[Federal Register Volume 67, Number 22 (Friday, February 1, 2002)]
[Proposed Rules]
[Pages 4930-4938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2466]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 24, 123, 132, and 142

RIN 1515-AC92


Procedures Governing the Border Release Advanced Screening and 
Selectivity (BRASS) Program

AGENCY: Customs Service, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations to 
provide for the Border Release Advanced Screening and Selectivity 
(BRASS) Program, an improved automated and electronic system that will 
replace the Line Release method of processing certain repetitive and 
high volume shipments of merchandise into the U.S. Like the present 
Line Release Program, the proposed BRASS Program will continue to 
provide for the expedited processing, through the use of computers and 
bar-code technology, of certain high-volume, repetitively-shipped 
merchandise that is imported at designated locations. The proposed 
BRASS Program regulations also will provide for the centralized 
processing of applications for BRASS processing privileges, and afford 
administrative appeal rights to applicants who are denied participation 
in the BRASS Program and to participants whose BRASS processing 
privileges are subsequently revoked.

DATES: Comments must be received on or before April 2, 2002.

ADDRESSES: Written comments may be addressed to, and inspected at, U.S. 
Customs Service, Office of Regulations and Rulings--Regulations Branch, 
1300 Pennsylvania Avenue, NW., Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: Enrique S. Tamayo, Office of Field 
Operations, Trade Programs, Cargo Release Branch; (202) 927-3112.

SUPPLEMENTARY INFORMATION:

Background

    In 1992, Customs amended the Customs Regulations at part 142 (19 
CFR part 142), which pertains to the entry process, to add a new 
subpart D to provide for the Line Release method of processing certain 
shipments of merchandise entering the U.S. See, T.D. 92-93. Line 
Release is an automated system designed to release and track, through 
the use of personal computers and bar-code technology, shipments of 
merchandise deemed by Customs to be repetitive and high-volume and that 
are imported at designated locations. Line Release was implemented as a 
Disc Operating System (DOS)-based program that interfaces with the 
Automated Commercial System (ACS). In 1999, the use of Line Release at 
certain high-risk locations along the land borders of the U.S. for 
shipments was conditioned on the imported merchandise being transported 
by carriers that participated in the Land Border Carrier Initiative 
Program (LBCIP). See, T.D. 99-2.
    In the mid 1990s, Customs began developing the Border Release 
Advanced Screening and Selectivity (BRASS) Program. Like the present 
Line Release Program, the proposed BRASS Program will continue to 
provide for the expedited processing, through the use of computers and 
bar-code technology, of certain high-volume, repetitively-shipped 
merchandise that is imported at designated locations. Transactions may 
continue to be designated for either release under entry summary or 
release for immediate delivery. However, the BRASS Program is a 
windows-based program designed to improve and replace the DOS-based 
Line Release Program.
    The proposed BRASS Program also improves upon the Line Release 
Program in two areas. First, the

[[Page 4931]]

proposed BRASS Program provisions provide for the centralized 
processing of requests for BRASS privileges at designated border 
locations. (Under the present Line Release Program, a decentralized 
application procedure is followed, whereby applications are submitted 
to local port directors for approval, which can result in multi-port 
applications being approved at one port but denied at another port. 
Under the proposed BRASS Program provisions, a centralized application 
procedure is proposed, so that there will be uniform processing of 
applications.) The centralized locations are at Saint Albans, Vermont 
(for merchandise to be entered along the northern border), and San 
Diego, California (for merchandise to be entered along the southern 
border).
    Second, the proposed BRASS Program provisions improve upon the Line 
Release Program by affording appeal procedures for applicants who are 
denied participation in the BRASS Program and participating entry 
filers whose BRASS privileges are subsequently revoked. Two levels of 
administrative appeal will be provided. The first level of appeal will 
be to the Director of Field Operations at the Customs Management 
Center, which oversees the BRASS Processing Center that issues a notice 
of nonselection (to applicants) or adverse action (to participants). 
Should the first appeal result in a negative determination, a second 
level of appeal may be taken to the Assistant Commissioner, Office of 
Field Operations. Under the present Line Release Program, there are no 
appeal provisions for applicants or participating entry filers.
    Customs is now proposing in this document to replace the Line 
Release Program provisions at subpart D of part 142 of the Customs 
Regulations with provisions regarding the BRASS Program. The current 12 
sections of this subpart (Secs. 142.41-142.52) will be replaced with 6 
sections (Secs. 142.41-142.46) that will provide for the BRASS Program. 
The current provisions at Secs. 142.47-142.52 will be removed from the 
Customs Regulations (19 CFR subpart D of part 142) and the information 
they contain that relates to BRASS will be consolidated. Conforming 
reference changes also will be made to Secs. 24.23, 123.71, and 132.15. 
Participants already in the Line Release Program do not need to reapply 
for participation in the BRASS Program.
    It is noted that further descriptive information regarding the 
BRASS Program will be provided in a new BRASS Handbook, available from 
Customs Headquarters and at ports of entry designated for BRASS use.

