[Federal Register Volume 76, Number 92 (Thursday, May 12, 2011)]
[Rules and Regulations]
[Pages 27606-27609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-11248]


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DEPARTMENT OF HOMELAND SECURITY

Customs and Border Protection

19 CFR Part 4

[CBP Dec. 11-10]


Technical Corrections To Remove Obsolete References to Non-
Automated Carriers From Electronic Cargo Manifest Regulations and to 
Update Terminology

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

ACTION: Final rule.

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SUMMARY: This document amends the U.S. Customs and Border Protection 
(CBP) regulations concerning the

[[Page 27607]]

mandatory electronic transmission of inward foreign manifests for 
vessels transporting bulk and certain break bulk cargo to the United 
States to make several technical corrections, including removing 
obsolete language that refers to vessel carriers who do not transmit 
cargo declaration information electronically (non-automated carriers). 
When CBP amended its regulations to implement section 343(a) of the 
Trade Act of 2002 to require carriers to transmit advance cargo 
information electronically, CBP inadvertently neglected to remove 
language in the cargo manifest regulations that referred to non-
automated bulk and break bulk vessel carriers. This document also makes 
technical changes to related provisions to clarify the process for 
electronically transmitting cargo declarations to CBP and to clarify 
and update terminology.

DATES: Effective Date: May 12, 2011.

FOR FURTHER INFORMATION CONTACT: George McCray, Chief, Cargo Security, 
Carriers, and Immigration Branch, Regulations & Rulings, Office of 
International Trade: (202) 325-0082; Leslie Bianchi, Commercial Vessel 
Program Manager, Manifest and Conveyance Branch, Office of Field 
Operations: (202) 344-2575.

SUPPLEMENTARY INFORMATION:

Background

Applicable Law

    Under 19 U.S.C. 1431, vessel carriers are required to submit to CBP 
information concerning cargo they are transporting to the United 
States. Under 19 U.S.C. 1431(d), CBP is authorized to specify the form 
for, and the information required in, the vessel manifest, as well as 
the manner of production for, and the delivery of or electronic 
transmittal of, the vessel manifest. In the aftermath of the terrorist 
attacks of September 11, 2001, Congress passed the Trade Act of 2002 
(Pub. L. 107-210, 116 Stat. 933, enacted on August 6, 2002; 19 U.S.C. 
2071 note), which, as amended by section 108 of the Maritime 
Transportation Security Act of 2002 (Pub. L. 107-295, 116 Stat. 2064, 
enacted on November 25, 2002), requires, in section 343(a), that CBP 
(then, the U.S. Customs Service) promulgate regulations to collect 
cargo information from any mode of commercial carrier (sea, air, rail, 
or truck) through a CBP-approved electronic data interchange system. 
The CBP-approved electronic data interchange (transmission) system is 
the Automated Manifest System (AMS). The information required is that 
which is determined to be reasonably necessary to enable CBP to 
identify high-risk shipments so as to ensure cargo safety and security 
and prevent smuggling pursuant to the laws that are enforced and 
administered by CBP.

