[Federal Register Volume 72, Number 56 (Friday, March 23, 2007)]
[Proposed Rules]
[Pages 13714-13720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-1330]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 111, 113, 141, 142 and 143

[USCBP-2006-0001]
RIN 1505-AB20


Remote Location Filing

AGENCIES: Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend title 19 of the Code of 
Federal Regulations to set forth provisions implementing Remote 
Location Filing (RLF). The proposed changes implement the terms of 
section 414 of the Tariff Act of 1930, as added by section 631 within 
the Customs Modernization provisions of the North American Free Trade 
Agreement Implementation Act, and would allow a RLF filer to 
electronically file with CBP those entries and related information that 
CBP can process in a completely electronic data interchange system from 
a location other than where the goods will arrive.

DATES: Comments must be received on or before May 22, 2007.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments via docket number USCBP 
2006-0001.
     Mail: Trade and Commercial Regulations Branch, Bureau of 
Customs and Border Protection, 1300 Pennsylvania Avenue, NW. (Mint 
Annex), Washington, DC 20229.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Submitted comments 
may also be inspected during regular business days between the hours of 
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch, 
Bureau of Customs and Border Protection, 799 9th Street, NW., 5th 
Floor, Washington, DC. Arrangements to inspect submitted comments 
should be made in advance by calling Joseph Clark at (202) 572-8768.

FOR FURTHER INFORMATION CONTACT: For systems or automation issues: Tony 
Casucci at (202) 772-2041 or Jennifer Engelbach at (562) 366-5593. For 
operational or policy issues: Marla Bianchetta at (202) 344-2693 or via 
e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of the 
proposed rule. The Bureau of Customs and Border Protection (CBP) also 
invites comments that relate to the economic, environmental, or 
federalism effects that might result from this proposed rule. If 
appropriate to a specific comment, the commenter should reference the 
specific portion of the proposed rule, explain the reason for any 
recommended change, and include data, information, or authority that 
support such recommended change.

Background

    This document proposes changes to the CBP regulations to provide 
for Remote Location Filing. Remote Location Filing (RLF) is currently 
allowed through National Customs Automation Program (NCAP) testing.

The National Customs Automation Program (NCAP)

    Title VI of the North American Free Trade Agreement Implementation 
Act (the Act), Public Law 103-182, 107 Stat. 2057 (December 8, 1993), 
contains provisions pertaining to Customs Modernization (107 Stat. 
2170). Subpart B of title VI of the Act concerns the National Customs 
Automation Program (NCAP), an electronic system for the processing of 
commercial importations. Within subpart B, section 631 of the Act added 
sections 411 through 414 to the Tariff Act of 1930 (19 U.S.C. 1411-
1414). These sections: define the NCAP, provide for the establishment 
of and participation in the NCAP and include a list of existing and 
planned components (section 411); list the NCAP goals (section 412); 
provide for the implementation and evaluation of the NCAP (section 
413); and, provide for Remote Location Filing (RLF) (section 414). One 
of the planned NCAP components listed in section 411 is the electronic 
filing (including RLF under section 414) of entry information with 
Customs (now ``CBP''). See 19 U.S.C. 1411(a)(2)(B).

Description of Remote Location Filing Prototype Program

    RLF is intended to permit electronic filing of an entry of 
merchandise with CBP from a location other than where the goods will 
arrive or the district designated in the entry for examination (a 
``remote location''). See section 414(a)(1).
    As a key part of the NCAP entry filing component, RLF is intended 
to conform CBP practices to trade business processes. By using 
electronic filing, RLF is intended to reduce paperwork that is costly 
to create, review and store. RLF is also intended to enable a customs 
broker with a national permit to serve several port locations without 
the cost of maintaining multiple offices.
    Section 413(b) of the Act provides for the implementation, testing 
and evaluation of the NCAP and requires that the Secretary of the 
Treasury consult with the trade community, including importers, customs 
brokers, shippers, and other affected parties, in the development, 
implementation and evaluation of the NCAP program and its components. 
In accordance with this section, CBP has held public meetings on RLF 
since June, 1994, and has tested the RLF concept via prototypes since 
1995. CBP continues to provide RLF information and updates on the 
Automated Broker Interface (ABI) Administrative Message System and on 
the CBP Internet Web site located at http://www.cbp.gov (type in the 
search term ``Remote Location Filing'').
    RLF prototypes have been tested in accordance with Sec.  101.9(b) 
of title 19 of the Code of Federal Regulations (19 CFR

[[Page 13715]]

