[Federal Register Volume 72, Number 201 (Thursday, October 18, 2007)]
[Notices]
[Pages 59105-59108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20553]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Announcement of National Customs Automation Program Test 
Concerning Automated Commercial Environment (ACE) Entry Summary, 
Accounts and Revenue Capabilities

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: This document announces Custom and Border Protection's (CBP's)

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plan to conduct a National Customs Automation Program (NCAP) test 
concerning Automated Commercial Environment (ACE) Entry Summary, 
Accounts and Revenue capabilities. These new capabilities will provide 
enhanced account management functions for ACE Portal Accounts. This 
notice also announces that the types of Portal Accounts in ACE have 
been expanded. This notice invites public comment concerning any aspect 
of the planned test, describes the eligibility, procedural and 
documentation requirements for voluntary participation in the test, and 
outlines the development and evaluation methodology to be used in the 
test.

DATES: The effective date of this notice is October 18, 2007. The test 
will continue until concluded by way of announcement in the Federal 
Register. Comments concerning this notice and any aspect of the 
announced test may be submitted during the test period to the address 
set forth below.

ADDRESSES: Comments concerning this notice should be submitted via e-
mail to [email protected].

FOR FURTHER INFORMATION CONTACT: Operational aspects for importers and 
brokers: Ruthanne Kenneally at (202) 863-6064. Operational aspects for 
carriers: James Swanson at [email protected]. Systems or 
automation aspects: ACE HELPDESK at [email protected].

SUPPLEMENTARY INFORMATION:

Background

I. ACE Test Programs

A. ACE Portal Accounts

    On May 1, 2002, the former U.S. Customs Service, now U.S. Customs 
and Border Protection (CBP), published a General Notice in the Federal 
Register (67 FR 21800) announcing a plan to conduct a National Customs 
Automation Program (NCAP) test of the first phase of the Automated 
Commercial Environment (ACE). The test was described as the first step 
toward the full electronic processing of commercial importations with a 
focus on defining and establishing an importer's account structure. The 
General Notice announced that importers and authorized parties would be 
allowed to access their customs data via a Web-based Account Portal. 
The notice set forth eligibility criteria for companies interested in 
establishing Account Portals accessible through ACE. Subsequent General 
Notices revised the eligibility criteria (see General Notice published 
in the Federal Register on February 1, 2005 (67 FR 5199)) and expanded 
the universe of eligible participants in the ACE test and the types of 
ACE Portal Accounts.
    On February 4, 2004, CBP published two General Notices in the 
Federal Register that established ACE Truck Carrier Accounts and opened 
the application period for authorized importers and their designated 
brokers to participate in the NCAP test to implement the Periodic 
Monthly Statement (PMS) process (see 69 FR 5360 and 69 FR 5362, 
respectively). Brokers were invited to establish Broker Accounts in ACE 
in order to participate in the NCAP test to implement PMS. In both of 
the February 4, 2004 General Notices, CBP advised participants they 
could designate only one person as the Account Owner for the company's 
ACE Portal account. The Account Owner was identified as the party 
responsible for safeguarding the company's ACE Portal Account 
information, controlling all disclosures of that information to 
authorized persons, authorizing user access to the ACE Portal Account 
information, and ensuring the strict control of access by authorized 
persons to the ACE Portal information.
    On September 8, 2004, CBP published a General Notice in the Federal 
Register (69 FR 54302) inviting customs brokers to participate in the 
ACE Portal test generally and informing interested parties that once 
they had been notified by CBP that their request to participate in the 
ACE Portal test had been accepted, they would be asked to sign and 
submit a Terms and Conditions document. CBP subsequently contacted 
those participants and asked them to also sign and submit an ACE Power 
of Attorney form and an Additional Account/Account Owner Information 
form.

B. Terms and Conditions for Access to the ACE Portal

    On May 16, 2007, CBP published a General Notice in the Federal 
Register (72 FR 27632) announcing a revision of the terms and 
conditions that must be followed as a condition for access to the ACE 
Portal. These terms and conditions supersede and replace the Terms and 
Conditions document previously signed and submitted to CBP by ACE 
Portal Trade Account Owners. The notice specified that no further 
action would be required by ACE Portal Trade Account Owners for those 
ACE Portal Accounts already established with CBP with the proper 
Account Owner listed. The principal changes to the ACE Terms and 
Conditions included a revised definition of ``Account Owner'' to permit 
either an individual or a legal entity to serve in this capacity, new 
requirements relating to providing notice to CBP when there has been a 
material change in the status of the Account and/or Trade Account 
Owner, and explanatory provisions as to how the information from a 
particular account may be accessed through the ACE Portal when that 
account is transferred to a new owner.

