[Federal Register Volume 77, Number 67 (Friday, April 6, 2012)]
[Notices]
[Pages 20835-20837]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-8246]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


National Customs Automation Program (NCAP) Test Concerning 
Automated Commercial Environment (ACE) Document Image System (DIS)

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 
(CBP's) plan to conduct a National Customs Automation Program (NCAP) 
test concerning document imaging. During the test, certain Automated 
Commercial Environment (ACE) participants will be able to submit 
electronic images of a specific set of CBP and Participating Government 
Agency (PGA) forms and supporting information to CBP. Specifically, 
importers, and brokers, will be allowed to submit official CBP 
documents and specified PGA forms via the Electronic Data Interchange 
(EDI). This notice also describes test particulars including 
commencement date, eligibility, procedural and documentation 
requirements, and test development and evaluation methods. The test 
will be known as the Document Image System (DIS) Test.

DATES: The DIS test will commence no earlier than April 6, 2012 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 to the address set forth 
below.

ADDRESSES: Comments concerning this notice should be submitted via 
email to Monica Crockett at [email protected]. In the subject line 
of your email, please indicate ``Document Image System (DIS)''.

FOR FURTHER INFORMATION CONTACT: For policy-related questions, contact 
Monica Crockett at [email protected]. For technical questions 
related to ABI transmissions, contact your assigned client 
representative. Any PGA interested in participating in DIS should 
contact Susan Dyszel at [email protected]. Interested parties 
without an assigned client representative should direct their questions 
to Susan Maskell at [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The National Customs Automation Program (NCAP) was established in 
Subtitle B of Title VI--Customs Modernization, in the North American 
Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 
2057, 2170, December 8, 1993) (Customs Modernization Act). See 19 
U.S.C. 1411. Through NCAP, the initial thrust of customs modernization 
was on trade compliance and the development of the Automated Commercial 
Environment (ACE), the planned successor to the Automated Commercial 
System (ACS). ACE is an automated and electronic system for commercial 
trade processing which is intended to streamline business processes, 
facilitate growth in trade, ensure cargo security, and foster 
participation in global commerce, while ensuring compliance with U.S. 
laws and regulations and reducing costs for U.S. Customs and Border 
Protection (CBP) and all of its communities of interest. The ability to 
meet these objectives depends on successfully modernizing CBP's 
business functions and the information technology that supports those 
functions. CBP's modernization efforts are accomplished through phased 
releases of ACE component functionality designed to replace a specific 
legacy ACS function. Each release will begin with a test and will end 
with mandatory compliance with the new ACE feature, thus retiring the 
legacy ACS function. Each release builds on previous releases and sets 
the foundation for subsequent releases.
    ACE prototypes are tested in accordance with Sec.  101.9(b) of 
title 19 of the Code of Federal Regulations (19 CFR 101.9(b)), which 
provides for the testing of NCAP components including ACE. For the 
convenience of the public, a chronological listing of Federal Register 
publications detailing ACE test developments in Entry, Summary, 
Accounts and Revenue (ESAR) is set forth below in Section X, entitled, 
``Development of ACE Prototypes.'' The procedures and criteria related 
to participation in the prior ACE tests remain in effect unless 
otherwise explicitly changed by this or subsequent notices published in 
the Federal Register.

Document Image System (DIS) Test Program

    This notice announces a CBP plan to allow parties who have been 
accepted in previous ESAR tests and who file entry summaries in ACE to 
submit specified CBP and PGA documents via the Electronic Data 
Interchange (EDI) as part of the Document Image System (DIS) test. DIS 
is currently a stand-alone system that will eventually support 
integration with other CBP systems and other government agencies. DIS 
capabilities will be delivered in multiple phases.
    The first phase, and the subject of this notice, will enable 
participating importers and brokers to transmit images of specified CBP 
and PGA forms with supporting information via EDI in an Extensible 
Markup Language (XML) format, in lieu of conventional paper methods. 
DIS will provide for the storage of all submitted documents in a secure 
centralized location for the maintenance of associations with ACE entry 
summary transactions. Authorized CBP and PGA users will have the 
ability to access document images submitted by trade participants via a 
user interface, which will allow CBP and PGA users to select specific 
documents for review, to change the status of documents, and to add 
comments based on the current state of their review. The interface will 
also allow the document image to be downloaded or printed, if 
necessary. This first phase will be limited to the forms listed below 
in Section III of this notice. Subsequent deployment phases of DIS will 
extend the functionality developed in this first phase to other CBP and 
PGA systems. These latter phases will incorporate additional forms into 
DIS and provide new interfaces for integration of DIS with other 
systems in CBP and other government agencies. The exact dates and 
content of subsequent phases of DIS have not yet been determined but 
will be announced in the Federal Register when set.

Test Participation

I. Eligibility Requirements

    In order to be eligible to participate in the DIS test, importers 
or brokers must be ACE entry summary filers. Interested participants 
should contact their client representative for additional information 
pertaining to participation in this test. Interested companies that do 
not currently have an assigned client representative should submit a 
Letter of Intent expressing their intent to participate in the DIS test 
so that client representatives can be assigned. Instructions for the 
preparation of the Letter of Intent can be found on the CBP

[[Page 20836]]

Web site at: http://www.cbp.gov/xp/cgov/trade/automated/automated_systems/abi/getting_started/getting_started.xml.

