81_FR_89613 81 FR 89375 - Electronic Notice of Liquidation

81 FR 89375 - Electronic Notice of Liquidation

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

Federal Register Volume 81, Issue 238 (December 12, 2016)

Page Range89375-89381
FR Document2016-29656

This document adopts as a final rule, with changes, proposed amendments to the U.S. Customs and Border Protection (CBP) regulations reflecting that official notice of liquidation, suspension of liquidation, and extension of liquidation will be posted electronically on the CBP Web site. The regulatory revisions reflect that official notice of liquidation will no longer be posted at the customhouses or stations and that official notices of suspension of liquidation and extension of liquidation will no longer be mailed. Additionally, this rule makes certain technical corrections to the CBP regulations to reflect statutory amendments.

Federal Register, Volume 81 Issue 238 (Monday, December 12, 2016)
[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Rules and Regulations]
[Pages 89375-89381]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29656]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 159 and 173

[USCBP-2016-0065; CBP Dec. No. 16-25]
RIN 1515-AE16


Electronic Notice of Liquidation

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

ACTION: Final rule.

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

SUMMARY: This document adopts as a final rule, with changes, proposed 
amendments to the U.S. Customs and Border Protection (CBP) regulations 
reflecting that official notice of liquidation, suspension of 
liquidation, and extension of liquidation will be posted electronically 
on the CBP Web site. The regulatory revisions reflect that official 
notice of liquidation will no longer be posted at the customhouses or 
stations and that official notices of suspension of liquidation and 
extension of liquidation will no longer be mailed. Additionally, this 
rule makes certain technical corrections to the CBP regulations to 
reflect statutory amendments.

DATES: This final rule is effective on January 14, 2017.

FOR FURTHER INFORMATION CONTACT: Virginia McPherson, ACE Business 
Office, Office of Trade, [email protected]. Randy 
Mitchell, Trade Policy and Programs, Office of Trade, 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    Section 500 of the Tariff Act of 1930, as amended (19 U.S.C. 1500), 
provides U.S. Customs and Border Protection (CBP) with the authority, 
under rules and regulations prescribed by the Secretary of the 
Treasury, to, among other things, give or transmit notice of 
liquidation pursuant to an electronic data interchange system. See 19 
U.S.C. 1500(e). Similarly, CBP is authorized to

[[Page 89376]]

give notice of extension of liquidation in such form and manner (which 
may include electronic transmittal) as prescribed by regulation and 
notice of suspension of liquidation in such manner as considered 
appropriate. See 19 U.S.C. 1504(b) and (c). Additionally, the National 
Customs Automation Program (NCAP) was established by Subtitle B of 
Title VI--Customs Modernization, in the North American Free Trade 
Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057, December 
8, 1993), to provide for, among other things, the electronic status of 
liquidation. See 19 U.S.C. 1411.
    Currently, notices of liquidation for formal entry, including 
notices of liquidation by operation of law, are physically posted in 
the customhouse or station at the port of entry on CBP Form 4333, and 
this physical posting is deemed the legal evidence of liquidation. When 
extension or suspension of liquidation occurs, official notices are 
mailed on an appropriately modified CBP Form 4333-A.
    On October 14, 2016, CBP published a notice in the Federal Register 
(81 FR 71019) proposing to amend title 19 of the Code of Federal 
Regulations (``19 CFR'') to reflect that official notice of 
liquidation, suspension of liquidation, and extension of liquidation 
would be posted electronically on the CBP Web site rather than being 
physically posted at the customhouses or stations or mailed. CBP also 
proposed eliminating the mailed paper courtesy notices of liquidation 
but stated its intention to continue sending electronic courtesy 
notices of liquidation, extension, and suspension via a CBP-authorized 
electronic data interchange system to the electronic filer when entries 
liquidate or are extended or suspended. The proposed amendments were 
intended to modernize, centralize, and facilitate the method by which 
importers are provided official notice of liquidation, extension, and 
suspension. Additionally, CBP proposed certain technical corrections to 
sections 159.11(a), 159.12(f), and 173.4a of 19 CFR to update the 
regulatory language to reflect statutory changes to sections 504 and 
520 of the Tariff Act of 1930, as amended (19 U.S.C. 1504 and 1520). 
The notice of proposed rulemaking requested public comments. The public 
comment period closed on November 14, 2016.
    CBP received four comments regarding the proposed amendments to 
part 159 of 19 CFR regarding posting official notice of liquidation, 
suspension of liquidation, and extension of liquidation on the CBP Web 
site. No comments were received on the technical corrections to the 
regulations contained in sections 159.11(a), 159.12(f), and 173.4a of 
19 CFR reflecting the statutory changes to 19 U.S.C. 1504 and 1520.

Discussion of Comments

    Four comments were received in response to the notice of proposed 
rulemaking. CBP has addressed the comments below:
    Comment: Three commenters expressed support for the proposed 
changes to post liquidation information on CBP's Web site, www.cbp.gov.
    CBP Response: CBP appreciates the support and the input from the 
commenters.
    Comment: One commenter suggested that the regulations state that 
the link will be visible on the CBP home page so that it remains 
conspicuous regardless of future CBP Web site changes and the public 
will not have to search for the link.
    CBP Response: CBP agrees that the link needs to be conspicuous 
although not necessarily on the homepage. The link will be labelled 
``Official Notices of Liquidation'' and, pursuant to 19 CFR 159.9(b), 
it will be placed in a conspicuous place on CBP's Web site in such a 
manner that it can readily be located and consulted by all interested 
persons. CBP assures that the link will remain conspicuous regardless 
of any potential future CBP Web site changes.
    Comment: One commenter stated that the regulations should include a 
definition of what constitutes the posting and its data elements.
    CBP Response: CBP disagrees that adding a definition of what 
constitutes the posting and its data elements is necessary because CBP 
believes such a definition would not add value or clarity. As proposed, 
the regulations at 19 CFR 159.9 provide that the posting will occur on 
CBP's Web site, address the date of posting, state that the electronic 
posting will be deemed the legal evidence of liquidation, and address 
liquidations by operation of law.
    Comment: One commenter stated that the regulations appear not to 
deal with reliquidations and proposed adding reliquidation to 19 CFR 
159.9(b).
    CBP Response: CBP disagrees with the commenter. CBP intends that 
the posting of reliquidations will also be done electronically. Section 
173.3(b) regarding reliquidation (which is in the current regulations 
and was not proposed to be amended) provides that notice of 
reliquidation will be given in accordance with the requirements for 
giving notice of the original liquidation. Accordingly, CBP believes 
there is no need to add reliquidation to 19 CFR 159.9(b).
    Comment: One commenter stated that the regulation should spell out 
in detail how the date of posting will appear.
    CBP Response: CBP disagrees that the regulation needs to spell out 
in detail how the date of posting will appear as the posting will be in 
a format that is easy to understand. The date of posting will appear in 
standard MM/DD/YYYY format. For example, December 31, 2016, will appear 
as 12/31/2016.
    Comment: One commenter asked if importers or brokers will be able 
to print the notice and asked if the printed notices would include the 
posting date.
    CBP Response: A printed copy may be obtained using a web browser's 
print functionality which should include the information that is 
displayed on the screen, such as the posting date.
    Comment: One commenter stated that the liquidation information 
posted on the CBP Web site should be searchable using data elements.
    CBP Response: CBP agrees and has designed the liquidation 
information posted on the CBP Web site to be searchable using data 
elements.
    Comment: One commenter stated that the large majority of 
liquidations take place on a Friday and asked if that practice will 
continue.
    CBP Response: CBP has designed the functionality so that entries 
that are set for auto-liquidation, that is, liquidations that occur on 
the standard 314-day cycle without CBP intervention will continue to be 
made on Fridays. However, for manual liquidations where CBP action is 
required, liquidations will generally post to the Web site within 90 
minutes after CBP processes the liquidation.
    Comment: Two commenters suggested that the 15-month timeline for 
maintaining liquidation information on the CBP Web site should be 
stated in the regulations.
    CBP Response: CBP agrees that adding this language to the 
regulations will be beneficial. Accordingly, CBP has added language to 
Sec. Sec.  159.9(c)(1), 159.12(b), and 159.12(c) stating that notices 
of liquidation, extension, and suspension, respectively, will be 
maintained on the CBP Web site for a minimum of 15 months.
    Comment: One commenter requested that CBP place in the regulations 
the process for requesting access to notices that are no longer 
available on the Web site beyond the 15-month timeline.
    CBP Response: CBP disagrees that this process needs to be included 
in the regulations. Guidance will be provided in the Automated 
Commercial Environment (ACE) Business Rules

[[Page 89377]]

Process Document, which can be updated in a quicker manner than the 
regulations should a more efficient process for obtaining historical 
information be developed. When the information is no longer available 
on the CBP Web site, a request may be made to CBP for historical 
information by contacting the filer's assigned client representative or 
by contacting the appropriate port or Center of Excellence and 
Expertise directly. Additionally, ACE account holders may run queries 
to obtain the historical information without having to contact CBP.
    Comment: One commenter stated that CBP has the ability to post 
notices regarding liquidations by operation of law immediately when 
they occur in the electronic environment rather than ``within a 
reasonable period'' after each liquidation by operation of law. Another 
commenter asked that CBP post notice of liquidation by operation of law 
within 14 days of the liquidation.
    CBP Response: CBP disagrees that it has the ability to post this 
information immediately upon occurrence because in many situations, CBP 
is unaware of the liquidation by operation of law for some time after 
it has occurred. However, the commenters validly pointed out that the 
electronic environment enables CBP to post notice without delay. 
Accordingly, based on these comments, CBP has amended the regulation at 
19 CFR 159.9(c)(2)(i) to state that CBP will post this information when 
it has determined that an entry has liquidated by operation of law, and 
has removed the phrase regarding posting within a reasonable time 
period.
    Comment: One commenter asked if the term ``filer'' was the filer 
code or the name of the importer of record and noted that both the 
filer code and the importer of record should be included with the 
information posted on the CBP Web site.
    CBP Response: The term ``filer'' is not referencing the filer code 
or importer of record number but is instead referring to the party 
transmitting entry/entry summary data to CBP. The filer code is a 
searchable data element and will be displayed in the search results. 
However, as stated in the notice of proposed rulemaking, when the 
results of a search are viewed, the CBP Web site will not display the 
importer of record numbers.
    Comment: One commenter asked if people in one location may search 
the notices for another location and used the example of being in Miami 
and searching notices from Long Beach.
    CBP Response: Because information will be posted on the CBP Web 
site, all notices of liquidation throughout the country will be 
available to view and search regardless of the physical location of the 
searcher.
    Comment: One commenter asked that the liquidation information 
remain on the CBP Web site indefinitely until historical information is 
available to sureties through the ACE portal, so that the surety can 
generate search results easily for its own list of entries. This 
commenter also requested that ``Surety Code'' be added to the list of 
data elements.
    CBP Response: As stated elsewhere in the document, the liquidation 
information will be maintained on the CBP Web site for a minimum of 15 
months. Regarding sureties, CBP has provided for surety code to be a 
searchable data element.
    Comment: One commenter asked that the surety on an entry be 
included in 19 CFR 159.9(d) as a party to receive courtesy notices of 
liquidation.
    CBP Response: A surety on an entry is able to receive courtesy 
notice if it is set up in ACE to receive courtesy notices of 
liquidation. However, based on this comment, CBP has amended the 
regulation at 19 CFR 159.9(d) to state that courtesy notices of the 
extension will be sent to the entry filer or its agent and the surety 
on an entry.
    Comment: One commenter asked that the filer and the surety be 
included as a recipient of courtesy notices of extension of liquidation 
in 19 CFR 159.12(d)(2) in order to maintain consistency with 19 CFR 
159.12(b) and (c) regarding whom the regulations identify as parties 
receiving courtesy notices.
    CBP Response: CBP agrees that the regulations should each be 
consistent in this regard. Accordingly, based on this comment, CBP has 
amended the regulation at 19 CFR 159.12(b), (c), and (d)(2), to state 
that courtesy notices of the extension will be sent to the entry filer 
or its agent and the surety on an entry through a CBP-authorized 
electronic data interchange.

