[Federal Register Volume 61, Number 231 (Friday, November 29, 1996)]
[Notices]
[Pages 60749-60752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30501]


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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 announces Customs plan to conduct a second 
prototype test of remote location filing. This notice invites public 
comments concerning any aspect of the planned test, informs interested 
members of the public of the eligibility requirements for voluntary 
participation, describes the basis for selecting participants, and 
establishes the process for developing evaluation criteria. To 
participate in the prototype test, the necessary information, as 
outlined in this notice, must be filed with Customs and approval 
granted. It is important to note that resources expended by the trade 
and Customs on these prototypes may not carry forward to the final 
program.

EFFECTIVE DATE: The test of the second prototype will commence no 
earlier than January 1, 1997, and will run for approximately one year, 
and may be extended. Comments concerning any

[[Page 60750]]

aspect of the remote filing prototype test must be received on or 
before December 30, 1996.
ADDRESSES: Written comments regarding this notice, and information 
submitted to be considered for voluntary participation in the prototype 
should be addressed to the Remote Filing Team, U.S. Customs Service, 
1301 Constitution Avenue, NW., Room 1322, Washington, D.C. 20229-0001.

FOR FURTHER INFORMATION CONTACT:

For systems or automation issues: Joseph Palmer (202) 927-0173, or 
Patricia Welter (202) 927-0775
For operational or policy issues: Troy Riley (202) 927-0256, or Bonnie 
Brigman (202) 927-0294

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). These 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 (section 414). 
Remote Location Filing (RLF) will allow a participant to file 
electronically a formal or informal consumption entry with Customs from 
a location within the United States other than the port of arrival 
(POA) or the designated exam site (DES). 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).
    Since June 1994, the Customs Remote Team has shared the Customs RLF 
concept through many public meetings and concept papers, and posted 
information on the Customs Electronic Bulletin Board and the Customs 
Administrative Message System. Pursuant to Sec. 101.9, Customs 
Regulations, Customs has been testing the RLF concept. On April 6, 
1995, Customs announced in the Federal Register (60 FR 17605) its plan 
to conduct the first of at least two prototype tests regarding RLF. The 
first test (Prototype One) began on June 19, 1995. On February 27, 
1996, Customs announced in the Federal Register (61 FR 7300) that it 
was permitting an extension and expansion of the RLF Prototype One 
until the implementation of Remote Prototype Two. In today's document, 
Customs is announcing its plan to conclude the first prototype test on 
December 31, 1996, and conduct a second prototype test of RLF 
commencing no earlier than January 1, 1997. The first remote location 
prototype test was offered in the Automated Commercial System (ACS). 
Although the second remote prototype test was originally scheduled to 
be tested in the Automated Commercial Environment (ACE), the success of 
Prototype One precipitated this second test under the Automated 
Commercial System (ACS) with a larger participant pool.
    The first RLF prototype (Prototype One) will conclude December 31, 
1996. Prototype One was conducted with a very limited number of 
participants at limited locations. It was conducted with minimal system 
changes thereby requiring Customs to intervene manually in tracking and 
processing. All procedures and processes were closely coordinated with 
all selected and affected parties. The intent of Prototype One was to 
test such operational issues as communication, cargo movement and 
release, and service to and from remote locations. Prototype One tested 
features such as filing from a remote location, alternate exam 
location, and entry summary workload distribution.
    Additional prototypes of RLF are being developed by Customs to 
determine the systemic and operational design of the final RLF program 
which will allow all filers to participate in this type of entry 
process at a national level. Prototype participants must recognize that 
these prototypes test the benefits and potential problems of RLF for 
Customs, the trade community, and other parties impacted by this 
program.

Description of RLF Program

    The RLF program will be determined by the experiences of the 
planned remote prototypes and with other Customs initiatives such as 
the Reorganization, Automated Commercial Environment (ACE), and Trade 
Compliance Redesign. The Customs RLF team's objectives are:
    (1) To work with the trade community, other agencies, and other 
parties impacted by this program in the design, conduct and evaluation 
of a second prototype test of RLF;
    (2) To obtain experience through prototype tests of RLF for use in 
the design of operational procedures, automated systems, and 
regulations and
    (3) To implement RLF on a national level in conjunction with the 
Trade Compliance Redesign, and the Automated Commercial Environment.

Description of Proposed Test

    The second remote prototype test (Prototype Two) is scheduled to 
commence no sooner than January 1, 1997, and will run until December 
31, 1997, unless Customs exercises its option to extend the test an 
additional year. Prototype Two will evaluate the operational impact and 
procedures for a larger participant base, testing filing from a remote 
location, and alternate location examinations. Prototype Two will not 
offer the entry summary workload distribution part of RLF as tested in 
Prototype One.

Regulatory Provisions Suspended

    Certain provisions in Part 111 and Part 141 of the Customs 
Regulations will be suspended during this prototype test to allow 
remote filing by brokers in ports (broker districts per 60 FR 187, 
pages 49971-49974), 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.

Eligibility Criteria

    Note that participation in RLF Prototype Two is not confidential, 
and that lists of participants will be made available to the public.
    To qualify, a participant must have proven capability to provide 
electronically, on an entry-by-entry basis, the following: entry; entry 
summary; invoice information using the Electronic Invoice Program 
(EIP); and payment of duties, fees, and taxes through the Automated 
Clearing House (ACH).
    The following additional requirements and conditions apply:
    1. The requested Customs locations must have operational experience 
with the Customs Electronic Invoice Program (EIP), and have received 
RLF training.

RLF Trained Locations

    The following are locations currently operational under the RLF 
Prototype One test: (POA indicates port of arrival, and DES indicates 
designated examination site).

------------------------------------------------------------------------
               DDPP location                         RLF status         
------------------------------------------------------------------------
0712 Champlain-Rouses Point...............  POA, DES                    
0901 Buffalo..............................  POA, DES                    
0903 Rochester                              DES                         
090# Utica/Syracuse.......................  POA, DES                    
1001 NY Seaport...........................  POA, DES                    

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1303 Baltimore............................  POA, DES                    
230# Laredo/Eagle Pass....................  POA, DES                    
2704 Los Angeles..........................  POA, DES                    
3801 Detroit..............................  POA, DES                    
3802 Port Huron...........................  POA, DES                    
4601 Newark...............................  POA, DES                    
4701 JFK..................................  POA, DES                    
5501 Dallas...............................  DES                         
------------------------------------------------------------------------

    After the prototype begins, additional ports that are operational 
with EIP release and summary processing will be trained in RLF 
processing if there is significant interest.

EIP Locations

    The following locations are currently operational with EIP, and 
would require appropriate RLF training to become eligible for 
participation as a POA, DES, or both.
    S/P indicates an entry summary processing location which could be 
eligible as a POA. R/P indicates a release processing location, which 
could be eligible as a DES.

------------------------------------------------------------------------
               DDPP location                         EIP status         
------------------------------------------------------------------------
0101 Portland ME..........................  S/P                         
0106 Houlton ME...........................  R/P                         
0115 Calais ME............................  R/P                         
0401 Boston...............................  R/P, S/P                    
0901 Buffalo..............................  R/P, S/P                    
0903 Rochester............................  R/P                         
1001 New York Seaport.....................  R/P, S/P                    
1101 Philadelphia.........................  R/P, S/P                    
1102 Chester PA...........................  R/P                         
1103 Wilmington DE........................  R/P                         
1108 Philadelphia Arprt...................  R/P                         
1303 Baltimore Seaport....................  R/P, S/P                    
1401 Norfolk..............................  R/P, S/P                    
1601 Charleston...........................  R/P                         
1703 Savannah.............................  R/P                         
1803 Jacksonville.........................  R/P                         
2002 New Orleans..........................  R/P                         
2304 Laredo...............................  R/P, S/P                    
2704 Los Angeles..........................  R/P, S/P                    
2720 Los Angeles Arprt....................  R/P, S/P                    
2809 San Francisco........................  R/P                         
3001 Seattle..............................  R/P                         
3701 Milwaukee............................  R/P                         
3801 Detroit..............................  R/P S/P                     
3901 Chicago..............................  R/P                         
4101 Cleveland............................  S/P                         
4102 Cincinnati...........................  R/P                         
4115 Louisville...........................  R/P                         
4601 Newark...............................  R/P, S/P                    
4701 JFK..................................  R/P, S/P                    
5201 Miami................................  R/P, S/P                    
5203 Port Everglades......................  R/P                         
5206 Miami Airport........................  R/P                         
5301 Houston..............................  R/P                         
------------------------------------------------------------------------

    2. Participants must be operational on the Automated Clearing House 
(ACH) 30 days before applying for Prototype Two.
    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 explained in #5.
    5. Participants will be allowed to file Immediate Delivery releases 
for direct arrival road and rail freight at the land border using paper 
invoices under Line Release, Border Cargo Selectivity (BCS), or Cargo 
Selectivity (CS). This must be done in accordance with 19 CFR 
142.21(a). 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 using 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 an RLF involving cargo 
that has already been moved using in-bond procedures.
    7. Participants will be required to use other government agency 
(OGA) interfaces where available.
    8. When necessary, cargo will be examined at the Customs port of 
arrival, or, at Customs discretion, a filer's requested designated 
examination site (DES), which must be the Customs port nearest the 
final destination. The scheduling (approval) of merchandise for 
examination at a DES that is not at the port of arrival will be 
considered a conditional release under permit that automatically 
obligates the importer's bond pursuant to 19 CFR 113.62 for an 
immediate redelivery to the DES. This Federal Register Notice advises 
the importer of record for such merchandise that this movement is a 
redelivery and he/she will not receive an individual notice of 
redelivery, Customs Form 4647, and that the redelivery clause of the 
importers bond is automatically triggered whenever Customs examines the 
merchandise at a DES that is not at the port of arrival.
    9. If a notice of redelivery is not complied with, or delivery to 
unauthorized locations, or delivery to the consignee without Customs 
permission occurs, the obligors agree to pay liquidated damages in the 
amount specified pursuant to the bond in 19 CFR 113.62 (f).
    Customs will work with all participants to ensure that:
    (1) Customs contacts and problem solving teams are established, and
    (2) Procedures for remote entry and entry summary processing are 
prepared.

Prototype Two Applications

    This notice solicits applications for participation in Remote 
Location Filing Prototype Two. There are two distinct application 
procedures, which depend upon the status of the applicant. One process 
applies to importers and to brokers acting on behalf of their clients. 
The other process is for brokers applying on their own behalf.
    All applications must initially be submitted to the U.S. Customs 
Service, 1301 Constitution Avenue, N.W. Room 1322, Washington, D.C. 
20229-0001. Applications will be accepted up to 30 days before the 
close of Prototype Two.

Importers/Brokers on Behalf of Clients

    These applications must be submitted to the U.S. Customs 
Headquarters (address cited above) with the following information:
    1. Importer name and, if applicable, broker name, address, and 
filer code;
    2. Supplier name, address, and manufacturer's number;
    3. Types of commodities to be imported;
    4. Other agency requirements;
    5. Port(s) of arrival;
    6. Designated examination site(s) (location nearest the final 
destination);
    7. Monthly volume anticipated;
    8. Electronic Invoicing Program status and starting date;
    9. Electronic Payment (ACH) status and starting date;
    10. Main contact person and telephone number.

