[Federal Register Volume 65, Number 117 (Friday, June 16, 2000)]
[Notices]
[Pages 37828-37830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14840]



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DEPARTMENT OF THE TREASURY

Customs Service


Modification of General Program Test for Transfer of 
International In-Transit Baggage

AGENCY: Customs Service, Department of the Treasury.

ACTION: General notice.

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SUMMARY: This document announces a modification of the program test for 
the transfer of international in-transit baggage that was initially 
announced in a notice published in the Federal Register on February 23, 
2000. This document replaces the test conditions of operation, the 
application procedure, and the revocation process that were set forth 
in the initial announcement of the test. This document also sets forth 
a new application period and a new test commencement date.

DATES: The testing period will commence no earlier than August 15, 
2000, and will run for approximately one year. To participate in the 
test, a written application must be filed with Customs on or before 
July 31, 2000.

ADDRESSES: Air carriers that have entered into an agreement with the 
Government by signing an Advance Passenger Information System (APIS) 
Memorandum of Understanding may apply to participate in the program 
test by submitting a letter of application to the port director with 
jurisdiction over the airport where the transfer of international in-
transit baggage will occur. Air carriers that 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, 
DC 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

    On February 23, 2000, Customs published a general notice in the 
Federal Register (65 FR 9054; referred to herein as the notice of 
February 23, 2000) announcing a program test that allows participating 
air carriers to more efficiently transfer accompanied air passenger 
baggage from one aircraft entering the United States to another 
aircraft departing from the United States enroute to a foreign 
destination. Under the test, participating air carriers will not be 
required to file an air cargo manifest (Customs Form (CF) 7509) but 
will instead electronically transmit certain required information to 
Customs while a flight is enroute to the United States.
    The notice specified that the test covers accompanied, 
international, in-transit, checked baggage that arrives in the United 
States aboard one aircraft and departs from the United States aboard 
another aircraft. This baggage is referred to as ``international-to-
international'' baggage by Customs and those who deal with the ordinary 
transport and processing of such baggage.
    Thus, hereafter in this document, the baggage will be referred to 
as ITI baggage.
    The notice explained the air cargo manifest requirement and the 
ordinary ITI baggage processing procedure as provided for under the 
Customs Regulations; described the Advance Passenger Information System 
(APIS) program; set forth the eligibility requirements for 
participation in the test, the information transmission and baggage 
processing procedures required under the test, and the test application 
process; and requested comments on all aspects of the test. The notice 
should be consulted for a fuller understanding of the various aspects 
of the program test, excluding those aspects of the notice that are 
replaced or changed in this document: the conditions of operation, the 
application and revocation processes, and the new time elements 
relative to the application process and commencement of the test.
    On April 3, 2000, Customs published a general notice in the Federal 
Register (65 FR 17550) to announce an extension of the time period for 
applying to participate in the test. The application (statement filing) 
deadline was extended to May 26, 2000.
    After review of the comments received and a reevaluation of the 
test, Customs has determined that the test should be modified. Thus, 
this document modifies the test by replacing the ``Conditions of 
Operation'' section, ``The Application Process'' section, and the 
``Revocation and Reinstatement'' section that were set forth in the 
notice of February 23, 2000. It also extends the deadline for applying 
to participate in the test and sets a new date for commencement of the 
test.

Modification of the Program Test

    The following sections of this document replace the corresponding 
sections of the notice of February 23, 2000. The ``Revocation and 
Reinstatement'' section of that notice is renamed herein below the 
``Misconduct'' section.

