with the entry summary date, streamlined the collections 
system, and provided importers of record with more flexibility and 
access to data when making deferred payments of internal revenue taxes 
owed on distilled spirits, wines,

[[Page 72676]]

and beer imported into the United States.
    Release 4 was deployed on October 18, 2021, and primarily 
implemented technical changes to the production and management of the 
internal CBP processes for supplemental bills, certain reimbursable 
bills, and non-reimbursable/miscellaneous bills issued by CBP to the 
public. See 86 FR 56968 (October 13, 2021). Release 4 also made 
available to importers of record, licensed customs brokers, and other 
ACE account users, an option to electronically view certain, unpaid, 
open bill details as reports in ACE Reports and adopted a new, enhanced 
format for the CBP Bill Form.
    Release 5 was deployed on March 21, 2022, and implemented internal 
technical changes to the production, tracking, and management of 
overdue bills and delinquent accounts and the bonds associated with 
them, including enhancements to the unpaid, open bill details reports 
in ACE Reports. See 87 FR 14899 (March 16, 2022). Release 5 also 
included a May 1, 2022 delayed deployment of minor modifications to the 
mailed Formal Demand on Surety for Payment of Delinquent Amounts Due 
(also informally referred to as the 612 Report) and the ability to 
electronically view 612 Reports in ACE Reports.
    Most recently, Release 6 was deployed on August 29, 2022. Release 6 
focused on the management of refunds, and included mainly internal, 
technical changes to the ability to search, create, and review/certify 
those refunds. See 87 FR 49600 (August 11, 2022). Release 6 also 
included enhancements that improve transparency and access to 
information through ACE for ACE account users who have sought refunds 
from CBP to view certain information regarding the ACE account user's 
own refunds.
    As explained more fully below, Release 7 will be deployed on 
November 4, 2023. Release 7 will enhance CBP's budget clearing account 
(BCA) \1\ management, reducing processing times for clearing 
collections off the BCA and allowing for improved reconciliation of 
open receivables. This release will further integrate the port 
collections process into ACE Collections to allow for the full entry 
lifecycle to be contained in one system. The remaining ACS 
functionalities, including Point of Sale (POS), Treasury and port 
reconciliations, Deposits in Transit (DIT), debit voucher \2\ 
processing, collections in transit, serial numbered forms (SNF) and 
system transfers, will also be moved to ACE. Specifically for debit 
vouchers, Release 7 will streamline the tracking and notification 
process for debit vouchers within ACE by transitioning the entire debit 
voucher process (from bill creation to payment application) from a 
manual to an automated process. This transition is accomplished by 
including debit vouchers in CBP's general billing process and making 
several regulatory changes to the debit voucher interest accrual 
provision. All changes, except the change to debit voucher processing, 
are internal to CBP and will not affect the trade community. The 
completion of this release will enable CBP to retire the ACS mainframe 
and move all ACS functionality to ACE. CBP will announce the retirement 
of ACS by notice in the Federal Register once ready to do so.
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    \1\ A budget clearing account records unidentifiable 
transactions and credits pending transfer to the applicable receipt 
or expenditure account. See 31 U.S.C. 3513.
    \2\ A bank issues a debit voucher on Form SF 5515 notifying CBP 
that a CBP account is being debited due to a dishonored payment.
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B. Overview of CBP's Debit Voucher Process