Conclusion

    Accordingly, after review of the comments and further 
consideration, CBP has decided to adopt as final, with the changes 
discussed above, the proposed rule published in the Federal Register 
(81 FR 71019) on October 14, 2016. Specifically, the final rule 
contains the following changes based on the comments:

--Clarification in Sec.  159.9(c)(1), which pertains to the date of 
liquidation, that notices of liquidation will be maintained on 
www.cbp.gov for a minimum of 15 months.
--Clarification in Sec.  159.9(c)(2)(i), which pertains to entries 
liquidated by operation of law, that notice of such will be posted when 
CBP determines that an entry has liquidated by operation of law.
--Clarification in Sec.  159.9(c)(2)(ii) by making editorial changes 
for ease of reading.
--Clarification in Sec.  159.9(d), which pertains to courtesy notice of 
liquidation, that CBP will endeavor to provide courtesy notice to the 
entry filer or its agent and the surety on an entry.
--Clarification in Sec.  159.12(b), which pertains to notices of 
extension, that notices of extension will be maintained on www.cbp.gov 
for a minimum of 15 months and that courtesy notice will be sent to the 
entry filer or its agent and the surety on an entry.
--Clarification in Sec.  159.12(c), which pertains to notices of 
suspension, that notices of suspension will be maintained on 
www.cbp.gov for a minimum of 15 months and that courtesy notice will be 
sent to the entry filer or its agent and the surety on an entry.
--Clarification in Sec.  159.12(d)(2), which pertains to additional 
extensions at the importer's request, that courtesy notice will be sent 
to the entry filer or its agent and the surety on an entry.

Executive Orders 13563 and 12866

    Executive Orders 13563 and 12866 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule is not a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866. Accordingly, the Office of 
Management and Budget has not reviewed this regulation.

Regulatory Flexibility Act

    This section examines the impact of this rule on small entities per 
the requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.), as amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996. The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996, requires agencies

[[Page 89378]]

to assess the impact of regulations on small entities. A small entity 
may be a small business (defined as any independently owned and 
operated business not dominant in its field that qualifies as a small 
business per the Small Business Act); a small not-for-profit 
organization; or a small governmental jurisdiction (locality with fewer 
than 50,000 people).

Background

    Most goods imported into the United States are subject to duty 
assessments, which CBP conducts during a process known as liquidation. 
During this liquidation process, CBP performs a final computation of 
duties (not including vessel repair duties) on the entry covering the 
imported merchandise and then closes out the entry. In accordance with 
current regulations, CBP officially notifies importers,\1\ as well as 
the public, of a formal entry's liquidation by posting a weekly 
bulletin notice of liquidation in a readily-located and consulted place 
in the customhouse or station at each port of entry.\2\ These notices 
are generally available for importers and the public to peruse for a 
few weeks before they are placed in CBP storage. CBP provides the same 
official notice of liquidation for informal entries where a duty cannot 
be determined at the time of entry and for reliquidated dutiable 
entries.\3\ For other informal, mail, and baggage entries, CBP 
furnishes official notice of liquidation to an importer (and its surety 
when required) by a suitable printed statement appearing on the receipt 
issued for duties collected, by release of the merchandise under a free 
entry, or by acceptance of the free entry after release under a special 
permit for immediate delivery.\4\ Once CBP provides official notice of 
liquidation or reliquidation, importers generally have 180 days to file 
a protest challenging certain aspects of their entry's liquidation.\5\ 
In addition to these official notices, CBP endeavors to provide 
importers (and their sureties) informal, courtesy notices of 
liquidation and reliquidation for entries scheduled to be liquidated or 
deemed liquidated by operation of law. For the majority of importers 
filing entries, who actually file electronically, CBP generally sends 
these filers (and their sureties) courtesy notices of liquidation and 
reliquidation via a CBP-authorized electronic data interchange system 
before the official notice (and protest period's start date). For the 
small portion of importers who file entries by paper, CBP typically 
mails paper courtesy notices of liquidation and reliquidation using CBP 
Form 4333-A to these filers on or around the date of the official 
notice's posting. These courtesy notices are not direct, formal, and 
decisive notices of liquidation or reliquidation; however, based on 
anecdotal evidence, most importers rely on these courtesy notices to 
determine liquidations and reliquidations to avoid the time and 
resource costs incurred to view official bulletin notices at U.S. 
customhouses or stations.
---------------------------------------------------------------------------

    \1\ For the purposes of this analysis, ``importers'' can also 
refer to agents, such as brokers, who act on behalf of importers.
    \2\ See 19 CFR 159.9(b).
    \3\ See 19 CFR 159.10.
    \4\ See 19 CFR 159.10.
    \5\ For entries filed before December 18, 2004, the time limit 
is within 90 days after liquidation, but for entries filed on or 
after that date, it is now 180 days (see CFR part 174; see 19 U.S.C. 
1514(c)(3) as amended by section 2103(2)(B), Pub. L. 108-429).
---------------------------------------------------------------------------

    Some liquidations may be extended or suspended. If liquidation is 
extended or suspended, CBP officially notifies the importer and its 
surety by mail using CBP Form 4333-A, as appropriately modified.\6\ CBP 
also provides importers who file entries electronically and their 
sureties with electronic courtesy notices of extension and suspension, 
which are generally sent in advance of mailed notifications. Although 
these courtesy notices are not direct, formal, and decisive notices of 
extension or suspension, CBP believes that most importers (and all 
sureties) rely on them to determine extensions and suspensions because 
importers receive them before the official notice and they contain the 
same information. Importers who file entries by paper do not receive 
electronic or paper courtesy notices of extension and suspension.
---------------------------------------------------------------------------

    \6\ See 19 CFR 159.12.
---------------------------------------------------------------------------

    In an effort to modernize the liquidation, reliquidation, 
extension, and suspension notification processes, CBP, through this 
rulemaking, will discontinue physically posting official bulletin 
notices of liquidation and reliquidation at U.S. port of entry 
customhouses and stations. Instead, CBP will post these official 
notices in a readily-located, conspicuous place on the CBP Web site: 
www.cbp.gov. Additionally through this rule, CBP will begin posting 
electronically on www.cbp.gov official notices of extension and 
suspension that are currently mailed. CBP will tie all electronic 
notices directly to an already-developed, automated process by which 
entries are liquidated, reliquidated, extended, or suspended, ensuring 
that these actions and CBP's official notifications of these actions 
occur almost simultaneously. This rule will not change the method in 
which CBP provides electronic courtesy notices of liquidation, 
reliquidation, extension, or suspension, but it will discontinue the 
practice of mailing any paper notices. For other informal, mail, and 
baggage entries, CBP will continue to furnish official notices of 
liquidation and reliquidation to importers (and their sureties when 
required) by a suitable printed statement appearing on the receipt 
issued for duties collected, by release of the merchandise under a free 
entry, or by acceptance of the free entry after release under a special 
permit for immediate delivery. As described next, these regulatory 
changes will introduce benefits and costs to importers, including small 
entities.
    For most importers (and their sureties), this rule will simply 
change the way in which they can access official notices of 
liquidation, reliquidation, extension, and suspension. Instead of 
posting weekly official bulletin notices of liquidation and 
reliquidation at each U.S. customhouse and station and mailing official 
notices of extension and suspension, CBP will publish these notices on 
the CBP Web site once this rule is in effect. CBP will also discontinue 
mailing all paper courtesy notices of liquidation and reliquidation 
with this rule. Because the vast majority of importers (and all their 
sureties) already rely on the electronic courtesy notices of 
liquidation, reliquidation, extension, and suspension that CBP 
provides, this rule's transition to electronic official notice 
publications will presumably only affect a small portion of importers. 
Specifically, this transition to electronic notice publications will 
only affect those importers who currently rely on official bulletin 
notices physically posted at U.S. customhouses and stations and those 
importers who receive and rely on paper courtesy notifications of 
liquidation and reliquidation and paper official notices of extension 
and suspension due to their paper entry filings.

Number of Small Entities Affected by Rule

    Using historical data, CBP estimates that importers took an average 
of 2,500 trips to U.S. customhouses or stations each year for the 
single purpose of viewing official bulletin notices because the 
official bulletin notice's posting date was significant to a protest 
that importer planned to file.\7\ CBP also estimates that

[[Page 89379]]

CBP mailed an average of 23,500 paper courtesy notices of liquidation 
and reliquidation and 3,100 paper notices of extension and suspension 
each year to importers who filed paper entries.\8\ Considering this 
historical data, CBP estimates that this rule could affect up to 
approximately 29,100 importers per year. To the extent that the same 
importer took more than one trip to the U.S. customhouse or station to 
view an official bulletin notice or received and relied on more than 
one paper notice, the number of importers affected by this rule will be 
lower. Nonetheless, because the majority of importers are small 
businesses, CBP believes this rule will affect a substantial number of 
small entities.
---------------------------------------------------------------------------

    \7\ Based on the 2,500 Applications for Further Review (AFRs) 
filed with protests in 2015. Importers or their attorneys who file 
AFRs depend on the exact dates of liquidation or reliquidation to 
file a timely protest, and thus likely travel to a U.S. customhouse 
or station to physically view official bulletin notices with the 
official dates of liquidation and reliquidation. Using the 2015 AFR 
filings as a proxy for trips taken to view official bulletin 
notices, CBP estimates that importers or their attorneys took 2,500 
trips to U.S. customhouses or stations each year for the single 
purpose of viewing official bulletin notices. Sources: 19 CFR 
174.12(e) and email correspondence with CBP's Office of Trade on 
July 15, 2016.
    \8\ Based on data received through email correspondence with 
CBP's Office of Trade on May 26, 2016; June 22-24, 2016; August 29, 
2016; and September 21, 2016.
---------------------------------------------------------------------------

