[Federal Register Volume 65, Number 36 (Wednesday, February 23, 2000)]
[Notices]
[Pages 9054-9057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4269]


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DEPARTMENT OF THE TREASURY

Customs Service


Announcement of a General Program Test: Procedure for Transfer of 
Accompanied (International) In-Transit Baggage

AGENCY: Customs Service, Department of the Treasury.

ACTION: General notice.

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SUMMARY: This notice announces Customs plan to conduct a test program 
that allows participating air carriers to electronically transmit 
information to Customs to transfer accompanied air passenger (checked) 
baggage from one aircraft entering the United States to another 
aircraft departing from the United States enroute to a foreign 
destination. For carriers participating in the test, this information 
filing procedure will replace the filing procedure for the air cargo 
manifest form (Customs Form (CF) 7509) currently provided for under the 
Customs Regulations and will permit more effective in-transit passenger 
and in-transit baggage processing procedures. The test covers arriving 
flights of air carriers participating at an acceptable performance 
level in the Advance Passenger Information System (APIS) program. This 
notice invites public comments concerning any aspect of the test, 
informs interested members of the public of the eligibility 
requirements for voluntary participation in the test, and describes the 
information transmission and baggage processing procedures required of 
those participating in the test.

EFFECTIVE DATES: The testing period will commence no earlier than March 
24, 2000, and will run for approximately one year. Comments concerning 
this notice, including eligibility standards, application process, and 
information submission requirements, must be received on or before 
March 24, 2000. To participate in the test, the necessary information, 
as set forth in this notice, must be filed with Customs on or before 
March 24, 2000.

ADDRESSES: Written comments regarding this notice should be addressed 
to Passenger Programs, U.S. Customs Service, 1300 Pennsylvania Avenue, 
N.W., Room 5.4D, Washington, D.C. 20229. Air carriers that have entered 
into an agreement with the Government by signing an APIS Memorandum of 
Understanding (MOU) may request participation in the test program by 
providing written notification, to the port director with jurisdiction 
over the airport where the transfer of accompanied international in-
transit baggage will occur, of their acceptance of all the conditions 
outlined in the ``Conditions of Operation'' section of this notice. Air 
carriers who wish to participate in the test can apply to participate 
in the APIS program by contacting Mike Cronin, Acting Associate 
Commissioner for Programs, U.S. Immigration & Naturalization Service, 
425 I Street, N.W., Washington, D.C. 20536.

FOR FURTHER INFORMATION CONTACT: For operational or policy matters: 
Steve A. Gilbert, Office of Field Operations (202) 927-1391. For 
regulatory matters: Larry L. Burton, Office of Regulations and Rulings 
(202) 927-1287.

SUPPLEMENTARY INFORMATION:

Background

    Customs recognizes that commercial air travel is a dynamic and ever 
changing industry. The establishment of new ways of operating within 
the industry, including gateway airports, air carrier hubs, and the 
advent of global alliances, fosters new working relationships between 
air carriers. Air carriers are continually looking to improve 
international passenger processing, one aspect of which is the 
efficient transfer of international in-transit baggage, a matter also 
of concern to Customs. The announced test is designed to test 
procedures for processing international in-transit baggage and for 
filing certain information in place of an air cargo manifest.
    The announced test program pertains to passengers and their baggage 
arriving in the United States aboard one aircraft and departing from 
the United States aboard another aircraft. Thus, the test pertains to 
international in-transit passengers and their international in-transit 
baggage, i.e., in transit through the United States to a foreign 
destination.
    The baggage referred to is checked baggage, not carry on baggage. 
Because checked baggage is stored below the passenger cabin in the 
baggage compartment of the aircraft, passengers do not have access to 
it during flights. Because the passengers are on board the same 
aircraft as their checked baggage, the baggage is considered 
accompanied baggage (as opposed to unaccompanied baggage).
    Thus, to reiterate, the test program covers the following specific 
kind of baggage: accompanied, international, in-transit, checked 
baggage that arrives in the United States on board one aircraft and 
departs from the United States on board another aircraft. (Hereafter, 
this baggage will be referred to merely as in-transit baggage or 
baggage.)

