[Federal Register Volume 73, Number 174 (Monday, September 8, 2008)]
[Notices]
[Pages 52062-52063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-20765]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Announcement of Termination of National Customs Automation 
Program (NCAP) Test: Semi-Monthly Statement Processing Prototype

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

ACTION: General notice.

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SUMMARY: This document announces U.S. Customs and Border Protection's 
decision to formally terminate the test of the semi-monthly filing and 
statement processing prototype program that was initiated in April 
1998, as part of the National Customs Automation Program. The test of 
the semi-monthly filing program was conceived as a transitional 
procedure from the Automated Commercial System to the full electronic 
processing of commercial importations in the Automated Commercial 
Environment, which allows account holders to pay duties, taxes, fees, 
and other payments owed using a periodic statement cycle. The Automated 
Commercial Environment portal system for Periodic Monthly Payment 
statement processing has been deployed nationwide thereby ending the 
need for the semi-monthly filing program.

DATES: Effective Date: September 8, 2008.

FOR FURTHER INFORMATION CONTACT: Ms. Sharon Taylor, Program Officer, 
Revenue Policy and Programs Branch, ADCVD/Revenue Division, Office of 
International Trade, U.S. Customs and Border Protection at (202) 863-
6527 or via e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

Background

    Title VI of the North American Free Trade Agreement Implementation 
Act, Public Law 103-182, 107 Stat. 2057 (December 8, 1993), contains 
provisions pertaining to Customs Modernization (107 Stat. 2170). 
Subtitle B of Title VI establishes the National Customs Automation 
Program (NCAP)--an automated and electronic system for the processing 
of commercial importations. Pursuant to the provisions of Subtitle B, 
U.S. Customs and Border Protection (``CBP'') developed a new commercial 
processing system, the Automated Commercial Environment (``ACE''), 
which is phasing out the Automated Commercial System (``ACS'').
    As an interim measure, while the ACS was still in use for the 
filing of duties, taxes, fees and other payments, the former Customs 
Service (now CBP) published a General Notice entitled ``Announcement of 
National Customs Automation Program Test: Semi-Monthly Statement 
Processing Prototype'' in the Federal Register (63 FR 15259) on March 
30, 1998, pursuant to section 101.9(b) of CBP regulations (19 CFR 
101.9(b)), which implemented the NCAP testing procedures. The prototype 
permitted importers to file entry summaries and to pay their duties, 
taxes, and fees within seven days of the end of a fifteen or sixteen 
day semi-monthly period for cargo released during that period. Pursuant 
to section 1505 of the United States Code (19 U.S.C. 1505), the 
interest rate was calculated using the rate in effect seven days after 
the fifteen or sixteen day semi-monthly period. It provided for 
suspension of a participant for misconduct and an appeal process. Only 
six importers elected to participate in the program. The notice 
originally instituted the program at only 14 ports of entry. The notice 
stated that the semi-monthly filing and statement processing prototype 
would be implemented over an 18-month period and would end when the 
periodic payment/statement feature of ACE was available.
    However, ACE was not fully implemented in 2002 and the testing of 
the semi-monthly processing prototype was incomplete. The reasons for 
these developments were many, namely, budgeting difficulties, the 
occurrence of other national events, which occasioned a shifting of CBP 
priorities, the continuing reorganization of Customs, etc. Furthermore, 
evaluations of the prototype conducted with participants showed a 
concern that the prototype testing should be expanded to additional 
ports so that the national

[[Page 52063]]

effect of this program could be fully gauged. The test was not opened 
to any new participants, but the original six participants continued in 
the program. As the test program continued, a series of notices 
announced changes or modifications to the test program in the following 
notices published in the Federal Register: 67 FR 39098 (June 6, 2002); 
69 FR 5362 (February 4, 2004); 69 FR 54302 (September 8, 2004); 70 FR 
5199 (February 1, 2005); 70 FR 45736 (August 8, 2005); 70 FR 55623 
(September 22, 2005) and 71 FR 3315 (January 20, 2006). The development 
of this NCAP test is set forth in these prior notices.

Termination of National Customs Automation Program Test on the Semi-
Monthly Statement Processing Prototype

    The periodic monthly payment statement ACE-based process, 
referenced above, has now exceeded over two billion dollars in revenues 
on the periodic deposit of estimated duties and fees. All of the six 
original participants in the ``Semi-Monthly Statement Processing 
Prototype'' have terminated their involvement in the program in favor 
of participation in the ACE-based process. The Automated Commercial 
Environment portal system for Periodic Monthly Payment statement 
processing has been deployed nationwide thereby ending the need for the 
semi-monthly filing program. Therefore, this notice formally announces 
the termination of the ``Semi-Monthly Statement Processing Prototype'' 
under the NCAP.

    Dated: September 3, 2008.
Jason P. Ahern,
Acting Commissioner, U. S. Customs and Border Protection.
[FR Doc. E8-20765 Filed 9-5-08; 8:45 am]
BILLING CODE 9111-14-P