Impacts of Rule on Small Entities

    This rule's transition to fully electronic notices will require the 
estimated 29,100 importers who currently rely on official bulletin 
notices physically posted at U.S. customhouses and stations and those 
who rely on paper notices of liquidation, reliquidation, extension, and 
suspension to visit the CBP Web site to determine entry liquidations, 
reliquidations, extensions, and suspensions.\9\ To view this rule's 
official bulletin notices on the CBP Web site, CBP assumes that these 
importers will spend an added 4 minutes (0.0667 hours) \10\ navigating 
the CBP Web site to find a liquidation, reliquidation, extension, or 
suspension notice, at a time cost of $2.01 based on the assumed hourly 
wage rate for importers.\11\ Most affected importers will presumably 
visit the CBP Web site once per year to view an entry's official notice 
of liquidation, reliquidation, extension, or suspension, for a total 
cost of $2.01 per year.\12\ However, some affected importers, such as 
those who receive extension and suspension notices that are in effect 
for an unknown amount of time, could visit the CBP Web site more than 
once per year for an entry, incurring the access cost of $2.01 each 
time they visit the CBP Web site. Even if an importer accesses the CBP 
Web site twice a month for an entry, or 24 times per year, it will 
incur only a $48.24 cost to do so. The average value per entry was 
$69,300 in FY 2015.\13\ The range of annual importer costs for this 
rule ($2.01 to $48.24) amounts to between 0.003 percent and 0.07 
percent of this average entry value. Likewise, if an importer processes 
multiple entries per year, its total costs from this rule will be 
higher but the value of its entries will also be higher, meaning that 
the average cost to the importer will be between 0.003 percent and 0.07 
percent of the entry value regardless of the number of entries the 
importer files per year. CBP does not consider this to be a significant 
economic impact.
---------------------------------------------------------------------------

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

    Along with the minor Web site access cost imposed by this rule, 
this rule will provide benefits to importers who currently rely on 
official bulletin notices physically posted at U.S. customhouses and 
stations. This rule's electronic publication of official bulletin 
notices of liquidation and reliquidation will allow these importers to 
avoid visiting U.S. customhouses and stations for formal entry 
liquidation and reliquidation information, which typically occur 2,500 
times a year. For each trip to a U.S. customhouse or station avoided, 
importers will save an estimated 45 minutes (0.75 hours), which will 
result

[[Page 89380]]

in a time cost saving of $22.57 using the average hourly wage for 
importers of $30.09.\14\ Importers will also save $16.20 in travel 
costs per trip based on the estimated distance they sustain from 
traveling to and from a U.S. customhouse or station--30 miles--and the 
IRS's $0.54 standard mileage rate for business purposes.\15\ To the 
extent that some trips are taken for multiple purposes, not just for 
viewing an official bulletin notice of liquidation or reliquidation, 
fewer costs will be avoided and the benefits of this rule per trip will 
be lower.
---------------------------------------------------------------------------

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

    The electronic bulletin notices introduced with this rule will also 
provide benefits of eased access, relatively quicker notification, and 
extended viewing to importers. In particular, this electronic 
transition will allow importers to easily view and query a complete, 
consolidated list of U.S. entry liquidations, reliquidations, 
extensions, and suspensions, thus facilitating the process by which 
these individuals obtain such entry information. For importers who 
typically rely on paper courtesy notices for liquidation and 
reliquidation information, which they receive by mail after the 
official notice's posting, this electronic posting will provide the 
added benefit of more timely notice and additional protest time. 
Importers who receive and rely on paper courtesy notices will also 
benefit from this rule's consolidated electronic notice posting. This 
change will allow importers and their agents to view liquidation, 
reliquidation, extension, and suspension notices simultaneously instead 
of individually as they currently do through paper notices. 
Furthermore, importers will have at least 14 more months to view 
official liquidation, reliquidation, extension, and suspension notices 
before having to request access to the notices through CBP.

Conclusion

    Although CBP believes that this rule will affect a substantial 
number of small entities, specifically importers, CBP believes that the 
(negative) economic impact of this rule on small entities will not be 
significant. Accordingly, CBP certifies that this regulation will not 
have a significant economic impact on a substantial number of small 
entities. CBP received no public comments on the Electronic Notice of 
Liquidation Notice of Proposed Rulemaking challenging this 
certification.

Paperwork Reduction Act

    As there is no collection of information proposed in this document, 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
are inapplicable.

Signing Authority

    This document is being issued in accordance with Sec.  0.1(a)(1) of 
the CBP Regulations (19 CFR 0.1(a)(1)) pertaining to the authority of 
the Secretary of the Treasury (or his/her delegate) to approve 
regulations related to certain customs revenue functions.

List of Subjects

19 CFR Part 159

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

19 CFR Part 173

    Administrative practice and procedure, Customs duties and 
inspection.

Amendments to the CBP Regulations

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

PART 159--LIQUIDATION OF DUTIES

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

    Authority:  19 U.S.C. 66, 1500, 1504, 1624.

* * * * *

0
2. Section 159.9 is revised to read as follows:


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

    (a) Notice of liquidation. Notice of liquidation of formal entries 
will be provided on CBP's public Web site, www.cbp.gov.
    (b) Posting of notice. The notice of liquidation will be posted for 
the information of importers in a conspicuous place on www.cbp.gov in 
such a manner that it can readily be located and consulted by all 
interested persons.
    (c) Date of liquidation--(1) Generally. The notice of liquidation 
will be dated with the date it is posted electronically on www.cbp.gov 
for the information of importers. This electronic posting will be 
deemed the legal evidence of liquidation. The notice of liquidation 
will be maintained on www.cbp.gov for a minimum of 15 months from the 
date of posting.
    (2) Exception: Entries liquidated by operation of law. (i) Entries 
liquidated by operation of law at the expiration of the time 
limitations prescribed in section 504, Tariff Act of 1930, as amended 
(19 U.S.C. 1504), and set out in Sec. Sec.  159.11 and 159.12, will be 
deemed liquidated as of the date of expiration of the appropriate 
statutory period and will be posted on www.cbp.gov when CBP determines 
that each entry has liquidated by operation of law and will be dated 
with the date of liquidation by operation of law.
    (ii) For liquidation notices that were posted or lodged in the 
customhouse, pursuant to section 514, Tariff Act of 1930, as amended 
(19 U.S.C. 1514) and part 174 of this chapter, a protest of a decision 
relating to an entry made before December 18, 2004, must be filed 
within 90 days from the date of liquidation of an entry by operation of 
law or within 90 days from the date the bulletin notice thereof was 
posted or lodged in the customhouse, or, in the case of a protest of a 
decision relating to an entry made on or after December 18, 2004, 
within 180 days from the date of liquidation of an entry by operation 
of law.
    (iii) For liquidation notices posted on www.cbp.gov, pursuant to 
section 514, Tariff Act of 1930, as amended (19 U.S.C. 1514) and part 
174 of this chapter, a protest of a decision relating to an entry made 
before December 18, 2004, must be filed within 90 days from the date of 
liquidation of an entry by operation of law or within 90 days from the 
date notice thereof is posted on www.cbp.gov, or, in the case of a 
protest of a decision relating to an entry made on or after December 
18, 2004, within 180 days from the date of liquidation of an entry by 
operation of law.
    (d) Courtesy notice of liquidation. CBP will endeavor to provide 
the entry filer or its agent and the surety on an entry with a courtesy 
notice of liquidation for all electronically filed entries liquidated 
by CBP or deemed liquidated by operation of law. The courtesy notice of 
liquidation that CBP will endeavor to provide will be electronically 
transmitted pursuant to a CBP authorized electronic data interchange 
system if the entry was filed electronically in accordance with part 
143 of this chapter. This notice will serve as an informal, courtesy 
notice

[[Page 89381]]

and not as a direct, formal, and decisive notice of liquidation.


Sec.  159.10   [Amended]

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

0
4. In Sec.  159.11, paragraph (a) is revised to read as follows:


Sec.  159.11   Entries liquidated by operation of law.

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

0
5. In Sec.  159.12, revise paragraphs (b), (c), (d)(2), and (f) and 
remove paragraph (g).
    The revisions read as follows:


Sec.  159.12   Extension of time for liquidation.

* * * * *
    (b) Notice of extension. If the port director extends the time for 
liquidation, as provided in paragraph (a)(1) of this section, the 
official notice of extension and reasons therefor will be posted on 
www.cbp.gov. The notice of extension will be maintained on www.cbp.gov 
for a minimum of 15 months from the date of posting. The port director 
will also endeavor to transmit a courtesy notice of extension to the 
entry filer or its agent and the surety on an entry through a CBP-
authorized electronic data interchange system.
    (c) Notice of suspension. If the liquidation of an entry is 
suspended as required by statute or court order, as provided in 
paragraph (a)(2) of this section, the official notice of suspension 
will be posted on www.cbp.gov. The notice of suspension will be 
maintained on www.cbp.gov for a minimum of 15 months from the date of 
posting. The port director will also endeavor to transmit a courtesy 
notice of suspension to the entry filer or its agent and the surety on 
an entry through a CBP-authorized electronic data interchange system.
    (d) * * *
    (2) At importer's request. If the statutory period has been 
extended for one year at the importer's request, and the importer 
thereafter determines that additional time is necessary, it may request 
another extension in writing before the original extension expires, 
giving reasons for its request. If the port director finds that good 
cause (as defined in paragraph (a)(1)(ii) of this section) exists, the 
official notice of extension extending the time for liquidation for an 
additional period not to exceed one year will be posted on www.cbp.gov, 
and CBP will provide courtesy notice of the extension to the entry 
filer or its agent and the surety on an entry through a CBP-authorized 
electronic data interchange system.
* * * * *
    (f) Time limitation. An entry not liquidated within four years from 
either the date of entry, or the date of final withdrawal of all the 
merchandise covered by a warehouse entry, will be deemed liquidated by 
operation of law at the rate of duty, value, quantity, and amount of 
duty asserted by the importer of record, unless liquidation continues 
to be suspended by statute or court order. CBP will endeavor to provide 
a courtesy notice of liquidation, in accordance with Sec.  159.9(d), in 
addition to the notice specified in Sec.  159.9(c)(2)(i).

PART 173--ADMINISTRATIVE REVIEW IN GENERAL

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

    Authority:  19 U.S.C. 66, 1501, 1520, 1624.


