80 FR 40079 - National Customs Automation Program (NCAP) Concerning Remote Location Filing Entry Procedures in the Automated Commercial Environment (ACE) and the Use of the Document Image System for the Submission of Invoices and the Use of eBonds for the Transmission of Single Transaction Bonds

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

Federal Register Volume 80, Issue 133 (July 13, 2015)

This document announces U.S. Customs and Border Protection's (CBP's) plan to conduct a National Customs Automation Program (NCAP) test concerning entries filed using remote location (RLF) filing procedures. The test expands the entry types eligible for RLF procedures and the port locations where RLF entries may be filed; requires the electronic transmission of invoices using the Document Image System (DIS); and requires that single transaction bonds be transmitted using eBond for RLF entries requiring a single transaction bond. This test applies only to entries ``certified for cargo release from summary'' filed through the Automated Commercial Environment (ACE). Remote location filing is a special entry procedure which allows importers of record and brokers with a national permit to file an entry electronically from a remote location other than where the goods are being entered. This test is in furtherance of key CBP modernization initiatives and the development of ACE. CBP is transitioning all entry types to ACE from the legacy Automated Commercial System (ACS). This test checks the viability, reliability and functionality associated with filing invoices using DIS; submitting single transaction bonds using eBond for RLF entries submitted in ACE; and expanding the entry types eligible for RLF procedures and port locations. This notice invites public comment concerning the test program; provides legal authority for the test; explains the purpose of the test; provides test participant responsibilities; identifies the regulations that will be waived under the test; provides eligibility criteria for participation in the test; explains the application process; and establishes the duration of the test. This notice also explains the repercussions and appeals process for misconduct under the test.

[Federal Register Volume 80, Number 133 (Monday, July 13, 2015)]
[Notices]
[Pages 40079-40082]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-17041]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


National Customs Automation Program (NCAP) Concerning Remote 
Location Filing Entry Procedures in the Automated Commercial 
Environment (ACE) and the Use of the Document Image System for the 
Submission of Invoices and the Use of eBonds for the Transmission of 
Single Transaction Bonds

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: This document announces U.S. Customs and Border Protection's 
(CBP's) plan to conduct a National Customs Automation Program (NCAP) 
test concerning entries filed using remote location (RLF) filing 
procedures. The test expands the entry types eligible for RLF 
procedures and the port locations where RLF entries may be filed; 
requires the electronic transmission of invoices using the Document 
Image System (DIS); and requires that single transaction bonds be 
transmitted using eBond for RLF entries requiring a single transaction 
bond. This test applies only to entries ``certified for cargo release 
from summary'' filed through the Automated Commercial Environment 
(ACE). Remote location filing is a special entry procedure which allows 
importers of record and brokers with a national permit to file an entry 
electronically from a remote location other than where the goods are 
being entered.
    This test is in furtherance of key CBP modernization initiatives 
and the development of ACE. CBP is transitioning all entry types to ACE 
from the legacy Automated Commercial System (ACS). This test checks the 
viability, reliability and functionality associated with filing 
invoices using DIS; submitting single transaction bonds using eBond for 
RLF entries submitted in ACE; and expanding the entry types eligible 
for RLF procedures and port locations.
    This notice invites public comment concerning the test program; 
provides legal authority for the test; explains the purpose of the 
test; provides test participant responsibilities; identifies the 
regulations that will be waived under the test; provides eligibility 
criteria for participation in the test; explains the application 
process; and establishes the duration of the test. This notice also 
explains the repercussions and appeals process for misconduct under the 
test.

DATES: The initial phase of the RLF test will begin on August 12, 2015. 
This test will continue until concluded by way of an announcement in 
the Federal Register. Comments will be accepted through the duration of 
the test.

ADDRESSES: Comments concerning this notice and any aspect of this test 
may be submitted at any time during the test via email to Josephine 
Baiamonte, ACE Business Office (ABO), Office of International Trade at 
[email protected]. In the subject line of your email, 
please indicate, ``Comment on RLF Test FRN''.