    CBP is authorized to collect duties, taxes, and fees arising from 
customs activities from individuals or entities. See generally 19 
U.S.C. 58a, 58b, 58b-1, 58c, 1505, and 26 U.S.C. 4461. The regulations 
found in part 24 of title 19 of the Code of Federal Regulations (CFR) 
address the financial and accounting procedures for when CBP collects 
these duties, taxes, fees, interest, and other applicable charges. See 
generally 19 CFR 24.1-24.36. CBP collects and manages numerous types of 
bills and uses several systems and processes to manage them. CBP 
separates the bills it collects into broad categories, which include 
accrual bills, supplemental bills, reimbursable bills, non-
reimbursable/miscellaneous bills, debit vouchers, and fines, penalties, 
and forfeiture bills. See generally Sec.  24.3a. Supplemental bills 
constitute the majority of bills that CBP generates for collection 
purposes. These bills arise from liquidation or reliquidation processes 
and are generated because of the nonpayment or underpayment of duties, 
taxes, and fees at the time of entry for imported merchandise. In most 
cases, debit voucher bills (covered by Sec. Sec.  24.3(e) and 
24.3a(b)(2)(i)(C)) resulting from dishonored payments \3\ such as 
dishonored checks or dishonored ACH \4\ transactions, function 
similarly to supplemental bills in their purpose, i.e., nonpayment or 
underpayment of duties, taxes, and fees. Thus, debit voucher bills are 
included in the provisions regarding bill payment, due date and 
interest accrual for supplemental bills, although the due date and 
interest assessment for debit vouchers differ from supplemental bills. 
See Sec. Sec.  24.3(e) and 24.3a(b)(2)(ii).
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    \3\ Even though Sec. Sec.  24.3(e) and 24.3a(b)(2)(i)(C) mention 
only checks and ACH transactions, every payment type may result in a 
debit voucher, with dishonored checks and dishonored ACH 
transactions being the majority of dishonored payments that CBP 
processes.
    \4\ For additional information on the ACH debit and ACH credit 
processes, please see 19 CFR 24.25 and 24.26.
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    Section 24.3a contains detailed provisions regarding CBP bills for 
supplemental duties, taxes, and fees, vessel repair duties with 
interest, reimbursable services, and miscellaneous amounts. 
Specifically, Sec.  24.3a(a) discusses the due date for these CBP bills 
and refers to the due date calculation set forth in Sec.  24.3(e). 
Section 24.3(e) states that bills resulting from dishonored checks or 
dishonored ACH transactions are due and payable within 15 days of the 
date of the issuance of the bill, whereas all other bills are due and 
payable within 30 days of the date of the issuance of the bill.
    CBP assesses interest on the nonpayment or underpayment of 
estimated duties, taxes, and fees, or interest, owed by an individual 
or entity, as set forth in Sec.  24.3a(b). See also 19 U.S.C. 1505(c). 
Section 24.3a(b)(1) concerns interest charges due to the late payment 
of bills for vessel repair duties, reimbursable services and 
miscellaneous amounts, whereas paragraph (b)(2) describes the 
procedures for charging interest due to the underpayment of 
supplemental duties, taxes, fees, and interest. Section 24.3a(b)(2) is 
divided into paragraph (i) dealing with interest on initial 
underpayments, and paragraph (ii) involving interest on overdue bills. 
Paragraph (b)(2)(i) is further broken out into paragraphs (A) through 
(C) covering factual situations that arise under current CBP 
transactions and produce variations in the interest computation period 
under the basic statutory rule of 19 U.S.C. 1505(d). Paragraph (A) 
concerns excessive refunds by CBP prior to liquidation or 
reliquidation, paragraph (B) describes three scenarios involving 
additional deposits made by an individual or entity prior to 
liquidation or reliquidation, and paragraph (C) concerns situations 
where CBP receives a debit voucher indicating that a payment to CBP was 
not made because of a dishonored check or dishonored ACH transaction.

[[Page 72677]]

