81 FR 59157 - Toxic Substance Control Act Chemical Substance Import Certification Process Revisions

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

Federal Register Volume 81, Issue 167 (August 29, 2016)

This document proposes to amend the U.S. Customs and Border Protection (CBP) regulations regarding the requirement to file a Toxic Substances Control Act (TSCA) certification when importing into the customs territory of the United States chemicals in bulk form or as part of mixtures and articles containing a chemical or mixture. The proposed regulations include an electronic option for filing TSCA certifications, consistent with the Security and Accountability for Every Port Act of 2006. This document also proposes to clarify and add certain definitions, and to eliminate the paper-based blanket certification process. The document was prepared in consultation with the Environmental Protection Agency (EPA), the agency with primary responsibility for implementing TSCA.

[Federal Register Volume 81, Number 167 (Monday, August 29, 2016)]
[Proposed Rules]
[Pages 59157-59162]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20546]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 81, No. 167 / Monday, August 29, 2016 / 
Proposed Rules

[[Page 59157]]



DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 12 and 127

[USCBP-2016-0056]
RIN 1515-AE13


Toxic Substance Control Act Chemical Substance Import 
Certification Process Revisions

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

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document proposes to amend the U.S. Customs and Border 
Protection (CBP) regulations regarding the requirement to file a Toxic 
Substances Control Act (TSCA) certification when importing into the 
customs territory of the United States chemicals in bulk form or as 
part of mixtures and articles containing a chemical or mixture. The 
proposed regulations include an electronic option for filing TSCA 
certifications, consistent with the Security and Accountability for 
Every Port Act of 2006. This document also proposes to clarify and add 
certain definitions, and to eliminate the paper-based blanket 
certification process. The document was prepared in consultation with 
the Environmental Protection Agency (EPA), the agency with primary 
responsibility for implementing TSCA.

DATES: Comments must be received on or before September 28, 2016.

ADDRESSES: You may submit comments, identified by docket number USCBP-
2016-0056, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, Office of Trade, U.S. Customs and Border Protection, 90 K 
Street NE., 10th Floor, Washington, DC 20229-1177.
    Instructions: All submissions received must include the agency name 
and docket title for this rulemaking, and must reference docket number 
USCBP-2016-0056. All comments received will be posted without change to 
http://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 the 
document.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Submitted comments 
may also be inspected during business days between the hours of 9:00 
a.m. and 4:30 p.m. at the Office of Trade, Customs and Border 
Protection, 90 K Street NE., 10th Floor, Washington, DC. Arrangements 
to inspect submitted comments should be made in advance by calling Mr. 
Joseph Clark at (202) 325-0118.

FOR FURTHER INFORMATION CONTACT: For operational issues related to the 
filing of EPA forms with CBP, contact William R. Scopa, Branch Chief, 
Partner Government Agency Branch, Trade Policy and Programs, Office of 
Trade, at [email protected]. For EPA policy questions, 
contact Harlan Weir, at [email protected].

SUPPLEMENTARY INFORMATION:

Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of the 
proposed rule. CBP also invites comments that relate to the economic, 
environmental, or federalism effects that might result from this 
proposed rulemaking. Comments that will provide the most assistance to 
CBP will reference a specific portion of the proposed rulemaking, 
explain the reason for any recommended change, and include data, 
information, or authority that support such recommended change. See 
ADDRESSES above for information on how to submit comments. CBP is 
particularly interested in comments on the following issues:
     Does collection of the names, phone number, and email 
address of the TSCA import certifier impact your business/industry? If 
so, how (to the extent possible, please quantify impacts)?
     Does the electronic submission of TSCA certifications to 
ACE affect your business/industry? If so, how (to the extent possible, 
please quantify impacts)?

