[Federal Register Volume 78, Number 166 (Tuesday, August 27, 2013)]
[Notices]
[Pages 52958-52962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20878]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Announcement of Test Concerning Manifesting and Entry of Residue
Found in Instruments of International Traffic (IITs)
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: General notice.
-----------------------------------------------------------------------
SUMMARY: This document announces U.S. Customs and Border Protection's
(CBP's) plan to conduct a test concerning the manifesting and entry of
residual cargo found in containers arriving as Instruments of
International Traffic (IIT). The document also announces that CBP will
begin enforcement of HQ Ruling H026715, dated June 19, 2009, when the
test announced in this document begins. In HQ Ruling H026715, CBP held
that in order to ensure the safety and security of the transportation
of IIT containers and the CBP Officers who may examine or work in close
proximity to them, IIT containers with residual cargo should not be
manifested as empty consistent with the advance cargo information
reporting requirements authorized pursuant to 19 U.S.C. 2071 note. The
[[Page 52959]]
modified ruling, HQ H026715, requires that residue within containers be
``classified, entered, and manifested.''
CBP recognizes that the trade community believes that the
requirement to manifest and enter for residual cargo in accordance with
the current regulations would be overly burdensome. As a result, CBP,
with input from the trade, has developed a test in order to determine a
less burdensome way for the trade to manifest and enter residual cargo
in IITs while also ensuring the safety and security of CBP Officers and
the transportation of such IITs. Accordingly, this test will allow for
a new type of entry designed to capture residue in containers that will
be cleaned or re-filled that can be made off the manifest through an
indicator that identifies it as a Residue Entry.
Parties not wishing to participate in the test, however, will be
required to ``classify, enter, and manifest'' (formal or informal
entry) the residual cargo in accordance with the underlying statutes
and their implementing regulations when the test begins.
DATES: CBP will begin enforcement of the requirement to manifest and
enter residual cargo beginning November 25, 2013. The test announced in
this notice will also commence on that date and will run for a period
of one year, which may be extended. CBP will begin an evaluation of the
test approximately 90 days after commencement.
ADDRESSES: Comments concerning this notice or any aspect of the test
may be submitted via email, with a subject line identifier reading
``Comment on the Residue Manifesting and Entry Test'', to [email protected].
FOR FURTHER INFORMATION CONTACT: Amy E. Hatfield, Branch Chief, Cargo
Conveyance & Security, Office of Field Operations, (202) 365-2698.
SUPPLEMENTARY INFORMATION:
Background
A notice was published in the Customs Bulletin, Vol. 42, No. 35, on
August 20, 2008, pursuant to section 625(c)(1), Tariff Act of 1930 (19
U.S.C. 1625(c)(1)), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act (Pub. L. 103-182, 107 Stat. 2057, December 8, 1993),
proposing to modify HQ Ruling 113219, dated July 12, 1994, which
allowed containers meeting the requirements of 19 U.S.C. 1322(a) and 19
CFR 10.41a as IITs and containing residual chemicals to be entered as
empty containers.
Consistent with CBP's treatment of similar commodities such as
petroleum slops, and to ensure the safety and security of the
transportation of such containers and CBP Officers, CBP proposed to
modify the ruling to hold that the containers should not be manifested
as empty and that the chemical residue contained therein should be
``classified, entered, and manifested.'' This position is in
furtherance of the advance cargo information reporting requirements
authorized pursuant to 19 U.S.C. 2071 note; and the implementing CBP
regulations set forth in 19 CFR 4.7, 123.91, and 123.92. The trade was
invited to submit comments on the proposed modification of the 1994
ruling.
Upon review of the comments from the trade on the proposed
modification, CBP issued a modification of HQ 113219 on June 19, 2009.
This modification, HQ H026715, was published in the Customs Bulletin,
Vol. 43, No. 28, on July 17, 2009. The modification ruling confirmed
the reasoning of the proposed modification, stating that in order to be
consistent with CBP's treatment of similar commodities, such as
petroleum slops, and to ensure the safety and security of the
transportation of such containers and the CBP Officers who may examine
or work in close proximity to them, these containers should not be
manifested as empty because these containers are not completely empty.