101.9(b)), which provides for the testing of NCAP components. A 
chronological listing of Federal Register publications detailing 
developments in the RLF prototypes follows:
     On April 6, 1995, CBP announced in the Federal Register 
(60 FR 17605) its plan to conduct the first of at least two RLF test 
prototypes. The first RLF test, designated Prototype One, began on June 
19, 1995.
     On February 27, 1996, CBP announced in the Federal 
Register (61 FR 7300) the expansion of Prototype One and its extension 
until the implementation of RLF Prototype Two.
     RLF Prototype Two commenced on January 1, 1997. See 
document published in the Federal Register (61 FR 60749) on November 
29, 1996.
     CBP announced in the Federal Register (62 FR 64043), on 
December 3, 1997, the extension of RLF Prototype Two until December 31, 
1998.
     On December 7, 1998, CBP announced in the Federal Register 
(63 FR 67511) that Prototype Two would remain in effect until concluded 
by notice in the Federal Register.
     On July 6, 2001, CBP announced in the Federal Register (66 
FR 35693) changes to the RLF Prototype Two eligibility requirements.
     On November 16, 2001, CBP announced in the Federal 
Register (66 FR 57774) a deadline extension for customs brokers 
participating in RLF to submit their national broker permit numbers to 
CBP.
     On February 25, 2003, CBP announced in the Federal 
Register (68 FR 8812) that line release entries would no longer be 
permitted for purposes of RLF Prototype Two, and set forth a 
comprehensive and updated list of current RLF eligibility requirements 
and a description of a new simplified application process.
     On March 31, 2005, CBP announced in the Federal Register 
(70 FR 16510) that RLF will now be permitted for cargo that will be 
moved using immediate transportation (IT) and transportation and export 
(T & E) in-bond procedures.
    In accordance with section 413(b), CBP has evaluated the RLF 
prototype and determined it to be successful in meeting the NCAP 
objectives stated above. For this reason, CBP is proposing to implement 
on a permanent basis the RLF regulatory provisions described in this 
document. These provisions were developed on the basis of section 414, 
the operational experiences garnered by RLF prototype tests, and other 
CBP initiatives such as the Automated Commercial Environment (ACE) and 
Trade Compliance Redesign.
    CBP intends to terminate the existing RLF prototype at such time as 
a final rule adopting these proposals is in effect. Until such time, 
RLF prototype participants may continue to participate in the test 
program. All current RLF prototype participants meet the requirements 
for RLF filing proposed in this document. No formal application process 
is proposed.

RLF-Operational CBP Locations

    An RLF filer may electronically transmit an entry filing from a 
remote location, other than where the goods will arrive, to an RLF-
operational CBP location.
    If the proposed RLF regulations set forth in this document are 
adopted as a final rule, the CBP locations that have been identified as 
operational for RLF purposes under Prototype Two will continue to serve 
in this capacity. In addition, CBP intends to have all service ports, 
as defined in Sec.  101.1 of title 19 of the CFR (19 CFR 101.1) and 
listed in Sec.  101.3(b)(2) (19 CFR 101.3(b)(2)), RLF-operational prior 
to the effective date of any final action on these regulatory 
proposals. It is also anticipated that if sufficient trade interest 
exists, and CBP deems it appropriate, other ports of entry will become 
RLF-operational once final regulations are in place. Announcements of 
new locations will be placed on the Automated Broker Interface (ABI) 
Administrative Message System and a list of all RLF-operational 
locations is available for viewing on the CBP Internet Web site located 
at http://www.cbp.gov (type in the search term ``Remote Location 
Filing'').

Explanation of Amendments

    This document proposes a regulatory framework for RLF in a new 
subpart E to part 143 and proposes to amend, where necessary, those 
aspects of the existing CBP regulations that are impacted by RLF. The 
proposed changes, other than those involving minor wording or other 
editorial changes, are discussed below in more detail.

New Subpart E to Part 143--Regulatory Framework for RLF

    CBP proposes to set the regulatory framework for RLF in a new 
subpart E to Part 143 as follows:

Subpart E to Part 143--Remote Location Filing

Section 143.41

    Proposed new Sec.  143.41 provides that subpart E sets forth the 
general requirements and procedures for RLF, and that RLF entries 
remain subject to the documentation, document retention, and document 
retrieval requirements of this chapter as well as the general entry 
requirements of parts 141, 142 and 143. Proposed Sec.  143.41 further 
provides that use of the RLF system is voluntary.

Section 143.42

    Proposed new Sec.  143.42 sets forth definitions for purposes of 
subpart E to part 143, as well as providing that the definitions set 
forth in Sec.  143.32 also apply to subpart E.

Section 143.43

    Proposed new Sec.  143.43 sets forth the eligibility criteria for 
participation in RLF.

Section 143.44

    Proposed new Sec.  143.44 sets forth the procedures for RLF.

Section 143.45

    Proposed new Sec.  143.45 prescribes the filing of additional entry 
information in a RLF context.

Proposed Amendments to Existing Regulations

Section 111.2(b)(2)(i)(C)

    Section 111.2 prescribes when a license and district permit are 
required. Paragraph (b)(2)(i)(C) sets forth an exception to the 
district permit rule and states, in pertinent part, that a national 
permit issued to a broker under 19 CFR 111.19(f) will constitute 
sufficient permit authority for the broker to act as a NCAP participant 
who may electronically file entries for merchandise from a remote 
location.
    In this document, it is proposed to amend Sec.  111.2(b)(2)(i)(C) 
to clarify that a broker holding a national permit may electronically 
file entries for merchandise from a remote location so long as the 
terms set forth in the RLF regulations (19 CFR subpart E to part 143) 
have been met.