FOR FURTHER INFORMATION CONTACT:  For technical questions related to 
the Automated Commercial Environment (ACE) or Automated Broker 
Interface (ABI) transmissions, contact your assigned client 
representative. Interested parties without an assigned client 
representative should direct their questions to Steven Zaccaro at 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The National Customs Automation Program (NCAP) was established in 
Subtitle B of Title VI--Customs Modernization (Customs Modernization 
Act), in the North American Free Trade Agreement Implementation Act, 
Pub. L. 103-182, 107 Stat. 2057 (19 U.S.C. 1411). Through NCAP, the 
initial thrust of customs modernization was on trade compliance and the 
development of the Automated Commercial Environment (ACE), the planned 
successor to the Automated Commercial System (ACS). The ability to meet 
these objectives depends on successfully modernizing CBP's business 
functions and the information technology that supports those functions. 
CBP's modernization efforts are accomplished through phased releases of 
ACE component functionality designed to introduce a new capacity or to 
replace a specific legacy ACS function. Each release will begin with a 
test and will end with mandatory compliance with the new ACE feature, 
thus retiring the legacy ACS function. Each release builds on previous 
releases and sets the foundation for subsequent releases.
    For the convenience of the public, a chronological listing of 
Federal Register publications detailing ACE test developments is set 
forth below in Section XII, entitled, ``Development of ACE 
Prototypes.'' The procedures and criteria related to participation in 
the prior ACE tests remain in effect unless otherwise explicitly 
changed by this or subsequent notices published in the Federal 
Register.

II. Authorization for the Test

    The Customs Modernization provisions provide the Commissioner of 
CBP with authority to conduct limited test programs or procedures 
designed to evaluate planned components of the NCAP. The test described 
in this notice is authorized pursuant to Sec.  101.9(b) of title 19 of 
the Code of Federal Regulations (19 CFR 101.9(b)), which provides for 
the testing of NCAP programs or procedures. See Treasury Decision 
(T.D.) 95-21.

III. Remote Location Filing (RLF)

    Remote location filing is a planned component of the NCAP, 
authorized by section 411 of the Tariff Act of 1930, as amended by 
section 631 of the Customs Modernization Act. See 19 U.S.C. 
1411(a)(2)(B). After years of testing RLF entry procedures, CBP 
published a final rule in the Federal Register that implemented RLF as 
a special entry procedure. See 74 FR 69015 (December 30, 2009). These 
regulations, codified at 19 CFR part 143, subpart E, authorize 
importers of record and brokers with a national permit to file an entry 
electronically from a remote location other than where the goods are 
being entered. Under CBP regulations, only certain entry types may be 
filed using RLF procedures and these entries must be filed at a RLF-
operational CBP location. A current listing of RLF eligible entry types 
may be found at the following link: http://www.cbp.gov/trade/entry-summary/remote-location-filing/eligibility. A current list of RLF-
operational CBP locations may be found at the following link: http://www.cbp.gov/document/guidance/rlf-operational-location-points-contact.
    At this time, the entry types that may be filed using RLF 
procedures for parties not participating in this test are 01 entries 
(formal consumption entries), 03 entries (formal consumption entries 
subject to antidumping or countervailing duties), and 11 entries 
(informal entries). Interested parties should check the CBP links 
referenced above for changes to the entry types authorized for RLF 
procedures and changes to the RLF operational CBP locations.

[[Page 40080]]

    Under the CBP regulations (19 CFR part 143, subpart E), importers 
and licensed customs brokers with a national permit must be operational 
on (1) the Automated Broker Interface (ABI); an interface that allows 
participants to electronically file required import data with CBP and 
transfers that data into ACE; (2) the Electronic Invoice Program (EIP), 
a module of ABI which allows entry filers to transmit detailed invoice 
data through the Automated Invoice Interface (AII); and (3) the 
Automated Clearing House (ACH) which is a CBP- approved method for the 
electronic payment of duties, fees and taxes. RLF entry filers must be 
operational on ACH at least 30 days prior to filing a RLF entry. 
Additionally, all entries filed using RLF procedures must be secured by 
a continuous bond. The CBP regulations also require that any invoice 
data required or requested by CBP be transmitted electronically using 
EIP, and any payment of duties, fees and taxes be submitted through 
ACH. The CBP regulations prohibit combining the use of RLF procedures 
with the use of line release or immediate entry procedures. RLF filers 
may certify release from summary, i.e., file an entry summary that 
serves as both an entry and an entry summary. RLF filers must file 
electronically (including by facsimile transmissions) all additional 
information required to be presented with an entry and entry summary 
that CBP can accept electronically. If CBP cannot accept the additional 
information electronically, the additional information must be 
presented in paper form at the port of entry.