Background

I. Authority

A. Toxic Substances Control Act (TSCA)

    In 1976, Congress enacted the Toxic Substances Control Act (TSCA) 
in order to, among other things, protect human health and the 
environment against unreasonable risks resulting from manufacture, 
distribution in commerce, processing, use, or disposal of chemical 
substances or mixtures. (15 U.S.C. 2601 et seq.) The U.S. Environmental 
Protection Agency (EPA) is the agency primarily responsible for 
implementation of TSCA. Section 13 of TSCA (15 U.S.C. 2612) governs the 
entry of those chemical substances and mixtures, and articles 
containing such chemical substances or mixtures into the customs 
territory of the United States and authorizes the Secretary of the 
Treasury, authority subsequently delegated to the U.S. Customs and 
Border Protection (CBP), to refuse entry of any chemical substance, 
mixture, or article that: (1) Fails to comply with any rule in effect 
under TSCA; or (2) is offered for entry in violation of TSCA section 5 
or 6 (15 U.S.C. 2604 or 2605) or Subchapter IV (15 U.S.C. 2681 et 
seq.), or in violation of a rule or order under those provisions or in 
violation of an order issued in a civil action brought under TSCA 
section 5 or 7 (15 U.S.C. 2604 or 2606) or Subchapter IV (15 U.S.C. 
2681 et seq.). Section 13 also sets forth procedural requirements in 
connection with an entry refusal and authorizes CBP, after consultation 
with EPA, to issue rules for the administration of section 13.

B. Current Regulations

    The CBP regulations implementing section 13 are contained in 
Sec. Sec.  12.118 through 12.127 and Sec.  127.28 of title 19 of the 
Code of Federal Regulations (19 CFR 12.118 through 12.127 and 127.28).
    Section 12.118 describes the statutory authority for the 
promulgation of regulations under the Toxic Substances

[[Page 59158]]

Control Act (15 U.S.C. 2601 et seq.), by the Secretary of Treasury in 
consultation with the Administrator of EPA.
    Section 12.119 sets forth the scope of the regulations in 
Sec. Sec.  12.120 through 12.127 stating that these provisions apply to 
the importation into the customs territory of the United States of 
chemical substances in bulk form and as part of mixtures under TSCA as 
well as articles containing a chemical substance or mixture if so 
required by the Administrator by specific rule under TSCA. Section 
12.120 provides definitions for purposes of the TSCA regulations.
    Under 19 CFR 12.121(a), when a TSCA chemical substance is imported 
in bulk form or as part of a mixture or a non-TSCA chemical is 
imported, an importer or the importer's customs broker must submit a 
signed certification stating either: (1) All chemical substances in the 
shipment comply with all applicable rules or orders under TSCA and that 
the importer is not offering a chemical substance for entry in 
violation of TSCA or any rule or order thereunder (a positive 
certification), or (2) all chemicals in the shipment are not subject to 
TSCA (a negative certification). Section 12.121(b) states that the 
provisions of paragraph (a) apply to a TSCA chemical substance or 
mixture as part of an article only when required by a rule or order 
under TSCA.
    Under 19 CFR 12.121(a)(2)(i), the TSCA certification must be filed 
with the director of the port of entry before release of the shipment. 
The certification may appear as a typed or stamped statement either: 
(1) On the entry document or commercial invoice, or on a preprinted 
attachment to the entry document or commercial invoice, or (2) in the 
case of a release under a special permit for an immediate delivery 
under 19 CFR 142.21 or in the case of an entry under 19 CFR 142.3, on 
the commercial invoice or an attachment to the commercial invoice. 
Further, importers are allowed to use paper blanket certifications 
under 19 CFR 12.121(a)(2)(ii).
    Section 12.125 establishes the procedures for the importer to 
provide notice of exportation whenever the EPA Administrator directs 
CBP to refuse entry under Sec.  12.123. Under Sec.  12.126, an importer 
who intends to abandon a shipment after receiving a notice of refusal 
of entry is directed to provide written notice of intent to abandon to 
CBP.
    Section 12.127 provides that a shipment detained under Sec.  12.122 
shall be considered to be unclaimed or abandoned and shall be turned 
over to the EPA Administrator for storage or disposition when the 
importer has not brought the shipment into compliance or exported the 
shipment within the required time limits.
    Section 127.28(i) sets forth the procedures for the disposition of 
special classes of merchandise that are found to be inadmissible into 
the United States by the EPA for not complying with the terms of TSCA.

