Civil Monetary Penalty Adjustments for Inflation
| Published date | 28 December 2018 |
| Citation | 83 FR 67069 |
| Record Number | 2018-28141 |
| Section | Rules and Regulations |
| Court | U.s. Customs And Border Protection |
Federal Register, Volume 83 Issue 248 (Friday, December 28, 2018)
[Federal Register Volume 83, Number 248 (Friday, December 28, 2018)]
[Rules and Regulations]
[Pages 67069-67073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28141]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
19 CFR Part 4
[CBP Dec. 18-16]
RIN 1651-AB32
Civil Monetary Penalty Adjustments for Inflation
AGENCY: U.S. Customs and Border Protection, DHS.
ACTION: Final rule.
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SUMMARY: This rule adjusts for inflation the amounts that U.S. Customs
and Border Protection (CBP) can assess as civil monetary penalties for
the following two violations--transporting passengers coastwise for
hire by certain vessels (known as Bowaters vessels) that do not meet
specified conditions; and employing a vessel in a trade without a
required Certificate of Documentation. These adjustments are being made
in accordance with the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (2015 Act) which was enacted on November 2,
2015. Other CBP civil penalty amounts were adjusted pursuant to this
2015 Act in rule documents published in the Federal Register on July 1,
2016; January 27, 2017; December 8, 2017; and April 2, 2018, but the
adjustments for these two civil penalties were inadvertently left out
of those documents.
DATES: This rule is effective on December 28, 2018. The adjusted
penalty amounts will be applicable for penalties assessed after
December 28, 2018 if the associated violations occurred after November
2, 2015.
FOR FURTHER INFORMATION CONTACT: Millie Gleason, Office of Field
Operations, U.S. Customs and Border Protection. Phone: (202) 325-4291.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
On November 2, 2015, the President signed into law the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub.
L. 114-74 section 701 (Nov. 2, 2015)) (2015 Act).\1\ The 2015 Act
amended the Federal Civil Penalties Inflation Adjustment Act of 1990
(28 U.S.C. 2461 note) (1990 Inflation Adjustment Act) to improve the
effectiveness of civil monetary penalties and to maintain their
deterrent effect. The 2015 Act required agencies to: (1) Adjust the
level of civil monetary penalties with an initial ``catch-up''
adjustment through issuance of an interim final rule (IFR) and (2) make
subsequent annual adjustments for inflation. Through the ``catch-up''
adjustment, agencies were required to adjust the maximum amounts of
civil monetary penalties to more accurately reflect inflation rates.
The 2015 Act directed the Office of Management and Budget (OMB) to
issue guidance to agencies on implementing the initial ``catch-up''
adjustment. The 2015 Act required that agencies publish their IFRs in
the Federal Register no later than July 1, 2016 and that the adjusted
amounts were to take effect no later than August 1, 2016.
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\1\ The 2015 Act was enacted as part of the Bipartisan Budget
Act of 2015, Public Law 114-74 (Nov. 2, 2015).
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For the subsequent annual adjustments, the 2015 Act requires
agencies to increase the penalty amounts by a cost-of-living
adjustment. The 2015 Act directs OMB to provide guidance to agencies
each year to assist agencies in making the annual adjustments. The 2015
Act requires agencies to make the annual adjustments no later than
January 15 of each year and to publish the adjustments in the Federal
Register.
The Department of Homeland Security (DHS) undertook a review of the
civil penalties that DHS and its components administer to determine
which penalties would need adjustments. On July 1, 2016, DHS published
an IFR adjusting the civil monetary penalties with an initial ``catch-
up'' adjustment, as required by the 2015 Act. See 81 FR 42987. DHS
calculated the adjusted penalties based upon nondiscretionary
provisions in the 2015 Act and upon guidance issued by OMB on February
24, 2016.\2\ The adjusted penalties were effective for civil penalties
assessed after August 1, 2016 (the effective date of the IFR) where the
associated violations occurred after November 2, 2015 (the date of
enactment of the 2015 Act).\3\ On January 27, 2017, DHS published a
final rule adopting as final the civil monetary penalty adjustment
methodology from the IFR and making the 2017 annual inflation
adjustment pursuant to the 2015 Act and upon guidance OMB issued to
agencies on December 16, 2016.\4\ See 82 FR 8571. On April 2, 2018, DHS
published a final rule making the 2018 annual inflation adjustment
pursuant to the 2015 Act and the guidance OMB issued to agencies on
December 15, 2017.\5\ See 83 FR 13826.