Conditions of Operation

    The test conditions of operation describe the procedures that 
govern air carriers participating in the test. Any carrier that has 
already submitted a statement of acceptance of the test conditions 
previously published must reapply in accordance with the application 
process set forth in this document. The conditions of operation set 
forth in the February 23, 2000, test announcement are hereby replaced 
by the conditions of operation set forth below.
    The ITI baggage program test provides an alternative to the 
ordinary ITI baggage processing procedure of Sec. 122.101(a) of the 
Customs Regulations (19 CFR 122.101(a)) and replaces the regulatory 
requirement of Sec. 122.48(e) (19 CFR 122.48(e)) to manually or 
electronically file with Customs (at the port of arrival) an air cargo 
manifest (CF 7509) for ITI baggage. Test participants are required to 
follow the following test conditions of operation:
    (1) The APIS component: Prior to arrival of the aircraft in the 
United States, the test participant must transmit to Customs, via APIS, 
the information required under the terms of the APIS Memorandum of 
Understanding (MOU).
    (2) The test participant also must submit to Customs (at the port 
of arrival), at least two hours prior to arrival of the aircraft, an 
``onward connector listing,'' a document that identifies the arriving 
flight number, in-transit passenger names, their checked ITI baggage 
tag numbers, and their ultimate foreign destination. For any flight of 
less than two hours duration, the ``onward connector listing'' must be 
submitted to Customs (at the port of arrival) at the time of the 
aircraft's departure (from the port of departure enroute the United 
States). The participant may provide this information in the form of a 
computer generated report, screen print, or other hard copy document 
manually submitted to Customs in a timely manner, or by allowing 
Customs to electronically access its reservations database in order 
that Customs may extract an ``onward connector listing'' containing the 
required information in a timely manner.
    (3) The test participant must perform the staging and transferring 
of ITI baggage in the Customs approved security area. For purposes of 
this test, the Customs approved security area is as defined in 19 CFR 
122.181 and includes the Federal Inspection Services (FIS)

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area, the aircraft deplaning and ramp area, and other restricted areas 
designated by the port director. The Assistant Commissioner, Office of 
Field Operations, may authorize stricter limits to the security area, 
for purposes of the test, where a security or enforcement threat 
exists. Access to the Customs security area must be limited to 
personnel engaging in Customs related business and possessing Customs 
approved identification cards (holograms). (Participants should contact 
the port director with jurisdiction over the airport involved for 
specific information regarding the Customs airport security area (19 
CFR Subpart S (Sec. 122.181 et seq.).)
    (4) For plane-to-plane transfers, test participants will be allowed 
a one hour maximum connection time at each airport for directly 
transferring ITI baggage from one plane to another without having to be 
placed or stored in the Customs approved security area.
    (5) The test participant must ensure that all carrier employees or 
contract ramp service employees with access to the ITI baggage will 
have and display (or produce upon demand) approved identification 
issued under the Customs Regulations (19 CFR Part 122 Subpart S).
    (6) The test participant must timely deliver ITI baggage to the 
Customs approved security area or to the FIS area for inspection, if 
and when requested.
    (7) The test participant must maintain direct control of the ITI 
baggage until the departing carrier responsible for exporting the 
baggage has signed a receipt that will transfer bond liability for the 
baggage from the participant to the departing carrier. No transfer of 
bond liability, and thus no receipt, is required when the participant 
is importing and exporting the baggage. The participant may waive the 
receipt requirement, relieving the departing carrier from signing a 
receipt and accepting liability, only when the participant assumes 
liability for the baggage movement through the United States. The 
participant's application must reflect this assumption of liability and 
the identity of any departing carriers it has waived from the receipt 
signing process. The application may be amended at any time to add or 
delete the identity of such carriers, as changed circumstances warrant.
    Air carrier applicants that are accepted into the program test will 
be required to follow the above conditions of operation. If for any 
reason, however, a participant's APIS or electronic reservations 
database system becomes temporarily 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 ITI baggage information 
prior to the arrival of the flight.

The Application Process

    Participation in the test program is open only to APIS 
participating air carriers in good standing (performing under the APIS 
MOU at acceptable levels). To apply to participate in the test, APIS 
participating air carriers must submit a written application to the 
appropriate port director (with jurisdiction over the airport where the 
transfer of ITI baggage will occur) within 45 days following 
publication of this notice in the Federal Register. The application 
must be signed by an authorized official of the carrier and must 
indicate that the carrier wishes to voluntarily participate in the 
test. The application must reflect any assumption of liability for the 
baggage in accordance with test condition of operation 7. The 
application must also designate a local point of contact and telephone 
number for use by Customs personnel at the port. Customs will issue a 
written notification informing applicants whether their applications 
have been accepted or rejected, in the latter instance, with reasons 
therefore. A carrier may appeal a rejected application to the Assistant 
Commissioner, Office of Field Operations, within 15 days of the date of 
the rejection notice.
    To apply to participate in the APIS program, a prerequisite to 
participating in the test program, air carriers should contact the 
Customs port director with jurisdiction over the airport where they 
intend to operate under the test or contact Mike Cronin, Acting 
Associate Commissioner for Programs, U.S. Immigration & Naturalization 
Service, 425 I Street, N.W., Washington, DC 20536.

Misconduct

    If a test participant fails to follow the procedures or meet the 
requirements set forth in the ``Conditions of Operation,'' or otherwise 
fails to follow applicable laws or regulations, the participant may be 
suspended from the test and or, where warranted, subjected to 
penalties, and or liquidated damages, and or other administrative 
sanctions. Customs has the discretion to fully or partially suspend a 
participant based on the determination that an unacceptable compliance 
risk exists. This suspension may be invoked at any time after a 
carrier's acceptance in the test.
    A notice of proposed suspension from the test will be issued by the 
port director to the participant, apprising the participant of the 
facts and or conduct warranting suspension and whether the suspension 
is full or partial. The notice will state that the participant's 
written response must be received by Customs within 15 calendar days 
from the date of its issuance (the 15 day response period). The notice 
also will inform the participant that a failure to timely respond will 
result in the suspension taking effect on the day after the 15 day 
response period expires and that the notice of proposed suspension 
becomes a notice of suspension, and is effective, on that date.
    Where the participant elects to respond, the participant should 
address the facts and or conduct charges contained in the notice of 
proposed suspension, provide an explanation of the problems that 
resulted in the proposed suspension, and state how it has corrected 
these problems and will maintain compliance. The port director will 
decide whether to suspend the participant from the test or allow 
continued participation. The port director will so notify the 
participant in writing. Where suspension is warranted, the port 
director will issue a notice of suspension providing reasons for the 
suspension and setting forth an effective date. In the case of 
willfulness or where public health and safety are concerned, the 
suspension need not be proposed but may be effective immediately, in 
which case the port director will issue a notice of suspension 
providing reasons therefore and setting forth an effective date.
    At the time a notice of suspension becomes effective, the 
participant will no longer be permitted to participate in the test. 
This is not changed by the filing of an appeal.
    A notice of suspension may be appealed in writing to the Assistant 
Commissioner, Office of Field Operations, within 15 days of the date 
the notice of suspension became effective. In the appeal, the 
participant should address the reasons provided by the port director in 
the notice of suspension and may include additional arguments. Where 
the suspension resulted from a participant's failure to timely respond 
to a notice of proposed suspension, the appeal should address the facts 
or conduct charges contained in the notice of proposed suspension, 
provide an explanation of the problems that resulted in the proposed 
suspension, and state how it has corrected these problems and will

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maintain compliance. The Assistant Commissioner will respond to the 
appeal in writing within 15 days of its receipt. Where the appeal is 
granted, the participant will be permitted to resume participation in 
the test. Where the appeal is denied, the carrier may reapply to 
participate in the test only upon showing that all deficiencies 
resulting in suspension have been corrected.
    A full suspension from the test may be proposed where a test 
participant has been suspended from operating under the APIS program. A 
partial suspension may be proposed 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, in which case a partial 
suspension decision will affect only that flight (or those flights). 
Where a full suspension decision was based on the participant's 
suspension from APIS, the granting of an appeal is conditioned on the 
participant's reinstatement in APIS. Where a partial suspension 
decision was based on loss of Blue Lane eligibility, the grant of an 
appeal is conditioned on restoration of that status. (See the notice of 
February 23, 2000, for a discussion of APIS and Blue Lane eligibility.)
    A test participant also may face a proposed full or partial 
suspension 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 participant may face a 
full or partial suspension.
    A participant who has been suspended from the test for any reason 
(as of the date the notice of suspension became effective) will be 
required to file an air cargo manifest that lists ITI 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 suspension from the test, all covered flights will be 
affected. If the partial suspension was limited to a certain flight (or 
flights) or to a certain airport, only those flights or that airport 
will be affected.

New Time Elements

    Both the time period for applying to participate in the test 
program and the targeted test commencement date have been affected by 
this modification of the program test. The deadline for applying to 
participate in the test is extended to the date that is 45 days from 
the date of publication of this document, as specified in the ``Dates'' 
section of this document. The commencement date of the test is 60 days 
from the date of publication, also specified in the ``Dates'' section.
    The test may be extended beyond one year if extension is warranted. 
The test will be evaluated six months after its implementation, using 
the test criteria set forth in the notice of February 23, 2000.

    Dated: June 8, 2000.
Robert J. McNamara,
Acting Assistant Commissioner, Office of Field Operations.
[FR Doc. 00-14840 Filed 6-15-00; 8:45 am]
BILLING CODE 4820-02-U