Discussion of Proposed Amendments to the Regulations

Section 142.41--``Description of BRASS Program''

    Under the heading ``Description of BRASS Program'', this section 
will explain the BRASS Program in general terms. The BRASS Program is 
described as an automated and electronic system designed, through the 
use of computers and bar-code technology, to expedite the processing 
and release of certain high-volume, repetitively-shipped merchandise 
that is imported at designated locations. BRASS transactions can be 
designated for either release under entry summary or release for 
immediate delivery. Merchandise shipments arriving by motor carrier as 
well as by rail may be processed through BRASS.
    The paragraph provides that participation in the BRASS Program is 
voluntary and that participants must comply with the program's 
requirements, which include the pre-filing of certain import 
information for qualifying shipments of merchandise and special 
identification of those shipments with an assigned bar code. While 
Customs may inspect any shipment of merchandise approved for BRASS 
processing, in general, BRASS shipments enjoy expedited processing and 
release through all designated and approved BRASS ports of entry 
without further Customs processing.
    Further, this paragraph will provide that at certain high-risk 
locations along the land borders of the United States (the locations 
are published in the Federal Register), the use of BRASS processing and 
release for particular shipments of merchandise may be denied by 
Customs unless the imported merchandise is transported by carriers that 
participate in the Land Border Carrier Initiative Program (see subpart 
H of part 123 of this chapter).
    This paragraph also will caution that participants should be aware 
that failure to follow program requirements for BRASS-approved 
processing can result in revocation of their participation in the 
program. Further, failure to follow program requirements may result in 
participants being liable for civil and criminal penalties.
    Further information concerning the BRASS Program will be contained 
in the forthcoming BRASS Handbook, that will be available from U.S. 
Customs Service Headquarters, BRASS Processing Centers, and at 
designated ports of entry approved to process BRASS shipments of 
merchandise.

Section 142.42--``Application for BRASS Processing''

    Under the heading ``Application for BRASS processing'', this 
section will explain the application and decision process in 5 
paragraphs. The section will discuss: (1) Who is eligible to apply to 
the BRASS Program, (2) what merchandise qualifies for BRASS processing, 
(3) how applicants apply to the BRASS Program, (4) how applications are 
processed through the new centralized BRASS Processing Centers, 
including how applicants are notified of their approval or denial to 
participate in the BRASS Program, and the administrative appeal 
procedures available to applicants denied participation, and (5) what 
the grounds are for denying an application.
    Under the heading ``Eligible applicants'', paragraph (a) will 
provide that only importers that file their own entries and brokers may 
be applicants for the BRASS Program. The paragraph provides that 
applicants must be of good character.
    Under the heading ``Merchandise criteria'', paragraph (b) will 
explain what types of merchandise qualify for BRASS processing and 
explain the volume requirements and examination compliance rates 
applicable to qualifying import transactions. Qualifying merchandise 
cannot be prohibited or restricted, subject to absolute quota, denied 
approval for importation by another Federal government agency required 
to approve the merchandise, or subsequently determined to be unsuitable 
for expedited processing under BRASS for reasons pertaining to trade 
policy.
    Further regarding BRASS qualifying merchandise, the examination 
compliance rate for the qualifying import transactions must be 
relatively high, as established by the centralized processing center 
where the application will be submitted.
    Because the BRASS Program exists to process and release high-
volume, repetitively-shipped merchandise, an applicant will be required 
to establish, for each port of entry at which he requests BRASS 
processing, that the annual number of import transactions between the 
parties designated is sufficient to qualify for BRASS processing. This 
is a quantitative measure of the number of import transactions in which 
the applicant engaged in the previous year and is established by the 
centralized processing center where the application will be submitted. 
The one-year-parameter on an applicant's import transactions at the 
designated port of

[[Page 4932]]

entry is necessary to give Customs sufficient enough background to 
determine, in part, whether the applicant should be granted BRASS 
processing privileges at that requested location.
    For BRASS processing privileges along the northern border, the 
number of import transactions claimed for eligibility must have been 
with the same manufacturer or shipper, and the same importer. For BRASS 
processing privileges along the southern border, the number of import 
transactions claimed for eligibility must have been with the same 
manufacturer or shipper, importer, and commodity. (The reason no 
precise number of qualifying shipments is provided for in the 
regulations is because each port of entry designated for BRASS use has 
different processing facilities and varying staff and merchandise 
processing levels. Specific numbers for qualifying shipments along each 
border will be provided for in the BRASS Handbook, which will account 
for shifting risk factors associated with the BRASS Program.)
    Under the heading ``Application procedure'', paragraph (c) will 
explain that a broker or importer who files his own entries applies for 
participation in the BRASS Program by submitting an application for 
each commodity to be processed, accompanied by a representative sample 
of an actual commercial invoice for the product(s) sought to be 
processed under BRASS, to the 8 appropriate BRASS Processing Center. An 
application is filed on new Customs Form (CF) 7600 (Application for 
BRASS). On the application, the applicant must provide identification 
information on any other party, such as the shipper or manufacturer of 
the qualifying merchandise, that may be involved with the proposed 
BRASS transactions. Each of the parties identified will be evaluated to 
determine whether they are of good character.
    Copies of the CF 7600 are available at any Customs BRASS port of 
entry. The information required to be submitted on the CF 7600 will be 
explained in the BRASS Handbook.
    Applications for BRASS processing privileges along the southern 
border should be submitted to the centralized Southern Border BRASS 
Processing Center. The address for this processing center will be: U.S. 
Customs Service, 9777 Via De La Amistad, San Diego, California 92154, 
Attn: BRASS Processing Center.
    Applications for BRASS processing privileges along the northern 
border should be submitted to the centralized Northern Border BRASS 
Processing Center. The address for this processing center will be: U.S. 
Customs Service, 50 S. Main St., Saint Albans, Vermont, 05478-2198, 
Attn: BRASS Processing Center.
    Under the heading ``Notice of action on application'', paragraph 
(d) will explain the new centralized processing of applications through 
BRASS Processing Centers, how applicants are notified concerning their 
approval or denial to participate in the BRASS Program, and the 
administrative appeal procedures available to applicants denied 
participation. Applications will be evaluated by the appropriate BRASS 
Processing Center. Based on the information provided on the BRASS 
application, Customs makes a determination as to whether the applicant, 
any party listed on the BRASS application, and the merchandise meet the 
standards set forth in the BRASS regulations. The BRASS Processing 
Center then notifies the applicant in writing as to whether the 
application is approved or denied. (Where an application is incomplete 
or otherwise contains information that cannot be verified by the 
appropriate BRASS Processing Center, it will be returned for 
clarification.)
    When an application is approved, Customs assigns the appropriate 
number of C-4 identifiers, which must be used by the entry filer for 
those shipments that will be processed through BRASS. A C-4 identifier 
(Common Commodity Classification Code) is a unique, four-element bar 
code assigned by the appropriate BRASS Processing Center that 
identifies the shipper or manufacturer, importer, entry filer, and 
commodity. If multiple commodities are to be processed at a designated 
location, then the C-4 identifier assigned for each commodity must be 
used.
    When an application is denied, Customs will issue a notice of 
nonselection to the applicant. The notice of nonselection will state 
the reason(s) for the decision and inform the applicant of the 
administrative appeal procedures that he may pursue under proposed 
Sec. 142.46.
    Under the heading ``Grounds for denial'', paragraph (e) will 
delineate the specific grounds for not approving an application. This 
paragraph will provide that the appropriate BRASS Processing Center may 
deny an applicant's application for any of the following reasons:
    1. A reputation imputing to the applicant criminal, dishonest, or 
unethical conduct, or a record of that conduct;
    2. Failure of the merchandise to meet the standards set forth in 
the regulation;
    3. Evidence that the application contains false or misleading 
information concerning a material fact; or
    4. A determination is made that participation in the BRASS Program 
would endanger the revenue or security of the Customs area.

