[Federal Register Volume 74, Number 249 (Wednesday, December 30, 2009)]
[Notices]
[Pages 69129-69132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-31006]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


National Customs Automation Program Test Concerning Automated 
Commercial Environment (ACE) Entry Summary, Accounts and Revenue (ESAR 
III) Capabilities Relating to the Filing and Processing of AD/CVD 
Entries and Case Management

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) 
plan to conduct a National Customs Automation Program (NCAP) test 
concerning new Automated Commercial Environment (ACE) Entry Summary, 
Accounts and Revenue (ESAR III) capabilities. These new capabilities 
include functionalities specific to the filing and processing of anti-
dumping and countervailing duty (AD/CVD) entries and case management. 
This notice announces the test's commencement, describes the 
eligibility, procedural and documentation requirements for voluntary 
participation in the test, outlines CBP's development and evaluation 
methodology, and invites public comment concerning any aspect of the 
test.

DATES: The ESAR III test will commence no earlier than January 17, 
2010, and will continue until concluded by way of announcement in the 
Federal Register. Comments concerning this notice and any aspect of the 
test may be submitted at any time during the test period to the address 
set forth below.

ADDRESSES: Comments concerning this notice should be submitted via e-
mail to Joe Palmer at [email protected]. Please indicate ``ESAR III 
(AD/CVD Entry Summary Processing/Case Mgt Notice)'' in the subject line 
of your e-mail.

FOR FURTHER INFORMATION CONTACT: For policy-related questions, contact 
Christine Furgason at [email protected]. For technical 
questions related to ABI transmissions, contact your assigned client 
representative. Interested parties without an assigned client 
representative should direct their questions to the Client 
Representative Branch at (703) 650-3500.

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 
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 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 that 
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

[[Page 69130]]

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 superseded and replaced 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.
    On July 7, 2008, CBP published a General Notice in the Federal 
Register (73 FR 38464) which revised the terms and conditions set forth 
in the May 16, 2007, General Notice regarding the period of Portal 
inactivity which will result in termination of access to the ACE 
Portal. The July 7, 2008, General Notice provided that if 45 
consecutive days elapse without an Account Owner, Proxy Account Owner, 
or Account User accessing the ACE Portal, access to the Portal will be 
terminated. The time period for allowable Portal inactivity previously 
was 90 days.

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

D. ACE Entry Summary, Accounts and Revenue (ESAR I) Capabilities

    On October 18, 2007, CBP published a General Notice in the Federal 
Register (72 FR 59105) announcing CBP's plan to conduct a new test 
concerning ACE Entry Summary, Accounts and Revenue (ESAR) capabilities, 
providing enhanced account management functions for ACE Portal Accounts 
and expanding the universe of ACE account types. This General Notice is 
commonly referred to as ESAR I. As stated in that notice, ACE is now 
the lead system for CBP-required master data elements (e.g., company 
name, address, and point of contact) as well as related reference files 
(e.g., country code, port code, manufacturer ID, and gold currency 
exchange rate and conversion calculator). See ACE Systems of Record 
Notice, published in the Federal Register on January 19, 2006 (71 FR 
3109). 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).
    In addition to announcing that importer Portal Accounts are capable 
of creating and maintaining specified importer data via the ACE Portal, 
ESAR I stated that filers have the ability to create a new CBP Form 
5106 (Importer ID Input Record) via the ACE Portal or the Automated 
Broker Interface (ABI), and view applicable Participating Government 
Agency (PGA) licenses, permits and certificates via the ACE Portal. 
Through this notice, Broker Portal Accounts were provided the 
capability through the ACE Portal of maintaining organizational 
demographic data (e.g., addresses, points of contact, etc.), license 
and permit qualifiers, data on managing officials, employee lists, 
information on 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). Truck Carrier Portal Accounts were provided 
the capability through the ACE Portal to view any applicable PGA 
licenses, permits and certificates, and to maintain through the ACE 
Portal addresses and points of contact and pre-registered truck 
conveyance information, including equipment, shipper, and consignee 
data. Truck Carrier Portal Accounts were also provided with the ability 
to create and maintain driver accounts and search for and correlate 
existing driver accounts to their Carrier Account. Finally, ESAR I also 
announced the expansion of Portal Account Types to include: carriers 
(all modes: air, rail, sea); cartman; lighterman; driver/crew; facility 
operator; filer; foreign trade zone (FTZ) operator; service provider; 
and surety.