II. Proposed Amendments

A. Description, Scope, and Definitions

    CBP is proposing changes to Sec. Sec.  12.118 through 12.121 to 
clarify the description, scope, and definitions of the requirements for 
the importation of chemical substances, mixtures and articles 
containing a chemical substance or mixture, as well as the requirements 
associated with non-TSCA chemicals. In Sec.  12.118 we propose to 
revise the description of the Toxic Substances Control Act for clarity. 
In addition, CBP proposes to clarify the scope of the regulations by 
revising certain definitions. The regulations currently include 
requirements for ``chemical substances,'' regardless of whether the 
substance is subject to TSCA. The definition of ``chemical substance'' 
in section 3(2) of the TSCA excludes certain substances, e.g., 
pesticides. Although these chemicals are excluded from the definition 
of ``chemical substance'' under TSCA, importers are still required to 
file a negative certification under Sec.  12.121(a), to certify that 
the shipment is not subject to TSCA. Because using the term ``chemical 
substance'' to refer to chemicals that are not subject to TSCA may be 
confusing, this document proposes to clarify the scope of the 
regulations in Sec.  12.119 and the reporting requirements in Sec.  
12.121 by including language that makes clear that the regulation 
applies to the importation of chemicals regardless of whether they are 
``chemical substances'' subject to TSCA. In proposed Sec.  12.120, 
definitions are revised to ensure consistency between the terms used in 
the definitions and the terms used elsewhere in these regulations.
    The EPA's regulations implementing section 13 of TSCA, codified at 
40 CFR 707.20(b)(2)(ii), require the submission of a TSCA negative 
certification when a chemical import is not clearly identified as a 
pesticide or other chemical not subject to TSCA. Current CBP 
regulations at 19 CFR part 12 do not include an exemption from the 
negative certification requirement for chemicals that are clearly 
identified as a pesticide or other chemical not subject to TSCA, and 
CBP is not proposing to codify such an exemption. CBP requests 
comments, however, on whether such an exemption is appropriate. The 
requirements for TSCA certification are set forth in CBP's regulations 
in Sec.  12.121, and based on the outcome of this rulemaking, CBP 
anticipates that if necessary EPA would adjust the imports policy 
statement at 40 CFR part 707 accordingly.
    This document also proposes to replace the existing definition of 
the term ``chemical substance in bulk form'' in Sec.  12.120(b) with a 
definition of ``TSCA chemical substance in bulk form'', and add new 
definitions for the terms ``TSCA chemical substance as part of a 
mixture'' in Sec.  12.120(c) and ``non-TSCA chemical'' in Sec.  
12.120(d). These definitions are being revised and added to clarify 
that the certification obligations apply to both chemical substances 
and mixtures that are subject to TSCA, which require a positive 
certification, as well as those chemicals and mixtures that are not 
subject to TSCA, which require a negative certification and to ensure 
that terms used in the regulatory text are defined when necessary. 
``Mixture'' is a statutory term in TSCA that does not apply to non-TSCA 
chemicals. Non-TSCA chemicals require a negative certification whether 
imported as a single non-TSCA chemical or mixed with other non-TSCA 
chemicals. In addition, in Sec. Sec.  12.122(a) and (b), 12.123(b), 
12.124(a), 12.125(b), and 127.28, this document proposes to revise 
references to ``chemical substances, mixtures, or articles'' to clarify 
that these regulations apply to TSCA chemical substances, mixtures, or 
articles as well as non-TSCA chemicals. This document also proposes to 
add a definition of the term ``Administrator'' to mean the 
Administrator of the EPA, and ``covered commodity'' to properly 
describe a commodity that is subject to actions under Sec. Sec.  12.122 
through 12.127 and Sec.  127.28. In Sec.  12.120, this document 
proposes to define the term ``covered commodity'' to include any 
merchandise that is an article, a TSCA chemical substance in bulk form, 
a non-TSCA chemical (as those terms are defined in Sec.  12.120(a), 
(b), or (d)), or that is a mixture as defined in TSCA.
    This document proposes to revise Sec.  12.119 to ensure that the 
scope of the regulation accurately reflects the requirements with 
regard to certain TSCA chemical substances and non-TSCA chemicals. The 
scope as written in the existing regulation does not accurately 
describe all items addressed in the regulation. This proposed rule

[[Page 59159]]

also clarifies the limitation regarding articles (i.e., ``if so 
required by the Administrator by specific rule under TSCA''), applies 
to the requirement for a certification in Sec.  12.121, but does not 
apply to actions taken under Sec.  12.122 and following sections. This 
document proposes, in Sec. Sec.  12.122, 12.124, 12.125, and 127.28, to 
use the term ``covered commodity'' as defined in a proposed definition 
in Sec.  12.120, to refer to any commodity that may be subject to those 
sections. In Sec.  12.124, this proposed rule proposes to change the 
name of the agency from ``Customs Service'' to ``CBP''.

