CSMS Message: 94-000956

TO : ALL ABI BROKERS.

FROM : DALE SNELL

SUBJECT : DRAFT REGS-LABS & GAUGERS

DATE : 09/19/94

NOTICE: THIS IS A DRAFT DOCUMENT

DEPARTMENT OF THE TREASURY
UNITED STATES CUSTOMS SERVICE

19 CFR PARTS 113 AND 151

RIN 1515-AB60

ACCREDITATION OF COMMERCIAL TESTING LABORATORIES;
APPROVAL OF COMMERCIAL GAUGERS

AGENCY: U.S. CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY.
ACTION: NOTICE OF PROPOSED RULEMAKING.
SUMMARY: THIS DOCUMENT PROPOSES TO AMEND THE CUSTOMS REGULATIONS
RELATING TO THE PRIVATE TESTING AND GAUGING OF IMPORTED
MERCHANDISE, PURSUANT TO CUSTOMS MODERNIZATION PROVISIONS OF THE
NORTH AMERICAN FREE TRADE AGREEMENT IMPLEMENTATION ACT. THE
PROPOSED REGULATIONS SET FORTH PROCEDURES FOR THE ACCREDITATION
OF COMMERCIAL LABORATORIES AND THE APPROVAL OF COMMERCIAL
GAUGERS, AND THE SUSPENSION AND REVOCATION OF SUCH ACCREDITATIONS
AND APPROVALS. FURTHER, THE PROPOSED REGULATIONS ALLOW CUSTOMS
TO IMPOSE REASONABLE FEES FOR SUCH ACCREDITATION APPROVAL AND
PERIODIC REACCREDITATION REAPPROVAL, AND TO ASSESS MONETARY
PENALTIES FOR FAILURE TO ADHERE TO ANY OF THE PROVISIONS
APPLICABLE TO THE EXAMINATION, SAMPLING, AND TESTING OF IMPORTED
MERCHANDISE.
DATES: COMMENTS MUST BE RECEIVED ON OR BEFORE INSERT DATE 60
DAYS FROM PUBLICATION IN THE FEDERAL REGISTER .
ADDRESS: WRITTEN COMMENTS (PREFERABLY IN TRIPLICATE) MAY BE
ADDRESSED TO THE REGULATIONS BRANCH, OFFICE OF REGULATIONSAND
RULINGS, U.S. CUSTOMS SERVICE, FRANKLIN COURT, 1301 CONSTITUTION
AVENUE, NW., WASHINGTON, D.C. 20229. COMMENTS SUBMITTED MAY BE
INSPECTED AT THE REGULATIONS BRANCH, OFFICE OF REGULATIONS AND
RULINGS, U.S. CUSTOMS SERVICE, FRANKLIN COURT, 1099 14TH ST., NW,
SUITE 4000, WASHINGTON, D.C.
FOR FURTHER INFORMATION CONTACT: CAROLYN E. DAMON, OFFICE OF
LABORATORIES AND SCIENTIFIC SERVICES, (312) 353-2338.
SUPPLEMENTARY INFORMATION:
BACKGROUND
ON DECEMBER 8, 1993, THE UNITED STATES ENACTED THE NORTH
AMERICAN FREE TRADE AGREEMENT IMPLEMENTATION ACT (THE ACT),
PUBLIC LAW 103-182, 107 STAT. 2057. TITLE VI OF THE ACT CONTAINS
PROVISIONS PERTAINING TO CUSTOMS MODERNIZATION (107 STAT. 2170);
SECTION 613 OF SUBTITLE A AMENDS SECTION 499 OF THE TARIFF ACT OF
1930 (19 U.S.C. 1499), WHICH PROVIDES CUSTOMS WITH THE AUTHORITY
TO CONDUCT EXAMINATIONS AND DETAIN IMPORTED MERCHANDISE.
THE PROVISIONS OF SECTION 613, AMONG OTHER THINGS, CODIFY
CUSTOMS REGULATIONS AND ADMINISTRATIVE GUIDELINES CONCERNING THE
USE OF COMMERCIAL LABORATORIES AND GAUGERS BY ADDING A NEW
SUBSECTION (B) TO SECTION 499 (19 U.S.C. 1499(B)). THE
PROVISIONS OF THIS NEW SUBSECTION AUTHORIZE CUSTOMS, IN PART, TO
SET PROCEDURES FOR (1) THE ACCREDITATION OF COMMERCIAL
LABORATORIES IN THE UNITEDSTATES, WHICH MAY BE USED TO PERFORM
TESTS TO ESTABLISH THE CHARACTERISTICS OR COMPOSITION OF IMPORTED
MERCHANDISE, AND THE APPROVAL OF COMMERCIAL GAUGERS WITHIN THE
UNITED STATES, WHICH MAY BE USED TO PERFORM TESTS TO ESTABLISH
THE QUANTITIES OF IMPORTED MERCHANDISE; (2) THE SUSPENSION AND
REVOCATION OF SUCH ACCREDITATIONS AND APPROVALS; AND,
(3) THE IMPOSITION OF REASONABLE CHARGES FOR ACCREDITATION
APPROVAL AND PERIODIC REACCREDITATION REAPPROVAL.
THIS SUBSECTION ALSO PROVIDES THAT: (1) IN THE ABSENCE OF
CUSTOMS TESTING, CUSTOMS SHALL ACCEPT ANALYSIS AND QUANTITY
RESULTS FROM SUCH CUSTOMS-ACCREDITED LABORATORIES AND
CUSTOMS-APPROVED GAUGERS, BUT DOES NOT LIMIT OR PRECLUDE CUSTOMS
OR ANY OTHER FEDERAL AGENCY FROM INDEPENDENTLY TESTING,
ANALYZING, OR QUANTIFYING ANY MERCHANDISE;
(2) CUSTOMS MAY INSTITUTE PENALTIES FOR VIOLATIONS OF LAW,
REGULATIONS, OR THE COMMERCIAL LABORATORY OR GAUGER AGREEMENT;
(3) TESTING PROCEDURES AND METHODOLOGIES, UNLESS THEY REVEAL
INFORMATION DEVELOPED BY CUSTOMS FOR ENFORCEMENT PURPOSES OR
INFORMATION PROPRIETARY TO THE HOLDER OF A COPYRIGHT OR PATENT,
WILL BE MADE AVAILABLE UPON REQUEST TO LABORATORIES AND IMPORTERS
OR THEIR AGENTS; AND, (4) UPON REQUEST, INFORMATION RESULTING
FROM CUSTOMS TESTING WILL BE MADE AVAILABLE TO THE IMPORTER OF
RECORD AND ANY AGENTS THEREOF, UNLESS IT MEETS THE EXCLUSIONS
DESCRIBED AT (3) ABOVE. OTHER PROVISIONS OF SECTION 613 OF THE
ACT, THOSE NOT DEALING WITH THE ACCREDITATION APPROVAL OF
COMMERCIAL LABORATORIES GAUGERS--PORTIONS OF SUBSECTION (B) AND
THE PROVISIONS OF NEW SUBSECTION (C) OF SECTION 499, AS AMENDED
(19 U.S.C. 1499 (B) AND (C))--ARE NOT COVERED IN THIS DOCUMENT.
COMMERCIAL LABORATORIES
HERETOFORE, CUSTOMS HAS ACCREDITED COMMERCIAL LABORATORIES
ONLY TO PERFORM SELECTED TESTS ON CERTAIN IMPORTED MERCHANDISE
ENTERED IN HTSUS CHAPTERS 27 AND 29. THE PROPOSED AMENDMENTS
WILL EXPAND THE SCOPE OF THIS PROGRAM TO ALLOW SUCH LABORATORIES
TO PERFORM THE MAJORITY OF THE TESTS WHICH CUSTOMS LABORATORIES
NOW PERFORM. HOWEVER, CUSTOMS ACCREDITATION OF SUCH LABORATORIES
WILL EXTEND ONLY TO THE PERFORMANCE OF FUNCTIONS FOR DETERMINING
THE ADMISSIBILITY, COMPOSITION, OR CHARACTERISTICS OF IMPORTED
MERCHANDISE THAT ARE VESTED IN, OR DELEGATED TO, THE CUSTOMS
SERVICE.
IMPORTERS MAY CHOOSE, AT THEIR EXPENSE, TO HAVE MERCHANDISE
TESTED BY CUSTOMS-ACCREDITED LABORATORIES WHOSE TEST RESULTS WILL
BE ACCEPTED BY CUSTOMS IN LIEU OF ITS OWN TESTING IF THE IMPORTER
CERTIFIES THAT THE SAMPLE TESTED WAS TAKEN FROM THE MERCHANDISE
IN THE ENTRY. THIS MAY RESULT IN THE EARLIER AVAILABILITY OF
TEST RESULTS AND SHOULD ENSURE THAT MERCHANDISE IS ENTERED UNDER
THE CORRECT TARIFF CLASSIFICATION.
THE PROPOSED REGULATIONS DO NOT PRECLUDE CUSTOMS FROM
SAMPLING AND TESTING MERCHANDISE FROM A SHIPMENT WHICH HAS BEEN
SAMPLED AT THE REQUEST OF AN IMPORTER AND TESTED BY A
CUSTOMS-ACCREDITED LABORATORY AT HIS EXPENSE. CUSTOMS MAY ALSO
REQUEST SAMPLE SPLITS FROM ACCREDITED LABORATORIES FROM TIME TO
TIME AND TEST THESE. IN CASES WHERE SAMPLES FROM A SHIPMENT HAVE
BEEN ANALYZED BY BOTH CUSTOMS AND A CUSTOMS- ACCREDITED
LABORATORY, ALL CUSTOMS ACTIONS WILL BE BASED UPON THE ANALYSIS
PROVIDED BY CUSTOMS, UNLESS OTHER ACTION IS INDICATED BY THE
DIRECTOR, OFFICE OF LABORATORIES AND SCIENTIFIC SERVICES.
TO APPLY FOR ACCREDITATION, COMMERCIAL LABORATORIES MUST
SUBMIT A LETTER OF APPLICATION TO CUSTOMS. THEY MUST ALSO
PROVIDE A WRITTEN AGREEMENT STATING THAT THEY WILL AVOID
CONFLICT-OF-INTEREST SITUATIONS AND COMPLY WITH THE REQUIREMENTS
PRESCRIBED BY CUSTOMS.
CUSTOMS WILL DETERMINE AN APPLICANT'S COMPETENCE,
INDEPENDENCE, AND REPUTATION BY APPROPRIATE TECHNIQUES, INCLUDING
ON-SITE INSPECTIONS AND BACKGROUND INVESTIGATIONS. THE
ACCREDITATION PROCESS WILL CONSIST OF A REVIEW ALONG THE LINES OF
THAT DESCRIBED IN THE AMERICAN SOCIETY FOR TESTING AND MATERIALS
(ASTM) E548 STANDARD GUIDE FOR GENERAL CRITERIA USED FOR
EVALUATING LABORATORY COMPETENCE.
TO OBTAIN ACCREDITATION, LABORATORIES MUST MEET CERTAIN
TECHNICAL AND OPERATIONAL REQUIREMENTS. THESE INCLUDE HAVING AN
APPROPRIATE FACILITY PROPERLY EQUIPPED TO PERFORM THE DESIGNATED
TESTS AND STAFF CAPABLE OF PERFORMING THESE TESTS. IN ADDITION
TO REVIEWING AN APPLICANT'S OVERALL PHYSICAL PLANT AND MANAGEMENT
SYSTEM, SEPARATE REVIEW AND TESTING WILL BE CONDUCTED FOR EACH
COMMODITY GROUP FOR WHICH APPLICATION IS MADE.
LABORATORIES MUST FURTHER AGREE TO CERTAIN RECORDKEEPING
REQUIREMENTS TO PERMIT THE EVALUATION AND VERIFICATION OF ALL
CUSTOMS-RELATED WORK. ALTHOUGH THE STANDARD RECORD RETENTION
PERIOD FOR CUSTOMS DOCUMENTS IS FIVE YEARS (SEE, 151.13(I),
REFERENCES 162.1C OF THE CUSTOMS REGULATIONS), SINCE ACCREDITED
LABORATORIES WILL NOW BE PERFORMING FUNCTIONS OTHERWISE PERFORMED
BY CUSTOMS LABORATORIES, IT IS PROPOSED TO REQUIRE THAT ALL
RECORDS BE MAINTAINED FOR A PERIOD OF AT LEAST TEN YEARS, IN THE
ABSENCE OF WRITTEN INSTRUCTIONS FROM CUSTOMS TO THE CONTRARY,
E.G., RECORDS MAY BE REQUIRED TO BE MAINTAINED FOR A LONGER
PERIOD OF TIME WHERE PENDING LITIGATION INVOLVES THOSE RECORDS.
IN THE FINAL STAGES OF THE APPLICATION PROCESS, THE
COMMERCIAL LABORATORY WILL BE REQUIRED TO OBTAIN A BOND EXECUTED
IN ACCORDANCE WITH PART 113 OF THE CUSTOMS REGULATIONS (19 CFR
PART 113). THE LIMITS OF LIABILITY ON THE BOND WILL BE
ESTABLISHED BY THE CUSTOMS DISTRICT IN WHICH THE APPLICANT'S MAIN
OFFICE IS LOCATED IN CONSULTATION WITH THE DIRECTOR, OFFICE OF
LABORATORIES AND SCIENTIFIC SERVICES.
WHEN THE PROCESS IS COMPLETE, CUSTOMS WILL NOTIFY THE
APPLICANT OF APPROVAL OR DISAPPROVAL, GIVING THE REASONS FOR LESS
THAN FULL APPROVAL. LABORATORIES DISAPPROVED MAY REAPPLY AFTER
THREE MONTHS BY SUBMITTING A NEW APPLICATION. ONCE ACCREDITED,
LABORATORIES MAY APPLY TO EXPAND THEIR ACCREDITATION AT ANY TIME.

