SUPPLEMENTARY INFORMATION:

I. Background

The National Customs Automation Program

The National Customs Automation Program (NCAP) was established in Subtitle B of Title VI—Customs Modernization, in the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057, Dec. 8, 1993) (Customs Modernization Act) (19 U.S.C. 1411-15). Through NCAP, the initial thrust of customs modernization was on trade compliance and the development of the Automated Commercial Environment (ACE). ACE 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 U.S. Customs and Border Protection (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. CBP's modernization efforts are accomplished through phased releases of ACE component functionality, which was designed to replace the paper function, or to create a new function. Each release begins with a test and ends with mandatory use of the new ACE feature. Each release builds on previous releases and sets the foundation for subsequent releases.

Authorization for the Test

The Customs Modernization Act provides the Commissioner of CBP with the 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 the Customs Modernization Act, see19 U.S.C. 1411-1415, and section 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. As provided in 19 CFR 101.9(b), for purposes of conducting an NCAP test, the Commissioner of CBP may impose requirements different from those specified in the CBP regulations.

International Trade Data System (ITDS)

This test is also in furtherance of the International Trade Data System (ITDS) key initiatives, set forth in section 405 of the Security and Accountability for Every Port Act of 2006 (Pub. L. 109-347, 120 Stat. 1884, Oct. 13, 2006) (SAFE Port Act) (19 U.S.C. 1411(d)). The stated purpose of ITDS is to eliminate ( printed page 60384) redundant information requirements, efficiently regulate the flow of commerce, and effectively enforce laws and regulations relating to international trade, by establishing a single window system, operated by CBP, for the collection and distribution of standard electronic import and export data required by all participating Federal agencies. 19 U.S.C. 1411(d)(1)(B). CBP has developed and continues to develop ACE as the “single window” for the trade community to comply with the ITDS requirement established by the SAFE Port Act.

II. Current Truck Cargo Export Information Requirements

Under existing regulations, truck carriers are not required to submit a manifest for cargo exported from the United States by truck. However, as discussed below, under 19 CFR 192.14, the U.S. Principal Party in Interest (USPPI) is required to submit certain advance information to CBP for export cargo leaving the United States by truck.^[1]

Section 343(a) of the Trade Act of 2002 (Trade Act), as amended (19 U.S.C. 1415), authorizes CBP to promulgate regulations providing for the mandatory transmission of electronic cargo information by way of a CBP-approved electronic data interchange (EDI) system before the cargo is brought into or departs the United States by any mode of commercial transportation (sea, air, rail, or truck). The required cargo information is that which is reasonably necessary to enable high-risk shipments to be identified for purposes of ensuring cargo safety and security and preventing smuggling pursuant to the laws enforced and administered by CBP. Section 192.14 of title 19 of the Code of Federal Regulations (19 CFR 192.14) implements the requirements of the Trade Act with regard to cargo departing the United States.

While the truck carrier is not required to submit an export manifest, under 19 CFR 192.14, the USPPI must file in ACE, any required Electronic Export Information (EEI) pursuant to the Foreign Trade Regulations for all cargo being transported by the truck. The USPPI, or its authorized agent, must transmit and verify system acceptance of this EEI, generally no later than one hour prior to the arrival of the truck at the United States border to exit the country. 19 CFR 192.14(b)(1)(iii). If the cargo is subject to the U.S. Department of State, U.S. Munitions List, the EEI will be required eight hours prior to the arrival of the truck at the United States border to exit the country. 19 CFR 192.14(b)(2). The truck carrier may not load cargo without first receiving from the USPPI, or its authorized agent, either the related EEI filing citation, covering all cargo for which the EEI is required, or exemption legends, covering cargo for which EEI need not be filed. 19 CFR 192.14(c)(4). The outbound truck carrier must annotate the truck cargo manifest, waybill, or other export documentation with the applicable AES proof of filing, downtime, exclusion or exemption citations, conforming to the approved data formats found in the Bureau of the Census Foreign Trade Regulations (FTR) (15 CFR part 30).

