[Federal Register Volume 60, Number 85 (Wednesday, May 3, 1995)]
[Proposed Rules]
[Pages 21778-21779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10855]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 162
RIN 1515-AB62
Seizure of Merchandise
AGENCY: Customs Service, Department of the Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: In this document, Customs is proposing to amend its
regulations in response to enactment of the Customs Modernization Act
(``The Mod Act''). Among its other provisions, the Mod Act amended
Section 596(c) of the Tariff Act of 1930 (19 U.S.C. 1595a(c)) to
clarify and codify Customs authority to seize and forfeit merchandise
introduced or attempted to be introduced into the United States
contrary to law. The Mod Act distinguishes between circumstances under
which seizure of such merchandise is mandatory and those in which it is
permissive. The proposed amendment follows the legislation and
specifies the circumstances under which the mandatory and permissive
seizures may take place. The proposed amendment also contains
provisions for the detention of merchandise and the remission of
articles subject to seizure and forfeiture.
DATES: Comments must be received on or before July 3, 1995.
ADDRESSES: Comments (preferably in triplicate) may be submitted to the
Regulations Branch, Office of Regulations and Rulings, U.S. Customs
Service, Franklin Court, 1301 Constitution Avenue, NW., Washington, DC
20229, and may be inspected at Franklin Court, 1099 14th Street NW.,
Washington, DC.
FOR FURTHER INFORMATION CONTACT: Todd Schneider, Penalties Branch (202)
482-6950.
SUPPLEMENTARY INFORMATION:
Background
On December 8, 1993, the President signed the North American Free
Trade Agreement Implementation Act (Pub. L. 103-182). The Customs
Modernization portion of this Act (Title VI), popularly known as the
Customs Modernization Act, or ``the Mod Act'' became effective when it
was signed. Section 624 of Title VI amended section 596(c) of the
Tariff Act of 1930 (19 U.S.C. 1595a(c)) to codify and clarify the
circumstances under which merchandise may be seized and forfeited by
Customs. Customs is now proposing to amend its regulations so that they
will conform to the amended statute.
The Mod Act amendments to section 1595a(c) provide that merchandise
which is introduced or attempted to be introduced into the United
States contrary to law shall be treated in two different manners
depending upon the circumstances of the introduction or attempted
introduction. In instances where the merchandise is stolen, smuggled,
or clandestinely imported or introduced or is a controlled substance or
contraband article, seizure is mandatory.
Paragraph (a) of the proposed amendment addresses conditions where
seizure is mandatory.
Paragraph (b) of the proposed amendment covers those situations in
which seizure is permissive. Seizure is permissive in instances where
the merchandise is subject to health, safety or conservation
restrictions which have not been complied with; when licenses, permits
or other authorizations of a U.S. Government agency are required but do
not accompany the merchandise; when copyright, trademark, or trade name
violations are involved; when trade dress merchandise involved is in
violation of a court order citing section 43 of the Act of July 5, 1946
(15 U.S.C. 1125); and when the merchandise is marked intentionally in
violation of section 304, Tariff Act of 1930 (19 U.S.C. 1304). The
legislation also provides that merchandise may be seized if it is
merchandise for which the importer has received written notices that
previous importations of identical merchandise from the same supplier
were found to have been marked in violation of section 304, Tariff Act
of 1930 (19 U.S.C. 1304).
Paragraph (c) of the proposed amendment provides instructions on
procedures which Customs will follow in resolving questions which
result from seizures which have been made under section 1595a(c).
Paragraph (d) of the proposed amendment contains language
specifying that merchandise which is misclassified or incorrectly
valued, where there is no issue of admissibility, will be subject to
seizure only under section 1592.
The Mod Act also provides that merchandise which is subject to
quantitative restrictions requiring a visa, permit, license or other
similar document from the United States Government or a foreign
government or issuing authority pursuant to a bilateral or multilateral
agreement shall be subject to detention until the appropriate visa,
license, permit or similar document or stamp is presented to Customs.
However, if the visa, license, permit, or similar document or stamp is
counterfeit as presented, the merchandise may be seized. This provision
is contained in paragraph (e) of the proposed amendment.
Comments
Before adopting the proposed amendment, consideration will be given
to any written comments timely submitted to Customs. Comments submitted
will be available for public inspection in accordance with the Freedom
of Information Act (5 U.S.C. 552), Sec. 1.4, Treasury Regulations (31
CFR 1.4), and Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)),
on regular business days between the hours of 9 a.m. and 4:30 p.m. at
the [[Page 21779]] Regulations Branch, 1099 14th Street NW., Suite
4000, Washington, DC.