CUSTOMS-ACCREDITED LABORATORIES MUST UNDERGO REACCREDITATION
EVERY THREE YEARS.
COMMERCIAL LABORATORIES WILL BE ACCREDITED BY COMMODITY
GROUP. THESE COMMODITY GROUPS PARALLEL CHAPTERS OR SUBSECTIONS
IN THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES, WHICH IS
USED TO CLASSIFY IMPORTED MERCHANDISE. LABORATORIES MAY BE
ACCREDITED TO PERFORM TESTING IN MORE THAN ONE COMMODITY GROUP.
CUSTOMS PLANS TO ACCREDIT LABORATORIES TO PERFORM SPECIFIC
TESTS WITHIN COMMODITY GROUPS. THESE TESTS ARE DESIGNATED IN
COMMODITY GROUP BROCHURES AVAILABLE FROM CUSTOMS. THIS PROCESS
SHOULD ENSURE THAT THE IMPORTER- CLIENT IS PROVIDED WITH
APPROPRIATE TEST RESULTS FOR CUSTOMS PURPOSES. ALSO, CUSTOMS
LABORATORIES HAVE BEEN PERFORMING THESE TESTS AND WILL, FROM TIME
TO TIME, PERFORM CUSTOMS OWN ANALYSES OF MERCHANDISE FROM THE
SAME ENTRY. IT IS BROADLY RECOGNIZED THAT DIFFERENT TEST METHODS
MAY PRODUCE DIFFERENT RESULTS, AND IT IS INHERENT IN THIS PROGRAM
THAT CUSTOMS LABORATORIES AND CUSTOMS-ACCREDITED LABORATORIES
OBTAIN THE SAME RESULTS.CUSTOMS RECOGNIZES THAT CERTAIN TESTS
REQUIRE EXPENSIVE, HIGHLY-SPECIALIZED EQUIPMENT OR NARROW
TECHNICAL EXPERTISE. ALSO, BECAUSE ANY GIVEN COMMODITY GROUP MAY
INVOLVE MANY DIFFERENT CHEMICAL, PHYSICAL, OR MECHANICAL TESTS,
CUSTOMS WILL GRANT ACCREDITATION FOR SUBGROUPS OF TESTS WITHIN A
COMMODITY GROUP AND WILL CONSIDER ACCREDITATION FOR COMMODITY
GROUPS NOT SPECIFICALLY ENUMERATED IN THE PROPOSED REGULATIONS.
CUSTOMS ALSO RECOGNIZES THAT MANY LABORATORY ACCREDITATION
SYSTEMS PERFORM ACCREDITATION BY FIELDS OF TESTING, SUCH AS
CHEMICAL, BIOLOGICAL, MECHANICAL, ETC. THIS APPROACH WAS
REJECTED IN FAVOR OF COMMODITY GROUPS AND SUBGROUPS BECAUSE OF
THE SPECIALIZED NATURE OF CUSTOMS TECHNICAL REQUIREMENTS AND
BECAUSE MANY COMMODITIES REQUIRE TESTING IN MORE THAN ONE
TRADITIONAL FIELD.
SINCE IT IS INCUMBENT UPON THE IMPORTER OF MERCHANDISE, NOT
THE CUSTOMS-ACCREDITED LABORATORY, TO ENSURE THAT THE PROPER
TESTS ARE PERFORMED, IMPORTERS MIGHT REJECT THE SERVICES OF
LABORATORIES ACCREDITED IN ONLY ONE FIELD, WHEREAS THESE
LABORATORIES MIGHT HAVE SOUGHT ACCREDITATION IN MULTIPLE FIELDS
IF THEY HAD KNOWLEDGE OF CUSTOMS REQUIREMENTS. A METALS TESTING
LABORATORY, FOR EXAMPLE, FREQUENTLY PERFORMS BOTH CHEMICAL AND
MECHANICAL TESTING. SUCH A LABORATORY, APPLYING FOR CUSTOMS
ACCREDITATION, WILL RECEIVE A LIST OF TESTS FOR WHICH
ACCREDITATION IS AVAILABLEUNDER THE METALS AND ALLOYS COMMODITY
GROUP. THUS, THE LABORATORY IS MORE LIKELY TO APPLY FOR THE TYPE
OF ACCREDITATION REQUIRED BY IMPORTERS.
SAMPLES TESTED BY CUSTOMS-ACCREDITED LABORATORIES WILL BE
MERCHANDISE FROM THE ACTUAL IMPORTATIONS OBTAINED UPON REQUEST OF
CUSTOMS BY THE IMPORTER OF RECORD. CUSTOMS WILL RELEASE TO THE
IMPORTER A REPRESENTATIVE SAMPLE OF THE MERCHANDISE, WHICH WILL
BE TAKEN AND SPLIT INTO TWO ESSENTIALLY EQUAL PARTS UNDER CUSTOMS
SUPERVISION AT THE PORT OF ENTRY. EACH PART WILL BE OF
SUFFICIENT SIZE SO THAT COMPLETE TESTING FOR CUSTOMS PURPOSES
COULD BE PERFORMED. THE ACCREDITED LABORATORY WILL TEST ONE PART
AND RESERVE THE SECOND, UNDER PROPER STORAGE CONDITIONS, FOR A
PERIOD OF ONE YEAR. ANY SAMPLE REMNANTS FROM THE ACCREDITED
LABORATORY'S OWN TESTING MUST ALSO BE RETAINED FOR A PERIOD OF
ONE YEAR. FROM TIME TO TIME, CUSTOMS WILL REQUEST RESERVED
SAMPLES FOR ITS OWN TESTING, AS PART OF ITS QUALITY CHECK
PROGRAM. IN THE ABSENCE OF WRITTEN INSTRUCTIONS FROM CUSTOMS TO
THE CONTRARY, RESERVED SAMPLES AND REMNANTS MAY BE DESTROYED
AFTER ONE YEAR FROM THE DATE OF THE LABORATORY'S FINAL ANALYSIS
REPORT OR MORE EXPEDITIOUSLY, IN LINE WITH NORMAL LABORATORY
PROCEDURES, IF THE SAMPLE IS PERISHABLE.
MAINTENANCE OF ACCREDITATION WILL BE ONGOING. IN
PARTICULAR, ACCREDITED LABORATORIES WILL BE REQUIRED TO PERFORM
PERIODIC ANALYSES OF CHECK SAMPLES AND TO SUBMIT THERESULTS TO
CUSTOMS. CHECK SAMPLES ARE SAMPLES WHICH HAVE BEEN DISTRIBUTED
BY CUSTOMS TO TEST PROFICIENCY IN A CERTAIN AREA OF
ACCREDITATION. THE RESULTS MUST DEMONSTRATE THAT THE LABORATORY
HAS THE ABILITY TO PRODUCE A WORK PRODUCT THAT WILL RESULT IN THE
PROPER CLASSIFICATION OF AND DUTY COLLECTION FOR THE IMPORTED
MERCHANDISE.
IN ADDITION TO ESTABLISHING THE CONDITIONS REQUIRED FOR
LABORATORIES TO RECEIVE AND MAINTAIN ACCREDITATION, THE PROPOSED
REGULATIONS ESTABLISH CONDITIONS FOR SUSPENDING AND REVOKING
ACCREDITATION. SUSPENSION OR REVOCATION MAY INCLUDE THE
IMPOSITION OF A MONETARY PENALTY NOT TO EXCEED $ 100,000, AND
SUCH PENALTY MAY BE IN ADDITION TO THE RECOVERY, FROM THE
ACCREDITED LABORATORY, OF ANY LOSS OF REVENUE THAT MAY HAVE
OCCURRED. HOWEVER, THE CUSTOMS SERVICE MAY SEEK TO RECOVER LOST
REVENUE FROM THE ACCREDITED LABORATORY ONLY IN CASES WHERE THE
LABORATORY INTENTIONALLY FALSIFIED THE ANALYSIS IN COLLUSION WITH
THE IMPORTER. THE CUSTOMS SERVICE SHALL NEITHER ASSESS PENALTIES
NOR SEEK TO RECOVER LOST REVENUE BECAUSE OF A GOOD FAITH
DIFFERENCE OF PROFESSIONAL OPINION.
ADVERSE DECISIONS OR ORDERS MAY BE APPEALED TO THE DIRECTOR,
OFFICE OF LABORATORIES AND SCIENTIFIC SERVICES, AND THEN TO THE
COMMISSIONER OF CUSTOMS. A LABORATORY APPLYING FOR
ACCREDITATION, OR ONE THAT IS ACCREDITED, MAY ALSO CONTEST ANY
DECISION OR ORDER OF THE CUSTOMS SERVICEDENYING, SUSPENDING, OR
REVOKING ACCREDITATION, OR IMPOSING A MONETARY PENALTY, BY
COMMENCING AN ACTION IN ACCORDANCE WITH CHAPTER 169 OF TITLE 28
OF THE UNITED STATES CODE IN THE COURT OF INTERNATIONAL TRADE
WITHIN 60 DAYS AFTER ISSUANCE OF THE DECISION OR ORDER.