The Air Cargo Manifest Requirement Under the Customs Regulations

    Under Sec. 122.48(a) of the Customs Regulations (19 CFR 122.48(a)), 
air carriers arriving in the United States from a foreign area must 
file an air cargo manifest (Customs Form (CF) 7509) for all cargo on 
board. (See 19 U.S.C. 1431(a) and 1644a(b)(1)(E).) This filing 
requirement can be met by manually submitting the manifest form (CF 
7509) to Customs or by filing an electronic manifest under the 
Automated Manifest System (AMS). (See 19 U.S.C. 1431(b), 1431(d)(1), 
and 1644a(b)(1)(E).)
    Section 122.48(e) of the Customs Regulations (19 CFR 122.48(e)) 
pertains specifically to accompanied baggage entering the United States 
in one aircraft and leaving the United States in another aircraft. It 
provides that when passengers do not have access to their baggage while 
in transit through the United States, the baggage is considered cargo 
and must be listed on the air cargo manifest. (See also Sec. 122.101 of 
the Customs Regulations (19 CFR 122.101), which provides that such 
baggage must be listed on the air cargo manifest in accordance with 
Sec. 122.48(e).)
    Thus, the Customs Regulations require that in-transit baggage of 
the kind covered by the announced test program must be listed on an air 
cargo manifest submitted to Customs when passengers do not have access 
to their baggage while in transit through the United States (between 
flights).
    Under the test program, in-transit passengers will not have access 
to their in-transit baggage between flights, but the ordinarily 
applicable air cargo manifest filing requirement under the Customs 
Regulations will be replaced by a procedure requiring the test 
participant, prior to the flight's arrival, to electronically file 
certain information via the Advanced Passenger Information

[[Page 9055]]

System (APIS) program (see ``APIS'' section below) and to file certain 
other information either by manual delivery at the port of arrival or 
by allowing Customs access to its reservations data base. (See 
Conditions (1) and (2) of the ``Conditions of Operation'' section of 
this notice.) The required information that will be provided 
electronically via APIS pertains to passengers, including in-transit 
passengers. The required information that will be provided either by 
manual delivery or through Customs access to the participant's 
reservations data base includes information on the in-transit baggage.
    Participants that submit the required information will not have to 
file an air cargo manifest (CF 7509) for their in-transit baggage, 
either manually or electronically. This exemption applies only to in-
transit baggage covered by the test program; the requirement that a 
manifest must be filed for cargo remains in force.

In-Transit Baggage Processing

    Ordinarily, although procedures can vary somewhat depending on the 
airport, in-transit passengers deplaning from the arriving aircraft 
pick up their checked baggage at the baggage carousel, proceed through 
Customs processing (inspection) with their baggage, and then submit the 
baggage to a transfer desk where it is placed in a staging area to be 
picked up for loading onto the departing aircraft. Because, under this 
procedure, passengers access their baggage between flights, there is no 
requirement to list the baggage on the air cargo manifest for 
submission to Customs. This ordinary practice that occurs at most 
airports is provided for under Sec. 122.101(a) of the Customs 
Regulations (19 CFR 122.101(a)).
    The test program differs from the ordinary procedure of 
Sec. 122.101(a), as described above. Under the test, the baggage will 
not be released to in-transit passengers between flights for Customs 
processing and subsequent submission to the transfer desk. Rather, 
after being off-loaded from the arriving aircraft, the baggage will be 
moved (by the arriving carrier or authorized airport personnel) to a 
Customs approved security area where some form of inspection, at 
Customs discretion, may take place. From the security area, whether or 
not Customs inspects all or some of the baggage, the baggage will be 
transported to the departing aircraft. The in-transit passengers, in 
most instances, will proceed through Customs processing upon deplaning, 
without their checked baggage, to await boarding onto the departing 
aircraft. (However, some airport facilities provide for secure areas 
where deplaning in-transit passengers wait to board the departing 
aircraft, without going through Customs processing.)
    Processing in-transit baggage under the test program will also 
differ from the procedure provided for under Sec. 122.101(b) (a 
voluntary alternative to the Sec. 122.101(a) procedure), which allows 
passengers to have the air carrier treat their baggage as cargo, with 
different processing requirements and fees, including an air cargo 
manifest filing requirement. Under the test, the baggage will not be 
treated as cargo and the air cargo manifest will not be filed (either 
manually or electronically).

The APIS Program

    The APIS program is an already existing and independent voluntary 
program. Air carrier participants in APIS enter into a memorandum of 
understanding (MOU) with the Government under which they agree to 
electronically provide certain information to Customs and the 
Immigration & Naturalization Service (INS) prior to a flight's arrival 
in the United States. The information provided pertains, in part, to 
the passengers on board the aircraft and depends upon the specific 
terms of the MOU.
    Analysis of this information by Customs and the INS, while these 
flights are enroute to the United States, allows for expedited 
processing of the vast majority of the passengers when they arrive in 
the United States. The expedited processing of these flights is 
referred to as ``Blue Lane processing'' in the APIS MOU, and flights 
for which air carriers have transmitted required data at or above 
minimum standards set forth in the MOU (accuracy rates) are considered 
``Blue Lane eligible'' flights. Customs and the INS monitor the 
performance of air carriers participating in APIS to evaluate their 
compliance with the standards of the MOU. Less than acceptable 
performance can result in a loss of Blue Lane eligibility status for a 
given flight. (An APIS participating air carrier may have several APIS 
qualified flights that originate from different foreign places and/or 
arrive at several different U.S. airports. Loss of Blue Lane 
eligibility for a given flight (or flights) would not result 
necessarily in suspension from the APIS program altogether.)
    While APIS is a separate and independent program that has been in 
operation for several years, it has been integrated into and made a 
component of the announced test (see Condition (1) of the ``Conditions 
of Operation'' section). Air carriers operating under the APIS program 
are not required to participate in the test (as it is a voluntary 
program) and election not to participate will not affect their APIS 
status.