B. Electronic Option Allowed for Import Certification

    On February 10, 2016, CBP published a notice in the Federal 
Register (81 FR 7133) announcing that CBP was modifying the National 
Customs Automation Program (NCAP) test concerning electronic filings of 
data to ACE, known as the Partner Government Agency (PGA) Message Set 
test to allow for the transmission of TSCA certification data. Prior to 
the conclusion of that test, CBP will evaluate the test to assess the 
reliability and utility of the electronic TSCA certification process. 
If CBP determines that the TSCA NCAP test is successful, CBP will 
conclude that test in conjunction with the publication of the final 
rule implementing the changes proposed in this notice.
    The proposed regulations provide an electronic option for filing 
TSCA certifications, consistent with Executive Order (EO) 13659, 
Streamlining the Export/Import Process for America's Businesses, which 
seeks to reduce unnecessary procedural requirements relating to, among 
other things, importing into the United States, while continuing to 
protect our national security, public health and safety, the 
environment, and natural resources. See 79 FR 10657 (February 25, 
2014). The proposed regulations are also consistent with the Security 
and Accountability for Every Port Act of 2006 (``SAFE Port Act,'' 19 
U.S.C. 1411(d)) which mandates that all federal agencies that require 
documentation for clearing or licensing the importation of cargo 
participate in the International Trade Data System (ITDS) by using a 
CBP-authorized Electronic Data Interchange (EDI) system as a single 
portal for the collection and distribution of standard electronic 
import and export data required by all participating Federal agencies.
    In order to submit an electronic positive or negative TSCA 
certification, importers or their agents would be required to submit 
their entry filings to ACE or any other CBP-authorized electronic data 
interchange (EDI) system. This document also proposes to require in 
Sec.  12.121(a)(3) the submission of additional information relating to 
the certifying individual, including name, phone number, and email 
address for TSCA certifications submitted either in writing or 
electronically. The collection of contact information for the 
certifying individual will facilitate the resolution of issues related 
to particular shipments. This document also changes in Sec.  12.121(c) 
the reference to paragraph (a)(1) to paragraph (a) which concerns TSCA 
certifications.

C. Blanket Certifications

    CBP is proposing to eliminate the blanket certification process. 
The existing paper-based blanket certification process set forth in 
current Sec.  12.121(a)(2)(ii) has limited utility because each blanket 
certification is only valid at one port of entry and is only valid for 
one year. In addition, the current blanket certification process is 
more burdensome than the current entry-specific certification process 
because it requires filers to report a statement referring to the 
blanket certification and incorporating it by reference for each entry, 
as well as four data elements on the blanket certification itself, 
including product name, Harmonized Tariff Schedule of the United States 
(HTSUS) subheading number, and the name and address of the foreign 
supplier. Because the electronic TSCA certification process will 
require only a certification code, along with the name and contact 
information of the TSCA certifier, and because the paper-based blanket 
certification has limited application, we believe the elimination of 
the blanket certification process will reduce the reporting burden for 
importers.

D. Notice of Exportation and Abandonment

    In addition, this document proposes to amend Sec. Sec.  12.125 and 
12.126 to allow importers to provide electronic notice of exportation 
and abandonment as an alternative to the paper-based written notice 
process allowed under the existing regulations.
    The automation of these processes will modernize the way that CBP 
and EPA interact with importers of chemicals, and ensure effective 
application of regulatory controls. CBP estimates approximately 2.5 
million TSCA positive certifications and 230,000 TSCA negative 
certifications are received annually. The electronic collection of TSCA 
certifications for processing in ACE will improve information access, 
data integration with CBP entry information, and the data quality of 
TSCA certifications. As a result, CBP expects improved communication 
among EPA, CBP, and importers.

E. Plain Language Revisions

    CBP is proposing minor changes to Sec. Sec.  12.118 through 12.127 
by removing the word ``shall'' and revising the sentence grammar to 
simplify the language. The use of ``shall'' is imprecise and outdated. 
Plain language guidance recommends to replace ``shall'' with the word 
``must,'' ``will,'' or another word that more appropriately conveys the 
intended meaning. This is part of the U.S. government efforts to update 
regulatory text per plain language guidance.

III. Estimated Costs and Benefits of This Rule

A. Costs

    The costs for the regulated community to implement TSCA 
certification via this proposed rule would be minimal. CBP and EPA 
estimate that providing the name, phone number, and email address of 
the import certifier would result in a net increase in information 
collection burden of three minutes for each of the estimated 2.5 
million TSCA positive certifications and 230,000 TSCA negative 
certifications (increased cost of about $3 per certification), yielding 
an annual trade increased cost of $8.41 million.

