[Federal Register Volume 70, Number 151 (Monday, August 8, 2005)]
[Notices]
[Pages 45736-45738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-15571]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection


Automated Commercial Environment (ACE): National Customs 
Automation Program Test of Periodic Monthly Payment Statement Process

AGENCY: Bureau of Customs and Border Protection; Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: This document announces changes in the Bureau of Customs and 
Border Protection's (CBP) National Customs Automation Program (NCAP) 
test concerning periodic monthly deposit of estimated duties and fees. 
A change to the time period allowed for the deposit of the duties and 
fees is being made in order to comply with the provisions of section 
2004 of the Miscellaneous Trade and Technical Corrections Act of 2004, 
Public Law 108-429, which extended the time of deposit of those 
estimated duties and fees from the 15th calendar day to the 15th 
working day of the month following the month in which the goods are 
either entered or released. Another change being made concerns whether 
CBP will establish a claim for liquidated damages when a participant 
removes an entry from a Periodic Daily Statement or a Preliminary 
Monthly Statement after expiration of a 10-working-day period after 
release. This document also advises that entries containing Census 
errors will be eligible to be placed on a Periodic Daily Statement and 
designated for monthly payment. The latter two changes are being made 
in order to increase the efficiencies of the Automated Commercial 
Environment (ACE) and to encourage participation in the Periodic 
Monthly Statement process.

DATES: The changes announced in this notice concerning the time of 
payment of duties and fees and the assessment of liquidated damages 
will take effect on August 8, 2005. The change announced concerning the 
placement of Census errors on the Periodic Daily Statement will take 
effect on August 1, 2005.

FOR FURTHER INFORMATION CONTACT: For questions regarding periodic 
monthly statement payments: Ms. Sherri Hoffman via email at 
[email protected], and Mr. Robert Hamilton via email at 
[email protected], or by telephone at (317) 298-1107.

SUPPLEMENTARY INFORMATION:

Background

    On February 4, 2004, the Bureau of Customs and Border Protection 
(CBP) published a General Notice in the Federal Register (69 FR 5362) 
announcing the National Customs Automation Program (NCAP) test for 
Periodic Monthly Payment Statement Process. The test, which is part of 
CBP's Automated Commercial Environment (ACE), benefits participants by 
giving them access to operational data through the ACE Secured Data 
Portal (``ACE Portal''), which provides them the capability to interact 
electronically with CBP, and by allowing them to deposit estimated 
duties and fees on a monthly basis based on a Periodic Monthly 
Statement issued by CBP.
    When the test started, only importers were eligible to apply for 
the test.

[[Page 45737]]

Eligibility was later expanded to allow brokers to apply if they were 
specifically designated by an ACE importer.
    On September 8, 2004, CBP published a General Notice in the Federal 
Register (69 FR 54302) which invited customs brokers, regardless of 
whether they were designated by participating importers to make 
Periodic Monthly Statement payments on their behalf, to apply to 
participate in the test. That notice set forth eligibility requirements 
for both importers and brokers.
    On February 1, 2005, CBP published a General Notice in the Federal 
Register (70 FR 5199) announcing that applicants seeking to establish 
importer or broker accounts so as to access the ACE Portal, or to 
participate in any ACE test (including the test for Periodic Monthly 
Payment Statement Process), are no longer required to provide a 
statement certifying participation in the Customs Trade Partnership 
Against Terrorism (C-TPAT).
    As provided in the February 4, 2004 General Notice announcing the 
test, participants in the Periodic Monthly Statement test are required 
to schedule entries for monthly payment. A Periodic Monthly Statement 
will list Periodic Daily Statements that have been designated for 
monthly payment. The Periodic Monthly Statement can be created on a 
port basis by the importer or broker, as was the case with existing 
daily statements in the Automated Commercial System (ACS) (ACE is the 
successor to ACS). The Periodic Monthly Statement can be created on a 
national basis by an Automated Broker Interface (ABI) filer. If an 
importer chooses to file the Periodic Monthly Statement on a national 
basis, he must use his filer code and schedule and pay the monthly 
statements. The Periodic Monthly Statement will be routed under 
existing CBP procedures. Brokers will only view/receive information 
that they have filed on an importer's behalf. ACE will not route a 
Periodic Monthly Statement to a broker through ABI if that statement 
lists information filed by another broker.