    According to Sec.  24.3a(b)(2)(i)(C), if a depository bank notifies 
CBP by a debit voucher that a CBP account is being debited due to a 
dishonored check or dishonored ACH transaction, interest will accrue on 
the debited amount from the date of the debit voucher to either the 
date of the payment of the debt represented by the debit voucher or the 
date of the issuance of a bill for payment, whichever date is earlier. 
Thus, interest begins to accrue on a debit voucher from the date of the 
debit voucher. If the debit voucher is paid before CBP generates a 
bill, interest accrues from the date of the debit voucher to the date 
of payment. If the debit voucher is not paid before CBP generates a 
bill, interest accrues on the amount of the debit voucher until the 
date the bill is generated. CBP charges this debit voucher interest in 
addition to any interest accrued on the underlying underpayment of 
duties, taxes, and fees as prescribed by 19 U.S.C. 1505(c) or 1677g.
    Section 24.3a(b)(2)(ii) involves interest on overdue bills, and 
states that if duties, taxes, fees, and interest are not paid in full 
within the applicable period specified in Sec.  24.3(e), any unpaid 
balance will be considered delinquent and will bear interest until the 
full balance is paid. As noted above, Sec.  24.3(e) provides that, 
generally, a debtor has 30 days after the bill date (also known as the 
date of issuance of the bill) to make payment. On the 31st day after 
the bill date, the bill is considered delinquent, and interest will 
accrue in 30-day periods. In the case of debit vouchers, Sec.  24.3(e) 
provides that a debtor has 15 days after the bill date to make payment, 
and on the 16th day after the bill date, the bill is considered 
delinquent. Initial interest accrues on the debit voucher bill within 
the 15-day period, and in 30-day periods thereafter. See generally 19 
U.S.C. 1505(d); 19 CFR 24.3a.
    For CBP, the current debit voucher process is very labor-intensive. 
Because the interest calculation for debit vouchers differs from that 
for other CBP bills, debit voucher bills cannot be automated along with 
other CBP bills. Therefore, CBP accounting technicians are tasked with 
manually creating draft debit voucher bills for only the amount of the 
debit voucher in ACS, manually calculating interest outside of the 
system for each debit voucher, and manually creating and mailing to the 
individual or entity a letter notifying of the debit voucher interest 
and any amount owed on the debit voucher. This bill, in the form of a 
letter, is mailed to notify the debtor of the amount owed on a 
particular debt.\5\ Payments that are made on debit voucher bills are 
posted to the BCA until payment and bill are manually matched up and 
payment is applied to the bill. If payment is not made, subsequent 
letters with any remaining amount owed, plus additional accrued 
interest, must be manually created and mailed every 30 days, consistent 
with Sec.  24.3(e) and Sec.  24.3a(c)(3).
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    \5\ It is common practice for CBP accounting technicians to 
create draft debit voucher bills without interest as soon as CBP is 
notified of the debit voucher to keep the accruing debit voucher 
interest low; the debit voucher interest is frequently calculated at 
a later time and mailed subsequently in a dunning letter.
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    The banking industry practice regarding debit vouchers has changed 
significantly since CBP first implemented debit voucher interest 
through regulatory amendments in 1999.\6\ Debit vouchers were 
historically mailed to payees (resulting in a delay of days or weeks 
before a bill could be issued) but are now transmitted electronically 
such that CBP receives near-immediate electronic notice when a payment 
is dishonored. Consequently, debit vouchers are paid and resolved or 
billed by CBP within a day or two of receiving electronic notice of the 
dishonored payment. Thus, the accrued interest on debit vouchers in 
this short time frame is minimal, in contrast to the significant time 
and resources CBP must spend manually processing debit vouchers and 
issuing bills for their payment. In addition, the individual or entity 
may receive a dunning letter despite having already made payment in 
full because CBP has not processed the payment yet, i.e., matched up 
and applied the payment to the bill, before mailing the letter, thus 
resulting in inaccurate billing.
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    \6\ CBP published an interim final rule in the Federal Register 
on October 20, 1999 (64 FR 56433) amending regulations regarding 
interest on underpayments and overpayments of customs duties, taxes, 
fees, and interest.
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III. Discussion of Changes to 19 CFR 24.3 and 24.3a