C. ACE Non-Portal Accounts

    CBP has also permitted certain parties to participate in specified 
ACE tests without establishing ACE Portal Accounts (``Non-Portal 
Accounts''). On October 24, 2005, CBP published a General Notice in the 
Federal Register (70 FR 61466) announcing that importers could 
establish ACE non-portal accounts and participate in the PMS test under 
certain conditions. On March 29, 2006, CBP published another General 
Notice in the Federal Register (71 FR 15756) announcing that truck 
carriers who do not have ACE Truck Carrier Accounts may use third 
parties to transmit truck manifest information on their behalf 
electronically in the ACE Truck Manifest system via Electronic Data 
Interface (EDI) messaging.

II. Test Concerning New ACE Entry Summary, Accounts and Revenue (ESAR) 
Capabilities

    This document announces CBP's plan to conduct a new test concerning 
ACE Entry Summary, Accounts and Revenue (ESAR) capabilities which will 
provide enhanced account management functions for ACE Portal Accounts 
and expand the universe of ACE account types. Features of these new ACE 
functions, as well as the eligibility, procedural and documentation 
requirements for voluntary participation in the test, are described 
below.

A. ACE Portal Account Enhancements

    ACE is now the lead system for CBP-required master data elements 
(e.g., company name, address, point of contact) as well as related 
reference files (e.g., country code, port code, manufacturer ID, gold 
currency exchange rate and conversion calculator). See ACE Systems of 
Record Notice (71 FR 3109), published in the Federal Register on 
January 19, 2006. This means that the creation and maintenance of 
specified master data elements will originate in ACE and will be 
distributed to other CBP systems such as the Automated Commercial 
System (ACS).

B. Importer Portal Accounts

    Importer Portal Accounts will have the ability to create and 
maintain specified importer data via the ACE

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Portal. Filers will also have the ability to create a new CBP Form 5106 
(Importer ID Input Record) via the ACE Portal or the Automated Broker 
Interface (ABI). For the present time, and until CBP's e-bond 
functionality is deployed, importers who have a continuous bond on file 
who want to update their CBP Form 5106 information will need to submit 
the CBP Form 5106, along with the paper bond rider, to the CBP Revenue 
Division in Indianapolis. Additionally, importers and filers will have 
the ability to view applicable Participating Government Agency (PGA) 
licenses, permits and certificates via the ACE Portal. Eligibility 
requirements for Importer Portal Accounts remain unchanged. See 67 FR 
21800, May 1, 2002.

C. Broker Portal Accounts

    Broker Portal Accounts will have access to the following 
functionalities through the ACE Portal: Maintenance of organizational 
demographic data (e.g., addresses, points of contact, etc.); license 
and permit qualifiers; data on managing officials; employee lists; 
relationships to individual licensed brokers; points of contact and 
address information (at filer code level, for each local broker permit 
and each port covered by the local permit, and for the national broker 
permit). Broker Portal Accounts will also be able to generate the 
following reports: Local and national broker permits on an annual 
basis; broker employee lists; open broker permits; and delinquent 
permit user fees by port or broker. Broker Portal Accounts with a filer 
code may be used to create the CBP Form 5106 via the ACE Portal and can 
view applicable PGA licenses, permits and certificates. Eligibility 
requirements for Broker Portal Accounts remain unchanged. See 69 FR 
5362, February 4, 2004.

D. Truck Carrier Portal Accounts

    In addition to its current capabilities, a Truck Carrier Portal 
Account will now be able to view any applicable PGA licenses, permits 
and certificates and have access to the following functionalities 
through the ACE Portal: Maintenance of addresses and points of contact; 
and pre-registered truck conveyance, equipment, shipper, and consignee 
data. A Truck Carrier Portal Account will also be able to create and 
maintain driver accounts and search for and correlate existing driver 
accounts to their Carrier Account (see also Section III.D of this 
document). Eligibility requirements for Truck Carrier Portal Accounts 
remain unchanged. See 69 FR 5360, February 4, 2004.

III. Expanded ACE Portal Account Types

    The ACE Portal will now provide for the following additional Portal 
Account types: Carriers (all modes: air, rail, sea); Cartman; 
Lighterman; Driver/Crew; Facility Operator; Filer; Foreign Trade Zone 
(FTZ) Operator; Service Provider; and Surety. To be eligible to 
establish an ACE Portal Account, interested parties must be able to 
connect to the Internet.