General Test Authority

    Pursuant to Title VI (entitiled ``Customs Modernization '') of the 
North American Free Trade Agreement Implementation Act (the Act; Pub. 
L. 103-182, 107 Stat. 2057 (December 8, 1993)), Customs amended its 
regulations, in part, to enable the Commissioner of Customs to conduct 
limited test programs/procedures designed to evaluate the effectiveness 
of new technology or operational procedures which have as their goal 
the more efficient and effective processing of passengers, carriers, 
and merchandise. Section 101.9(a) of the Customs Regulations (19 CFR 
101.9(a)) allows for such general testing. (See TD 95-21 (60 FR 14211, 
March 16, 1995). This test is established pursuant to those 
regulations.

Intent of the Test Program

    Customs plans to work with the air carrier community, other 
agencies, and other parties affected by this test program in the 
design, implementation, and evaluation of the test. Customs intends to 
use the experience gained in administering the test program to design 
operational procedures, automated systems, and regulations that are 
supportive of, and compatible with, the business environment of the air 
carrier industry, Customs enforcement mission, and the industry's and 
Customs efforts to improve international passenger processing.

Conditions of Operation

    The announced test provides an alternative to the ordinary in-
transit baggage processing procedure of Sec. 122.101(a) and replaces 
the regulatory requirement of Sec. 122.48(e) to file (manually or 
electronically) with Customs, at the port of arrival, an air cargo 
manifest (CF 7509) for accompanied in-transit baggage, so long as 
participants agree to the following test conditions of operation:
    (1) The APIS component: The participant must transmit to Customs 
via APIS, prior to arrival of the aircraft, the information required 
under the terms of the APIS MOU.
    (2) The participant must also submit to Customs an ``onward 
connector listing'' a document that identifies the arriving flight 
number, in-transit passenger names, their checked (in-transit) baggage 
tag numbers, and their ultimate foreign destination(s). The participant 
may provide this

[[Page 9056]]

information in the form of a computer generated report, screen print, 
or other hard copy document manually submitted to Customs prior to 
arrival, or by allowing Customs to electronically access its 
reservations database in order that Customs may extract an ``onward 
connector listing'' containing the required information prior to 
arrival of the flight.
    (3) The participant must affix an in-transit international baggage 
tag to each piece of in-transit baggage at the foreign point of origin, 
as provided for under Sec. 18.14 of the Customs Regulations (19 CFR 
18.14), to visually identify the baggage for later exportation from the 
United States.
    (4) The participant must perform staging and transferring of in-
transit baggage in Customs approved security areas (except for plane-
to-plane transfers approved by Customs locally).
    (5) The participant must ensure that all carrier employees or 
contract ramp service employees with access to the in-transit baggage 
will have and display (or produce upon demand) approved identification 
issued under the Customs Regulations (19 CFR Part 122, Subpart S, 
entitled ``Access to Customs Security Areas'').
    (6) The participant must timely deliver in-transit baggage to 
Customs approved secure areas and to the Federal Inspection Service 
(FIS) area for inspection, if and when requested.
    (7) The participant must maintain direct control of the in-transit 
baggage until the departing carrier responsible for exporting the 
baggage has signed a receipt for it, which will transfer bond liability 
from the participant to the departing carrier.
    Test participants agreeing to follow the above conditions of 
operation will be allowed to participate in the test. If for any 
reason, however, a participant's APIS or electronic reservations 
database system becomes inoperative, Customs is unable to receive APIS 
information transmitted by a participant, or access to the 
participant's reservations database is otherwise not available, the 
participant will be required to submit a paper document listing the 
required APIS passenger information and the in-transit baggage 
information prior to the arrival of the flight.

Regulatory Provisions Suspended

    Section 122.48(e) of the Customs Regulations (19 CFR 122.48(e)), 
pertaining to the filing of an air cargo manifest for international, 
in-transit baggage, will be suspended during this test for test 
participants that provide the information required under the test's 
conditions of operation and otherwise meet those conditions.

Eligibility Criteria

    To be eligible to participate in the program, an applicant air 
carrier: (1) must be an APIS participating carrier (having entered into 
an agreement with the Government by signing an APIS MOU) and (2) must 
be performing acceptably under the APIS MOU and have been so performing 
for a period of at least four weeks.