    As described above, the current regulatory requirement in Sec.  
24.3a(b)(2)(i)(C) to assess debit voucher interest prior to the 
creation of the debit voucher bill inhibits CBP's ability to automate 
the debit voucher billing process and align it with the billing process 
for the majority of bills issued by CBP. In order to address the 
problems posed by the manual debit voucher process, CBP is amending its 
regulations to eliminate the requirement in Sec.  24.3a(b)(2)(i)(C) to 
assess interest on debit vouchers for the period between the date of 
the debit voucher and the date of the creation of the debit voucher 
bill. Instead, interest will only accrue on the amount of the debit 
voucher from the date of issuance of the debit voucher bill, resulting 
in the same starting point for the interest calculation for debit 
voucher bills as all other bills.
    As part of Release 7, debit voucher bills will be processed 
automatically like other bills, inclusive of all applicable interest 
accruing on such bills and dishonored payment fees. The system (ACE) 
will generate an initial debit voucher bill due 15 days from the date 
of issuance of the bill, and subsequent bills every 30 days from the 
due date. To enable this automation of the debit voucher process, CBP 
is reorganizing Sec.  24.3a(b) by moving the debit voucher provision in 
paragraph (b)(2)(i)(C) to a new paragraph (b)(3) titled, ``Interest 
accrual on debit vouchers.'' As debit voucher bills will be included in 
CBP's automated billing process, the debit voucher provision under 
paragraph (b)(2)(i)(C) is no longer considered an exception to the 
general rule in Sec.  24.3a(b)(2)(i). Moreover, the debit voucher 
provision deals with a specific scenario of dishonored payments on any 
type of debt owed to CBP, whereas paragraph (b)(2) in general describes 
situations arising in the context of liquidation or reliquidation, 
thus, the placement of the debit voucher provision in a separate 
paragraph will fit better within the structure of CBP's billing 
regulations.
    The new paragraph (b)(3) will set forth the rules for interest 
accrual on debit vouchers and will state that if a depository bank 
notifies CBP by a debit voucher that a CBP account is being debited due 
to a dishonored payment (e.g., check or ACH transaction), interest will 
accrue on the debited amount from the date of the bill. Further, if 
payment is not received by CBP on or before the late payment date 
appearing on the bill, interest charges will be assessed on the debited 
amount. The initial late payment date is the date 15 days after the 
interest computation date. The interest computation date is the date 
from which interest is calculated and is initially the bill date. New 
paragraph (b)(3) will further state that no interest charge will be 
assessed if the individual or entity timely pays the debt at the 
location designated on the bill within the initial 15-day period 
(consistent with Sec.  24.3a(c)(3), which similarly provides that no 
interest will be assessed for the initial 30-day period in which timely 
payment is made on a CBP bill). Finally, after the initial 15-day 
period, interest will be assessed in 30-day periods pursuant to 
paragraph Sec.  24.3a(c)(3).

[[Page 72678]]

    To account for the removal of paragraph (b)(2)(i)(C) in Sec.  
24.3a(b)(2)(i), CBP is also removing the reference to paragraph 
(b)(2)(i)(C) from the introductory text of Sec.  24.3a(b)(2)(i), 
leaving only paragraphs (b)(2)(i)(A) and (b)(2)(i)(B) as the exceptions 
to the general interest accrual rule in paragraph (b)(2)(i). In 
addition, CBP is modifying Sec.  24.3(e) to clarify that a debit 
voucher may be generated for different types of dishonored payments, 
including checks and ACH transactions as examples of two payment types. 
The revision includes a more general reference to dishonored payments 
followed by a parenthetical reading, ``(e.g., check or Automated 
Clearinghouse (ACH) transaction).'' Lastly, in the second sentence of 
Sec.  24.3(e), CBP is adding ``and payable'' after the word ``due'' to 
be consistent with the same phrase used in the preceding sentence.
    Despite forgoing a small amount of interest that accrues between 
the debit voucher date and the issuance of a bill or the payment of the 
debit voucher (whichever is earlier), eliminating this interest 
assessment in Sec.  24.3a(b)(2)(i)(C) will bring about major efficiency 
gains for CBP, significantly decreasing manual processing of debit 
vouchers, and thereby improving revenue-collecting operations and 
better utilizing resources currently spent on manual processing. The 
trade community will also benefit from improved visibility into 
specific debit voucher debts as CBP will no longer mail multiple bills 
(in the form of a letter) for the amount of the debit voucher and 
interest to the individual or entity on the debts owed, and payment by 
the individual or entity on a debit voucher will be reflected 
automatically on the bill record in ACE. In addition, the trade 
community will receive periodic reminders in the form of subsequent 
bills following the initial bill until the debt is paid.
    As a result of these changes, most debit voucher bills will be 
created and mailed automatically, decreasing the volume of manual 
processing significantly. Some manual processing will still occur to 
finalize debit voucher bills for dishonored ACH credit and check 
payments. Payments through ACH debit represent the majority of 
dishonored transactions, and for debit vouchers received on these 
debts, the system will automatically create a full debit voucher record 
and create and mail the bill(s) with the information populated from the 
original dishonored payment. For dishonored ACH credit and check 
payments, the system will prepare a draft bill, as not all information 
that is needed to create a final bill is available in ACE, e.g., what 
debt is being paid and who is responsible for the debt. CBP accounting 
technicians will fill in the missing information to complete the record 
using outside research. Once a full debit voucher record is created, a 
bill will be automatically generated, with interest automatically 
calculated by the system, and mailed. The trade community will receive 
notification of the total amount owed, due within 15 days, on an 
initial bill, with automatic subsequent notifications following in 30-
day periods. Most payments on debit vouchers will be posted directly to 
the bill, and no longer to the BCA, as system limitations that exist in 
ACS will be eliminated with Release 7.

