[Federal Register Volume 68, Number 21 (Friday, January 31, 2003)]
[Notices]
[Pages 5072-5074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-2280]


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DEPARTMENT OF THE TREASURY

Customs Service


Announcement of a National Customs Automation Program Test To 
Eliminate the Submission of the Paper Master Air Waybill Document

AGENCY: Customs Service, Treasury.

ACTION: General notice.

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SUMMARY: This notice announces Customs plan to conduct a test under the 
National Customs Automation Program (NCAP) under which a participating 
air carrier must electronically transmit, through the Air Automated 
Manifest System, master air waybill data prior to arrival of the 
aircraft in the United States and will not have to submit a copy of the 
master air waybill as an attachment to the air cargo manifest upon 
arrival in the United States. Under the test, the participant still 
will be required to submit all other documentation as required and be 
capable of retrieving and printing a copy of the information contained 
in the master air waybill upon demand by Customs.

DATES: The test will commence no earlier than March 3, 2003, and will 
run for approximately one year. Comments concerning this notice and all 
aspects of the announced test must be received on or before February 
20, 2003. Applications will be accepted throughout the duration of the 
test.

ADDRESSES: Written comments may be submitted to the U.S. Customs 
Service, Office of Field Operations, Manifest and Conveyance Branch, 
1300 Pennsylvania Avenue, NW., Room 5.2B, Washington, DC 20229. 
Interested parties may apply to participate in the test by submitting a 
written request to the U. S. Customs Service, Office of Field 
Operations, Trade Compliance and Facilitation, 1300 Pennsylvania 
Avenue, NW., Room 5.2B, Washington, DC 20229, ATTN: Paperless Master 
AWB Test.

FOR FURTHER INFORMATION CONTACT: David King, Manifest and Conveyance 
Branch, Office of Field Operations (202-927-1133).

SUPPLEMENTARY INFORMATION:

Background

    Title VI of the North American Free Trade Agreement Implementation 
Act (the Act), Pub. L. 103-182, 107 Stat. 2057, 2170 (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 631 of the Act creates 
sections 411 through 414 of the Tariff Act of 1930 (19 U.S.C. 1411 
through 1414), as amended, which define and list the existing and 
planned components of the NCAP (19 U.S.C. 1411), establish program 
goals (19 U.S.C. 1412), provide for the implementation and evaluation 
of the program (19 U.S.C. 1413), and provide for the remote location 
filing of entries (19 U.S.C. 1414).
    Requirements for conducting an approved test program or procedure 
designed to evaluate planned components of the NCAP are set forth in 
Sec.  101.9 of the Customs Regulations (19 CFR 101.9). These 
regulations, in part, enable the Commissioner of Customs to impose 
requirements different from those specified in the Customs Regulations, 
provided that the different requirements do not affect the collection 
of revenue, the public health and safety, or law enforcement. This test 
is established pursuant to that regulatory provision.

I. Description of Test Program

Air Cargo Manifest

    Section 122.42(c) of the Customs Regulations (19 CFR 122.42(c)) 
requires that the commander of an aircraft arriving in the United 
States from a foreign area, or his agent, must deliver upon arrival any 
required forms to the Customs officer at the place of entry. (Among 
these forms are the general declaration (Sec.  122.43), crew baggage 
declaration (Sec.  122.44), crew list (Sec.  122.45), stores list 
(Sec.  122.47), air cargo manifest (Sec.  122.48), and the passenger 
and crew manifests (Sec.  122.49a).) Section 122.48 of the Customs 
Regulations (19 CFR 122.48) provides that an air cargo manifest is 
required for all cargo on board a flight arriving in the United States 
from a foreign area, except for cargo arriving from and departing for a 
foreign country on the same through flight. Section 122.48(c), Customs 
Regulations (19 CFR 122.48(c)), provides that the air cargo manifest 
must be on Customs Form (CF) 7509, that it must contain all required 
information, and that a more complete description of the cargo shipped 
under air waybills may be provided by attaching to the cargo manifest a 
copy of each air waybill and, if a consolidated shipment, copies of the 
house air waybills.

Electronic Submission of the Air Waybill Information

    In an attempt to facilitate cargo processing and release, Customs 
has accepted, on a voluntary basis, the electronic transmission of air 
waybill information from qualified air carriers, through the Air 
Automated Manifest System (AAMS), either before or upon arrival of the 
aircraft in the United States. However, air carriers submitting air 
waybill information in this way are still required to submit the paper 
documents, even though the data is transmitted electronically. Now, to 
further facilitate the control, processing, and release of air cargo, 
Customs, via this test program, will relieve AAMS air carriers 
participating in the test from the requirement of submitting a copy of 
the master air waybill as an attachment to