COMMERCIAL GAUGERS
CUSTOMS REGULATIONS ALSO INCLUDE PROVISIONS FOR APPROVING
COMMERCIAL GAUGERS AND FOR ACCEPTING FROM CUSTOMS- APPROVED
COMMERCIAL GAUGERS REPORTS OF THE NET LANDED QUANTITY OF CERTAIN
PRODUCTS. THE PROPOSED PROVISIONS FOR COMMERCIAL GAUGERS WILL
GENERALLY PARALLEL THOSE FOR COMMERCIAL LABORATORIES, EXCEPT THAT
THE IMPORTED PRODUCTS FOR WHICH GAUGING APPROVAL MAY BE OBTAINED
ARE ESSENTIALLY THE SAME AS THOSE PROVIDED UNDER THE CURRENT
REGULATIONS.

REASONABLE CHARGES FOR ACCREDITATION REACCREDITATION OR
APPROVAL REAPPROVAL
THE PROPOSED REGULATIONS PROVIDE FOR THE IMPOSITION OF
REASONABLE CHARGES ASSOCIATED WITH ACCREDITATION OR APPROVAL AND
PERIODIC REACCREDITATION OR REAPPROVAL. THESE CHARGES WILL BE
VARIABLE, DEPENDENT ON SPECIFIC TRAVEL COSTS AND THE SCOPE OF
PARTICULAR ACCREDITATION APPLICATIONS, AND ARE INSTITUTED ONLY TO
REIMBURSE CUSTOMS FOR THE ACTUAL COSTS OF PROCESSING
APPLICATIONS. ALTHOUGH CHARGES WILL BE SET EACH FISCAL YEAR,
BASED ON AGENCY REPORTS RESPECTIVELY ENTITLED "CUSTOMS LABORATORY
ACCREDITATION PROGRAM: ESTIMATEDCOSTS FEE STRUCTURE" AND
"CUSTOMS GAUGER APPROVAL PROGRAM: ESTIMATED COSTS FEE
STRUCTURE," INITIALLY, THE FEES WILL BE BASED ON ESTIMATES BASED
ON FOUR TO FIVE FACTORS. (THE REPORTS WILL ESTABLISH THE FEES
BASED ON THE PREVIOUS YEAR'S ACTIVITIES AND PROJECTIONS WITH THE
SOLE PURPOSE OF ESTABLISHING A FEE STRUCTURE WHICH RECOVERS THE
COSTS OF THE PROGRAM. COPIES OF THESE REPORTS MAY BE REQUESTED
FROM THE U.S. CUSTOMS SERVICE, ATTENTION: DIRECTOR, OFFICE OF
LABORATORIES AND SCIENTIFIC SERVICES, WASHINGTON, DC 20229.)
FOR LABORATORIES SEEKING ACCREDITATION REACCREDITATION, THE
ESTIMATED FEES ARE BASED ON THE FOLLOWING FIVE FACTORS: (1)
A GENERAL ACCREDITATION FEE OF $ 3,400 (PLUS ACTUAL TRAVEL COSTS
AND PER DIEM CHARGES), WHICH COVERS ADMINISTRATIVE OVERHEAD AND
THE COSTS ASSOCIATED WITH ACCREDITATION IN ONE COMMODITY GROUP;
(2) A BACKGROUND INVESTIGATION FEE OF $ 110 (PLUS ACTUAL
TRAVEL COSTS AND PER DIEM CHARGES);
(3) AN ACCREDITATION FEE OF $ 1,000 (PLUS ACTUAL TRAVEL
COSTS AND PER DIEM CHARGES) FOR EACH ADDITIONAL COMMODITY AREA;
(4) A YEARLY MAINTENANCE FEE OF $ 1,000 PER ACCREDITED
COMMODITY GROUP (PLUS ACTUAL TRAVEL COSTS AND PER DIEM CHARGES)
(THIS COST IS COVERED DURING THE FIRST YEAR, I.E., WHEN (1) OR
(3), ABOVE, APPLIES); AND,
(5) A REACCREDITATION FEE (EVERY THREE YEARS) OF
$ 1,500 FOR EACH LABORATORY (PLUS ACTUAL TRAVEL COSTS
AND PER DIEM CHARGES).
LABORATORIES MUST SUBMIT FIFTY PERCENT OF THE GENERAL
ACCREDITATION FEE WITH THEIR INITIAL APPLICATION FOR
ACCREDITATION. IN ADDITION, LABORATORIES MAY BE CHARGED A CHECK
SAMPLE FEE ON A PERIODIC BASIS.
THIS CHARGE STRUCTURE WOULD BE APPLIED AS FOLLOWS:
IN THE FIRST YEAR - A COMMERCIAL LABORATORY APPLYING FOR
INITIAL ACCREDITATION IN THREE COMMODITY AREAS WOULD HAVE TO
SUBMIT ONLY $ 1,700 (ONE HALF OF THE GENERAL ACCREDITATION FEE)
EVEN THOUGH THE TOTAL CHARGE FOR ACCREDITATION MAY EXCEED $ 5,510
($ 3,400 FOR GENERAL ACCREDITATION, PLUS $ 2,000 FOR
ACCREDITATIONS IN TWO ADDITIONAL COMMODITY GROUPS, PLUS $ 110 FOR
A BACKGROUND INVESTIGATION REPORT, PLUS ASSOCIATED TRAVEL AND PER
DIEM CHARGES ASSOCIATED WITH THESE ELEMENTS);
IN THE SECOND AND THIRD YEARS - ASSUMING CUSTOMS DOES NOT
REVISE ITS FEE STRUCTURE, THE ACCREDITED LABORATORY WOULD HAVE TO
PAY $ 3,000 ($ 1,000 FOR EACH COMMODITY GROUP) EACH YEAR TO
MAINTAIN ITS ACCREDITATIONS, PLUS ASSOCIATED TRAVEL AND PER DIEM
CHARGES ASSOCIATED WITH THESE ELEMENTS; AND,
IN THE FOURTH YEAR - ASSUMING CUSTOMS DOES NOT REVISE ITS
FEE STRUCTURE, THE ACCREDITED LABORATORY WOULD HAVE TO PAY $
3,500 ($ 1,500 FOR THE INITIAL COMMODITY GROUP REACCREDITED IN
AND $ 1,000 FOR EACH ADDITIONAL COMMODITY GROUP REACCREDITED IN)
FOR REACCREDITATION IN THE THREE COMMODITY GROUPS, PLUS
ASSOCIATED TRAVEL AND PER DIEM CHARGES ASSOCIATED WITH THESE
ELEMENTS.
SIMILARLY, FOR GAUGERS SEEKING APPROVAL REAPPROVAL, THE
ESTIMATED FEES FOR THE FIRST YEAR ARE BASED ON THE FOLLOWING FOUR
FACTORS: (1) A GENERAL APPROVAL FEE OF $ 800 (PLUS ACTUAL TRAVEL
COSTS AND PER DIEM CHARGES), WHICH COVERS ADMINISTRATIVE
OVERHEAD; (2) A BACKGROUND INVESTIGATION FEE OF $ 110 (PLUS
ACTUAL TRAVEL COSTS AND PER DIEM CHARGES); (3) A YEARLY
MAINTENANCE FEE OF $ 100 (PLUS ACTUAL TRAVEL COSTS AND PER DIEM
CHARGES); AND, (4) A REAPPROVAL FEE (EVERY THREE YEARS) OF $ 500
(PLUS ACTUAL TRAVEL COSTS AND PER DIEM CHARGES). GAUGERS MUST
SUBMIT FIFTY PERCENT OF THE GENERAL ACCREDITATION FEE WITH THEIR
INITIAL APPLICATION FOR APPROVAL.
THIS CHARGE STRUCTURE WOULD BE APPLIED AS FOLLOWS:
IN THE FIRST YEAR - A COMMERCIAL GAUGER APPLYING FOR INITIAL
APPROVAL WOULD HAVE TO SUBMIT ONLY $ 400 (ONE HALF OF THE GENERAL
ACCREDITATION FEE) EVEN THOUGH THE TOTAL CHARGE FOR ACCREDITATION
MAY EXCEED $ 910 ($ 800 FOR GENERAL ACCREDITATION, PLUS $ 110 FOR
A BACKGROUND INVESTIGATION REPORT, PLUS ASSOCIATED TRAVEL AND PER
DIEM CHARGES ASSOCIATED WITH THESE ELEMENTS);
IN THE SECOND AND THIRD YEARS - ASSUMING CUSTOMS DOES NOT
REVISE ITS FEE STRUCTURE, THE APPROVED GAUGER WOULD HAVE TO PAY $
100 PER SITE EACH YEAR TO MAINTAIN ITS APPROVAL, PLUS ASSOCIATED
TRAVEL AND PER DIEM CHARGES ASSOCIATED WITH THESE ELEMENTS; AND,
IN THE FOURTH YEAR - ASSUMING CUSTOMS DOES NOT REVISE ITS
FEE STRUCTURE, THE APPROVED GAUGER WOULD HAVE TO PAY $ 500 FOR
REAPPROVAL, PLUS ASSOCIATED TRAVEL AND PER DIEM CHARGES
ASSOCIATED WITH THESE ELEMENTS.
LABORATORIES AND GAUGERS THAT WERE ACCREDITED OR APPROVED
UNDER CUSTOMS REGULATIONS PRIOR TO JANUARY 1, 1994, WILL NOT BE
REQUIRED TO REAPPLY. THEY MUST, HOWEVER, CONDUCT THEIR BUSINESS
IN A MANNER CONSISTENT WITH THE ADMINISTRATIVE PORTIONS OF THE
AMENDED REGULATIONS AND WILL BE SUBJECT TO REEVALUATION ON
JANUARY 1, 1997, OR ON THE DATE WHEN THESE PROPOSED REGULATIONS
BECOME FINAL, WHICHEVER IS LATER. AT THAT TIME, THESE COMMERCIAL
LABORATORIES AND GAUGERS WILL BE REQUIRED TO PAY APPLICABLE FEES
FOR REACCREDITATION OR REAPPROVAL. THE YEARLY MAINTENANCE FEE OF
$ 1,000 PER COMMODITY GROUP FOR LABORATORIES AND $ 100 PER SITE
FOR GAUGERS WILL NOT BECOME APPLICABLE UNTIL THE FIRST
ANNIVERSARY OF THESE REGULATIONS.
CUSTOMS-ACCREDITED LABORATORIES MAY MAKE THEIR ACCREDITATION
KNOWN TO POTENTIAL CUSTOMERS, BUT MUST ACCURATELY REPRESENT THE
TESTS FOR THE COMMODITY GROUP OR GROUPS FOR WHICH ACCREDITATION
HAS BEEN OBTAINED. SUCH LABORATORIES WILL BE LIMITED TO THE USE
OF TERMS WHICHAPPEAR IN THE NOTICE OF APPROVAL RECEIVED AT THE
TIME THEY ARE ACCREDITED. PARALLEL PROVISIONS WILL APPLY TO
CUSTOMS- APPROVED GAUGERS.
THE REGULATIONS IMPLEMENTING THE EXAMINATION OF MERCHANDISE
PROVISIONS OF SECTION 499 ARE FOUND IN PART 151 OF THE CUSTOMS
REGULATIONS (19 CFR PART 151); 151.13 PERTAINS TO COMMERCIAL
GAUGERS AND LABORATORIES. OTHER CUSTOMS REGULATORY PROVISIONS
REFERENCING PART 151 ARE FOUND IN PART 113 (19 CFR PARTS 113).
IN THIS DOCUMENT CUSTOMS PROPOSES TO AMEND PARTS 113 AND 151
OF THE CUSTOMS REGULATIONS, AS DISCUSSED BELOW, TO IMPLEMENT
THOSE PROVISIONS OF SECTION 499(B) (19 U.S.C. 1499(B)) DISCUSSED
ABOVE. THE PROPOSED REGULATIONS WILL PROVIDE FOR THE
ACCREDITATION OF COMMERCIAL LABORATORIES AND THE APPROVAL OF
COMMERCIAL GAUGERS. SECTION 113.67 OF THE CUSTOMS REGULATIONS
(19 CFR 113.67) IS PROPOSED TO BE REVISED TO CARRY THE PROPER
CROSS REFERENCE FOR THE COMMERCIAL LABORATORY AND COMMERCIAL
GAUGER PROVISIONS, AS PROPOSED IN THIS DOCUMENT. SECTION 151.12
OF THE CUSTOMS REGULATIONS (19 CFR 151.12), CURRENTLY RESERVED,
IS PROPOSED TO BE AMENDED TO PROVIDE FOR THE EXAMINATION,
SAMPLING, AND TESTING OF MERCHANDISE BY COMMERCIAL LABORATORIES.
SECTION 151.13 OF THE CUSTOMS REGULATIONS (19 CFR 151.13) IS
PROPOSED TO BE AMENDED TO PROVIDE FOR THE SAMPLING AND
MEASUREMENT OF MERCHANDISE BY COMMERCIAL GAUGERS.
DISCUSSION OF PROPOSED CHANGES TO REGULATIONS
IT IS PROPOSED TO UTILIZE 151.12--CURRENTLY RESERVED
--TO SET FORTH THE PROVISIONS CONCERNING THE ACCREDITATION OF
COMMERCIAL LABORATORIES. SECTION 151.12 WILL CONTAIN 16
PARAGRAPHS ((A) THROUGH (P)).