Section 113.62(j)(1)

    Section 113.62(j)(1) covers the agreement of a principal to comply 
with electronic entry filing requirements and in this regard refers 
specifically to subpart D of part 143.
    As a consequence of the proposal to add a new subpart E to part 143 
to cover RLF, it is proposed to amend paragraph (j)(1) by removing the 
limiting reference to ``subpart D'' so that the bond conditions will 
apply equally to the RLF provisions of proposed subpart E.

Section 141.18(a)

    Section 141.18 of title 19 of the CFR (19 CFR 141.18) concerns 
entry by nonresident corporations. Section 141.18(a) provides that the 
corporation

[[Page 13716]]

cannot enter merchandise for consumption unless it has a resident agent 
in the State where the port of entry is located who is authorized to 
accept service of process against the corporation.
    In order to accommodate the proposed RLF regulations, this document 
proposes to amend Sec.  141.18(a) to provide that, for RLF purposes, a 
nonresident corporation must have a resident agent authorized to accept 
service of process against that corporation either in the State where 
the port of entry is located or in the State from which the remote 
location filing originates.

Section 141.61(a) and (b)

    Section 141.61 of title 19 of the CFR (19 CFR 141.61) concerns the 
completion of entry and entry summary documentation. Paragraph (a)(1) 
provides that entry and entry summary documentation must ``be prepared 
on a typewriter, or with ink, indelible pencil, or other permanent 
medium,'' that an entry summary shall be signed by the importer (see 
Sec.  101.1 of this chapter)'' and that entries, entry summaries and 
accompanying documentation must be on the appropriate forms specified 
by the regulations, must clearly set forth all required information and 
must be legible.
    This document proposes to amend paragraph (a)(1) by exempting 
electronic entry from these requirements and including language, 
currently set forth in paragraph (b) of this section, which pertains to 
``signing of the entry'' as this is also only relevant to non-
electronic filings. It is also proposed to remove obsolete language set 
forth in Sec.  141.61(b) which provides that the signing of the 
consignee's declaration, in certain instances, is regarded as 
satisfying 19 U.S.C. 1484(d).
    Insofar as the regulations set forth in subpart D of part 143 
provide for the entry of merchandise processed electronically, and the 
RLF regulations proposed in this document as new subpart E to part 143 
also involve electronic filing of entry and entry summary 
documentation, it is proposed to create a new paragraph (a)(2) which 
sets forth the manner by which electronic entry and entry summary 
documentation are to be prepared. To this end, it is proposed to set 
forth language stating that electronic entry and entry summary 
documentation must contain the information required by this section, 
and must be certified by the importer of record or his duly authorized 
agent, one of whom must be resident in the United States for purposes 
of receiving service of process, as being true and correct to the best 
of his knowledge. If certified, the electronic documentation is binding 
in the same manner and to the same extent as signed documents.
    It is further proposed to redesignate existing paragraph (a)(2), 
which pertains to marks and numbers, as new paragraph (b).

Section 141.63(c)

    Section 141.63 of title 19 of the CFR (19 CFR 141.63) concerns the 
submission of entry summary documentation for preliminary review. 
Paragraph (c) covers merchandise entered other than at the port of 
arrival. Specifically, paragraph (c) provides that if merchandise is to 
arrive or has arrived at one port and the importer wishes to file his 
entry documentation at another port to which the merchandise is 
destined, he may do so upon approval of the port director at the port 
of destination. The director of the destination port may then authorize 
release of the merchandise, after its importation at the port of 
arrival, or postpone its release if he believes it is necessary for 
examination or other purposes.
    Paragraph (c) was added to the CBP regulations in 1987 to cover 
``PAIRED'' (``Port of Arrival Immediate Release and Enforcement 
Determination'') entries. See, T.D. 87-78 (52 FR 24153, June 29, 1987). 
The legislative history relating to section 631 of the Act (House 
Report No. 103-361(I), page 127) explicitly states Congress' intent to 
discontinue ``PAIRED'' entries upon implementation of the RLF part of 
the entry filing component of NCAP. Accordingly, it is proposed to 
remove Sec.  141.63(c) from the regulations.

