[Federal Register Volume 64, Number 144 (Wednesday, July 28, 1999)]
[Rules and Regulations]
[Pages 40984-40988]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19177]



[[Page 40983]]

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Part IV

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Department of the Treasury





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Customs Service



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19 CFR Parts 4, 101, 178, and 192



Automated Export System (AES); Final Rule

  Federal Register / Vol. 64, No. 144 / Wednesday, July 28, 1999 / 
Rules and Regulations  

[[Page 40984]]



DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 4, 101, 178, and 192

[T.D. 99-57]
RIN 1515-AC42


Automated Export System (AES)

AGENCY: Customs Service, Treasury.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document amends the Customs Regulations to make provision 
for the Automated Export System (AES)--an electronic reporting system 
jointly developed by the Bureau of the Census (Census) and Customs that 
allows exporters to transmit commodity information contained on 
Shipper's Export Declarations and sea carriers to transmit outbound 
vessel manifest information. These amendments generally describe the 
AES, cross-referencing the applicable Census Regulations that will 
provide for the AES. They also set forth the criteria by which Customs 
will determine whether to approve an exporter for the option to 
transmit commodity information through AES after the carrier has left 
the United States (post-departure) and the appeal procedures for AES 
exporters if Customs denies the exporter the post-departure option; or, 
if Customs approves the post-departure option for the AES exporter, the 
grounds for revocation of the use of the option and the appeal 
procedures if Customs revokes the use of that option. This document 
also provides for the Sea Carrier's Module in the AES.
    These regulatory changes are designed to help exporters that 
utilize the AES realize the benefits of fewer delays in the processing 
of export information by Customs due to missing paperwork, and to 
provide for fewer and faster inspections of export shipments as well as 
reduced administration costs due to automation.

EFFECTIVE DATE: July 28, 1999.

FOR FURTHER INFORMATION CONTACT: Maritza Castro, (202) 927--0724, 
Office of Field Operations, Outbound Programs.

SUPPLEMENTARY INFORMATION:

Background

    On February 12, 1999, Customs--in conjunction with the Bureau of 
the Census (Census)--published a document in the Federal Register (64 
FR 7422) that proposed to amend the Customs Regulations to allow for 
the Automated Export System (AES), an electronic reporting system 
jointly developed by Census and Customs that allows exporters to 
transmit commodity information contained on Shipper's Export 
Declarations (SEDs) and sea carriers to transmit outbound vessel 
manifest information. In that document, Customs proposed to add a new 
subpart B in part 192 of the Customs Regulations, which pertains to 
Export Control, to generally describe the AES, cross-referencing 
proposed Census Regulations providing for the AES which were published 
in the same issue of the Federal Register (64 FR 7412). The document 
also proposed criteria by which Customs would determine whether to 
approve an exporter for the AES option to transmit commodity 
information after the carrier has left the United States (post-
departure) and the appeal procedures for AES exporters if Customs 
denies the exporter the post-departure option, or, if Customs has 
approved the post-departure option for an AES exporter, the grounds for 
revocation of the use of the option and the appeal procedures if 
Customs revokes the use of the option.
    The document also proposed to create a new Sec. 4.76 in the Customs 
Regulations (19 CFR 4.76) providing for the Sea Carrier's module in the 
AES.
    Customs also proposed to revise the authority citation for part 192 
to more clearly show the statutory basis of Customs authority to 
collect and examine manifest and export data information.
    Customs also used the notice document as the vehicle to propose an 
amendment to the general provisions of part 101 of the Customs 
Regulations to include a definition of the term ``business day.'' While 
the term ``business days'' was used in that document in reference to 
filing times for sea carriers, the proposed definition would be 
applicable wherever the term is used throughout the Customs Regulations 
(19 CFR).
    These regulatory changes were proposed to help exporters that 
utilize the AES realize the benefits of fewer delays in the processing 
of export information by Customs due to missing paperwork, and to 
provide for fewer and faster inspections of export shipments as well as 
reduced administration costs due to automation. Comments were solicited 
on the proposed regulations in general and on the economic impact of 
transmitting booking information on small carriers in particular.
    The comment period closed April 13, 1999; three comments were 
received, one being forwarded from Census. The comments and Customs 
responses are set forth below.