B. Benefits

    The use of the ACE system is intended to streamline the cargo entry 
and review process. The benefits to industry for implementing 
electronic reporting for TSCA import certification specifically would 
be limited in this rule compared to the overall benefits of utilizing 
ACE. With migration to ACE, the access plus integration with CBP entry 
data will facilitate interagency communications, as well as assist CBP 
and EPA in contacting brokers and importers (with the assistance of the 
new data elements for certifier contact information). Additionally, EPA 
staff will have improved capability to verify information for use in 
developing targeting strategies, and other mission critical information 
gathering tasks.

IV. Statutory and Executive Order Reviews

A. Executive Orders 12866 and 13563

    Executive Orders 13563 and 12866 direct agencies to assess the 
costs and

[[Page 59160]]

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 proposed rule is not a ``significant regulatory action,'' under 
section 3(f) of Executive Order 12866. Accordingly, OMB has not 
reviewed this regulation. An Economic Analysis for this action, which 
is contained in a document entitled ``Economic Analysis for Custom and 
Border Protection (CBP) Proposed Rule on TSCA Import Certifications in 
ACE/ITDS,'' is available in the docket for this rulemaking and is 
summarized in the previous section of this document.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980 (5 U.S.C. 601 et. 
seq.) requires federal agencies to assess the effects of regulations on 
small entities, including businesses, nonprofit organizations, and 
governments, and--in some instances--to examine alternatives to the 
regulations that may reduce adverse economic effects on significantly 
impacted small entities. Section 604 of the RFA, as amended by the 
Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996, 
requires an agency to perform a regulatory flexibility analysis for a 
rule unless the agency certifies under section 605(b) that the 
regulatory action would not have a significant (economic) impact on a 
substantial number of small entities (SISNOSE). The RFA does not 
specifically define ``a significant economic impact on a substantial 
number'' of small entities.
    A small entity analysis (SEA) was conducted and summarized herein. 
The SEA consists of: Two quantitative analyses of impacts of the 
proposed rule on small entities for TSCA positive certifications, a 
qualitative discussion of impacts for TSCA negative certifications, and 
an integrative analysis of the combined universe of TSCA positive and 
TSCA negative certifications (all entities affected by the rule). These 
analyses provide information on the magnitude and extent of cost 
impacts for the purpose of supporting a CBP certification that the 
proposed rule would not result in significant (economic) impact on a 
substantial number of small entities (SISNOSE). For additional details, 
see the Economic Analysis for this action, which is contained in a 
document entitled ``Economic Analysis for Customs and Border Protection 
(CBP) Proposed Rule on TSCA Import Certifications in ACE/ITDS,'' and is 
available in the docket for this rulemaking.
    For TSCA positive certifications, the first quantitative analysis 
is a screening analysis of cost impacts to the smallest entities 
associated with TSCA positive certifications; and the second, a more 
detailed distributional analysis of impacts associated with TSCA 
positive certifications. These analyses use cost impact percentages to 
measure potential impacts on small parent entities affected by the 
proposed rule. The cost impact percentage is defined as annualized 
compliance costs resulting from the TSCA positive certification portion 
of the proposed rule as a percentage of annual revenues or sales, a 
commonly available and objective measure of a company's business 
volume. As is the expected case for this rule, when increases in 
regulatory costs are minimal, they represent a small fraction of a 
typical entity's revenue, and therefore the impacts of the regulation 
are minimal.
    The first quantitative analysis for TSCA positive certifications is 
a screening analysis that provides a concise estimate of small entity 
impacts under the proposed rule by examining whether an ``average small 
parent entity'' incurs significant economic impact. The results of this 
analysis are presented in Table 1. The second quantitative analysis is 
a detailed distributional analysis that provides an estimate of small 
entity impacts under the assumption that affected entities have the 
same size characteristics as the overall industry sector. The results 
of this analysis are presented in Table 2.

                                       Table 1--TSCA Positive Certification Summary of Screening Analysis Results
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             Parent entities with 0 to 4 employees                              All small parent entities
                  NAICS Code    ------------------------------------------------------------------------------------------------------------------------
    NAICS        description                                                                        Average
                                   Average revenue         1% impact            3% impact           revenue          1% impact            3% impact
--------------------------------------------------------------------------------------------------------------------------------------------------------
325 \a\.....  Chemical           $1,457,186.........  No.................  No.................     $80,841,890  No.................  No
               Manufacturing.
324 \b\.....  Petroleum and      2,120,398..........  No.................  No.................     556,652,918  No.................  No
               Coal Products
               Manufacturing.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ For NAICS 325, the analysis of parent entities with 0 to 4 employees include 3,261 businesses while the analysis of all parent entities includes
  9,772 businesses.
\b\ For NAICS 324, the analysis of parent entities with 0 to 4 employees include 391 businesses while the analysis of all parent entities includes 1,189
  businesses.