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\2\ OMB, Implementation of the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015, February 24, 2016. https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
\3\ DHS published a correction to the IFR on August 23, 2016 to
correct one amendatory instruction. See 81 FR 57442.
\4\ OMB, Implementation of the 2017 annual adjustment pursuant
to the Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015, December 16, 2016. https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
\5\ OMB, Implementation of Penalty Inflation Adjustments for
2018, Pursuant to the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015, December 15, 2017. https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
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As discussed in Section II below, several civil monetary penalties
assessed by CBP and subject to the 2015 Act were inadvertently omitted
from these DHS rulemakings.
II. CBP Penalties
CBP assesses or enforces penalties under various titles of the
United States Code (U.S.C.) and the Code of Federal Regulations (CFR).
These penalties include civil monetary penalties for certain violations
of title 8 of the CFR pursuant to the Immigration and Nationality Act
of 1952,\6\ as well as certain civil monetary penalties for customs
violations for laws codified in title 19 of the U.S.C. and the CFR. CBP
assesses many of the title 19 penalties under the Tariff Act of 1930,
as amended, and as discussed in the IFR preamble at 81 FR 42987, the
2015 Act specifically exempts Tariff Act penalties from the inflation
adjustment requirements in the 2015 Act. For that reason, DHS did not
list those penalties in the tables of CBP penalty adjustments in the
DHS rulemakings. There are also various other monetary penalties found
throughout the U.S.C. and CFR which CBP may seek to issue or enforce
but which were not included in the tables because they fall within the
purview of
[[Page 67070]]
another Department or Agency for purposes of the 2015 Act.\7\
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\6\ Public Law 82-414, as amended (INA). The INA contains
provisions that impose penalties on persons, including carriers and
aliens, who violate specified provisions of the INA. While CBP is
responsible for enforcing various provisions of the INA and
assessing penalties for violations of those provisions, all the
penalty amounts CBP can assess for violations of the INA are set
forth in one section of title 8 of the CFR--8 CFR 280.53. For a
complete list of the INA sections for which penalties are assessed,
in addition to a brief description of each violation, see the IFR
preamble at 81 FR 42989-42990.
\7\ For example, CBP may enforce the Clean Diamond Trade Act
penalty set forth in 19 U.S.C. 3907, which falls within the purview
of the Department of the Treasury. See 31 CFR part 501, app. A.
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Several non-Tariff Act penalties that are assessed by CBP were
inadvertently omitted from the DHS rulemakings. On December 8, 2017,
CBP published a rule, correcting for three penalties that had been
omitted from the DHS rulemakings for the following three violations--
transporting passengers between coastwise points in the United States
by a non-coastwise qualified vessel; towing a vessel between coastwise
points in the United States by a non-coastwise qualified vessel; and
dealing in or using an empty stamped imported liquor container after it
has already been used once. See 82 FR 57821.
However, two additional non-Tariff Act penalties that are assessed
by CBP were inadvertently omitted from the DHS rulemakings and the CBP
correction rulemaking. The first is a penalty set forth at 46 U.S.C.
