83 FR 2645 - Modification of the National Customs Automation Program (NCAP) Test Regarding Reconciliation and Transition of the Test From the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE)

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

Federal Register Volume 83, Issue 12 (January 18, 2018)

Page Range		2645-2646
FR Document		2018-00802

This document announces that certain previously announced modifications to the National Customs Automation Program (NCAP) test regarding reconciliation will become operational, and that the test program will transition from the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE).

Federal Register, Volume 83 Issue 12 (Thursday, January 18, 2018)

[Federal Register Volume 83, Number 12 (Thursday, January 18, 2018)]
[Notices]
[Pages 2645-2646]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00802]


-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Modification of the National Customs Automation Program (NCAP) 
Test Regarding Reconciliation and Transition of the Test From the 
Automated Commercial System (ACS) to the Automated Commercial 
Environment (ACE)

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

ACTION: General notice.

-----------------------------------------------------------------------

SUMMARY: This document announces that certain previously announced 
modifications to the National Customs Automation Program (NCAP) test 
regarding reconciliation will become operational, and that the test 
program will transition from the Automated Commercial System (ACS) to 
the Automated Commercial Environment (ACE).

DATES: As of February 24, 2018, the modifications to the reconciliation 
test will become operational. As of the same date, the test will 
transition into ACE, and ACS will be decommissioned for the filing of 
reconciliation entries.

ADDRESSES: Comments concerning this test program may be submitted via 
email, with a subject line identifier reading, ``Comment on 
Reconciliation test'' to [email protected].

FOR FURTHER INFORMATION CONTACT: Randy Mitchell, Commercial Operations 
and Entry Division, Trade Policy and Programs, Office of Trade at (202) 
863-6532 or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

A. Reconciliation Test Program

    Title VI of the North American Free Trade Agreement (NAFTA) 
Implementation Act (Pub. L. 103-182, 107 Stat. 2057, 2170, December 8, 
1993), commonly known as the Customs Modernization Act or Mod Act, 
amended the Tariff Act of 1930 and related laws, in part, to increase 
voluntary compliance with customs laws and improvements to customs 
enforcement. Subtitle B of Title VI established the National Customs 
Automation Program (NCAP) which is an automated and electronic system 
for processing commercial importations, and includes the testing of 
existing and planned components. (19 U.S.C. 1411). Section 637 of the 
Mod Act amended Section 484 of the Tariff Act of 1930 to establish a 
new section (b), entitled ``Reconciliation'', a planned component of 
the NCAP. (19 U.S.C. 1484(b), 19 U.S.C. 1411(a)(2)(C)).
    Reconciliation is the process that allows an importer, at the time 
an entry summary is filed, to identify indeterminable information 
(other than that affecting admissibility) to U.S. Customs and Border 
Protection (CBP) and to provide that outstanding information at a later 
date. The importer identifies the outstanding information by means of 
an electronic ``flag'' which is placed on the entry summary at the time 
the entry summary is filed and payment (applicable duty, taxes, and 
fees) is made.
    Section 101.9(b) of Title 19 of the Code of Federal Regulations (19 
CFR 101.9(b)) provides for the testing of NCAP components. See T.D. 95-
21, 60 FR 14211 (March 16, 1995). The reconciliation test was 
established pursuant to this regulation, and is currently being tested 
in the Automated Commercial System (ACS). CBP announced and explained 
the test in a general notice published in the Federal Register (63 FR 
6257) on February 6, 1998. Clarifications and operational changes were 
announced in subsequent Federal Register notices: 63 FR 44303 (August 
18, 1998); 64 FR 39187 (July 21, 1999); 64 FR 73121 (December 29, 
1999); 66 FR 14619 (March 13, 2001); 67 FR 61200 (September 27, 2002) 
(with a correction document published at 67 FR 68238 (November 8, 
2002)); 69 FR 53730 (September 2, 2004); 70 FR 1730 (January 10, 2005); 
70 FR 46882 (August 11, 2005); 71 FR 37596 (June 30, 2006); 78 FR 27984 
(May 13, 2013); and 79 FR 34334 (June 16, 2014). On September 13, 2000, 
CBP extended the test indefinitely in a notice published in the Federal 
Register (65 FR 55326).

B. Transition to the Automated Commercial Environment

    The Security and Accountability for Every (SAFE) Port Act of 2006 
(Pub. L. 109-347, 120 Stat. 1884) modified the Mod Act and added 
subsection (d) to 19 U.S.C. 1411. This subsection established the 
International Trade Data System (ITDS) which allows for the collection 
and distribution of standard import and export data required by CBP 
through a single portal system. The Automated

[[Page 2646]]