IV. Statutory and Regulatory Requirements

A. Executive Orders 13563 and 12866 Analysis

    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 interim final rule has not been designated as a 
``significant regulatory action'' under Executive Order 12866. 
Accordingly, the Office of Management and Budget (OMB) has not reviewed 
this regulation.
    This interim final rule is part of ACE Collections Release 7. CBP 
is amending its regulations in 19 CFR 24.3a to reflect the elimination 
of debit voucher interest that CBP currently charges to align debit 
voucher processing with CBP's automated billing process. CBP has 
prepared the following analysis to help inform stakeholders of the 
impacts of this interim final rule.
1. Purpose of Rule
    This interim final rule will eliminate a requirement in current 
regulations relating to the accrual of interest on dishonored payments. 
When a payment to CBP, whether paper or electronic, is dishonored for 
lack of funds, the bank issues a debit voucher and notifies CBP. 
Regulation currently requires CBP to assess interest on the dishonored 
payment amount between the date of a debit voucher to either the date 
of the payment or the date of the issuance of the bill. This interim 
final rule will eliminate this initial period in which interest 
accrues. Under this interim final rule, interest will instead accrue 
from the date of the bill, initially for 15 days, and then in 30-day 
periods until the bill is paid, in alignment with CBP practices for 
other payments.
2. Background
    In the course of doing business, CBP bills individuals and entities 
for duties, taxes, fees, interest, or other charges. When an 
individual's or entity's payment is dishonored, CBP may charge 
additional interest. Current 19 CFR 24.3(b)(2)(i)(C) states:

    If a depository bank notifies CBP by a debit voucher that a CBP 
account is being debited due to a dishonored check or dishonored 
Automated Clearinghouse (ACH) transaction, interest will accrue on 
the debited amount from the date of the debit voucher to either the 
date of payment of the debt represented by the debit voucher or the 
date of issuance of a bill for payment, whichever date is earlier.

    Before electronic banking was widely available, notification of a 
dishonored payment could take days to weeks, as the affected bank had 
to notify CBP via a paper debit voucher. After receipt of notice, CBP 
would calculate the interest owed on the dishonored amount based on the 
date of the debit voucher, create a bill with just the amount of the 
debit voucher in ACS, place a hold on that bill, and mail a letter 
containing the amount of the debit voucher and interest to the 
individual or entity. With the advent of electronic payments and 
messaging, the time between a debit voucher's creation and the bank's 
notification to CBP is significantly reduced, usually taking no more 
than three days. Often, the individual or entity has become aware of 
the problem and made the payment before CBP receives notification or 
calculates the interest and issues a bill, or the individual or entity 
makes the payment after the bill is generated but before it is 
received, causing confusion. As CBP's debit voucher process has not yet 
been automated, CBP accounting technicians must continue to process 
debit vouchers manually by checking for a (late) payment, calculating 
interest, and generating a bill. If the individual or entity continues 
to fail to pay after the initial bill, CBP may mail subsequent letters 
as interest accrues in further 30-day periods, but because the process 
is handled manually, subsequent letters are rarely mailed.
    CBP seeks to automate the debit voucher process as a part of ACE 
Collections Release 7 to better serve the trade community, promote 
efficiency,