12118(f)(3) for transporting passengers coastwise for hire by certain
vessels (known as Bowaters vessels) that do not meet specified
conditions. This penalty is incurred if a vessel that is used primarily
in manufacturing or mineral industries and owned by a Bowaters
corporation transports passengers for hire except as a service for a
parent or subsidiary of the corporation owning the vessel or under a
bareboat charter to a corporation otherwise qualifying as a citizen of
the United States.\8\ The conditions under which a vessel identified as
a Bowaters vessel under the authority of 46 U.S.C. 12118 may transport
passengers coastwise for hire are detailed in 46 U.S.C. 12118(d)(2) and
19 CFR 4.80(d). The penalty amount is only set forth in the statute and
is not reflected in the CBP regulations. The second is a penalty for
employing a vessel in a trade without a required Certificate of
Documentation pursuant to 19 U.S.C. 1706a and 19 CFR 4.80(i). A
Certificate of Documentation is form CG-1270 issued by the U.S. Coast
Guard. This form is required for the operation of a vessel in certain
trades. See 19 CFR 4.0(c) and 46 CFR part 67.
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\8\ The term ``Bowaters corporation'' is defined in 46 U.S.C.
12118(a)(1). It means a corporation that has filed a certificate
under oath with the Secretary of Homeland Security stating that the
corporation meets the conditions set forth in 46 U.S.C.
12118(a)(1)(A)-(F). Among other things, the corporation must be
incorporated under the laws of the United States or a State, the
majority of the officers and directors must be citizens of the
United States, and it must buy or produce in the United States at
least 75 percent of the raw materials used or sold in its
operations.
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This final rule adjusts these penalty amounts using the same civil
monetary penalty adjustment methodology that DHS announced in the IFR
(81 FR 42987) and finalized in the DHS final rule (82 FR 8571), and
detailed below.
III. Inflation Adjustment Methodology Required by 2015 Act
A. Overview
The 2015 Act provides a new method for calculating inflation
adjustments. The new method differs substantially from the methods that
agencies used in the past when conducting inflation adjustments
pursuant to the 1990 Inflation Adjustment Act. The new method is
intended to more accurately reflect inflation. Previously, when
agencies conducted adjustments to civil penalties, they did so under
rules that required significant rounding of figures. For example, an
agency would round a penalty increase that was greater than $1,000, but
less than or equal to $10,000, to the nearest multiple of $1,000. While
this allowed penalties to be kept at round numbers, it meant that
agencies would often not increase penalties at all if the inflation
factor was not large enough. Furthermore, increases to penalties were
capped at 10 percent, which meant that longer periods without an
inflation adjustment could cause a penalty to rapidly lose value in
real terms. Over time, the formula used in the 1990 Inflation
Adjustment Act calculations frequently caused penalties to lose value
relative to actual inflation. The 2015 Act removed these rounding
rules, and instead instructs agencies to round penalties to the nearest
$1. While this creates penalty values that are no longer round numbers,
it does ensure that agencies will increase penalties each year to a
figure commensurate with the actual calculated inflation.
To better reflect the original impact of civil penalties, the 2015
Act ``resets'' the inflation calculations by excluding prior
inflationary adjustments under the Inflation Adjustment Act. To do
this, the 2015 Act requires agencies to identify, for each penalty, the
year that Congress originally enacted the maximum penalty level/range
of minimum and maximum penalty levels or the year that the agency last
adjusted the penalty amount other than pursuant to the Inflation
Adjustment Act, and the corresponding penalty amount(s). The 2015 Act
then requires agencies to perform an initial ``catch-up'' adjustment,
using the original amounts of civil penalties as a baseline, so that
the 2016 penalty levels are equal, in real terms, to the penalty
amounts as they were originally established. The 2015 Act also requires
agencies to make subsequent annual adjustments to increase the penalty
amounts by a cost-of-living adjustment.
B. Catch-Up Adjustment
This section sets forth the initial ``catch-up'' adjustment for the
two civil monetary penalties assessed by CBP that were inadvertently
omitted from the DHS rulemakings and CBP correction rulemaking. The
catch-up adjustments for these two penalties are listed in Table 1
below. This table shows how DHS would have initially increased the
penalties pursuant to the 2015 Act. The table contains the following
information:
In the first column (penalty name), we provide a
description of the penalty.
In the second column (citation), we provide the statutory
cite from the United States Code (U.S.C.) and the regulatory cite from
the Code of Federal Regulations (CFR).
In the third column (current penalty), we list the
existing penalty in effect on November 2, 2015.
In the fourth column (baseline penalty (year)), we provide
the amount and year of the penalty as enacted by Congress or as last
changed through a mechanism other than pursuant to the Inflation
Adjustment Act, whichever is later.
In the fifth column (2016 multiplier), we list the
multiplier used to adjust the penalty pursuant to the initial OMB
catch-up guidance. The multiplier is determined by the year of
enactment or last adjustment of the penalty. The multiplier is based
upon the Consumer Price Index (CPI-U) for the month of October 2015,
not seasonally adjusted.
In the sixth column (preliminary new penalty), we list the
amount obtained by multiplying the Baseline Penalty from column 4 with
the Multiplier from column 5. This amount will be the catch-up
adjustment amount, if, in accordance with the 2015 Act, this level does
not increase penalty levels by more than 150 percent of the
corresponding levels in effect on November 2, 2015.
In the seventh column (adjusted 2016 penalty), we provide
the number for the penalty as it would have been adjusted for 2016. To
derive this number, we compare the preliminary new penalty with the
current penalty from column 3. The adjusted new penalty is the lesser
of either the preliminary new penalty or an amount
[[Page 67071]]
equal to 150 percent more than the current penalty.
Table 1--U.S. Customs and Border Protection Civil Penalties Initial Catch-Up Adjustments
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Adjusted 2016
Preliminary new penalty
Current Baseline penalty * 2016 penalty [2016 [increase
Penalty name Citation penalty (year) Multiplier multiplier x capped at 150%
** baseline more than
penalty] current penalty]
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Penalty for transporting passengers 46 U.S.C. 12118(f)(3)... $200 $200 (1958)............. 8.22969 $1,646 $500
coastwise for hire by certain vessels
(known as Bowaters vessels) that do
not meet specified conditions.
Penalty for employing a vessel in a 19 U.S.C. 1706a, 19 CFR 500 $500 (1980)............. 2.80469 1,402 1,250
trade without a required Certificate 4.80(i).
of Documentation.
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* The amount of the penalty and the year when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation
Adjustment Act of 1990.
** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up
Adjustment Multiplier by Calendar Year, February 24, 2016. https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
C. 2017 Adjustments
This table shows how DHS would have made the 2017 annual inflation
adjustment for the two civil monetary penalties assessed by CBP that
were inadvertently omitted from the DHS rulemakings and CBP correction
rulemaking, pursuant to the 2015 Act and the guidance OMB issued to
agencies on December 16, 2016.\9\ In Table 2 below, we show: (1) The
civil penalty (or penalties) name, (2) the penalty statutory and/or
regulatory citation, (3) the penalty amount as it would have been
adjusted in 2016 (See Table 1), (4) the cost-of-living adjustment
multiplier for 2017 that OMB provided in its December 16, 2016
guidance, and (5) the 2017 adjusted penalty.
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\9\ See footnote 4.
Table 2-- U.S. Customs and Border Protection Civil Penalties 2017 Adjustments
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Adjusted 2016
Penalty name Citation penalty (see 2017 Adjusted 2017
Table 1) Multiplier * penalty
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Penalty for transporting passengers 46 U.S.C. 12118(f)(3)... $500 1.01636 $508
coastwise for hire by certain vessels
(known as Bowaters vessels) that do
not meet specified conditions.
Penalty for employing a vessel in a 19 U.S.C. 1706a, 19 CFR 1,250 1.01636 1,270
trade without a required Certificate 4.80(i).
of Documentation.
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* OMB, Implementation of the 2017 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015, December 16, 2016. https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
D. 2018 Adjustments
This final rule also makes the 2018 annual inflation adjustment
pursuant to the 2015 Act and the guidance OMB issued to agencies on
December 15, 2017.\10\ Pursuant to 28 U.S.C. 2461 note sec. 6, as
amended by the 2015 Act, the penalty amounts adjusted by this final
rule will be applicable for penalties assessed after December 28, 2018
where the associated violation occurred after November 2, 2015 (i.e.,
the date the 2015 Act was signed into law). Consistent with OMB
guidance, the 2015 Act does not change previously assessed penalties
that the agency is actively collecting or has collected.
