[Federal Register Volume 78, Number 223 (Tuesday, November 19, 2013)]
[Notices]
[Pages 69434-69436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-27651]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Post-Summary Corrections to Entry Summaries Filed in ACE Pursuant 
to the ESAR IV Test: Modifications and Clarifications

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

ACTION: General notice.

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SUMMARY: This notice announces modifications and clarifications 
pertaining to U.S. Customs and Border Protection's (CBP's) Entry 
Summary, Accounts and Revenue (ESAR IV) test program concerning the 
processing of post-summary corrections (PSCs) to entry summaries that 
are filed in the Automated Commercial Environment (ACE). The 
modifications to the ESAR IV test program will allow filers greater 
access to data filed in ACE as it relates to the original entry and any 
subsequent PSC, limit certain additional data elements from being 
changed via PSC, and preclude a PSC on any entry that has been 
protested or where merchandise covered by the original entry has been 
conditionally released and its right to admission has not been 
determined. This notice also clarifies bond obligations when a PSC has 
been filed, CBP's authority to reject a PSC, and the meaning of certain 
terms as they relate to the ESAR IV test.

DATES: The ESAR IV test modifications will go into effect December 19, 
2013, 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 
email to Monica Crockett at [email protected]. Please indicate 
``ESAR IV (Post-Summary Corrections Processing)'' in the subject line 
of your email.

FOR FURTHER INFORMATION CONTACT: For policy-related questions, contact 
Virginia McPherson via email 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. Automated Commercial Environment (ACE) Test Programs

    Automated Commercial Environment (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 
National Customs Automation Program (NCAP) components. A chronological 
listing of Federal Register publications detailing ACE test 
developments is set forth below in section V of this document. 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.

II. ACE Entry Summary, Accounts and Revenue (ESAR IV) Test Program

    In a notice published in the Federal Register (76 FR 37136) on June 
24, 2011, U.S. Customs and Border Protection (CBP) announced a plan to 
conduct a NCAP test concerning new ACE ESAR IV capabilities (``ESAR IV 
test''). The ESAR IV test permitted importers to file post-summary 
corrections (PSCs) of certain ACE entry summaries using the Automated 
Broker Interface (ABI). Importers and their brokers were also allowed 
to use ABI to file PSCs to those pre-liquidation ACE entry summaries 
that were accepted by CBP, fully paid, and under CBP control.

III. Modifications to the ESAR IV Test

A. Access by Filers to Entry and PSC Data

    Under the terms of the original ESAR IV test, as set forth in 
Subsection II.H of that document (76 FR 37138), the full content of the 
original entry summary was to be provided only to the filer of that 
entry summary. A subsequently filed PSC was deemed to fully replace the 
original entry summary, and full information with respect to the PSC 
was only available to the filer of the PSC and the filer of the 
original entry summary did not have access to the new filing. 
Similarly, if a second PSC was filed, it fully replaced the previously 
filed PSC and full information was accessible only to the filer of the 
second PSC. The filer of the original entry summary or the filer of the 
previously filed PSC were notified that a new replacement entry

[[Page 69435]]

summary had been filed by a PSC, but did not have access to the new 
filing.
    CBP received considerable feedback from the trade community and 
test participants regarding the opportunity for increased access to 
information in PSCs. In response to the test participants' requests for 
greater access, and after due consideration, CBP has determined it will 
modify the ESAR IV test to allow the original entry summary filer, and 
any subsequent PSC filer, full access to all entry summary data 
contained in a subsequent PSC. Therefore, by running a report or query 
in ACE, any filer can see the complete entry summary data as modified 
by a PSC.
    Under the terms and conditions of the modification announced in 
this notice, when a PSC is filed, the filer of the original entry 
summary will be notified that the entry summary has been fully replaced 
by a PSC and the original filer will have full access to the new 
filing. Similarly, if a subsequent PSC is filed, it fully replaces the 
previously filed PSC, and the filer of the first PSC will be notified 
that a new replacement entry summary has been filed and will have full 
access to the new filing. All of the information in the latest version 
of the entry summary and all subsequent PSCs will be accessible to all 
of the filers.
    By participating under the terms and conditions of this test, 
importers and filers acknowledge that by filing a PSC they are making 
any commercial and confidential business information contained within 
the PSC available to all the parties described in this test, i.e. the 
filer of the original entry summary and any filers of a PSC correcting 
that entry summary. An importer should not file a PSC under the terms 
and conditions of this test if the importer does not want the original 
entry summary filer or PSC filer to have full access to all information 
contained within a subsequent PSC that was filed by a different filer.
    It is noted that the recordkeeping obligations set forth in 76 FR 
37138 remain unchanged (i.e., entry filers and PSC filers only have 
recordkeeping responsibilities for their own submissions and do not 
incur recordkeeping obligations related to the submissions of others).