Section 142.43--``Responsibilities of Participant Accepted for BRASS 
Processing''

    Under the heading ``Responsibilities of participant accepted for 
BRASS processing'', this section will provide that, when approved to 
participate in the BRASS Program, the applicant is denominated an 
``entry filer'' for BRASS purposes. Entry filers agree to certain 
responsibilities. These responsibilities include the following:
    1. To provide the port director, in writing, with a range of 
numbers for BRASS processing use, so that Customs can assign a BRASS 
entry number automatically to each BRASS transaction. A separate range 
must be provided for each BRASS site and mode of transportation. Entry 
filers must not assign these numbers to other import transactions. As 
the previously supplied range nears exhaustion, the entry filer must 
provide the local port director with new ranges of BRASS entry numbers;
    2. To properly prepare, distribute, and use C-4 identifier(s) for 
BRASS shipments. If multiple commodities are to be processed at a 
designated location, then the C-4 identifier assigned for each 
commodity must be used. When multiple commodity processing is desired, 
the entry filer should consult with the local port director as to the 
number of commodities allowed to be processed per shipment at the port;
    3. To immediately notify Customs in writing of any changes in the 
C-4 identification information that was provided on the originally-
approved BRASS application by submitting a corrected BRASS application 
with a copy of the originally-approved application. These changes 
concern the identification of the shipper or manufacturer, importer, 
entry filer, or the commodity. The notice must include the C-4 
identifier to be changed and the date the change is to be effective; 
and
    4. To immediately notify Customs in writing of any changes 
regarding their method of release for BRASS shipments (from entry or 
immediate delivery to the other). If the release procedure is to be 
changed permanently, the request must include the date the change is to 
be effective and must be submitted to the BRASS Processing Center that 
issued the C-4 identifier. If the release

[[Page 4933]]

procedure is to be changed temporarily, the request must include the 
date the releases are to return to the release type originally 
approved. Further information concerning requests for a change in the 
method of release will be found in the BRASS Handbook.

Section 142.44--``BRASS Processing Procedures''

    Under the heading ``BRASS processing procedures'', this section 
will explain the expedited processing and release procedures of the 
BRASS Program and the procedure when a compliance examination is 
ordered. Because the processing procedures for merchandise carried by 
motor and rail carriers are different, they are explained in separate 
paragraphs: the motor carrier provisions are explained at paragraph 
(a); and the rail carrier provisions are explained at paragraph (b). It 
is noted that for rail carriers, only Automated Manifest System (AMS) 
rail carriers are eligible for BRASS processing. In general, when 
shipments are presented for expedited processing and release under 
BRASS:
    1. The merchandise must be specially identified with the proper C-4 
code(s) by the entry filer and presented at a designated port (s) of 
entry approved to process BRASS shipments;
    2. For motor carriers, the documentation to be submitted includes 
an original manifest (and as many copies as the particular BRASS site 
requires) and an original invoice, with the appropriate C-4 bar code(s) 
attached. For rail carriers, the documentation data must be submitted 
electronically;
    3. Customs assigns a BRASS entry number to the transaction from the 
range of numbers previously provided by the entry filer for BRASS 
processing; and
    4. Customs processes the merchandise as a BRASS transaction and the 
release information is either stamped on the original manifest and 
invoice documents or sent electronically, whichever procedure is 
applicable.
    (a) For motor carriers, the original paper documents are stamped 
and the drivers are provided with a copy of the manifest, so that they 
may depart the port; entry filers are provided with the invoice stamped 
with the BRASS entry number assigned and the appropriate C-4 identifier 
information; and Customs retains the original, stamped manifest 
document;
    (b) For rail carriers, the release data is electronically sent to 
the entry filer and to the carrier.
    Occasionally, a compliance examination may be ordered by Customs. 
When BRASS shipments undergo a compliance examination:
    1. The first three steps indicated above are followed, except that 
the appropriate documentation submitted to Customs is returned to the 
entry filer; and
    2. The entry filer then either:
    (a) Enters the merchandise, by preparing either a Customs Form (CF) 
3461 or CF 3461 Alternate that utilizes the BRASS entry number assigned 
by Customs, or
    (b) Applies for a special permit for immediate delivery of the 
merchandise, by preparing either a CF 3461 or CF 3461 Alternate with 
the required supporting documentation, that utilizes the BRASS entry 
number assigned by Customs.