                                    Table 2--TSCA Positive Certification Summary of Detailed Distributional Analysis
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        Number and percent of small parent entities incurring impact of
                  NAICS Code       Parent     Small                                  . . .                                Minimum      Mean     Maximum
    NAICS        description      entities    parent  ------------------------------------------------------------------   impact     impact     impact
                                             entities           <1%                  1-3%                   >3%           \a\ (%)    \b\ (%)    \c\ (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
325.........  Chemical              11,175     11,175  11,175..............  0...................  0...................     <0.001      0.015      0.032
               Manufacturing.                          (100%)..............  (0%)................  (0%)................
324.........  Petroleum and          3,657      3,657  3,657...............  0...................  0...................     <0.001      0.009      0.022
               Coal Products                           (100%)..............  (0%)................  (0%)................
               Manufacturing.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Of the 11,175 small entities in NAICS 325, the minimum impact experienced by any entity was <0.001%. Of the 3.657 small entities in NAICS 324, the
  minimum impact experienced by any entity was <0.001%.

[[Page 59161]]

 
\b\ Of the 11,175 small entities in NAICS 325, the mean impact experienced by any entity was 0.015%. Of the 3.657 small entities in NAICS 324, the mean
  impact experienced by any entity was 0.009%.
\c\ Of the 11,175 small entities in NAICS 325, the maximum impact experienced by any entity was 0.032%. Of the 3.657 small entities in NAICS 324, the
  maximum impact experienced by any entity was 0.022%.

    The small entity screening analysis for TSCA positive 
certifications demonstrates that no small entities are expected to 
incur impacts of one percent or greater. The detailed distributional 
analysis for TSCA positive certifications shows that while a large 
number of small entities in certain sectors may be affected by the 
proposed rule, all of these small entities are expected to incur 
impacts of considerably less than one percent.
    For TSCA negative certifications, because the unit incremental 
steady state burden associated with positive and negative certification 
are virtually the same (2.93 versus 2.98 minutes, respectively), the 
small entity impacts associated with negative certifications are 
similar to the small entity impacts associated with positive 
certifications, and are considerably less than one percent.
    Integrating the above information for all firms submitting TSCA 
positive certifications and/or TSCA negative certifications requires 
consideration of the degree to which the firms submitting each type of 
certification overlap. Since this detailed information is not readily 
available, an assessment is made via review of lower-bound and upper-
bound impact scenarios. At the lower bound with an assumption of no 
overlap, firms submitting TSCA positive and TSCA negative 
certifications are completely isolated and separate. Each firm incurs 
about three minutes additional burden per certification with associated 
impacts of less than one percent, yielding overall impacts of less than 
one percent for all firms. In the upper-bound scenario, with an 
assumption that all firms overlap, firms submit both TSCA positive and 
negative certifications at the same transaction rates per firm for each 
type of certification. All firms incur twice the burden due to managing 
twice as many certifications (i.e., in comparison to three minutes per 
certification, the ``double duty'' requires six minutes for one 
positive certification plus one negative certification). Nonetheless, 
the associated overall impacts are still less than one percent for all 
firms.
    Per conventional practices including EPA guidance, even if a 
substantial number of entities are affected by a proposed rule, as long 
as the impact to these entities is very low, the rule can be determined 
to not result in a significant impact on a substantial number of small 
entities. Based on the evidence of the analyses summarized above, CBP 
certifies that this proposed rule will not have a significant economic 
impact on a substantial number of small entities (no SISNOSE).

C. Paperwork Reduction Act

    As this proposed rule does not establish a new collection of 
information, as defined in the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507), the provisions of the Paperwork Reduction Act are 
inapplicable.

D. Unfunded Mandates Reform Act (UMRA)

    This proposed rule will not result in the expenditure by State, 
local, and tribal governments, in the aggregate, or by the private 
sector, of $100 million or more in any one year, and it will not 
significantly or uniquely affect small governments. Therefore, no 
actions are necessary under the provisions of the Unfunded Mandates 
Reform Act of 1995.

E. Signing Authority

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

List of Subjects

19 CFR Part 12

    Customs duties and inspection, Entry of merchandise, Imports, 
Reporting and recordkeeping requirements.