Analysis of Comments

    All of the comments received concern the general requirements for 
the AES proposed by the Census Regulations in their document; none of 
the comments received concern the Sea Carrier's Module in AES, which 
was the thrust of the subject matter proposed in the Customs document. 
No comments were received on the economic impact on small carriers of 
transmitting booking information.

Time Frame for Submitting Outstanding Data

    Comment: One commenter questions why Option 3 filers are given only 
5 days to submit outstanding data required to be filed when Option 4 
filers are allowed 10 days and inquiries of the compelling reason for 
this disparity. Although the commenter states that the AES proposed 
rules--published by Census--accurately represented the four options 
agreed upon in the Interest Based Negotiations (IBN) between Census, 
Customs, and the trade community, the commenter goes on to state that 
Option 3 filers have the same invoicing and documentation problems as 
Option 4 filers and that the two filing classes should have the same 
time frames for submitting outstanding data required to be filed. This 
comment concerns Secs. 30.61(b) and (c) of the proposed Census 
Regulations.
    Customs Response: The reason Option 4 filers are allowed an 
additional 5 days to submit outstanding export data required to be 
filed is because Option 4 privileges are granted only to pre-approved 
exporters who have provided approving agencies with basic business 
information, such as type of merchandise, method of operation, and 
volume. Since this business data is on file prior to departure, the 
risk factor for Option 4 shipments is minimized. Filers with Option 3 
status, on the other hand, do not have such business data on file, nor 
do they require any prior approval from an agency. Since Option 3 
filing status is available to any AES commodity filer, the risk factor 
for Option 3 shipments is greatly increased. The tighter time frame for 
reporting full data is designed to provide a level of control, 
minimizing the risk for shipments which might require redelivery, or 
for which subsequent data is filed late or not at all. It should also 
help ensure a better workflow and more timely submission of crucial 
trade data.
    Census has indicated that no change will be made to their 
regulations based on their analysis of this comment. Customs agrees 
with Census.

[[Page 40985]]

Option 4 Privileges and Shipments Required To Be Filed With Full 
Predeparture Information

    Comment: Two commenters question why filers who are approved for 
Option 4 to transmit all export information post-departure should be 
required to transmit any export information predeparture under Option 2 
or 3. Option 4 is not permitted for specific types of shipments, such 
as those requiring export licenses. These commenters believe that 
Option 4 was conceived as a ``blanket'' process for an exporter to 
submit all data post-departure and do not see the need, even when an 
export requires an export license, for predeparture reporting for 
Option 4 filers, since the license itself is permission to export. 
(Emphasis in comment). This comment concerns Secs. 30.61(a) and (c) of 
the proposed Census Regulations.
    Customs Response: This comment reflects confusion concerning the 
scope of Option 4 privileges. Option 4 filing privileges extend only to 
pre-approved filers, and then only for qualified shipments. An 
exporter's status as an approved Option 4 filer under Sec. 30.61(c) of 
the Census Regulations does not negate the restrictions imposed when 
exporting specifically exempted shipments, identified under 
Sec. 30.61(a) of the Census Regulations, or shipments requiring an 
export license. The specific types of shipments requiring full 
predeparture information under AES Option 2 are: (1) Used, self-
propelled vehicles; (2) essential and precursor chemicals requiring a 
permit from the Drug Enforcement Administration; (3) shipments defined 
as ``sensitive'' by Executive Order; and (4) shipments where full 
export information is required prior to exportation by a Federal 
government agency. It would be the responsibility of that government 
agency to approve filers to use Option 4 for those shipments.
    Census has indicated that no change will be made to their 
regulations based on their analysis of this comment. Customs agrees 
with Census.