Existing Regulatory Requirements Under Previous Rulemakings

    On October 31, 2002, CBP (then, the U.S. Customs Service) published 
a final rule (2002 final rule) in the Federal Register (67 FR 66318) 
amending 19 CFR 4.7 pertaining to vessel manifests to require the 
advance filing of cargo information, electronically or manually, no 
later than 24 hours prior to the cargo's lading onboard the vessel at 
the foreign port (the ``24-hours before lading'' filing requirement). 
The 2002 final rule exempted from the ``24-hours before lading'' filing 
requirement carriers of bulk cargo and certain carriers of break bulk 
cargo whose applications for the exemption are approved by CBP 
(sometimes referred to as CBP-approved break bulk carriers).\1\ The 
2002 final rule required bulk and CBP-approved break bulk carriers who 
transmit cargo declaration information electronically (automated 
carriers) to make these transmissions 24 hours before the vessel's 
arrival in the United States (at the U.S. port) and non-automated bulk 
and CBP-approved break bulk carriers to present cargo declarations upon 
the vessel's arrival at the U.S. port.\2\ The 2002 final rule was based 
primarily on CBP's long-established general authority under 19 U.S.C. 
1431 to prescribe rules concerning information required, and the manner 
of providing that information, relative to imported cargo.\3\
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    \1\ Under the CBP regulations, bulk cargo is defined as 
homogeneous cargo that is stowed loose in the hold and is not 
enclosed in any container such as a box, bale, bag, cask, or the 
like. Such cargo is also described as bulk freight. Specifically, 
bulk cargo is composed of either free flowing articles such as oil, 
grain, coal, ore, and the like, which can be pumped or run through a 
chute or handled by dumping, or articles that require mechanical 
handling such as bricks, pig iron, lumber, steel beams, and the like 
(19 CFR 4.7(b)(4)(i)). Break bulk cargo is defined in the 
regulations as cargo that is not containerized but which is 
otherwise packaged or bundled (19 CFR 4.7(b)(4)(ii)). Break bulk 
cargo is exempted from the 24-hours before lading filing requirement 
of 19 CFR 4.7(b)(2) upon approval by CBP under 19 CFR 4.7(b)(4)(ii).
    \2\ The current regulation provides that these carriers must 
``present their cargo declarations'' to Customs (now CBP) either 24 
hours prior to arrival (electronically) or upon arrival (manually), 
as appropriate.
    \3\ In the preamble of the 2002 final rule, CBP noted section 
343(a) of the Trade Act of 2002, then recently passed into law, and 
stated that it co-exists with 19 U.S.C. 1431 within the body of 
customs law and that a subsequent rulemaking would specifically 
address the section 343(a) provisions.
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    On December 5, 2003, CBP published a final rule (2003 final rule) 
in the Federal Register (68 FR 68140) further amending 19 CFR 4.7 to 
implement section 343(a) of the Trade Act of 2002 which requires CBP to 
collect, in advance of arrival in or departure from the United States, 
cargo information from any mode of commercial carrier (sea, air, rail, 
or truck) through the CBP-approved electronic data interchange system. 
The 2003 final rule retained the general timing requirements for the 
transmission of the cargo information (generally 24 hours prior to 
lading at the foreign port), including the exemption from this 
requirement for bulk and CBP-approved break bulk carriers.

Explanation of Amendments

Technical Correction to Remove Obsolete Language Pertaining to Non-
Automated Bulk and Break Bulk Carriers

    When CBP amended its regulations in 2003 to implement section 
343(a) of the Trade Act of 2002, CBP intended to require all carriers 
to transmit cargo information to CBP electronically. However, CBP 
neglected to remove language in 19 CFR 4.7(b)(4) referring to non-
automated bulk and break bulk vessel carriers. Thus, contrary to the 
Trade Act of 2002 and the intent of the 2003 final rule, the current 
regulation still provides that these bulk and break bulk carriers may 
be non-automated.\4\
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    \4\ The preamble to the 2003 final rule indicates CBP's 
intention that the mandatory electronic transmission requirement 
applies to bulk and CBP-approved break bulk carriers. In the 
discussion of comments section of that rule, CBP states that bulk 
and authorized break bulk carriers will be subject to the electronic 
transmission requirement under the rule (68 FR 68145).
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    In order to conform the regulation to the statute's mandatory 
electronic transmission requirement for all carriers, this technical 
correction removes the obsolete reference to non-automated carriers 
from 19 CFR 4.7(b)(4). This change will have no practical effect since 
there are no longer any non-automated carriers. All carriers, including 
bulk and break bulk carriers, have been filing cargo information 
electronically since at least 2004.

Technical Corrections to Clarify Electronic Procedures for Bulk and 
CBP-Approved Break Bulk Cargo and to Update Texts

    This technical correction document also makes several other changes 
to the regulations related to the electronic transmission of vessel 
cargo information to clarify the process and to update terminology. 
First, various changes reflecting that ``Customs'' is now known as 
``CBP'' are made throughout the affected provisions. Second, CBP is

