[Federal Register Volume 77, Number 61 (Thursday, March 29, 2012)]
[Notices]
[Pages 19030-19032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7558]


-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

[CBP Dec. No. 12-06]


Automated Commercial Environment Required for the Transmission of 
Advance Ocean and Rail Cargo Information

AGENCY: U.S. Customs and Border Protection, DHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Various U.S. Customs and Border Protection (CBP) regulations 
require the transmission of advance cargo information to CBP through a 
CBP-approved electronic data interchange (EDI) system. CBP recently 
completed the testing of the Automated Commercial Environment (ACE) for 
the transmission of advance ocean and rail cargo information. This 
notice announces that, after a six month transition period, ACE will be 
the only CBP-approved EDI for submitting required advance information 
for ocean and rail cargo.

DATES: On September 29, 2012, ACE will be the only CBP-approved EDI for 
transmitting to CBP required advance information for ocean and rail 
cargo.

FOR FURTHER INFORMATION CONTACT: Susan Maskell, Office of International 
Trade, [email protected].

SUPPLEMENTARY INFORMATION:

Background

    Section 343(a) of the Trade Act of 2002, as amended by the Maritime 
Transportation Security Act of 2002 (19 U.S.C. 2071 note) (referred to 
in this notice as the Trade Act), directed U.S. Customs and Border 
Protection (CBP) to promulgate regulations providing for the mandatory 
transmission of electronic cargo information by way of a CBP-approved 
electronic data interchange (EDI) system before the cargo is brought 
into or departs the United States by any mode of commercial 
transportation (ocean, air, rail or truck). The required cargo 
information is that which is reasonably necessary to enable high-risk 
shipments to be identified for purposes of ensuring cargo safety and 
security and preventing smuggling pursuant to the laws enforced and 
administered by CBP. To effectuate the provisions of the Trade Act, CBP 
published a final rule in the Federal Register in 2003, requiring the 
advance electronic transmission of information pertaining to cargo 
prior to its being brought into, or sent from, the United States by 
sea, air, rail or truck. See Required Advance Electronic

[[Page 19031]]

Presentation of Cargo Information, 68 FR 68140, December 5, 2003.\1\
---------------------------------------------------------------------------

    \1\ The Trade Act, enacted on August 6, 2002, was amended by the 
Maritime Transportation Security Act of 2002, enacted on November 
25, 2002. On October 31, 2002, CBP published a final rule to require 
the advance and accurate presentation of certain manifest 
information before cargo is laden aboard a vessel at a foreign port. 
This rule was promulgated under the authority of 19 U.S.C. 1431. CBP 
encouraged the presentation of this information electronically. See 
67 FR 66318. This final rule is known to the trade as the ``24 hour 
rule.''
---------------------------------------------------------------------------

    Section 203 of the Security and Accountability for Every Port Act 
of 2006, Public Law 109-347, 120 Stat. 1884 (SAFE Port Act) directed 
the Secretary of Homeland Security, acting through the Commissioner of 
CBP, to promulgate regulations to require the electronic transmission 
to the Department of Homeland Security of additional data elements for 
improved high-risk targeting, including appropriate security elements 
of entry data, as determined by the Secretary. This additional data was 
to be provided as advanced information with respect to cargo destined 
for importation into the United States prior to loading of such cargo 
on vessels at foreign seaports. In 2008, pursuant to the Trade Act and 
the SAFE Port Act, CBP published an interim final rule in the Federal 
Register requiring importers and carriers to submit additional 
information pertaining to maritime cargo before the cargo is brought 
into the United States by means of a CBP-approved electronic 
interchange system. See Importer Security Filing and Additional Carrier 
Requirements, 73 FR 71730, November 25, 2008. The interim final rule is 
known to the trade as the ``Importer Security Filing'' (ISF) or ``10 + 
2'' rule.

Advance Ocean and Rail Cargo Data

    The CBP regulations pertaining to the submission of the data 
required in advance of arrival for ocean and rail cargo are set forth 
in title 19 Code of Federal Regulations (CFR) Parts 4, 123, and 149.\2\ 
Sections 4.7(b)(2), 4.7(b)(3)(i), 123.91(a), and 149.2 pertain to the 
method of transmission of the advance ocean and rail data relevant to 
this notice. They generally require the transmission of the advance 
data through the EDI system approved by CBP.
---------------------------------------------------------------------------

    \2\ For specific information about the requirements to provide 
advance cargo information to CBP, please see the following sections 
of title 19 CFR: 4.7 Inward foreign manifest, production on demand, 
contents and form, advance filing of cargo declaration; 4.7a Inward 
manifest, information required, alternative forms; 4.7c Vessel stow 
plan; 4.7d Container status messages; 123.91 Electronic information 
for rail cargo required in advance of arrival; and Part 149 Importer 
Security Filing.
---------------------------------------------------------------------------

    Section 4.7(b)(2), pertaining to vessels, provides that 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. Section 4.7(b)(3)(i), also pertaining to vessels, provides 
that a non-vessel operating common carrier (NVOCC) must 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), or in the alternative, 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 via the vessel AMS system (or other CBP approved 
system).
    Section 123.91(a) requires rail carriers to use a CBP-approved 
electronic data interchange system to submit the required advance 
information.
    Section 149.2, pertaining to maritime cargo, requires the Importer 
Security Filing data elements to be submitted through a CBP-approved 
electronic interchange system.