[[Page 5073]]

the air cargo manifest when they electronically transmit master air 
waybill information to Customs prior to arrival of the aircraft in the 
United States. Test participants still must submit all other 
documentation as required under the regulations and be capable of 
retrieving and printing a copy of the master air waybill information 
upon demand by Customs.
    It is anticipated that the test will run for one year. In the 
event, however, that Customs determines that a longer test program 
period is warranted, Customs will announce an extension of the test by 
publication of a notice in the Federal Register.
    It is noted that Customs previously announced a NCAP test program 
regarding submission to Customs of electronic air cargo manifest 
information through publication of a notice in the Federal Register (65 
FR 58840) on October 2, 2000 (Announcement of a National Customs 
Automated Program Test Regarding Submission to Customs of Electronic 
Air Cargo Manifest Information). This October 2000 test is distinct 
from the test announced today in this document and remains in effect 
for any qualified air carriers who may wish to submit electronic air 
cargo manifest information to Customs prior to arrival of the aircraft 
in the United States without having to submit upon arrival a CF 7509 
(Air Cargo Manifest). (See the cited notice for eligibility and 
application instructions.) Submission of the CF 7509 is required under 
the test announced in this document.

Regulatory Provision Suspended

    As noted above, Sec.  122.48(c) provides that a more complete 
description of the cargo shipped under air waybills may be provided by 
attaching to the cargo manifest a copy of each air waybill and, if a 
consolidated shipment, copies of the house air waybills. Thus, when an 
air carrier opts to provide cargo information in this manner, copies of 
the master air waybill and any house air waybills must be submitted 
with the air cargo manifest. Under the test, this requirement to submit 
a copy of the master air waybill in paper form will be suspended when 
the test participant electronically transmits to Customs the air 
waybill information prior to the aircraft's arrival in the United 
States. Participants will not be required to submit copies of these air 
waybills with the cargo manifest but must be capable of providing 
Customs required air waybill information, electronically or otherwise, 
upon demand by Customs. Participation in this test program does not 
relieve carriers from compliance with applicable requirements of other 
government agencies.

II. Test Program Eligibility Criteria

    To be eligible to participate in the test program, an air carrier 
must meet the following eligibility criteria:
    1. A carrier must be a qualified AAMS carrier in the port where it 
will operate under the test. A qualified AAMS carrier has been tested 
and certified by Customs to possess the technical capability to 
transmit and receive AAMS data. Technical requirements for AAMS 
carriers are specified in the Customs publication entitled, ``Customs 
Automated Manifest Interface Requirements --Air (CAMIR--Air).'' Any 
carrier not currently AAMS qualified may submit a written request to 
become an AAMS participant to the Customs Client Representative Branch 
closest to the applicant's operational location. A list of Customs 
Client Representatives may be obtained from the United States Customs 
Service, Office of Information and Technology, Client Representatives 
Branch, 7501 Boston Blvd., Springfield, VA 22153 (703/921-7500).
    2. A carrier must be a participant in the Customs-Trade Partnership 
Against Terrorism (C-TPAT) program. C-TPAT is a joint Customs-business 
initiative to build cooperative relationships that strengthen overall 
supply chain and border security. Application instructions for air 
carriers wishing to participate in the C-TPAT program may be found on 
the Internet at www.Customs.gov or may be requested in writing from the 
United States Customs Service, Office of Field Operations, Industry 
Partnership Programs, 1300 Pennsylvania Avenue, NW., Room 5.4C, 
Washington, DC 20229, ATTN: C-TPAT.

III. Test Program Application and Selection Process

Application Process

    Any air carrier that satisfies the eligibility criteria may apply 
to participate in the test program by submitting a written request to 
the United States Customs Service, Office of Field Operations, Trade 
Compliance and Facilitation, 1300 Pennsylvania Avenue, NW., Room 5.2B, 
Washington, D.C. 20229, ATTN: Paperless Master AWB Test. Customs will 
accept applications from eligible air carriers throughout the duration 
of the test. The request must be signed by an authorized official, 
designate the Customs port where the participant will operate under the 
test, and designate a point of contact and telephone number within the 
applicant's organization.
    Upon review, Customs will issue written notification regarding the 
approval or denial of the application. If denied, Customs will inform 
the applicant of the reasons for denial and the right to reapply after 
any deficiencies identified in the notice of denial have been 
corrected. Any air carrier that applies for permission to participate 
in the test program will be given due consideration by Customs and will 
be evaluated based on its ability to meet the requirements set forth in 
the notice.
    Participation in this test program will not be considered 
confidential information, and the identity of participants will be made 
available to the public upon written request.