[[Page 72679]]

and improve collections. However, because of the structure of CBP's 
electronic systems, processing of debit vouchers can only be automated 
if CBP eliminates the requirement to assess interest between the date 
of the debit voucher to either the date of the payment or the date of 
the issuance of the bill. Under an automated system made possible 
through this interim final rule, CBP will systemically mail the CBP 
bill inclusive of all applicable interest accruing on the bill and 
dishonored payment fees. Thus, payments for a debit voucher will 
automatically be posted to the individual's or entity's bill record in 
CBP systems instead of requiring manual processing by an accounting 
technician to adjust remaining interest and the bill record after 
payment has been made. The debit voucher process will be completely 
electronic, with both initial and subsequent bills mailed automatically 
if payment is not made.
3. Costs of the Rule
    CBP does not anticipate any costs resulting from this interim final 
rule. Although CBP has invested resources into automating the debit 
voucher process, those costs were borne regardless of this interim 
final rule as CBP modernizes its financial systems and moves most 
business activities to ACE. CBP's ACE Collections effort is large and 
ongoing, and the debit voucher process represents a minor part. The 
trade community will see no costs from this interim final rule and will 
likely save time in the payment and billing process as electronic 
payment and automatic account updates make settling accounts quicker 
and easier.
4. Benefits of the Rule
    CBP considers this interim final rule to be beneficial to both CBP 
and the trade community. Automating debit voucher processing will bring 
clarity and efficiency to the interest accrual and collection 
environment, making it clear to the individuals and entities involved 
how much they owe and when, and allowing them to make payments quickly. 
Individuals and entities will no longer receive bills for payments they 
may have already made and CBP's accounting technicians will no longer 
need to spend time calculating interest and generating bills for every 
debit voucher received by CBP. Automation will also allow for better 
collection of interest accrued after the initial bill. Under current 
manual practice, subsequent bills are rarely generated and mailed. 
Under this interim final rule, that process will be automated, enabling 
CBP to pursue payment.\7\
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    \7\ Note that some individuals and entities that owe CBP 
interest on their longer-term dishonored payments will, in practice, 
pay more interest since subsequent bills with updated accruing 
interest amounts will be mailed with better regularity. CBP does not 
consider this a cost of this interim final rule as it is a cost of 
compliance with current regulations.
---------------------------------------------------------------------------

5. Transfers
    CBP will likely see a small reduction in the amount of interest 
charged to and collected from individuals and entities because, as part 
of Release 7, interest will start accruing at a later date--at the time 
the debit voucher bill is issued rather than at the time of the debit 
voucher itself. This reduction is not counted as a cost of this interim 
final rule but as a transfer, as the reduction in CBP's income will be 
equal to the corresponding increase in funds retained by the individual 
or entity paying the debit voucher bill. As the total resources 
available to society will not change, this is a transfer and not a 
cost.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended 
by the Small Business Regulatory Enforcement and Fairness Act of 1996, 
requires agencies to assess the impact of regulations on small 
entities. A small entity may be a small business (defined as any 
independently owned and operated business not dominant in its field 
that qualifies as a small business concern per the Small Business Act); 
a small organization (defined as any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field); or 
a small governmental jurisdiction (defined as a locality with fewer 
than 50,000 people). Since a general notice of proposed rulemaking is 
not necessary for this rule, CBP is not required to prepare a 
regulatory flexibility analysis for this interim final rule.

C. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (Pub. L. 
104-13, 44 U.S.C. 3507), an agency may not conduct, and a person is not 
required to respond to, a collection of information unless the 
collection of information displays a valid control number assigned by 
OMB. There are no information collections associated with this rule.