A. Application Process

    The term ``application,'' as used throughout this notice, is 
defined as a statement of intent from an interested party to establish 
an ACE Portal Account. Anyone wishing to establish an ACE Portal 
Account with access to the ACE Portal must submit an application to CBP 
(available at http://www.CBP.gov) either via U.S. regular mail to the 
address noted on http://www.CBP.gov or via e-mail to 
[email protected]. In addition to the eligibility requirements 
described in this Notice, the application must include the information 
set forth under the applicable business category, as well as the name, 
address, and e-mail address of a point of contact to receive further 
information. Anyone providing incomplete information, or otherwise not 
meeting participation requirements, will be notified and given the 
opportunity to resubmit their application. Upon receipt of a complete 
application, CBP will contact the applicant with regard to any 
additional information that may be required. Participants will be 
required to acknowledge a continuing obligation to provide CBP with any 
updates or changes to the information originally submitted.
    Each participant must designate an individual or an entity as the 
ACE Portal Trade Account Owner on the application. The Trade Account 
Owner will be responsible for the information entered into the 
participant's ACE Portal Account. The ACE Portal Trade Account Owner 
will be responsible for safeguarding the ACE Portal account 
information, controlling all disclosures of that information to 
authorized persons, authorizing user access to the ACE Portal account, 
and ensuring that access by authorized persons to the ACE Portal 
information is strictly controlled (see Terms and Conditions of Portal 
Access, 72 FR 27632, published May 16, 2007).
    All data submitted and entered into the ACE Portal is subject to 
the Trade Secrets Act (18 U.S.C. 1905) and is considered confidential, 
except to the extent as otherwise provided by law (see 19 U.S.C. 
1431(c)).
    As stated in previous notices, participation in this or any of the 
previous ACE tests is not confidential and upon a written Freedom of 
Information Act request , a name(s) of an approved participant(s) will 
be disclosed by CBP in accordance with 5 U.S.C. 552.

B. Carriers (All Modes: Air, Rail, and Sea)

    To establish a Carrier (all modes: air, rail and sea) Portal 
Account, the following information is required:
    a. SCAC (Standard Carrier Alpha Code), International Air Transport 
Association (IATA), or International Civil Aviation Organization (ICAO) 
designator (as applicable); and
    b. Method of transportation (i.e., air, rail, vessel).
    Initially, Carriers (all modes: air, rail and sea) who establish 
ACE Portal Accounts will only have access to the static data and basic 
account profile information necessary to establish their portal 
account. Any new ACE Portal Account functionalities that may be made 
available to Carriers on a test basis will be announced in a future 
General Notice published in the Federal Register. At that time, CBP 
will deploy an initial group of participants for participation in the 
NCAP test.
    It is anticipated that Carrier Portal Accounts will eventually 
derive the following benefits:
     Access to operational data through the ACE Portal;
     Electronic interaction with CBP;
     Receipt of status messages concerning Account 
transactions;
     Access to integrated Account data from multiple system 
sources;
     Ability to manage and disseminate information in an 
efficient and secure manner; and
     Ability to electronically transmit a manifest and obtain 
release of its cargo, crew, conveyances, and equipment via the ACE 
Portal or Electronic Data Interchange (EDI) messaging.

C. Cartman or Lighterman Portal Account

    To establish a Cartman or Lighterman Portal Account, the following 
information is required:
    a. Employer Identification Number (EIN) or Social Security Number 
(SSN);
    b. CBP-issued license number; and
    c. CBP-issued license number.
    Once the Portal Account is established, Cartmen or Lightermen will 
be able to maintain addresses, points of contact, employee information 
and manage its official data via the Portal.

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D. Driver/Crew Portal Accounts

    Drivers/Crew who are interested in having their information entered 
into ACE are encouraged to contact: (1) A truck carrier with EDI or an 
ACE Portal Account; or (2) a third party provider (this includes 
importers, brokers, and service centers) with an ACE Portal Account.
    Although Drivers/Crew are not required to establish an ACE Portal 
Account to transact business with CBP, Drivers/Crew who elect to have 
their own ACE Portal Account with a Driver/Crew view will be required 
to submit the following information:
    a. Name;
    b. Date of Birth; and
    c. Commercial Driver's License (CDL).

E. Bonded Warehouse, Container Freight Station (CFS), and Container 
Examination Station (CES) Facility Operator Portal Accounts

    To establish a Bonded Warehouse, Container Freight Station (CFS), 
or Container Examination Station (CES) Facility Operator Portal 
Account, the following information is required:
    a. Employer Identification Number (EIN) or Social Security Number 
(SSN);
    b. Facilities Information and Resources Management System (FIRMS) 
code; and
    c. Bond number.
    Once the Portal Account is established, Facility Operators will be 
able to maintain Facility Operator addresses, points of contact, 
facility points of contact, and employee lists at the facility level, 
as well as store and view pertinent documents pertaining to the 
facility via the ACE Portal.

F. Filer Portal Accounts

    To establish a Filer Portal Account, the Filer must provide their 
Filer Code to CBP. Once the Filer Portal Account is established, Filers 
will be able to maintain addresses and points of contact (at the filer 
code level and port level).

G. Foreign Trade Zone (FTZ) Operator

    To establish a FTZ Operator Portal Account, the following 
information is required:
    a. Employer Identification Number (EIN) or Social Security Number 
(SSN);
    b. Facilities Information and Resources Management System (FIRMS) 
code;
    c. Zone Number;
    d. Sub-zone Number (if applicable);
    e. Site Number; and
    f. Bond Number.
    Once the Portal Account is established, FTZ Operators will have the 
ability to maintain FTZ Operator addresses, points of contact, and 
certifications pertinent to the site. FTZ Operator Portal Account 
Owners will also have the ability to view all sites operated by the FTZ 
Operator, as well as view and store documents pertinent to the site.

H. Service Provider Portal Account

    To establish a Service Provider Portal Account, the following 
information is required:
    a. Software Vendor: Filer Code and/or SCAC;
    b. Service Bureau/Center: Filer code and/or SCAC;
    c. Port Authority: SCAC;
    d. Preparer: SCAC; and
    e. Surety agent: Filer code.
    Once the Service Provider Portal Account is established, Service 
Providers will be able to maintain addresses and points of contact via 
the ACE Portal.

I. Surety

    To establish a Surety Portal Account, the following information is 
required:
    a. Surety Code; and
    b. Employer Identification Number (EIN).
    Once the Portal Account is established, sureties will be able to 
access the following functionality via the Portal: maintain addresses; 
points of contact; and Corporate Surety Power of Attorney data; and 
view Continuous bond data.

IV. Suspension of Regulations

    During the testing of the Entry Summary, Accounts and Revenue 
(ESAR) functionality, CBP is suspending provisions in part 24 of title 
19 of the Code of Federal Regulations (19 CFR part 24) relating to the 
filing of the CBP Form 5106, as well as provisions in 19 CFR part 111 
relating to current procedures that are done via paper by customs 
brokers and that will now be done electronically. Absent any alternate 
procedures set forth above in the description of the test, the current 
regulations apply.

V. Misconduct Under the Test

    An ACE test participant may be subject to civil and criminal 
penalties, administrative sanctions, liquidated damages, and/or 
suspension from this test for any of the following:
     Failure to follow the terms and conditions of this test.
     Failure to exercise reasonable care in the execution of 
participant obligations.
     Failure to abide by applicable laws and regulations.
     Failure to deposit duties or fees in a timely manner.
     Misuse of the ACE Portal.
     Engagement in any unauthorized disclosure or access to the 
ACE Portal.
     Engagement in any activity which interferes with the 
successful evaluation of the new technology.
    Suspensions for misconduct will be administered by the Executive 
Director, Commercial Targeting and Enforcement, Office of International 
Trade, CBP Headquarters. A notice proposing suspension will be provided 
in writing to the participant. Such notice will apprise the participant 
of the facts or conduct warranting suspension and will inform the 
participant of the date that the suspension will begin.
    Any decision proposing suspension of a participant may be appealed 
in writing to the Assistant Commissioner, Office of International 
Trade, within 15 calendar days of the notification date. Should the 
participant appeal the notice of proposed suspension, the participant 
must address the facts or conduct charges contained in the notice and 
state how compliance will be achieved. In cases of non-payment, late 
payment, willful misconduct or where public health interests or safety 
is concerned, the suspension may be effective immediately.

VI. Test Evaluation Criteria

    To ensure adequate feedback, participants are required to 
participate in an evaluation of this test. CBP also invites all 
interested parties to comment on the design, implementation and conduct 
of the test at any time during the test period. CBP will publish the 
final results in the Federal Register and the Customs Bulletin as 
required by 19 CFR 101.9(b).
    The following evaluation methods and criteria have been suggested:
    1. Baseline measurements to be established through data analysis.
    2. Questionnaires from both trade participants and CBP addressing 
such issues as:
     Workload impact (workload shifts/volume, cycle times, 
etc.).
     Cost savings (staff, interest, reduction in mailing costs, 
etc.).
     Policy and procedure accommodation.
     Trade compliance impact.
     Problem resolution.
     System efficiency.
     Operational efficiency.
     Other issues identified by the participant group.

    Dated: October 15, 2007.
Daniel Baldwin,
Assistant Commissioner, Office of International Trade .
 [FR Doc. E7-20553 Filed 10-17-07; 8:45 am]
BILLING CODE 9111-14-P