[Federal Register Volume 68, Number 6 (Thursday, January 9, 2003)]
[Proposed Rules]
[Pages 1173-1175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-363]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 103

RIN 1515-AD18


Confidentiality Protection for Vessel Cargo Manifest Information

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations to 
provide that, in addition to the importer or consignee, parties that 
electronically transmit vessel cargo manifest information directly to 
Customs 24 or more hours before cargo is laden aboard the vessel at the 
foreign port may request confidentiality with respect to the name and 
address of the importer or consignee, related marks and identification 
numbers that reveal their names and addresses, and the names and 
addresses of their shippers. These parties must submit to Customs a 
letter of authorization signed by the importer or consignee with the 
request for confidentiality. Current regulations allow only the 
importer or consignee, or an authorized employee, attorney, or official 
of the importer or consignee, to make such requests.

DATES: Comments must be received on or before February 10, 2003.

ADDRESSES: Written comments (preferably in triplicate), regarding both 
the substantive aspects of the proposed rule and how it may be made 
easier to understand, may be submitted to the U.S. Customs Service, 
Office of Regulations and Rulings, Attention: Regulations Branch, 1300 
Pennsylvania Avenue, NW., Washington, DC 20229. Submitted comments may 
be inspected at the U.S. Customs Service, 799 9th Street, NW., 
Washington, DC.

FOR FURTHER INFORMATION CONTACT: Larry Burton, Chief, Entry and 
Carriers Branch, Office of Regulations and Rulings, at (202) 572-8724.

SUPPLEMENTARY INFORMATION:

Background

    Under 19 U.S.C. 1431, Customs must make available for public 
disclosure certain information contained in vessel manifests except 
when the importer or consignee has requested confidential treatment.
    On October 31, 2002, Customs published a final rule document in the 
Federal Register (67 FR 66318) that amended the Customs Regulations 
pertaining to the inward foreign manifest to provide that Customs must 
receive from the carrier the vessel's Cargo Declaration (Customs Form 
(CF) 1302), one document among a few that comprise the manifest, or a 
Customs-approved electronic equivalent of the cargo declaration, at 
least 24 hours before the cargo is laden aboard the vessel at the 
foreign port, and to require that Vessel Automated Manifest System 
(AMS) participants provide the cargo declaration electronically (see 19 
CFR 4.7(b)(2)). The amended regulation also provides that a properly 
licensed or registered non-vessel operating common carrier (NVOCC) that 
is in possession of an International Carrier Bond containing the 
provisions of Sec.  113.64 of the regulations (19 CFR 113.64) may 
electronically transmit required manifest information directly to 
Customs through the AMS 24 or more hours before cargo it delivers to 
the vessel carrier is laden aboard the vessel at the foreign port. If 
the NVOCC chooses not to transmit the required manifest information to 
Customs, as described above, the amended regulation provides that the 
NVOCC must instead fully disclose and present the required information 
to the vessel carrier to allow the vessel carrier to present the 
information to Customs via the AMS system. (See 19 CFR 4.7(b)(3).)
    The final rule amended other sections within Part 4 of the 
regulations and made amendments to Sec.  113.64 having to do with bond 
obligations of NVOCCs that elect to transmit manifest information in 
accordance with Sec.  4.7(b). Discussion of these particular amendments 
is not necessary in this document. (See the final rule, cited 
previously, for a more complete presentation of these amendments.)
    In response to the notice of proposed rulemaking (NPRM) that 
preceded publication of the final rule discussed above, published in 
the Federal Register (67 FR 51519) on August 8, 2002, the NVOCC 
community submitted several comments expressing concern that certain 
information and data that a NVOCC would supply under the new procedures 
of Sec.  4.7(b) would be subject to release for publication. Under 
Sec.  103.31 of the regulations (19 CFR 103.31), vessel manifest 
information is made available to newspapers, commercial magazines, 
trade journals, and similar publications. The NVOCC group contended 
that such release would reveal confidential business information that 
could result in harm to the NVOCC community, and recommended that 
Customs amend the regulations to permit NVOCCs to request 
confidentiality on behalf of importers and consignees under Sec.  
103.31. Because the NVOCC comments concerned an issue that was not the 
focus of the prior rulemaking, Customs responded to these comments in 
the final rule document by indicating that it would soon publish 
another NPRM proposing to amend the regulations to address the issue 
within the limitations of existing law. The purpose of this NPRM is to 
seek further input from the trade community on the specific question 
whether the Customs regulations should be amended.
    Under 19 U.S.C. 1431(c), only importers and consignees are 
authorized to make such confidentiality requests to

[[Page 1174]]

protect their name and address from disclosure as well as the name and 
address of their shippers. The regulations implementing this Section 
provide that authorized employees, attorneys, or officials of importers 
or consignees may make such requests (19 CFR 103.31(d)). Consistent 
with the view that authorized representatives of the importers or 
consignees may file confidential requests, this document proposes to 
amend Sec.  103.31(d) of the Customs Regulations to allow parties that 
transmit directly to Customs manifest information in accordance with 
Sec. Sec.  4.7(b) and 4.7a to file a biennial certification requesting 
confidentiality on behalf of an importer or consignee when authorized 
to do so by the importer or consignee. This amendment allowing such 
parties, including NVOCCs and vessel carriers, to make confidentiality 
requests will enhance the new procedures set forth in the final rule, 
as these parties will be relieved from any disadvantage that might 
result from publication of certain manifest information.