Section 141.86(h)

    Section 141.86 of title 19 of the CFR (19 CFR 141.86) covers the 
contents of invoices and other general invoice requirements. Paragraph 
(h) sets forth standards for the numbering of invoices and pages. 
Specifically, paragraph (h)(1) requires that when more than one invoice 
is included in the same entry, each invoice with its attachments must 
be numbered consecutively by the importer on the bottom of the face of 
each page, beginning with No. 1. Paragraph (h)(2) requires that if the 
invoice or invoices filed with one entry consist of more than two 
pages, each page must be numbered consecutively by the importer on the 
bottom of the face of each page. The page numbering must begin with No. 
1 for the first page of the first invoice and continue in a single 
series of numbers through all the invoices and attachments included in 
one entry. Paragraph (h)(3) covers both the numbering of invoices and 
multiple-page invoices and requires that, when applicable, both the 
invoice number and the page number must be shown at the bottom of each 
page.
    The proposed RLF regulations set forth in this document, as well as 
the existing provisions for electronic entry filing set forth in 
subpart D of part 143, provide for the electronic transmission and 
processing of entries. In consideration of the fact that these 
electronic procedures may not allow a RLF filer to number the invoices 
and pages in conformity with Sec.  141.86(h), it is proposed to revise 
Sec.  141.86(h) to exclude electronic transmissions of invoice data 
made pursuant to the terms set forth in part 143 from these invoice 
numbering requirements.

Section 141.90(b) and (d)

    Section 141.90 of title 19 of the CFR (19 CFR 141.90) concerns the 
notation of tariff classification, rate of duty and value on invoices. 
Paragraph (b) requires that the appropriate tariff subheading number 
and rate of duty be noted by the importer in the left-hand portion of 
the invoice next to the articles to which they apply. Paragraph (d) 
provides that all notations made on an invoice by the importer or 
broker must be in blue or black ink.
    It is proposed to revise Sec.  141.90(b) and (d) to except from 
these requirements those invoices that are submitted electronically 
pursuant to the terms set forth in part 143.

Section 142.3(a)

    Section 142.3 of title 19 of the CFR (19 CFR 142.3) sets forth the 
entry documentation required to secure the release of merchandise. 
Paragraph (a) identifies different types of entry documentation. 
Paragraph (b) identifies the entry documentation that is required when 
entry summary is filed at the time of entry. Paragraph (c) states that 
the port director may require additional copies of the documentation.
    As the regulations set forth in existing subpart D and proposed 
subpart E to part 143 provide for the electronic transmission of entry 
documentation, it is proposed to amend Sec.  142.3 by adding a new 
paragraph (d) which sets forth that the entry documentation identified 
in this section may be submitted to CBP in either a paper or an 
electronic format.

Section 143.0

    Section 143.0 of title 19 of the CFR (19 CFR 143.0) identifies the 
scope of part 143 as setting forth the requirements and procedures for 
participation in ABI and for the

[[Page 13717]]

clearance of imported merchandise under appraisement and informal 
entries as well as under electronic entry filing, which are in addition 
to the general requirements and procedures for all entries set forth in 
part 141 of this chapter.
    It is proposed that Sec.  143.0 be amended to include reference to 
the fact that RLF requirements and procedures are included within part 
143.

Section 143.32

    Section 143.32 of title 19 of the CFR (19 CFR 143.32) sets forth 
definitions for purposes of subpart D of this chapter.
    This document proposes to amend Sec.  143.32 by stating that the 
definitions also apply, where applicable, for purposes of subpart E of 
this chapter. It is also proposed to add a definition for ``Electronic 
Invoice Program'' (EIP), which refers to modules of the Automated 
Broker Interface (ABI) that allow entry filers to transmit detailed 
invoice data and includes Automated Invoice Interface (AII), as well as 
any other electronic invoice authorized by CBP.

Comments

    Before adopting this proposal as a final rule, consideration will 
be given to any written comments timely submitted to CBP, or 
transmitted via e-mail to http://www.regulations.gov., including 
comments on the clarity of this proposed rule and how it may be made 
easier to understand. Comments submitted will be available for public 
inspection in accordance with the Freedom of Information Act (5 U.S.C. 
552) and Sec.  103.11(b) of title 19 of the CFR (19 CFR 103.11(b)), on 
regular business days between the hours of 9 a.m. and 4:30 p.m. at the 
Trade and Commercial Regulations Branch, Office of International Trade, 
Customs and Border Protection, 799 9th St., NW., Washington, DC. 
Arrangements to inspect submitted documents should be made in advance 
by calling Joseph Clark at (202) 572-8768.

The Regulatory Flexibility Act and Executive Order 12866

    Because these proposed amendments implement a voluntary program 
provided for by statute, and will have the effect of streamlining the 
entry process and reducing the overall regulatory burden on the general 
public, pursuant to the provisions of the Regulatory Flexibility Act, 5 
U.S.C. 601 et seq., it is certified that, if adopted, the proposed 
amendments will not have a significant economic impact on a substantial 
number of small entities. Further, these proposed amendments do not 
meet the criteria for a ``significant regulatory action'' as specified 
in E.O. 12866.

Paperwork Reduction Act

    As there are no new collections of information proposed in this 
document, the provisions of the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507) are inapplicable.

Signing Authority

    This document is being issued in accordance with 19 CFR 0.1(a)(1).

List of Subjects

19 CFR Part 111

    Administrative practice and procedure, Brokers, Customs duties and 
inspection, Imports, Licensing, Reporting and recordkeeping 
requirements.

19 CFR Part 113

    Customs duties and inspection, Imports, Reporting and recordkeeping 
requirements, Surety bonds.