B. Data Elements That Cannot Be Changed Via PSC

    The ESAR IV test notice, in Subsection II.E of that document (76 FR 
37138), listed data elements that cannot be changed via PSC. This 
notice announces the following three additional data elements that 
cannot be changed via PSC:
     Date of Entry
     Bond
     Surety Code

C. Criteria and Rules for Filing a PSC

    The ESAR IV test notice, in Subsection II.D of that document (76 FR 
37137), listed criteria and rules for filing a PSC. This notice 
announces two new criteria and one modification to an existing 
criterion. The new criteria are as follows:
     A PSC cannot be made on entries that have been protested; 
and
     A PSC cannot be made when any merchandise covered by the 
original entry has been conditionally released and its right to 
admission has not been determined.
    The modified criterion reflects that where a PSC results in a 
formal (type 01) entry being changed/corrected to indicate it is an 
Antidumping/Countervailing (type 03) entry, or if a PSC for a change/
correction to a type 03 entry results in additional AD/CVD duties due, 
the importer of record must deposit the associated AD/CVD duties (or 
bond, if allowed) at the same time the PSC is filed and failure to file 
the deposit of the duties (or bond, if allowed) will result in 
rejection of the PSC and may result in liquidated damages. Such failure 
may also subject the importer to penalties under 19 U.S.C. 1592, or the 
broker to penalties under 19 U.S.C. 1641, as the facts and 
circumstances warrant. This is a change from the terms of the original 
ESAR IV test, where a failure to file the deposit of duties did not 
result in a rejection of the PSC.

IV. Clarifications to the ESAR IV Test Program

A. Bonding and PSC Filing

    The ESAR IV test program did not address the subject of bonds and 
bonding as affected by a PSC. To provide clarity in this area, and 
affirm that for purposes of the ESAR IV test program the same bond and 
surety remain on an entry for which a PSC is filed, this notice 
announces the following ESAR IV bonding guidelines:
     If, prior to a PSC filing, a bond is filed pursuant to 19 
CFR 142.4(b), or 19 CFR 141.20 (as authorized by 19 U.S.C. 1485(d)), 
that bond will continue to be obligated for the entry. All obligations 
vesting under the original entry, prior to the filing of a PSC, remain 
vested and are not obviated by a subsequent PSC filing.
     If a PSC is filed and accepted by CBP, the bond obligated 
at the time of entry, as well as any subsequent replacement bonds or 
superseding bonds, remain obligated for the original entry and the 
entry summary against which the PSC was filed.
     New bond data will not be accepted through a PSC.

B. Rejection of a PSC

    While not explicitly stated in the ESAR IV test notice published in 
the Federal Register (76 FR 37136) on June 24, 2011, this notice 
clarifies that CBP retains the authority to reject any PSC that may be 
found to be incomplete or not in compliance with the requirements 
described in that test. A PSC which has been rejected by the system 
back to the filer may be re-transmitted within two (2) business days of 
the rejection. If there is no timely re-transmission, CBP will set the 
previously accepted entry for immediate liquidation, unless the 
liquidation of such previously accepted entry has been suspended 
pursuant to statute or court order.

C. Deemed Liquidation

    Pursuant to 19 U.S.C. 1504(a), consumption entries are ``deemed 
liquidated'' at a rate of duty, value, quantity and amount of duties 
asserted by the importer of record. For purposes of the ESAR IV test, 
CBP interprets the statutory phrase ``deemed liquidation'' to mean rate 
of duty, value, quantity and amount of duties asserted at the time of 
acceptance of the PSC.

D. Definitions

    This notice announces the following definitions for purposes of the 
ESAR IV test program:
     Complete or Full Replacement. The term ``complete or full 
replacement'' means the replacement of all data elements in an original 
entry summary filed in ACE with new data elements found in a 
superseding PSC. A complete or full replacement does not mean that the 
replaced data is null and void. Any obligations that vested under the 
original entry or entry summary remain valid. Obligations that vest 
subsequent to the replacement are attributable to the PSC. For example, 
when an original entry summary is filed outside the 15-calendar day 
time period for filing entry and liquidated damages are incurred, the 
filing of a PSC on that entry summary is deemed to ``replace'' the 
entry summary but does not obviate the liquidated damages that were 
assessed properly against the original filing.
     Under U.S. Customs and Border Protection (CBP) Review. The 
term ``under U.S. Customs and Border Protection (CBP) review'' means 
the period of time when CBP is reviewing the data elements and 
supporting

[[Page 69436]]

documents of either an original entry summary or PSC prior to CBP's 
disposition of the original entry summary or PSC.

V. 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).
 NCAP Test Concerning the Document Imaging System: 77 FR 
20835 (April 6, 2012).
 Modification of NCAP Test Concerning ACE Cargo Release 
(formerly known as Simplified Entry): 78 FR 66039 (November 4, 2013)

    Dated: November 14, 2013.
Richard F. DiNucci,
Acting Assistant Commissioner, Office of International Trade.
[FR Doc. 2013-27651 Filed 11-18-13; 8:45 am]
BILLING CODE 9111-14-P; 9111-15-P; 9111-16-P