III. Description of the Electronic Export Manifest for Truck Cargo Test

Purpose

The Electronic Export Manifest for Truck Cargo Test will test the feasibility of requiring truck carriers to file export manifest data as well as test the functionality regarding the filing of export manifest data for truck cargo electronically in ACE in furtherance of the ITDS initiatives described above. ACE is a single automated export processing platform which is used for, among other things, certain export manifest, commodity, licensing, export control, and export targeting transactions.

The Electronic Export Manifest for Truck Cargo Test will also test the feasibility of requiring the truck carrier to submit manifest information electronically in ACE generally within a specified time before the cargo is loaded on the truck. As described in the paragraph below, participants in the test will submit certain limited export manifest data electronically to ACE at least 24 hours prior to departure from the United States to then be complemented by the complete export manifest filing no later than two (2) hours prior to arrival at the final port of export. This timeframe will enable CBP to link the EEI submitted by the USPPI with the export manifest information. CBP believes this capability will better enable CBP to assess risk and effectively target and inspect shipments prior to the loading of cargo to ensure compliance with all U.S. export laws.

CBP believes this process will also reduce costs for CBP, partner government agencies, and the trade community, improve facilitation of export shipments through the supply chain, and enable CBP to identify high-risk shipments for purposes of ensuring cargo safety and security, including compliance with export controls.

Procedures

Voluntary participants in the Electronic Export Manifest for Truck Cargo Test agree to provide certain limited export manifest data electronically at least 24 hours prior to departure from the United States to then be complemented by the complete export manifest filing no later than two (2) hours prior to arrival at the final port of export. The electronic export manifest data submission will be used to target high-risk truck cargo. CBP expects that test participants will have access to the manifest data early in the planning stages of an export truck cargo transaction and will be able to comply with these timeframes. CBP anticipates that these timeframes will provide CBP adequate time to perform proper risk assessment and identification of shipments to be inspected early enough in the supply chain to enhance security while minimizing disruption to the flow of goods. Although CBP will aim to identify shipments for inspection prior to loading, inspections could potentially happen at any time before the truck departs the United States.

Any truck cargo identified as potentially high-risk will receive a hold until required additional information related to the shipment is submitted to clarify non-descriptive, inaccurate, or insufficient information, a physical inspection is performed, or other appropriate action is taken, as specified by CBP. Once the cargo is cleared for loading, a release message will be generated and transmitted to the filer.

Data Elements

The following seven (7) data elements are considered advance or initial data designated as mandatory elements, and shall be submitted 24 hours prior to the departure from the United States to be complemented by the complete export manifest filing no later than two (2) hours prior to arrival at the final port of export:

(1) Bill of lading number, which is necessary to link the transmission to the cargo throughout the entire electronic manifest process;

(2) Cargo Quantity (the unit of measure, numbers and quantities for the cargo laden aboard the truck as contained in the bill[s] of lading, either master or house, as applicable [this means the quantity of the lowest ( printed page 60385) external packaging unit; containers and pallets do not constitute acceptable information; for example, a container holding 10 pallets with 200 cartons should be described as 200 cartons]);

(3) Total weight of cargo expressed in pounds or kilograms;

(4) Precise cargo description (and the Harmonized Tariff Schedule (HTS) number(s) to the 6-digit level under which the cargo is classified if that information is received from the shipper) and weight of the cargo; or for a sealed container, the shipper's declared description and weight of the cargo (generic descriptions, specifically those such as “FAK” (“freight of all kinds”), “general cargo”, and “STC” (“said to contain”) are not acceptable);

(5) Shipper's complete name and address from the bills of lading (for each house bill in a consolidated shipment, the identity of the vendor, supplier, manufacturer, or other similar party is acceptable; by contrast, the identity of the carrier, freight forwarder, consolidator, or broker, is not acceptable);

(6) Consignee's complete name and address from the bill(s) of lading. (The consignee is the party to whom the cargo will be delivered in a foreign country. However, in the case of cargo shipped “to order of [a named party],” the “to order” party must be named as the consignee; and if there is any other commercial party listed in the bill of lading for delivery or contact purposes, the carrier must also report this other commercial party's identity and contact information, including address, in the “Notify party” field.); and

(7) The Automated Export System (AES) Exemption Statement, as applicable.

