[Federal Register Volume 61, Number 39 (Tuesday, February 27, 1996)]
[Notices]
[Pages 7300-7302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4425]



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DEPARTMENT OF THE TREASURY

Customs Service


Announcement of National Customs Automation Program Test 
Regarding Remote Location Filing

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: General notice.

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SUMMARY: This notice is to announce that Customs is permitting an 
extension and expansion of the current Remote Location Filing Prototype 
One until the implementation of Remote Prototype Two. Remote Prototype 
Two will be conducted under the National Customs Automation Program 
(NCAP) prototype in the Automated Commercial Environment (ACE). This 
notice also invites public comments concerning any aspect of Remote 
Prototype One, informs interested members of the public of the 
eligibility requirements for voluntary participation in the testing of 
the extension of the first prototype, and describes the basis on which 
Customs will select the additional participants.

EFFECTIVE DATE: The first prototype test which began on June 19, 1995 
will be extended until implementation of the NCAP Prototype, which 
includes Remote Prototype Two, and is scheduled to commence no sooner 
than January 1, 1997. Comments concerning the methodology of the first 
remote filing prototype must be received on or before March 28, 1996. 
To participate in the first prototype test, the necessary information, 
as outlined in this notice, must be filed with Customs on or before 
March 28, 1996.

ADDRESSES: Written comments regarding this notice, and information 
submitted to be considered for voluntary participation in the extension 
of the first prototype should be addressed to the Remote Filing Team, 
U.S. Customs Service, 4455 Genesee Street Room 342, Buffalo, New York 
14225.

FOR FURTHER INFORMATION CONTACT: For systems or automation issues: Russ 
Lanouette (202) 927-0322, or Jackie Jegels (202) 927-0201. For 
operational or policy issues: Linda LeBaron (716) 626-0400 extension 
204.

SUPPLEMENTARY INFORMATION:

Background

    Title VI of the North American Free Trade Agreement Implementation 
Act (the Act), Public Law 103-182, 107 Stat. 2057 (December 8, 1993), 
contains provisions pertaining to Customs Modernization (107 Stat. 
2170). Subtitle B of title VI establishes the National Customs 
Automation Program (NCAP)--an automated and electronic system for the 
processing of commercial importations. Section 631 in Subtitle B of the 
Act creates sections 411 through 414 of the Tariff Act of 1930 (19 
U.S.C. 1411-1414), which define and list the existing and planned 
components of the NCAP (section 411), promulgate program goals (section 
412), provide for the implementation and evaluation of the program 
(section 413), and provide for remote location filing (RLF) (section 
414). Section 101.9(b) of the Customs Regulations (19 CFR 101.9(b)), 
implements the testing of NCAP components. See, T.D. 95-21 (60 FR 
14211, March 16, 1995).
    On April 6, 1995, Customs published a document in the Federal 
Register (60 FR 17605) announcing Customs plan to conduct the first of 
at least two prototype tests regarding remote location filing. The 
document invited public comments concerning any aspect of the test, 
informed interested members of the public of the eligibility 
requirements for voluntary participation in the testing and described 
the basis on which Customs would be selecting participants. The test 
was to commence no earlier than June 1, 1995, and was planned to be run 
for approximately six months. The test began on June 19, 1995.
    On September 12-13, 1995, the Remote Team held an interim 
evaluation session for Remote Prototype One. The group discussed the 
positive and negative aspects of the Remote prototype.
    Positive factors identified were: faster release and other 
processing; facilitation of cargo movement; decrease in need for paper; 
increased cost savings; promotion of service and account based 
processing; and established good partnership between Customs and Trade.
    Negative factors identified as high priority for resolution were:
    1. The test is limited in scenarios, Customs locations, and 
participants;
    2. There are problems or limitations under Customs current 
Automated Commercial System (ACS) as well as uncertainty about the 
specifics of future capabilities under Customs Automated Commercial 
Environment (ACE);
    3. There are issues that revolve around lack of coordination with 
other government agencies and computer interfaces that are incomplete 
or nonexistent;
    4. There is a need for more complete training, cross training, and 
coordination for Customs, trade, and other government agencies.
    After several structured group interview sessions, sub-teams were 
formed with internal and external participants to coordinate ideas and 
assign taskings to address or resolve issues #2-4. These sub-teams will 
remain intact in an effort to move forward with the resolution of the 
factors identified.
    To address the first factor, the Assistant Commissioner, Office of 
Field Operations has approved the extension and expansion of Remote 
Prototype One until the implementation of Remote Prototype Two. Remote 
Prototype Two will be conducted under the ACE/NCAP Prototype umbrella 
and commence no sooner than January 1, 1997. This extension will allow 
for the Remote Team to work on improving systems planning, coordinating 
with other government agencies, and developing better training efforts 
with the benefit of additional scenarios, and an increased volume of 
transactions and participants. In addition, the NCAP Prototype will 
afford the Remote team the opportunity to test Remote under a more 
developed ACE system and within the developing Trade Compliance 
process.
    Please note that participants for Remote Prototype Two will be 
selected under separate criteria to be outlined in a separate NCAP 
Prototype Federal Register notice. Therefore, Remote Prototype One 
participants may or may not qualify for Remote Prototype Two.

I. Description of Proposed Test

The Concept of Remote Location Filing

    Remote Location Filing (RLF) will allow a program participant to 
file electronically an entry of merchandise with Customs from a 
location within the United States other than at the port of arrival or 
location of examination. Due to the nature of this prototype test, 

[[Page 7301]]
certain Customs Regulations pertaining to brokers permits, surety 
bonds, and the entry of merchandise will be suspended.
    Implementation of the extension of the first RLF prototype 
(Prototype One) will begin no sooner than March 29, 1996 and continue 
until the implementation of Remote Prototype Two. Prototype One will 
continue to be conducted with minimal system changes requiring Customs 
and participants to manually intervene in tracking and processing. All 
procedures and processes will be closely coordinated with all selected 
participants and affected parties before implementation.
    The intent of extending this prototype is to continue to test such 
operational issues as communication, cargo movement and release, and 
service to and from remote locations with a greater volume of entry 
transactions and participants.

Regulatory Provisions Suspended

    Certain provisions in Part 111, pertaining to Customs brokers, Part 
113, pertaining to Customs bonds, and Part 141, pertaining to the entry 
of merchandise, of the Customs Regulations (19 CFR Parts 111, 113, and 
141) will continue to be suspended during this prototype test to allow 
remote filings by brokers at locations where they currently do not hold 
permits, and to allow for the movement of cargo from its port of 
arrival to a designated examination site.