0
7. Revise Sec.  173.4a to read as follows:


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

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

R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border Protection.
    Approved: December 6, 2016.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2016-29656 Filed 12-9-16; 8:45 am]
 BILLING CODE 9111-14-P



                                                                 Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations                                              89375

                                                List of Subjects in 14 CFR Part 39                         (1) Alternative Methods of Compliance                Issued in Renton, Washington, on
                                                                                                        (AMOCs): The Manager, International                   November 25, 2016.
                                                  Air transportation, Aircraft, Aviation                Branch, ANM–116, Transport Airplane                   John P. Piccola, Jr.,
                                                safety, Incorporation by reference,                     Directorate, FAA, has the authority to
                                                Safety.                                                                                                       Acting Manager, Transport Airplane
                                                                                                        approve AMOCs for this AD, if requested               Directorate, Aircraft Certification Service.
                                                Adoption of the Amendment                               using the procedures found in 14 CFR 39.19.
                                                                                                                                                              [FR Doc. 2016–29243 Filed 12–9–16; 8:45 am]
                                                                                                        In accordance with 14 CFR 39.19, send your
                                                  Accordingly, under the authority                      request to your principal inspector or local          BILLING CODE 4910–13–P
                                                delegated to me by the Administrator,                   Flight Standards District Office, as
                                                the FAA amends 14 CFR part 39 as                        appropriate. If sending information directly
                                                follows:                                                to the International Branch, send it to ATTN:         DEPARTMENT OF HOMELAND
                                                                                                        Tom Rodriguez, Aerospace Engineer,                    SECURITY
                                                PART 39—AIRWORTHINESS                                   International Branch, ANM–116, Transport
                                                DIRECTIVES                                              Airplane Directorate, FAA, 1601 Lind                  U.S. Customs and Border Protection
                                                                                                        Avenue SW., Renton, WA 98057–3356;
                                                ■ 1. The authority citation for part 39                 telephone 425–227–1405; fax 425–227–1149.             DEPARTMENT OF THE TREASURY
                                                continues to read as follows:                           Information may be emailed to: 9-ANM-116-
                                                    Authority: 49 U.S.C. 106(g), 40113, 44701.          AMOC-REQUESTS@faa.gov. Before using
                                                                                                        any approved AMOC, notify your appropriate            19 CFR Parts 159 and 173
                                                § 39.13   [Amended]                                     principal inspector, or lacking a principal           [USCBP–2016–0065; CBP Dec. No. 16–25]
                                                                                                        inspector, the manager of the local flight
                                                ■ 2. The FAA amends § 39.13 by adding                   standards district office/certificate holding         RIN 1515–AE16
                                                the following new airworthiness                         district office.
                                                directive (AD):                                            (2) Contacting the Manufacturer: For any           Electronic Notice of Liquidation
                                                2016–25–04 Fokker Services B.V.:                        requirement in this AD to obtain corrective
                                                    Amendment 39–18730; Docket No.                      actions from a manufacturer, the action must          AGENCY:  U.S. Customs and Border
                                                    FAA–2015–7530; Directorate Identifier               be accomplished using a method approved               Protection, HDS; Department of the
                                                    2014–NM–257–AD.                                     by the Manager, International Branch, ANM–            Treasury.
                                                                                                        116, Transport Airplane Directorate, FAA; or          ACTION: Final rule.
                                                (a) Effective Date                                      the EASA; or Fokker B.V. Service’s EASA
                                                  This AD is effective January 17, 2017.                DOA. If approved by the DOA, the approval             SUMMARY:    This document adopts as a
                                                                                                        must include the DOA-authorized signature.            final rule, with changes, proposed
                                                (b) Affected ADs
                                                                                                        (i) Related Information                               amendments to the U.S. Customs and
                                                  None.
                                                                                                          Refer to Mandatory Continuing
                                                                                                                                                              Border Protection (CBP) regulations
                                                (c) Applicability                                                                                             reflecting that official notice of
                                                                                                        Airworthiness Information (MCAI) European
                                                   This AD applies to all Fokker Services B.V.          AD 2014–0271, dated December 12, 2014, for            liquidation, suspension of liquidation,
                                                Model F28 Mark 0070 and 0100 airplanes,                 related information. This MCAI may be                 and extension of liquidation will be
                                                certificated in any category.                           found in the AD docket on the Internet at             posted electronically on the CBP Web
                                                (d) Subject                                             http://www.regulations.gov by searching for           site. The regulatory revisions reflect that
                                                                                                        and locating Docket No. FAA–2015–7530.                official notice of liquidation will no
                                                  Air Transport Association (ATA) of
                                                America Code 57, Wings.                                 (j) Material Incorporated by Reference                longer be posted at the customhouses or
                                                                                                                                                              stations and that official notices of
                                                (e) Reason                                                 (1) The Director of the Federal Register
                                                                                                        approved the incorporation by reference               suspension of liquidation and extension
                                                   This AD was prompted by report of                    (IBR) of the service information listed in this       of liquidation will no longer be mailed.
                                                cracking in the secondary structure of the              paragraph under 5 U.S.C. 552(a) and 1 CFR             Additionally, this rule makes certain
                                                wing at station 8700. We are issuing this AD            part 51.                                              technical corrections to the CBP
                                                to detect and correct cracking that could lead             (2) You must use this service information          regulations to reflect statutory
                                                to failure of the affected rib and consequent           as applicable to do the actions required by           amendments.
                                                reduced control of the airplane.                        this AD, unless this AD specifies otherwise.
                                                                                                           (i) Fokker Service Bulletin SBF100–57–             DATES:  This final rule is effective on
                                                (f) Compliance
                                                                                                        048, dated October 27, 2014.                          January 14, 2017.
                                                   Comply with this AD within the
                                                                                                           (ii) Reserved.                                     FOR FURTHER INFORMATION CONTACT:
                                                compliance times specified, unless already
                                                                                                           (3) For service information identified in          Virginia McPherson, ACE Business
                                                done.
                                                                                                        this AD, contact Fokker Services B.V.,                Office, Office of Trade,
                                                (g) Inspection                                          Technical Services Dept., P.O. Box 1357,              virginia.h.mcpherson@cbp.dhs.gov.
                                                   Within 12 months after the effective date            2130 EL Hoofddorp, the Netherlands;                   Randy Mitchell, Trade Policy and
                                                of this AD: Do a detailed inspection for                telephone +31 (0)88–6280–350; fax +31
                                                                                                        (0)88–6280–111; email technicalservices@
                                                                                                                                                              Programs, Office of Trade,
                                                cracking of the trailing edge rib at wing                                                                     randy.mitchell@cbp.dhs.gov.
                                                station 8700, in accordance with the                    fokker.com; Internet http://
                                                Accomplishment Instructions of Fokker                   www.myfokkerfleet.com.                                SUPPLEMENTARY INFORMATION:
                                                Service Bulletin SBF100–57–048, dated                      (4) You may view this service information
                                                                                                        at the FAA, Transport Airplane Directorate,           Background
                                                October 27, 2014. If any crack is found,
                                                before further flight, repair using a method            1601 Lind Avenue SW., Renton, WA. For                    Section 500 of the Tariff Act of 1930,
                                                approved by the Manager, International                  information on the availability of this               as amended (19 U.S.C. 1500), provides
                                                Branch, ANM–116, Transport Airplane                     material at the FAA, call 425–227–1221.               U.S. Customs and Border Protection
mstockstill on DSK3G9T082PROD with RULES




                                                Directorate, FAA; or the European Aviation                 (5) You may view this service information          (CBP) with the authority, under rules
                                                Safety Agency (EASA); or Fokker Services                that is incorporated by reference at the
                                                                                                        National Archives and Records
                                                                                                                                                              and regulations prescribed by the
                                                B.V.’s EASA Design Organization Approval
                                                                                                        Administration (NARA). For information on             Secretary of the Treasury, to, among
                                                (DOA).
                                                                                                        the availability of this material at NARA, call       other things, give or transmit notice of
                                                (h) Other FAA AD Provisions                             202–741–6030, or go to: http://                       liquidation pursuant to an electronic
                                                  The following provisions also apply to this           www.archives.gov/federal-register/cfr/ibr-            data interchange system. See 19 U.S.C.
                                                AD:                                                     locations.html.                                       1500(e). Similarly, CBP is authorized to


                                           VerDate Sep<11>2014   16:18 Dec 09, 2016   Jkt 241001   PO 00000   Frm 00019   Fmt 4700   Sfmt 4700   E:\FR\FM\12DER1.SGM   12DER1


                                                89376            Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations

                                                give notice of extension of liquidation in              comments were received on the                         Accordingly, CBP believes there is no
                                                such form and manner (which may                         technical corrections to the regulations              need to add reliquidation to 19 CFR
                                                include electronic transmittal) as                      contained in sections 159.11(a),                      159.9(b).
                                                prescribed by regulation and notice of                  159.12(f), and 173.4a of 19 CFR                          Comment: One commenter stated that
                                                suspension of liquidation in such                       reflecting the statutory changes to 19                the regulation should spell out in detail
                                                manner as considered appropriate. See                   U.S.C. 1504 and 1520.                                 how the date of posting will appear.
                                                19 U.S.C. 1504(b) and (c). Additionally,                                                                         CBP Response: CBP disagrees that the
                                                the National Customs Automation                         Discussion of Comments                                regulation needs to spell out in detail
                                                Program (NCAP) was established by                          Four comments were received in                     how the date of posting will appear as
                                                Subtitle B of Title VI—Customs                          response to the notice of proposed                    the posting will be in a format that is
                                                Modernization, in the North American                    rulemaking. CBP has addressed the                     easy to understand. The date of posting
                                                Free Trade Agreement Implementation                     comments below:                                       will appear in standard MM/DD/YYYY
                                                Act (Pub. L. 103–182, 107 Stat. 2057,                      Comment: Three commenters                          format. For example, December 31,
                                                December 8, 1993), to provide for,                      expressed support for the proposed                    2016, will appear as 12/31/2016.
                                                among other things, the electronic status               changes to post liquidation information                  Comment: One commenter asked if
                                                of liquidation. See 19 U.S.C. 1411.                     on CBP’s Web site, www.cbp.gov.                       importers or brokers will be able to print
                                                   Currently, notices of liquidation for                   CBP Response: CBP appreciates the                  the notice and asked if the printed
                                                formal entry, including notices of                      support and the input from the                        notices would include the posting date.
                                                liquidation by operation of law, are                    commenters.                                              CBP Response: A printed copy may be
                                                physically posted in the customhouse or                    Comment: One commenter suggested                   obtained using a web browser’s print
                                                station at the port of entry on CBP Form                that the regulations state that the link              functionality which should include the
                                                4333, and this physical posting is                      will be visible on the CBP home page so               information that is displayed on the
                                                deemed the legal evidence of                            that it remains conspicuous regardless                screen, such as the posting date.
                                                liquidation. When extension or                          of future CBP Web site changes and the                   Comment: One commenter stated that
                                                suspension of liquidation occurs,                       public will not have to search for the                the liquidation information posted on
                                                official notices are mailed on an                       link.                                                 the CBP Web site should be searchable
                                                appropriately modified CBP Form 4333–                      CBP Response: CBP agrees that the                  using data elements.
                                                A.                                                      link needs to be conspicuous although                    CBP Response: CBP agrees and has
                                                   On October 14, 2016, CBP published                   not necessarily on the homepage. The                  designed the liquidation information
                                                a notice in the Federal Register (81 FR                 link will be labelled ‘‘Official Notices of           posted on the CBP Web site to be
                                                71019) proposing to amend title 19 of                   Liquidation’’ and, pursuant to 19 CFR                 searchable using data elements.
                                                the Code of Federal Regulations (‘‘19                   159.9(b), it will be placed in a                         Comment: One commenter stated that
                                                CFR’’) to reflect that official notice of               conspicuous place on CBP’s Web site in                the large majority of liquidations take
                                                liquidation, suspension of liquidation,                 such a manner that it can readily be                  place on a Friday and asked if that
                                                and extension of liquidation would be                   located and consulted by all interested               practice will continue.
                                                posted electronically on the CBP Web                    persons. CBP assures that the link will                  CBP Response: CBP has designed the
                                                site rather than being physically posted                remain conspicuous regardless of any                  functionality so that entries that are set
                                                at the customhouses or stations or                      potential future CBP Web site changes.                for auto-liquidation, that is, liquidations
                                                mailed. CBP also proposed eliminating                      Comment: One commenter stated that                 that occur on the standard 314-day cycle
                                                the mailed paper courtesy notices of                    the regulations should include a                      without CBP intervention will continue
                                                liquidation but stated its intention to                 definition of what constitutes the                    to be made on Fridays. However, for
                                                continue sending electronic courtesy                    posting and its data elements.                        manual liquidations where CBP action
                                                notices of liquidation, extension, and                     CBP Response: CBP disagrees that                   is required, liquidations will generally
                                                suspension via a CBP-authorized                         adding a definition of what constitutes               post to the Web site within 90 minutes
                                                electronic data interchange system to                   the posting and its data elements is                  after CBP processes the liquidation.
                                                the electronic filer when entries                       necessary because CBP believes such a                    Comment: Two commenters suggested
                                                liquidate or are extended or suspended.                 definition would not add value or                     that the 15-month timeline for
                                                The proposed amendments were                            clarity. As proposed, the regulations at              maintaining liquidation information on
                                                intended to modernize, centralize, and                  19 CFR 159.9 provide that the posting                 the CBP Web site should be stated in the
                                                facilitate the method by which                          will occur on CBP’s Web site, address                 regulations.
                                                importers are provided official notice of               the date of posting, state that the                      CBP Response: CBP agrees that adding
                                                liquidation, extension, and suspension.                 electronic posting will be deemed the                 this language to the regulations will be
                                                Additionally, CBP proposed certain                      legal evidence of liquidation, and                    beneficial. Accordingly, CBP has added
                                                technical corrections to sections                       address liquidations by operation of                  language to §§ 159.9(c)(1), 159.12(b),
                                                159.11(a), 159.12(f), and 173.4a of 19                  law.                                                  and 159.12(c) stating that notices of
                                                CFR to update the regulatory language                      Comment: One commenter stated that                 liquidation, extension, and suspension,
                                                to reflect statutory changes to sections                the regulations appear not to deal with               respectively, will be maintained on the
                                                504 and 520 of the Tariff Act of 1930,                  reliquidations and proposed adding                    CBP Web site for a minimum of 15
                                                as amended (19 U.S.C. 1504 and 1520).                   reliquidation to 19 CFR 159.9(b).                     months.
                                                The notice of proposed rulemaking                          CBP Response: CBP disagrees with the                  Comment: One commenter requested
                                                requested public comments. The public                   commenter. CBP intends that the                       that CBP place in the regulations the
                                                comment period closed on November                       posting of reliquidations will also be                process for requesting access to notices
mstockstill on DSK3G9T082PROD with RULES