19 CFR Part 141

    Customs duties and inspection, Entry of merchandise, Invoices, 
Release of merchandise, Reporting and recordkeeping requirements.

19 CFR Part 142

    Customs duties and inspection, Forms, Reporting and recordkeeping 
requirements.

19 CFR Part 143

    Automated Broker Interface (ABI), Computer technology (Electronic 
entry filing), Customs duties and inspection, Entry of merchandise, 
Invoice requirements, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    For the reasons stated above, it is proposed to amend title 19 of 
the Code of Federal Regulations (19 CFR parts 111, 113, 141, 142 and 
143) as set forth below.

PART 111--CUSTOMS BROKERS

    1. The general authority citation for part 111 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States), 1624, 1641.
* * * * *
    2. Section 111.2(b)(2)(i)(C) is revised to read as follows:


Sec.  111.2  License and district permit required.

* * * * *
    (b) * * *
    (2) * * *
    (i) * * *
    (C) Electronic filing. A broker may electronically file entries for 
merchandise from a remote location, pursuant to the terms set forth in 
subpart E to part 143 of this chapter, and may electronically transact 
other customs business even though the entry is filed, or other customs 
business is transacted, within a district for which the broker does not 
have a district permit; and
* * * * *

PART 113--CUSTOMS BONDS

    3. The general authority citation for part 113 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1623, 1624.

* * * * *
    4. In Sec.  113.62, paragraph (j)(1) is amended by removing the 
reference ``, subpart D,'' and by removing the words ``that 
subpart'' and adding in their place the words, ``part 143''.

PART 141--ENTRY OF MERCHANDISE

    5. The general authority citation for part 141 is revised, and the 
specific authority citations for subparts F and G and Sec. Sec.  141.68 
and 141.90 continue to read as follows:

    Authority: 19 U.S.C. 66, 1414, 1448, 1484, 1624.

    Subpart F also issued under 19 U.S.C. 1481; Subpart G also issued 
under 19 U.S.C. 1505;
* * * * *
    Section 141.68 also issued under 19 U.S.C. 1315;
* * * * *
    Section 141.90 also issued under 19 U.S.C. 1487;
* * * * *

    6. In Sec.  141.18:
    a. The introductory sentence is amended by removing the word 
``Customs'' and adding in its place the word ``customs'', and by 
removing the word ``shall'' and adding in its place the word ``may'';
    b. Paragraph (a) is revised; and
    c. Paragraph (b) is amended by removing the word ``Customs'' and 
adding in its place the term ``CBP''.
    The revision reads as follows:


Sec.  141.18  Entry by nonresident corporation.

* * * * *
    (a) Has a resident agent in the State where the port of entry is 
located who is authorized to accept service of process against that 
corporation or, in the case of an entry filed from a remote location 
pursuant to subpart E of part 143 of this chapter, has a resident agent 
authorized to accept service of process

[[Page 13718]]

against that corporation either in the State where the port of entry is 
located or in the State from which the remote location filing 
originates; and
* * * * *
    7. In Sec.  141.61:
    a. Paragraphs (a) and (b) are revised;
     b. Paragraph (c) is amended, in the first sentence, by removing 
the word ``shall'' and adding in its place the word ``must'', and; in 
the second sentence, by removing the word ``shall'' and adding in its 
place the word ``will'';
    c. Paragraph (d) is amended by removing the word ``shall'' each 
place that it appears and adding the word ``must'', and by removing the 
words ``Customs Form'' each place they appear and adding the words 
``CBP Form'';
    d. Paragraph (e) is amended: in paragraphs (e)(1) through (e)(3), 
by removing the word ``shall'' each place that it appears and adding 
the word ``must'', and by removing the words ``Customs Form'' each 
place they appear and adding the words ``CBP Form''; in paragraph 
(e)(4), by removing the word ``shall'' and adding in its place the word 
``will'' and by removing the word ``Customs'' and adding in its place 
the term ``CBP''; and, in paragraph (e)(5), by removing the word 
``shall'' and adding in its place the word ``will''; and
    e. Paragraph (f) is amended: in paragraph (f)(1), by removing the 
word ``shall'' and adding in its place the word ``must''; in paragraph 
(f)(1)(iv), by removing, in the second sentence, the words ``shall 
represent'' and adding in their place the words ``must represent''; 
and, in the third sentence, by removing the word ``shall'' and adding 
in its place the word ``must'' and by removing the word ``Customs'' 
each place that it appears and adding the term ``CBP''; in paragraph 
(f)(2)(i), by removing the word ``shall'' each place that it appears 
and adding the word ``must'' and by removing the word ``Customs'' and 
adding in its place the term ``CBP''; in paragraph (f)(2)(ii), by 
removing, in the first sentence, the word ``shall'' and adding in its 
place the word ``must'', by removing in the second sentence the words 
``shall represent'' and adding in their place the words ``must 
represent''; and, in the third sentence, by removing the word ``shall'' 
and adding in its place the word ``must''; and, in paragraphs 
(f)(2)(iii) and (f)(2)(iv), by removing the word ``shall'' each place 
that it appears and adding the word ``must''.
    The revision reads as follows:


Sec.  141.61  Completion of entry and entry summary documentation.