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\10\ See footnote 5.
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In Table 3 below, we show: (1) The civil penalty (or penalties)
name, (2) the penalty statutory and/or regulatory citation, (3) the
penalty amount as it would have been adjusted in 2017 (See Table 2),
(4) the cost-of-living adjustment multiplier for 2018 that OMB provided
in its December 15, 2017 guidance, and (5) the new 2018 adjusted
penalty.
Additionally, we have made conforming edits to the regulatory text
for the new adjusted penalty amounts in 19 CFR 4.80(i). Because the 46
U.S.C. 12118 penalty is not included in 19 CFR 4.80(d), there are no
conforming edits to be made to the regulatory text. However, this
penalty is listed in Table 3 for informational purposes.
[[Page 67072]]
Table 3--U.S. Customs and Border Protection Civil Penalties 2018 Adjustments
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New penalty as
Adjusted 2017 2018 adjusted by
Penalty name Citation penalty (see Multiplier * this final
Table 2) rule
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Penalty for transporting passengers 46 U.S.C................ $508 1.02041 ** $518
coastwise for hire by certain vessels 12118(f)(3).............
(known as Bowaters vessels) that do
not meet specified conditions.
Penalty for employing a vessel in a 19 U.S.C. 1706a, 19 CFR 1,270 1.02041 1,296
trade without a required Certificate 4.80(i).
of Documentation.
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* OMB, Implementation of Penalty Inflation Adjustments for 2018, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015, December 15, 2017. https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf.
** No applicable conforming edit to regulatory text.
IV. Administrative Procedure Act
The Administrative Procedure Act (APA) generally requires agencies
to publish a notice of proposed rulemaking in the Federal Register (5
U.S.C. 553(b)) and to provide interested persons with the opportunity
to submit comments (5 U.S.C. 553(c)). The APA also requires agencies to
provide a delayed effective date (of not less than 30 days) for
substantive rules. 5 U.S.C. 553(d). The 2015 Act, however, specifically
instructed that agencies are to make the required annual adjustments
notwithstanding section 553 of title 5 of the U.S.C.
DHS is promulgating this final rule to ensure that the amounts for
civil penalties that CBP assesses or enforces that were inadvertently
omitted from the DHS rulemakings reflect the statutorily mandated
ranges as adjusted for inflation. The 2015 Act provides a clear
nondiscretionary formula for adjustment of the civil penalties; DHS and
CBP have been charged only with performing ministerial computations to
determine the amounts of adjustments for inflation to civil monetary
penalties. Additionally, although the 2015 Act requires publication of
an IFR to take effect not later than August 1, 2016, that date has
passed and publishing a separate IFR to account for these inadvertently
omitted penalty adjustments would cause unnecessary delay. Further,
this final rule merely applies the adjustment methodology that DHS
provided for public comment in the 2016 IFR and finalized in the 2017
final rule. DHS finds that it is unnecessary to seek further public
comment regarding the application of the finalized methodology to these
two penalties. For these reasons, and as specified in the 2015 Act, DHS
finds good cause to promulgate these CBP civil monetary penalty
adjustments as a final rule and finds that the prior public notice-and-
comment procedures and delayed effective date requirements of the APA
are unnecessary and do not apply to this rule.
As described in Section I above, the 2015 Act requires agencies to
make annual adjustments to civil monetary penalties no later than
January 15 of each year and to publish the adjustments in the Federal
Register. DHS will make future annual inflation adjustments required
pursuant to the 2015 Act by final rule notwithstanding the notice-and-
comment and delayed effective date requirements of the APA, as required
by the 2015 Act. For future annual adjustments, DHS will update the
penalty amounts by applying a cost-of-living adjustment multiplier
pursuant to OMB guidance. DHS will publish a final rule that provides a
table with the adjusted penalty amounts and that updates the numbers in
the regulatory text accordingly. DHS will incorporate the two CBP
penalties adjusted in this final rule into such future annual
adjustment final rules.