Comments

    Before adopting this proposal as a final rule, consideration will 
be given to any written comments timely submitted to Customs. Comments 
submitted will be available for public inspection in accordance with 
the Freedom of Information Act (5 U.S.C. 552), Sec.  1.5 of the 
Treasury Department Regulations (31 CFR 1.5), 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, 799 9th 
Street, NW., Washington, DC. To make arrangements to inspect submitted 
comments, call Mr. Joseph Clark at (202) 572-8768.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Regulatory Flexibility Act

    Inasmuch as adoption of the proposed amendment would expand the 
parties who may request confidentiality of business sensitive 
information for the purpose of protecting their competitive standing or 
advantage, and thus would benefit this segment of the importing 
community, it is certified, pursuant to the provisions of the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.), that the proposed 
amendments to the Customs Regulations, if adopted, will not have a 
significant economic impact on a substantial number of small entities. 
Accordingly, the proposed amendments are not subject to the regulatory 
analysis or other requirements of 5 U.S.C. 603 and 604.

Paperwork Reduction Act

    The collection of information contained in Sec.  103.31 has 
previously been approved by the Office of Management and Budget (OMB) 
in accordance with the requirements of the Paperwork Reduction Act of 
1995 (44 U.S.C. 3507) under control number 1515-0124 (Disclosure by 
Customs of information on cargo declarations of inward vessel 
manifests). This notice of proposed rulemaking (NPRM) contains an 
additional collection of information that has been submitted to OMB for 
review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507). An agency may not conduct, 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.
    The additional collection of information in this proposed rule 
document is contained in Sec.  103.31(d)(i). This information is 
required to allow a party transmitting vessel cargo manifest 
information directly to Customs in accordance with the procedures of 
Sec.  4.7(b) of this chapter to submit a confidentiality certification 
on behalf of an importer or consignee. The likely respondents are 
businesses such as non-vessel operating common carriers and vessel 
carriers that must submit to Customs the information required under the 
regulation when choosing to obtain confidentiality for importers and 
consignees.
    The estimated burden to the public resulting from the additional 
collection is as follows:
    Estimated total annual reporting and/or recordkeeping burden: 250 
hours.
    Estimated average annual burden per respondent/recordkeeper: 30 
minutes.
    Estimated number of respondents and/or recordkeepers: 500.
    Estimated annual frequency of responses: 1.
    Comments on the accuracy of this burden estimate and suggestions 
for reducing this burden should be sent to the Office of Management and 
Budget, Attention: Desk Officer of the Department of the Treasury, 
Office of Information and Regulatory Affairs, Washington, DC 20503. A 
copy should also be sent to Customs at the address set forth in the 
Addresses section of this document.

Drafting Information

    The principal author of this document was Bill Conrad, Office of 
Regulations and Rulings, U.S. Customs Service. However, personnel from 
other offices contributed in its development.

List of Subjects in 19 CFR Part 103

    Administrative practice and procedure; Confidential business 
information, Electronic filing, Freedom of Information, Imports, 
Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    For the reasons stated in the preamble, Part 103 of the Customs 
Regulations (19 CFR Part 103) is proposed to be amended as follows:

PART 103--AVAILABILITY OF INFORMATION

    1. The general authority citation for part 103 and the specific 
authority citation for Sec.  103.31 continue to read as follows:

    Authority: 5 U.S.C. 301; 552, 552a; 19 U.S.C. 66, 1624; 31 
U.S.C. 9701.

    Section 103.31 also issued under 19 U.S.C. 1431;
* * * * *
    2. Section 103.31 is proposed to be amended by revising paragraph 
(d)(1)(i) to read as follows:


Sec.  103.31  Information on vessel manifests and summary statistical 
reports.

* * * * *
    (d) Confidential treatment--(1) Inward manifest. * * *
    (i) An importer or consignee, or authorized employee, attorney or 
official of the importer or consignee, must submit a certification (as 
described in paragraph (d)(1)(ii) of this section) to claim 
confidential treatment of the data set forth in paragraph (d)(1) of 
this section. In addition, a party that either electronically directly 
transmits, or uses a service provider to transmit, the Customs Form 
1302 Cargo Declaration to Customs in accordance with the procedures of 
Sec.  4.7(b) of this chapter may submit a certification to claim 
confidential treatment of the data set forth in paragraph (d)(1) of 
this section on behalf of an importer or consignee if the importer or 
consignee designates such party as its attorney-in-fact authorized to 
submit a certification on the importer's or consignee's behalf. The 
party so designated/authorized must provide Customs with a letter of 
authorization signed by the importer or consignee, or its authorized 
employee, attorney or official, to support any

[[Page 1175]]

submission of a certification under this paragraph.
* * * * *

Robert C. Bonner,
Commissioner of Customs.
    Approved: January 3, 2003.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 03-363 Filed 1-8-03; 8:45 am]
BILLING CODE 4820-02-P