SUPPLEMENTARY INFORMATION:

I. Background

A. Current Requirements for Export of Used Self-Propelled Vehicles

The current regulations are set forth in part 192 of title 19 of the Code of Federal Regulations (19 CFR part 192). Among other things, part 192 includes regulations pertaining to procedures for the lawful exportation of Used Self-Propelled Vehicles (USPVs). Currently, 19 CFR 192.2 requires that in the case of a vehicle being exported by vessel or aircraft, both the required documentation describing the vehicle ( printed page 70091) and the vehicle must be presented to CBP at least 72 hours prior to export, and in the case of a vehicle being exported at a land border crossing (by rail, highway, or under its own power), the required documentation must be submitted at least 72 hours prior to export, and the vehicle must be presented at the time of export. The required documentation includes the vehicle identification number (VIN) or, if the vehicle does not have a VIN, the product information number (PIN). Section 192.2(b) specifies the types of documents that must be submitted in different circumstances. Exportation of a vehicle is permitted only upon compliance with these requirements unless, as per section 192.2(a), the vehicle was entered into the United States under an in-bond procedure, or under a carnet or Temporary Importation Bond (TIB). Such vehicles are exempt from these requirements. As a matter of policy, CBP also recognizes as exempt a vehicle entered under a personal exemption for non-residents who entered the vehicle for a one-year period. See www.cbp.gov/​trade/​basic-import-export/​export-docs/​motor-vehicle#.

B. Description and Purpose of Pilot

CBP announced the DIS USPV Test by a Federal Register notice published on May 10, 2022 (87 FR 28022) (the 2022 Test Notice) and began the test on January 9, 2023. The DIS USPV test is intended to evaluate the process and whether this process will expedite and modernize the document submission and review process for the export of USPVs. CBP is renewing this DIS USPV Test to continue its evaluation. All procedures and criteria announced in the 2022 Test Notice remain applicable to this renewal.

In this voluntary pilot, participants submit the required ownership documentation as set forth in 19 CFR part 192 through the DIS in CBP's Automated Commercial Environment (ACE), using either the Electronic Data Interchange (EDI) via an Automated Broker Interface (ABI), or via email at docs@cbp.dhs.gov. Participants are required to submit the documentation in accordance with existing regulatory timeframes which vary by type of vehicle,^[1] and the timeframes for presenting the documents and vehicle vary by manner of export.^[2] The DIS USPV Test changes only the manner in which the required documents are submitted to CBP. For pilot participants, CBP will waive the requirement in 19 CFR 192.2 to present original physical copies of the documents and require the documents to be submitted electronically using the DIS (EDI or email) instead. However, CBP will retain the right to request original documents on an as-needed basis. All other requirements of 19 CFR part 192, including the requirement to present the vehicle, will remain unchanged.^[3]

Under the pilot, the electronically submitted documents are linked to the Electronic Export Information (EEI) ^[4] filing in the Automated Export System (AES) via the Internal Transaction Number (ITN) generated at the time of the EEI submission. Participants are required to transmit a valid ITN number to CBP with the DIS submission. Participants must submit EEI prior to submitting the vehicle documents to DIS. CBP will request original documentation and conduct a physical examination of the vehicle when necessitated by the results of targeting and risk assessment.

Participants will receive an automated response in the format in which the required documents were submitted, EDI or email, confirming that the document submission was received.^[5] The participants will be able to use the automated response together with the AES-generated ITN to show that they complied with CBP's reporting requirements. The documentation submitted via the DIS will be used by CBP to review and process vehicles pending export to ensure compliance with U.S. laws and regulations. CBP reserves the right to request original (paper) documentation at any time. Consequently, pilot participants must continue to have access to the documentation in its original form for the entire time from submission to clearance by CBP, in the same manner as required by 19 CFR part 192.

Participation in the pilot does not alter participants' obligations to comply with any other applicable statutory or regulatory requirements. Participants will continue to be subject to applicable penalties for non-compliance with CBP or other U.S. Government agency program requirements or any statutory sanctions if a violation of U.S. export control laws occurs or prohibited articles are discovered with a vehicle presented for export from the United States.

C. Renewal of Pilot

As noted, CBP has been conducting this pilot since 2023. Renewing the pilot will allow CBP to continue to conduct targeting electronically, facilitate legitimate exportation of USPVs, and allow for greater participation in the pilot.

Continuing the pilot will allow CBP to test the mechanisms through which the required documentation may be submitted electronically, as a preliminary step towards moving to a more automated and efficient export reporting system for export of used self-propelled vehicles. Having the required documentation available electronically will enable CBP to institute better risk-based targeting of exports. This will be accomplished by making electronic document and information submission the primary means for meeting export reporting requirements and reserving field inspection of vehicles and examination of original ownership documentation only for cases where targeting and risk assessment have identified a need for additional scrutiny. The receipt of the electronic ownership documentation will also improve CBP's ability to target and identify high-risk vehicle exports pre-departure while facilitating the process for legitimate exportation through a more streamlined and efficient port procedure. Considering the high volume of vehicle exports, it is expected that the electronic submission of the required documentation will have a significant impact on the speed and efficiency of vehicle export processing.

From 2023-2025, there was an annual average of 1.3 million USPVs exported from the United States.^[6] During that timeframe, approximately one third of all document submissions were ( printed page 70092) tendered via DIS as part of this DIS USPV Test.^[7] Under the current regulatory export procedures, the person who is attempting to export a USPV must present to CBP both the vehicle and specified paper documents. This paper process is a drain on limited CBP staffing resources at ports with significant traffic because it requires CBP to devote numerous hours to review vehicle export paperwork. The pilot will allow CBP to assess the effectiveness of these electronic procedures and will allow the agency to test the functionality of the systems required for electronic submission. The results of the pilot will help CBP determine whether to eventually require, through rulemaking, the electronic submission of vehicle ownership documentation using the DIS.

The pilot will continue to run for approximately two years from the date of publication of this notice in the Federal Register .

D. Eligibility Requirements

Eligibility is limited to parties who are responsible for submitting the documentation required by 19 CFR 192.2 as part of the export transaction and who have access to the ITN for the AES commodity filing. In addition, participants must agree to submit the required documentation via the DIS, as described above.

E. Application Process and Acceptance

Parties interested in participating in this pilot should, as a preliminary matter, submit a request to receive export updates via the Cargo Systems Messaging Service (CSMS). Requests may be made at www.cbp.gov/​trade/​automated/​cargo-systems-messaging-service. The CSMS is used to provide pilot participants with technical and operational updates and guidance throughout the pilot, and may be used to announce technical, non-substantive changes to the pilot.

Detailed instructions for participation in the pilot can be found in the DIS Instructional Guide for the Exportation of Used Self-Propelled Vehicles located on the CBP website, at www.cbp.gov/​trade/​basic-import-export/​export-docs/​motor-vehicle. There is no specific application for participation in the pilot. However, interested participants must communicate their interest and intent to the relevant port before taking any other action. The port will further direct potential pilot participants regarding next steps. Prospective participants will be asked to submit the first submission of ownership documents and contact their local CBP vehicle processing office to verify that their first transmission of ownership documents is successful, prior to being granted participation in the pilot. Once this review and verification are complete, participants will be permitted to participate fully in the pilot.

Participation in the pilot is open to all eligible parties that have been approved to participate, subject to the discretion of the Port Director at the port from which parties intend to export the USPVs.

F. Technical Specifications

Ownership documents must be submitted via the DIS, either using the EDI via an approved ABI or via email at docs@cbp.dhs.gov in a PDF format up to 10MB. Detailed instructions for participation in the pilot can be found in a document named DIS Instructional Guide for the Exportation of Used Self-Propelled Vehicles located on the CBP website, at www.cbp.gov/​trade/​basic-import-export/​export-docs/​motor-vehicle.

G. Evaluation of the Pilot

While the pilot is ongoing, CBP will evaluate the effectiveness of using the DIS and will determine if any extensions or modifications are needed. Technical modifications will be announced using the CSMS. Any substantive changes to the pilot, including extensions, will be announced in the Federal Register .

The results of the pilot will help CBP analyze and evaluate the effectiveness of using the DIS or some other method to collect export documentation for USPVs. When sufficient analysis and evaluation have been conducted, CBP will decide whether to require electronic submission of ownership documentation using the DIS or some other method. Any changes to the regulations will be made through rulemaking.

H. Confidentiality

All data submitted 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 pilot 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.

II. Applicability of Initial Test Notice

All provisions in the 2022 Test Notice remain applicable, subject to the extension of the time provided in this renewal.

III. Privacy

CBP will ensure that all Privacy Act requirements and applicable policies are adhered to during the implementation of this pilot.

IV. Paperwork Reduction Act

The Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3507(a)) requires that CBP consider the impact of paperwork and other information collection burdens imposed on the public. An agency may not conduct, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number assigned by the Office of Management and Budget (OMB). The collection of information regarding Exportation of Self-Propelled Vehicles was previously reviewed and approved by OMB in accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) under OMB Control Number 1651-0054. No new information is collected under this pilot. Therefore, no new information collection or update to the existing information collection is required.

91 FR 70090