[Federal Register Volume 70, Number 6 (Monday, January 10, 2005)]
[Notices]
[Pages 1730-1732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-402]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection


Modification of the National Customs Automation Program Test 
Regarding Reconciliation

AGENCY: Customs and Border Protection, Homeland Security.

ACTION: General notice.

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SUMMARY: This document modifies the Customs and Border Protection 
Automated Commercial System Reconciliation prototype test by changing 
the requirement for filing the

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Reconciliation entry from no later than 15 months to no later than 21 
months after the date the importer declares its intent to file the 
Reconciliation. This change does not apply to Reconciliation entries 
covering NAFTA or US-CFTA claims. Other than this modification, the 
test remains the same as set forth in previously published Federal 
Register notices.

DATES: The test modification set forth in this document is effective on 
February 9, 2005. The two-year testing period of this Reconciliation 
prototype commenced on October 1, 1998, and was extended indefinitely 
starting October 1, 2000. Applications to participate in the test will 
be accepted throughout the duration of the test.

ADDRESSES: Written inquiries regarding participation in the 
Reconciliation prototype test and/or applications to participate should 
be addressed to Mr. Richard Wallio, Reconciliation Team, Bureau of 
Customs and Border Protection, 1300 Pennsylvania Ave., NW., Room 5.2A, 
Washington, DC 20229-0001. Inquiries regarding the test may be made by 
accessing [email protected].

FOR FURTHER INFORMATION CONTACT: Mr. Richard Wallio at (202) 344-2556.

SUPPLEMENTARY INFORMATION:

Background

    Initially, it is noted that on November 25, 2002, the President 
signed the Homeland Security Act of 2002, 6 U.S.C. 101 et seq., Pub. L. 
107-296 (the HS Act), establishing the Department of Homeland Security 
and, under section 403(1) (6 U.S.C. 203(1)), transferring the U.S. 
Customs Service, including functions of the Secretary of the Treasury 
relating to the Customs Service, to the new department, effective on 
March 1, 2003. Also, under the HS Act and the Reorganization Plan 
Modification for the Department of Homeland Security that was signed on 
January 30, 2003, the U.S. Customs Service was renamed the Bureau of 
Customs and Border Protection (CBP). The agency will be referred to by 
that name in this document, unless reference to the Customs Service (or 
Customs) is appropriate in a given context.
    Reconciliation, a planned component of the National Customs 
Automation Program (NCAP), as provided for in Title VI (Subtitle B) of 
the North American Free Trade Agreement Implementation Act (Pub. L. 
103-182, 107 State. 2057 (December 8, 1993)), is currently being tested 
by CBP under the CBP Automated Commercial System (ACS) Prototype Test. 
Customs initially announced and explained the test in a general notice 
document published in the Federal Register (63 FR 6257) on February 6, 
1998. Clarifications and operational changes were announced in seven 
subsequent Federal Register notices: 63 FR 44303, published on August 
18, 1998; 64 FR 39187, published on July 21, 1999; 64 FR 73121, 
published on December 29, 1999; 66 FR 14619, published on March 13, 
2001, 67 FR 61200, published on September 27, 2002, 67 FR 68238, 
published on November 8, 2002, and 69 FR 73730, published on September 
2, 2004. A Federal Register (65 FR 55326) notice published on September 
13, 2000, extended the prototype indefinitely.
    For application requirements, see the Federal Register notices 
published on February 6, 1998, and August 18, 1998. For additional 
information regarding the test, see http://www.customs.gov/xp/cgov/import/cargo_summary/.

Reconciliation Generally

    Reconciliation is the process that allows an importer, at the time 
an entry summary is filed, to identify undeterminable information 
(other than that affecting admissibility) to CBP and to provide that 
outstanding information at a later date. The importer identifies the 
outstanding information by means of an electronic ``flag'' which is 
placed on the entry summary at the time the entry summary is filed. The 
issues for which an entry summary may be ``flagged'' (for the purpose 
of later reconciliation) are limited and relate to: (1) Value issues; 
(2) classification issues, on a limited basis; (3) issues concerning 
value aspects of entries filed under heading 9802, Harmonized Tariff 
Schedule of the United States (HTSUS; 9802 issues); and (4) post-entry 
claims under 19 U.S.C. 1520(d) for the benefits of the North American 
Free Trade Agreement (NAFTA) or the United States-Chile Free Trade 
Agreement (US-CFTA) for merchandise as to which such claims were not 
made at the time of entry.
    The flagged entry summary (the underlying entry summary) is 
liquidated for all aspects of the entry except those issues that were 
flagged. The means of providing the outstanding information at a later 
date relative to the flagged issues is through the filing of a 
Reconciliation entry. Thus, the flagging of an entry summary 
constitutes the importer's declaration of intent to file a 
Reconciliation entry. The flagged issues will be liquidated at the time 
the Reconciliation entry is liquidated. Any adjustments in duties, 
taxes, and/or fees owed will be made at that time. (The Reconciliation 
test procedure for making post-entry NAFTA claims, also applicable to 
US-CFTA claims, is explained in the February 6, 1998, and December 29, 
1999, Federal Register notices.)

Test Modification

    On December 3, 2004, the Miscellaneous Trade and Technical 
Corrections Act of 2004 (the Act; Pub. L. 108-429) was signed into law. 
Section 2101 of the Act amended 19 U.S.C. 1484(b)(1) to change the 
requirement for filing a Reconciliation entry from not later than 15 
months to not later than 21 months after the date the importer declares 
its intent to file the Reconciliation (date the entry summary is 
flagged which is the date of its filing). Based on this change, CBP is 
modifying the ACS Reconciliation prototype test by changing the 
requirement for filing the Reconciliation entry, except those covering 
NAFTA or US-CFTA issues, from no later than 15 months to no later than 
21 months after the date the importer declares its intent to file the 
Reconciliation. All other aspects of the test remain the same.
    The change to the test announced in this document is effective 30 
days after the date this notice is published in the Federal Register. 
Thus, under the test, on and after the effective date, Reconciliation 
entries covering most Reconciliation issues (those having to do with 
value, classification, or 9802 issues) must be filed as follows: (1) If 
the dates of entry relative to the flagged entry summaries covered by 
the Reconciliation entry fall on or after the effective date of this 
change, the Reconciliation entry must be filed no later than 21 months 
after the oldest entry summary date; (2) if the dates of entry relative 
to the flagged entry summaries covered predate the effective date, the 
Reconciliation entry must be filed no later than 15 months after the 
oldest entry summary date; and (3) where the dates of entry relative to 
the flagged entry summaries covered are a mixture of (1) and (2) above, 
the Reconciliation entry must be filed no later than 15 months after 
the oldest entry summary date. (CBP notes that the entry summary date 
for a given entry of merchandise is always either the same as or later 
than the entry date.)
    The filing of Reconciliation entries for 520(d) Reconciliation 
(relative to NAFTA and US-CFTA claims) is still required no later than 
12 months after the oldest date of entry (date of import) applicable to 
the flagged entry summaries covered. This requirement has not changed.


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    Dated: January 4, 2005.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 05-402 Filed 1-7-05; 8:45 am]
BILLING CODE 4820-02-P