CBP has an interest in knowing this for border and CBP Officer
security. This ruling became effective for containers arriving in the
United States on or after August 16, 2009.
Due to concerns voiced by the trade about the burdens imposed by
this ruling, CBP delayed enforcement of this ruling. CBP established a
residual cargo working group that included representation from CBP as
well as trade alliances from each mode of transportation, in order to
implement this ruling. The working group helped establish manifest
threshold limits for residual cargo that would be permissible to enter
as residual cargo. The working group also helped establish methods of
importation that would comply with the 2009 ruling in a less burdensome
way. It was determined that CBP would need a test to evaluate the
effectiveness of the procedures developed by the working group. As CBP
began developing the test, it met many times with the trade and
conducted a series of webinars with them. See http://www.cbp.gov/xp/cgov/trade/trade_outreach/info_iits/.
Implementation of an Operational Test
Through this Notice, CBP is announcing the commencement of the
Residue Manifesting and Entry Test (``Residue Test'') that will provide
specific test procedures concerning how to manifest and enter residual
cargo. The Residue Test will require suspension of certain CBP
regulations (title 19 of the Code of Federal Regulations (CFR)).
Current electronic functionality will be used in the implementation of
this test.
Authority for Test
The Residue Test is being conducted in accordance with Sec.
101.9(a) of the CBP regulations (19 CFR 101.9(a)), which prescribes
general test requirements.
This Test Is Independent From ACE Implementation of Manifest
Requirements (M1 Vessel and Rail Manifest)
In a Notice published in the Federal Register on March 29, 2012, 77
FR 19030, CBP announced that the Automated Commercial Environment (ACE)
will be the only CBP-approved electronic data interchange (EDI) system
for submitting required advance cargo information for ocean and rail
cargo (referred to as the ACE e-manifest Ocean and Rail M1 manifest
functionality). The March 29, 2012 Notice further announced that the
effective date of this change was September 29, 2012. This Notice is
unrelated to the ACE M1 Vessel and Rail Manifest Notice mandating the
use of ACE in the vessel and rail modes. The Residue Test announced
here applies to the manifesting and entry of residue notwithstanding
the system in which the electronic submission of cargo information
occurs.
Eligibility for the Residue Test
The Residue Test is open to any party submitting manifest or
advance cargo information or any other party who has the right to make
entry under 19 U.S.C. 1484.
Participants and non-participants in the Residue Test will be
afforded the ability to help CBP develop procedures and engage CBP in
discovering efficiencies that might be achieved in the manifesting and
processing of entries of residual cargo. It should be noted that non-
participation in this test does not relieve one from the obligation to
manifest and enter residual cargo. Furthermore, one's liability for
user fees under 19 U.S.C. 58c is not affected by this test.
[[Page 52960]]
Ports Where Test Will Occur
The Residue Test may be used nationwide.
Test Procedures
Procedures for each mode (rail, truck, ocean, and air) of transport
are described separately in this Notice, and are as follows:
1. Test Procedures for Rail Environment
a. In General
All data must be submitted electronically. All containers must be
manifested whether they are empty or contain residue.
b. Containers Arriving Clean--No Residue
Any container arriving clean (i.e., with no residue) must be
manifested as an empty IIT, consistent with current requirements. Entry
is not currently required for any empty container manifested in this
fashion and will not be required under the Residue Test.
c. Containers Arriving With Cargo Exceeding 7%
Any arriving container that contains cargo exceeding 7% of the
total capacity of the container by weight or volume, using industry
standards, must be manifested. A consumption entry will be required,
either formal or informal, depending upon its value and applicable
regulations. Entry requirements and payment of duties, taxes, and fees,
as applicable and as provided by law, will apply.
d. Containers Arriving With Cargo Not Exceeding 7%
Any arriving container with cargo not exceeding 7% of the
container's total capacity by weight or volume, using industry
standards, will be considered to contain residual cargo and the
container must be manifested and entered as having residue.