M1 Test for Ocean and Rail Data Transmission

    CBP recently conducted a National Customs Automation Program (NCAP) 
test, known as M1, concerning the transmission of required advance 
ocean and rail data through ACE. The test was announced in two Federal 
Register notices (M1 notices). See 75 FR 64737, October 20, 2010 and 76 
FR 42721, July 19, 2011.
    CBP sought participants that were transmitting the required advance 
ocean and rail data to CBP in different formats to facilitate their 
transition to ACE in a controlled environment.\3\ M1 test participants 
were chosen based on the specific type of software format they used to 
transmit the required advance data. The goal of the M1 test was to 
ensure that each transmission format was fully compatible with ACE. By 
working with this select group of participants, CBP was able to verify 
that each transmission format functioned properly with ACE and to 
develop effective processes and guidelines. These processes and 
guidelines will enable the rest of the affected trade community to 
quickly and efficiently transition to ACE. The M1 participants began 
submitting live data through ACE on November 30, 2011.
---------------------------------------------------------------------------

    \3\ For more information on the types of compatible software 
utilized to transmit the required advance data, please see the 
Implementation of the Test section of the October 20, 2010 M1 notice 
(75 FR 64737 at 64738).
---------------------------------------------------------------------------

    CBP stated in the M1 notices that upon the successful completion of 
the M1 test, CBP would publish another notice to announce that after a 
transition period, ACE would be the only CBP-approved EDI for 
transmitting required advance data for ocean and rail cargo.

M1 Test Results

    The M1 test has been successfully completed. To date, 24 trade 
participants have completed the certification testing described in the 
M1 test notice and are transmitting their advance ocean and rail cargo 
information in ACE. Another 11 trade participants are currently 
involved in certification testing. The port of Baltimore, Maryland 
began utilizing ACE for processing ocean cargo on November 30, 2011. 
The ports of Buffalo, New York and Brownsville, Texas began using ACE 
for processing ocean and rail cargo on December 5, 2011. To date, 91 
ports are using ACE for ocean and/or rail processing.
    CBP verified that all electronic data interchanges are compatible 
with ACE and has prepared ACE Implementation Guidelines, which are 
posted at www.CBP.gov. The ACE Implementation Guidelines include the 
appropriate standards needed for each referenced type of software to 
work with ACE. These standards will enable transmitters to conform 
their own software to ACE or to acquire new software that is compatible 
with ACE. In addition to the ACE Implementation Guidelines, CBP has 
posted informational notices, user guides, and Web-based training at 
www.CBP.gov.

ACE as the Only CBP-Approved EDI for Required Advance Ocean and Rail 
Cargo Information

    For purposes of sections 4.7(b)(2), 4.7(b)(3)(i), 123.91(a), and 
149.2 of title 19 CFR, beginning on September 29, 2012, ACE will be the 
only CBP-approved EDI for transmitting the required advance information 
for ocean and rail cargo. Until this date, a transition period is in 
effect during which ACE or AMS may be used to transmit the required 
advance information for ocean and rail cargo.
    CBP will continue to work with the affected trade community to 
ensure a complete and efficient transition to ACE. CBP encourages all 
transmitters to undergo the ACE certification process described in the 
M1 notices during the transition period to ensure total ACE

[[Page 19032]]

functionality.\4\ Total ACE functionality means that the transmitter 
will retain all of the existing functionality currently available as 
well as the new functionalities only available through ACE.\5\ 
Transmitters should contact the Client Representative Branch at 571-
468-5500 to make arrangements to begin the ACE certification process.
---------------------------------------------------------------------------

    \4\ Participants were required to undergo the certification 
process, described in detail in the October 20, 2010 M1 notice, as a 
prerequisite for participating in the M1 test. See 75 FR 64737 at 
64739.
    \5\ For more information on the additional functionalities 
available through ACE, please see the ACE Functionality section of 
the October 20, 2010 M1 notice (75 FR 64737 at 64739).
---------------------------------------------------------------------------

    Although AMS will continue to operate during the transition period 
and may still be used in the normal course of business for other 
purposes, it will no longer be available for purposes related to 
transmitting to CBP required advance ocean and rail cargo information 
beginning on September 29, 2012.

    Dated: March 26, 2012.
Thomas Winkowski,
Acting Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2012-7558 Filed 3-28-12; 8:45 am]
BILLING CODE 9111-14-P