[Federal Register Volume 67, Number 84 (Wednesday, May 1, 2002)]
[Notices]
[Pages 21800-21801]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10777]


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DEPARTMENT OF THE TREASURY

Customs Service


First Phase of Automated Commercial Environment (ACE): 
Announcement of a National Customs Automation Program Test for the ACE 
Account Portal

AGENCY: Customs Service, Treasury.

ACTION: General notice.

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SUMMARY: This document announces Customs plan to conduct a National 
Customs Automation Program test of the first phase of the Automated 
Commercial Environment. This test will allow importers and authorized 
parties to access their Customs data via a web-based Account Portal. 
This test is the first step toward the full electronic processing of 
commercial importations in the Automated Commercial Environment with a 
focus on defining and establishing the importer's account structure. 
Customs plans to initially accept approximately forty importer accounts 
for participation in this test, and may expand the universe of 
participants during the test. This notice provides a description of the 
test, outlines the development and evaluation methodology to be used, 
sets forth the eligibility requirements for participation, invites 
public comment on any aspect of the planned test, and opens the 
application period for participation.

EFFECTIVE DATES: The test will commence no earlier than October 28, 
2002. The test will run for approximately two years and may be extended 
or modified. Comments concerning this notice and all aspects of the 
announced test may be submitted at any time. Applications may also be 
submitted at any time; however, in order to be eligible as one of the 
initial participants, applications must be received by June 1, 2002.

ADDRESSES: Written comments regarding this notice may be submitted to 
Ms. Hedwig Lock at U.S. Customs Service, 2850 Eisenhower Ave.--First 
Floor, Alexandria, Virginia 22314; e:mail address: 
[email protected]; FAX number: (703) 329-5235. Applications 
to participate will only be accepted via e:mail sent to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Ms. Hedwig Lock, U.S. Customs Service, 
Office of Field Operations, Trade Programs, Commercial Compliance, 
Account Management; Tel. (703) 317-3657; e:mail address: 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Customs Modernization Program has been created to improve 
efficiency, increase effectiveness, and reduce costs for Customs and 
all of its communities of interest. The ability to meet these 
objectives depends heavily on successfully modernizing Customs business 
functions and the information technology that supports those functions.
    The initial thrust of the Customs Modernization Program focuses on 
Trade Compliance and the development of the Automated Commercial 
Environment (ACE) through the National Customs Automation Program 
(NCAP). ACE is not only a replacement system for the Automated 
Commercial System (ACS); it is an effort to streamline business 
processes to facilitate the growth in trade and foster participation in 
global commerce, while ensuring compliance with U.S. laws and 
regulations.
    The ACE development strategy consists of partitioning ACE into four 
major increments. Each increment, while individually achieving critical 
business needs, also lays the foundation for subsequent increments. 
This test will be part of the first phase of ACE.
    This test is the first step towards changing the way that the world 
interacts with U.S. Customs. This test will allow account holders to 
view integrated data for their account information from multiple system 
sources. It will enable Customs and account holders to interact via 
newly created account portals. This test accommodates both Customs and 
the trade. The Account Portal has the ability to access, manage and 
disseminate information in an efficient and secure manner. As an 
example, when a trade participant enters ACE, the Account Portal will 
present data specific to that participant's account transactions.
    Participants in this test will eventually have the opportunity to 
use the account management functions such as account access to their 
profile and transactional data via the web portal. Eventually the 
account owner will also have the option to delegate portal access. In 
the initial phase of the test program participants will only have 
access to static data and basic account profile information necessary 
to establish an account. In the later stages of the test participants 
will have access to more extensive operational transaction data through 
the web portal.
    This test will be delivered in a phased approach, with primary 
deployment scheduled for no earlier than October 28, 2002. The timeline 
for ACE is subject to change based on funding and technical 
requirements. Future phases of the Automated Commercial Environment 
(ACE) will be developed and deployed throughout the ACE development 
period, for use by the trade and Customs personnel selected to test the 
Account Portal.
    Customs plans to select approximately forty importer accounts from 
the list of qualified applicants for the initial deployment of this 
test. A primary benefit for the initial participants will be an early 
opportunity to provide direct input into the initial design of the 
Account Portal. Additional participants may be selected throughout the 
duration of this test.