    (a) Preparation--(1) Paper entry and entry summary documentation. 
Except when entry and entry summary documentation is filed with CBP 
electronically pursuant to the provisions of part 143 of this chapter:
    (i) Such documentation must be prepared on a typewriter (keyboard), 
or with ink, indelible pencil, or other permanent medium, and all 
copies must be legible;
    (ii) The entry summary must be signed by the importer (see Sec.  
101.1 of this chapter); and
    (iii) Entries, entry summaries, and accompanying documentation must 
be on the appropriate forms specified by the regulations and must 
clearly set forth all required information.
    (2) Electronic entry and entry summary documentation. Entry and 
entry summary documentation that is filed electronically pursuant to 
part 143 of this chapter must contain the information required by this 
section and must be certified (see Sec. Sec.  143.35 and 143.44 of this 
chapter) by the importer of record or his duly authorized agent, one of 
whom must be resident in the United States for purposes of receiving 
service of process, as being true and correct to the best of his 
knowledge. A certified electronic transmission is binding in the same 
manner and to the same extent as a signed document.
    (b) Marks and numbers previously provided. An importer may omit 
from entry summary (CBP Form 7501) the marks and numbers previously 
provided for packages released or withdrawn.
* * * * *
    8. In Sec.  141.63:
    a. Paragraphs (a)(2) and (b) are amended by removing the word 
``shall'' each place that it appears and adding the word ``will''; and
    b. Paragraph (c) is removed.
    9. In Sec.  141.68, paragraphs (a) through (h) are amended by 
removing the word ``shall'' each place that it appears and adding the 
word ``will'', and by removing the word ``Customs'' each place that it 
appears and adding the term ``CBP''.
    10. In Sec.  141.86:
    a. Paragraphs (a) through (e) are amended by removing the word 
``shall'' each place that it appears and adding the word ``must'';
    b. Paragraph (f) is amended by removing the word ``shall'' and 
adding in its place the word ``must'', and by removing the word 
``Customs'' and adding in its place the term ``CBP'';
    c. Paragraph (g) is amended by removing the word ``shall'' and 
adding in its place the word ``must'';
    d. Paragraph (h) is revised; and
    e. Paragraph (j) is amended by removing the word ``shall'' and 
adding in its place the word ``must''.
    The revisions read as follows:


Sec.  141.86  Contents of invoices and general requirements.

* * * * *
    (h) Numbering of invoices and pages. (1) Invoices. Except when 
electronic invoice data are transmitted to CBP under the provisions of 
part 143 of this chapter, when more than one invoice is included in the 
same entry, each invoice with its attachments must be numbered 
consecutively by the importer on the bottom of the face of each page, 
beginning with No. 1.
    (2) Pages. Except when electronic invoice data are transmitted to 
CBP under the provisions of part 143 of this chapter, if the invoice or 
invoices filed with one entry consist of more than two pages, each page 
must be numbered consecutively by the importer on the bottom of the 
face of each page, with the page numbering beginning with No. 1 for the 
first page of the first invoice and continuing in a single series of 
numbers through all the invoices and attachments included in one entry.
    (3) Both invoices and pages. Except when electronic invoice data 
are transmitted to CBP under the provisions of part 143 of this 
chapter, both the invoice number and the page number must be shown at 
the bottom of each page when applicable. For example, an entry covering 
one invoice of one page and a second invoice of two pages must be 
paginated as follows:
    Inv. 1, p. 1.
    Inv. 2, p. 2.
    Inv. 2, p. 3
* * * * *
    11. In Sec.  141.90:
    a. Paragraph (b) is revised;
    b. Paragraph (c) is amended by removing the word ``shall'' each 
place that it appears and adding the word ``must'' in its place and
    c. Paragraph (d) is revised.
    The revisions read as follows:


Sec.  141.90  Notation of tariff classification and value on invoice.

* * * * *
    (b) Classification and rate of duty. The importer or customs broker 
must include on the invoice or with the invoice data the appropriate 
subheading under the provisions of the Harmonized Tariff Schedule of 
the United States (19 U.S.C. 1202) and the rate of duty for the 
merchandise being entered. Except when invoice line data are linked to 
an entry summary line and transmitted to CBP electronically under the 
provisions of part 143, that information must be noted by the importer 
or customs broker

[[Page 13719]]

in the left-hand portion of the invoice, next to the articles to which 
they apply.
* * * * *
    (d) Importer's notations in blue or black ink. Except when invoice 
line data are linked to an entry summary line and transmitted to CBP 
electronically under the provisions of part 143, all notations made on 
the invoice by the importer or customs broker must be in blue or black 
ink.