Section 142.45--``Revocation of BRASS participation''

    Under the heading ``Revocation of BRASS participation'', this 
section will explain how Customs can revoke an entry filer's privilege 
to participate in the BRASS Program.
    Under the heading ``Immediate revocation'', paragraph (a) will 
delineate the specific reasons when the appropriate BRASS Processing 
Center or port director may immediately revoke a participant's BRASS 
privileges. These reasons include:
    1. The application contained false or misleading information 
concerning a material fact;
    2. Any of the parties listed on the application is subsequently 
indicted for, convicted of, or has committed acts which would 
constitute any felony or misdemeanor under United States Federal or 
State law. In the absence of an indictment, conviction, or other legal 
process, Customs has probable cause to believe the proscribed acts 
occurred;
    3. An entry filer allows an unauthorized person or entity to use 
his BRASS processing privileges;
    4. An entry filer refuses or otherwise fails to follow any proper 
order of a Customs officer or any Customs order, rule, or regulation;
    5. Reasonable grounds exist to believe that Federal rules and 
regulations pertaining to public health or safety, Customs, or other 
inspectional activities have not been followed;
    6. Evidence of any subsequent dishonest conduct by any of the 
parties listed on the application; or
    7. Continuation of the entry filer's participation in the BRASS 
Program would endanger the revenue or security of the Customs area.
    Under the heading ``Proposed revocation'', paragraph (b) will 
provide when the appropriate BRASS Processing Center or port director 
may propose to revoke a participant's BRASS privileges. These reasons 
will include:
    1. The entry filer fails to adhere to the conditions or 
restrictions imposed by the BRASS Program; or
    2. The entry filer does not maintain the minimal number of 
qualifying import transactions for a period of one year.
    Under the heading ``Notice of adverse action'', paragraph (c) will 
explain Customs notification procedure when a decision is made to 
revoke an entry filer's participation in the BRASS Program. The 
appropriate BRASS Processing Center will notify the participant of the 
decision in writing. The notice will indicate whether the action is 
effective immediately or is proposed and will include the appropriate 
directions and information the nature of the decision requires.
    Where the revocation of participation is to be effective 
immediately, the notice issued will be a notice of immediate 
revocation. The notice of immediate revocation will direct the entry 
filer to cease using his C-4 identifier on import transactions, state 
the reason(s) for the revocation decision, and inform the entry filer 
of the administrative appeal procedures that he may pursue under 
proposed Sec. 142.46.
    Where the revocation of participation is proposed, the notice 
issued will be a notice of proposed revocation. The notice of proposed 
revocation will inform the entry filer that he may continue to use his 
C-4 identifier on import transactions until such time as a notice of 
revocation is issued by the BRASS Processing Center, state the 
reason(s) for the proposed revocation, and inform the entry filer that 
he may file a response with the BRASS Processing Center that addresses 
the grounds for the action proposed within 30 calendar days of the date 
of issuance of the notice of proposed revocation. The entry filer may 
respond by accepting responsibility, explaining extenuating 
circumstances, and/or providing rebuttal evidence.
    If the entry filer does not respond to the preliminary notice, the 
BRASS Processing Center will issue a notice of revocation 60 calendar 
days after the date the notice of proposed revocation was issued. The 
notice of revocation will direct the entry filer to cease using his C-4 
identifier on import transactions, state the reason(s) for the 
revocation decision, and inform the entry filer of the administrative 
appeal procedures that he may pursue under proposed Sec. 142.46.
    If the entry filer files a timely response, the BRASS Processing 
Center

[[Page 4934]]

will issue a final determination regarding the entry filer's 
participation in the BRASS Program within 30 calendar days of the date 
the entry filer's response is received by the BRASS Processing Center. 
If this final determination is adverse, then the notice of revocation 
will direct the entry filer to cease using his C-4 identifier on import 
transactions, state the reason(s) for the revocation decision, and 
inform the entry filer of the administrative appeal procedures that he 
may pursue under proposed Sec. 142.46.

Section 142.46--Appeals Regarding Decisions Concerning BRASS 
Participation

    Under the heading ``Appeals regarding decisions concerning BRASS 
participation'', Sec. 142.46 will explain the new administrative appeal 
procedures that will be provided to BRASS Program participants who 
receive a notice of revocation and to BRASS Program applicants who 
receive a notice of nonselection for participation in the BRASS 
Program. Two levels of administrative review are established. Appeals 
must be filed within 30 calendar days of the date of issuance of the 
notice of adverse action (nonselection or revocation). Appeals must be 
filed in duplicate and must set forth the appellant's responses to the 
grounds specified in the respective notice issued.
    Paragraph (a) will explain the procedure an appellant must follow 
to file the first level of appeal with the Director of Field Operations 
at the Management Center which oversees the BRASS Processing Center 
that issued the notice of adverse action. Within 60 days of receipt of 
the appeal, the Director of Field Operations, or his designee, will 
make a determination regarding the appeal and notify the appellant of 
the decision in writing. If the determination is adverse to the 
appellant, the notice of appeal decision will state the reason(s) for 
the appeal decision and inform the appellant that within 30 calendar 
days of the date of issuance of the appeal decision he may 
administratively appeal the decision to the final level of appeal.
    Paragraph (b) will explain the procedure an appellant must follow 
to file the final level of appeal with the Assistant Commissioner, 
Office of Field Operations, at Customs Headquarters. Within 60 days of 
receipt of the appeal, the Assistant Commissioner, or his designee, 
will make a determination regarding the appeal and notify the appellant 
of the decision in writing. If the determination is adverse to the 
appellant, the notice of appeal decision will state the reason(s) for 
the appeal decision.

