[Federal Register: February 22, 2005 (Volume 70, Number 34)]
[Rules and Regulations]               
[Page 8509-8510]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22fe05-5]                         

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DEPARTMENT OF HOMELAND SECURITY

Customs and Border Protection

19 CFR Part 162

[CBP Dec. 05-02]
RIN 1651-AA48

 
Publication of Administrative Forfeiture Notices

AGENCY: Bureau of Customs and Border Protection, Homeland Security.

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule, a proposed amendment to 
the Bureau of Customs and Border Protection (CBP) Regulations published 
in the Federal Register on January 14, 2004, to raise the threshold 
value of seized property for which CBP must publish a forfeiture notice 
in a newspaper from $2,500 to $5,000. By changing the requirements for 
publication of administrative forfeiture notices, the amendment 
significantly reduces the publication costs incurred by CBP, which have 
often exceeded the value of seized property.

EFFECTIVE DATE: March 24, 2005.

FOR FURTHER INFORMATION CONTACT: Ricardo Scheller, Seizures & Penalties 
Branch, (202) 344-1095.

SUPPLEMENTARY INFORMATION:

Background

    Section 162.45 of the Customs and Border Protection (CBP) 
Regulations (19 CFR 162.45) sets forth the procedure that 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

[[Page 8510]]

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, Sec.  162.45(b), CBP Regulations, addresses 
publication of notices under administrative forfeiture proceedings. If 
the value of seized property exceeds $2,500, current 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.
    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.

Proposal

    On January 14, 2004, CBP published a document in the Federal 
Register (69 FR 2093) proposing to amend the CBP Regulations by 
changing the requirements for publication of administrative forfeiture 
notices in Sec.  162.45(b)(1) by raising the value threshold of 
property for which CBP must publish an administrative forfeiture notice 
in a newspaper from $2,500 to $5,000.
    Consequently, the applicability of paragraph (b)(2) would be 
automatically expanded to seizures of property valued at $5,000 or 
under, allowing CBP to publish the notice by posting it in a 
conspicuous place accessible to the public at the customhouse nearest 
the place of seizure.
    CBP had 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.

Adoption of Proposal as Final Rule

    Comments on the proposed amendment to the CBP Regulations were 
solicited. No comments were received during the public comment period, 
which closed on March 15, 2004. Upon further consideration of the 
matter, CBP has determined to adopt the proposal as published on 
January 14, 2004.

Regulatory Flexibility Act and Executive Order 12866

    The amendment is changing the dollar value threshold governing only 
the form of public notice, not its substance. Accordingly, CBP 
certifies that the amendment 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 is 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 by CBP 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.

Amendment to the Regulations

0
For the reasons stated above, part 162 of the CBP Regulations (19 CFR 
part 162) is amended as follows.

PART 162--INSPECTION, SEARCH, AND SEIZURE

0
1. The general authority citation for part 162 and the specific 
authority citation for Sec.  162.45 continues 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;
* * * * *

0
2. The first sentence of paragraph (b)(1) of Sec.  162.45 is amended by 
removing the monetary amount ``$2,500'' and adding ``$5,000'' in its 
place.

    Approved: February 16, 2005.
Robert C. Bonner,
Commissioner, Customs and Border Protection.
[FR Doc. 05-3327 Filed 2-18-05; 8:45 am]

BILLING CODE 4820-02-P