D. Inapplicability of Notice and Comment Requirement and Delayed 
Effective Date

    The Administrative Procedure Act (APA) requirements in 5 U.S.C. 553 
govern agency rulemaking procedures. Section 553(b) of the APA 
generally requires notice and public comment before issuance of a final 
rule. In addition, section 553(d) of the APA requires that a final rule 
have a 30-day delayed effective date. The APA, however, provides 
exceptions from the prior notice and public comment requirement and the 
delayed effective date requirement, when an agency for good cause finds 
that such procedures are impracticable, unnecessary, or contrary to the 
public interest. See 5 U.S.C. 553(b)(B) and (d)(3).
    Pursuant to 5 U.S.C. 553(b)(B), CBP has determined for good cause 
that prior notice and comment are unnecessary because the interim final 
rule mainly changes CBP's internal accounting procedures and does not 
negatively affect the substantive rights of the members of the trade 
community. As explained in more detail above, the elimination of the 
debit voucher interest and the automation of the debit voucher billing 
process will bring clarity as to the debts owed and efficiency as to 
the debit voucher process itself, benefitting both the trade community 
and CBP. For the same reasons, CBP finds that good cause exists 
pursuant to section 553(d)(3) of the APA to issue this interim final 
rule effective upon publication.

Signing Authority

    This document is being issued in accordance with 19 CFR 0.1(a)(1) 
pertaining to the authority of the Secretary of the Treasury (or her/
his delegate) to approve regulations related to certain customs revenue 
functions.
    Troy A. Miller, Senior Official Performing the Duties of the 
Commissioner, having reviewed and approved this document, has delegated 
the authority to electronically sign this document to the Director (or 
Acting Director, if applicable) of the Regulations and Disclosure Law 
Division of CBP, for purposes of publication in the Federal Register.

List of Subjects in 19 CFR Part 24

    Accounting, Claims, Exports, Freight, Harbors, Reporting and 
recordkeeping requirements, Taxes.

Amendments to the Regulations

    For the reasons stated above, part 24 of title 19 of the Code of 
Federal Regulations (19 CFR part 24) is amended as set forth below:

[[Page 72680]]

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

0
1. The general authority citation for part 24 continues to read as 
follows:

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

0
2. Revise Sec.  24.3(e) to read as follows:


Sec.  24.3   Bills and accounts; receipts.

* * * * *
    (e) Except for bills resulting from dishonored payments (e.g., a 
check or Automated Clearinghouse (ACH) transaction), all other bills 
for duties, taxes, fees, interest, or other charges are due and payable 
within 30 days of the date of the issuance of the bill. Bills resulting 
from dishonored payments are due and payable within 15 days of the date 
of the issuance of the bill.

0
3. In Sec.  24.3a:
0
a. Revise the first sentence of the introductory text of paragraph 
(b)(2)(i);
0
b. Remove paragraph (b)(2)(i)(C); and
0
c. Add a new paragraph (b)(3).
    The revision and addition read as follows:


Sec.  24.3a  CBP bills; interest assessment on bills; delinquency; 
notice to principal and surety.

* * * * *
    (b) * * *
    (2) * * *
    (i) Initial interest accrual. Except as otherwise provided in 
paragraphs (b)(2)(i)(A) and (b)(2)(i)(B) of this section, interest 
assessed due to an underpayment of duties, taxes, fees, or interest 
will accrue from the date the importer of record is required to deposit 
estimated duties, taxes, fees, and interest to the date of liquidation 
or reliquidation of the applicable entry or reconciliation. * * *
* * * * *
    (3) Interest accrual on debit vouchers. If a depository bank 
notifies CBP by a debit voucher that a CBP account is being debited due 
to a dishonored payment (e.g., a check or Automated Clearinghouse (ACH) 
transaction), interest will accrue on the debited amount from the date 
of the bill resulting from the dishonored payment. If payment is not 
received by CBP on or before the late payment date appearing on the 
bill, interest charges will be assessed on the debited amount. The 
initial late payment date is the date 15 days after the interest 
computation date. The interest computation date is the date from which 
interest is calculated and is initially the bill date. No interest 
charge will be assessed where the payment is actually received at the 
``Send Payment To'' location designated on the bill within the initial 
15-day period. After the initial 15-day period, interest will be 
assessed in 30-day periods pursuant to paragraph (c) of this section.
* * * * *

Robert F. Altneu,
Director, Regulations & Disclosure Law Division, Regulations & Rulings, 
Office of Trade, U.S. Customs and Border Protection.
Thomas C. West, Jr.,
Deputy Assistant Secretary of the Treasury for Tax Policy.
[FR Doc. 2023-23305 Filed 10-20-23; 8:45 am]
BILLING CODE 9111-14-P