                                                14, 2016.                                               done electronically. Section 173.3(b)                 that are no longer available on the Web
                                                   CBP received four comments                           regarding reliquidation (which is in the              site beyond the 15-month timeline.
                                                regarding the proposed amendments to                    current regulations and was not                          CBP Response: CBP disagrees that this
                                                part 159 of 19 CFR regarding posting                    proposed to be amended) provides that                 process needs to be included in the
                                                official notice of liquidation, suspension              notice of reliquidation will be given in              regulations. Guidance will be provided
                                                of liquidation, and extension of                        accordance with the requirements for                  in the Automated Commercial
                                                liquidation on the CBP Web site. No                     giving notice of the original liquidation.            Environment (ACE) Business Rules


                                           VerDate Sep<11>2014   16:18 Dec 09, 2016   Jkt 241001   PO 00000   Frm 00020   Fmt 4700   Sfmt 4700   E:\FR\FM\12DER1.SGM   12DER1


                                                                 Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations                                         89377

                                                Process Document, which can be                          country will be available to view and                 —Clarification in § 159.9(c)(2)(i), which
                                                updated in a quicker manner than the                    search regardless of the physical                      pertains to entries liquidated by
                                                regulations should a more efficient                     location of the searcher.                              operation of law, that notice of such
                                                process for obtaining historical                           Comment: One commenter asked that                   will be posted when CBP determines
                                                information be developed. When the                      the liquidation information remain on                  that an entry has liquidated by
                                                information is no longer available on the               the CBP Web site indefinitely until                    operation of law.
                                                CBP Web site, a request may be made                     historical information is available to                —Clarification in § 159.9(c)(2)(ii) by
                                                to CBP for historical information by                    sureties through the ACE portal, so that               making editorial changes for ease of
                                                contacting the filer’s assigned client                  the surety can generate search results                 reading.
                                                representative or by contacting the                     easily for its own list of entries. This              —Clarification in § 159.9(d), which
                                                appropriate port or Center of Excellence                commenter also requested that ‘‘Surety                 pertains to courtesy notice of
                                                and Expertise directly. Additionally,                   Code’’ be added to the list of data                    liquidation, that CBP will endeavor to
                                                ACE account holders may run queries to                  elements.                                              provide courtesy notice to the entry
                                                obtain the historical information                          CBP Response: As stated elsewhere in                filer or its agent and the surety on an
                                                without having to contact CBP.                          the document, the liquidation                          entry.
                                                   Comment: One commenter stated that                   information will be maintained on the                 —Clarification in § 159.12(b), which
                                                CBP has the ability to post notices                     CBP Web site for a minimum of 15                       pertains to notices of extension, that
                                                regarding liquidations by operation of                  months. Regarding sureties, CBP has                    notices of extension will be
                                                law immediately when they occur in the                  provided for surety code to be a                       maintained on www.cbp.gov for a
                                                electronic environment rather than                      searchable data element.                               minimum of 15 months and that
                                                ‘‘within a reasonable period’’ after each                  Comment: One commenter asked that                   courtesy notice will be sent to the
                                                liquidation by operation of law. Another                the surety on an entry be included in 19               entry filer or its agent and the surety
                                                commenter asked that CBP post notice                    CFR 159.9(d) as a party to receive                     on an entry.
                                                of liquidation by operation of law                      courtesy notices of liquidation.                      —Clarification in § 159.12(c), which
                                                within 14 days of the liquidation.                         CBP Response: A surety on an entry                  pertains to notices of suspension, that
                                                   CBP Response: CBP disagrees that it                  is able to receive courtesy notice if it is            notices of suspension will be
                                                has the ability to post this information                                                                       maintained on www.cbp.gov for a
                                                                                                        set up in ACE to receive courtesy
                                                immediately upon occurrence because                                                                            minimum of 15 months and that
                                                                                                        notices of liquidation. However, based
                                                in many situations, CBP is unaware of                                                                          courtesy notice will be sent to the
                                                                                                        on this comment, CBP has amended the
                                                the liquidation by operation of law for                                                                        entry filer or its agent and the surety
                                                                                                        regulation at 19 CFR 159.9(d) to state
                                                some time after it has occurred.                                                                               on an entry.
                                                                                                        that courtesy notices of the extension
                                                However, the commenters validly                                                                               —Clarification in § 159.12(d)(2), which
                                                                                                        will be sent to the entry filer or its agent
                                                pointed out that the electronic                                                                                pertains to additional extensions at
                                                                                                        and the surety on an entry.
                                                environment enables CBP to post notice                                                                         the importer’s request, that courtesy
                                                                                                           Comment: One commenter asked that
                                                without delay. Accordingly, based on                                                                           notice will be sent to the entry filer or
                                                                                                        the filer and the surety be included as
                                                these comments, CBP has amended the                                                                            its agent and the surety on an entry.
                                                                                                        a recipient of courtesy notices of
                                                regulation at 19 CFR 159.9(c)(2)(i) to
                                                                                                        extension of liquidation in 19 CFR                    Executive Orders 13563 and 12866
                                                state that CBP will post this information
                                                                                                        159.12(d)(2) in order to maintain                        Executive Orders 13563 and 12866
                                                when it has determined that an entry
                                                                                                        consistency with 19 CFR 159.12(b) and                 direct agencies to assess the costs and
                                                has liquidated by operation of law, and
                                                                                                        (c) regarding whom the regulations                    benefits of available regulatory
                                                has removed the phrase regarding
                                                                                                        identify as parties receiving courtesy                alternatives and, if regulation is
                                                posting within a reasonable time period.
                                                   Comment: One commenter asked if                      notices.                                              necessary, to select regulatory
                                                the term ‘‘filer’’ was the filer code or the               CBP Response: CBP agrees that the                  approaches that maximize net benefits
                                                name of the importer of record and                      regulations should each be consistent in              (including potential economic,
                                                noted that both the filer code and the                  this regard. Accordingly, based on this               environmental, public health and safety
                                                importer of record should be included                   comment, CBP has amended the                          effects, distributive impacts, and
                                                with the information posted on the CBP                  regulation at 19 CFR 159.12(b), (c), and              equity). Executive Order 13563
                                                Web site.                                               (d)(2), to state that courtesy notices of             emphasizes the importance of
                                                   CBP Response: The term ‘‘filer’’ is not              the extension will be sent to the entry               quantifying both costs and benefits, of
                                                referencing the filer code or importer of               filer or its agent and the surety on an               reducing costs, of harmonizing rules,
                                                record number but is instead referring to               entry through a CBP-authorized                        and of promoting flexibility. This rule is
                                                the party transmitting entry/entry                      electronic data interchange.                          not a ‘‘significant regulatory action’’
                                                summary data to CBP. The filer code is                  Conclusion                                            under section 3(f) of Executive Order
                                                a searchable data element and will be                                                                         12866. Accordingly, the Office of
                                                displayed in the search results.                          Accordingly, after review of the                    Management and Budget has not
                                                However, as stated in the notice of                     comments and further consideration,                   reviewed this regulation.
                                                proposed rulemaking, when the results                   CBP has decided to adopt as final, with
                                                                                                        the changes discussed above, the                      Regulatory Flexibility Act
                                                of a search are viewed, the CBP Web site
                                                will not display the importer of record                 proposed rule published in the Federal                  This section examines the impact of
                                                numbers.                                                Register (81 FR 71019) on October 14,                 this rule on small entities per the
                                                   Comment: One commenter asked if                      2016. Specifically, the final rule                    requirements of the Regulatory
mstockstill on DSK3G9T082PROD with RULES




                                                people in one location may search the                   contains the following changes based on               Flexibility Act (5 U.S.C. 601 et seq.), as
                                                notices for another location and used                   the comments:                                         amended by the Small Business
                                                the example of being in Miami and                       —Clarification in § 159.9(c)(1), which                Regulatory Enforcement Fairness Act of
                                                searching notices from Long Beach.                        pertains to the date of liquidation,                1996. The Regulatory Flexibility Act (5
                                                   CBP Response: Because information                      that notices of liquidation will be                 U.S.C. 601 et seq.), as amended by the
                                                will be posted on the CBP Web site, all                   maintained on www.cbp.gov for a                     Small Business Regulatory Enforcement
                                                notices of liquidation throughout the                     minimum of 15 months.                               Fairness Act of 1996, requires agencies


                                           VerDate Sep<11>2014   16:18 Dec 09, 2016   Jkt 241001   PO 00000   Frm 00021   Fmt 4700   Sfmt 4700   E:\FR\FM\12DER1.SGM   12DER1