Comments

    Before adopting these proposed regulations as a final rule, 
consideration will be given to any written comments timely submitted to 
Customs, including comments on the clarity of this proposed rule and 
how it may be made easier to understand. Comments submitted will be 
available for public inspection in accordance with the Freedom of 
Information Act (5 U.S.C. 552), Sec. 1.4 of the Treasury Department 
Regulations (31 CFR 1.4), and Sec. 103.11(b) of the Customs Regulations 
(19 CFR 103.11(b)), on regular business days between the hours of 9 
a.m. and 4:30 p.m. at the Regulations Branch, Office of Regulations and 
Rulings, U.S. Customs Service, 1300 Pennsylvania Avenue, NW., Suite 
3000, Washington, DC.

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, if adopted, the proposed amendments 
will not have a significant economic impact on a substantial number of 
small entities, because the proposed amendments concern a voluntary 
program that confers a benefit on those filers of imported merchandise 
that meet the eligibility requirements for BRASS processing privileges. 
Accordingly, the proposed amendments are not subject to the regulatory 
analysis or other requirements of 5 U.S.C. 603 and 604. Further, these 
amendments do not meet the criteria for a ``significant regulatory 
action'' as specified in E.O. 12866.

Paperwork Reduction Act

    The collection of information in the current regulations has 
already been approved by the Office of Management and Budget (OMB) in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
and assigned OMB control number 1515-0181 (Line Release application). 
This notice of proposed rulemaking does not involve any material change 
to the existing approved information collection.
    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.
    Part 178 of the Customs Regulations (19 CFR part 178), which lists 
the information collections contained in the regulations and control 
numbers assigned by OMB, would be amended accordingly if this proposal 
is adopted.

List of Subjects

19 CFR Part 24

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

19 CFR Part 123

    Administrative practice and procedure, Aircraft, Canada, Common 
carriers, Customs duties and inspection, Entry of merchandise, Freight, 
Imports, Mexico, Motor carriers, Railroads, Reporting and recordkeeping 
requirements, Vehicles, Vessels.

19 CFR Part 132

    Agriculture and agricultural products, Customs duties and 
inspection, Quotas, Reporting and recordkeeping requirements.

19 CFR Part 142

    Administrative practice and procedure, Common carriers, Customs 
duties and inspection, Computer technology, Entry of merchandise, 
Imports, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    For the reasons set forth above, it is proposed to amend parts 24, 
123, 132, and subpart D of part 142 of the Customs Regulations (19 CFR 
parts 24, 123, 132, and subpart D of part 142), as set forth below:

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

    1. The general authority citation for part 24 and the specific 
authority for Sec. 24.23 continue to read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General 
Note 22, Harmonized Tariff Schedule of the United States), 1505, 
1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 9701.
* * * * *
    Section 24.23 also issued under 19 U.S.C. 3332;

* * * * *
    2. Section 24.23 is amended at paragraph (a)(4)(iii) by removing 
the words ``any Line Release filed at a part'' and adding, in their 
place, the words ``import transaction under Border Release Advanced 
Screening and Selectivity (BRASS) at a port''.

PART 123--CUSTOMS RELATIONS WITH CANADA AND MEXICO

    1. The general authority citation for part 123 and the specific 
authority for Sec. 123.71 continue to read as follows:


[[Page 4935]]


    Authority: 19 U.S.C. 66, 1202 (General Note 22, Harmonized 
Tariff Schedule of the United States (HTSUS)), 1431, 1433, 1436, 
1448, 1624.
* * * * *
    Sections 123.71-123.76 also issued under 19 U.S.C. 1618;
* * * * *

    2. In Sec. 123.71:
    a. The seventh sentence is amended by removing the words ``Line 
Release'' and ``Line Release entry'' and adding, in their place, 
respectively, the words ``Border Release Advanced Screening and 
Selectivity (BRASS) processing and release'' and ``BRASS processing and 
release''; and
    b. The eighth sentence is amended by removing the words ``Line 
Release'' and adding, in their place, the words ``BRASS processing and 
release''.

PART 132--QUOTAS

    1. The general authority citation for part 132 and the specific 
authority citation for Sec. 132.15 continue to read as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 22, Harmonized 
Tariff Schedule of the United States (HTSUS)), 1623, 1624.
    Sections 132.15 through 132.17 also issued under 19 U.S.C. 1202 
(additional U.S. Note 3 to Chapter 2, HTSUS; subchapter III of 
Chapter 99, HTSUS; and additional U.S. Note 8 to Chapter 17, HTSUS, 
respectively), 1484, 1508.

    2. In Sec. 132.15, paragraph (b)(2) is amended by removing the 
parenthetical words ``(see Sec. 142.42(d) of this chapter)'' before the 
semi-colon.

PART 142--ENTRY PROCESS

    1. The authority citation for part 142 continues to read as 
follows:

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

    2. Subpart D of part 142 is revised to read as follows:
Subpart D--Border Release Advanced Screening and Selectivity (BRASS) 
Merchandise Processing
142.41  Description of BRASS program.
142.42  Application for BRASS processing.
142.43  Responsibilities of participant accepted for BRASS 
processing.
142.44  BRASS processing procedures.
142.45  Revocation of BRASS participation.
142.46  Appeals regarding decisions concerning BRASS participation.