IV. Request for Participation and Test Participation Criteria

    Any party who wishes to participate in this test should contact 
their assigned client representative and request to participate. 
Interested parties without an assigned client representative should 
direct their questions to Steven Zaccaro at 
[email protected], request the assignment of a client 
representative and submit a request to participate in this test to the 
newly assigned client representative. Any party seeking to participate 
in this test must provide CBP, as part of its request to participate, 
its filer code and the port(s) at which it is interested in filing RLF 
entries.
    In order to participate in this test, an interested party must be a 
participant in the DIS test. Moreover, any party who participates in 
this test and wishes to, or is required to, submit a single transaction 
bond must also participate in the eBond test or use a surety or surety 
agent participating in the eBond test for the submission of the single 
transaction bond. For eligibility requirements for participation in the 
DIS test, see 77 FR 20835 (April 6, 2012); 78 FR 44142 (July 23, 2013); 
78 FR 53466 (August 29, 2013); and 79 FR 36083 (June 23, 2014). For 
eligibility requirements for participation in the eBond test, see 79 FR 
70881 (November 28, 2014) and 80 FR 516 (January 6, 2015).

V. Test Procedures and Participant Responsibilities

    Only entries filed through ACE that are certified for ACE cargo 
release from summary may be submitted under this test. For such ACE 
entries, this test seeks to determine the viability, reliability and 
functionality of: (1) Expanding the entry types eligible for RLF 
procedures and the port locations where RLF entries may be filed; (2) 
submitting invoices using the DIS, instead of EIP, for entries filed 
using RLF entry procedures; and (3) submitting single transaction bonds 
using eBond procedures for entries filed using RLF entry procedures 
that require such a bond.
    Under the RLF ACE test, participants will be allowed to file entry 
types 01, 03, 11, and 52. Test participants should check the following 
link to determine, for purposes of this test, which entry types are 
eligible for RLF procedures and the port locations where RLF entries 
may be filed: http://www.cbp.gov/trade/entry-summary/remote-location-filing. Test participants should also check the link regularly for any 
changes to the list of eligible entry types and port locations. Please 
note that the list of entry types and operational ports eligible for 
RLF procedures under this test is larger than the list of entry types 
and port locations eligible for RLF procedures under the current CBP 
regulations (19 CFR part 143, subpart E). Test participants are 
required to submit invoices, including pro forma invoices, required or 
requested by CBP using the DIS. Test participants may not submit 
invoice data using EIP. Test participants who file a RLF entry that 
requires the filing of a single transaction bond must submit it using 
eBond. The use of eBond for submitting single transaction bonds is 
mandatory and exclusive, and participants may not submit a single 
transaction bond through any other manner for RLF entries filed under 
this test. Test participants are required to follow and abide by all 
terms, conditions and requirements of the DIS and eBond tests.

VI. Waiver of Regulations Under the Test

    For purposes of this test, 19 CFR part 143, subpart E is waived to 
the extent it is inconsistent with the provisions of this test notice.

VII. Test Duration

    The initial phase of the test will begin August 12, 2015 and will 
continue until concluded by way of an announcement in the Federal 
Register. At the conclusion of the test, an evaluation will be 
conducted to assess the viability, reliability and utility of receiving 
invoices and invoice data through DIS and single transaction bonds 
through eBond for entries filed using RLF procedures. The final results 
of the evaluation will be published in the Federal Register and the 
Customs Bulletin as required in 19 CFR 101.9(b)(2). Any modification, 
change or expansion of this test or the DIS or eBond tests will be 
announced via a separate Federal Register notice.

VIII. Comments

    All interested parties are invited to comment on any aspect of this 
test at any time. CBP requests comments and feedback on all aspects of 
this test, including the design, conduct and implementation of the 
test, in order to determine whether to modify, alter, expand, limit, 
continue, end, or fully implement this program.