If the residual cargo has no commercial value, i.e., the container
will either be cleaned in accordance with the law, with the residue
destroyed, or re-filled for export, CBP will: (1) Accept the
declaration of the carrier, or the importer of record if other than the
carrier, that the residue has no commercial value ($0 value) and the
country of origin is the country from which the container is arriving;
(2) require that the type of residue be described up to the 6-digit
HTSUS; and (3) require a residue entry designating that the residue
cargo has no commercial value.
CBP will release this merchandise under the low value mechanism of
19 U.S.C. 1321, so no merchandise processing fee will be due. For
purposes of the Residue Test, this type of entry will be known as a
residue entry.
Regulations concerning the making of entry of low value shipments
are waived for this portion of the Residue Test. Under the Residue
Test, the carrier will have the right to make a residue entry and entry
can be made off the manifest with no further documentary requirements
if the container is below the set limits.
e. ACE System Procedures for IITs With Residue Not Exceeding 7% (Rail
Manifest)
(1) Carrier sends Bill of Lading (BOL) message (X12 309) with Bill
Type 23 indicated.
(2) When Bill Type 23 is used, the carrier must also submit value
(0 to 200) and country of origin information. Additionally, a reference
identifier, ZF, has been created specifically for this type of
shipment.
(3) Bills of Type 23 with the ZF qualifier will be identified by
the system to the CBP officer reviewing the manifest for review and
mass posting of release.
(4) Release Notifications (1C) will be sent electronically to the
carrier and Secondary Notify Parties as currently enabled in the
system.
f. Recordkeeping
A manifest record indicating a residue entry has been filed will be
sufficient to meet recordkeeping requirements for residue entries under
the 7% threshold. The record must be maintained by the entry filer in
accordance with 19 CFR Part 163.
2. Test Procedures for Truck Environment
a. In General
All data must be submitted electronically. All containers must be
manifested whether they are empty or contain residue.
b. Containers Arriving Clean--No Residue
Any container arriving clean (i.e., with no residue) must be
manifested as an empty IIT, consistent with current requirements. Entry
is not currently required for any empty container manifested in this
fashion and will not be required under the Residue Test.
c. Containers Arriving With Cargo Exceeding 3%
Any arriving container that contains cargo exceeding 3% of the
total capacity of the container by weight or volume, using industry
standards, must be manifested. A consumption entry will be required,
either formal or informal, depending upon its value and applicable
regulations. Entry requirements and payment of duties, taxes, and fees,
as applicable and as provided by law, will apply.
d. Containers Arriving With Cargo Not Exceeding 3%
Any arriving container with cargo not exceeding 3% of the
container's total capacity by weight or volume, using industry
standards, must be manifested and entered as having residual cargo.
If the residual cargo has no commercial value, i.e., the container
will either be cleaned, in accordance with the law, with the residue
destroyed or re-filled for export, CBP will: (1) Accept the declaration
of the carrier or the importer of record if other than the carrier,
that the residue has no commercial value ($0 value) and the country of
origin is the country from which the IIT is arriving; (2) require that
the type of residue be described up to the 6-digit HTSUS; and (3)
require a residue entry designating that the residue cargo has no
commercial value.
CBP will release this merchandise under the low value mechanism of
19 U.S.C. 1321 so no merchandise processing fee will be due. For
purposes of the Residue Test, this type of entry will be known as a
residue entry.
Regulations concerning the making of entry of low value shipments
are waived for this portion of the Residue Test. For purposes of the
Residue Test, the carrier will have the right to make a residue entry
and entry can be made off the manifest with no further documentary
requirements if the container is below the set limits.
e. System Procedures for Trucks Arriving with IITs with Residue Not
Exceeding 3%
(1) In the Manifest Bill of Lading details the carrier would use
either type code `13' for Section 321 release without the Food and Drug
Administration-Bio Terrorism Act (FDA-BTA) considerations, or type code
`35' for 321 release with FDA-BTA considerations.
(2) If the carrier uses the ACE Portal for submission, these
identifiers are all drop down values in the manifest creation screens.