Subpart D--Border Release Advanced Screening and Selectivity 
(BRASS) merchandise processing.


Sec. 142.41  Description of BRASS program.

    The Border Release Advanced Screening and Selectivity (BRASS) 
Program is an automated and electronic system designed, through the use 
of personal computers and bar-code technology, to expedite the 
processing and release of certain high-volume, repetitively-shipped 
merchandise that is imported at designated locations. BRASS 
transactions may be designated for either release under entry summary 
or release for immediate delivery. The BRASS Program encompasses 
merchandise shipments arriving by motor carrier as well as by rail. 
Participation in the BRASS Program is voluntary and participants must 
comply with the program's requirements, which include the pre-filing of 
certain import information for qualifying shipments of merchandise and 
special identification of those shipments with an assigned bar code. 
While Customs may inspect any shipment of merchandise approved for 
BRASS processing, in general, BRASS shipments enjoy expedited 
processing and release through all designated and approved BRASS ports 
of entry without further Customs processing. At certain high-risk 
locations along the land borders of the United States (the locations 
are published in the Federal Register), the use of BRASS processing and 
release for particular shipments of merchandise may be denied by 
Customs unless the imported merchandise is transported by carriers that 
participate in the Land Border Carrier Initiative Program (see, subpart 
H of part 123 of this chapter). Applicants should be aware that failure 
to follow BRASS Program requirements can result in revocation of their 
participation in the program. Further, failure to follow program 
requirements may result in participants being liable for certain civil 
and criminal penalties. Further information concerning the BRASS 
Program is contained in the BRASS Handbook, available from U.S. Customs 
Service Headquarters, BRASS Processing Centers, and at designated ports 
of entry approved to process BRASS shipments of merchandise.


Sec. 142.42  Application for BRASS processing.

    (a) Eligible applicants. Only importers that file their own entries 
and brokers may apply to participate in the BRASS Program. Applicants 
must be of good character.
    (b) Merchandise criteria.--(1) Non-qualifying merchandise. 
Merchandise qualifying for BRASS processing privileges cannot be:
    (i) Prohibited or restricted;
    (ii) Subject to absolute quota;
    (iii) Denied approval for importation by another Federal government 
agency required to approve the merchandise; or
    (iv) Subsequently determined to be unsuitable for expedited 
processing under BRASS for reasons pertaining to trade policy.
    (2) Volume requirements. The level of import transactions, measured 
in quantitative terms regarding the number of high-volume, 
repetitively-shipped merchandise entries for the previous year at the 
port(s) of entry where the shipments will be entered for BRASS 
processing, will be considered by Customs in determining, in part, 
whether BRASS processing privileges should be granted to the applicant 
at the requested location. The level of import transactions necessary 
to qualify for BRASS processing is established by the centralized 
processing center where the application will be submitted and is 
determined differently based on whether the requested port(s) of entry 
is along the northern or southern border.
    (i) Northern border. On the northern border, the number of import 
transactions with the same shipper or manufacturer and the same 
importer at the port(s) of entry where the shipments will be presented 
for BRASS processing is considered.
    (ii) Southern border. On the southern border, the number of import 
transactions with the same shipper or manufacturer, importer, and 
commodity at the port(s) of entry where the shipments will be presented 
for BRASS processing is considered.
    (3) Compliance rate. The examination compliance rate for the 
qualifying importations must meet Customs requirements, as established 
by the centralized processing center where the application will be 
submitted.
    (c) Application procedure. To participate in the BRASS Program, a 
broker or an importer who files his own entries must submit an 
application for each commodity to be processed, accompanied by a 
representative sample of an actual commercial invoice for the 
product(s) sought to be processed under BRASS, to the appropriate BRASS 
Processing Center. Participants already in the former Line Release 
Program do not need to reapply for participation in the BRASS Program, 
provided they conduct their business in a manner consistent with the 
administrative portions of this subpart. An application is filed on 
Customs Form (CF) 7600 (Application for BRASS). On the application, the 
applicant must provide, among other information, identification 
information on any other party, such as the shipper or manufacturer of 
the qualifying merchandise, that may be involved with the proposed 
BRASS transactions. Each of the parties identified will be evaluated to 
determine whether they are of good character. (Copies of the CF 7600 
are

[[Page 4936]]

available at any Customs BRASS port of entry. Additional information to 
be submitted on the CF 7600 is explained in the BRASS Handbook.)
    (d) Notice of action on application. Following an evaluation of the 
information submitted on the CF 7600 and Customs determination as to 
whether the applicant, any other party listed on the application, and 
the merchandise meet the standards set forth in this section, the 
appropriate BRASS Processing Center will notify the applicant in 
writing as to whether the application is approved or denied. (Where an 
application is incomplete or otherwise contains information that cannot 
be verified by the appropriate BRASS Processing Center, it will be 
returned for clarification.) When an application is approved, Customs 
assigns the appropriate number of C-4 identifiers, which are to be used 
for those shipments that will be processed through BRASS. (A C-4 
identifier (Common Commodity Classification Code), is a unique, four-
element bar code assigned by the appropriate BRASS Processing Center 
that identifies the shipper or manufacturer, importer, filer, and 
commodity.) When an application is denied, Customs will issue a notice 
of nonselection to the applicant. The notice of nonselection will state 
the reason(s) for the nonselection and inform the applicant that he may 
administratively appeal the nonselection decision in accordance with 
the procedures set forth in Sec. 142.46.
    (e) Grounds for denial. The BRASS Processing Center may deny an 
application for any of the following reasons:
    (1) A reputation imputing to the applicant criminal, dishonest, or 
unethical conduct, or a record of that conduct;
    (2) Failure of the merchandise to meet the standards set forth in 
this section;
    (3) Evidence that the application contains false or misleading 
information concerning a material fact; or
    (4) A determination is made that participation in the BRASS Program 
would endanger the revenue or security of the Customs area.


Sec. 142.43  Responsibilities of participant accepted for BRASS 
processing.

    When approved to participate in the BRASS Program, the applicant is 
denominated an ``entry filer'' for BRASS purposes. Entry filers agree 
to the following responsibilities:
    (a) BRASS entry number range. Entry filers must provide the local 
port director, in writing, with a range of numbers for BRASS processing 
use, so that Customs can assign a BRASS entry number automatically to 
each BRASS transaction. A separate range must be provided for each 
BRASS site and mode of transportation. Entry filers must not assign 
these numbers to other import transactions. As the previously supplied 
range nears exhaustion, the entry filer must provide the local port 
director with new ranges of BRASS entry numbers;
    (b) C-4 identifier. Entry filers are responsible for the proper 
preparation, distribution, and use of C-4 identifier(s). If multiple 
commodities are to be processed at a designated location, then the C-4 
identifier assigned for each commodity must be used. When multiple 
commodity processing is desired, the entry filer should consult with 
the local port director as to the number of commodities allowed to be 
processed per shipment at the port;
    (c) Notification of changes in information set forth on 
application. Entry filers must notify Customs immediately of any 
changes in information provided on the originally-approved application 
by submitting a corrected BRASS application, with a copy of the 
originally-approved application. This includes any changes regarding 
the shipper or manufacturer or the commodity; and
    (d) Changing election of release procedure. Entry filers who wish 
to change their election of release procedure for BRASS shipments (from 
entry or immediate delivery to the other) from that approved in their 
initial BRASS application must request such change in writing. If the 
release procedure is to be changed permanently, the request must 
include the date the change is to be effective and must be submitted to 
the BRASS Processing Center that issued the C-4 identifier. If the 
release procedure is to be changed temporarily, the request must 
include the date the releases are to return to the release procedure 
originally approved. (Further information concerning requests for a 
change in BRASS processing can be found in the BRASS Handbook.)


Sec. 142.44  BRASS processing procedures.

    (a) BRASS processing procedures for motor carriers.--(1) Expedited 
processing and release. A shipment of merchandise arriving by motor 
carrier is expeditiously processed and released under the BRASS Program 
when:
    (i) Merchandise specially designated. The merchandise presented is 
specially identified with the proper C-4 code(s) and the merchandise is 
presented at a designated port of entry approved to process BRASS 
shipments;
    (ii) Documentation required to be presented. The documentation 
submitted includes an original manifest (and as many copies as the 
particular BRASS site requires) and an original invoice that contain 
the C-4 identifier (as described in Sec. 142.42(d));
    (iii) Customs processing. Customs assigns a BRASS processing number 
to the transaction from the range of numbers previously provided by the 
entry filer for BRASS processing; and
    (iv) Customs release. Following the BRASS processing of the 
merchandise, the release information is stamped on the original 
manifest and the invoice documents. The motor carrier is then provided 
with a copy of the manifest, entry filers are provided with the invoice 
stamped with the BRASS entry number assigned and the appropriate 
C-4 identifier information, and Customs retains the original, stamped 
manifest and may retain any other documents submitted.
    (2) Compliance examination. When a shipment of merchandise 
presented for BRASS processing is ordered by Customs to undergo a 
compliance examination, the entry filer must then either make an entry 
of the merchandise, by preparing either a Customs Form (CF) 3461 or CF 
3461 Alternate, or apply for a special permit for immediate delivery of 
the merchandise, by preparing a CF 3461 or CF 3461 Alternate with the 
required supporting documentation, that utilizes the BRASS processing 
number assigned by Customs. Customs will not accept entry or immediate 
delivery documentation that does not contain the Customs-assigned BRASS 
entry number.
    (b) BRASS processing procedures for rail carriers.--(1) Expedited 
processing and release. A shipment of merchandise arriving by rail 
carrier is expeditiously processed and released under the BRASS Program 
when:
    (i) Merchandise specially designated. The merchandise presented is 
specially identified with the proper C-4 code(s) and the merchandise is 
presented at a designated port of entry approved to process BRASS 
shipments. The BRASS rail program is limited to rail AMS carriers;
    (i) Data required to be presented. The C-4 identifier (as described 
in Sec. 142.42(d)) must be submitted electronically with the manifest; 
and
    (ii) Customs processing. Customs assigns a BRASS entry number to 
the transaction from the range of numbers previously provided by the 
entry filer for BRASS processing; and

[[Page 4937]]

    (iv) Customs release. Following the BRASS processing of the 
merchandise, the release information is electronically sent to the 
entry filer and to the carrier.
    (2) Compliance examination. When a shipment of merchandise 
presented for BRASS processing is ordered by Customs to undergo a 
compliance examination, the entry filer must then either make an entry 
of the merchandise, by preparing either a Customs Form (CF) 3461 or 
3461 Alternate, or apply for a special permit for immediate delivery of 
the merchandise, by preparing a CF 3461 or CF 3461 Alternate with the 
required supporting 22 documentation, that utilizes the BRASS 
processing number assigned by Customs. Customs will not accept entry or 
immediate delivery documentation which does not contain the Customs-
assigned BRASS entry number.


Sec. 142.45  Revocation of BRASS participation.