[[Page 27608]]

adding the word ``electronic'' in the heading for 19 CFR 4.7. Third, 
CBP is adding language to 19 CFR 4.7(b)(2) to make clear that any 
change to a new electronic data interchange system approved by CBP to 
replace the AMS system for transmitting cargo information under this 
section will be announced in the Federal Register. This addition is 
made in anticipation of the eventual change from AMS to the Automated 
Commercial Environment (ACE) system or to any other CBP-approved system 
that might follow for this purpose in the future.
    Fourth, several provisions in 19 CFR part 4 improperly use the term 
``cargo manifest,'' ``manifest,'' or something similar to refer to the 
``cargo declaration.'' The cargo declaration is only one of several 
documents that comprise the manifest (see 19 CFR 4.7a). To alleviate 
confusion, and because ``cargo declaration'' (CBP Form 1302) is the 
correct term, CBP is substituting ``cargo declaration'' or something 
similar where appropriate. These changes are made in 19 CFR 
4.7(b)(3)(i), (b)(4)(ii)(A), 4.7(e), 4.7a(c)(2)(iii), 4.7a(c)(4), 
4.7a(f), and 4.30(n) (as further explained below).
    Fifth, a few provisions in 19 CFR part 4 reference the general 
cargo declaration transmission time requirement of 19 CFR 4.7(b)(2) 
without also referencing the alternative transmission time requirement 
for exempted bulk and CBP-approved break bulk carriers in 19 CFR 
4.7(b)(4). This is corrected in 19 CFR 4.7a(c)(4)(xv) and 4.8(b).
    Sixth, in 19 CFR 4.7(b)(4)(i), CBP is removing the first sentence 
as it is redundant text. The sentence generally repeats what is stated 
in the first sentence of current 19 CFR 4.7(b)(4)--that carriers of 
bulk cargo are exempted with respect to that cargo from the 24 hours 
before lading filing requirement of 19 CFR 4.7(b)(2).
    Seventh, CBP is revising 19 CFR 4.30(n), pertaining to CBP's 
withholding or delaying the issuance of a permit to unlade due to the 
failure to transmit required cargo information. This provision is 
outdated because it provides the option of presenting the cargo 
information in paper form. In the revised paragraph (n), CBP also is 
adding references to 19 CFR 4.7(b)(4) to make it clear that CBP may 
withhold or delay the issuance of a permit to unlade, or deny 
preliminary entry, for failure to transmit required cargo information, 
whether the information is due within the time frame specified in 19 
CFR 4.7(b)(2) or (b)(4).

Inapplicability of Notice and Delayed Effective Date Requirements

    Because the technical corrections set forth in this document merely 
conform the regulatory text to existing law, clarify the text of 
existing regulations, and update terminology, CBP finds that good cause 
exists for dispensing with notice and public procedure as unnecessary 
under 5 U.S.C. 553(b)(B). For this same reason, pursuant to 5 U.S.C. 
553(d)(3), CBP finds that good cause exists for dispensing with the 
requirement for a delayed effective date.

Regulatory Analyses

Regulatory Flexibility Act

    Because this document is not subject to the notice and public 
procedure requirements of 5 U.S.C. 553, it is not subject to the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

Executive Order 12866

    The amendments made in this document do not meet the criteria for a 
``significant regulatory action'' as specified in Executive Order 
12866.

Signing Authority

    The signing authority for the amendments of this final rule falls 
under 19 CFR 0.2(a). Accordingly, this document is signed by the 
Secretary of Homeland Security (or his/her delegate).

List of Subjects in 19 CFR part 4

    Customs duties and inspection, Freight, Maritime carriers, 
Reporting and recordkeeping requirements, Vessels.

Amendments to the Regulations

    For the reasons set forth in the preamble, part 4 of title 19, Code 
of Federal Regulations (19 CFR part 4) is amended as follows:

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

0
1. The general authority citation for part 4 and specific authority 
citations for Sec.  4.7, 4.8, and 4.30 continue to read as follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 66, 1431,1433,1434,1624, 
2071 note; 46 U.S.C. 501, 60105.
* * * * *
    Section 4.7 also issued under 19 U.S.C. 1581(a);
* * * * *
    Section 4.8 also issued under 19 U.S.C. 1448, 1486;
* * * * *
    Section 4.30 also issued under 19 U.S.C. 288, 1446, 1448, 1450-
1454, 1490;
* * * * *


