[Federal Register: January 14, 2004 (Volume 69, Number 9)]
[Proposed Rules]
[Page 2093-2094]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14ja04-21]
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DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
19 CFR Part 162
RIN 1651-AA48
Publication of Administrative Forfeiture Notices
AGENCY: Bureau of Customs and Border Protection, Homeland Security.
ACTION: Proposed rule.
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SUMMARY: The Customs Regulations set forth the procedure that the
Bureau of Customs and Border Protection (CBP) must follow in
administrative forfeiture proceedings, as required by section 607 of
the Tariff Act of 1930, as amended. The statutory language allows for
administrative forfeiture when CBP seizes: A prohibited importation; a
transporting conveyance if used to import, export, transport or store a
controlled substance or listed chemical; any monetary instrument within
the meaning of 31 U.S.C. 5312(a)(3); or any conveyance, merchandise or
baggage for which its value does not exceed $500,000.
If the value of the seized property exceeds $2,500, the current
regulations require CBP to publish notice of seizure and intent to
forfeit in a newspaper circulated at the Customs port and in the
judicial district where the seizure occurred. When the value of the
seized property does not exceed $2,500, CBP may publish the notice by
posting it in a conspicuous place accessible to the public at the
customhouse nearest the place of seizure.
This document proposes to amend the Customs Regulations by raising
the threshold value of seized property for which CBP must publish a
notice in a newspaper from $2,500 to $5,000. By changing the
requirements for publication of administrative forfeiture notices, the
proposed amendment would significantly reduce the publication costs
incurred by CBP, which have often exceeded the value of seized
property.
[[Page 2094]]
DATES: Comments must be received by March 15, 2004.
ADDRESSES: Written comments (preferably in triplicate) may be addressed
to the Regulations Branch, Office of Regulations and Rulings, Bureau of
Customs and Border Protection, 1300 Pennsylvania Avenue, NW.,
Washington, DC 20229. Comments submitted may be inspected at the
Regulations Branch, Office of Regulations and Rulings, Bureau of
Customs and Border Protection, 799 9th Street, NW., 5th Floor,
Washington, DC. Arrangements to inspect submitted comments should be
made in advance by calling Mr. Joseph Clark at (202) 572-8768.
FOR FURTHER INFORMATION CONTACT: Greg Olsavsky, Chief, Fines Penalties
& Forfeitures Branch, (202) 927-3119.
SUPPLEMENTARY INFORMATION:
Background
Section 162.45 of the Customs Regulations (19 CFR 162.45) sets
forth the procedure that the Bureau of Customs and Border Protection
(CBP) must follow when it seizes and gives notice of intent to forfeit
property under administrative forfeiture proceedings, as required by
section 607 of the Tariff Act of 1930, as amended (19 U.S.C. 1607). The
statutory language allows for administrative forfeiture when CBP seizes
(1) a prohibited importation; (2) a transporting conveyance if used to
import, export, transport or store a controlled substance or listed
chemical; (3) any monetary instrument within the meaning of 31 U.S.C.
5312(a)(3); or (4) any conveyance, merchandise or baggage for which its
value does not exceed $500,000.
Specifically, current Sec. 162.45(b), Customs Regulations,
addresses publication of notices under administrative forfeiture
proceedings. If the value of the seized property exceeds $2,500,
paragraph (b)(1) requires publication of administrative forfeiture
notices in a newspaper circulated at the Customs port and in the
judicial district where the seizure occurred. All known parties-in-
interest are notified of the newspaper and expected dates of
publication of the notice.
It is proposed to amend Sec. 162.45(b)(1) to raise the value
threshold of property for which CBP must publish an administrative
forfeiture notice in a newspaper from $2,500 to $5,000.
When the value of the seized property does not exceed $2,500,
current paragraph (b)(2) of Sec. 162.45 allows CBP to publish a notice
of seizure and intent to forfeit by posting it in a conspicuous place
accessible to the public at the customhouse nearest the place of
seizure. If the proposed amendment to paragraph (b)(1) is adopted, the
applicability of paragraph (b)(2) would be automatically expanded to
seizures of property valued under $5,000.
CBP last changed the regulation in 1985, when it increased the
dollar threshold from $250 to $2,500. Since then, inflation has often
caused the costs of publication in large metropolitan areas to exceed
$2,500. Thus, in many cases the publication costs can be prohibitive
when compared to the value of the property advertised.
If implemented, the proposed change to the regulations would result
in estimated yearly savings of at least $147,000, based on FY 2002
expenditure levels.
Comments
Before adopting this proposed regulation as a final rule,
consideration will be given to any written comments timely submitted to
CBP, including comments on the clarity of this proposed rule and how it
may be made easier to understand. Comments submitted will be available
for public inspection in accordance with the Freedom of Information Act
(5 U.S.C. 552) and Sec. 103.11(b), Customs Regulations (19 CFR
103.11(b)), on normal business days between the hours of 9 a.m. and
4:30 p.m. at the Regulations Branch, Office of Regulations and Rulings,
Bureau of Customs and Border Protection, 799 9th Street, NW., 5th
Floor, Washington, DC. Arrangements to inspect submitted comments
should be made in advance by calling Mr. Joseph Clark at (202) 572-
8768.
Regulatory Flexibility Act and Executive Order 12866
CBP does not anticipate that the proposed amendment will have an
impact on private parties, as it pertains to the agency's internal
operating procedures. For that reason, it is certified that the
proposed amendment, if adopted, will not have a significant economic
impact on a substantial number of small entities, pursuant to the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
Accordingly, it is not subject to the regulatory analysis or other
requirements of 5 U.S.C. 603 and 604.
For the same reasons, this document does not meet the criteria for
a ``significant regulatory action'' as specified in E.O. 12866.
Drafting Information
The principal author of this document was Mr. Fernando Pena, Office
of Regulations and Rulings, Customs and Border Protection. However,
personnel from other Bureau offices participated in its development.
Signing Authority
This regulation is being issued in accordance with 19 CFR 0.1
(b)(1).
List of Subjects in 19 CFR Part 162
Administrative practice and procedure, Customs duties and
inspection, Drug traffic control, Exports, Imports, Inspection, Law
enforcement, Penalties, Prohibited merchandise, Restricted merchandise,
Reporting and recordkeeping requirements, Search warrants, Seizures and
forfeitures.
Proposed Amendment to the Regulations
For the reasons stated above, it is proposed to amend part 162 of
the Customs Regulations (19 CFR part 162) as set forth below.
PART 162--INSPECTION, SEARCH, AND SEIZURE
1. The general authority citation for part 162 and the specific
authority citation for Sec. 162.45 continue to read as follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1592, 1593a, 1624.
* * * * *
Section Sec. 162.45 also issued under 19 U.S.C. 1607, 1608.
* * * * *
Sec. 162.45 [Amended]
2. It is proposed to amend the first sentence of paragraph (b)(1)
of Sec. 162.45 by removing the monetary amount ``$2,500'' and adding
in its place ``$5,000''.
Dated: January 8, 2004.
Robert C. Bonner,
Commissioner, Customs and Border Protection.
[FR Doc. 04-724 Filed 1-13-04; 8:45 am]
BILLING CODE 4820-02-P