IX. Paperwork Reduction Act

    The collection of information contained in this test has been 
approved by the Office of Management and Budget (OMB) in accordance 
with the requirements of the Paperwork Reduction Act (44 U.S.C. 3507) 
and assigned OMB number 1651-0024. An agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless it displays a valid control number assigned by OMB.

X. Confidentiality

    All data submitted and entered into ACE is subject to the Trade 
Secrets Act (18 U.S.C. 1905) and is considered confidential, except to 
the extent as otherwise provided by law. As stated in previous notices, 
participation in this or any of the previous ACE tests is not 
confidential and upon a written Freedom of Information Act (FOIA) 
request, a name(s) of an approved participant(s) will be disclosed by 
CBP in accordance with 5 U.S.C. 552.

XI. Misconduct Under the Test

    A test participant may be subject to civil and criminal penalties,

[[Page 40081]]

administrative sanctions, liquidated damages, or discontinuance from 
participation in this test for any of the following:
    (1) Failure to follow the terms and conditions of this test, or the 
DIS and eBond tests;
    (2) Failure to exercise reasonable care in the execution of 
participant obligations;
    (3) Failure to abide by applicable laws and regulations that have 
not been waived; or
    (4) Failure to deposit duties, taxes or fees in a timely manner.
    If the Director, Business Transformation Division, ACE Business 
Office (ABO), Office of International Trade finds that there is a basis 
for discontinuance of test participation privileges, the test 
participant will be provided a written notice proposing the 
discontinuance with a description of the facts or conduct warranting 
the action. The test participant will be offered the opportunity to 
appeal the Director's decision in writing within 10 calendar days of 
receipt of the written notice. The appeal must be submitted to the 
Executive Director, ABO, Office of International Trade by emailing 
[email protected].
    The Executive Director will issue a decision in writing on the 
proposed action within 30 working days after receiving a timely filed 
appeal from the test participant. If no timely appeal is received, the 
proposed notice becomes the final decision of the Agency as of the date 
that the appeal period expires. A proposed discontinuance of a test 
participant's privileges will not take effect unless the appeal process 
under this paragraph has been concluded with a written decision adverse 
to the test participant.
    In the case of willfulness or those in which public health, 
interest, or safety so requires, the Director, Business Transformation 
Division, ABO, Office of International Trade, may immediately 
discontinue the test participant's privileges upon written notice to 
the test participant. The notice will contain a description of the 
facts or conduct warranting the immediate action. The test participant 
will be offered the opportunity to appeal the Director's decision 
within 10 calendar days of receipt of the written notice providing for 
immediate discontinuance. The appeal must be submitted to the Executive 
Director, ABO, Office of International Trade by emailing 
[email protected]. The immediate discontinuance will remain 
in effect during the appeal period. The Executive Director will issue a 
decision in writing on the discontinuance within 15 working days after 
receiving a timely filed appeal from the test participant. If no timely 
appeal is received, the notice becomes the final decision of the Agency 
as of the date that the appeal period expires.