Option 4 Filing Status & the Export of Used, Self-Propelled Vehicles

    Comment: One commenter requests that Sec. 30.61 of the Census 
Regulations be modified to allow approved exporters to report the 
export of used, self-propelled vehicles in AES under Option 4.
    Customs Response: Customs disagrees. As discussed above in the 
second comment response, certain specific types of export shipments 
require that full predeparture information be filed under Option 2. 
These are high-risk shipments. Used, self-propelled vehicles are one of 
these type of shipments. Predeparture information is required for 
shipments of used, self-propelled vehicles because they are subject to 
the regulatory requirements of Subpart A of Part 192 of the Customs 
Regulations (19 CFR part 192, subpart A), which were promulgated 
pursuant to specific statutes aimed at stopping the export of stolen 
vehicles. Law enforcement concerns to counter this threat of exporting 
stolen vehicles require that the original title for the vehicle be 
physically presented to Customs before the export of the used, self-
propelled vehicle. See, T.D. 99-34 (64 FR 16635; published April 6, 
1999). Accordingly, because full predeparture information is considered 
necessary before the exportation of used, self-propelled vehicles, 
Customs is not asking Census to change the regulations on this matter.
    It is noted that new self-propelled vehicles (those for which the 
title has not been transferred to an ultimate purchaser) may be 
reported in the AES by an approved filer using Option 4. It is also 
noted that used, self-propelled vehicles shipped between the United 
States and Puerto Rico are not subject to the regulatory requirements 
of Subpart A of Part 192 of the Customs Regulations and are approved 
commodities that may be reported in the AES by an approved filer using 
Option 4. The Census Regulations have been amended to reflect this.
    Comment: Two commenters suggest that the Census Bureau program, the 
Automated Export Reporting Program (AERP), should be retained. One of 
these commenters further suggests that AES data formats do not conform 
to the Treasury Department's International Trade Data System (ITDS), 
which will replace the AES.
    Customs Response: Census and Customs have been informing the trade 
community since 1995 that the AERP would expire on December 31, 1999. 
Again, in a notice published in the Federal Register (63 FR 54438) on 
October 9, 1998, it was announced that the AERP would expire on 
December 31, 1999. This time frame was established to allow sufficient 
time for AERP participants to convert to AES. The AES is able to 
process trade data for all AERP companies. The AERP will not be 
extended past December 31, 1999.
    In response to the comment regarding AES compatibility with ITDS, 
it should be noted that AES is compatible with the functional 
requirements of the ITDS and may be incorporated into that system in 
the future.

Conclusion

    After careful consideration of all the comments received and 
further review of the matter, Customs has decided to adopt as a final 
rule, with one substantive change and minor changes for clarity, the 
proposed amendments published February 12, 1999, in the Federal 
Register (64 FR 7422). The one substantive change involves the 
definition of the term ``business day.''
    In the proposal, Customs proposed to amend the general provisions 
of Part 101 of the Customs Regulations to include a definition of the 
term ``business day'' and the term ``business days'' was used in 
Secs. 4.76(b), (c)(3), and (c)(4). While the definition of ``business 
day'' is adopted in this final rule document because of its use at 
Sec. 4.76(b), Customs has determined that the term is not appropriate 
at Secs. 4.76 (c)(3) and (4) because AES programming only allows for 
calculation of calendar days.
    Accordingly, the term ``business days'' is replaced with ``calendar 
days'' at Sec. 4.76(c)(4).
    It is noted that in a separate document published in today's 
Federal Register, the Bureau of the Census is publishing its final rule 
document setting forth the general requirements for the AES in the 
Census Regulations (chapter I of title 15 of the Code of Federal 
Regulations) at new subpart E of part 30 (15 CFR part 30).

The Regulatory Flexibility Act and Executive Order 12866

    Pursuant to provisions of the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.), it is certified that the amendments will not have a 
significant economic impact on a substantial number of small entities. 
Booking information is already collected in the ordinary course of 
business by sea carriers and the cost of transmitting the information 
electronically to Customs through AES, even if the carrier is not a 
certified AES participant, is not substantial. Accordingly, the 
amendments are not subject to the regulatory analysis or other 
requirements of 5 U.S.C. 603 and 604. These amendments do not meet the 
criteria for a ``significant regulatory action'' as specified in 
Executive Order 12866.

Inapplicability of Delayed Effective Date

    Pursuant to 5 U.S.C. 553(d)(1) and (3), a delayed effective date is 
not required for this rule. For purposes of 5 U.S.C. 553(d)(1), this 
rule reflects a grant of an exemption from the normal export manifest 
reporting requirements to AES

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participants using the Sea Carrier's module. A complete outbound cargo 
manifest is generally required to be delivered to a Customs port 
director not later than the fourth business day after clearance of the 
vessel from each port. According to this rule, a carrier can file the 
manifest information with Customs via AES for each booking loaded on a 
departed vessel within ten calendar days after the departure of the 
vessel from each port. Because the ability to file export manifest 
information electronically benefits the public, pursuant to 5 U.S.C. 
553(d)(3), good cause exists for not delaying the effective date of 
this rule.

