[Federal Register Volume 71, Number 13 (Friday, January 20, 2006)]
[Notices]
[Pages 3315-3316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-529]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

[USCBP-2006-0017]


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

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

ACTION: General notice.

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SUMMARY: This document announces a modification 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. CBP will no longer require Automated Clearing House 
(ACH) credit participants to initiate payment earlier than the 15th 
working day of the month as was required by a Federal Register notice 
published on August 8, 2005. CBP, however, 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.

DATES: The changes announced in this Notice are effective immediately.

FOR FURTHER INFORMATION CONTACT: For questions regarding periodic 
monthly statement payments: Mr. Michael Maricich via e-mail at 
[email protected], or by telephone at (703) 921-7520.

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. 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.
    On August 8, 2005, CBP published a General Notice in the Federal 
Register (70 FR 45736) changing the time period allowed for the 
periodic monthly deposit of 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. That change was 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. The document also advised that entries containing Census 
errors will be eligible to be placed on a Periodic Daily Statement and 
designated for monthly payment. Finally, the document announced that a 
participant would be subject to a claim for liquidated damages if the 
participant removed an entry from a Periodic Daily Statement after 
expiration of a 10-working-day period after release.
    On September 22, 2005, CBP published a General Notice in the 
Federal Register (70 FR 55623) eliminating the requirement that 
participants in the Periodic Monthly Statement test provide a bond 
rider covering the periodic payment of estimated duties and fees. The 
Notice indicated that nonpayment or untimely payment of estimated 
duties and fees, however, may result in action by CBP to impose 
sanctions on the delinquent importer of record or to allow the surety 
to terminate its basic importation bond. If the bond principal is a 
participant in the Periodic Monthly Statement test, sureties will now 
be allowed, under certain conditions, to terminate bonds with 3 
business days notice to the bond principal and CBP.

Modification of the Monthly Payment Statement Process

    This Notice modifies the payment procedure set forth in the August 
8, 2005 Notice (70 FR 45736) by specifically eliminating the 
requirement that ``ACH credit participants must initiate payment no 
later than the 14th working day of the month.'' CBP did not intend to 
dictate the time in which

[[Page 3316]]

payment must be initiated. 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 August 8, 2005 Notice (70 FR 45736) established monthly payment 
processing procedures that incorporated 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.
    The process for entries scheduled for monthly payment, as of this 
date including the modifications made by this Notice, is 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;
    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 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. CBP must receive the settlement for the credit by the 15th 
working day of the month 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 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: January 12, 2006.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 06-529 Filed 1-19-06; 8:45 am]
BILLING CODE 9111-14-P