                                                89378            Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations

                                                to assess the impact of regulations on                   these filers (and their sureties) courtesy            provides electronic courtesy notices of
                                                small entities. A small entity may be a                  notices of liquidation and reliquidation              liquidation, reliquidation, extension, or
                                                small business (defined as any                           via a CBP-authorized electronic data                  suspension, but it will discontinue the
                                                independently owned and operated                         interchange system before the official                practice of mailing any paper notices.
                                                business not dominant in its field that                  notice (and protest period’s start date).             For other informal, mail, and baggage
                                                qualifies as a small business per the                    For the small portion of importers who                entries, CBP will continue to furnish
                                                Small Business Act); a small not-for-                    file entries by paper, CBP typically                  official notices of liquidation and
                                                profit organization; or a small                          mails paper courtesy notices of                       reliquidation to importers (and their
                                                governmental jurisdiction (locality with                 liquidation and reliquidation using CBP               sureties when required) by a suitable
                                                fewer than 50,000 people).                               Form 4333–A to these filers on or                     printed statement appearing on the
                                                                                                         around the date of the official notice’s              receipt issued for duties collected, by
                                                Background                                               posting. These courtesy notices are not               release of the merchandise under a free
                                                   Most goods imported into the United                   direct, formal, and decisive notices of               entry, or by acceptance of the free entry
                                                States are subject to duty assessments,                  liquidation or reliquidation; however,                after release under a special permit for
                                                which CBP conducts during a process                      based on anecdotal evidence, most                     immediate delivery. As described next,
                                                known as liquidation. During this                        importers rely on these courtesy notices              these regulatory changes will introduce
                                                liquidation process, CBP performs a                      to determine liquidations and                         benefits and costs to importers,
                                                final computation of duties (not                         reliquidations to avoid the time and                  including small entities.
                                                including vessel repair duties) on the                   resource costs incurred to view official                 For most importers (and their
                                                entry covering the imported                              bulletin notices at U.S. customhouses or              sureties), this rule will simply change
                                                merchandise and then closes out the                      stations.                                             the way in which they can access
                                                entry. In accordance with current                           Some liquidations may be extended or               official notices of liquidation,
                                                regulations, CBP officially notifies                     suspended. If liquidation is extended or              reliquidation, extension, and
                                                importers,1 as well as the public, of a                  suspended, CBP officially notifies the                suspension. Instead of posting weekly
                                                formal entry’s liquidation by posting a                  importer and its surety by mail using                 official bulletin notices of liquidation
                                                weekly bulletin notice of liquidation in                 CBP Form 4333–A, as appropriately                     and reliquidation at each U.S.
                                                a readily-located and consulted place in                 modified.6 CBP also provides importers                customhouse and station and mailing
                                                the customhouse or station at each port                  who file entries electronically and their             official notices of extension and
                                                of entry.2 These notices are generally                   sureties with electronic courtesy notices             suspension, CBP will publish these
                                                available for importers and the public to                of extension and suspension, which are                notices on the CBP Web site once this
                                                peruse for a few weeks before they are                   generally sent in advance of mailed                   rule is in effect. CBP will also
                                                placed in CBP storage. CBP provides the                  notifications. Although these courtesy                discontinue mailing all paper courtesy
                                                same official notice of liquidation for                  notices are not direct, formal, and                   notices of liquidation and reliquidation
                                                informal entries where a duty cannot be                  decisive notices of extension or                      with this rule. Because the vast majority
                                                determined at the time of entry and for                  suspension, CBP believes that most                    of importers (and all their sureties)
                                                reliquidated dutiable entries.3 For other                importers (and all sureties) rely on them             already rely on the electronic courtesy
                                                informal, mail, and baggage entries, CBP                 to determine extensions and                           notices of liquidation, reliquidation,
                                                furnishes official notice of liquidation to              suspensions because importers receive                 extension, and suspension that CBP
                                                an importer (and its surety when                         them before the official notice and they              provides, this rule’s transition to
                                                required) by a suitable printed statement                contain the same information. Importers
                                                                                                                                                               electronic official notice publications
                                                appearing on the receipt issued for                      who file entries by paper do not receive
                                                                                                                                                               will presumably only affect a small
                                                duties collected, by release of the                      electronic or paper courtesy notices of
                                                                                                                                                               portion of importers. Specifically, this
                                                merchandise under a free entry, or by                    extension and suspension.
                                                                                                            In an effort to modernize the                      transition to electronic notice
                                                acceptance of the free entry after release                                                                     publications will only affect those
                                                                                                         liquidation, reliquidation, extension,
                                                under a special permit for immediate                                                                           importers who currently rely on official
                                                                                                         and suspension notification processes,
                                                delivery.4 Once CBP provides official                                                                          bulletin notices physically posted at
                                                                                                         CBP, through this rulemaking, will
                                                notice of liquidation or reliquidation,                                                                        U.S. customhouses and stations and
                                                                                                         discontinue physically posting official
                                                importers generally have 180 days to file                                                                      those importers who receive and rely on
                                                                                                         bulletin notices of liquidation and
                                                a protest challenging certain aspects of                                                                       paper courtesy notifications of
                                                                                                         reliquidation at U.S. port of entry
                                                their entry’s liquidation.5 In addition to                                                                     liquidation and reliquidation and paper
                                                                                                         customhouses and stations. Instead,
                                                these official notices, CBP endeavors to                 CBP will post these official notices in a             official notices of extension and
                                                provide importers (and their sureties)                   readily-located, conspicuous place on                 suspension due to their paper entry
                                                informal, courtesy notices of liquidation                the CBP Web site: www.cbp.gov.                        filings.
                                                and reliquidation for entries scheduled                  Additionally through this rule, CBP will
                                                to be liquidated or deemed liquidated                                                                          Number of Small Entities Affected by
                                                                                                         begin posting electronically on                       Rule
                                                by operation of law. For the majority of                 www.cbp.gov official notices of
                                                importers filing entries, who actually                   extension and suspension that are                        Using historical data, CBP estimates
                                                file electronically, CBP generally sends                 currently mailed. CBP will tie all                    that importers took an average of 2,500
                                                                                                         electronic notices directly to an already-            trips to U.S. customhouses or stations
                                                  1 For the purposes of this analysis, ‘‘importers’’
                                                                                                         developed, automated process by which                 each year for the single purpose of
                                                can also refer to agents, such as brokers, who act                                                             viewing official bulletin notices because
                                                on behalf of importers.                                  entries are liquidated, reliquidated,
mstockstill on DSK3G9T082PROD with RULES




                                                  2 See 19 CFR 159.9(b).                                 extended, or suspended, ensuring that                 the official bulletin notice’s posting date
                                                  3 See 19 CFR 159.10.
                                                                                                         these actions and CBP’s official                      was significant to a protest that importer
                                                  4 See 19 CFR 159.10.
                                                                                                         notifications of these actions occur                  planned to file.7 CBP also estimates that
                                                  5 For entries filed before December 18, 2004, the
                                                                                                         almost simultaneously. This rule will
                                                time limit is within 90 days after liquidation, but                                                              7 Based on the 2,500 Applications for Further

                                                for entries filed on or after that date, it is now 180   not change the method in which CBP                    Review (AFRs) filed with protests in 2015.
                                                days (see CFR part 174; see 19 U.S.C. 1514(c)(3) as                                                            Importers or their attorneys who file AFRs depend
                                                amended by section 2103(2)(B), Pub. L. 108–429).           6 See   19 CFR 159.12.                              on the exact dates of liquidation or reliquidation to



                                           VerDate Sep<11>2014    16:18 Dec 09, 2016   Jkt 241001   PO 00000   Frm 00022   Fmt 4700   Sfmt 4700   E:\FR\FM\12DER1.SGM   12DER1


                                                                 Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations                                                     89379

