Td 9145

Federal Register / Vol. 69, No. 146 / Friday, July 30, 2004 / Rules and Regulations
organizations. The final rule also
establishes a funding distribution
methodology called the Tribal
Transportation Allocation Methodology
(TTAM).
FOR FURTHER INFORMATION CONTACT:
LeRoy Gisha, Chief, Division of
Transportation, Bureau of Indian
Affairs, 1951 Constitution, NW., MS–
320–SIB, Washington, DC 20240,
telephone (202) 513–7711 or fax (202)
208–4696.
SUPPLEMENTARY INFORMATION: The
public information and education
meetings are not public hearings and are
not public comment meetings. The
meetings will consist of presentations
on each part of the final rule with time
for clarification questions at the end of
the meeting. We will provide
information packets on the final rule at
the meeting. For more information on
the location of the meetings visit the
Federal Highway Administration,
Federal Lands Highway Web site at:
http://www.fhwa.dot.gov/flh. The
meetings will begin at 8 a.m. and end at
4:30 p.m. local time and will be held on
the dates and at the locations listed
below:
Meeting date
August 10, 2004 ........
August 12, 2004 ........
August 24, 2004 ........
August 26, 2004 ........
September 8, 2004 ...
September 10, 2004
September 21, 2004
September 23, 2004

Location
Oklahoma City, OK
Albuquerque, NM
Las Vegas, NV
Seattle, WA
Anchorage, AK
Fairbanks, AK
Minneapolis, MN
Nashville, TN

Meeting Agenda (all times local)
8 a.m.–8:15 a.m. Welcome,
Introductions, Ground Rules.
8:15 a.m.–8:30 a.m. Opening and
Overview.
8:30 a.m.–11:45 a.m. Preamble.
Subpart A—Policies, Applicability,
and Definitions.
Subpart B—IRR Program Policy and
Eligibility.
Subpart D—Planning, Design, and
Construction of IRR Program
Facilities.
11:45 a.m.–12:45 p.m. Lunch.
12:45 p.m.–4 p.m.
Subpart E—Service Delivery For IRR.
Subpart F—Program Oversight and
Accountability.
Subpart G—BIA Road Maintenance.
Subpart H—Miscellaneous Provisions.
Subpart C—IRR Program Funding.
4 p.m.–4:30 p.m. Clarification
Questions.
4:30 p.m. Adjourn.

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Jkt 203001

Dated: July 27, 2004.
David W. Anderson,
Assistant Secretary—Indian Affairs.
[FR Doc. 04–17418 Filed 7–29–04; 8:45 am]
BILLING CODE 4310–LH–M

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 48 and 602
[TD 9145]
RIN 1545–BD29

Entry of Taxable Fuel

SUMMARY: This document contains final
and temporary regulations relating to
the tax on the entry of taxable fuel into
the United States. These regulations
affect enterers of taxable fuel, other
importers of record, and certain sureties.
The text of the temporary regulations
also serves as the text of the proposed
regulations (REG–120616–03) set forth
in the notice of proposed rulemaking on
this subject in the Proposed Rules
section in this issue of the Federal
Register.

Effective Date: These regulations
are effective September 28, 2004.
Applicability Dates: For dates of
applicability, see §§ 48.4081–1T(b) and
48.4081–3T(c)(ii) and (iv).
FOR FURTHER INFORMATION CONTACT:
Celia Gabrysh (202) 622–3130 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
DATES:

Paperwork Reduction Act
These temporary regulations are being
issued without prior notice and public
procedure pursuant to the
Administrative Procedure Act (5 U.S.C.
553). For this reason, the collection of
information contained in these
regulations has been reviewed and,
pending receipt and evaluation of
public comments, approved by the
Office of Management and Budget under
control number 1545–1897. Responses
to this collection of information are
required to obtain a tax benefit.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
For further information concerning
this collection of information, and
where to submit comments on the

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collection of information and the
accuracy of the estimated burden, and
suggestions for reducing this burden,
please refer to the preamble to the crossreferencing notice of proposed
rulemaking published in the Proposed
Rules section of this issue of the Federal
Register.
Books or records relating to a
collection of information must be
retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
tax returns and tax return information
are confidential, as required by 26
U.S.C. 6103.
Background

Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
AGENCY:

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45587

Present Law
Section 4081(a)(1)(A)(iii) of the
Internal Revenue Code (Code) imposes a
tax on the entry into the United States
of taxable fuel. Taxable fuel means
gasoline, diesel fuel, and kerosene.
Existing regulations provide that the
enterer is liable for the tax imposed on
the entry of taxable fuel.
The regulations currently define the
term enterer as generally meaning the
importer of record (under customs law)
with respect to the taxable fuel.
However, if the importer of record is
acting as an agent (for example, the
importer of record is a customs broker
engaged by the owner of the taxable
fuel), the person for whom the agent is
acting is the enterer.
The regulations require an enterer to
be registered by the IRS. The IRS will
register an applicant only if the IRS
determines that the applicant meets
several tests, including the adequate
security test. An applicant meets the
adequate security test only if the IRS
determines that the applicant has both
adequate financial resources and a
satisfactory tax history, or the applicant
gives the IRS a bond.
Section 142.4 of the Customs
regulations (19 CFR) provides that
merchandise shall not be released from
Customs custody unless a bond on
Customs Form 301, Customs Bond, has
been filed. This bond, which is filed by
the importer of record, secures the
payment of any duty, tax, or charge, and
compliance with Customs laws and
regulations. Section 141.3 of the
Customs regulations provides that the
importer’s liability for duties includes
liability for any internal revenue taxes
which attach upon the importation of
merchandise, unless otherwise provided
by law or regulation. Also,
§ 113.62(a)(1)(ii) of the Customs
regulations provides, in part, that if
merchandise is imported and released
from Customs custody, the obligors on

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Federal Register / Vol. 69, No. 146 / Friday, July 30, 2004 / Rules and Regulations

a Customs bond (principal and surety,
jointly and severally) agree to pay, as
demanded by Customs, all additional
duties, taxes, and charges subsequently
found due, legally fixed, and imposed
on any entry secured by the bond.
Reason for Change
The IRS has found that abusive
situations exist with regard to the entry
of taxable fuel into the United States.
For example, some enterers are not
registered and are not paying the tax on
their fuel entries. This not only gives
noncompliant enterers a competitive
advantage over their compliant
competitors, but it also deprives the
United States Treasury of revenue
intended for the Highway Trust Fund.
When Congress enacted the present
fuel tax regime, it noted that the
Treasury Department is permitted ‘‘to
prescribe rules and administrative
procedures for determining liability for
payment of tax.’’ H.R. Conf. Rep. No.
101–964, at 1052 (1990).
Explanation of Provisions
Pursuant to these temporary
regulations, the importer of record
(under Customs law) is jointly and
severally liable with the enterer for the
tax if the importer of record is not the
enterer of the taxable fuel (that is, the
importer of record is a customs broker
engaged by the enterer) and the enterer
is not a taxable fuel registrant. Thus, an
importer of record engaged by an enterer
and seeking assurance that it will not be
jointly and severally liable for the
enterer’s tax liability should verify that
the enterer is registered by the IRS. This
temporary regulation is similar to
§ 48.4081–2(c)(2) of the regulations,
which provides that a terminal operator
generally is jointly and severally liable
for the tax imposed on the removal of
taxable fuel from the rack if the terminal
operator allows an unregistered position
holder to operate in its terminal.
Customs laws and regulations provide
that the importer of record is liable for
any duties or taxes that attach upon the
importation of merchandise. Therefore,
an importer of record’s Customs bond
secures not only the payment of duties,
but also the payment of taxes that are
imposed on the entry of merchandise,
including taxable fuel. Consequently,
under existing law, a surety could be
compelled to meet a demand on a
Customs bond if the excise tax on the
entry of taxable fuel is not paid when
due. However, the IRS will not charge
a surety bond for this tax until the
effective date of these temporary
regulations. It should be noted,
however, that under these temporary
regulations the Customs bond posted for

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Jkt 203001

the entry of taxable fuel will not be
charged for the section 4081 tax if the
enterer is a taxable fuel registrant.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in
Executive Order 12866. Therefore, a
regulatory flexibility assessment is not
required. It also has been determined
that section 553(b) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations. For the
applicability of the Regulatory
Flexibility Act (5 U.S.C. chapter 6), refer
to the Special Analyses section of the
preamble to the cross-reference notice of
proposed rulemaking published in the
Proposed Rules section in this issue of
the Federal Register. Pursuant to
section 7805(f) of the Code, these
temporary regulations will be submitted
to the Chief Counsel for Advocacy of the
Small Business Administration for
comment on their impact on small
business.
Drafting Information
The principal author of these
regulations is Celia Gabrysh, Office of
Associate Chief Counsel (Passthroughs
and Special Industries). However, other
personnel from the IRS, the Treasury
Department, and the Bureau of Customs
and Border Protection, Department of
Homeland Security, participated in their
development.
26 CFR Part 48
Excise taxes, Reporting and
recordkeeping requirements.
26 CFR Part 602
Reporting and Recordkeeping
requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 48 and 602
are amended as follows:

■

PART 48—MANUFACTURERS AND
RETAILERS EXCISE TAXES
Paragraph 1. The authority citation for
part 48 continues to read, in part, as
follows:

■

Authority: 26 U.S.C. 7805 * * *
■ Par. 2. In § 48.4081–1, paragraph (b) is
amended by adding a new sentence to
the end of the definition of enterer to
read as follows:

Taxable fuel; definitions.

*

*
*
*
*
(b) * * * This definition of enterer
does not apply with respect to an entry

PO 00000

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Fmt 4700

§ 48.4081–1T
(temporary).

Taxable fuel; definitions

(a) [Reserved]. For further guidance,
see § 48.4081–1(a).
(b) Definitions.
Definitions of approved terminal or
refinery through diesel-powered train
[Reserved].
Enterer generally means, in the case of
an entry of taxable fuel on or after
September 28, 2004, the importer of
record (under customs law) with respect
to the taxable fuel, except that—
(1) If the importer of record is a
customs broker engaged by the owner of
the taxable fuel, the person for whom
the broker is acting is the enterer; and
(2) If there is no importer of record for
taxable fuel entered into the United
States, the owner of the taxable fuel at
the time it is brought into the United
States is the enterer.
Definition of entry through (f)(2)
[Reserved]. For further guidance, see
§ 48.4081–1(b) definition of entry
through (f)(2).
■ Par. 4. In § 48.4081–3, revise
paragraph (c)(2) to read as follows:
§ 48.4081–3 Taxable fuel; taxable events
other than removal at the terminal rack.

*

List of Subjects

§ 48.4081–1

if the definition of enterer in § 48.4081–
1T(b) is applicable with respect to that
entry.
*
*
*
*
*
■ Par. 3. Section 48.4081–1T is added to
read as follows:

Sfmt 4700

*
*
*
*
(c) * * *
(2) Liability for tax—(i) In general.
The enterer is liable for the tax imposed
under paragraph (c)(1) of this section.
(ii) through (iv) For further guidance,
see § 48.4081–3T(c)(2)(ii) through (iv).
*
*
*
*
*
■ Par. 5. Section 48.4081–3T is added to
read as follows:
§ 48.4081–3T Taxable fuel; taxable events
other than removal at the terminal rack
(temporary).

(a) through (c)(2)(i) [Reserved]. For
further guidance, see § 48.4081–3(a)
through (c)(2)(i).
(c)(2)(ii) Joint and several liability of
the importer of record. In the case of an
entry of taxable fuel on or after
September 28, 2004, the importer of
record with respect to the taxable fuel
is jointly and severally liable with the
enterer for the tax imposed under
§ 48.4081–3(c)(1) if—
(A) The importer of record is not the
enterer of the taxable fuel; and
(B) The enterer is not a taxable fuel
registrant.
(iii) Conditions for avoidance of
liability. The importer of record is not

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Federal Register / Vol. 69, No. 146 / Friday, July 30, 2004 / Rules and Regulations
liable for the tax under paragraph
(c)(2)(ii) of this section if, at the time of
the entry, the importer of record—
(A) Has an unexpired notification
certificate (as described in § 48.4081–5)
from the enterer; and
(B) Has no reason to believe that any
information in the notification
certificate is false.
(iv) Customs bond. In the case of an
entry of taxable fuel on or after
September 28, 2004, the Customs bond
posted with respect to the importation
of the fuel will not be charged for the
tax imposed on the entry of the fuel if
the enterer is a taxable fuel registrant. A
surety bond will not be charged for the
tax imposed on the entry of the fuel
covered by the bond, if at the time of
entry, the surety—
(A) Has an unexpired notification
certificate (as described in § 48.4081–5)
from the enterer; and
(B) Has no reason to believe that any
information in the notification
certificate is false.
(d) through (j) [Reserved]. For further
guidance, see § 48.4081–3(d) through (j).
§ 48.4081–5

[Amended]

■ Par. 6. Section 48.4081–5 is amended
as follows:
■ a. Paragraph (a) is amended by
removing the language ‘‘48.4081–
2(c)(3),’’ and by adding ‘‘48.4081–
2(c)(2)(ii), 48.4081–3T(c)(2)(iii) and
(iv),’’ in its place.
■ b. Paragraph (b)(2) is amended by
removing the language ‘‘gasoline
registrant’’ and adding ‘‘taxable fuel
registrant’’ in its place.

PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
■ Par. 7. The authority citation for part
602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 8. In § 602.101, paragraph (b) is
amended by adding an entry in
numerical order to the table to read as
follows:

■

§ 602.101

*

OMB Control numbers.

*
*
(b) * * *

*

*
Current
OMB control
No.

CFR part or section where
identified and described

*
*
*
*
*
48.4081–3T ...............................
1545–1897
*

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*

*

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*

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*

45589

Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
Approved: July 14, 2004.
Gregory Jenner,
Acting Assistant Secretary of the Treasury.
[FR Doc. 04–17449 Filed 7–29–04; 8:45 am]

call Carlton Perry, U.S. Coast Guard,
telephone: 202–267–0979. If you have
questions on viewing the docket, call
Andrea M. Jenkins, Program Manager,
Docket Operations, telephone 202–366–
0271.
SUPPLEMENTARY INFORMATION:

BILLING CODE 4830–01–P

Regulatory History
This rulemaking began with our
publication of two notices requesting
comment, both titled ‘‘Recreational
Safety-Federal Requirements for
Wearing Personal Flotation Devices,’’ in
the Federal Register. We published the
first notice in the Federal Register on
September 25, 1997, CGD 97–059 [62 FR
50280]. It included questions about
potential PFD-wearing requirements for
recreational boaters. We extended the
comment period in a notice published
in the Federal Register on March 20,
1998, CGD 97–059 [63 FR 13586]. We
published another notice, focusing on
certain children, riders on personal
watercraft, and persons being towed
behind recreational vessels, in the
Federal Register on October 5, 1999,
USCG–1999–6219 [64 FR 53971].
We received approximately 600
comments for the first notice and
another 600 comments for the second
notice. We developed a Notice of
Proposed Rulemaking (NPRM), after
considering all the comments,
proposing Federal requirements for
certain children to wear personal
flotation devices (PFDs).
We published an NPRM titled
‘‘Wearing of Personal Flotation Devices
(PFDs) by Certain Children Aboard
Recreational Vessels’’ in the Federal
Register on May 1, 2001 [66 FR 21717].
The NPRM proposed that children
under the age of thirteen be required to
wear PFDs when they are above decks
aboard recreational vessels that are
under way. The NPRM discussed the
approximately 1,200 comments that we
received in response to the two requests
for comments. No public hearing was
requested and none was held.
By the close of the NPRM comment
period on August 30, 2001, we had
received 46 more comments. Of those,
22 comments supported the rule as
proposed in the NPRM, 8 supported it
with changes, and 16 opposed it. Most
comments that supported the rule as
proposed in the NPRM stated that it
would be a positive step toward
reducing drownings and toward
uniform requirements across the States.
Opposing comments expressed concern
that Federal action would interfere with
individual State efforts to mandate the
use of PFDs.
After summarizing the comments
received in response to the NPRM, we

DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 175
[USCG–2000–8589]
RIN 1625–AA62 (Formerly 2115–AG04)

Wearing of Personal Flotation Devices
(PFDs) by Certain Children Aboard
Recreational Vessels
Coast Guard, DHS.
Final rule.

AGENCY:
ACTION:

SUMMARY: This final rule adopts, with
two changes, the interim rule published
on June 24, 2002, which required
certain children under the age of
thirteen aboard recreational vessels to
wear a personal flotation device (PFD).
It changes the requirement from ‘‘each
child’’ under the age of thirteen, to
‘‘certain children’’ under the age of
thirteen, and addresses in more detail
when Federal or State requirements
apply. These changes clarify the Coast
Guard’s enforcement of existing State
standards. This final rule is intended to
reduce the number of children who
drown because they are not wearing
PFDs.

This final rule is effective August
30, 2004.
ADDRESSES: Comments and material
received from the public, as well as
documents mentioned in this preamble
as being available in the docket are part
of docket USCG–2000–8589 and are
available for inspection or copying at
the Docket Management Facility, U.S.
Department of Transportation, room PL–
401, 400 Seventh Street, SW.,
Washington, DC, between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
You may obtain a copy of this rule by
calling the U.S. Coast Guard Infoline at
1–800–368–5647 or by accessing either
the Web site for the Office of Boating
Safety at http://www.uscgboating.org, or
the Internet site for the Docket
Management Facility at http://
dms.dot.gov.
DATES:

If
you have questions on this Final Rule,

FOR FURTHER INFORMATION CONTACT:

PO 00000

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