Eligibility Criteria

    To be eligible for participation in this test, an importer must:
    1. Participate in the Customs Trade Partnership Against Terrorism 
(C-TPAT). C-TPAT is a joint government-business initiative to build 
cooperative relationships that strengthen overall supply chain and 
border security. For further information, please refer to the Customs 
website at http://www.customs.gov/enforcem; and
    2. Have the ability to connect to the Internet.
    Customs expects to select a broad range of importers representing 
various industries. Applications will be considered from all 
volunteers; however, priority consideration for selection of the 
initial participants will be given to:
    1. Importers that use carriers that participate in the Customs 
Industry Partnership Programs (IPP). IPP consists of several 
partnership programs that aim to engage the trade community in a 
cooperative relationship with Customs in the war on drugs and 
terrorism, such as the Carrier Initiative Program and the Business 
Anti-Smuggling Coalition. For further information on Industry 
Partnership Programs, please refer to the Customs website at http://www.customs.gov/enforcem; and

[[Page 21801]]

    2. Importers who have participated in the Account Management 
Program for at least one year and who are managed by a full-time 
Account Manager.

Application Process

    Each application for participation in this test must include the 
following information:
    1. Importer name,
    2. Unique importer number (e.g., SSN, EIN, Customs Assigned 
Importer #, DUNS #),
    3. Statement certifying participation in C-TPAT, and
    4. Statement certifying the capability to connect to the Internet.
    In order to be eligible as one of the initial participants, 
completed applications must be received by June 1, 2002. Applicants 
will be notified by Customs of the status of their application, whether 
it is held pending further expansion or accepted for initial 
participation. An applicant who does not meet the eligibility criteria 
or who provides an incomplete application will be notified and given 
the opportunity to resubmit their application.
    Upon selection into the test, Customs may request additional 
information for the account profile. Participants incur a continuing 
obligation to provide Customs with any updates or changes to the 
information they submit. All data submitted and entered into the 
Account Portal is subject to the Trade Secrets Act (18 U.S.C. 1905) and 
is considered confidential and subject to the appropriate levels of 
governmental control and protection. While the test is scheduled to 
begin October 28, 2002, participation in this test may be delayed due 
to funding and technological constraints. Future phases of ACE may also 
be tested; however, the eligibility criteria may differ from the 
criteria listed in this notice. Acceptance into this test does not 
guarantee eligibility for, or acceptance into future technical tests.
    Each participant will designate one person as the account owner for 
the company's portal account information. The account owner will be 
responsible for safeguarding the company's portal account information, 
controlling all disclosures of that information to authorized persons, 
authorizing user access to the Account Portal and ensuring that access 
to the company's portal account information by authorized persons is 
strictly controlled.

Authorization for the Test

    Pursuant to Customs Modernization provisions in the North American 
Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 
2057, 2170 (December 8, 1993), Customs amended its regulations (19 CFR 
chapter I), in part, to enable the Commissioner of Customs to conduct 
limited test programs or procedures designed to evaluate planned 
components of the National Customs Automation Program. Section 101.9(b) 
of the Customs Regulations (19 CFR 101.9(b)) provides for the testing 
of NCAP programs or procedures. See T.D. 95-21. This test is 
established pursuant to that regulatory provision.

Misconduct Under the Test

    If a test participant fails to follow the terms and conditions of 
this notice, fails to exercise reasonable care in the execution of 
participant obligations, fails to abide by applicable laws and 
regulations, misuses the Account Portal, engages in any unauthorized 
disclosure or access to the Account Portal, or engages in any activity 
which interferes with the successful evaluation of the new technology, 
the participant may be subject to civil and criminal penalties, 
administrative sanctions, and/or suspension from this test. Any 
decision proposing suspension of a participant may be appealed in 
writing to Ms. Hedwig Lock within 15 days of the decision date. Such 
proposed suspension will apprise the participant of the facts or 
conduct warranting suspension. Should the participant appeal the notice 
of proposed suspension, the participant should address the facts or 
conduct charges contained in the notice and state how compliance will 
be achieved. However, in the case of willfulness or where public health 
interests or safety are concerned, the suspension may be effective 
immediately.

Test Evaluation Criteria

    To ensure adequate feedback, participants are required to 
participate in an evaluation of this test. Customs also invites all 
interested parties to comment on the design, conduct and implementation 
of the test at any time. The final results will be published in the 
Federal Register and the Customs Bulletin as required by Sec. 101.9(b) 
of the Customs Regulations.
    The following evaluation methods and criteria have been suggested:
    1. Baseline measurements to be established through data analysis.
    2. Questionnaires from both trade participants and Customs 
addressing such issues as:
     Workload impact (workload shifts/volume, cycle times, 
etc.);
     Cost savings (staff, interest, reduction in mailing costs, 
etc.);
     Policy and procedure accommodation;
     Trade compliance impact;
     Problem resolution;
     System efficiency;
     Operational efficiency;
     Other issues identified by the participant group.

    Dated: April 26, 2002.
Bonni G. Tischler,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 02-10777 Filed 4-30-02; 8:45 am]
BILLING CODE 4820-02-P