    (a) Immediate revocation. The appropriate BRASS Processing Center 
or port director may immediately revoke a participant's BRASS 
privileges for any of the following reasons:
    (1) The application contained false or misleading information 
concerning a material fact;
    (2) Any of the parties listed on the application is subsequently 
indicted for, convicted of, or has committed acts which would 
constitute any felony or misdemeanor under United States Federal or 
State law. In the absence of an indictment, conviction, or other legal 
process, Customs must have probable cause to believe the proscribed 
acts occurred;
    (3) An entry filer allows an unauthorized person or entity to use 
his BRASS processing privileges;
    (4) An entry filer refuses or otherwise fails to follow any proper 
order of a Customs officer or any Customs order, rule, or regulation;
    (5) Reasonable grounds exist to believe that Federal rules and 
regulations pertaining to public health or safety, Customs, or other 
inspectional activities have not been followed;
    (6) Evidence of any subsequent dishonest conduct by any of the 
parties listed on the application; or
    (7) Continuation in the BRASS Program would endanger the revenue or 
security of the Customs area.
    (b) Proposed revocation. The appropriate BRASS Processing Center or 
port director may propose to revoke a participant's BRASS privileges 
for any of the following reasons:
    (1) The entry filer fails to adhere to the conditions or 
restrictions imposed by the BRASS Program; or
    (2) The entry filer does not maintain the minimal number of 
qualifying import transactions for a period of one year.
    (c) Notice of adverse action. When a decision to revoke an entry 
filer's participation in the BRASS Program is made, the appropriate 
BRASS Processing Center will notify the participant in writing. The 
notice will indicate whether the action is effective immediately or is 
proposed and will include the appropriate directions and information 
the nature of the decision requires:
    (1) Immediate revocation. Where the revocation of participation is 
effective immediately, the notice issued will be a notice of immediate 
revocation. The notice of immediate revocation will direct the entry 
filer to cease using his C-4 identifier on import transactions, state 
the reason(s) for the revocation decision, and inform the entry filer 
that he may administratively appeal the revocation decision in 
accordance with the procedures set forth in Sec. 142.46.
    (2) Proposed revocation.--(i) Preliminary notice. Where the 
revocation of participation is proposed, the notice issued will be a 
notice of proposed revocation. The notice of proposed revocation will 
inform the entry filer that he may continue to use his C-4 identifier 
on import transactions until a notice of revocation is issued, state 
the reason(s) for the proposed revocation, and inform the participant 
that he may file a response with the BRASS Processing Center that 
addresses the grounds for the action proposed within 30 calendar days 
of the date of issuance of the notice of proposed revocation. The entry 
filer may respond by accepting responsibility, explaining extenuating 
circumstances, and/or providing rebuttal evidence.
    (ii) Final notice.--(A) Based on nonresponse. If the entry filer 
does not respond to the notice of proposed revocation, the BRASS 
Processing Center will issue a notice of revocation 60 calendar days 
after the date of issuance of the notice of proposed revocation. The 
notice of revocation will direct the entry filer to cease using his C-4 
identifier on import transactions, state the reason(s) for the 
revocation decision, and inform the entry filer that he may 
administratively appeal the revocation decision in accordance with the 
procedures set forth in Sec. 142.46.
    (B) Based on response. If the entry filer files a timely response, 
the BRASS Processing Center will issue a final determination regarding 
the entry filer's participation in the BRASS Program within 30 calendar 
days of the date the entry filer's response is received by the BRASS 
Processing Center. If this final determination is adverse, then the 
notice of revocation will direct the entry filer to cease using his C-4 
identifier on import transactions, state the reason(s) for the 
revocation decision, and inform the entry filer that he may 
administratively appeal the revocation decision in accordance with the 
procedures set forth in Sec. 142.46.


Sec. 142.46  Appeals regarding decisions concerning BRASS 
participation.

    A BRASS Program participant who receives a notice of revocation or 
a BRASS Program applicant who receives a notice of nonselection for 
participation in the BRASS Program may administratively appeal Customs 
decision by filing an appeal in writing within 30 calendar days of the 
date of issuance of the notice of adverse action (nonselection or 
revocation). Appeals must be filed in duplicate and must set forth the 
appellant's responses to the grounds specified in the respective notice 
issued.
    (a) The Director of Field Operations. The first appeal is to the 
Director of Field Operations at the Customs Management Center that 
oversees the BRASS Processing Center that issued the notice of adverse 
action (nonselection or revocation). Within 60 days of receipt of the 
appeal, the Director of Field Operations, or his designee, will make a 
determination regarding the appeal and notify the appellant of the 
decision in writing. If the determination is adverse to the appellant, 
the notice of appeal decision will state the reason(s) for the adverse 
determination and inform the appellant that within 30 calendar days of 
the date of issuance of the appeal decision he may administratively 
appeal the decision to the final level of appeal: The Assistant 
Commissioner, Office of Field Operations.
    (b) The Assistant Commissioner. The final appeal is to the 
Assistant Commissioner, Office of Field Operations, U.S. Customs 
Service, 1300 Pennsylvania Avenue, Washington, DC 20229. Within 60 days 
of receipt of the appeal, the Assistant Commissioner, or his designee, 
will make a determination regarding the appeal and notify the appellant 
of the decision in writing. If the determination is adverse to the 
appellant, the notice of appeal decision

[[Page 4938]]

will state the reason(s) for the adverse determination.

Charles W. Winwood,
Acting Commissioner of Customs.
    Approved: January 29, 2002.
Timothy E. Skud,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 02-2466 Filed 1-31-02; 8:45 am]
BILLING CODE 4820-02-P