The following Electronic Export Manifest for Truck Cargo Test data elements are identified as mandatory, conditional, and optional. Data elements that are indicated as “mandatory” must be transmitted to CBP. “Conditional” data must be transmitted to CBP only if the particular information pertains to the shipment or cargo. “Optional” data elements may be transmitted (by the carrier or its agent). The ACE Export Manifest for Truck Cargo data elements are to be submitted at the lowest bill level. If the information has been provided with the advance data elements, it need not be transmitted again unless there are updates or changes. The data elements for all shipments, including empty truck cars, consist of:

Mandatory

(1) Shipper's name and address, from the bill(s) of lading (for each house bill in a consolidated shipment, the identity of the vendor, supplier, manufacturer, or other similar party is acceptable; by contrast, the identity of the carrier, freight forwarder, consolidator, or broker, is not acceptable);

(2) Consignee's complete name and address from the bill(s) of lading. (The consignee is the party to whom the cargo will be delivered to in a foreign country. However, in the case of cargo shipped “to order of [a named party],” the “to order” party must be named as the consignee; and if there is any other commercial party listed in the bill of lading for delivery or contact purposes, the carrier must also report this other commercial party's identity and contact information, including address, in the “Notify party” field.);

(3) Driver information (Name and Address, Date of Birth, HazMat Endorsement, Driver License Number, State and Country of Issuance);

(4) U.S. Port of Export (authorized CBP port where the truck will cross the border into Canada or Mexico);

(5) Port of Unlading (The port in a foreign country where the goods are removed from the exporting carrier. The foreign port does not have to be located in the country of destination.);

(6) Standard Carrier Alpha Code (SCAC);

(7) Conveyance Vehicle Identification Number (VIN) or License Plate Number and State of Issuance;

(8) Manifest number (a unique number generated by the carrier);

(9) Estimated Date of Departure;

(10) Empty/Loaded Status Code;

(11) Bill of Lading (BOL) Number (SCAC + sequence number. A unique BOL number used by the reporting trade participant to identify the shipment or consolidation.);

(12) Precise cargo description (or the Harmonized Tariff Schedule (HTS) number(s) to the 6-digit level under which the cargo is classified if that information is received from the shipper) and weight of the cargo; or for a sealed container, the shipper's declared description and weight of the cargo (generic descriptions, specifically those such as “FAK” (“freight of all kinds”), “general cargo”, and “STC” (“said to contain”) are not acceptable);

(13) Cargo Quantity (the unit of measure, numbers and quantities for the cargo laden aboard the truck as contained in the bill[s] of lading [this means the quantity of the lowest external packaging unit; containers and pallets do not constitute acceptable information; for example, a container holding 10 pallets with 200 cartons should be described as 200 cartons]);

(14) Cargo Weight (the weight of the cargo, or, for a sealed container, the shipper's declared weight of the cargo [lbs./kgs.]); and

(15) Bill of Lading type (house, simple, master).

Conditional

(1) Notify Party Name and Address (name and address of the party to be notified as specified in the carrier's/freight forwarder's contract of carriage or commercial sales);

(2) Crew information (Name and Address, Date of Birth, HazMat Endorsement, Driver License Number, State and Country of Issuance);

(3) Equipment Number (refers to the identification number of any trailing equipment or container attached to the power unit);

(4) Bill issuer code;

(5) Seal Number;

(6) Hazardous Material Code (internationally recognized hazardous material code when such cargo is being shipped by truck);

(7) Chemical Abstract Service (CAS) ID Number;

(8) Marks and Numbers;

(9) Internal Transaction Number (ITN) or EEI Filing Exemption Code or In-bond number;

(10) Mexican Pedimento Number (only for shipments exported to Mexico); and

(11) Vehicle Identification Number or Product Identification Number (new self-propelled vehicles only).

Optional: Place where carrier takes possession of cargo or empty container.

There are currently no additional data elements identified for the Electronic Export Manifest for Truck Cargo Test. However, CBP may enhance the test in the future with additional data or processing capabilities to assist with facilitation of truck shipment movements. Any such enhancement will be announced in the Federal Register .

IV. Eligibility Requirements

CBP is limiting this test to nine truck carriers. There are no restrictions with regard to organization size, location, or commodity type. However, prospective Electronic Export Manifest for Truck Cargo Test participants must have the technical capability to electronically submit data to CBP through ACE. Participants can choose to submit data via the ACE Export Truck Manifest Trade Portal or the electronic data interchange (EDI) but, if choosing EDI, must be able to receive response message sets via Cargo-ANSI X12 or Unified XML and must successfully complete certification testing with their ( printed page 60386) client representative. Once parties planning to utilize EDI have applied to participate, they must complete a test phase to determine if the data transmission is in the required readable format. Applicants will be notified once they have successfully completed testing and are permitted to participate fully in the test. In selecting participants, CBP will take into consideration the order in which the applications are received.

Conditions of Participation

Test participants agree to submit certain limited export manifest data electronically to CBP at least 24 hours prior to departure from the United States to then be complemented by the complete export manifest filing no later than two (2) hours prior to arrival at the final port of export. In addition, test participants agree to establish operational security protocols that correspond to CBP hold messages that mandate the participant to take responsive action and respond to CBP confirming that the requested action was taken to mitigate any threat identified, respond promptly with complete and accurate information when contacted by CBP with questions regarding the data submitted, and comply with any Do Not Load instructions.

Finally, test participants agree to participate in any teleconferences or meetings established by CBP, when necessary, to ensure any challenges, or operational or technical issues regarding the test, are properly communicated and addressed.

Participation in the Electronic Export Manifest for Truck Cargo Test does not impose any legally binding obligations on either CBP or the participant, and CBP generally does not intend to enforce or levy punitive measures if test participants are non-compliant with these conditions of participation during the test.

Application Process and Acceptance

Those interested in participating in the Electronic Export Manifest for Truck Cargo Test should submit an email to CBPTruckExportManifestatcbptruckexportmanifest@cbp.dhs.gov, stating their interest and their qualifications based on the above eligibility requirements. The email will serve as an electronic signature of intent to participate and must also include a point of contact name and telephone number. Applications will be accepted until CBP has received applications from nine parties that meet all test participant requirements. CBP will notify applicants whether they have been selected to participate in the test. Applicants will also be notified once they have successfully completed testing and are permitted to participate fully in the test.

Test participants will receive technical, operational, and policy guidance through all stages of test participation, from planning to implementation, on the necessary steps for the transmission of electronic export manifest data.

Costs to Electronic Export Manifest for Truck Cargo Test Participants

Electronic Export Manifest for Truck Cargo Test participants are responsible for all costs incurred as a result of their participation in the test and such costs will vary, depending on the participants' pre-existing infrastructures.

Benefits to Electronic Export Manifest for Truck Cargo Test Participants

While the benefits to Electronic Export Manifest for Truck Cargo Test participants will vary, several advantages of joining may include:

• Reduction in costs due to fewer examinations required after cargo is already loaded on the truck;
• Reduction in delays and associated costs as a result of fewer trucks being stopped for inspection at the borders or less cargo being returned to CBP custody for inspection once the cargo has departed the United States;
• More real time accurate transportation data, such as date and port of export, when linked to the AES EEI filing, thereby potentially reducing the likelihood of penalties (issued to exporters and/or carriers) pursuant to15 CFR part 30 for incorrect information;
• Increases in security by leveraging CBP threat model and other data to employ a risk-based approach to improve truck cargo security and to ensure compliance with U.S. export laws, rules, and regulations through targeted screening;
• The ability to provide input into CBP efforts to establish, test, and refine the interface between government and industry communication systems for the implementation of the electronic export manifest system;
• Facilitation of corporate preparedness for future mandatory implementation of electronic export manifest submission requirements; and
• Facilitation of the movement of legitimate cargo being transported by truck across U.S. borders with Canada and Mexico.

V. Regulatory and Statutory Requirements

Participation in the Electronic Export Manifest for Truck Cargo Test does not alter the participant's obligations to comply with any other applicable statutory and regulatory requirements and participants will still be subject to applicable penalties for non-compliance with existing requirements or any statutory sanctions in the event that a violation of U.S. export laws or prohibited articles are discovered within a shipment/container presented for export destined from the United States on a truck owned and/or operated by the participant.

VI. Duration and Evaluation of the Electronic Export Manifest for Truck Cargo Test

The test will be activated on a case-by-case basis with each participant and may be limited to a single or small number of ports until any operational, training, or technical issues on either the trade or government side are established and/or resolved. The test will run for approximately two years from October 23, 2026. While the test is ongoing, CBP will evaluate the results and determine whether the test will be extended, expanded to include additional participants, or terminated early, otherwise modified. CBP will announce any such modifications by notice in the Federal Register . Upon sufficient test analysis, CBP intends to initiate rulemaking to require the submission of electronic export manifest data before the cargo is loaded onto the truck for all international shipments to be exported from the United States. The results of the test will help determine the relevant data elements, the timeframe within which data should be submitted to permit CBP to effectively target, identify, and mitigate any risk with the least impact practicable on trade operations, and any other related procedures and policies.

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 otherwise provided by law. However, participation in this or any ACE test is not confidential and upon a written Freedom of Information Act (FOIA) request, the name(s) of an approved participant(s) will be disclosed by CBP in accordance with 5 U.S.C. 552.

Misconduct Under the Test

If a test participant fails to abide by the rules, procedures, or terms and conditions of this and all other ( printed page 60387) applicable Federal Register Notices, fails to exercise reasonable care in the execution of participant obligations, or otherwise fails to comply with all applicable laws and regulations, then the participant may be suspended from participation in this test and/or subjected to penalties, liquidated damages, and/or other administrative or judicial sanction. Additionally, CBP has the right to suspend a test participant based on a determination that an unacceptable compliance risk exists.

If CBP determines that a suspension is warranted, CBP will notify the participant of this decision, the facts or conduct warranting suspension, and the date when the suspension will be effective. In the case of willful misconduct, or where public health interests or safety are concerned, the suspension may be effective immediately. This decision may be appealed in writing to the Executive Assistant Commissioner, Office of Field Operations, within 15 days of notification. The appeal should address the facts or conduct charges contained in the notice and state how the participant has or will achieve compliance. CBP will notify the participant within 30 days of receipt of an appeal whether the appeal is granted. If the participant has already been suspended, CBP will notify the participant if and when their participation in the test will be reinstated.

VII. Paperwork Reduction Act

As noted above, CBP will be accepting no more than nine participants in the Electronic Export Manifest for Truck Cargo Test. This means that fewer than 10 persons will be subject to any information collections under this test. Accordingly, collections of information within this notice are exempted from the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3502 and 3507).

VIII. Privacy

CBP will ensure that all Privacy Act requirements, 5 U.S.C. 552a, and applicable DHS privacy policies are adhered to as a result of this test. CBP has issued a Privacy Impact Assessment (PIA) for the Automated Commercial Environment (ACE),^[2] and Export Information System (EIS),^[3] which both outline how CBP ensures compliance with Privacy Act protections and DHS privacy policies, including DHS's Fair Information Practice Principles (FIPPs). The FIPPs account for the nature and purpose of the information being collected in relation to DHS's mission to preserve, protect and secure the United States. Both PIAs address issues such as the security, integrity, and sharing of data, use limitation, and transparency.

91 FR 60383