Customs financial and accounting procedure: Endorsement of checks deposited,

[Federal Register: November 17, 1999 (Volume 64, Number 221)]

[Proposed Rules]

[Page 62619-62620]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr17no99-22]

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 24

RIN 1515-AC48

Endorsement of Checks Deposited by the U.S. Customs Service

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document proposes to amend the Customs Regulations to reflect that Customs employees authorized to accept certain monetary instruments (such as checks) in payment of Customs duties, taxes, and other charges are no longer required to place their names and badge numbers on the instrument and that certain other information must be placed on the face (front) side of the instrument, rather than the reverse side of the instrument. The proposed changes are designed to avoid a conflict with Federal Reserve System regulations that govern the endorsement of checks by banks.

DATES: Comments must be received on or before January 18, 2000.

ADDRESSES: Written comments (preferably in triplicate), regarding both the substantive aspects of the proposed rule and how it may be made easier to understand, may be submitted to and inspected at the Regulations Branch, Office of Regulations and Rulings, U.S. Customs Service, 1300 Pennsylvania Avenue, NW, 3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: Ms. Jo Cohen, Acting Director, Financial Management Division, Office of Finance (202-927-6140).

SUPPLEMENTARY INFORMATION:

Background

Under Sec. 24.1 of the Customs Regulations (19 CFR 24.1), procedures for the collection of Customs duties, taxes, and other charges and fees are set forth. Currently, under Sec. 24.1(b), applicable to noncommercial importations at piers, terminals, bridges, airports, and other similar places, Customs employees authorized to collect payments may accept a personal check and shall ensure that certain information is recorded on the check. Under Sec. 24.1(b)(1), with respect to personal checks received under Sec. 24.1(b) and certain other checks and money orders received under Sec. 24.1(a), Customs employees shall show their name, badge number, and the serial or other identification number from the collection voucher on the reverse side of the check.

Requirements applicable to banks endorsing checks are set forth under regulations of the Federal Reserve System (12 CFR 229.35) . Appendix D to Part 229 of the Federal Reserve System regulations (Title 12, Chapter II)(entitled ``Indorsement Standards'') pertains to the endorsements of depositary, collecting, and returning banks. It sets forth the specific information that shall or may be provided and requires that such information shall be recorded on the reverse side of checks. The Appendix also provides that the readability, identifiability, and legibility of the depositary bank's endorsement must be

[[Page 62620]]

protected. It cautions the depositary bank not to interfere with the readability of the endorsement, and it carefully sets forth specific requirements for collecting and returning banks to follow for the purpose of protecting that endorsement.

The requirement under the Customs Regulations that Customs employees must place information on the reverse side of monetary instruments conflicts with the requirements of 12 CFR 229.35 and App. D of Part 229 of Title 12 CFR regarding the protection of bank endorsements. In order to ensure that the practice of Customs employees in accepting checks and other monetary instruments does not interfere with the readability, identifiability, and legibility of endorsements of depositary and other banks, Customs proposes to amend Sec. 24.1(b) and Sec. 24.1(b)(1).

Section 24.1(b)(1) is proposed to be amended to reflect that authorized Customs employees are no longer required to place their name and badge number on the instrument and that the collection voucher number (or other identifier) should now be placed on the face (front) side of the instrument, rather than the reverse side of the instrument. Section 24.1(b) is proposed to be amended to reflect that certain other information that is required on the instrument also should be placed on the face of the check. This information includes the payor's home and business phone numbers and either a social security number, current passport number, or current driver's license number (showing the issuing state).

Comments

Before adopting this proposal as a final rule, consideration will be given to any written comments timely submitted to Customs. Comments submitted will be available for public inspection in accordance with the Freedom of Information Act (5 U.S.C. 552), Sec. 1.4 of the Treasury Department Regulations (31 CFR 1.4), and Sec. 103.11(b) of the Customs Regulations (19 CFR 103.11(b)), on regular business days between the hours of 9 a.m. and 4:30 p.m. at the Regulations Branch, Office of Regulations and Rulings, U.S. Customs Service, 1300 Pennsylvania Avenue, NW, 3rd Floor, Washington, DC

Executive Order 12866

This document does not meet the criteria for a ``significant regulatory action'' as specified in E.O. 12866.

Regulatory Flexibility Act

Pursuant to the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), it is certified that the proposed amendments to the Customs Regulations, if adopted, will not have a significant economic impact on a substantial number of small entities. Adoption of the proposed amendments regarding the endorsement of checks and other instruments will improve the process for accepting and depositing these instruments, without any additional burden on businesses or individuals. Accordingly, the proposed amendments are not subject to the regulatory analysis or other requirements of 5 U.S.C. 603 and 604.

Drafting Information

The principal author of this document was Bill Conrad, Office of Regulations and Rulings, U.S. Customs Service. However, personnel from other offices contributed in its development.

List of Subjects in 19 CFR Part 24

Accounting, Claims, Customs duties and inspection, Fees, Financial and accounting procedures, Imports, Taxes.

Proposed Amendments to the Regulations

For the reasons stated in the preamble, part 24 of the Customs Regulations (19 CFR part 24) is proposed to be amended as follows:

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

  1. The general authority citation for part 24 and the relevant specific authority citation continue to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General Note 20, Harmonized Tariff Schedule of the United States), 1450, 1624; 31 U.S.C. 9701.

    Section 24.1 also issued under 19 U.S.C. 197, 198, 1648; * * * * *

  2. In Sec. 24.1, the second and third sentences of introductory paragraph (b) and all of paragraph (b)(1) are revised to read as follows:

    Sec. 24.1 Collection of Customs duties, taxes, and other charges.

    * * * * *

    (b) * * * Where the amount of the check is over $25, the Customs cashier or other employee authorized to receive Customs collections will ensure that the payor's name, home and business telephone number (including area code), and date of birth are recorded on the face (front) side of the monetary instrument. In addition, one of the following will be recorded on the face side of the instrument: preferably, the payor's social security number or, alternatively, a current passport number or current driver's license number (including issuing state). * * *

    (1) Where the amount is less than $100 and the identification requirements of paragraph (a)(4) of this section have been met, the Customs employee accepting the check or money order will place his name and badge number on the collection voucher and place the serial number or other form of voucher identification on the face side of the check or money order so that the check or money order can be easily associated with the voucher. * * * * *

    Approved: September 15, 1999. Raymond W. Kelly, Commissioner of Customs. John P. Simpson, Deputy Assistant Secretary of the Treasury.

    [FR Doc. 99-29929Filed11-16-99; 8:45 am]

    BILLING CODE 4820-02-P

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT