[Federal Register Volume 62, Number 77 (Tuesday, April 22, 1997)]
[Proposed Rules]
[Pages 19534-19536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10273]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 142

RIN 1515-AB27


Publication of Entry Filer Codes

AGENCY: Customs Service, Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations to 
provide for the annual publication by electronic means of the code 
assigned by Customs to identify frequent entry filers. This proposal is 
consistent with the efforts to modernize the Customs Service and the 
documentation related to imports. The proposal will assist components 
of the trade industry in controlling import transactions and in serving 
their clients among the importing public. It is anticipated that, if 
promulgated as a final rule, the proposal will reduce the paperwork 
burden on the affected public and the administrative burden on the 
Customs Service.

DATES: Comments must be received on or before June 23, 1997.

ADDRESSES: Comments (preferably in triplicate) may be addressed to the 
Regulations Branch, U.S. Customs Service, Franklin Court, 1301 
Constitution Avenue, NW, Washington, D.C. 20229, and may be inspected 
at Franklin Court, 1099 14th Street, NW, Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Ray Janiszewski, Office of Trade 
Compliance, (202) 927-0365 (Operational matters), or Paul Hegland, 
Entry and Carrier Rulings Branch, Office of Regulations and Rulings, 
(202) 482-7040 (Legal matters).

SUPPLEMENTARY INFORMATION:

Background

    Generally, all merchandise brought into the United States is 
required to be ``entered'', unless specifically excepted from entry. 
The entry process consists of the importer of record, using reasonable 
care: (1) filing with Customs the documentation necessary for Customs 
to determine whether the merchandise may be released from Customs 
custody (``an entry'') and (2) completing the entry by filing the 
declared value, classification and rate of duty applicable to the 
merchandise, and such other information or documentation as is 
necessary to enable Customs to properly assess duties on the 
merchandise, collect accurate statistics with regard to the 
merchandise, and determine whether any other applicable requirement of 
the law is met (``an entry summary''). Generally, an entry is required 
within 5 working days after the arrival of the importing conveyance. 
The person making entry (by filing the required documentation) is 
required by law to be the owner or purchaser of the merchandise or, if 
appropriately designated by the owner, purchaser, or consignee of the 
merchandise, a licensed customs broker.
    As a part of its Automated Commercial System (ACS), Customs assigns 
a unique 3 character (alphabetic, numeric, or alpha numeric) entry 
filer code to all licensed broker companies filing Customs entries and 
to certain other importers filing Customs entries, based on the volume 
and frequency of filing and other considerations. These entry filer 
codes are not assigned to intermittent importers, who obtain from 
Customs forms with Customs-assigned pre-printed entry numbers. The 
entry filer is required to place the filer code, along with a unique 
(to each entry) number and a check digit on each entry. This entry 
number (consisting of 11 characters) is used by Customs and the 
importer to identify the particular entry. This procedure of assigning 
entry filer codes was implemented in the Customs Regulations (see 19 
CFR 142.3a) by Treasury Decision (T.D.) 86-106, published in the 
Federal Register on May 28, 1986 (51 FR 19166).
    Entries of merchandise are reviewed by Customs. Under the law, 
Customs is responsible for fixing the final appraisement of the 
merchandise and the determination of applicable duty and admissibility. 
``Liquidation'' is the final determination by Customs on the 
dutiability and admissibility of imported merchandise. Customs is 
required by law to give notice of liquidation to the importer, his 
consignee, or agent, as prescribed by regulations. The pertinent 
regulations require this notice to be made on a bulletin notice of 
liquidation, Customs Form 4333 (19 CFR 159.9).

[[Page 19535]]

    The importer of record is named on the bulletin notice of 
liquidation for each entry (the entry is listed by number). As noted 
above, after the implementation in the Customs Regulations in 1986 of 
Customs procedures for the assignment of entry filer codes, the entry 
filer code in each entry identifies the entry filer.
    On January 13, 1993, in a document published in the Federal 
Register (58 FR 4113), Customs announced in an Advance Notice of 
Proposed Rulemaking (ANPRM) that it was considering the amendment of 
the Customs Regulations to provide for the publication of a list of 
filer codes and the identity of the individuals, licensed Customs 
brokers, or importers assigned the specific filer codes. Customs stated 
that this action would improve control for various components of the 
trade community and reduce numerous questions and problems for Customs 
relating to entry processing requirements. Customs noted that 
publication of the filer codes with the persons assigned the codes 
might be considered to provide a means for the public to gain access to 
commercial information regarding import transactions which Customs had 
heretofore treated as confidential. This publication of filer codes 
will also enable brokers to identify those importers who are not using 
their services.

Revised Policy Regarding Confidential Treatment

    The Advance Notice of Proposed Rulemaking solicited comments. 
Twenty letters were received, many of them setting forth similar 
comments. Several of the comments received addressed Customs policy 
providing for confidentiality of filer codes as set forth in T.D 88-38. 
The comments have caused Customs to review and examine this policy. 
This review has led Customs to revise its position so that the current 
position that Customs holds is that filer code information should be 
considered public information. Customs has reached this determination 
after a comprehensive review of the overall operational situation in 
the commercial environment. In this review, Customs found that in spite 
of its attempts to protect the identities of importers, there were many 
instances where this effort had been compromised and the identities of 
importers and their filer codes are readily available to those who 
might be seeking such information. Because of the general availability 
of this information in the commercial arena, Customs does not believe 
that a continuation of its efforts to treat the information as 
confidential is either necessary or warranted. Customs believes that 
the comments received from brokers and carriers indicate that the 
benefits claimed by giving broader dissemination of the information 
support the proposal to publish the filer codes. Customs believes that 
the concerns expressed by commenters in regard to the need to treat 
filer code information as confidential are not warranted. Because of 
this policy determination, it is Customs intention to revoke that 
portion of T.D. 88-38 which provides for confidential treatment of 
filer codes upon the request of an importer if the accompanying 
proposed rule is finalized.

Discussion of Comments

    The following is a summary discussion of additional comments which 
were received by Customs in response to the Advanced Notice of Proposed 
Rulemaking, and Customs response to those comments.
    Comment: The Customs brokers and the brokers association who 
commented supported the proposal, stating that identifying filers with 
filer codes would assist brokers in helping members of the public who 
use multiple brokers and in re-routing documentation and inquiries 
which have been incorrectly routed. One of these commenters suggested 
that publication should be through Customs Automated Commercial System 
(ACS), with provision made for release of the information to those who 
do not have access to ACS by Freedom of Information Act request. This 
commenter suggested this means of publication in lieu of publication in 
the Customs Bulletin.
    Response: Customs agrees with the reasons given for support of the 
proposal, as consistent with the reasons given in the advance notice. 
As for the suggestion on the means of publication of the filer code 
information, there is not currently a program supported in ACS for such 
publication. Consideration will be given to developing such a 
capability in ACS if sufficient interest is shown. For the present, 
Customs is proposing publication of the filer code information on the 
Customs Electronic Bulletin Board.
    Comment: The carriers and carrier associations who commented 
supported the proposal. One reason given for support was that carriers 
need this information to assist in the cargo release process (i.e., 
carriers could clear up discrepancies much more rapidly if they could 
more easily identify the parties involved). Another reason was that the 
information provided under the proposal would enable carriers to 
complete the manifest requirements, particularly carriers who are a 
part of Customs Automated Manifest System (AMS) (i.e., in that a 
carrier could more easily identify and contact a filer in the event of 
a discrepancy).
    Response: Customs agrees. This is consistent with the reasons given 
for the proposal in the advance notice.
    Comment: The sureties and surety associations who commented 
supported the proposal, on the basis that it will help automation and 
would enable sureties to more efficiently contact ``brokers of record'' 
in the event of discrepancies.
    Response: Customs agrees. This is consistent with the reasons given 
for the proposal in the advance notice.
    Comment: A trade association supported the proposal, on the basis 
that it would contribute significantly to the simplification of U.S. 
trade documentation.
    Response: Customs agrees. This is consistent with the reasons given 
for the proposal in the advance notice.
    Comment: A government agency supported the proposal, on the basis 
that it could use the information which would be provided under the 
proposal to obtain the status of a filer's entry and to communicate 
with the filer.
    Response: Customs agrees. This is consistent with the reasons given 
for the proposal in the advance notice.
    Comment: An association representing Customs bonded warehouses 
supported the proposal, on the basis that it would help warehouse 
proprietors to supply missing information or correct errors and to 
avoid liquidated damages on warehouse custodial bonds. On the issue of 
confidentiality, the commenter stated that it sees no difference 
between the proposed publication and that of the names of operators of 
bonded warehouses.
    Response: Customs agrees with the reasons given for support of the 
proposal, as being consistent with the reasons given for the proposal 
in the advance notice. Customs has addressed that portion of the 
comment concerning confidentiality earlier in this document.
    Comment: Three trade or industry associations either conditionally 
supported the proposal or did not object to it, provided that filers 
who desired confidentiality could request it. The commenters suggested 
the use of a procedure similar to the provision requesting confidential 
treatment of manifest information in 19 CFR 103.14(d). The reason given 
by one of these associations for its conditional support of the 
proposal was that it