II. Rules for Submitting Images in Document Image System

    The following rules will apply to all participants involved in the 
DIS testing process:
     Documents may be transmitted in DIS in response to a 
request for entry summary documentation or in response to a request for 
release documentation for certified ACE entry summaries.
     Unsolicited document submissions are not allowed; however, 
for the purposes of PGA forms and invoices/packing lists that are 
associated to ACE entry summaries certified for cargo release, the 
trade may submit the required documentation without a prior request by 
CBP or the participating government agency (PGA).
     Only documents that have been requested by CBP or the PGA 
should be transmitted to CBP. If a document is submitted that has not 
been requested by CBP, an error message will be returned indicating 
that the transaction for which the document was submitted does not have 
any pending document requests made by CBP or a PGA.
     The filer may only file documents that CBP can accept 
electronically. In this first phase of DIS, the documents CBP can 
accept electronically are noted below. If CBP cannot accept the 
additional information electronically, the filer must file the 
additional information by other means, which may be paper.
     For the purposes of this test, original documents must be 
retained and made available in paper, if requested by CBP or a PGA.
     For the purposes of this test phase, APHIS, EPA and NOAA 
forms can be submitted only with ACE entry summaries that are certified 
for release.

III. Documents Supported in the First Phase of the Test

    The first test phase is limited to the transmission of documents 
specified in this notice. The CBP form and commercial documents 
supported in this first phase of the DIS test and covered by this 
notice are Commercial Invoices, Packing Lists, and Invoice Working 
Sheets. The PGA related forms and documents supported in this first 
phase of the DIS test and covered by this notice are as follows:
     TSCA Import Certification Form
     EPA Form 3520-21 Importation of Motor Vehicles and Engines 
(off road)
     EPA Form 3520-1 Importation of Motor Vehicles and Engines 
(on road)
     EPA Form 3540-1 Notice of Arrival of Pesticides and 
Devices
     EPA Pre-approved Vehicle/Engine Exemption Letter
     EPA Pesticide Label
     APHIS Ingredients List
     APHIS Phytosanitary Certificate
     APHIS Import Permit
     APHIS Transit Permit
     APHIS Notice of Arrival
     APHIS Pre-Clearance 203
     NOAA Form 370 Fisheries Certificate of Origin
     NOAA Toothfish Pre-Approval

Please be advised that this first phase of the DIS test is limited to 
the above CBP and PGA forms. Other forms may be referenced in the DIS 
Implementation Guidelines, but such forms are not eligible for the 
present DIS test.

IV. Recordkeeping

    Any form or document submitted via DIS is an electronic copy of an 
original document that is subject to the recordkeeping requirements of 
19 CFR Part 163. Every form or document transmitted through DIS must be 
a complete, accurate and unaltered copy of the original document.

V. Technical Specifications

    Images must be submitted in an XML via Secure FTP, Secure Web 
Services, existing EDI ABI MQ interfaces. All responses back to the 
importer and/or broker will also be sent in the form of an XML message. 
There are no technical restrictions on the Multipurpose Internet Mail 
Extension (MIME) file types that DIS will accept; however, JPEG, GIF, 
PDF, MS Word Documents, and MS Excel Spreadsheets are preferred. 
Additional information pertaining to technical specifications (see DIS 
Implementation Guidelines) can be accessed on CBP.gov at the following 
link: http://www.cbp.gov/xp/cgov/trade/automated/modernization/ace_edi_messages/catair_main/abi_catair/catair_chapters/document_imaging_igs/.

VI. 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.

VII. Waiver of Affected Regulations

    Any provision in 19 CFR including, but not limited to, provisions 
found in parts 141, 142, 143, and 151 thereof 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(b)). The DIS Implementation Guidelines and Customs and Trade 
Automated Interface Requirements (CATAIR) should be consulted for 
appropriate terms and definitions for purposes of this test. CATAIR 
documentation provides complete information describing how importers 
and/or their agents provide electronic import information and receive 
transmissions.

VIII. 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.
    Suspensions for misconduct will be administered by the Executive 
Director, Trade Policy and Programs, Office of International Trade, CBP 
Headquarters. A written notice proposing suspension will be issued to 
the participant that apprises the participant of the facts or conduct 
warranting suspension and informs the participant of the date 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. An appeal of a decision of proposed suspension 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, a suspension may be effective immediately.

IX. 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

[[Page 20837]]

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.

X. Development of ACE Prototypes

    A chronological listing of Federal Register publications detailing 
ACE test developments is set forth below.
     ACE Portal Accounts and Subsequent Revision Notices: 67 FR 
21800 (May 1, 2002); 70 FR 5199 (February 1, 2005); 69 FR 5360 and 69 
FR 5362 (February 4, 2004); 69 FR 54302 (September 8, 2004).
     ACE System of Records Notice: 71 FR 3109 (January 19, 
2006).
     Terms/Conditions for Access to the ACE Portal and 
Subsequent Revisions: 72 FR 27632 (May 16, 2007); 73 FR 38464 (July 7, 
2008).
     ACE Non-Portal Accounts and Related Notice: 70 FR 61466 
(October 24, 2005); 71 FR 15756 (March 29, 2006).
     ACE Entry Summary, Accounts and Revenue (ESAR I) 
Capabilities: 72 FR 59105 (October 18, 2007).
     ACE Entry Summary, Accounts and Revenue (ESAR II) 
Capabilities: 73 FR 50337 (August 26, 2008); 74 FR 9826 (March 6, 
2009).
     ACE Entry Summary, Accounts and Revenue (ESAR III) 
Capabilities: 74 FR 69129 (December 30, 2009).
     ACE Entry Summary, Accounts and Revenue (ESAR IV) 
Capabilities: 76 FR 37136 (June 24, 2011).

    Dated: April 2, 2012.
Allen Gina,
Assistant Commissioner, Office of International Trade.
[FR Doc. 2012-8246 Filed 4-5-12; 8:45 am]
BILLING CODE 9111-14-P