V. Regulatory Analyses
A. Executive Orders 12866, 13563, and 13771
Executive Orders 12866 (``Regulatory Planning and Review'') and
13563 (``Improving Regulation and Regulatory Review'') 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. Executive Order 13771 (``Reducing Regulation and
Controlling Regulatory Costs'') directs agencies to reduce regulation
and control regulatory costs and provides that ``for every one new
regulation issued, at least two prior regulations be identified for
elimination, and that the cost of planned regulations be prudently
managed and controlled through a budgeting process.''
OMB has not designated this rule a significant regulatory action
under section 3(f) of Executive Order 12866. Accordingly, OMB has not
reviewed it. As this rule is not a significant regulatory action it is
not subject to the requirements of Executive Order 13771. See OMB's
Memorandum, ``Guidance Implementing Executive Order 13771, Titled
`Reducing Regulation and Controlling Regulatory Costs' '' (April 5,
2017) at Q2.
This final rule makes nondiscretionary adjustments to existing
civil monetary penalties in accordance with the 2015 Act and OMB
guidance.\11\ DHS therefore did not consider alternatives and does not
have the flexibility to alter the adjustments of the civil monetary
penalty amounts as provided in this rule. To the extent this final rule
increases civil monetary penalties, it would result in an increase in
transfers from persons or entities assessed a civil monetary penalty to
the government.
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\11\ See footnotes 2 and 4.
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act applies only to rules for which an
agency publishes a notice of proposed rulemaking pursuant to 5 U.S.C.
553(b). See 5 U.S.C. 601-612. The Regulatory Flexibility Act does not
apply to this final rule because a notice of proposed rulemaking was
not required for the reasons stated above.
C. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538,
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or Tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. This final rule will not result in
such an expenditure.
[[Page 67073]]
D. Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C.
chapter 35, and its implementing regulations, 5 CFR part 1320, do not
apply to this final rule, because this final rule does not trigger any
new or revised recordkeeping or reporting.
VI. Signing Authority
The signing authority for this document falls under 19 CFR 0.2(a).
Accordingly, this document is signed by the Secretary of Homeland
Security.
List of Subjects in 19 CFR Part 4
Exports, Freight, Harbors, Maritime carriers, Oil pollution,
Reporting and recordkeeping requirements, Vessels.
Amendments to the Regulations
For the reasons stated in the preamble, CBP amends 19 CFR part 4 as
follows:
PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES
0
1. The authority citation for part 4 continues to read in part as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624,
2071 note; 46 U.S.C. 501, 60105.
* * * * *
Sections 4.80, 4.80a, and 4.80b also issued under 19 U.S.C.
1706a; 28 U.S.C. 2461 note; 46 U.S.C. 12112, 12117, 12118, 50501-
55106, 55107, 55108, 55110, 55114, 55115, 55116, 55117, 55119,
56101, 55121, 56101, 57109; Pub. L. 108-7, Division B, Title II,
Sec. 211;
* * * * *
0
2. Revise Sec. 4.80(i) to read as follows:
Sec. 4.80 Vessels entitled to engage in coastwise trade.
* * * * *
(i) Any vessel, entitled to be documented and not so documented,
employed in a trade for which a Certificate of Documentation is issued
under the vessel documentation laws (see Sec. 4.0(c)), other than a
trade covered by a registry, is liable to a civil penalty of $500 for
each port at which it arrives without the proper Certificate of
Documentation on or before November 2, 2015, and $1296 for each port at
which it arrives without the proper Certificate of Documentation after
November 2, 2015 (19 U.S.C. 1706a, as adjusted by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015). If such a
vessel has on board any foreign merchandise (sea stores excepted), or
any domestic taxable alcoholic beverages, on which the duty and taxes
have not been paid or secured to be paid, the vessel and its cargo are
subject to seizure and forfeiture.
Claire M. Grady,
Under Secretary for Management and Senior Official Performing the
Duties of the Deputy Secretary.
[FR Doc. 2018-28141 Filed 12-27-18; 8:45 am]
BILLING CODE 9111-14-P