PROPOSED NEW SECTION 151.12
PROPOSED PARAGRAPH (A) CONTAINS DEFINITIONS OF FIVE TERMS
AND PHRASES CURRENTLY SET FORTH IN THE INTRODUCTORY TEXT OF
151.13 THAT ARE USED THROUGHOUT THE REMAINING PARAGRAPHS OF
151.12.
PROPOSED PARAGRAPH (B) CONCERNS PROVISIONS CURRENTLY FOUND
AT 151.13(A)(2) REGARDING CUSTOMS ACCEPTANCE OF REPORTS FROM
CUSTOMS-ACCREDITED LABORATORIES THAT EMPLOY METHODS APPROVED BY
THE DIRECTOR, OFFICE OF LABORATORIES AND SCIENTIFIC SERVICES.
THE PARAGRAPH ALSO PROVIDES THAT CUSTOMS AND ANY OTHER FEDERAL
AGENCY RESERVES THE RIGHT TO INDEPENDENTLY CHALLENGE THE RESULTS
OF SUCH REPORTS.
THE TABLE OF COMMODITIES, CURRENTLY FOUND AT
151.13(A)(2), IS EXPANDED AND PLACED IN ITS OWN PARAGRAPH:
PROPOSED PARAGRAPH (C).
PROPOSED PARAGRAPH (D) SETS FORTH TEN REQUIREMENTS INVOLVED
IN THE ACCREDITATION APPLICATION PROCESS, WHICH ARE
SUBSTANTIALLY SIMILAR TO THOSE CURRENTLY FOUND AT
151.13(B), INCLUDING THE TEXT OF THE COMMERCIAL LABORATORY
AGREEMENT, WHICH IS IDENTICAL TO THE AGREEMENT TEXT PREVIOUSLY
PUBLISHED WITH ONE EXCEPTION. A NEW NOTIFICATION REQUIREMENT IS
INCLUDED TO COMPORT WITH THE TEN-YEAR RECORD RETENTION PROVISION
OF PROPOSED PARAGRAPH (J) OF THIS SECTION.
PROPOSED PARAGRAPH (E) RELATES TO THE ACCREDITATION PROCESS
AND THE CRITERIA WHICH WILL BE USED IN THE EVALUATION OF
APPLICANTS.
PROPOSED PARAGRAPH (F) PERTAINS TO DETERMINATIONS OF
COMPETENCE AND IS OSTENSIBLY THE SAME AS THE PROVISIONS CURRENTLY
FOUND AT 151.13(D).
PROPOSED PARAGRAPH (G) CONCERNS NOTICE OF APPROVAL OR
DISAPPROVAL OF ACCREDITATION AND IS SIMILAR TO THE APPROVAL AND
DISAPPROVAL PROVISIONS OF 151.13(F), BUT DOES NOT INCLUDE
NOTICE OF SUSPENSION OR REVOCATION--THESE NOTICE PROVISIONS WILL
BE CONTAINED IN PROPOSED PARAGRAPH (L)(2) OF THIS SECTION.
PROPOSED PARAGRAPH (H) PROVIDES THE PROCEDURE WHEREBY
IMPORTERS MAY OBTAIN SAMPLES OF THEIR MERCHANDISE FOR TESTING BY
CUSTOMS-ACCREDITED LABORATORIES.
PROPOSED PARAGRAPH (I) PERTAINS TO TECHNICAL AND OPERATIONAL
REQUIREMENTS AND IS OSTENSIBLY THE SAME AS THE PROVISIONS
CURRENTLY FOUND AT 151.13(G) AND (H); HOWEVER, IT DOES CONTAIN
A NEW EXPRESS PROHIBITION AGAINST ACCREDITED LABORATORIES
SUBCONTRACTING CUSTOMS-RELATED ANALYSES.
PROPOSED PARAGRAPH (J) PERTAINS TO THE INCREASED
RECORDKEEPING REQUIREMENTS, BUT IN OTHER RESPECTS IS SIMILAR TO
THE PROVISIONS CURRENTLY FOUND AT 151.13(I); HOWEVER, IT ONLY
PERTAINS TO COMMERCIAL LABORATORIES, AND A PROVISION FOR
ELECTRONIC RECORDS HAS BEEN ADDED.
PROPOSED PARAGRAPH (K) PROVIDES FOR LIMITED REPRESENTATIONS
BY CUSTOMS-ACCREDITED LABORATORIES REGARDING THEIR ACCREDITED
STATUS.
PROPOSED PARAGRAPH (L) PERTAINS TO SUSPENSION AND REVOCATION
OF ACCREDITATION AND IS SIMILAR TO THE SUSPENSION AND REVOCATION
PROVISIONS OF 151.13(K).
PROPOSED PARAGRAPH (M) PERTAINS TO PENALTIES FOR FAILURE TO
ADHERE TO ANY OF THE PROVISIONS OF THIS PART AND PROVIDES THAT
PENALTIES MAY NOT EXCEED $ 100,000 PER VIOLATION AND SHALL BE
CONSISTENT WITH THE SERIOUSNESS OF THE VIOLATION.
PROPOSED PARAGRAPH (N) PERTAINS TO GRANDFATHER RIGHTS FOR
LABORATORIES ALREADY ACCREDITED AND PROVIDES THAT LABORATORIES
HAVING CUSTOMS ACCREDITATION ON JANUARY 1, 1994, NEED NOT TAKE
ANY FURTHER ACTION UNDER THE PROPOSED REGULATIONS FOR THREE YEARS
(HOWEVER, THEY MUST COMPLY WITH THE ADMINISTRATIVE PROVISIONS OF
151.12 AND A YEARLY MAINTENANCE FEE WILL BECOME APPLICABLE ON
THE FIRST ANNIVERSARY OF THESE REGULATIONS).
PROPOSED PARAGRAPH (O) PERTAINS TO ACCREDITATION
REACCREDITATION FEES AND PROVIDES THAT REASONABLE, VARIABLE FEES
WILL BE IMPOSED TO COVER THE COST OF ACCREDITATION
REACCREDITATION. PARAGRAPH (O) FURTHER PROVIDES THAT THESE FEES
WILL BE ADJUSTED EACH FISCAL YEAR BASED ON AN AGENCY REPORT
ENTITLED "CUSTOMS LABORATORY ACCREDITATION PROGRAM: ESTIMATED
COSTS FEE STRUCTURE." ESTIMATED FEES FOR THE FIRST YEAR ARE AS
DISCUSSED ABOVE.
PROPOSED PARAGRAPH(P) IS IDENTICAL TO CURRENT
151.13(M) EXCEPT THAT IT ONLY PERTAINS TO CUSTOMS- ACCREDITED
COMMERCIAL LABORATORIES.
IT IS FURTHER PROPOSED TO AMEND THE PROVISIONS OF
151.13, WHICH CURRENTLY CONTAINS PROVISIONS PERTAINING TO BOTH
COMMERCIAL GAUGERS AND LABORATORIES, TO MAKE ITS PROVISIONS
EXCLUSIVE TO COMMERCIAL GAUGERS. SECTION 151.13 WILL CONTAIN 14
PARAGRAPHS ((A) THROUGH (N)).
PROPOSED AMENDED SECTION 151.13
PROPOSED PARAGRAPH (A) CONTAINS DEFINITIONS OF TWO
TERMS AND PHRASES CURRENTLY SET FORTH IN THE INTRODUCTORY TEXT OF
151.13 THAT ARE USED THROUGHOUT THE REMAINING PARAGRAPHS OF
151.13.
PROPOSED PARAGRAPH (B) CONCERNS PROVISIONS CURRENTLY FOUND
AT 151.13(A)(1) REGARDING CUSTOMS ACCEPTANCE OF REPORTS FROM
CUSTOMS-APPROVED GAUGERS CONCERNING CERTAIN ENUMERATED PRODUCTS.
PROVISION IS MADE TO EXPAND THE COMMODITY LIST WHERE THE
REQUESTOR CAN DEMONSTRATE THAT A SUBSTANTIAL MARKET FOR THE
GAUGING SERVICES EXISTS.
PROPOSED PARAGRAPH (C) SETS FORTH NINE REQUIREMENTS INVOLVED
IN THE APPROVAL APPLICATION PROCESS, WHICH ARE SUBSTANTIALLY
SIMILAR TO THOSE CURRENTLY FOUND AT
151.13(B), INCLUDING THE TEXT OF THE COMMERCIAL GAUGER
AGREEMENT, WHICH IS IDENTICAL TO THE AGREEMENT TEXT PREVIOUSLY
PUBLISHED WITH ONE EXCEPTION. A NEW NOTIFICATION REQUIREMENT IS
INCLUDED TO COMPORT WITH THE TEN YEAR RECORD RETENTION PROVISIONS
OF PROPOSED PARAGRAPH (H) OF THIS SECTION.
PROPOSED PARAGRAPH (D) PERTAINS TO DETERMINATIONS OF
COMPETENCE AND IS OSTENSIBLY THE SAME AS THE PROVISIONS CURRENTLY
FOUND AT 151.13(D).
PROPOSED PARAGRAPH (E) CONCERNS NOTICE OF APPROVAL OR
DISAPPROVAL OF APPLICATIONS AND IS SIMILAR TO THE APPROVAL AND
DISAPPROVAL PROVISIONS OF 151.13(F), BUT DOES NOT INCLUDE
NOTICE OF SUSPENSION OR REVOCATION--THESE NOTICE PROVISIONS WILL
BE CONTAINED IN PROPOSED PARAGRAPH (J)(2) OF THIS SECTION.
PROPOSED PARAGRAPH (F) PERTAINS TO TECHNICAL AND OPERATIONAL
REQUIREMENTS AND IS OSTENSIBLY THE SAME AS THE PROVISIONS
CURRENTLY FOUND AT 151.13(G).
PROPOSED PARAGRAPH (G) PERTAINS TO SPECIFIC PROCEDURES AND
IS IDENTICAL TO THE PROVISIONS CURRENTLY FOUND AT
151.13(H) EXCEPT THAT IT ONLY APPLIES TO COMMERCIAL GAUGERS.
PROPOSED PARAGRAPH (H) PERTAINS TO THE INCREASED
RECORDKEEPING REQUIREMENTS, BUT IN OTHER RESPECTS IS SIMILAR TO
THE PROVISIONS CURRENTLY FOUND AT 151.13(I); HOWEVER, IT ONLY
PERTAINS TO COMMERCIAL GAUGERS AND A PROVISION FOR ELECTRONIC
RECORDS HAS BEEN ADDED.
PROPOSED PARAGRAPH (I) PROVIDES FOR LIMITED REPRESENTATIONS
BY CUSTOMS-APPROVED GAUGERS REGARDING THEIR APPROVAL STATUS.
PROPOSED PARAGRAPH (J) PERTAINS TO SUSPENSION AND REVOCATION
OF APPROVAL AND IS SIMILAR TO THE SUSPENSION AND REVOCATION
PROVISIONS OF CURRENT 151.13(K).
PROPOSED PARAGRAPH (K) PERTAINS TO PENALTIES FOR FAILURE TO
ADHERE TO ANY OF THE PROVISIONS OF THIS PART AND PROVIDE THAT
PENALTIES MAY NOT EXCEED $ 100,000 PER VIOLATION AND SHALL BE
CONSISTENT WITH THE SERIOUSNESS OF THE VIOLATION.
PROPOSED PARAGRAPH (L) PERTAINS TO GRANDFATHER RIGHTS FOR
GAUGERS ALREADY APPROVED AND PROVIDES THAT GAUGERS HAVING CUSTOMS
APPROVAL ON JANUARY 1, 1994, NEED NOT TAKE ANY FURTHER ACTION
UNDER THE PROPOSED REGULATIONS FOR THREE YEARS (HOWEVER, THEY
MUST COMPLY WITH THE ADMINISTRATIVE PROVISIONS OF 151.13 AND A
YEARLY MAINTENANCE FEE WILL BECOME APPLICABLE ON THE FIRST
ANNIVERSARY OF THESE REGULATIONS).
PROPOSED PARAGRAPH (M) PERTAINS TO APPROVAL REAPPROVAL FEES
AND PROVIDES THAT REASONABLE, VARIABLE FEES WILL BE IMPOSED TO
COVER THE COST OF APPROVAL REAPPROVAL. PARAGRAPH (M) FURTHER
PROVIDES THAT THESE FEES WILL BE ADJUSTED EACH FISCAL YEAR BASED
ON AN AGENCY REPORT ENTITLED "CUSTOMS GAUGER APPROVAL PROGRAM:
ESTIMATED COSTS FEE STRUCTURE." ESTIMATED FEES FOR THE FIRST
YEAR ARE AS DISCUSSED ABOVE.
PROPOSED PARAGRAPH (N) IS IDENTICAL TO CURRENT
151.13(M) EXCEPT THAT IT ONLY PERTAINS TO CUSTOMS-APPROVED
COMMERCIAL GAUGERS.
COMMENTS
BEFORE ADOPTING THESE PROPOSED REGULATIONS 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), 1.4 OF THE TREASURY DEPARTMENT REGULATIONS
(31 CFR 1.4), AND 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, FRANKLIN COURT, 1099 14TH ST.,
NW, 4TH FLOOR, WASHINGTON, DC.