19 CFR Part 127

    Customs duties and inspection, Exports, Freight, Reporting and 
recordkeeping requirements.

Proposed Amendments to the CBP Regulations

    For the reasons set forth in the preamble, 19 CFR parts 12 and 127 
are proposed to be amended as set forth below.

PART 12--SPECIAL CLASSES OF MERCHANDISE

0
1. The general and specific authority citations for part 12 continue to 
read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), 
Harmonized Tariff Schedule of the United States (HTSUS)), 1624.
* * * * *
    Sections 12.118 through 12.127 also issued under 15 U.S.C. 2601 
et seq.
* * * * *
0
2. Revise Sec.  12.118 to read as follows:


Sec.  12.118  Toxic Substances Control Act.

    The Toxic Substances Control Act (``TSCA'') (15 U.S.C. 2601 et 
seq.) governs the importation into the customs territory of the United 
States of a chemical substance in bulk form or as part of a mixture, 
and articles containing a chemical substance or mixture. Such 
importations are also governed by these regulations which are issued 
under the authority of section 13(b) of TSCA (15 U.S.C. 2612(b)).
0
3. Revise Sec.  12.119 to read as follows:


Sec.  12.119  Scope.

    Sections 12.120 through 12.127 apply to the importation into the 
customs territory of the United States of:
    (a) Chemical substances in bulk form and as part of a mixture under 
TSCA;
    (b) Chemicals not subject to TSCA; and
    (c) Articles containing a chemical substance or mixture.
0
4. In Sec.  12.120, revise paragraph (b) and add paragraphs (c), (d), 
(e), and (f) to read as follows:


Sec.  12.120  Definitions.

* * * * *
    (b) TSCA chemical substance in bulk form means a chemical substance 
as set forth in section 3(2) of TSCA, (15 U.S.C. 2602(2)) (other than 
as part of an article) in containers used for purposes of 
transportation or containment, provided that the chemical substance is 
intended to be removed from the container and has an end use or 
commercial purpose separate from the container.
    (c) TSCA chemical substance as part of a mixture means a chemical 
substance as set forth in section 3(2) of TSCA, (15 U.S.C. 2602(2)) 
that is part of a combination of two or more chemical substances as set 
forth in section 3(8) of TSCA.
    (d) Non-TSCA chemical means any chemical that is excluded from the 
definition of TSCA chemical substance by section 3(2)(B)(ii) through 
(vi) of TSCA, (15 U.S.C. 2602(2)(B)(ii) through (vi)) (other than as 
part of a mixture), regardless of form.
    (e) Covered commodity means merchandise that meets the terms of one

[[Page 59162]]

of the definitions specified in paragraphs (a), (b), or (d) of this 
section or that is a mixture as defined in TSCA.
    (f) Administrator means the Administrator of the Environmental 
Protection Agency (EPA).
0
5. In Sec.  12.121, revise paragraphs (a), (b), and (c) to read as 
follows:


Sec.  12.121  Reporting requirements.

    (a) Certification required. (1) The importer of a TSCA chemical 
substance in bulk form or as part of a mixture, or the authorized agent 
of such an importer, must certify in writing or electronically that the 
chemical shipment complies with all applicable rules and orders under 
TSCA by filing with CBP the following statement:

    I certify that all chemical substances in this shipment comply 
with all applicable rules or orders under TSCA and that I am not 
offering a chemical substance for entry in violation of TSCA or any 
applicable rule or order thereunder.

    (2) The importer of any non-TSCA chemical, or the authorized agent 
of such an importer, must certify in writing or electronically that the 
chemical shipment is not subject to TSCA by filing with CBP the 
following statement:

    I certify that all chemicals in this shipment are not subject to 
TSCA.

    (3) Filing of certification. (i) The appropriate certification 
required under paragraph (a) of this section must be filed with the 
director of the port of entry in writing or electronically to the 
Automated Commercial Environment (ACE) system or any other CBP-
authorized EDI system prior to release of the shipment. For each entry 
subject to certification under paragraph (a) of this section, the 
importer or their agent must identify the certifier by name, phone 
number, and email address.
    (ii) Written certifications must appear as a typed or stamped 
statement:
    (A) On an appropriate entry document or commercial invoice or on an 
attachment to that entry document or invoice; or
    (B) In the event of release under a special permit for an immediate 
delivery as provided for in Sec.  142.21 of this chapter or in the case 
of an entry as provided for in Sec.  142.3 of this chapter, on the 
commercial invoice or on an attachment to that invoice.
    (b) TSCA chemical substances or mixtures as parts of articles. An 
importer of a TSCA chemical substance or mixture as part of an article 
must comply with the certification requirements set forth in paragraph 
(a) of this section only if required to do so by a rule or order issued 
under TSCA.
    (c) Facsimile signatures. The certification statements required 
under paragraph (a) of this section may be signed by means of an 
authorized facsimile signature.