PART 142--ENTRY PROCESS

    12. The authority citation for part 142 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1448, 1484, 1624.

    13. In Sec.  142.3:
    a. Paragraph (a) is amended by removing in the introductory 
sentence the word ``shall'' and adding in its place the word ``must''; 
by removing in paragraph (a)(1) the word ``Customs'' each place that it 
appears and adding the term ``CBP'' and by removing the word ``shall'' 
and adding in its place the word ``must''; by removing in paragraph 
(a)(5) the word ``Customs'' and adding in its place the term ``CBP''; 
by removing in paragraph (a)(6) the word ``shall'' and adding in its 
place the word ``must'' and by removing the term ``CF'' and adding in 
its place the words ``CBP Form'';
    b. Paragraph (b) is revised; and
    c. A new paragraph (d) is added.
    The revision and addition read as follows:


Sec.  142.3  Entry documentation required.

* * * * *
    (b) Entry summary filed at time of entry. When the entry summary is 
filed at time of entry in accordance with Sec.  142.12(a)(1) or Sec.  
142.13:
    (1) CBP Form 3461 or 7533 will not be required; and
    (2) CBP Form 7501 or CBP Form 3311 (as appropriate, see Sec.  
142.11) may serve as both the entry and the entry summary documentation 
if the additional documentation set forth in paragraphs (a)(2), (3), 
(4) and (5) of this section and Sec.  142.16(b) is filed.
* * * * *
    (d) Electronic Format. The entry documentation identified in this 
section may be submitted to CBP in either a paper or, where 
appropriate, an electronic format.

PART 143--SPECIAL ENTRY PROCEDURES

    14. The authority citation for part 143 is revised to read as 
follows:

    Authority: 19 U.S.C. 66, 1414, 1481, 1484, 1498, 1624, 1641.

    15. Section 143.0 is revised to read as follows:


Sec.  143.0  Scope.

    This part sets forth the requirements and procedures for 
participation in the Automated Broker Interface (ABI), for the 
clearance of imported merchandise under appraisement and informal 
entries, and under electronic entry filing and under Remote Location 
Filing (RLF). All requirements and procedures set forth in this part 
are in addition to the general requirements and procedures for all 
entries set forth in part 141 of this chapter. More specific 
requirements and procedures are set forth elsewhere in this chapter; 
for example, part 145 concerns importations by mail and part 10 
concerns merchandise conditionally free of duty or subject to a reduced 
rate.
    16. In Sec.  143.32, the introductory text and existing paragraphs 
(a), (b), (d) through (k), and (o) are revised to read as follows:


Sec.  143.32  Definitions.

    The following are definitions for purposes of subparts D and E of 
this part:
    (a) ACS. ``ACS'' means the Automated Commercial System and refers 
to CBP's integrated comprehensive tracking system for the acquisition, 
processing and distribution of import data.
    (b) ABI. ``ABI'' means the Automated Broker Interface and refers to 
a module of ACS that allows entry filers to transmit immediate 
delivery, entry and entry summary data electronically to CBP through 
ACS and to receive transmissions from ACS.
* * * * *
    (d) Broker. ``Broker'' means a customs broker licensed under part 
111 of this chapter.
    (e) Certification. ``Certification'' means the electronic 
equivalent of a signature for data transmitted through ABI. This 
electronic (facsimile) signature must be transmitted as part of the 
immediate delivery, entry or entry summary data. Such data are referred 
to as ``certified''.
    (f) Data. ``Data'' when used in conjunction with immediate 
delivery, entry and/or entry summary means the information required to 
be submitted with the immediate delivery, entry and/or entry summary, 
respectively, in accordance with the CATAIR (CBP Publication 552, 
Customs and Trade Automated Interface Requirements) and/or CBP 
Headquarters directives. It does not mean the actual paper documents, 
but includes all of the information required to be in such documents.
    (g) Documentation. ``Documentation'' when used in conjunction with 
immediate delivery, entry and/or entry summary means the documents set 
forth in Sec.  142.3 of this chapter, required to be submitted as part 
of an application for immediate delivery, entry and/or entry summary, 
but does not include the CBP Forms 7501, 3461 (or alternative forms).
    (h) EDIFACT. ``EDIFACT'' means the Electronic Data Interchange for 
Administration, Commerce and Transport that provides an electronic 
capability to transmit detailed CBP Forms 7501 and 3461, and invoice 
data.
    (i) Electronic entry. ``Electronic entry'' means the electronic 
transmission to CBP of:
    (1) Entry information required for the entry of merchandise; and
    (2) Entry summary information required for the classification and 
appraisement of the merchandise, the verification of statistical 
information, and the determination of compliance with applicable law.
    (j) Electronic immediate delivery. ``Electronic immediate 
delivery'' means the electronic transmission of CBP Forms 3461 or 3461 
alternate (CBP Form 3461 ALT) data utilizing ACS in order to obtain the 
release of goods under immediate delivery.
    (k) Electronic Invoice Program (EIP). ``EIP'' refers to modules of 
the Automated Broker Interface (ABI) that allow entry filers to 
transmit detailed invoice data and includes Automated Invoice Interface 
(AII) and any other electronic invoice authorized by CBP.
* * * * *
    (o) Selectivity criteria. ``Selectivity criteria'' means the 
categories of information that guide CBP's judgment in evaluating and 
assessing the risk of an immediate delivery, entry, or entry summary 
transaction. * * *
* * * * *
    17. Part 143 is amended by adding a new subpart E, consisting of 
Sec. Sec.  143.41 through 143.45, to read as follows:
Subpart E--Remote Location Filing
Sec.
143.41 Applicability.
143.42 Definitions.
143.43 RLF eligibility criteria.
143.44 RLF procedure.
143.45 Filing of additional entry information.