0
2. Section 4.7 is amended by:
0
a. Revising the heading;
0
b. In paragraph (a), removing the words ``Customs Form'' wherever they 
appear and adding in their place the words ``CBP Form'' and removing 
the words ``Customs and Immigration Form'' wherever they appear and 
adding in their place the words ``CBP Form'';
0
c. In paragraph (b)(1), removing the words ``Customs officer'' and 
adding in their place the words ``CBP officer'';
0
d. In paragraph (b)(2), removing the words ``Customs Form'' and adding 
in their place the words ``CBP Form'', removing the reference to 
``Sec.  4.30(n)(1)'' and adding in its place ``Sec.  4.30(n)'', and 
removing the last sentence and adding in its place two new sentences;
0
e. Revising paragraph (b)(3)(i);
0
f. Revising the introductory text in paragraph (b)(4);
0
g. In paragraph (b)(4)(i), removing the first sentence;
0
h. In paragraph (b)(4)(ii)(A), in the first sentence, removing the 
words ``U.S. Customs Service'' and adding in their place the words 
``U.S. Customs and Border Protection''; in the second sentence, 
removing the words ``advance manifest requirement'' and adding in their 
place the words ``advance cargo declaration requirement''; and, in the 
third sentence, removing the word ``Customs'' and adding in its place 
``CBP''
0
i. In paragraphs (b)(4)(ii)(B) and (C), removing the word ``Customs'' 
wherever it appears and adding in its place ``CBP'';
0
j. In paragraph (d)(1)(ii), removing the words ``Customs Form 226'' 
wherever they appear and adding in their place the words ``CBP Form 
226''; and
0
k. In paragraph (e), in the second sentence, removing the words ``cargo 
manifest information to Customs'' and adding in their place the words 
``cargo declaration information to CBP'' and removing the words 
``manifest or data to Customs'' and adding in their place the words 
``cargo declaration or data to CBP''.
    The revisions read as follows:


Sec.  4.7  Inward foreign manifest; production on demand; contents and 
form; advance electronic filing of cargo declaration.

* * * * *
    (b) * * *
    (2) * * * The electronic cargo declaration information must be 
transmitted through the CBP Automated Manifest System (AMS) or any 
electronic data interchange system approved by CBP to replace the AMS 
system for this purpose. Any such system change will be announced by 
notice in the Federal Register.
    (3)(i) Where a non-vessel operating common carrier (NVOCC), as 
defined in

[[Page 27609]]

paragraph (b)(3)(ii) of this section, delivers cargo to the vessel 
carrier for lading aboard the vessel at the foreign port, the NVOCC, if 
licensed by or registered with the Federal Maritime Commission and in 
possession of an International Carrier Bond containing the provisions 
of Sec.  113.64 of this chapter, may electronically transmit the 
corresponding required cargo declaration information directly to CBP 
through the vessel AMS system (or other system approved by CBP for this 
purpose). The information must be received 24 or more hours before the 
related cargo is laden aboard the vessel at the foreign port (see Sec.  
113.64(c) of this chapter), as provided in paragraph (b)(2) of this 
section, or in accordance with paragraph (b)(4) of this section 
applicable to exempted bulk and break bulk cargo. In the alternative, 
the NVOCC must fully disclose and present the required cargo 
declaration information for the related cargo to the vessel carrier 
which is required to present this information to CBP, in accordance 
with this section, via the vessel AMS system (or other CBP-approved 
system).
* * * * *
    (4) Carriers of bulk cargo as specified in paragraph (b)(4)(i) of 
this section and carriers of break bulk cargo to the extent provided in 
paragraph (b)(4)(ii) of this section are exempt, with respect only to 
the bulk or break bulk cargo being transported, from the requirement 
set forth in paragraph (b)(2) of this section that an electronic cargo 
declaration be received by CBP 24 hours before such cargo is laden 
aboard the vessel at the foreign port. With respect to exempted 
carriers of bulk or break bulk cargo operating voyages to the United 
States, CBP must receive the electronic cargo declaration covering the 
bulk or break bulk cargo they are transporting 24 hours prior to the 
vessel's arrival in the United States (see Sec.  4.30(n)). However, for 
any containerized or non-qualifying break bulk cargo these exempted 
carriers will be transporting, CBP must receive the electronic cargo 
declaration 24 hours in advance of loading.
* * * * *


Sec.  4.7a  [Amended]