Regulatory Flexibility Act
Because the proposed regulations closely follow legislative
requirements, pursuant to the provisions of the Regulatory Flexibility
Act (5 U.S.C. 601, et seq.), it is certified that the proposed
regulations, if adopted, will not have a significant economic impact on
a substantial number of small entities. Accordingly, it is not subject
to the regulatory analysis or other requirements of 5 U.S.C. 603 and
604.
Executive Order 12866
This amendment does not meet the criteria for a ``significant
regulatory action'' as specified in E.O. 12866.
Drafting Information
The principal author of this document was Peter T. Lynch,
Regulations Branch, Office of Regulations and Rulings, U.S. Customs
Service. However, personnel from other offices participated in its
development.
List of Subjects in 19 CFR Part 162
Customs duties and inspection, Law enforcement, Seizures and
forfeitures.
Proposed Amendment
It is proposed to amend Part 162, Customs Regulations (19 CFR part
162) as set forth below:
PART 162--RECORDKEEPING, INSPECTION, SEARCH, AND SEIZURE
1. The authority citation for part 162 would be revised in part to
read as follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1624.
* * * * *
Section 162.23 also issued under 19 U.S.C. 1595a(c).
* * * * *
2. In part 162, a new Sec. 162.23 is added to read as follows:
Sec. 162.23 Seizure under section 596(c), Tariff Act of 1930, as
amended (19 U.S.C. 1595a(c)).
(a) Mandatory seizures. The following, if introduced or attempted
to be introduced into the United States contrary to law, shall be
seized pursuant to section 596(c), Tariff Act of 1930, as amended (19
U.S.C. 1595a(c)):
(1) Merchandise that is stolen, smuggled, or clandestinely imported
or introduced;
(2) A controlled substance, as defined in the Controlled Substance
Act (21 U.S.C. 801 et seq.), not imported in accordance with law; or
(3) A contraband article, as defined in section 1 of the Act of
August 9, 1939 (49 U.S.C. App. 781).
(b) Permissive seizures. The following, if introduced or attempted
to be introduced into the United States contrary to law, may be seized
pursuant to section 596(c), Tariff Act of 1930, as amended (19 U.S.C.
1595a(c)):
(1) Merchandise, the importation or entry of which is subject to
any restriction or prohibition imposed by law relating to health,
safety, or conservation, and which is not in compliance with the
applicable rule, regulation or statute;
(2) Merchandise the importation or entry of which requires a
license, permit or other authorization of a United States Government
agency, and which is not accompanied by such license, permit or
authorization;
(3) Merchandise or packaging in which copyright, trademark or trade
name protection violations are involved (including, but not limited to,
a violation of sections 42, 43 or 45 of the Act of July 5, 1946 (15
U.S.C. 1124, 1125 or 1127), sections 506 or 509 of title 17, United
States Code, or sections 2318 or 2320 of title 18, United States Code);
(4) Trade dress merchandise involved in the violation of a court
order citing section 43 of the Act of July 5, 1946 (15 U.S.C. 1125);
(5) Merchandise marked intentionally in violation of 19 U.S.C.
1304;
(6) Merchandise for which the importer has received written notices
that previous importations of identical merchandise from the same
supplier were found to have been in violation of 19 U.S.C. 1304; or
(7) Merchandise subject to quantitative restrictions, found to bear
a counterfeit visa, permit, license, or similar document, or stamp from
the United States or from a foreign government or issuing authority
pursuant to a multilateral or bilateral agreement (but see paragraph
(e), of this section).
(c) Resolution of seizure under section 1595a(c). When merchandise
is either required or authorized to be seized under this section, the
forfeiture incurred may be remitted in accord with 19 U.S.C. 1618, to
include as a possible option the exportation of the merchandise under
such conditions as Customs shall impose, unless its release would
adversely affect health, safety, or conservation, or be in
contravention of a bilateral or multilateral agreement or treaty.
(d) Seizure under 19 U.S.C. 1592. If merchandise is imported,
introduced or attempted to be introduced contrary to a provision of law
governing its classification or value, and there is no issue of
admissibility, such merchandise shall not be seized pursuant to 19
U.S.C. 1595a(c). Any seizure of such merchandise shall be in accordance
with section 1592 (see Sec. 162.75).
(e) Detention only. Merchandise subject to quantitative
restrictions requiring a visa, permit, license, or other similar
document, or stamp from the United States Government or from a foreign
government or issuing authority pursuant to a bilateral or multilateral
agreement, shall be subject to detention in accordance with 19 U.S.C.
1499, unless the appropriate visa, permit, license, or similar
document, or stamp is presented to Customs (but see paragraph (b)(7) of
this section for instances when seizure may occur).
Michael H. Lane,
Acting Commissioner of Customs.
Approved: April 5, 1995.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 95-10855 Filed 5-2-95; 8:45 am]
BILLING CODE 4820-02-P