Commercial Environment (ACE), the ``single window,'' is an automated 
and electronic system for commercial trade processing which is intended 
to streamline business processes, facilitate growth in trade, ensure 
cargo security, and foster participation in global commerce, while 
ensuring compliance with U.S. laws and regulations and reducing costs 
for CBP and all of its communities of interest. The ability to meet 
these objectives depends on successfully modernizing CBP's business 
functions and the information technology that supports those functions.
    Over the last several years, CBP has tested ACE and provided 
significant public outreach to ensure that the trade community is fully 
aware of the transition from ACS to ACE. On October 13, 2015, CBP 
published an Interim Final Rule in the Federal Register (80 FR 61278) 
that designated ACE as a CBP-authorized EDI system, to be effective 
November 1, 2015. In the Interim Final Rule, CBP stated that ACS would 
be phased out and anticipated that ACS would no longer be supported for 
entry and entry summary filing. Filers were encouraged to adjust their 
business practices so that they would be prepared when ACS was 
decommissioned.
    CBP has developed a staggered transition strategy for 
decommissioning ACS to give the trade additional time to adjust their 
business practices. The phases of the transition were announced in 
several Federal Register notices. See 81 FR 10264 (February 29, 2016); 
81 FR 30320 (May 16, 2016); 81 FR 32339 (May 23, 2016); 82 FR 38924 
(August 16, 2017); and 82 FR 51852 (November 8, 2017). This notice 
announces a further transition as CBP is transitioning the 
reconciliation test from ACS to ACE.

C. Modifications of the Reconciliation Test

    On December 12, 2016, CBP published a notice in the Federal 
Register (81 FR 89486) announcing modifications to the reconciliation 
test and the transition of the test from ACS to ACE, effective January 
14, 2017. On January 17, 2017, CBP published a notice in the Federal 
Register (82 FR 4901) announcing that the effective date for the test 
modifications and transition would be delayed indefinitely. Then, on 
June 8, 2017, CBP published a notice in the Federal Register (82 FR 
26699) announcing that the modifications to the test and the transition 
would be effective on July 8, 2017. Subsequently, on June 30, 2017, CBP 
published a notice in the Federal Register (82 FR 29910) announcing 
that the effective date for the modifications to the reconciliation 
test and for mandatory filing of reconciliation entries in ACE had been 
delayed until further notice.

II. Announcement of Reconciliation Test Transitioning Into ACE and 
Modifications to Test Becoming Operational

    This notice announces that, beginning February 24, 2018, all 
reconciliation entries must be filed in ACE regardless of whether the 
underlying entry was filed in ACS or ACE and regardless of whether it 
is a replacement, substitution or follow-up to a reconciliation entry 
originally filed in ACS, and ACS is decommissioned for the filing of 
such entries. In addition, as of February 24, 2018, the test 
modifications announced in the December 12, 2016 notice will become 
operational.

    Dated: January 12, 2018.
Brenda B. Smith,
Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2018-00802 Filed 1-17-18; 8:45 am]
 BILLING CODE 9111-14-P