E. ACE Entry, Summary, Accounts and Revenue (ESAR II) Capabilities

    On August 26, 2008, CBP published a General Notice in the Federal 
Register (73 FR 50337) announcing the agency's plan to conduct a new 
test concerning ACE Entry Summary, Accounts, and Revenue (ESAR II) 
functionality that would provide new Portal and EDI capabilities 
specific to entry summary filing and processing of consumption and 
informal entries. The notice stated that functionality will include ABI 
Census Warning Overrides and issuance of CBP requests for information 
and notices of action through the ACE Portal, and that new 
functionality will enhance Portal Account Management and allow for ACE 
Secure Data Portal reporting. The notice indicated that this release of 
ESAR II initially would be limited only to formal entries, commonly 
referred to in the Automated Commercial System (ACS) as type 01 
entries, and informal entries, commonly referred to in ACS as type 11 
entries. The notice listed the ports where the test was expected to be 
deployed and requested that interested ABI participants wishing to 
submit type 01 and 11 entries for this test provide to CBP, within 60 
days of the date of publication of that notice, the number of expected 
ACE entry summaries that will be submitted to the listed ports. 
Importer and broker volunteers interested in benefiting from Portal 
functionality available in this test were also advised that they must 
have an ACE Portal Account. ABI volunteers were advised that for this 
test, they must have the ability to file entries on a statement (i.e., 
no non-statement; single pay entry summaries would be allowed) and must 
use a software package that has completed ABI certification testing for 
ACE.
    CBP subsequently published a General Notice in the Federal Register 
on March 6, 2009 (74 FR 9826) announcing the port-by-port phased 
deployment strategy for the ESAR II functionality. In that notice, CBP 
invited any additional interested ABI applicants meeting the 
eligibility criteria specified in the August 26, 2008, notice to 
participate in the ESAR II test. Eligible

[[Page 69131]]

ABI trade volunteers interested in submitting type 01 and 11 entries 
for the ESAR test were advised to contact their assigned client 
representative directly. Similarly, interested software developers were 
also advised to contact their client representative with regard to 
their interest in ABI certification testing for ACE. To date, the ESAR 
II functionality is available at all ports, nationwide.

II. Test Concerning New ACE Entry Summary, Accounts and Revenue (ESAR 
III) Capabilities Relating to the Filing and Processing of AD/CVD 
Entries and Case Management

A. In General

    This document announces CBP's plan to conduct a test concerning new 
ACE Entry Summary, Accounts and Revenue (ESAR III) functionalities that 
provide new Portal and EDI capabilities specific to the filing and 
processing of anti-dumping and countervailing duty (AD/CVD) entries 
(commonly referred to in ACS as type 03 entries) and AD/CVD case 
management. Functionality for other entry types will be implemented as 
it becomes available and will be announced via subsequent publication 
in the Federal Register. It is noted that type 03 ACE entry summaries 
and AD/CVD case data that are processed under this test are covered by 
the ACE Systems of Record Notice (DHS/CBP-001), published in the 
Federal Register on January 19, 2006 (71 FR 3109). For all others who 
are not participating in the ESAR III, data is processed under ACS 
Systems of Record Notice (DHS/CBP-015) published in the Federal 
Register on December 19, 2008 (73 FR 77759).
    The procedures and criteria related to participation in the prior 
ACE tests, referenced above in Section I of this document, remain in 
effect unless otherwise explicitly changed by this or subsequent 
General Notices published in the Federal Register.