Paperwork Reduction Act

    The collection of information contained in these final regulations 
has been revised, reviewed, and approved by the Office of Management 
and Budget (OMB) in accordance with the requirements of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3507) under control number 1515-0221. 
An agency may not conduct or sponsor, 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 OMB.
    The collection of information in this final rule is at Sec. 4.76. 
This information is required to determine which export shipments are 
high risk. This information will be used to screen shipments for 
enforcement targeting. The likely respondents are sea carriers that 
engage in foreign commerce and trade with the United States and are 
required to submit outbound vessel manifest data. The estimated average 
burden associated with the collection of information in this final rule 
is one to seventy-two hours per respondent or recordkeeper. Comments 
concerning the accuracy of this burden estimate and suggestions for 
reducing this burden should be directed to the U.S. Customs Service, 
Information Services Group, Office of Finance, 1300 Pennsylvania Ave., 
NW, Washington, DC 20229; and to OMB, Attention: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, D.C. 20503.
    Part 178 of the Customs Regulations is amended to reflect this 
paperwork requirement.

Drafting Information

    The principal author of this document was Gregory R. Vilders, 
Attorney, Regulations Branch. However, personnel from other offices 
participated in its development.

List of Subjects

19 CFR Part 4

    Cargo vessels, Common carriers, Customs duties and inspection, 
Declarations, Exports, Foreign commerce and trade statistics, Freight, 
Inspection, Maritime carriers, Merchandise, Reporting and recordkeeping 
requirements, Shipping, Vessels.

19 CFR Part 101

    Customs duties and inspection, Customs ports of entry, Exports, 
Foreign trade statistics, Harbors, Imports, Organization and functions 
(Government agencies), Reporting and recordkeeping requirements, 
Shipments, Vessels.

19 CFR Part 178

    Reporting and recordkeeping requirements.

19 CFR Part 192

    Customs duties and inspection, Electronic filing, Export control, 
Reporting and recordkeeping requirements, Vessels.

Amendments to the Regulations

    For the reasons stated above, parts 4, 101, 178, and 192 of the 
Customs Regulations (19 CFR parts 4, 101, 178, and 192) are amended as 
set forth below:

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

    1. The general authority citation for part 4 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624; 
46 U.S.C. App. 3, 91.
* * * * *
    2. A new Sec. 4.76 is added to read as follows:


Sec. 4.76  Procedures and responsibilities of carriers filing outbound 
vessel manifest information via the AES.

    (a) The sea carrier's module. The Sea Carrier's Module is a 
component of the Automated Export System (AES) (see, part 192, subpart 
B, of this chapter) that allows for the filing of outbound vessel 
manifest information electronically (see, 15 CFR part 30). All sea 
carriers are eligible to apply for participation in the Sea Carrier's 
Module. Application and certification procedures for AES are found at 
15 CFR 30.60. A sea carrier certified to use the module that adheres to 
the procedures set forth in this section and the Census Regulations (15 
CFR part 30) concerning the electronic submission of an outbound vessel 
manifest information meets the outward cargo declaration filing 
requirements (CF 1302-A) of Secs. 4.63 and 4.75, except as otherwise 
provided in Secs. 4.75 and 4.84.
    (b) Responsibilities. The performance requirements and operational 
standards and procedures for electronic submission of outbound vessel 
manifest information are detailed in the AES Trade Interface 
Requirements handbook (available on the Customs internet web site 
(www.customs.gov)). Carriers and their agents are responsible for 
reporting accurate and timely information and for responding to all 
notifications concerning the status of their transmissions and the 
detention and release of freight in accordance with the procedures set 
forth in the AES Trade Interface Requirements handbook. Customs will 
send messages to participant carriers regarding the accuracy of their 
transmissions. AES participants are required to comply with the 
recordkeeping requirements contained at Sec. 30.66 of the Census 
Regulations (15 CFR 30.66) and any other applicable recordkeeping 
requirements. Where paper SEDs have been submitted by exporters prior 
to departure, participant carriers will be responsible for submitting 
those SEDs to Customs within four (4) business days after the departure 
of the vessel from each port, unless a different time requirement is 
specified by Secs. 4.75 or 4.84. Upon written agreement with 
participant sea carriers, Customs and Census can provide for an 
alternative to the location filing requirement for paper SEDs set forth 
in Sec. 4.75(b) by which the participant carriers are otherwise bound.
    (c) Messages required to be filed within the sea carrier's module. 
Participant carriers will be responsible for transmitting and 
responding to the following messages:
    (1) Booking. Booking information identifies all the freight that is 
scheduled for export. Booking information will be transmitted to 
Customs via AES for each shipment as far in advance of departure as 
practical, but no later than seventy-two hours prior to departure for 
all information available at that time. Bookings received within 
seventy-two hours of departure will be transmitted to Customs via AES 
as received;
    (2) Receipt of booking. When the carrier receives the cargo or 
portion of the cargo that was booked, the carrier will inform Customs 
so that Customs can determine if an examination of the cargo is 
necessary. Customs will notify the carrier of shipments designated for 
examination. Customs will also notify the carrier when the shipment