Brokers as Applicants

    This application process will be done in two steps. During the 
first step the broker must submit the following information to the U.S. 
Customs Headquarters (address cited above):
    1. Broker name, address, filer code and IRS#;
    2. Experience with EIP;
    3. Sites from which the broker will be transmitting the electronic 
information;
    4. Type of protocol: AII, EDIFACT or both;
    5. Point of contact.
    Once a broker has received written approval from U.S. Customs 
Headquarters to proceed with the second step of the application 
process, the broker will submit the following information to the Port 
Director(s) overseeing each requested POA and DES location for each 
client (importer):
    1. Participating client name and Importer Number;
    2. Supplier name, address, and manufacturer's number;
    3. Types of commodities to be imported;

[[Page 60752]]

    4. Other agency requirements;
    5. Port(s) of arrival;
    6. Designated examination site(s) located nearest the final 
destination(s);
    7. Monthly entry volume anticipated;
    8. Electronic Invoicing Program status and starting date;
    9. Electronic Payment (ACH) status and starting date;
    10. Main contact person and telephone number of filer.

Basis for Participant Selection

    The basis for applications approved by Customs Headquarters will be 
EIP operational experience, electronic abilities, available electronic 
interfaces with other agency's import requirements, and operational 
limitations. The basis for applications being approved or denied by the 
Port Director(s) will involve issues such as impact on available 
resources, commodity requirements and if the port has been trained in 
EIP/RLF.
    For brokers applying on their own behalf, the Port Director has 10 
working days after the receipt of the second step in the application 
process to approve or deny the application. Written approval or denial 
of the second step of the broker application process will be sent to 
the applicant from the Port Director. If the Port Director denies the 
second step of the broker application, that denial is effective for 10 
working days. After that, a new request may be submitted to the Port 
Director at the Port of Arrival and the Designated Examination Site. If 
the applicant does not receive a reply from the Port Director within 10 
working days from the date of submission, the application should be 
considered denied. Those applicants not selected for participation by 
U.S. Customs Headquarters will be sent a letter of denial. They will, 
however, be invited to comment on the design, conduct, and evaluation 
of this prototype.
    Current Remote Prototype One participants who wish to apply are 
required to submit a letter requesting the continuation of their 
participation under Prototype Two. Participants selected will be 
notified by means of the Customs Electronic Bulletin Board, the Customs 
Administrative Message System and in writing.

Dismissal from Prototype Two

    If a filer attempts to submit data relating to restricted 
merchandise or merchandise subject to quota, anti-dumping duties, 
countervailing duties, or other non-eligible data through the 
Electronic Invoice Program, the filer may be expelled from the program, 
prevented from participation in future RLF prototypes, and may be 
subject to penalties under section 592, Tariff Act of 1930, as amended 
(19 U.S.C. 1592).

III. Test evaluation criteria

    Once participants are selected, Customs and the participants will 
meet publicly or in an electronic forum to review comments received 
concerning the methodology of the test program or procedures, complete 
procedures in light of those comments, and establish baseline measures 
and evaluation methods and criteria. Evaluations of the prototype will 
be conducted and the final results will be published in the Federal 
Register as required by Sec. 101.9(b), Customs Regulations.
    The following evaluation methods and criteria have been identified.
    1. Baseline measurements will be established through data queries 
and questionnaires.
    2. Reports will be run through use of data query throughout the 
prototype.
    3. Questionnaires will be distributed during and after the 
prototype period. Participants are required to complete the 
questionnaires in full and return them within 30 days of receipt.
    Customs may evaluate any or all of the following items:
     Workload impact (workload shifts, volume, etc.);
     Policy and procedural accommodation;
     Trade compliance impact;
     Alternate exam site issues (workload shift, coordination/
communication, etc.);
     Problem solving;
     System efficiency;
     The collection of statistics.
    The trade will be responsible for evaluating the following items:
     Service in cargo clearance;
     Problem resolution;
     Cost benefits;
     System efficiency;
     Operational efficiency;
     Other items identified by the participant group.
    In conclusion, it is emphasized that if a company is interested in 
filing remotely, it must first be operational with the Electronic 
Invoicing Program (EIP). For information on the Electronic Invoicing 
Program (EIP), please contact your ABI Client Representative.

    Dated: November 25, 1996.
Robert S. Trotter,
Acting Assistant Commissioner Office of Field Operations.
[FR Doc. 96-30501 Filed 11-27-96; 8:45 am]
BILLING CODE 4820-02-P