Subpart E--Remote Location Filing


Sec.  143.41  Applicability.

    This subpart sets forth the general requirements and procedures for 
Remote Location Filing (RLF). RLF entries are subject to the 
documentation, document retention and document retrieval requirements 
of this chapter as

[[Page 13720]]

well as the general entry requirements of parts 141, 142 and 143. 
Participation in the RLF program is voluntary and at the option of the 
filer.


Sec.  143.42  Definitions.

    The following definitions, in addition to the definitions set forth 
in Sec.  143.32 of this part, apply for purposes of this subpart E:
    (a) Remote Location Filing (RLF)--``RLF'' is an elective method of 
making entry by which a customs broker with a national permit 
electronically transmits all data information associated with an entry 
that CBP can process in a completely electronic data interchange system 
to a RLF-operational CBP location from a remote location other than 
where the goods are being entered. (Importers filing on their own 
behalf may file electronically in any port, subject to ABI filing 
requirements.)
    (b) RLF-operational CBP location--``RLF-operational CBP location'' 
means a CBP location within the customs territory of the United States 
that is staffed with CBP personnel who have been trained in RLF 
procedures and who have operational experience with the Electronic 
Invoice Program (EIP). EIP is defined in Sec.  143.32 of this chapter. 
A list of all RLF-operational locations is available for viewing on the 
CBP Internet Web site located at http://www.cbp.gov (type in the search 
term ``Remote Location Filing'').


Sec.  143.43  RLF eligibility criteria.

    (a) Automation criteria. To be eligible for RLF, a licensed customs 
broker must be:
    (1) Operational on the ABI (see 19 CFR part 143, subpart A);
    (2) Operational on the EIP prior to applying for RLF; and
    (3) Operational on the ACH (or any other CBP-approved method of 
electronic payment), for purposes of directing the electronic payment 
of duties, taxes and fees (see 19 CFR 24.25), 30 days before 
transmitting a RLF entry.
    (b) Broker must have national permit. To be eligible for RLF, a 
licensed customs broker must hold a valid national permit (see 19 CFR 
111.19(f)).
    (c) Continuous bond. A RLF entry must be secured with a continuous 
bond.


Sec.  143.44  RLF procedure.

    (a) Electronic transmission of invoice data. For RLF transactions, 
a customs broker must transmit electronically, using EIP, any invoice 
data required by CBP.
    (b) Electronic transmission of payment. For RLF transactions, a 
customs broker must direct the electronic payment of duties, taxes and 
fees through the ACH (see 19 CFR 24.25) or any other method of 
electronic payment authorized by CBP.
    (c) Automation requirements. Only those entries and entry summaries 
that CBP processes completely in an electronic data interchange system 
will be accepted for RLF.
    (d) Combined electronic entry and entry summary. For RLF 
transactions, a customs broker must submit to CBP, through ABI or any 
other electronic interface authorized by CBP, a complete and error-free 
electronic data transmission constituting the entry summary that serves 
as both the entry and entry summary.
    (e) No line release or immediate delivery entries permitted under 
RLF. Line release (see 19 CFR, Part 142, Subpart D) or immediate 
delivery procedures may not be combined with RLF transactions.
    (f) Data acceptance and release of merchandise. Data that are 
complete and error free will be accepted by CBP. If electronic invoice 
or additional electronic documentation is required, CBP will so notify 
the RLF filer. If no documentation is required to be filed, CBP will so 
notify the RLF filer. If CBP accepts the RLF entry (including invoice 
data) under Sec. Sec.  143.34-143.36 of this part, the RLF entry will 
be deemed to satisfy all filing requirements under this part and the 
merchandise may be released.
    (g) Liquidation. The entry summary will be scheduled for 
liquidation once payment is made under statement processing (see 19 CFR 
24.25).


Sec.  143.45  Filing of additional entry information.

    When filing from a remote location, a RLF filer must electronically 
file all additional information required by CBP to be presented with 
the entry and entry summary information (including facsimile 
transmissions) that CBP can accept electronically. If CBP cannot accept 
additional information electronically, the RLF filer must file the 
additional information in a paper format at the CBP port of entry where 
the goods arrived.

Deborah J. Spero,
Acting Commissioner, Bureau of Customs and Border Protection.
    Approved: March 15, 2007.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 07-1330 Filed 3-22-07; 8:45 am]
BILLING CODE 9111-14-P