IV. Test Program Procedures

    Test program procedures will be coordinated with all participating 
and affected parties. The following procedures apply to all participant 
air carriers and will be in effect for the duration of the test 
program:
    1. The participant air carrier must transmit the master air waybill 
information to AAMS with all the necessary data elements as set forth 
in the CAMIR-Air publication prior to the arrival of the aircraft. 
Where the carrier transfers the freight to a deconsolidator that 
participates in the AAMS program, the deconsolidator must 
electronically transmit the house air waybill information. Where the 
carrier transfers the freight to a non-automated deconsolidator or 
releases the freight from its own facility, the carrier must supply 
through AAMS complete house air waybill details including piece count, 
weight, cargo description, shipper, and consignee information.
    2. The participant must be able to print a paper copy of the master 
air waybill with the required data elements and submit it to Customs 
personnel upon demand by Customs.
    3. If for any reason, the electronic data interchange system 
between Customs and the participant becomes inoperative or Customs is 
unable to receive electronic transmissions, the participant will print 
a copy of the master air waybill, attach it to the air cargo manifest, 
and submit it to Customs at the port of arrival.

V. Suspension/Termination From the Test Program and Administrative 
Review

Suspension/Termination Process

    The failure of a participant to comply with the procedural 
requirements or to

[[Page 5074]]

maintain participation in the programs required for eligibility (AAMS 
and C-TPAT), or failure to adhere to all applicable laws and 
regulations, may result in the suspension or termination of the 
participant from the test program. Except in instances of willfulness 
on the part of the participant, or where public health, interest, or 
safety is at issue, the port director will issue a written notice of 
proposed suspension to the participant. The notice will inform the 
participant of the following:
    1. The basis of the proposed action and all applicable terms and 
conditions regarding implementation of the proposed action and the 
administrative review process.
    2. The right to seek administrative review of the action, pursuant 
to the terms set forth in the notice. A request for review must be 
received by Customs on or before the 10th calendar day from the date 
the notice of proposed suspension was issued.
    3. That any action will be held in abeyance for a period of 10 
calendar days from the date of the notice or, if the participant timely 
seeks administrative review of the matter pursuant to the terms set 
forth in the notice, pending conclusion of Customs review of the 
matter.
    4. That failure to seek administrative review of the matter 
pursuant to the terms set forth in the notice will constitute 
acceptance of the terms and conditions set forth in the notice, 
preclude any further administrative review of the matter, and 
automatically commence the suspension at midnight of the 10th calendar 
day from the date of the notice.
    Where there is willfulness on the part of the participant, or where 
public health, interest, or safety is concerned, suspension from the 
test program may go into effect immediately upon issuance of an 
electronic notice by the port director that sets forth the basis of the 
action and any related information. Within 5 calendar days from the 
date the electronic notice was issued, Customs will issue a written 
notice of immediate suspension to the participant. A notice of 
immediate action, whether electronic or in paper form, will provide the 
same kind of information as that contained in a notice of proposed 
suspension. An immediate suspension will remain in effect pending 
conclusion of any administrative review of the action by Customs.

Administrative Review

    To seek administrative review of any suspension from the test 
program, the participant must submit documentation to the port director 
that issued the suspension notice within 10 calendar days from the date 
the notice of proposed suspension or an electronic notice of immediate 
suspension was issued. The documentation must establish, to the 
satisfaction of Customs, that the alleged deficiencies which led to the 
action did not occur or have been corrected.
    The port director will review the documentation and issue a written 
final notice of decision to the participant within 30 days from the 
date the documentation was received by Customs, unless the time period 
is extended upon due notice. In the case of a participant seeking 
review of a proposed suspension, the final notice will either impose a 
suspension that is effective upon the date of the final notice or 
indicate that no suspension will be imposed. In the case of a 
participant seeking administrative review of an immediate suspension, 
the final notice will inform the participant that the suspension has 
been affirmed, modified, or revoked upon the date of the final notice.
    If a suspension is imposed, the suspended participant may seek a 
second level of administrative review to appeal the final notice of 
suspension by submitting documentation to the Assistant Commissioner, 
Office of Field Operations, within 10 calendar days of the final 
notice. The Assistant Commissioner or its designee will issue to the 
suspended participant a written decision within 30 calendar days from 
the date the documentation was received, unless this time period is 
extended upon due notice. The decision will affirm, modify, or revoke 
the suspension and will set forth the basis for the determination, as 
well as any applicable terms and conditions.

VI. Test Evaluation Criteria

    During the course of the test, Customs and the participants will 
evaluate the test, and the results of the evaluation will be published 
in the Federal Register and the Customs Bulletin as required by Sec.  
101.9(b) of the Customs Regulations (19 CFR 101.9(b)). The test will be 
evaluated through an analysis of questionnaires completed by affected 
participants and Customs personnel. Evaluation criteria for Customs and 
other government agencies include workload impact, policy and 
procedural accommodation, and trade compliance impact. Criteria for 
participants include cost benefits and operational efficiency.

    Dated: January 28, 2003.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 03-2280 Filed 1-30-03; 8:45 am]
BILLING CODE 4820-02-P