Sec.  12.122  [Amended]

0
6. Amend Sec.  12.122:
0
a. By removing the word ``shall'' each place it appears and adding in 
its place the word ``will''; and
0
b. In paragraphs (a) and (b) by removing the words ``chemical 
substances, mixtures, or articles'' and adding in their place the words 
``covered commodity''.


Sec.  12.122  [Amended]

0
7. Amend Sec.  12.123:
0
a. By removing the word ``shall'' each place it appears and adding in 
its place the word ``will''; and
0
b. In paragraph (b), third sentence, by removing the words ``chemical 
substance, mixture, or article'' and adding in their place the words 
``a covered commodity''.
0
8. Amend Sec.  12.124 as follows:
0
a. In paragraph (a) by removing the words ``chemical substances, 
mixtures, or articles'' and adding in their place the words ``a covered 
commodity'';
0
b. In paragraph (a) by removing the word ``shall'' and adding in its 
place the word ``must'';
0
c. In paragraph (b) by removing the words ``Customs Service'' and 
adding in its place ``CBP''.
0
9. Amend Sec.  12.125:
0
a. By revising the introductory text;
0
b. In paragraph (b) by removing the words ``chemical substances, 
mixtures, or articles'' and adding in their place the words ``covered 
commodity''.
    The revision reads as follows:


Sec.  12.125  Notice of exportation.

    Whenever the Administrator directs the port director to refuse 
entry under Sec.  12.123 and the importer exports the non-complying 
shipment within the 30 day period of notice of refusal of entry or 
within 90 days of demand for redelivery, the importer must submit 
notice of the exportation either in writing to the port director or 
electronically to CBP through ACE or any other CBP-authorized EDI 
system. The importer must include the following information in the 
notice of exportation:
* * * * *
0
10. Revise Sec.  12.126 to read as follows:


Sec.  12.126  Notice of abandonment.

    If the importer intends to abandon the shipment after receiving 
notice of refusal of entry, the importer must present a notice of 
intent to abandon in writing to the port director or electronically to 
CBP through ACE or any other CBP-authorized EDI system. Notification 
under this section is a waiver of any right to export the merchandise. 
The importer will remain liable for any expense incurred in the storage 
and/or disposal of abandoned merchandise.
0
11. Amend Sec.  12.127 to read as follows:


Sec.  12.127  Decision to store or dispose.

    A shipment detained under Sec.  12.122 will be considered to be 
unclaimed or abandoned and will be turned over to the Administrator for 
storage or disposition as provided for in Sec.  127.28(i) of this 
chapter if the importer has not brought the shipment into compliance 
with TSCA and has not exported the shipment within time limitations or 
extensions specified in Sec.  12.124. The importer will remain liable 
for any expenses in the storage and/or disposal of abandoned 
merchandise.

PART 127--GENERAL ORDER, UNCLAIMED, AND ABANDONED MERCHANDISE

0
12. The general and specific authority citations for part 127 continue 
to read as follows:

    Authority: 19 U.S.C. 66, 1311, 1312, 1484, 1485, 1490, 1491, 
1492, 1493, 1506, 1559, 1563, 1623, 1624, 1646a; 26 U.S.C. 5753.
* * * * *
    Section 127.28 also issued under 15 U.S.C. 2612, 26 U.S.C. 5688;
* * * * *
0
13. Amend Sec.  127.28, paragraph (i) to read as follows:


Sec.  127.28  Special merchandise.

* * * * *
    (i) Goods subject to TSCA Requirements. Goods subject to TSCA 
requirements, i.e., covered commodities as defined in Sec.  12.120 of 
this chapter, will be inspected by a representative of the 
Environmental Protection Agency to ascertain whether they comply with 
Toxic Substances Control Act and the regulations and orders issued 
thereunder. If found not to comply with these requirements that good 
must be exported or otherwise disposed of immediately in accordance 
with the provisions of Sec. Sec.  12.125 through 12.127 of this 
chapter.

R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border Protection.
    Approved: August 23, 2016.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2016-20546 Filed 8-26-16; 8:45 am]
 BILLING CODE 9111-14-P