THE REGULATORY FLEXIBILITY ACT, AND
EXECUTIVE ORDER 12866
ALTHOUGH THE NUMBER OF ACCREDITED LABORATORIES AND APPROVED
GAUGERS IS EXPECTED TO BE SMALL, BECAUSE SUCH ACCREDITATION AND
APPROVAL WILL CONFER A BENEFIT ON THE PUBLIC, PURSUANT TO THE
PROVISIONS OF THE REGULATORY FLEXIBILITY ACT (5 U.S.C. 601 ET
SEQ.), IT IS CERTIFIED THAT, IF ADOPTED, THE PROPOSED AMENDMENTS
WILL NOT HAVE A SIGNIFICANT ADVERSE ECONOMIC IMPACT ON A
SUBSTANTIAL NUMBER OF SMALL ENTITIES. ACCORDINGLY, THEY ARE NOT
SUBJECT TO THEREGULATORY ANALYSIS OR OTHER REQUIREMENTS OF 5
U.S.C. 603 AND 604. THIS DOCUMENT DOES NOT MEET THE CRITERIA FOR
A "SIGNIFICANT REGULATORY ACTION" AS SPECIFIED IN E.O. 12866.
PAPERWORK REDUCTION ACT
THE COLLECTION OF INFORMATION REQUIREMENTS CONTAINED IN THIS
NOTICE OF PROPOSED RULEMAKING HAVE BEEN SUBMITTED TO THE OFFICE
OF MANAGEMENT AND BUDGET (OMB) FOR REVIEW IN ACCORDANCE WITH THE
PAPERWORK REDUCTION ACT OF 1980 (44 U.S.C. 3504(H)). COMMENTS ON
THE COLLECTION OF INFORMATION SHOULD BE SENT TO THE OFFICE OF
MANAGEMENT AND BUDGET, ATTENTION: DESK OFFICER FOR THE
DEPARTMENT OF THE TREASURY, OFFICE OF INFORMATION AND REGULATORY
AFFAIRS, WASHINGTON, D.C. 20503. A COPY SHOULD ALSO BE SENT TO
CUSTOMS AT THE ADDRESS SET FORTH PREVIOUSLY.
THE COLLECTION OF INFORMATION IN THESE PROPOSED REGULATIONS
IS IN 15 1.12(D) AND 151.13(C). THIS INFORMATION CONFORMS TO
REQUIREMENTS IN 19 U.S.C. 1499(B)(1) AND (5), AS AMENDED BY
SECTION 613 OF THE NORTH AMERICAN FREE TRADE AGREEMENT
IMPLEMENTATION ACT, AND IS USED BY CUSTOMS TO DETERMINE THE
CONDITIONS (1) REQUIRED FOR LABORATORIES GAUGERS TO RECEIVE AND
MAINTAIN ACCREDITATION APPROVAL, AND (2) REGARDING THE
SUSPENSION AND REVOCATION OF SUCH ACCREDITATION APPROVAL. THE
LIKELY RESPONDENTS ARE INDIVIDUALS AND COMMERCIAL ORGANIZATIONS
WHO EITHER ANALYZE MERCHANDISE OR MEASURE, GAUGE, OR SAMPLE
MERCHANDISE.ESTIMATED TOTAL ANNUAL REPORTING AND OR RECORDKEEPING
BURDEN: HOURS.
ESTIMATED AVERAGE ANNUAL BURDEN PER RESPONDENT
RECORDKEEPER: HOURS.
ESTIMATED NUMBER OR RESPONDENTS AND OR RECORDKEEPERS:
.
ESTIMATED ANNUAL FREQUENCY OF RESPONSES: .
PART 178 OF THE CUSTOMS REGULATIONS (19 CFR PART 178), WHICH
LISTS THE INFORMATION COLLECTIONS CONTAINED IN THE REGULATIONS
AND CONTROL NUMBERS ASSIGNED BY OMB, WOULD BE AMENDED ACCORDINGLY
IF THIS PROPOSAL IS ADOPTED.
DRAFTING INFORMATION
THE PRINCIPAL AUTHOR OF THIS DOCUMENT WAS GREGORY R.
VILDERS, OFFICE OF REGULATIONS AND RULINGS, REGULATIONS BRANCH;
HOWEVER, PERSONNEL FROM OTHER OFFICES PARTICIPATED IN ITS
DEVELOPMENT.
LIST OF SUBJECTS
19 CFR PART 113
AIR CARRIERS, BONDS, CUSTOMS DUTIES AND INSPECTION, EXPORTS,
FOREIGN COMMERCE AND TRADE STATISTICS, FREIGHT, IMPORTS,
REPORTING AND RECORDKEEPING REQUIREMENTS, VESSELS.

19 CFR PART 151
CUSTOMS DUTIES AND INSPECTION, EXAMINATION, FEES ASSESSMENT,
IMPORTS, LABORATORIES, PENALTIES, REPORTING AND RECORDKEEPING
REQUIREMENTS, SAMPLING AND TESTING.AMENDMENTS TO THE REGULATIONS
FOR THE REASONS STATED ABOVE, PARTS 113 AND 151 OF THE
CUSTOMS REGULATIONS (19 CFR PARTS 113 AND 151) ARE AMENDED AS SET
FORTH BELOW:
PART 113 - CUSTOMS BONDS
1. THE GENERAL AUTHORITY CITATION FOR PART 113 CONTINUES
TO READ AS FOLLOWS:
AUTHORITY: 19 U.S.C. 66, 1623, 1624;

2. IT IS PROPOSED TO AMEND PARAGRAPH (A)(1)(II) OF
113.67 BY REMOVING THE CITATION " 151.13(B)(9)" AND ADDING, IN
ITS PLACE, THE CITATION " 151.13(C)(8)", AND BY REMOVING THE
CITATION " 151.13 AND 151.14" AND ADDING, IN ITS PLACE, THE
CITATION " 151.13".
3. IT IS PROPOSED TO AMEND PARAGRAPH (B)(1)(II) OF
113.67 BY REMOVING THE CITATION " 151.13(B)(9)" AND ADDING, IN
ITS PLACE, THE CITATION " 151.12(D)(9)", AND BY REMOVING THE
CITATION " 151.13" AND ADDING, IN ITS PLACE, THE CITATION "
151.12".
PART 151 - EXAMINATION, SAMPLING,
AND TESTING OF MERCHANDISE
1. THE GENERAL AUTHORITY CITATION FOR PART 151 IS REVISED,
IN PART, TO READ AS FOLLOWS:
AUTHORITY: 19 U.S.C. 66, 1202 (GENERAL NOTES 17 AND 18,
HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTSUS)), 1624.
SUBPART A ALSO ISSUED UNDER 19 U.S.C. 1499.
2. IT IS PROPOSED TO AMEND 151.12 TO READ AS FOLLOWS:
151.12 ACCREDITATION OF COMMERCIAL LABORATORIES.
(A) DEFINITIONS. FOR PURPOSES OF THIS SECTION, THE
FOLLOWING WORDS AND PHRASES HAVE THE MEANINGS INDICATED:
(1) AN "ANALYSIS RECORD" IS A COMPILATION OF ALL
DOCUMENTS WHICH HAVE BEEN GENERATED DURING THE COURSE OF ANALYSIS
OF A PARTICULAR SAMPLE WHICH, UNDER NORMAL CIRCUMSTANCES,
CULMINATES IN THE ISSUANCE OF A LABORATORY REPORT. THE ANALYSIS
RECORD MAY CONTAIN, BOTH IN PAPER AND ELECTRONIC FORM,
WORKSHEETS, NOTES, ASSOCIATED SPECTRA (BOTH SPECTRA OF THE ACTUAL
PRODUCT AND ANY STANDARD SPECTRA USED FOR COMPARISON),
PHOTOGRAPHS AND MICROPHOTOGRAPHS, THE LABORATORY REPORT, ETC.
(2) "CHECK SAMPLES" ARE SAMPLES WHICH HAVE BEEN
DISTRIBUTED BY CUSTOMS TO ACCREDITED LABORATORIES TO TEST THEIR
PROFICIENCY IN A CERTAIN AREA OF ACCREDITATION.
(3) "COMMERCIAL LABORATORIES" ARE INDIVIDUALS AND
COMMERCIAL ORGANIZATIONS WHO ANALYZE MERCHANDISE, I.E., DETERMINE
ITS COMPOSITION AND OR CHARACTERISTICS THROUGH LABORATORY
ANALYSIS.
(4) A "COMMODITY GROUP BROCHURE" IS A BOOKLET WHICH
CONTAINS A LISTING OF LABORATORY METHODS AND APPLICATION
PROCEDURES WHICH COMMERCIAL LABORATORIES ARE REQUIRED TO KNOW TO
QUALIFY FOR CUSTOMS-ACCREDITATION IN A PARTICULAR COMMODITY
GROUP. IT IS AVAILABLE FROM THE U.S. CUSTOMS SERVICE, ATTENTION:

DIRECTOR OF LABORATORIES AND SCIENTIFIC SERVICES, WASHINGTON,
D.C. 20229. THE LISTINGS MAY INCLUDE BOTH INDUSTRY STANDARDS,
E.G., AMERICAN SOCIETY FOR TESTING AND MATERIALS (ASTM) OR
AMERICAN PETROLEUM INSTITUTE (API), AND CUSTOMS LABORATORY
METHODS, SOME OF WHICH MAY NOT BE INDUSTRY STANDARD METHODS.
(5) A "CUSTOMS-ACCREDITED LABORATORY" IS A COMMERCIAL
LABORATORY WHICH HAS DEMONSTRATED, TO THE SATISFACTION OF THE
DIRECTOR, OFFICE OF LABORATORIES AND SCIENTIFIC SERVICES, THE
CAPABILITY TO PERFORM THE METHODS OF ANALYSIS REQUIRED FOR AT
LEAST ONE COMMODITY GROUP (OR SUB-GROUP WITHIN A COMMODITY GROUP)
LISTED IN THIS SECTION.
(B) ACCEPTANCE OF REPORTS. CUSTOMS SHALL ACCEPT FROM
CUSTOMS-ACCREDITED LABORATORIES ANALYSIS REPORTS WHICH PROVIDE
DATA REQUIRED FOR SPECIFIC CUSTOMS PURPOSES. THE DATA MUST BE
OBTAINED USING METHODS APPROVED BY THE DIRECTOR, OFFICE OF
LABORATORIES AND SCIENTIFIC SERVICES (SEE PARAGRAPH (I)(1) OF
THIS SECTION). THESE METHODS CONSIST OF BOTH INDUSTRY STANDARD
TEST METHODS AND CUSTOMS LABORATORY METHODS. WHILE CUSTOMS
LABORATORY METHODS MAY BE OBTAINED THROUGH THE DIRECTOR, OFFICE
OF LABORATORIES AND SCIENTIFIC SERVICES, METHODS PUBLISHED BY
ORGANIZATIONS SUCH AS THE AMERICAN SOCIETY FOR TESTING AND
MATERIALS (ASTM), THE AMERICAN PETROLEUM INSTITUTE (API), AND
SIMILAR ORGANIZATIONS ARE NOT AVAILABLE THROUGH U.S. CUSTOMS. IN
CASES WHERE NEITHER A PUBLISHED COMMERCIAL METHOD NOR CUSTOMS
LABORATORY METHOD IS INDICATED, THE CUSTOMS- ACCREDITED
LABORATORY SHALL USE A METHOD OF ANALYSIS WHICH HAS BEEN APPROVED
FOR USE IN CUSTOMS-RELATED TRANSACTIONS BY THE DIRECTOR, OFFICE
OF LABORATORIES AND SCIENTIFIC SERVICES. NOTHING IN THESE
REGULATIONS SHALL PRECLUDE CUSTOMS FROM SAMPLING AND TESTING
MERCHANDISE FROM A SHIPMENT WHICH HAS BEEN SAMPLED AT THE REQUEST
OF AN IMPORTER AND TESTED BY A CUSTOMS-ACCREDITED LABORATORY. IN
CASES WHERE A SHIPMENT HAS BEEN ANALYZED BY BOTH CUSTOMS AND A
CUSTOMS-ACCREDITED LABORATORY, ALL CUSTOMS ACTIONS WILL BE BASED
UPON THE ANALYSIS PROVIDED BY THE CUSTOMS LABORATORY UNLESS THE
DIRECTOR, OFFICE OF LABORATORIES AND SCIENTIFIC SERVICES, ADVISES
OTHER ACTIONS.
(C) ACCREDITATION. (1) COMMERCIAL LABORATORIES MAY APPLY
FOR ACCREDITATION TO PERFORM ALL OR CERTAIN TESTS FOR ANY OF THE
COMMODITY GROUPS LISTED IN PARAGRAPH (C)(2) OF THIS SECTION.
TEST PROCEDURES ARE LISTED IN COMMODITY GROUP BROCHURES AVAILABLE
FROM CUSTOMS (SEE PARAGRAPH (A)(4) OF THIS SECTION). APPLICATION
MAY BE MADE FOR ACCREDITATION IN MORE THAN ONE COMMODITY GROUP.
AT THE DISCRETION OF THE DIRECTOR, OFFICE OF LABORATORIES AND
SCIENTIFIC SERVICES, ACCREDITATION MAY BE GRANTED FOR SUBGROUPS
OF TESTS WITHIN A COMMODITY GROUP OR FOR COMMODITY GROUPS NOT
SPECIFICALLY ENUMERATED. ONCE ACCREDITED, A CUSTOMS-ACCREDITED
LABORATORY MAY APPLY TO ADD ADDITIONAL TESTS WITHIN A GROUP OR
OTHER COMMODITY GROUPS.
(2) THE COMMODITY GROUPS FOR WHICH ACCREDITATION MAY
BE SOUGHT WITHOUT SPECIAL PERMISSION FROM THE DIRECTOR, OFFICE OF
LABORATORIES AND SCIENTIFIC SERVICES, ARE:
(I) TEXTILES AND RELATED PRODUCTS, INCLUDING
FOOTWEAR AND HATS (HTSUS SECTIONS XI AND
XII);
(II) METALS AND ALLOYS (HTSUS SECTION XV);
(III) BUILDING STONE, CERAMICS, GLASSWARE AND
OTHER MINERAL SUBSTANCES (HTSUS CHAPTER 25
AND SECTION XIII);
(IV) LEATHER (HTSUS CHAPTERS 41 AND 42);
(V) PAPER AND PAPER PRODUCTS (HTSUS SECTION X);
(VI) WOOD AND WOOD PRODUCTS (HTSUS CHAPTERS 44 AND
46);
(VII)SUGAR, SUGAR SYRUPS AND CONFECTIONERY (HTSUS
CHAPTER 17);
(VIII) BOTANICAL IDENTIFICATION (HTSUS CHAPTER 14
AND SECTION IX);
(IX) FOOD AND FOOD PRODUCTS (HTSUS CHAPTERS 7-12,
15, 16, AND 19-21);
(X) DAIRY AND CHOCOLATE PRODUCTS (HTSUS CHAPTERS
4, 18, AND 21);
(XI) INORGANIC MATERIALS, INCLUDING INORGANIC
COMPOUNDS AND ORES (HTSUS CHAPTERS 26, 28, 31, AND 36-38);
(XII) ORGANIC MATERIALS, INCLUDING INTERMEDIATES
AND PHARMACEUTICALS (HTSUS CHAPTERS 29, 30, 34, 35, AND 38);
(XIII) SPIRITUOUS BEVERAGES (HTSUS CHAPTER 22);
(XIV) ESSENTIAL OILS AND PERFUMES (HTSUS CHAPTER
33);
(XV) RUBBER, PLASTICS, POLYMERS, PIGMENTS AND
PAINTS (HTSUS CHAPTER 32 AND SECTION VII); AND,
(XVI) PETROLEUM AND PETROLEUM PRODUCTS (HTSUS
CHAPTERS 27 AND 29).
(D) APPLICATION FOR CUSTOMS ACCREDITATION. COMMERCIAL
LABORATORIES SEEKING ACCREDITATION SHALL SEND A LETTER OF
APPLICATION TO THE U.S. CUSTOMS SERVICE, ATTENTION: DIRECTOR,
OFFICE OF LABORATORIES AND SCIENTIFIC SERVICES, WASHINGTON, DC
20229. APPLICATIONS SHALL INCLUDE:
(1) THE APPLICANT'S LEGAL NAME AND THE ADDRESSES OF
THE PRINCIPAL PLACE OF BUSINESS AND ANY OTHER FACILITIES;
(2) DETAILED STATEMENTS OF OWNERSHIP AND ANY
PARTNERSHIPS, PARENT-SUBSIDIARY RELATIONSHIPS, OR AFFILIATIONS
WITH ANY OTHER DOMESTIC OR FOREIGN ORGANIZATIONS, INCLUDING, BUT
NOT LIMITED TO, IMPORTERS; OTHER COMMERCIAL LABORATORIES;
PRODUCERS; REFINERS; CUSTOMS BROKERS; CARRIERS; ETC.;
(3) A STATEMENT OF FINANCIAL CONDITION;
(4) IF A CORPORATION, A COPY OF THE ARTICLES OF
INCORPORATION AND THE NAMES OF ALL OFFICERS AND DIRECTORS;
(5) THE NAMES, TITLES, AND QUALIFICATIONS OF EACH
PERSON WHO WILL BE AUTHORIZED TO SIGN OR APPROVE ANALYSIS REPORTS
ON BEHALF OF THE COMMERCIAL LABORATORY;
(6) A COMPLETE DESCRIPTION OF THE APPLICANT'S
FACILITIES, INSTRUMENTS, AND EQUIPMENT;
(7) A BOND EXECUTED IN ACCORDANCE WITH PART 113,
CUSTOMS REGULATIONS (19 CFR 113). THE BOND NEED NOT BE OBTAINED
UNTIL THE FINAL STAGES OF THE APPLICATION REVIEW PROCESS. THE
APPLICANT WILL BE NOTIFIED BY CUSTOMS AT THE APPROPRIATE TIME TO
SUBMIT THE BOND TO THE CUSTOMS DISTRICT IN WHICH THE APPLICANT'S
MAIN OFFICE IS LOCATED. LIMITS OF LIABILITY ON THE BOND WILL BE
ESTABLISHED BY THE CUSTOMS DISTRICT IN CONSULTATION WITH THE
DIRECTOR, OFFICE OF LABORATORIES AND SCIENTIFIC SERVICES. IN
ORDER TO RETAIN CUSTOMS ACCREDITATION, THE LABORATORY MUST
MAINTAIN ITS BOND, AND IF NECESSARY, UPGRADE IT IF REQUESTED TO
DO SO BY THE CUSTOMS DISTRICT;
(8) A STATEMENT FOR EACH COMMODITY GROUP FOR WHICH
ACCREDITATION IS BEING SOUGHT, INCLUDING:
(I) THAT ALL TESTS ON ALL COMMODITIES IN A NAMED
GROUP CAN BE PERFORMED, OR
(II) THAT ALL TESTS ON THE COMMODITIES IN A GROUP
EXCEPT THOSE INDICATED CAN BE PERFORMED;
(III) THAT THE LISTED PROCEDURES WHICH ARE NOT
SPECIFICALLY PROVIDED FOR IN THE COMMODITY GROUP BROCHURE ARE
BEING SUBMITTED FOR APPROVAL FOR USE;
(9) A NONREFUNDABLE PAYMENT TO COVER 50 PERCENT OF THE
GENERAL ACCREDITATION FEE; AND,
(10) A WRITTEN AGREEMENT IN THE FOLLOWING FORM TO AVOID
CONFLICT-OF-INTEREST SITUATIONS AND TO COMPLY WITH REQUIREMENTS
PRESCRIBED BY CUSTOMS:
COMMERCIAL LABORATORY AGREEMENT
AS CONDITIONS FOR ACCREDITATION, I AGREE:
TO HAVE NO INTEREST OR OTHER CONNECTION WITH ANY
BUSINESS OR OTHER ACTIVITY WHICH MIGHT AFFECT THE UNBIASED
PERFORMANCE OF MY DUTIES AS A CUSTOMS-ACCREDITED LABORATORY. I
UNDERSTAND THAT THIS DOES NOT PROHIBIT MY ACCEPTANCE OF THE USUAL
FEES FOR PROFESSIONAL SERVICES.
TO COMPLY WITH THE REQUIREMENTS OF PART 151, CUSTOMS
REGULATIONS (19 CFR PART 151), AND TO CONDUCT MY PROFESSIONAL
SERVICES IN CONFORMANCE WITH APPROVED STANDARDS AND PROCEDURES,
INCLUDING PROCEDURES WHICH MAY BE REQUIRED BY THE COMMISSIONER OF
CUSTOMS OR THE DIRECTOR, OFFICE OF LABORATORIES AND SCIENTIFIC
SERVICES.
TO MAINTAIN THE ABILITY, I.E., THE INSTRUMENTATION,
EQUIPMENT, QUALIFIED STAFF, FACILITIES, ETC., TO PERFORM THE
SERVICES FOR WHICH I AM ACCREDITED AND ALLOW MY PERFORMANCE TO BE
EVALUATED BY THE DIRECTOR, OFFICE OF LABORATORIES AND SCIENTIFIC
SERVICES, ON A PERIODIC BASIS BY SUCH MEANS AS ON-SITE
INSPECTIONS, DEMONSTRATIONS OF ANALYSIS PROCEDURES, REVIEWS OF
SUBMITTED RECORDS, AND PROFICIENCY TESTING THROUGH CHECK SAMPLES.
TO IMMEDIATELY NOTIFY BOTH THE DISTRICT DIRECTOR AND THE
DIRECTOR, OFFICE OF LABORATORIES AND SCIENTIFIC SERVICES, OF ANY
ATTEMPT TO IMPEDE, INFLUENCE, OR COERCE ME IN THE PERFORMANCE OF
MY DUTIES.
TO PROMPTLY INVESTIGATE ANY CIRCUMSTANCES WHICH MIGHT
AFFECT THE ACCURACY OF MY WORK; TO CORRECT THE SITUATION
IMMEDIATELY AND TO NOTIFY BOTH THE DISTRICT DIRECTOR AND THE
DIRECTOR, OFFICE OF LABORATORIES AND SCIENTIFIC SERVICES, OF SUCH
MATTERS, THEIR CONSEQUENCES, AND ANY CORRECTIVE ACTIONS TAKEN OR
TO BE TAKEN.
TO NOTIFY THE DIRECTOR, OFFICE OF LABORATORIES AND
SCIENTIFIC SERVICES, BY CERTIFIED MAIL WITHIN 5 DAYS OF ANY MAJOR
CHANGES INVOLVING LEGAL NAME; ADDRESS; OWNERSHIP;
PARENT-SUBSIDIARY RELATIONSHIPS; BOND; OTHER OFFICES OR SITES;
MANAGERIAL, PROFESSIONAL, OR EXECUTIVE STAFF; APPROVED
SIGNATORIES; FACILITIES, INSTRUMENTS, OR EQUIPMENT; ETC.
TO NOTIFY THE DIRECTOR, OFFICE OF LABORATORIES AND
SCIENTIFIC SERVICES, IMMEDIATELY OF ANY DECISION TO TERMINATE A
LABORATORY OPERATION TO ENSURE THAT THE REQUIRED RECORDS ARE
AVAILABLE TO CUSTOMS FOR THE TEN-YEAR RETENTION PERIOD.
(E) ACCREDITATION PROCESS. THE APPLICANT WILL BE REVIEWED
FOR ACCREDITATION OF ITS OVERALL PHYSICAL PLANT AND MANAGEMENT
SYSTEM AND WILL UNDERGO SEPARATE REVIEW AND TESTING FOR EACH
COMMODITY GROUP FOR WHICH IT HAS APPLIED.
(1) THE OVERALL LABORATORY ACCREDITATION WILL CONSIST
OF A REVIEW ALONG THE LINES OF THE ASTM E548 STANDARD GUIDE FOR
GENERAL CRITERIA USED FOR EVALUATING LABORATORY COMPETENCE. THIS
REVIEW WILL ASCERTAIN THE LABORATORY'S ABILITY TO MANAGE AND
CONTROL THE ACQUISITION OF TECHNICAL DATA. THIS REVIEW WILL BE
PERFORMED AT THE TIME OF INITIAL APPLICATION AND UPON
REACCREDITATION AT THREE-YEAR INTERVALS.
(2) THE SPECIFIC ACCREDITATION FOR EACH COMMODITY
GROUP FOR WHICH ACCREDITATION IS REQUESTED WILL FOCUS ON THE
LABORATORY'S ABILITY TO PERFORM THE TESTS REQUIRED IN THAT
COMMODITY GROUP. THIS, IN PARTICULAR, WILL INCLUDE THE
QUALIFICATIONS OF THE TECHNICAL PERSONNEL IN THIS FIELD AND THE
INSTRUMENT AVAILABILITY REQUIRED BY THE TEST METHODS.
MAINTENANCE OF ACCREDITATION WILL BE ON-GOING AND WILL REQUIRE
THE SUBMISSION OF TEST RESULTS ON PERIODIC CHECK SAMPLES. THE
CRITERIA FOR ACCEPTANCE WILL BE BASED ON THE LABORATORY'S ABILITY
TO PRODUCE A WORK PRODUCT THAT WILLRESULT IN THE PROPER
CLASSIFICATION OF AND DUTY COLLECTION FOR THE IMPORTED ARTICLE.
(F) DETERMINATION OF COMPETENCE. THE DIRECTOR, OFFICE OF
LABORATORIES AND SCIENTIFIC SERVICES, SHALL DETERMINE THE
APPLICANT'S COMPETENCE, INDEPENDENCE, AND REPUTATION BY USE OF
APPROPRIATE TECHNIQUES, INCLUDING ON-SITE INSPECTIONS AND
BACKGROUND INVESTIGATIONS.
(G) NOTICE OF APPROVAL OR DISAPPROVAL. WHEN CUSTOMS
EVALUATION OF THE APPLICANT IS COMPLETE THE DIRECTOR, OFFICE OF
LABORATORIES AND SCIENTIFIC SERVICES, SHALL GIVE NOTIFICATION TO
THE APPLICANT OF APPROVAL OR DISAPPROVAL. PARTIAL APPROVALS AND
FULL DISAPPROVALS WILL INCLUDE THE REASONS FOR THESE DECISIONS.
FINAL APPROVAL DECISIONS WILL NOT BE MADE UNTIL THE APPLICANT HAS
SATISFIED ALL BOND REQUIREMENTS AND HAS MADE PAYMENT ON ALL
REQUIRED APPLICATION FEES. ALL NOTICES OF APPROVAL, REAPPROVAL
AND THE EXTENSION OF A CUSTOMS-ACCREDITED LABORATORY'S EXISTING
ACCREDITATIONS SHALL BE PUBLISHED IN THE FEDERAL REGISTER AND
CUSTOMS BULLETIN. COMMERCIAL LABORATORIES DISAPPROVED UNDER
THESE PROVISIONS MAY REAPPLY AFTER THREE MONTHS BY SUBMITTING A
NEW APPLICATION IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH
(D) OF THIS SECTION.
(H) SAMPLES FOR TESTING BY CUSTOMS-ACCREDITED LABORATORIES.