[[Page 40987]]

designated for inspection is released and may be loaded on the vessel;
    (3) Departure. No later than the first calendar day following the 
actual departure of the vessel, the carrier will notify Customs of the 
date and time of departure; and
    (4) Manifest. Within ten (10) calendar days after the departure of 
the vessel from each port, the carrier will submit the manifest 
information to Customs via AES for each booking loaded on the departed 
vessel. However, if the destination of the vessel is a foreign port 
listed in Sec. 4.75(c), the carrier must transmit complete manifest 
information before vessel departure. Time requirements for transmission 
of complete manifest information for carriers destined to Puerto Rico 
and U.S. possessions are the same as the requirement for the submission 
of the complete manifest as found in Sec. 4.84.
    (d) All penalties and liquidated damages that apply to the 
submission of paper manifests (see, applicable provisions in this part) 
apply to the electronic submission of outbound vessel manifest 
information through the Sea Carrier's Module.

PART 101--GENERAL PROVISIONS

    1. The general authority citation for part 101 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States), 1623, 1624, 1646a.
* * * * *
    2. In Sec. 101.1, add, in appropriate alphabetical order, the 
definition of ``business day'' to read as follows:


Sec. 101.1  Definitions.

* * * * *
    Business day. A ``business day'' means a weekday (Monday through 
Friday), excluding national holidays as specified in Sec. 101.6(a).
* * * * *

PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS

    1. The authority citation for part 178 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 1624; 44 U.S.C. 3501 et seq.

    2. Section 178.2 is amended by adding, in appropriate numerical 
order, a listing for Sec. 4.76 to read as follows:


Sec. 178.2  Listing of OMB control numbers.

------------------------------------------------------------------------
                                                             OMB control
           19 CFR Section                  Description           No.
------------------------------------------------------------------------
 
                  *        *        *        *        *
Sec.  4.76.........................  Booking information       1515-0221
                                      for the Sea Carrier's
                                      Module of the AES.
                  *        *        *        *        *
------------------------------------------------------------------------

PART 192--EXPORT CONTROL

    1. The authority citation for part 192 is revised to read as 
follows:

    Authority: 19 U.S.C. 66, 1624, 1646c. Subpart A also issued 
under 19 U.S.C. 1627a, 1646a, 1646b; Subpart B also issued under 13 
U.S.C. 303; 46 U.S.C. App. 91.

    2. In Sec. 192.0, a sentence is added at the end of the section to 
read as follows:


Sec. 192.0  Scope.

    * * * This part also makes provision for the Automated Export 
System (AES), implemented by the Census Regulations at part 30, subpart 
E (15 CFR part 30, subpart E), and provides the grounds under which 
Customs, as one of the reviewing agencies of the government's export 
partnership, may deny an application for post-departure filing status 
or revoke a participant's privilege to use such filing option, and 
provides for the appeal procedures to challenge such action by Customs.
    3. A new subpart B, consisting of Secs. 192.11 through 192.13, is 
added to read as follows:

Subpart B--Filing of Export Information Through the Automated 
Export System (AES)

Sec.
192.11  Description of the AES.
192.12  Criteria for denial of applications requesting AES post-
departure (Option 4) filing status; appeal procedures.
192.13  Revocation of participant's AES post-departure (Option 4) 
filing privileges; appeal procedures.

Subpart B--Filing of Export Information Through the Automated 
Export System (AES)


Sec. 192.11  Description of the AES.