The Application Process

    Participation in the test program is open only to APIS 
participating air carriers in good standing (performing under the MOU 
at acceptable levels). To apply for participation in the test, these 
APIS participating air carriers must submit a written statement to the 
port director with jurisdiction over the airport where the transfer of 
the in-transit baggage will occur within 30 days following the 
publication of this notice in the Federal Register. The statement 
(examples of which may be obtained from the port director) must be 
signed by an authorized official of the carrier. It must state that the 
air carrier agrees to all the conditions set forth in the ``Conditions 
of Operation'' section of this notice and that it wishes to voluntarily 
participate in the test. The statement must also designate a local 
point of contact and telephone number for use by Customs personnel at 
the port.
    To apply for participation in the APIS program, a prerequisite to 
participation in the test program, air carriers should contact the 
Customs port director with jurisdiction over the airport where they 
intend to operate or contact Mike Cronin, Acting Associate Commissioner 
for Programs, U.S. Immigration & Naturalization Service, 425 I Street, 
N.W., Washington, D.C. 20536.

Revocation and Reinstatement

    Customs, in its mission to interdict the flow of illegal narcotics 
and other contraband into the United States, places enormous reliance 
on APIS transmissions and in-transit baggage information. Consequently, 
the port director with jurisdiction over the airport where the test 
participant is operating may revoke a test participant's privilege to 
operate under the test program in certain circumstances. A 
participant's privilege can be revoked altogether (full revocation) or 
the revocation may be partial (e.g., limited to a certain flight or 
flights).
    Full revocation may be ordered where a test participant has been 
suspended from operating under the APIS program. Where the loss of Blue 
Lane eligibility for a given flight (or flights) does not result in a 
participant's suspension from the APIS program, it will result in 
revocation of the participant's privilege to operate under the test 
program for that flight (or those flights) until the participant's Blue 
Lane eligibility status for that flight (or those flights) is restored. 
This is a partial revocation.
    A test participant's privilege to operate under the test also can 
be fully or partially revoked for less than satisfactory performance of 
any of the conditions of operation. Also, where the port director 
determines that a participant's test performance is unsatisfactory in 
any way that may compromise the Customs enforcement mission, the 
privilege may be fully or partially revoked.
    A participant whose privilege to operate under the test has been 
revoked for any reason will be required to file an air cargo manifest 
that lists in-transit baggage under ordinary procedures (manually or 
electronically), in accordance with the requirements of the Customs 
Regulations (19 CFR 122.48(e) and 122.101), or to have its in-transit 
passengers take their baggage through Customs processing as provided 
under Sec. 122.101(a). If there has been a full revocation of test 
privileges, all covered flights will be affected. If the revocation was 
limited to a certain flight (or flights) or to a certain airport, only 
those flights or that airport will be affected.
    A participant's reinstatement into the test program, after full or 
partial revocation of privileges, may be permitted after the 
participant submits to the appropriate port director a written 
explanation of the problems that led to the revocation of privileges 
and the measures taken to correct those problems. Where a full 
revocation was based on a test participant's suspension from APIS, 
reinstatement into the test program will require reinstatement into the 
APIS program. Where test privileges were revoked relative to a given 
flight, for the reason that the flight lost Blue Lane eligibility 
status, reinstatement into the test program for that flight will depend 
upon restoration of Blue Lane eligibility status for that flight. 
Reinstatement into the test program also may be accomplished by 
sufficiently improving performance or satisfactorily correcting 
deficiencies with respect to other test conditions when these 
performance factors were the reason(s) for full or partial revocation 
of privileges.

Test Evaluation Criteria

    Customs will review all public comments received concerning any

[[Page 9057]]

aspect of the test program or procedures, amend procedures as necessary 
in light of those comments, form problem-solving teams, and establish 
baseline measures and evaluation methods and criteria.
    The following evaluation methods and criteria have been suggested 
to measure the performance of test participants: (1) measuring 
participants' APIS data transmissions and other information submissions 
regarding in-transit passengers and baggage for timeliness, 
completeness, and accuracy, (2) tracking the number of deficiencies 
that occur in the delivery of in-transit baggage to Customs secure 
areas or, when necessary, to the FIS area, (3) tracking deficiencies in 
the performance of other test conditions, and (4) assessing the impact 
on Customs workload, including cycle time and workload shifts.
    Six months after implementation of the program, evaluations of the 
program will be commenced. Results of the test evaluations will be 
available at the conclusion of the test and will be made available to 
the public upon request.

    Dated: February 17, 2000.
Charles W. Winwood,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 00-4269 Filed 2-22-00; 8:45 am]
BILLING CODE 4820-02-P