This document amends the Customs Regulations by adopting final rules that implement two Customs Modernization provisions of the North American Free Trade Agreement Implementation Act that seek to streamline the commercial operations of the U.S. Customs Service. One provision concerns raising administrative exemptions from duty, taxes, and fees on articles such as gifts and personal and household goods; the other concerns exemptions from entry [[Page 18984]] requirements for specified merchandise (undeliverable shipments, rail equipment, and instruments of international traffic). Further, the final rules also clarify the entry procedures for shipments by express consignment operators or carriers to make it clear that all such shipments must be entered, unless they are specifically exempted from entry requirements. This document addresses public comments solicited by the interim regulations that were published in the Federal Register on June 13, 1994, and makes certain suggested changes to those interim regulations to add clarity and improve the readability of the final regulations.