                                                CBP mailed an average of 23,500 paper                     hourly wage rate for importers.11 Most                  However, some affected importers, such
                                                courtesy notices of liquidation and                       affected importers will presumably visit                as those who receive extension and
                                                reliquidation and 3,100 paper notices of                  the CBP Web site once per year to view                  suspension notices that are in effect for
                                                extension and suspension each year to                     an entry’s official notice of liquidation,              an unknown amount of time, could visit
                                                importers who filed paper entries.8                       reliquidation, extension, or suspension,                the CBP Web site more than once per
                                                Considering this historical data, CBP                     for a total cost of $2.01 per year.12                   year for an entry, incurring the access
                                                estimates that this rule could affect up                                                                          cost of $2.01 each time they visit the
                                                to approximately 29,100 importers per                        11 The time cost estimate is equal to the assumed    CBP Web site. Even if an importer
                                                                                                          hourly wage for importers ($30.09) multiplied by        accesses the CBP Web site twice a
                                                year. To the extent that the same                         the hourly time burden for a trade member to
                                                importer took more than one trip to the                   navigate the CBP Web site to find a liquidation,
                                                                                                                                                                  month for an entry, or 24 times per year,
                                                U.S. customhouse or station to view an                    reliquidation, extension, or suspension notice          it will incur only a $48.24 cost to do so.
                                                official bulletin notice or received and                  (0.0667 hours), and then rounded. CBP bases the         The average value per entry was $69,300
                                                                                                          $30.09 hourly wage rate for importers on the Bureau     in FY 2015.13 The range of annual
                                                relied on more than one paper notice,                     of Labor Statistics’ (BLS) 2015 median hourly wage
                                                the number of importers affected by this                  rate for Cargo and Freight Agents ($20.13), which
                                                                                                                                                                  importer costs for this rule ($2.01 to
                                                rule will be lower. Nonetheless, because                  CBP assumes best represents the wage for                $48.24) amounts to between 0.003
                                                the majority of importers are small                       importers, by the ratio of BLS’ average 2015 total      percent and 0.07 percent of this average
                                                                                                          compensation to wages and salaries for Office and       entry value. Likewise, if an importer
                                                businesses, CBP believes this rule will                   Administrative Support occupations (1.4799), the        processes multiple entries per year, its
                                                affect a substantial number of small                      assumed occupational group for importers, to
                                                                                                          account for non-salary employee benefits. CBP then      total costs from this rule will be higher
                                                entities.
                                                                                                          adjusted this figure, which was in 2015 U.S. dollars,   but the value of its entries will also be
                                                Impacts of Rule on Small Entities                         to 2016 U.S. dollars by applying a 1.0 percent          higher, meaning that the average cost to
                                                                                                          annual growth rate to the figure, as recommended        the importer will be between 0.003
                                                                                                          by the U.S. Department of Transportation’s value of
                                                   This rule’s transition to fully                        travel time guidance. Source of median wage rate:       percent and 0.07 percent of the entry
                                                electronic notices will require the                       U.S. Bureau of Labor Statistics. Occupational           value regardless of the number of entries
                                                estimated 29,100 importers who                            Employment Statistics, ‘‘May 2015 National              the importer files per year. CBP does not
                                                currently rely on official bulletin notices               Occupational Employment and Wage Estimates,             consider this to be a significant
                                                                                                          United States—Median Hourly Wage by Occupation
                                                physically posted at U.S. customhouses                    Code: 43–5011.’’ Updated March 30, 2016.
                                                                                                                                                                  economic impact.
                                                and stations and those who rely on                        Available at http://www.bls.gov/oes/2015/may/              Along with the minor Web site access
                                                paper notices of liquidation,                             oes435011.htm. Accessed June 1, 2016.                   cost imposed by this rule, this rule will
                                                reliquidation, extension, and                                The total compensation to wages and salaries         provide benefits to importers who
                                                                                                          ratio is equal to the calculated average of the 2015    currently rely on official bulletin notices
                                                suspension to visit the CBP Web site to                   quarterly estimates (shown under Mar., June, Sep.,
                                                determine entry liquidations,                             Dec.) of the total compensation cost per hour
                                                                                                                                                                  physically posted at U.S. customhouses
                                                reliquidations, extensions, and                           worked for Office and Administrative Support            and stations. This rule’s electronic
                                                suspensions.9 To view this rule’s official                occupations ($24.9475) divided by the calculated        publication of official bulletin notices of
                                                                                                          average of the 2015 quarterly estimates (shown          liquidation and reliquidation will allow
                                                bulletin notices on the CBP Web site,                     under Mar., June, Sep., Dec.) of wages and salaries
                                                CBP assumes that these importers will                     cost per hour worked for the same occupation
                                                                                                                                                                  these importers to avoid visiting U.S.
                                                spend an added 4 minutes (0.0667                          category ($16.8575). Source of total compensation       customhouses and stations for formal
                                                hours) 10 navigating the CBP Web site to                  to wages and salaries ratio data: U.S. Bureau of        entry liquidation and reliquidation
                                                                                                          Labor Statistics. Employer Costs for Employee           information, which typically occur
                                                find a liquidation, reliquidation,                        Compensation. Employer Costs for Employee
                                                extension, or suspension notice, at a                                                                             2,500 times a year. For each trip to a
                                                                                                          Compensation Historical Listing March 2004–March
                                                                                                          2016, ‘‘Table 3. Civilian workers, by occupational      U.S. customhouse or station avoided,
                                                time cost of $2.01 based on the assumed
                                                                                                          group: employer costs per hours worked for              importers will save an estimated 45
                                                                                                          employee compensation and costs as a percentage         minutes (0.75 hours), which will result
                                                file a timely protest, and thus likely travel to a U.S.   of total compensation, 2004–2016 by Respondent
                                                customhouse or station to physically view official        Type: Office and administrative support
                                                bulletin notices with the official dates of liquidation   occupations.’’ June 9, 2016. Available at http://       than one year to determine its entry’s reliquidation
                                                and reliquidation. Using the 2015 AFR filings as a                                                                status. If CBP extends or suspends an entry, which
                                                                                                          www.bls.gov/ncs/ect/sp/ececqrtn.pdf. Accessed
                                                proxy for trips taken to view official bulletin                                                                   will be the case for the importers who receive 3,100
                                                                                                          June 14, 2016.
                                                notices, CBP estimates that importers or their                                                                    paper notices of extension and suspension
                                                                                                             Source of suggested growth rate: U.S. Department     annually, the importer may have to access the CBP
                                                attorneys took 2,500 trips to U.S. customhouses or        of Transportation, Office of Transportation Policy.
                                                stations each year for the single purpose of viewing                                                              Web site more than once per year, over the course
                                                                                                          The Value of Travel Time Savings: Departmental          of more than one year to determine the status of its
                                                official bulletin notices. Sources: 19 CFR 174.12(e)      Guidance for Conducting Economic Evaluations            entry’s extension or suspension. However,
                                                and email correspondence with CBP’s Office of             Revision 2 (2015 Update), ‘‘Table 4 (Revision 2—        considering the typical timeframes of extensions
                                                Trade on July 15, 2016.                                   corrected): Recommended Hourly Values of Travel
                                                   8 Based on data received through email
                                                                                                                                                                  and suspensions, importers are most likely to access
                                                                                                          Time Savings.’’ April 29, 2015. http://                 the CBP Web site only once per year for information
                                                correspondence with CBP’s Office of Trade on May          www.transportation.gov/sites/dot.gov/files/docs/        on their entry’s extension or suspension. Moreover,
                                                26, 2016; June 22–24, 2016; August 29, 2016; and          Revised%20Departmental%20                               importers will likely receive information from CBP
                                                September 21, 2016.                                       Guidance%20on%20Valuation                               indicating whether CBP has reliquidated their entry
                                                   9 Importers could set up an Automated                  %20of%20Travel%20Time%20in                              or their extension or suspension has ended.
                                                Commercial Environment (ACE) account to receive           %20Economic%20Analysis.pdf. Accessed June 1,              13 Based on fiscal year 2015 U.S. entry and import
                                                electronic courtesy notices of liquidation,               2016.                                                   value data. Source of entry data: U.S. Customs and
                                                reliquidation, extension, and suspension, but the            12 Importers will likely access the CBP Web site
                                                                                                                                                                  Border Protection. Summary of Performance and
                                                time cost to do so is likely longer than the time it      once a year to determine whether CBP has officially     Financial Information Fiscal Year 2015. May 2016.
                                                takes to view official notices on the CBP Web site.       liquidated, reliquidated, extended, or suspended        Available at https://www.cbp.gov/sites/default/files/
                                                As such, CBP assumes that importers who receive           their entry. If CBP liquidates or reliquidates an       assets/documents/2016-May/summary-
                                                and rely on paper notices of liquidation,                 entry, which will be the case for the importers who     performance-financial-info-2015.pdf. Accessed
mstockstill on DSK3G9T082PROD with RULES




                                                reliquidation, extension, and suspension now will         currently take 2,500 trips to U.S. customhouses or      September 22, 2016. Source of import value data:
                                                visit the CBP Web site for official notice rather than    stations to view official bulletin notices and who      U.S. Census Bureau. FT920: U.S. Merchandise
                                                set up an ACE account to receive electronic               receive 23,500 paper courtesy notices of liquidation    Trade Selected Highlights—October 2014 through
                                                courtesy notices once this rule is effective.             and reliquidation annually, the importer will likely    September 2015 Releases, ‘‘Exhibit 3: U.S.
                                                   10 The 4-minute added time burden represents the       not have to access the CBP Web site again after the     Imports—U.S. Customs District of Entry—Total
                                                incremental change in the time burden over the            initial Web site visit to determine the entry’s         General Customs Value by Month.’’ December 5,
                                                current paper notification process. Source: Email         liquidation status. However, in a small number of       2014–November 4, 2015. Available at https://
                                                correspondence with CBP’s Office of Trade on April        cases, an importer may have to access the Web site      www.census.gov/foreign-trade/Press-Release/ft920_
                                                26, 2016.                                                 more than once per year, over the course of more        index.html. Accessed September 22, 2016.



                                           VerDate Sep<11>2014    16:18 Dec 09, 2016   Jkt 241001   PO 00000   Frm 00023   Fmt 4700   Sfmt 4700   E:\FR\FM\12DER1.SGM     12DER1


                                                89380            Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations

                                                in a time cost saving of $22.57 using the               impact of this rule on small entities will            with the date it is posted electronically
                                                average hourly wage for importers of                    not be significant. Accordingly, CBP                  on www.cbp.gov for the information of
                                                $30.09.14 Importers will also save                      certifies that this regulation will not               importers. This electronic posting will
                                                $16.20 in travel costs per trip based on                have a significant economic impact on                 be deemed the legal evidence of
                                                the estimated distance they sustain from                a substantial number of small entities.               liquidation. The notice of liquidation
                                                traveling to and from a U.S.                            CBP received no public comments on                    will be maintained on www.cbp.gov for
                                                customhouse or station—30 miles—and                     the Electronic Notice of Liquidation                  a minimum of 15 months from the date
                                                the IRS’s $0.54 standard mileage rate for               Notice of Proposed Rulemaking                         of posting.
                                                business purposes.15 To the extent that                 challenging this certification.                          (2) Exception: Entries liquidated by
                                                some trips are taken for multiple                                                                             operation of law. (i) Entries liquidated
                                                                                                        Paperwork Reduction Act                               by operation of law at the expiration of
                                                purposes, not just for viewing an official
                                                bulletin notice of liquidation or                         As there is no collection of                        the time limitations prescribed in
                                                reliquidation, fewer costs will be                      information proposed in this document,                section 504, Tariff Act of 1930, as
                                                avoided and the benefits of this rule per               the provisions of the Paperwork                       amended (19 U.S.C. 1504), and set out
                                                trip will be lower.                                     Reduction Act of 1995 (44 U.S.C. 3507)                in §§ 159.11 and 159.12, will be deemed
                                                   The electronic bulletin notices                      are inapplicable.                                     liquidated as of the date of expiration of
                                                introduced with this rule will also                                                                           the appropriate statutory period and
                                                                                                        Signing Authority                                     will be posted on www.cbp.gov when
                                                provide benefits of eased access,
                                                relatively quicker notification, and                      This document is being issued in                    CBP determines that each entry has
                                                extended viewing to importers. In                       accordance with § 0.1(a)(1) of the CBP                liquidated by operation of law and will
                                                particular, this electronic transition will             Regulations (19 CFR 0.1(a)(1))                        be dated with the date of liquidation by
                                                allow importers to easily view and                      pertaining to the authority of the                    operation of law.
                                                query a complete, consolidated list of                  Secretary of the Treasury (or his/her                    (ii) For liquidation notices that were
                                                U.S. entry liquidations, reliquidations,                delegate) to approve regulations related              posted or lodged in the customhouse,
                                                extensions, and suspensions, thus                       to certain customs revenue functions.                 pursuant to section 514, Tariff Act of
                                                facilitating the process by which these                                                                       1930, as amended (19 U.S.C. 1514) and
                                                                                                        List of Subjects                                      part 174 of this chapter, a protest of a
                                                individuals obtain such entry
                                                information. For importers who                          19 CFR Part 159                                       decision relating to an entry made
                                                typically rely on paper courtesy notices                                                                      before December 18, 2004, must be filed
                                                                                                          Antidumping, Countervailing duties,                 within 90 days from the date of
                                                for liquidation and reliquidation                       Customs duties and inspection, Foreign
                                                information, which they receive by mail                                                                       liquidation of an entry by operation of
                                                                                                        currencies.                                           law or within 90 days from the date the
                                                after the official notice’s posting, this
                                                electronic posting will provide the                     19 CFR Part 173                                       bulletin notice thereof was posted or
                                                added benefit of more timely notice and                                                                       lodged in the customhouse, or, in the
                                                                                                          Administrative practice and                         case of a protest of a decision relating
                                                additional protest time. Importers who                  procedure, Customs duties and
                                                receive and rely on paper courtesy                                                                            to an entry made on or after December
                                                                                                        inspection.                                           18, 2004, within 180 days from the date
                                                notices will also benefit from this rule’s
                                                consolidated electronic notice posting.                 Amendments to the CBP Regulations                     of liquidation of an entry by operation
                                                This change will allow importers and                                                                          of law.
                                                                                                          For the reasons given above, parts 159                 (iii) For liquidation notices posted on
                                                their agents to view liquidation,                       and 173 of title 19 of the Code of                    www.cbp.gov, pursuant to section 514,
                                                reliquidation, extension, and                           Federal Regulations (19 CFR parts 159                 Tariff Act of 1930, as amended (19
                                                suspension notices simultaneously                       and 173) are amended as set forth                     U.S.C. 1514) and part 174 of this
                                                instead of individually as they currently               below:                                                chapter, a protest of a decision relating
                                                do through paper notices. Furthermore,                                                                        to an entry made before December 18,
                                                importers will have at least 14 more                    PART 159—LIQUIDATION OF DUTIES
                                                                                                                                                              2004, must be filed within 90 days from
                                                months to view official liquidation,                                                                          the date of liquidation of an entry by
                                                reliquidation, extension, and                           ■ 1. The general authority citation for
                                                                                                        part 159 continues to read as follows:                operation of law or within 90 days from
                                                suspension notices before having to                                                                           the date notice thereof is posted on
                                                request access to the notices through                       Authority: 19 U.S.C. 66, 1500, 1504, 1624.        www.cbp.gov, or, in the case of a protest
                                                CBP.                                                    *     *    *     *      *                             of a decision relating to an entry made
                                                Conclusion                                              ■ 2. Section 159.9 is revised to read as              on or after December 18, 2004, within
                                                                                                        follows:                                              180 days from the date of liquidation of
                                                  Although CBP believes that this rule
                                                                                                                                                              an entry by operation of law.
                                                will affect a substantial number of small               § 159.9 Notice of liquidation and date of                (d) Courtesy notice of liquidation.
                                                entities, specifically importers, CBP                   liquidation for formal entries.                       CBP will endeavor to provide the entry
                                                believes that the (negative) economic
                                                                                                           (a) Notice of liquidation. Notice of               filer or its agent and the surety on an
                                                   14 The time cost estimate is equal to the assumed
                                                                                                        liquidation of formal entries will be                 entry with a courtesy notice of
                                                hourly wage for importers ($30.09) multiplied by        provided on CBP’s public Web site,                    liquidation for all electronically filed
                                                the estimated hourly time burden for a trade            www.cbp.gov.                                          entries liquidated by CBP or deemed
                                                member to travel to and from a U.S. customhouse            (b) Posting of notice. The notice of               liquidated by operation of law. The
                                                or station (0.75 hours), and then rounded.              liquidation will be posted for the                    courtesy notice of liquidation that CBP
mstockstill on DSK3G9T082PROD with RULES