Description of the Changes

1. Payment of Duties and Fees
    Under statutory authority in place at the time of initiation of the 
Periodic Monthly Statement Process test, estimated duties and fees were 
to be paid on a monthly basis by the 15th calendar day in the month 
following the month in which the goods are either entered or released. 
Under a statutory change promulgated to section 505(a) of the Tariff 
Act of 1930, as amended, (19 U.S.C. 1505(a)), by Section 2004 of the 
Miscellaneous Trade and Technical Corrections Act of 2004, Public Law 
108-429, estimated duties and fees are to be paid by the 15th working 
day in the month following the month in which the goods are either 
entered or released. For the purposes of this test, the term ``working 
day'' is synonymous with the term ``business day,'' which is defined at 
sections 101.1 and 101.6(a) of the CBP Regulations (title 19 Code of 
Federal Regulations, sections 101.1 and 101.6(a)). This notice brings 
the NCAP test into compliance with the statutory change.
2. Removal of an Entry From a Periodic Daily Statement After Expiration 
of the 10-Working-Day Period After Release of the Entry
    In the February 4, 2004 General Notice, CBP provided that if 
participants remove an entry from a Periodic Daily Statement or a 
Preliminary Monthly Statement after expiration of a 10-working-day 
period after release, that entry must be paid individually and would be 
automatically subject to a claim for liquidated damages for late 
payment of estimated duties. This notice announces that entries 
removed, from the Periodic Daily Statement only, may be subject to a 
claim for liquidated damages. CBP will exercise its discretion whether 
to establish a claim for liquidated damages and will consider the 
timeliness of the submission of the entry information to CBP in making 
its decision. The purpose of this change is to encourage filers to use 
Periodic Monthly Statement and to submit their entry changes as soon as 
possible. This change does not apply to the removal of an entry from a 
Periodic Monthly Statement after expiration of a 10-working-day period 
after release, which will still be subject to an automatic claim for 
liquidated damages for late payment of estimated duties.
3. Entries With Census Errors
    CBP will allow all entries currently eligible for placement on a 
daily statement to be placed on a Periodic Daily Statement, with the 
exception of reconciliation entries, NAFTA duty deferral entries, and 
entries requiring the payment of excise taxes. Entries containing 
Census errors, originally disallowed for inclusion on the Periodic 
Daily Statement, will now be eligible for placement on a Periodic Daily 
Statement.

Monthly Payment Procedures

    Incorporating the changes regarding the extended time for payment 
of duties and fees, and the removal of entries from the Periodic Daily 
Statement after expiration of the 10-working-day period after release, 
as announced in this notice, entries for monthly payment will be 
processed as follows:
    a. As entries are filed with CBP, the importer or its designated 
broker schedules them for monthly payment;
    b. Those entries scheduled for monthly payment will appear on the 
Preliminary Periodic Daily Statement;
    c. The Importer or its designated broker processes entry summary 
presentation transactions for Periodic Daily Statements within 10 
working days of the date of entry (this is not changed from the 
previous notice);
    d. After summary information has been filed, the scheduled entries 
will appear on the Final Periodic Daily Statement;
    e. Periodic Daily Statements scheduled for monthly payment will 
appear on the Preliminary Periodic Monthly Statement; CBP will generate 
the Preliminary Periodic Monthly Statement on the 11th working day of 
the month (changed from 11th ``calendar day'') following the month in 
which the merchandise is either entered or released, whichever comes 
first, unless the importer or designated broker selects an earlier 
date;
    f. On the 15th working day of the month, for Automated Clearing 
House (ACH) debit participants, CBP will transmit the debit 
authorizations for the periodic daily statements to the financial 
institution and the periodic monthly statement will be marked paid. The 
Final Periodic Monthly Statement will be generated by CBP and be 
transmitted to the importer or his designated broker. ACH Debit 
participants must ensure that the money amount identified on the 
Preliminary Monthly Statement is, in fact, available in their bank 
account by the 15th working day of the month.
    g. ACH credit participants must initiate payment no later than the 
14th working day of the month. CBP must receive the settlement for the 
credit by the 15th working day in order to have the periodic monthly 
statement marked paid and treated as a timely payment. The Final 
Periodic Monthly Statement will be generated by CBP and be transmitted 
to the importer or his designated broker.
    For both ACH Credit and ACH Debit participants, CBP will generate 
the Final Periodic Monthly Statement on the night that payment is 
processed.
    Participants should note that if they voluntarily remove an entry 
from a Periodic Daily Statement before expiration of the 10-working-day 
period

[[Page 45738]]

after release, that entry may be placed on another Periodic Daily 
Statement falling within the same 10-working-day period. If, however, 
participants remove an entry from a Periodic Daily Statement after 
expiration of the 10-working-day period after release, the entry may be 
the subject of a claim for liquidated damages for late payment of 
estimated duties.

Suspension of Regulations

    During the testing of the Periodic Monthly Statement process, CBP 
is suspending provisions in Parts 24, 141, 142, and 143 of the CBP 
Regulations (Title 19 Code of Federal Regulations) pertaining to 
financial, accounting, entry procedures, and deposit of estimated 
duties and fees. Absent any specified alternate procedure, the current 
regulations apply. All of the terms of the test and criteria for 
participation therein, as announced in the previous notices identified 
above, continue to be applicable unless changed by this notice.

    Dated: August 1, 2005.
Todd C. Owen,
Acting Assistant Commissioner, Office of Field Operations.
[FR Doc. 05-15571 Filed 8-5-05; 8:45 am]
BILLING CODE 4820-02-P