(3) If either type code is used, the carrier must supply `Customs
Shipment Value' and `country of origin'.
(4) Value submitted must currently be greater than 0 and less than
$200. CBP is working to change this edit to accept 0 but will establish
a value of $1 as an acceptable alternative to 0 if not available.
[[Page 52961]]
(5) CBP will review at arrival and post release.
(6) Release Notifications (1C) will be sent electronically to the
carrier and Secondary Notify Parties as currently enabled in the
system.
f. Recordkeeping
A manifest record indicating a residue entry has been filed will be
sufficient to meet recordkeeping requirements for residue entries under
the 3% threshold. The record must be maintained by the entry filer in
accordance with 19 CFR Part 163.
3. Test Procedures for Ocean Environment
a. In General
All data must be submitted electronically. All containers must be
manifested whether they are empty or contain residue.
b. Container Arriving Clean--No Residue
Any container arriving clean (i.e., with no residue) must be
manifested as an empty IIT, consistent with current requirements. Entry
is not currently required for any empty container manifested in this
fashion and will not be required under the Residue Test.
c. Container Arriving With Cargo Exceeding 3%
Any arriving container that contains cargo exceeding 3% of the
total capacity of the container by weight or volume, using industry
standards, must be manifested. A consumption entry will be required,
either formal or informal, depending upon its value and applicable
regulations. Entry requirements and payment of duties, taxes, and fees,
as applicable and as provided by law, will apply.
d. Container Arriving With Cargo Not Exceeding 3%
Any arriving container with residual cargo not exceeding 3% of the
container's total capacity by weight or volume, using industry
standards, must be manifested and entered as having residue.
If the residue has no commercial value, i.e., the IIT will either
be cleaned, in accordance with the law, with the residue destroyed or
re-filled for export, CBP will: (1) Accept the declaration of the
carrier, or the importer of record if other than the carrier, that the
residue has no commercial value ($0 value) and the country of origin is
the country from which the IIT is arriving; (2) require that the type
of residue be described up to the 6-digit HTSUS; and (3) require a
residue entry designating that the residue cargo has no commercial
value.
CBP will release this merchandise under the low value mechanism of
19 U.S.C. 1321, so that no merchandise processing fee or harbor
maintenance fee will be due. For purposes of the Residue Test, this
type of entry will be known as a residue entry.
Regulations concerning the making of entry of low value shipments
are waived for this portion of the Residue Test. For purposes of the
Residue Test, the carrier will have the right to make a residue entry
and entry can be made off the manifest with no further documentary
requirements if the container is below the set limits.
e. ACE System Procedures for Containers With Residue Not Exceeding 3%
(Vessel Manifest)
(1) Regular Bill submitted electronically via EDI process at the
master or simple bill level.
(2) Qualifiers for IIT with Residue (TBD) should be the first line
of text in the description field, which will include value and country
of origin information.
(3) A request for clearance should be made to the CBP port of
arrival via existing port procedures for release request notifications.
(4) CBP will manually post release in ACE.
(5) Release Notifications (1C) will be sent electronically to the
carrier and Secondary Notify Parties as currently enabled in the
system.
f. Recordkeeping
A manifest record indicating a residue entry has been filed will be
sufficient to meet recordkeeping requirements for residue entries under
the 3% threshold. The record must be maintained by the entry filer in
accordance with 19 CFR Part 163.
4. Test Procedures for the Air Environment
a. In General
All data must be submitted electronically. All containers must be
manifested whether they are empty or contain residue.
b. Container Arriving Clean--No Residue
Any container arriving clean (i.e., with no residue) must be
manifested as an empty IIT, consistent with current requirements. Entry
is not currently required for any empty container manifested in this
fashion and will not be required under the Residue Test.
c. Container Arriving With Cargo Exceeding 5%
Any arriving container that contains cargo exceeding 5% of the
total capacity of the container by weight or volume, using industry
standards, must be manifested. A consumption entry will be required,
either formal or informal, depending upon its value and applicable
regulations. Entry requirements and payment of duties, taxes, and fees,
as applicable and as provided by law, will apply.
d. Container Arriving With Cargo Not Exceeding 5%
Any arriving container with cargo not exceeding 5% of the
container's total capacity by weight or volume, using industry
standards, must be manifested and entered as having residue.
