The United States Mint has implemented
regulations to limit the exportation,
melting, or treatment of one-cent (penny)
and 5-cent (nickel) United States coins, to
safeguard against a potential shortage of
these coins in circulation. The United
States Mint is soliciting public comment on
the interim rule, which is being published
in the
Federal Register.
Prevailing prices of copper, nickel and
zinc have caused the production costs of
pennies and nickels to significantly exceed
their respective face values. The United
States Mint also has received a steady flow
of inquiries from the public over the past
several months concerning the metal value of
these coins and whether it is legal to melt
them.
"We are taking this action because the
Nation needs its coinage for commerce," said
Director Ed Moy. "We don't want to see our
pennies and nickels melted down so a few
individuals can take advantage of the
American taxpayer. Replacing these coins
would be an enormous cost to taxpayers."
Specifically, the new regulations
prohibit, with certain exceptions, the
melting or treatment of all one-cent and
5-cent coins. The regulations also prohibit
the unlicensed exportation of these coins,
except that travelers may take up to $5 in
these coins out of the country, and
individuals may ship up to $100 in these
coins out of the country in any one shipment
for legitimate coinage and numismatic
purposes. In all essential respects, these
regulations are patterned after the
Department of the Treasury's regulations
prohibiting the exportation, melting, or
treatment of silver coins between 1967 and
1969, and the regulations prohibiting the
exportation, melting, or treatment of
one-cent coins between 1974 and 1978.
The new regulations authorize a fine of
not more than $10,000, or imprisonment of
not more than five years, or both, against a
person who knowingly violates the
regulations. In addition, by law, any coins
exported, melted, or treated in violation of
the regulation shall be forfeited to the
United States Government.
The regulations are being issued in the
form of an interim rule, to be effective for
a period of 120 days from the time of
publication. The interim rule states that
during a 30-day period from the date of
publication, the public can submit written
comments to the United States Mint on the
regulations. Upon consideration of such
comments, the Director of the United States
Mint would then issue the final rule.
Those interested in providing comments to
the United States Mint regarding this
interim rule must submit them in writing to
the Office of Chief Counsel, United States
Mint, 801 9th Street, N.W., Washington D.C.
20220, by January 14, 2007. The interim rule
appears on the United States Mint website at
www.usmint.gov. The United States Mint
will make public all comments it receives
regarding this interim rule, and may not
consider confidential any information
contained in comments