B. Portal Capability

    AD/CVD case management will include the capability to search, 
display and print both AD/CVD case information and AD/CVD messages. The 
case reference file will provide the ability to record and track the 
life cycle of an AD/CVD case and will contain important case 
information such as the duty deposit rates, entry summary suspension 
status, bond/cash status, administrative review information and events 
related to the case history (e.g., ``initiation,'' ``preliminary,'' 
``Final,'' ``Order,'' ``Terminated''). The AD/CVD messages now resident 
in ACE will also house additional information in one location such as 
additional message header data elements (e.g., ``message status,'' 
``Federal Register Notice cite,'' ``Federal Register Notice publication 
date,'' ``court order number'') and the ability to run searches for all 
types of messages related to a particular case via the Portal.
    Importers with an ACE Portal Account who have selected ``portal'' 
as their mode of communication will now also be able to respond to CBP 
Forms 28, 29 and 4647 regarding AD/CVD entries via the ACE Portal as 
well as all entry summaries (that is, both ACS and ACE entry 
summaries).
    Brokers with an ACE Portal Account will now also be able to create 
declarations for their Non-Portal Accounts for AD/CVD entries. Brokers 
with clients possessing their own importer Portal Accounts, however, 
will not be able to create declarations on behalf of their clients. 
Brokers will have to be granted access as a ``user'' on the importer's 
Portal Account in order to create the declaration.
    ACE Secure Data Portal Reports will also be enhanced to include AD/
CVD Entry Summary Data.

C. EDI Capability

    Trade participants may begin to file entry summaries electronically 
in ACE for entry types 03 using a better organized, more descriptive 
ACE ABI CATAIR (Customs and Trade Automated Interface Requirements) 
document. CATAIR documentation provides complete information describing 
how importers and/or their agents provide electronic import information 
to ABI, and receive transmissions from ABI once they have become a 
participant.
    Type 03 entries filed under this ESAR III test will now require the 
submission of the ``sold to'' party and ``foreign exporter'' at the 
line level. This requirement differs from the ESAR I and II tests that 
apply to 01 and 011 entry types. The CATAIR should be consulted for 
further guidance pertaining to the definitions for each of these new 
data elements. Additionally, 01 entry types filed under this test will 
now require the ``sold to'' party and ``consignee'' party; this is a 
change from the previous ESAR II test where only the ``consignee'' 
party was required. As previously, mentioned, the CATAIR document 
should be consulted for further guidance pertaining to the definitions 
for the referenced data elements.
    Filers will have the ability to make an AD/CVD Non-Reimbursement 
statement on any line item that includes AD/CVD information. 
Accompanying the case information, the filer will also have the ability 
to identify the actual AD/CVD Non-Reimbursement declaration that cites 
the case and that is on file with CBP.
    Filers will have the ability to run an ABI query of AD/CVD case 
information. Information returned in the query output will include data 
required by ABI filers to successfully file AD or CVD entry summaries 
in ACE. The available queries will include: (1) Specific case numbers--
input Q1-Record; and, (2) Case criteria (such as country, Manufacturer 
Identification Number (MID), and date since last update)--input Q2-
Record.
    Additionally there will be 10 different output records to provide 
case details including:
     Case general information (status, related case, short 
description, etc.)
     Case official name
     Manufacturer details
     Foreign exporter details
     Department of Commerce contact information
     Deposit rate details
     Case events
     Bond/cash details
     Tariff details
     Entry summary liquidation suspension details
    Revisions to CATAIR chapters will include:
     Entry Summary Create/Update (AE/AX)
     Entry Summary Query (JC/JD)
     Appendix G--ACE Condition Codes and Narrative Text
     ACE ABI CATAIR--Table of Contents
     AD/CVD Case Information Query
    Interested parties are directed to cbp.gov for more detailed 
information regarding these new ACE ABI CATAIR formats.

III. Confidentiality

    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. If necessary, CBP will reserve the right to limit the number of 
participants and locations during the initial stages of the test.

IV. Waiver of Affected Regulations

    Any provision in title 19 of the Code of Federal Regulations 
including, but not limited to, provisions found in parts

[[Page 69132]]

141, 142, 143 and 151 relating to entry/entry summary processing that 
are inconsistent with the requirements set forth in this notice are 
waived for the duration of the test. See 19 CFR 101.9(a). Additionally, 
any previous practice pertaining to party definitions, including but 
not limited to ``ultimate consignee,'' that are inconsistent with the 
requirements set forth in this notice are waived for the duration of 
the test. The CATAIR should be consulted for appropriate terms and 
definitions for the purposes of this test.

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: December 24, 2009.
Daniel Baldwin,
Assistant Commissioner, Office of International Trade.
[FR Doc. E9-31006 Filed 12-29-09; 8:45 am]
BILLING CODE 9111-14- P (50%)- 9111-15- P(50%)