UPON REQUEST BY AN IMPORTER OF RECORD OF MERCHANDISE, THE
DISTRICT DIRECTOR WILL RELEASE A REPRESENTATIVE SAMPLE OF THE
MERCHANDISE FOR TESTING BY A CUSTOMS-ACCREDITED LABORATORY AT THE
EXPENSE OF THE IMPORTER. THE SAMPLE SHALL BE TAKEN AND SPLIT
INTO TWO ESSENTIALLY EQUAL PARTS UNDER CUSTOMS SUPERVISION AT THE
PORT OF ENTRY. THE TWO PARTS WILL BE GIVEN TO THE CUSTOMS-
ACCREDITED LABORATORY, AND WHILE ONE PORTION OF THE SAMPLE MAY BE
USED BY THE CUSTOMS-ACCREDITED LABORATORY FOR ITS TESTING, THE
OTHER PORTION SHALL BE RETAINED BY THE LABORATORY, UNDER
APPROPRIATE STORAGE CONDITIONS, FOR CUSTOMS USE, AS NECESSARY,
UNLESS CUSTOMS REQUIRES OTHER SPECIFIC PROCEDURES. UPON REQUEST
BY THE CUSTOMS SERVICE, THE SAMPLE PORTION RESERVED FOR CUSTOMS
PURPOSES SHALL BE SURRENDERED TO CUSTOMS. SAMPLES RESERVED FOR
CUSTOMS AND SAMPLE REMNANTS FROM ANY TESTING SHALL BE RETAINED BY
THE ACCREDITED LABORATORY FOR A PERIOD OF ONE YEAR FROM THE DATE
OF THE LABORATORY'S FINAL ANALYSIS REPORT, UNLESS OTHER
INSTRUCTIONS ARE ISSUED IN WRITING BY CUSTOMS. AT THE END OF ONE
YEAR AND IN THE ABSENCE OF SPECIFIC INSTRUCTIONS TO THE CONTRARY,
THE ACCREDITED LABORATORY MAY DISPOSE OF SAMPLES RESERVED FOR
CUSTOMS IN A MANNER CONSISTENT WITH FEDERAL, STATE, AND LOCAL
STATUTES. THE ACCREDITED LABORATORY MAY, IN THE ABSENCE OF
SPECIFIC INSTRUCTIONS TO THE CONTRARY, DISPOSE OF PERISHABLE
SAMPLES MORE EXPEDITIOUSLY, IF DOING SO IS IN LINE WITH NORMAL
LABORATORY PROCEDURES.
(I) TECHNICAL AND OPERATIONAL REQUI