[[Page 19536]]

would facilitate movement of cargo and could reduce costs.
    Response: Customs agrees with the reason given for support of the 
proposal, as being consistent with the reasons given for the proposal 
in the advance notice. As to the suggestion that filers who desired 
confidentiality should be able to request such treatment, similar to 
the provision for parties requesting confidential treatment of manifest 
information, Customs finds this suggestion to be without merit. It is 
Customs position that the filer codes are public information and, as 
such, cannot be accorded confidential treatment.
    Comment: Three importers either opposed the proposal or suggested 
that its implementation be delayed. The reasons given for opposition 
to, or the delay of, the proposal were that the proposal would result 
in the disclosure of confidential business information and that no good 
reason was given for the proposal.
    Response: Customs believes that good reasons were given in the 
advance notice for this proposal, and that the reasons set forth in 
comments received from Customs brokers, carriers and sureties 
supporting the proposal provide further support for the proposal. 
Regarding the confidentiality issue, as indicated above, Customs 
believes that the filer code information is not confidential.

Proposal

    After reviewing the comments to the ANPRM and further 
consideration, Customs has determined to proceed with the proposal to 
amend the regulations to provide for the annual publication of the 
identity of the code assigned by Customs to identify frequent entry 
filers on the Customs Electronic Bulletin Board, without providing for 
confidential treatment of filer identity.

Comments

    Before adopting this proposal, consideration will be given to any 
written comments (preferably in triplicate) that are timely submitted 
to Customs. Comments submitted will be available for public inspection 
in accordance with the Freedom of Information Act (5 U.S.C. 552), 
Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and 
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular 
business days between the hours of 9:00 a.m. and 4:30 p.m. at the 
Regulations Branch, U.S. Customs Service, Franklin Court, Suite 4000, 
1099 14th Street, NW, Washington, D.C.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Regulatory Flexibility Analysis

    Because adoption of the proposed amendment will improve access to 
frequently needed information for the commercial community without any 
action on its part, pursuant to the provisions of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.), it is certified that the 
proposed amendment, if adopted, will not have a significant economic 
impact on a substantial number of small entities. Accordingly, it is 
not subject to the regulatory analysis or other requirements of 5 
U.S.C. 603 and 604.

List of Subjects in 19 CFR Part 142

    Customs duties and inspection, Imports, Reporting and recordkeeping 
requirements.

Proposed Amendment

    It is proposed to amend Part 142, Customs Regulations (19 CFR Part 
142), as set forth below:

PART 142--ENTRY PROCESS

    1. The authority citation for Part 142, Customs Regulations (19 CFR 
Part 142), continues to read as follows:

    Authority: 19 U.S.C. 66, 1448, 1484, 1624.

    2. It is proposed to amend Sec. 142.3a by redesignating paragraphs 
(c) and (d) as paragraphs (d) and (e), respectively, and by adding a 
new paragraph (c) to read as follows:


Sec. 142.3a  Entry numbers.

* * * * *
    (c) Publication of Entry Filer Codes. The Customs Service shall 
make available annually by electronic means on the Customs Electronic 
Bulletin Board a listing of filer codes and the importers, consignees, 
and Customs brokers assigned those filer codes.
* * * * *
George J. Weise,
Commissioner of Customs.

    Approved: November 22, 1996.
Dennis M. O'Connell,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 97-10273 Filed 4-21-97; 8:45 am]
BILLING CODE 4820-02-P