                                                   15 Source of miles traveled: Based on estimates

                                                from CBP’s Office of Trade on May 2, 2016. Source
                                                                                                        information of importers in a                         will endeavor to provide will be
                                                of mileage rate: Internal Revenue Service. 2016         conspicuous place on www.cbp.gov in                   electronically transmitted pursuant to a
                                                Standard Mileage Rates for Business, Medical and        such a manner that it can readily be                  CBP authorized electronic data
                                                Moving Announced. IR–2015–137, December 17,             located and consulted by all interested               interchange system if the entry was filed
                                                2015. Available at https://www.irs.gov/uac/
                                                Newsroom/2016-Standard-Mileage-Rates-for-
                                                                                                        persons.                                              electronically in accordance with part
                                                Business-Medical-and-Moving-Announced.                     (c) Date of liquidation—(1) Generally.             143 of this chapter. This notice will
                                                Accessed April 19, 2016.                                The notice of liquidation will be dated               serve as an informal, courtesy notice


                                           VerDate Sep<11>2014   16:18 Dec 09, 2016   Jkt 241001   PO 00000   Frm 00024   Fmt 4700   Sfmt 4700   E:\FR\FM\12DER1.SGM   12DER1


                                                                 Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations                                              89381

                                                and not as a direct, formal, and decisive               transmit a courtesy notice of suspension              of excess duties, fees, charges, or
                                                notice of liquidation.                                  to the entry filer or its agent and the               exactions.
                                                                                                        surety on an entry through a CBP-                     R. Gil Kerlikowske,
                                                § 159.10   [Amended]
                                                                                                        authorized electronic data interchange
                                                ■ 3. Section 159.10 is amended as                                                                             Commissioner, U.S. Customs and Border
                                                                                                        system.                                               Protection.
                                                follows:
                                                ■ a. By removing the words ‘‘posting or                    (d) * * *                                            Approved: December 6, 2016.
                                                lodging of’’ from the last sentence in                     (2) At importer’s request. If the                  Timothy E. Skud,
                                                paragraph (b);                                          statutory period has been extended for                Deputy Assistant Secretary of the Treasury.
                                                ■ b. By removing the words ‘‘on CBP                     one year at the importer’s request, and               [FR Doc. 2016–29656 Filed 12–9–16; 8:45 am]
                                                Form 4333 posted or lodged’’ from the                   the importer thereafter determines that               BILLING CODE 9111–14–P
                                                last sentence of paragraph (c)(1); and                  additional time is necessary, it may
                                                ■ c. By removing the words ‘‘on a                       request another extension in writing
                                                bulletin notice of liquidation, CBP Form                before the original extension expires,
                                                4333,’’ from the last sentence of                                                                             DEPARTMENT OF HOUSING AND
                                                                                                        giving reasons for its request. If the port           URBAN DEVELOPMENT
                                                paragraph (c)(3).
                                                                                                        director finds that good cause (as
                                                ■ 4. In § 159.11, paragraph (a) is revised
                                                                                                        defined in paragraph (a)(1)(ii) of this               24 CFR Parts 91 and 92
                                                to read as follows:                                     section) exists, the official notice of
                                                § 159.11   Entries liquidated by operation of           extension extending the time for                      [Docket No. FR–5792–C–02]
                                                law.                                                    liquidation for an additional period not
                                                   (a) Time limit generally. Except as                  to exceed one year will be posted on                  RIN 2501–AD69
                                                provided in § 159.12, an entry not                      www.cbp.gov, and CBP will provide
                                                                                                                                                              Changes to HOME Investment
                                                liquidated within one year from the date                courtesy notice of the extension to the
                                                                                                                                                              Partnerships (HOME) Program
                                                of entry of the merchandise, or the date                entry filer or its agent and the surety on            Commitment Requirement; Correction
                                                of final withdrawal of all merchandise                  an entry through a CBP-authorized
                                                covered by a warehouse entry, will be                   electronic data interchange system.                   AGENCY:    Office of General Counsel,
                                                deemed liquidated by operation of law                   *      *    *      *     *                            HUD.
                                                at the rate of duty, value, quantity, and                                                                     ACTION:   Interim final rule; correction.
                                                amount of duties asserted by the                           (f) Time limitation. An entry not
                                                importer of record. Notice of liquidation               liquidated within four years from either              SUMMARY:   On December 2, 2016, HUD
                                                will be given electronically as provided                the date of entry, or the date of final               published an interim final rule that
                                                in §§ 159.9 and 159.10(c)(3) of this part.              withdrawal of all the merchandise                     changes the commitment requirement of
                                                CBP will endeavor to provide a courtesy                 covered by a warehouse entry, will be                 the HOME Investment Partnerships
                                                notice of liquidation in accordance with                deemed liquidated by operation of law                 (HOME) Program. After publication,
                                                § 159.9(d).                                             at the rate of duty, value, quantity, and             HUD discovered that the effective dates
                                                *      *      *     *    *                              amount of duty asserted by the importer               and comment due dates were
                                                ■ 5. In § 159.12, revise paragraphs (b),                of record, unless liquidation continues               inadvertently reversed. This document
                                                (c), (d)(2), and (f) and remove paragraph               to be suspended by statute or court                   corrects the preamble to reflect a 30-day
                                                (g).                                                    order. CBP will endeavor to provide a                 effective date and a 60-day comment
                                                   The revisions read as follows:                       courtesy notice of liquidation, in                    period.
                                                                                                        accordance with § 159.9(d), in addition               DATES:   Effective Date: The corrected
                                                § 159.12   Extension of time for liquidation.
                                                                                                        to the notice specified in § 159.9(c)(2)(i).          effective date for HUD’s interim rule
                                                *      *     *     *     *                                                                                    published on December 2, 2016 (81 FR
                                                   (b) Notice of extension. If the port                 PART 173—ADMINISTRATIVE REVIEW                        86947), is January 3, 2017.
                                                director extends the time for                           IN GENERAL
                                                liquidation, as provided in paragraph                                                                         FOR FURTHER INFORMATION CONTACT:
                                                (a)(1) of this section, the official notice                                                                   With respect to this supplementary
                                                                                                        ■ 6. The general authority citation for               document, contact Ariel Pereira,
                                                of extension and reasons therefor will be               part 173 continues to read as follows:
                                                posted on www.cbp.gov. The notice of                                                                          Associate General Counsel for
                                                extension will be maintained on                             Authority: 19 U.S.C. 66, 1501, 1520, 1624.        Legislation and Regulations, Department
                                                www.cbp.gov for a minimum of 15                                                                               of Housing and Urban Development,
                                                                                                        ■   7. Revise § 173.4a to read as follows:            451 7th Street SW., Room 10238,
                                                months from the date of posting. The
                                                port director will also endeavor to                                                                           Washington, DC 20410; telephone
                                                                                                        § 173.4a Refund of excess duties, fees,
                                                transmit a courtesy notice of extension                 charges, or exaction paid prior to
                                                                                                                                                              number 202–708–1793 (this is not a toll-
                                                to the entry filer or its agent and the                 liquidation.                                          free number). Individuals with speech
                                                surety on an entry through a CBP-                                                                             or hearing impairments may access this
                                                authorized electronic data interchange                    Pursuant to section 520(a)(4), Tariff               number via TTY by calling the Federal
                                                system.                                                 Act of 1930, as amended (19 U.S.C.                    Relay Service at 800–877–8339 (this is
                                                   (c) Notice of suspension. If the                     1520(a)(4)), whenever an importer of                  a toll-free number).
                                                liquidation of an entry is suspended as                 record declares or it is ascertained that             SUPPLEMENTARY INFORMATION: In the
                                                required by statute or court order, as                  excess duties, fees, charges, or exactions            interim final rule FR Doc. 2016–28591,
mstockstill on DSK3G9T082PROD with RULES




                                                provided in paragraph (a)(2) of this                    have been deposited or paid, the port                 published on December 2, 2016, the
                                                section, the official notice of suspension              director may, prior to liquidation of an              following correction is made:
                                                will be posted on www.cbp.gov. The                      entry or reconciliation, take appropriate                On page 86947, in the first column,
                                                notice of suspension will be maintained                 action to refund the deposit or payment               correct the DATES section to read as
                                                on www.cbp.gov for a minimum of 15                                                                            follows:
                                                months from the date of posting. The                                                                             Dates: Effective Date: January 3, 2017.
                                                port director will also endeavor to                                                                              Comment Due Date: January 31, 2017.


                                           VerDate Sep<11>2014   16:18 Dec 09, 2016   Jkt 241001   PO 00000   Frm 00025   Fmt 4700   Sfmt 4700   E:\FR\FM\12DER1.SGM   12DER1



Document Created: 2018-02-14 09:05:25
Document Modified: 2018-02-14 09:05:25
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective on January 14, 2017.
ContactVirginia McPherson, ACE Business Office, Office of Trade, [email protected] Randy Mitchell, Trade Policy and Programs, Office of Trade, [email protected]
FR Citation81 FR 89375 
RIN Number1515-AE16
CFR Citation19 CFR 159
19 CFR 173
CFR AssociatedAntidumping; Countervailing Duties; Customs Duties and Inspection; Foreign Currencies and Administrative Practice and Procedure

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR