[Federal Register Volume 66, Number 108 (Tuesday, June 5, 2001)]
[Notices]
[Pages 30265-30271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14601]


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DEPARTMENT OF THE TREASURY

Customs Service


Announcement of a National Customs Automation Program Test: The 
International Trade Data System (ITDS)

AGENCY: Customs Service, Treasury.

ACTION: General notice.

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SUMMARY: This document announces Customs plan to conduct a pilot test 
of the International Trade Data System (ITDS), an interagency system 
designed to enable various federal trade agencies to share a standard 
set of data in order to effect the more efficient electronic release of 
goods, conveyances, and crews. The pilot will be conducted for trucks 
only at the port of Buffalo, New York. Under the pilot, a participant 
will submit relevant information to ITDS to effect an importation, and 
ITDS will transmit certain elements of this information to pertinent 
agencies for processing the importation. This document explains the 
ITDS system, invites public comments concerning any aspect of the 
pilot, informs interested members of the public of the eligibility 
requirements for voluntary participation

[[Page 30266]]

in the pilot, and describes the procedures to be followed under the 
pilot program.

DATES: The pilot will commence at the port of Buffalo no sooner than 
June 18, 2001, first at the Peace Bridge location and 30 days later at 
the Lewiston Bridge location. It will run for 15 months and may be 
extended. Applications to participate in the pilot may be submitted 
throughout its duration. Written comments concerning this notice, 
including eligibility standards and information submission, must be 
received on or before July 5, 2001.

ADDRESSES: Written comments regarding this notice and applications for 
voluntary participation in the pilot should be addressed to Janet 
Pence, Chief, Client Representative Branch, Office of Information and 
Technology, 7501 Boston Boulevard, Springfield, VA 22153. Application 
forms will be available on the Internet at www.itds.treas.gov/register

 FOR FURTHER INFORMATION CONTACT: Concerning information regarding the 
test program and the application process: Janet Pence at (703) 921-
7500. Additional information concerning ITDS can be obtained on the 
Internet at www.itds.treas.gov

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 101.9(b) of the Customs 
Regulations (19 CFR 101.9(b)) provides for the testing of NCAP 
components (see T.D. 95-21). This pilot test is established pursuant to 
those regulations.
    The International Trade Data System (ITDS) is a federal government 
information technology initiative (Initiative IT06) of the National 
Performance Review. The goal of the initiative is to implement an 
integrated government-wide system for the electronic collection, use, 
and dissemination of international trade data. The ITDS was chartered 
in September of 1995 under then-Vice President Gore's memorandum, 
``Implementing the International Trade Data System'' (September 15, 
1995), and was reaffirmed in the Government Information Technology 
Services Board report, ``Access America: Reengineering Through 
Information Technology'' (February 1997).
    Initially, a special project office for the ITDS system was 
established under the Secretary of the Treasury. On November 17, 1999, 
the ITDS office and its functions and support were transferred to the 
Customs Service where it is now part of the Office of Information and 
Technology. A multi-agency board of directors, currently chaired by a 
representative of the U.S. International Trade Commission, guides the 
ITDS project.
    When fully developed, the ITDS system will facilitate information 
processing for businesses and the over 65 federal agencies involved in 
international trade. While Customs current automated processing system, 
the Automated Commercial System (ACS), is designed to accommodate the 
needs of some federal agencies, ITDS will be designed to accommodate 
all agencies that need international trade data, including those 
agencies not serviced by the current ACS system.
    When importing or exporting, trade participants (traders) are 
required to submit information to appropriate trade agencies to enable 
agencies to determine, for example, the legal admissibility of imported 
merchandise, the duty applicable to imported merchandise, the safe or 
unsafe condition of a truck intended to be used on U.S. highways, or 
whether food products are safe for consumption. Currently, traders are 
required to provide this information to each individual trade agency 
using a variety of different automated systems, a multitude of paper 
forms, or a combination of systems and forms. The United Nations 
Conference on Trade and Development (UNCTAD) has estimated that 
submission of redundant information and preparation of documentation is 
equal to 4-6% of the cost of the merchandise.
    With ITDS, traders will submit standard electronic data for imports 
or exports only once to ITDS. Then, ITDS will distribute this standard 
data to the pertinent federal agencies that have an interest in the 
transaction for their selectivity and risk assessment. The ITDS will 
provide each agency only information that is relevant to its mission. 
Thus, the ITDS system will serve as a government data collection and 
distribution facility, a ``single window'' system through which 
information necessary to trade transactions can flow efficiently from 
traders to agencies. By using this single window, traders will be 
relieved of the burden of submitting the same information to multiple 
federal agencies. The ITDS system will support the processes of 
multiple agencies, including data collection, processing, use, 
dissemination, and storage. Ultimately, ITDS will become the central 
data collection system for all federal agencies that, by law, require 
international trade data. As such, it will be the single, most 
convenient point for accessing that data.
    In addition to assisting federal government agencies in the 
processing of import and export transactions, ITDS will provide the 
framework to collect information on behalf of those agencies and will 
enable Customs to more effectively assist them in enforcing laws and 
regulations relating to international trade and transportation.
    Development of ITDS will be coordinated with the development of the 
Customs Automated Commercial Environment (ACE), the broader Customs 
Modernization effort, and the current and future requirements of other 
agencies' processing systems. Trade data will flow to and from ACE 
through ITDS.

I. The ITDS Pilot

    A pilot test (hereafter, pilot) involving individual federal 
agencies is an important part of the ITDS design and implementation 
plan. The pilot will be the first in a series of initiatives to develop 
a fully integrated, comprehensive trade data processing system. The 
pilot will test an infrastructure of hardware and software architecture 
to demonstrate ITDS as a viable system for the collection and 
dissemination of commercial trade data in a fully electronic 
environment.
    The agencies participating in the ITDS pilot are: The U.S. Customs 
Service, the Immigration and Naturalization Service (INS), the Food and 
Drug Administration (FDA), and the Department of Transportation's 
Federal Motor Carrier Safety Administration (FMCSA).
    The initial focus of the pilot will be on adapting to existing 
government and trade systems. Because the ITDS system will interface 
with these existing systems, the full ITDS standard data-set will not 
be used. The pilot will provide the necessary software infrastructure 
to allow the government and the trade to migrate toward use of the 
standard data-set as ITDS is further developed. Essentially, the pilot 
will test the ability of traders and motor carriers to provide the 
required data and the ability of the government to effectively share 
this data among several federal trade agencies and to integrate the 
results of the agencies' processing.

[[Page 30267]]

    Following the pilot, ITDS will move forward through various phases 
of implementation designed to:

--Reduce the cost and burden of processing international trade 
transactions for both the private trade community and the government;
--Provide the trade with a standard data set and a single system for 
import, export, and transit procedures relative to the goods involved 
and the transportation employed (conveyances and crew);
--Improve compliance with government trade requirements (e.g., public 
health and safety rules, export controls, etc.); and
--Provide users with access to more accurate, thorough, and timely 
international trade data.

II. The ITDS Pilot Process

    For merchandise that is processed through the ITDS pilot, both the 
importer (or its customs broker) who files the ITDS pilot entry and the 
carrier transporting the merchandise (or its authorized agent) who 
files the ITDS pilot manifest must be participants in the ITDS pilot. 
(Note that there is one exception to the importer or its broker filing 
an electronic ITDS pilot entry: where in-bond merchandise is processed 
through ITDS, the manifest is filed under ordinary ITDS procedures, but 
the entry in the form of a paper CF 7512 is filed at the secondary 
inspection station by the carrier or the importer's broker.) At this 
point, the only carriers that may participate are truckers transporting 
merchandise between Canada and the United States through the Peace 
Bridge or the Lewiston Bridge. A high degree of coordination will be 
required between the participating manifest filers and entry filers.
    Electronic filing is required for participation. Accordingly, 
manifest filers must have access to the Internet in order to submit the 
required web-based manifest (see ``Manifest filing'' below) and entry 
filers must be operational participants in the Automated Broker 
Interface (ABI) program (see 19 CFR Part 143, Subpart A). Entry filers 
also must develop the technical capacity to batch and address ITDS 
pilot entries and related transactions separately from non-pilot ABI 
transactions. ITDS entry filers will need to develop mechanisms to 
identify truckloads to be cleared under ITDS pilot procedures.
    Normally, the ITDS pilot manifest (filed by the carrier or its 
authorized agent) and the ITDS pilot entry (normally filed by the 
importer or its customs broker) must be filed electronically prior to 
arrival (at the Peace Bridge or the Lewiston Bridge, in accordance with 
this pilot) of any truck carrying merchandise being entered under the 
ITDS procedure. (Note again the exception for filing in-bond entries at 
the secondary inspection station.) By accepting both the pilot manifest 
and the pilot entry prior to arrival of a truck, the ITDS system will 
allow government agencies to analyze admissibility and enforcement 
actions before the merchandise arrives.
    While the electronic filings of the pilot manifest and entry will 
be accepted in any sequence, both filings must be received at least 30 
minutes prior to arrival of the carrier in order to permit government 
systems to perform the necessary pre-arrival processing. For 
merchandise subject to FDA regulations, while it is preferred that 
entry data be submitted twenty-four hours before arrival, entry data 
must be submitted at least six hours before arrival.
    It is noted that, except under the NCAP Prototype (see the notice 
published in the Federal Register (63 FR 44949) on August 21, 1998, 
concerning NCAP Prototype operations), trucking companies do not 
currently provide electronic manifest data to Customs. Electronic 
filing of the manifest is vital to this pilot because the manifest 
includes data required by Customs, FMCSA, and INS, in addition to the 
transportation data required to link the arrival of a truck to the 
carrier-assigned pro-bill numbers of the merchandise aboard the truck. 
The pro-bill numbers, in turn, link the manifest to the entries for the 
shipments aboard the truck. Carriers can be assured that the ITDS will 
provide a secure method of sending this information via the Internet.
    The Peace Bridge is equipped with transponder reading capability in 
accordance with Interagency Group (IAG) specifications. This equipment 
can read the permanently programmed serial number transmitted from a 
truck transponder that triggers port processing. The Lewiston Bridge 
does not have this capability and uses bar code technology instead. 
Accordingly, trucks operating with transponders which cross only the 
Peace Bridge may not need a carrier trip number bar code for ITDS 
processing, but all trucks transporting under ITDS procedures via the 
Lewiston Bridge must provide a carrier trip number in bar code format 
to the Customs Inspector in the primary inspection booth. It is 
recommended, however, that all transponder-equipped trucks, except 
those not likely to use the Lewiston Bridge, should carry a carrier 
trip number bar code in addition to the transponder.
Manifest Filing
    The carrier, or an authorized agent of the carrier filing for the 
carrier, must file the manifest using an ITDS web-form that is 
available on the Internet. A sample of this form is available on the 
Internet at www.itds.treas.gov. The Internet web site will also provide 
filing, arrival, examination, and release status information for each 
participating filer's recently filed manifests.
    All shipments of merchandise aboard the truck must be eligible for 
processing under the pilot. Merchandise eligible for ITDS pilot 
processing is merchandise that will be entered by consumption entry or 
in-bond entry. All merchandise aboard the truck must be reported in the 
manifest and entered under ITDS pilot procedures. Shipments for 
clearance under 19 U.S.C. 1321 (section 321 of the Tariff Act of 1930, 
as amended; hereafter, section 321)) will require country of origin and 
value reporting and an eligibility claim by the entry filer. (Under 
section 321, merchandise having minimal value can be entered free of 
duty or tax where the amount of revenue collected would be 
disproportionate to the expense and inconvenience to the Government in 
collecting it.) Shipments for processing under in-bond procedures may 
be included, but will always require manual paper processing (CF 7512-- 
in-bond entry) at the secondary inspection station. No merchandise 
transported in an ITDS pilot truckload may be cleared under Border 
Release Advanced Security and Selectivity (BRASS) procedures.
    The data elements of the ITDS pilot manifest include trip-level 
information and standard shipment information, as follows:
    (A) Trip-level information, as follows, is reported once in the 
manifest (unless otherwise indicated below):

--Carrier trip number (carrier's Standard Carrier Alpha Code* (SCAC), 
followed by a carrier-assigned number);
--Conveyance transponder number (optional; must be reported if the 
truck will use a transponder for arrival processing);
--Carrier number (DUNS number**);
--Manifest filer number (DUNS number**);
--Conveyance identification--selected from list of pre-identified 
conveyances (for information on pre-identification of conveyances, 
please refer to the ``Application'' section below);
--Trailer-equipment identification (container or license plate number 
and, if applicable, seal number; these

[[Page 30268]]

data elements may be repeated for tandems and containers on trailers);
--Gross shipping weight (in kilograms);
--Hazardous material indicator (Yes or No) and code (if Yes);
--Driver identification--selected from list of pre-identified drivers 
(for more information on pre-identification of drivers, please refer to 
the ``Application'' section below); and
--Crewmember/Passenger numbers--selected from list of pre-identified 
crewmembers and passengers (for information on pre-identification of 
crewmembers, please refer to the ``Application'' section below).

    (B) Standard shipment information is required for each shipment of 
merchandise aboard the truck:

--Pro-bill issuer (SCAC);
--Pro-bill number;
--Shipper number (DUNS number or name and address);
--Deliver-to party (DUNS number or name and address);
--Entry filer (ACS filer code; optional);
--In-bond status indicator (optional);
--Shipping quantity/type of packages; and
--Description of cargo.

    [* The SCAC is a unique code assigned by the National Motor Freight 
Traffic Association, Inc. (NMFTA), to transportation companies for 
identification purposes. Carriers that do not already have a SCAC may 
obtain one from NMFTA, 2200 Mill Rd., Alexandria, VA 22314-4654. 
Further information and an application form are available at . Annual 
fees apply.
    ** DUNS numbers are identifiers issued by DUN & Bradstreet free of 
charge. In order to obtain one, ITDS participants may call 800-333-0505 
or go to . Prior to requesting a DUNS number, participants should first 
verify that their company does not already have a DUNS number assigned. 
Many companies may already have such numbers for other than 
international trade purposes.]
    Until the truck arrives at the international border, the manifest 
Internet web form may be used to add, amend, replace or, if the truck 
is not to be processed under ITDS, delete a manifest. The ITDS system 
will keep an audit file to record in chronological order all changes 
made to manifest information. Each transaction will be edited and 
validated on-line. A particular conveyance transponder number will be 
accepted in a manifest only if all previous manifests on file with the 
same conveyance transponder number are in ``arrived'' status. Error-
free manifests will be stored on the ITDS transaction database. 
Manifests containing errors will be returned for correction.
Entry Filing
    For each shipment of merchandise reported in an ITDS pilot 
manifest, an entry must be filed, as follows: (1) Consumption entries 
must be filed electronically prior to arrival of the cargo at the 
international border (the port of Buffalo under the pilot) using ITDS 
procedures and (2) in-bond entries must be filed in paper format (CF 
7512) at the secondary inspection station upon arrival at the port. 
ITDS consumption entries must be filed by the importer of record or a 
customs broker on behalf of the importer of record. In-bond entries may 
be filed by either the carrier, the importer, or the importer's broker 
at the port.
    For ITDS consumption entries, entry data will be transmitted to 
ITDS using current ABI data formats. (Full details of the data for 
these records can be found in the Customs and Trade Automated Interface 
Requirements (CATAIR) available on the Internet at www.customs.gov/
impoexpo/auto--cat.htm.) Specifically, either an ABI Cargo Selectivity 
transaction (application ``HI'') or an ABI Border Cargo Selectivity 
transaction (application ``HN'') must be transmitted to ITDS. Pro-bill 
numbers transmitted in entry data will serve to link the entry with the 
appropriate manifest.
    If an ABI Cargo Selectivity transaction (application ``HI'') is 
transmitted, it must include at least one ``HA'' record. An ``HA'' 
record reports the pro-bill of a shipment covered by the entry. 
Specifically, in the ``HA'' record, the SCAC code of the issuer of the 
pro-bill will be reported in the ``Issuer Code of Master Bill number'' 
field, and the pro-bill number will be reported in the ``Master Bill 
number'' field.
    If an ABI Border Cargo Selectivity transaction (application ``HN'') 
is transmitted, it must include at least one ``0M'' (zero-M) record. A 
``0M'' record reports the pro-bill of a shipment covered by the entry. 
Specifically, in the ``0M'' record, the SCAC code of the issuer of the 
pro-bill will be reported in the ``Issuer of Master Bill Number'' 
field, and the pro-bill number will be reported in the ``Master Bill 
number'' field.
    When FDA data are required for cargo release processing, data 
satisfying that agency's requirements will be reported in ABI formats 
as currently accepted by ACS. These data will be incorporated in the 
ABI Cargo Selectivity or Border Cargo Selectivity transaction.
    Note that no modifications to current ABI records are required. 
However, ITDS pilot entries and related transactions (i.e., ABI entry 
status queries (applications ``II'' and ``IN'') and other government 
agency corrections (application ``CP'') for ITDS pilot entries) must be 
batched and addressed separately from non-pilot ABI data. Current ABI 
data communications protocols will be supported.
    Where a shipment is eligible for clearance under section 321, the 
entry filer may certify the shipment's eligibility under the statute. 
This may be accomplished by submitting an ABI section 321 eligibility 
claim (a new ABI application for use only under the ITDS pilot). These 
claims must be addressed to the same specially assigned ABI message 
queue as are other ITDS pilot ABI data and include the following 
information:

--Entry filer number (ACS filer code);
--Pro-bill issuer (SCAC);
--Pro-bill number;
--Section 321 eligibility claim;
--Country of origin; and
--Value of the shipment in U.S. dollars.

    The ITDS pilot system will not accept entry changes after arrival 
of cargo at the international border. Before arrival of the cargo, the 
ITDS pilot system will apply the same rules as ACS in permitting filers 
to make entry data changes. If changes are made, ITDS will keep an 
audit file to record them in chronological order. ITDS entries will be 
edited and validated. All current ABI edit and validation rules, 
including those for FDA and NHTSA data, will apply. The ITDS pilot 
system will also perform additional FDA edits not currently performed 
by ABI. Standard ABI formats (application ``HR'' for Cargo Selectivity, 
application ``HS'' for Border Cargo Selectivity, application ``DT'' for 
other government agency data rejections, and the new ABI application 
for section 321 eligibility claims) will be used to return acceptance 
and rejection messages to the filer of the entry. Error-free pilot 
entries will be stored on the ITDS transaction database. Pilot entries 
containing errors will be rejected for correction.
    Where merchandise is to be processed under in-bond procedures, the 
manifest filer may so indicate by submitting an in-bond status 
indicator for that merchandise. As above, processing of in-bond 
merchandise will always require manual paper processing (CF 7512--in-
bond entry) at the secondary inspection station at the border port.
Risk Assessment
    The ITDS pilot system will pass pertinent manifest and entry data 
to the appropriate participating agencies for

[[Page 30269]]

automated risk assessment. Only information relevant to the agency's 
mission will be passed. Based on the information received, a 
participating agency may place a hold to prevent release of the truck 
at the primary inspection booth.
    Agency risk assessment procedures begin immediately upon receipt of 
the ITDS pilot manifest, as follows:
    1. Customs will perform a risk assessment using complete manifest 
data. Based on this information, Customs may place a hold on the 
driver, one or more crewmembers, the conveyance, or one or more 
shipments.
    2. The FMCSA will perform risk assessment using data identifying 
the driver, carrier, and conveyance. Based on this information, FMCSA 
may place a hold on the driver or the conveyance.
    3. The INS will perform risk assessment using data identifying the 
driver and crewmembers. Based on this information, INS may place a hold 
on the driver or one or more crewmembers.
    Agency risk assessment procedures begin immediately upon receipt of 
the ITDS pilot entry (other than an in-bond entry), as follows:
    1. The ITDS pilot system will pass complete entry data to ACS. An 
ACS entry record will be created, and ACS cargo selectivity screening 
will be performed. As a result of the screening, Customs may place a 
hold on the merchandise covered by the entry.
    2. For commodities subject to FDA regulation, an extract of the 
entry data and all reported FDA data will be passed to the FDA OASIS 
system for risk assessment. FDA may place a hold on the merchandise 
covered by the entry. (Note that submission of entry data with FDA 
elements is preferred twenty-four hours before arrival and is, in any 
event, required at least six hours before arrival.)
    The ITDS pilot system will link each manifest with corresponding 
entries and consolidate the results of the participating agencies' risk 
assessments. However, no agency's risk assessment results will be 
communicated to manifest or entry filers prior to arrival of the truck 
at the primary inspection booth.
Arrival Processing at the Port
    At the Peace Bridge, arrival processing will normally begin when a 
truck's transponder interacts with the dedicated short-range radio 
communications reader at the primary inspection booth. Upon reading the 
permanently programmed transponder number, the ITDS system will 
initiate arrival processing. At the Lewiston Bridge, or at the Peace 
Bridge if a truck is not equipped with transponders, the truck driver 
will present a carrier trip number in bar code format to the Customs 
Inspector in the primary inspection booth. By electronically scanning 
the bar code, the Customs Inspector will initiate ITDS arrival 
processing. The ITDS manifest facility on the Internet will provide a 
means for printing carrier trip number bar codes.
    Data will be considered incomplete upon arrival of the truck if the 
manifest has not been accepted or the entry has not been accepted for 
one of the shipments reported in an accepted manifest. If data is 
incomplete, or if the manifest includes one or more in-bond shipments, 
the primary Customs Inspector will refer the truck to the secondary 
inspection station. In these cases, the truckload will be processed 
under standard, non-pilot release procedures.
    If data is complete upon arrival of the truck and the manifest 
includes no in-bond shipments (i.e., the manifest and entry has been 
accepted for each reported shipment), the ITDS pilot processing will 
proceed. The ITDS pilot system will accept no further changes to 
manifest or entry data associated with the trip after ITDS arrival 
processing has been initiated. The ITDS system will retrieve the 
corresponding manifest, all associated entry data, and the agencies' 
risk assessment results and display these records to the primary 
Customs Inspector.
    The primary Customs Inspector will review the risk assessment 
results. If no agency risk assessment has resulted in a hold, the 
primary Customs Inspector generally will release the truck and its 
shipments at the primary inspection booth. The primary Customs 
Inspector may, however, initiate a hold and direct the truck to the 
secondary inspection station. No paper forms will be required for 
primary inspection processing, such as a paper manifest, entry, 
invoice, or other paperwork (except the carrier trip number bar code 
for trucks without transponders).
    If any agency's risk assessment has resulted in a hold, the primary 
Customs Inspector will direct the truck to the secondary inspection 
station. During the pilot, there will be motor carrier safety 
inspectors stationed at the Peace Bridge and Lewiston Bridge to ensure 
that drivers and vehicles comply with U.S. commercial vehicle safety 
requirements. If a truck is referred to the secondary inspection 
station, standard paper entry documents and invoices for all entries 
will be required for Customs and FDA processing.
    Following release of cargo from either the primary inspection booth 
or the secondary examination station, the ITDS pilot system will update 
the appropriate ACS entry records with the release date. Entry summary 
reporting, payment, and all other post-entry processing will be 
accomplished under existing procedures.

III. Eligibility Criteria

    In order to participate in the ITDS pilot, manifest filers 
(carriers or their agents) must have access to the Internet in order to 
submit the required web-based manifest. ITDS trucks, drivers, and 
crewmembers must be identified in advance.
    Entry filers (customs brokers and importers) who wish to 
participate in the ITDS pilot must be participants in Customs ABI 
system. They must also develop the technical capacity to batch and 
address ITDS pilot entries and related transactions separately from 
non-pilot ABI transactions. In order to ensure proper filing, ITDS 
pilot entry filers will need to develop mechanisms to identify 
truckloads to be cleared under ITDS pilot procedures. A high degree of 
coordination will be required between participating manifest filers and 
entry filers.
    In general, approval for participation in the ITDS pilot will be 
granted to all applicants who meet the requirements above and provide 
all required application information. It is noted that both the 
importer (or its customs broker) who files the ITDS pilot entry and the 
carrier (or its agent) who files the pilot manifest must be 
participants in the ITDS pilot to effect an entry of merchandise 
through ITDS pilot procedures.

IV. Application

    Both manifest filers and entry filers who wish to participate in 
this pilot must submit an application. Applications may be mailed to: 
Janet Pence, Chief, Client Representative Branch, Office of Information 
& Technology, 7501 Boston Blvd., Springfield, VA 22153. Application 
forms will be available on the Internet at www.itds.treas.gov/register.
    Applications submitted by manifest filers (carriers and their 
agents) must state that the applicant wishes to voluntarily participate 
in the ITDS pilot and must address the eligibility criteria outlined 
above. The application must also include the following information:

--Name and address of the manifest filer;
--Point of contact name, e-mail address, and telephone number;
--Alternate point of contact name, e-mail address, and telephone 
number;

[[Page 30270]]

--DUNS number of the manifest filer; and
--For each carrier for whom manifests will be filed:
    --Name and address of the carrier;
    --DUNS number of the carrier;
    --SCAC of the carrier;
    --U.S. DOT number and type (CA, MX, or US) of the carrier (if 
available);
--For each conveyance that the carrier expects to use for 
transportation of ITDS pilot truckloads across international borders:
    --Vehicle identification number (VIN);
    --Country, state/province, and number of primary registration 
license plate;
    --Default transponder number (if available);
--For each crewmember that the carrier expects to employ for 
transportation of ITDS pilot truckloads across the international 
border:
    --IRS registration number (if known);
    --Given name;
    --If applicable, middle name and/or maternal name;
    --Paternal name;
    --Name suffix;
    --Date of birth;
    --Country of citizenship; and
    --For each driving crewmember:
    --Country, state/province, and number of commercial driver license.

    Manifest filers will be required to provide the same information 
for new conveyances and crewmembers that are added throughout the 
course of the pilot. Internet web forms will be provided for submission 
of these updates.
    Applications submitted by entry filers (customs brokers and 
importers) who wish to participate in this pilot must state that the 
applicant wishes to voluntarily participate in the ITDS pilot and must 
address the eligibility criteria outlined above. The application must 
also include the following information:

--Name and address of the entry filer;
--Point of contact name, e-mail address, and telephone number;
--Alternate point of contact name, e-mail address, and telephone 
number; and
--ACS filer code of the entry filer.

    Customs will inform applicants, in writing or by e:mail, of their 
selection or non-selection for participation in the pilot. The notice 
will provide reasons for non-selection. An applicant may re-apply by 
resubmitting an application that addresses and resolves the reason(s) 
given for non-selection.

V. Misconduct

    If a pilot participant makes late or inadequate submissions of 
manifest and/or entry data, or fails to exercise reasonable care in the 
execution of participant obligations and the filing of information 
regarding the admissibility of merchandise and declaring the 
classification, value, and rate of duty applicable to the merchandise, 
or otherwise fails to follow the procedures (outlined in this document) 
or applicable laws and regulations (save those suspended under the 
pilot), then the participant may be suspended or removed from the pilot 
program and/or subjected to penalties, liquidated damages, or other 
administrative sanctions. Customs has the discretion to suspend or 
remove a pilot participant based on the determination that an 
unacceptable compliance risk exists. This action may be invoked at any 
time after acceptance in the pilot.
    Any decision proposing suspension or removal of a participant may 
be appealed in writing to Eugene A. Rosengarden, U.S. International 
Trade Commission, 500 E. St., SW., Washington, DC 20436, within 15 days 
of the decision date. Such proposed suspension/removal will apprise the 
participant of the facts or conduct warranting suspension. If no appeal 
is filed within 15 days, the decision proposing suspension or removal 
is final, and the participant may no longer continue with ITDS 
processing as of that date. If an appeal is filed, the participant may 
continue with ITDS processing until a decision on the appeal is made. 
In the case of willfulness or where public health interests or safety 
are concerned, the suspension/removal may be effective immediately. 
Should the participant appeal the notice of suspension or removal, the 
participant should address the facts or conduct charges contained in 
the notice and state how he does or will achieve compliance. If a 
participant is assessed with a penalty, liquidated damages, etc., 
normal procedures apply to contest those actions.

VI. Regulatory Provisions Suspended

    Under Sec. 101.9(b) of the Customs Regulations (19 CFR 101.9(b)), 
for purposes of conducting a test program or procedure (referred to in 
this document as a pilot) to evaluate planned components of the NCAP 
(as described in 19 U.S.C. 1411(a)(2)(G)), the Commissioner of Customs 
may impose requirements different from those specified in the 
regulations, provided that the departure does not affect collection of 
the revenue, public health or safety, or law enforcement. These 
different requirements imposed under a test may require more or less 
information than required under the regulations.
    Ordinarily, merchandise that qualifies for treatment under section 
321 is subject to the requirements of Sec. 143.23(j), which pertains to 
the informal entry of shipments of merchandise not exceeding $200. 
Among these are the requirements to file a bill of lading or a manifest 
listing each bill of lading (Sec. 143.23(j)) and to submit the name and 
address of the ultimate consignee (Sec. 143.23(j)(3)). ITDS 
participants file a manifest under ITDS procedures that meets the 
requirements of the regulation, but ITDS procedures do not require the 
submission of the ultimate consignee name and address. Rather, the DUNS 
number or name and address of the deliver-to party is provided in the 
manifest. Thus, for purposes of the ITDS pilot, Customs is suspending 
the requirement of Sec. 143.23(j)(3).
    Also, some information beyond what is required in Sec. 123.4 
concerning inward foreign manifests is requested under the pilot. To 
the extent that the pilot exceeds the finite requirements of 
Sec. 123.4, Customs is suspending this limitation of the regulation.

VII. Pilot Evaluation

    Customs, the FDA, the INS, the FMCSA, and participants in the pilot 
will meet to: (1) Review all public comments received relative to any 
aspect of the pilot program or procedures, (2) form problem solving 
teams, and (3) establish baseline measures and evaluation methods and 
criteria. Based on Customs analysis, Customs may amend pilot procedures 
as necessary. One year after the implementation of the pilot, 
evaluation results will be published in the Federal Register and the 
Customs Bulletin.
    Evaluation criteria for participating government agencies may 
include workload impact, policy and procedural accommodation, cost 
benefit, and compliance impact. Criteria for trade participants may 
include cost benefit, system efficiency, operational efficiency, and 
other elements identified by the trade community. Evaluation will also 
encompass the data elements required for federal trade agency 
processing, including the availability of data, the need for the data, 
the time when data must be submitted, alternative methods of archiving 
and retrieving repetitive data, and continued efforts to eliminate 
redundant data. The data elements listed in this document are for the 
pilot. The evaluation of the

[[Page 30271]]

pilot may result in changes to this data set. There will be ongoing 
sessions with the trade community and the participating agencies in the 
evaluation of this data.
    Note that the fact of participation in the ITDS pilot is not 
confidential information. Lists of participants will be made available 
to the public by means of the Customs Electronic Bulletin Board, the 
Customs Administrative Message System, and upon written request. All 
interested parties are invited to comment on the design, conduct, and 
evaluation of the ITDS pilot at any time during the prototype.

    Dated: May 31, 2001.
Bonni G. Tischler,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 01-14601 Filed 6-4-01; 8:45 am]
BILLING CODE 4820-02-P