2646 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices

Commercial Environment (ACE), the date for the modifications to the FOR FURTHER INFORMATION CONTACT: Eric
‘‘single window,’’ is an automated and reconciliation test and for mandatory B. Johnson, Office of Policy, Department
electronic system for commercial trade filing of reconciliation entries in ACE of Homeland Security, Washington, DC
processing which is intended to had been delayed until further notice. 20528, (202) 282–8652.
streamline business processes, facilitate SUPPLEMENTARY INFORMATION:
II. Announcement of Reconciliation
growth in trade, ensure cargo security,
and foster participation in global Test Transitioning Into ACE and Background
commerce, while ensuring compliance Modifications to Test Becoming Generally, USCIS may approve H–2A
with U.S. laws and regulations and Operational and H–2B petitions for nationals of only
reducing costs for CBP and all of its This notice announces that, beginning those countries 1 that the Secretary of
communities of interest. The ability to February 24, 2018, all reconciliation Homeland Security, with the
meet these objectives depends on entries must be filed in ACE regardless concurrence of the Secretary of State,
successfully modernizing CBP’s of whether the underlying entry was has designated as participating
business functions and the information filed in ACS or ACE and regardless of countries. Such designation must be
technology that supports those whether it is a replacement, substitution published as a notice in the Federal
functions. or follow-up to a reconciliation entry Register and expires after one year.
Over the last several years, CBP has originally filed in ACS, and ACS is USCIS, however, may allow a national
tested ACE and provided significant decommissioned for the filing of such from a country not on the list to be
public outreach to ensure that the trade entries. In addition, as of February 24, named as a beneficiary of an H–2A or
community is fully aware of the 2018, the test modifications announced H–2B petition based on a determination
transition from ACS to ACE. On October in the December 12, 2016 notice will that such participation is in the U.S.
13, 2015, CBP published an Interim become operational. interest. See 8 CFR 214.2(h)(5)(i)(F) and
Final Rule in the Federal Register (80 8 CFR 214.2(h)(6)(i)(E).
Dated: January 12, 2018.
FR 61278) that designated ACE as a In designating countries to include on
CBP-authorized EDI system, to be Brenda B. Smith, the list, the Secretary of Homeland
effective November 1, 2015. In the Executive Assistant Commissioner, Office of Security, with the concurrence of the
Interim Final Rule, CBP stated that ACS Trade. Secretary of State, will take into account
would be phased out and anticipated [FR Doc. 2018–00802 Filed 1–17–18; 8:45 am] factors including, but not limited to: (1)
that ACS would no longer be supported BILLING CODE 9111–14–P The country’s cooperation with respect
for entry and entry summary filing. to issuance of travel documents for
Filers were encouraged to adjust their citizens, subjects, nationals, and
business practices so that they would be DEPARTMENT OF HOMELAND residents of that country who are subject
prepared when ACS was SECURITY to a final order of removal; (2) the
decommissioned. [Docket No. DHS–2011–0108]
number of final and unexecuted orders
CBP has developed a staggered of removal against citizens, subjects,
transition strategy for decommissioning RIN 1601–ZA11 nationals, and residents of that country;
ACS to give the trade additional time to (3) the number of orders of removal
adjust their business practices. The Identification of Foreign Countries executed against citizens, subjects,
phases of the transition were announced Whose Nationals Are Eligible To nationals, and residents of that country;
in several Federal Register notices. See Participate in the H–2A and H–2B and (4) such other factors as may serve
81 FR 10264 (February 29, 2016); 81 FR Nonimmigrant Worker Programs the U.S. interest. See 8 CFR
30320 (May 16, 2016); 81 FR 32339 214.2(h)(5)(i)(F)(1)(i) and 8 CFR
(May 23, 2016); 82 FR 38924 (August 16, AGENCY: Office of the Secretary, DHS.
214.2(h)(6)(i)(E)(1). Examples of factors
2017); and 82 FR 51852 (November 8, ACTION: Notice. serving the U.S. interest that could
2017). This notice announces a further result in the non-inclusion of a country
transition as CBP is transitioning the SUMMARY: Under Department of
or the removal of a country from the list
reconciliation test from ACS to ACE. Homeland Security (DHS) regulations,
include, but are not limited to, fraud,
U.S. Citizenship and Immigration
C. Modifications of the Reconciliation abuse, overstay rates, and non-
Services (USCIS) may generally only
Test compliance with the terms and
approve petitions for H–2A and H–2B
conditions of the H–2 visa programs by
On December 12, 2016, CBP nonimmigrant status for nationals of
nationals of that country.
published a notice in the Federal countries that the Secretary of In December 2008, DHS published in
Register (81 FR 89486) announcing Homeland Security, with the the Federal Register two notices,
modifications to the reconciliation test concurrence of the Secretary of State, ‘‘Identification of Foreign Countries
and the transition of the test from ACS has designated by notice published in
to ACE, effective January 14, 2017. On the Federal Register. That notice must 1 With respect to all references to ‘‘country’’ or

January 17, 2017, CBP published a be renewed each year. This notice ‘‘countries’’ in this document, it should be noted
notice in the Federal Register (82 FR announces that the Secretary of that the Taiwan Relations Act of 1979, Public Law
Homeland Security, in consultation 96–8, Section 4(b)(1), provides that ‘‘[w]henever the
4901) announcing that the effective date laws of the United States refer or relate to foreign
for the test modifications and transition with the Secretary of State, is countries, nations, states, governments, or similar
would be delayed indefinitely. Then, on identifying 83 countries whose entities, such terms shall include and such laws
June 8, 2017, CBP published a notice in nationals are eligible to participate in shall apply with respect to Taiwan.’’ 22 U.S.C.
sradovich on DSK3GMQ082PROD with NOTICES

the H–2A program and 82 countries 3303(b)(1). Accordingly, all references to ‘‘country’’
the Federal Register (82 FR 26699) or ‘‘countries’’ in the regulations governing whether
announcing that the modifications to whose nationals are eligible to nationals of a country are eligible for H–2 program
the test and the transition would be participate in the H–2B program for the participation, 8 CFR 214.2(h)(5)(i)(F)(1)(i) and 8
effective on July 8, 2017. Subsequently, coming year. CFR 214.2(h)(6)(i)(E)(1), are read to include Taiwan.
This is consistent with the United States’ one-China
on June 30, 2017, CBP published a DATES: Effective Date: This notice is
policy, under which the United States has
notice in the Federal Register (82 FR effective January 18, 2018, and shall be maintained unofficial relations with Taiwan since
29910) announcing that the effective without effect after January 18, 2019. 1979.

VerDate Sep<11>2014 18:27 Jan 17, 2018 Jkt 244001 PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 E:\FR\FM\18JAN1.SGM 18JAN1

Document Created: 2018-01-18 00:42:40
Document Modified: 2018-01-18 00:42:40

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		General notice.
Dates		As of February 24, 2018, the modifications to the reconciliation test will become operational. As of the same date, the test will transition into ACE, and ACS will be decommissioned for the filing of reconciliation entries.
Contact		Randy Mitchell, Commercial Operations and Entry Division, Trade Policy and Programs, Office of Trade at (202) 863-6532 or [email protected]
FR Citation		83 FR 2645

83 FR 2645 - Modification of the National Customs Automation Program (NCAP) Test Regarding Reconciliation and Transition of the Test From the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE)

DEPARTMENT OF HOMELAND SECURITYU.S. Customs and Border Protection

Federal Register Volume 83, Issue 12 (January 18, 2018)

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