II. Eligibility Criteria

    Note that participation in this testing is not confidential 
information. Lists of participants will be made available to the public 
by means of the Customs Electronic Bulletin Board and the Customs 
Administrative Message System, and upon written request.
    In order to qualify for filing from a remote location, a prototype 
participant must have the capability to provide, on an entry-by-entry 
basis, the electronic entry of merchandise; the electronic entry 
summary of required information; the electronic transmission of invoice 
information (ABI/AII or EDIFACT); and the electronic payment of duties 
fees, and taxes (ACH). Other requirements and conditions are as 
follows.
    1. Participants must have operational experience with the Customs 
Electronic Invoice Program (EIP) with ABI/AII or EDIFACT. Please note 
that this prototype is a test of Remote Location Filing and not of EIP;
    2. Participants must be operational on Automated Clearinghouse 
(ACH) 30 days before implementation;
    3. Only entry types 01 (consumption) and 11 (informal) will be 
accepted;
    4. Cargo release must be certified from the entry summary (EI) 
transaction with the exception of immediate delivery, as explained in 
#5;
    5. Participants will be allowed to file Immediate Delivery releases 
for direct arrival road and rail freight at the land border 
(essentially 19 CFR 142.21(a)) with use of paper invoices under Line 
Release, Border Cargo Selectivity (BCS), or Cargo Selectivity (CS). 
Submission of all line items at the time of release will be required of 
northern border filers, if the release is effected using BCS or CS. If 
an examination is required for a line release transaction, the filer 
must submit all relevant line item information through BCS or CS. Under 
BCS and CS, the examination will be performed at the port of arrival 
with the use of paper invoices. If the filer wishes the examination to 
be performed at an alternate site, full entry summary information (EI 
transaction) with electronic invoice must be transmitted;
    6. Participants will not be allowed to file a RLF entry against 
cargo that has been moved in-bond;
    7. Participants will be required to use OGA interfaces where they 
are available; and
    8. If an examination is determined to be necessary, the cargo will 
be examined at the Customs port of arrival, or, at Customs discretion, 
at a filer's requested designated examination site which would be a 
Customs port which is at or nearest the final destination. This 
movement of cargo to a designated examination port will be under the 
importer's bond.
    9. A participant must maintain an average of 1-2 entries per day 
throughout the testing period.
    10. Locations available for prototype participation are those ports 
currently operational with the Remote test for release and summary 
processing. It is possible, however, that additional ports may be 
added.
    The following are locations currently operational under the Remote 
test: (POA indicates port of arrival, ESP indicates summary processing 
location, and DES indicates designated examination site).

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               DDDP location                Electronic processing status
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0901 Buffalo..............................  ESP.                        
0903 Rochester............................  DES, ESP done in 0901.      
1001 NY Seaport...........................  POA, DES, ESP.              
1303 Baltimore............................  POA, DES, ESP.              
2704 Los Angeles..........................  POA, DES, ESP.              
4601 Newark...............................  POA, DES, ESP.              
4701 JFK..................................  POA, DES, ESP.              
5501 Dallas...............................  DES, ESP done in 2704.      
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Prototype One Applications

    This notice requests importers, or brokers on behalf of importers, 
to voluntarily apply for participation in Prototype One extension by 
submitting the following information to the Remote Filing Team, U.S. 
Customs Service, 4455 Genesee Street, Room 342, Buffalo, New York 14225 
on or before the date set forth in the effective date paragraph at the 
beginning of this notice:
    1. Name, address, and filer code of importer and, if applicable, 
broker.
    2. Supplier/Vendor name, address, and manufacturer's number.
    3. Types of commodities to be imported (high volume Harmonized 
Tariff numbers).
    4. Other agency requirements.
    5. Port(s) of arrival.
    6. Designated examination site(s) (location nearest the final 
destination).
    7. Monthly volume anticipated.
    8. Requested entry summary processing location(s), if different 
from port of arrival.
    9. Electronic Invoicing Program status and projected start date.
    10. Electronic Payment (ACH) status and projected start date.
    11. Main contact person and telephone number for participation 
questions.
    12. Any comments on prototype participation.

Basis For Participant Selection

    Eligible importers or importers with brokers will be considered for 
selection as participants in the Prototype One extension. Customs is 
looking for a variety of circumstances and participants in this first 
prototype. We stress that those not selected for participation will be 
invited to comment on the design, conduct, and evaluation of this 
prototype. Selection will be based on Customs EIP operational 
experience, volume anticipated, electronic abilities, and available 
electronic interfaces with other agency's import requirements. 
Participants selected will be notified in writing and selections will 
be announced by means of the Customs Electronic Bulletin Board and the 
Customs Administrative Message System.

III. Test Evaluation Criteria

    Once participants are selected, the Remote Filing Team will review 
all public comments received concerning any aspect of the prototype, 
enhance 

[[Page 7302]]
procedures in light of those comments, and form problem-solving teams.
    Upon conclusion of the prototype the final results will be 
published in the Federal Register as required by Sec. 101.9(b), Customs 
Regulations and reported to Congress.

    Dated: February 21, 1996.
Samuel H. Banks,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 96-4425 Filed 2-26-96; 8:45 am]
BILLING CODE 4820-02-P