    AES is a voluntary program that allows all exporters required to 
report commodity export information (see, 15 CFR 30.16) to submit such 
information electronically, rather than on paper, and sea carriers to 
report required outbound vessel information electronically (see, 
Secs. 4.63, 4.75, and 4.76 of this chapter). Eligibility and 
application procedures are found at subpart E of part 30 of the Census 
Regulations (15 CFR part 30, subpart E), denominated Electronic Filing 
Requirements--Exporters. These Census Regulations (15 CFR part 30, 
subpart E) provide that exporters may choose to submit export 
information through AES by any one of three electronic filing options 
available. Only Option 4, the complete post-departure submission of 
export information, requires prior approval by participating agencies 
before it can be used by AES participants.


Sec. 192.12  Criteria for denial of applications requesting AES post-
departure (Option 4) filing status; appeal procedures.

    (a) Approval process. Applications for the option of filing export 
commodity information electronically through AES after the vessel has 
departed (Option 4 filing status) must be unanimously approved by 
Customs, Census and other participating government agencies. 
Disapproval by one of the participating agencies will cause rejection 
of the application.
    (b) Grounds for denial. Customs may deny a participant's 
application for any of the following reasons:
    (1) The applicant is not an exporter, as defined in the Census 
Regulations (15 CFR 30.7(d));
    (2) The applicant has a history of non-compliance with export 
regulations (e.g., exporter has a history of late electronic submission 
of commodity records or a record of non-submission of required export 
documentation);
    (3) The applicant has been indicted, convicted, or is currently 
under an investigation, wherein Customs has developed probable cause, 
for a felony involving any Customs law or any export law administered 
by another government agency; or
    (4) The applicant has made or caused to be made in the ``Letter of 
Intent,'' a false or misleading statement or omission with respect to 
any material fact.
    (c) Notice of denial; appeal procedures. Applicants will be 
notified of approval or denial in writing by Census. (Applicants whose 
applications are denied by other agencies must contact those agencies 
for their specific appeal procedures.) Applicants whose applications 
are denied by Customs will be provided with the specific reason(s) for 
non-selection. Applicants may challenge Customs decision by following 
the appeal procedure provided at Sec. 192.13(b).


Sec. 192.13  Revocation of participants' AES post-departure (Option 4) 
filing privileges; appeal procedures.

    (a) Reasons for revocation. Customs may revoke Option 4 privileges 
of participants for the following reasons:
    (1) The exporter has made or caused to be made in the ``Letter of 
Intent,'' a

[[Page 40988]]

false or misleading statement or omission with respect to any material 
fact;
    (2) The exporter submitting the ``Letter of Intent'' is indicted, 
convicted, or is currently under an investigation, wherein Customs has 
developed probable cause, for a felony involving any Customs law or any 
export law administered by another government agency;
    (3) The exporter fails to substantially comply with export 
regulations; or
    (4) Continued participation in AES as an Option 4 filer would pose 
a threat to national security, such that continued participation in 
Option 4 should be terminated.
    (b) Notice of revocation; appeal procedures. When Customs has 
decided to revoke a participant's Option 4 filing privileges, the 
participant will be notified in writing of the reason(s) for the 
decision. The participant may challenge Customs decision by filing an 
appeal within thirty (30) calendar days of receipt of the notice of 
decision. Except as stated elsewhere in this paragraph, the revocation 
will become effective when the participant has either exhausted all 
appeal proceedings or thirty (30) calendar days after receipt of the 
notice of revocation if no appeal is filed. However, in cases of 
intentional violations of any Customs law on the part of the program 
participant or when required by the national security, revocations will 
become effective immediately upon notification. Appeals should be 
addressed to the Director, Outbound Programs, U.S. Customs, Ronald 
Reagan Building, 1300 Pennsylvania Ave, NW, Room 5.4c, Washington, DC 
20229. Customs will issue a written decision or notice of extension to 
the participant within thirty (30) calendar days of receipt of the 
appeal. If a notice of extension is forwarded, the applicant will be 
provided with the reason(s) for extension of this time period and an 
expected date of decision. Participants who have had their Option 4 
filing privileges revoked and applicants not selected to participate in 
Option 4 of AES may not reapply for this filing status for one year 
following written notification of rejection or revocation.
Raymond W. Kelly,
Commissioner of Customs.

    Approved: July 22, 1999.
Timothy G. Skud,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 99-19177 Filed 7-23-99; 9:55 am]
BILLING CODE 4820-02-P