0
3. Section 4.7a is amended by:
0
a. In paragraph (a), removing the words ``Customs Form'' and adding in 
their place the words ``CBP Form'';
0
b. In paragraph (b), removing the words ``Customs Form'' wherever they 
appear and adding in their place the words ``CBP Form'' and removing 
the words ``Customs and Immigration Form I-418'' and adding in their 
place the words ``CBP Form I-418'', and, in the certification language, 
removing the word ``Customs'' and adding in its place ``CBP'';
0
c. In paragraph (c)(1), removing from the first parenthetical in the 
first sentence the words ``Customs Form 1302 or a Customs-approved 
electronic equivalent'' and adding in their place the words ``CBP Form 
1302 submitted in accordance with paragraph (b)(2) or (b)(4) of this 
section'';
0
d. In paragraph (c)(2)(ii), removing the words ``Customs Form'' 
wherever they appear and adding in their place the words ``CBP Form'';
0
e. In paragraph (c)(2)(iii), removing the word ``Customs'' wherever it 
appears and adding in its place ``CBP'' and, in the next to last 
sentence, removing the words ``discrepancies between manifests and 
entries'' and adding in their place the words ``discrepancies between 
cargo declarations and entries'';
0
f. In paragraph (c)(3) introductory text, removing the word ``Customs'' 
and adding in its place ``CBP'';
0
g. In paragraph (c)(4) introductory text, removing the words ``cargo 
manifest information'' and adding in their place the words ``cargo 
declaration information'' and removing the words ``, either on Customs 
Form 1302, or on a separate sheet or Customs-approved electronic 
equivalent,'';
0
h. In paragraph (c)(4)(xv) introductory text, in the second 
parenthetical, which is within the first parenthetical, after the 
reference to Sec.  4.7(b)(2), adding ``or Sec.  4.7(b)(4)'' and, in 
paragraph (c)(4)(xv)(B), removing the words ``Customs Form (CF) 3171 
and adding in their place the words ``CBP Form 3171'';
0
i. In paragraph (d), removing the words ``the Immigration and 
Naturalization Service, United States Department of Justice'' and 
adding in their place the words ``applicable Department of Homeland 
Security (DHS) regulations administered by CBP'';
0
j. In paragraph (e)(1), removing the words ``the Immigration and 
Naturalization Service, United States Department of Justice'' and 
adding in their place the words ``applicable DHS regulations 
administered by CBP'' and, in the certification language, removing the 
word ``Customs'' wherever it appears and adding in its place ``CBP''; 
and
0
k. In paragraph (f), second sentence, removing the words ``cargo 
manifest information to Customs'' and adding in their place the words 
``cargo declaration information to CBP''.


Sec.  4.8  [Amended]

0
4. Section 4.8 is amended by:
0
a. In paragraph (a), removing the words ``the Customs Service'' and 
adding in their place the words ``Customs and Border Protection 
(CBP)''; and
0
b. In paragraph (b), removing the word ``Customs'' wherever it appears 
and adding in its place ``CBP''; in the second sentence, removing 
``(CF)''; removing the words ``in the manner provided in Sec.  
4.7(b)(2)'' and the words ``in the manner provided in Sec.  4.7(b)'' 
and adding in both places the words ``in the manner provided in Sec.  
4.7(b)(2) or (4)''; and, in the fourth and fifth sentences, removing 
``CF'' and adding in its place the words ``CBP Form''.

0
5. In Sec.  4.30, paragraph (n) is revised to read as follows:


Sec.  4.30  Permits and special licenses for unlading and lading.

* * * * *
    (n) CBP will not issue a permit to unlade before it has received 
the cargo declaration information pursuant to Sec.  4.7(b)(2) or (4) of 
this part. In cases in which CBP does not receive complete cargo 
declaration information from the carrier or a NVOCC in the manner, 
format, and time frame required by Sec.  4.7(b)(2) or (4), as 
appropriate, CBP may delay issuance of the permit to unlade the entire 
vessel until all required information is received. CBP may also decline 
to issue a permit to unlade the specific cargo for which a cargo 
declaration is not received in a timely manner under Sec.  4.7(b)(2) or 
(4). Further, where a carrier does not transmit a cargo declaration in 
the manner required by Sec.  4.7(b)(2) or (4), preliminary entry 
pursuant to Sec.  4.8(b) will be denied.

    Dated: May 4, 2011.
Alan D. Bersin,
Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2011-11248 Filed 5-11-11; 8:45 am]
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