If the residual cargo has no commercial value, i.e., the IIT will
either be cleaned, in accordance with the law, with the residue
destroyed or re-filled for export, CBP will: (1) Accept the declaration
of the carrier, or the importer of record if other than the carrier,
that the residue has no commercial value ($0 value) and the country of
origin is the country from which the IIT is arriving; (2) require that
the type of residue be described up to the 6-digit HTSUS; and (3)
require a residue entry designating that the residue cargo has no
commercial value.
CBP will release this merchandise under the low value mechanism of
19 U.S.C. 1321, so that no merchandise processing fee will be due. For
purposes of the Residue Test, this type of entry will be known as a
residue entry.
Regulations concerning the making of entry of low value shipments
are waived for this portion of the Residue Test. For purposes of this
test, the carrier will have the right to make a residue entry and entry
can be made off the manifest with no further documentary requirements
if the commercial value is below the set limits.
e. System Procedures for IIT with Residue Not Exceeding 5% (Air
Manifest)
(1) If Standard Air Freight
(a) A Regular Bill should be submitted electronically via EDI
process.
(b) Qualifiers for IIT with Residue (TBD) should be the first line
of text in the description field, which will include the value and
country of origin information.
(c) A request for clearance should be made to the CBP port of
arrival via existing port procedures for release request notifications.
[[Page 52962]]
(d) CBP will manually post release in Air Manifest (AMS).
(e) Release Notifications (1C) will be sent electronically to the
carrier and Secondary Notify Parties as currently enabled in the
system.
(2) If Express Air Shipment
(a) A request using entry type 86 can be filed in Air AMS Express
codes.
(b) If entry type 86, then value and country of origin are required
fields.
(c) System identifies shipment to CBP users at arrival port.
(d) Release Notifications are sent electronically as enabled in the
system.
f. Air Cargo Advance Screening (ACAS) Filing
ACAS filings will not be required for containers with residue in
the air environment.
g. Recordkeeping
A manifest record indicating a residue entry has been filed will be
sufficient to meet record keeping requirements for entries of residue
under the 5% threshold. The record must be maintained by the entry
filer in accordance with 19 CFR Part 163.
Bonding
No additional bonding is required for the Residue Test.
Waiver of Regulations
Any provision in title 19 of the CFR including, but not limited to,
provisions found in Subpart C to Part 143 and Subpart C to Part 128
relating to entry/entry summary processing and any manifest reporting
requirements set forth in Part 4, 122, or 123 that are inconsistent
with the requirements set forth in this notice are waived for the
duration of the Residue Test. See 19 CFR 101.9(a).
Any and all other government agency requirements relating to
transport, manifesting, and entry must be met, including the
Environmental Protection Agency requirements that are set forth in 19
CFR Part 12.
Enforcement
Residue cargo must be entered and manifested either in compliance
with the current regulations or in compliance with the test procedures
set forth in this notice as of 90 days after the date of publication in
the Federal Register. While CBP plans to phase in enforcement of this
requirement, both participants and non-participants in this test must
comply with all other CBP laws and regulations.
Test Duration
The Residue Test will begin on or about 90 days after the date of
publication in the Federal Register and will run for one year, unless
extended. If the Residue Test is successful, amendments to the CBP
regulations will be proposed.
Test Evaluation
All interested parties are invited to comment on any aspect of this
test at any time. To ensure adequate feedback, participants are
encouraged to provide an evaluation of this test. CBP needs comments
and feedback on all aspects of this test to determine whether to
modify, alter, expand, limit, continue, end or implement this program
by regulation.
Dated: August 22, 2013.
David J. Murphy,
Acting Assistant Commissioner, Office of Field Operations.
[FR Doc. 2013-20878 Filed 8-26-13; 8:45 am]
BILLING CODE 9111-14-P