XII. Developments of ACE Prototypes

    A chronological listing of Federal Register publications detailing 
ACE test developments is set forth below.
     ACE Portal Accounts and Subsequent Revision Notices: 67 FR 
21800 (May 1, 2002); 69 FR 5360 and 69 FR 5362 (February 4, 2004); 69 
FR 54302 (September 8, 2004); 70 FR 5199 (February 1, 2005).
     ACE System of Records Notice: 71 FR 3109 (January 19, 
2006).
     Terms/Conditions for Access to the ACE Portal and 
Subsequent Revisions: 72 FR 27632 (May 16, 2007); 73 FR 38464 (July 7, 
2008).
     ACE Non-Portal Accounts and Related Notice: 70 FR 61466 
(October 24, 2005); 71 FR 15756 (March 29, 2006).
     ACE Entry Summary, Accounts and Revenue (ESAR I) 
Capabilities: 72 FR 59105 (October 18, 2007).
     ACE Entry Summary, Accounts and Revenue (ESAR II) 
Capabilities: 73 FR 50337 (August 26, 2008); 74 FR 9826 (March 6, 
2009).
     ACE Entry Summary, Accounts and Revenue (ESAR III) 
Capabilities: 74 FR 69129 (December 30, 2009).
     ACE Entry Summary, Accounts and Revenue (ESAR IV) 
Capabilities: 76 FR 37136 (June 24, 2011).
     Post-Entry Amendment (PEA) Processing Test: 76 FR 37136 
(June 24, 2011).
     ACE Announcement of a New Start Date for the National 
Customs Automation Program Test of Automated Manifest Capabilities for 
Ocean and Rail Carriers: 76 FR 42721 (July 19, 2011).
     ACE Simplified Entry: 76 FR 69755 (November 9, 2011).
     National Customs Automation Program (NCAP) Tests 
Concerning Automated Commercial Environment (ACE) Document Image System 
(DIS): 77 FR 20835 (April 6, 2012).
     National Customs Automation Program (NCAP) Tests 
Concerning Automated Commercial Environment (ACE) Simplified Entry: 
Modification of Participant Selection Criteria and Application Process: 
77 FR 48527 (August 14, 2012).
     Modification of NCAP Test Regarding Reconciliation for 
Filing Certain Post-Importation Preferential Tariff Treatment Claims 
under Certain FTAs: 78 FR 27984 (May 13, 2013).
     Modification of Two National Customs Automation Program 
(NCAP) Tests Concerning Automated Commercial Environment (ACE) Document 
Image System (DIS) and Simplified Entry (SE): 78 FR 44142 (July 23, 
2013).
     Modification of Two National Customs Automation Program 
(NCAP) Tests Concerning Automated Commercial Environment (ACE) Document 
Image System (DIS) and Simplified Entry (SE); Correction: 78 FR 53466 
(August 29, 2013).
     Modification of NCAP Test Concerning Automated Commercial 
Environment (ACE) Cargo Release (formerly known as Simplified Entry): 
78 FR 66039 (November 4, 2013).
     Post-Summary Corrections to Entry Summaries Filed in ACE 
Pursuant to the ESAR IV Test: Modifications and Clarifications: 78 FR 
69434 (November 19, 2013).
     National Customs Automation Program (NCAP) Test Concerning 
the Submission of Certain Data Required by the Environmental Protection 
Agency and the Food Safety and Inspection Service Using the Partner 
Government Agency Message Set Through the Automated Commercial 
Environment (ACE): 78 FR 75931 (December 13, 2013).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning Automated Commercial Environment (ACE) Cargo Release 
for Ocean and Rail Carriers: 79 FR 6210 (February 3, 2014).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning Automated Commercial Environment (ACE) Cargo Release to 
Allow Importers and Brokers to Certify From ACE Entry Summary: 79 FR 
24744 (May 1, 2014).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning Automated Commercial Environment (ACE) Cargo Release 
for Truck Carriers: 79 FR 25142 (May 2, 2014).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning Automated Commercial Environment (ACE) Document Image 
System: 79 FR 36083 (June 25, 2014).
     Announcement of eBond Test: 79 FR 70881 (November 28, 
2014).
     eBond Test Modifications and Clarifications: Continuous 
Bond Executed Prior to or Outside the eBond Test May Be Converted to an 
eBond by the Surety and Principal, Termination of an eBond by Filing 
Identification Number, and Email Address Correction: 80 FR 899 (January 
7, 2015).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning Automated Commercial

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Environment (ACE) Document Image System Relating to Animal and Plant 
Health Inspection Service (APHIS) Document Submissions: 80 FR 5126 
(January 30, 2015).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning the use of Partner Government Agency Message Set 
through the Automated Commercial Environment (ACE) for the Submission 
of Certain Data Required by the Environmental Protection Agency (EPA): 
80 FR 6098 (February 4, 2015).
     Announcement of Modification of ACE Cargo Release Test to 
Permit the Combined Filing of Cargo Release and Importer Security 
Filing (ISF) Data: 80 FR 7487 (February 10, 2015).
     Modification of NCAP Test Concerning ACE Cargo Release for 
Type 03 Entries and Advanced Capabilities for Truck Carriers: 80 FR 
16414 (March 27, 2015).

    Dated: July 8, 2015.
Brenda Smith,
Assistant Commissioner, Office of International Trade.
[FR Doc. 2015-17041 Filed 7-10-15; 8:45 am]
 BILLING CODE 9111-14-P