[Federal Register Volume 79, Number 229 (Friday, November 28, 2014)]
[Notices]
[Pages 70881-70886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28146]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Announcement of eBond Test

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

ACTION: General notice.

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SUMMARY: This notice announces U.S. Customs and Border Protection's 
(CBP's) plan to conduct a voluntary National Customs Automation Program 
test concerning automation of CBP's bond program (eBond test). The 
eBond test utilizes an automated system (eBond system) that provides 
for the transmission of electronic bond contracts (eBonds) between 
principals and sureties, with CBP as third-party beneficiary, in the 
Automated Commercial Environment (ACE) for the purpose of linking those 
eBonds to the transactions they are intended to secure. All eBonds 
transmitted pursuant to this test must be transmitted to ACE 
electronically, either via the CBP-approved Electronic Data Interchange 
(EDI) or emailed to CBP for manual input into ACE. The transmission of 
eBonds to CBP must be made by a surety or surety agent. The eBond 
system works with ACE to ensure that transactions secured by an eBond 
have the proper bond coverage to protect the revenue and secure legal 
compliance. The eBond system is intended to establish a single 
repository for the centralization of all eBonds within the Office of 
Administration's Revenue Division, to harmonize and enhance CBP's bond 
processes, and to eliminate flaws in the execution of customs bonds, 
which may lead to increased legal risk for CBP. It is anticipated that 
the eBond test will reduce paper processing, expedite cargo release, 
allow for bonds to be transmitted beyond regular CBP business hours, 
and enhance traceability for audit purposes. The eBond test is intended 
to evaluate the automation of CBP's bond program, its impact on trade, 
and CBP's ability to enforce applicable laws and protect the revenue. 
This notice invites public comment concerning any aspect of the test, 
describes the eligibility, procedural and documentation requirements 
for voluntary participation in the test, and outlines the development 
and evaluation methodology to be used in the test.

DATES: The eBond test will commence on January 3, 2015, and will run 
for approximately two years, subject to any extension, modification, or 
early

[[Page 70882]]

termination as announced by way of notice in the Federal Register. 
CBP's evaluation of the test will be ongoing during the test period. 
Requests to participate and comments on any aspect of the test may be 
submitted to CBP for the duration of the test. CBP will notify an 
interested surety via email of its test participation status upon 
receipt and review of the surety's eBond test participation request.

ADDRESSES: Comments and/or questions concerning this notice or any 
aspect of the test may be submitted to CBP via email to 
[email protected], with the subject line identifier reading 
``Comment/Questions on eBond test.'' Requests for a surety filer code, 
and surety requests to participate in the eBond test should be sent to 
[email protected], with a subject line identifier specifying 
either ``Surety filer code request'' or ``Surety request to participate 
in eBond test.'' eBonds transmitted to CBP for manual input into ACE by 
the Office of Administration's Revenue Division should be sent to 
[email protected], with the specific email header information 
set forth in CBP's ``eBond Policies and Procedures'' Web page located 
at http://www.cbp.gov/trade/trade-community/programs-administration/bonds/ebond.

FOR FURTHER INFORMATION CONTACT: For policy related questions, contact 
Kara Welty, Chief, Debt Management Branch, Revenue Division, Office of 
Administration, at [email protected]. For technical questions, contact 
John Everett, Entry Summary, Accounts, and Revenue Branch, ACE Business 
Office, Office of International Trade, at [email protected].

SUPPLEMENTARY INFORMATION:

Background

National Customs Automation Program: Electronic Bonds as Planned 
Component

    Title VI of the North American Free Trade Agreement Implementation 
Act (the Act), Public Law 103-182, 107 Stat. 2057 (Dec. 8, 1993), 
contains provisions pertaining to Customs Modernization (107 Stat. 
2170). Subtitle B of title VI establishes the National Customs 
Automation Program (NCAP), an automated and electronic system for the 
processing of commercial importations. Section 631 in Subtitle B of the 
Act creates section 411 through 414 of the Tariff Act of 1930 (19 
U.S.C. 1411-1414). These sections define and list the existing and 
planned components of the NCAP (section 411), promulgate program goals 
(section 412), provide for the implementation and evaluation of the 
program (section 413), and provide for Remote Location Filing (section 
414). Section 411(a)(2)(D) lists the electronic filing of bonds as a 
planned NCAP component.
    A primary objective of the NCAP is customs modernization through 
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 CBP and stakeholders. The 
ability to meet these objectives depends on successfully modernizing 
CBP's business functions and the information technology that supports 
those functions.

Development of the Electronic Bond Concept

    CBP's bond program has been the subject of several evaluations, 
including a CBP-commissioned 2003 independent report that examined the 
efficacy of the agency's continuous bond program. See ``Grant Thornton 
Review of Customs Continuous Transaction (Entry) Bonds'' dated April 3, 
2003. That report recommended that CBP centralize its continuous bond 
program to increase efficiency and uniformity. In 2011, the Department 
of Homeland Security's Office of the Inspector General conducted an 
audit of CBP's single transaction bond (STB) program, and found 
deficiencies in bond retention, accuracy and completion, valuation, as 
well as problems with cargo being released prior to execution of bonds. 
See ``Efficacy of Customs and Border Protection's Bonding Process,'' 
OIG 11-92, dated June 27, 2011, available for viewing at http://www.oig.dhs.gov/assets/Mgmt/OIG_11-92_Jun11.pdf. The OIG recommended 
centralization and automation of the STB program and this objective was 
adopted as a CBP mission priority.
    A Notice of Proposed Rulemaking (NPRM) entitled ``Customs and 
Border Protection's Bond Program'' was published in the Federal 
Register (75 FR 266) on January 5, 2010. The document proposed 
amendments to the CBP regulations in title 19 of the Code of Federal 
Regulations (CFR) to modernize CBP's bond program by centralizing the 
filing, review and approval of continuous bonds at CBP's Revenue 
Division (RD) within the Office of Administration in Indianapolis, and 
by removing or amending certain bond requirements. It is anticipated 
that a final rule adopting the proposed amendments that pertain to 
centralization of the continuous bond program at the RD and permitting 
the electronic transmission of both continuous bonds and STBs to CBP 
via the Electronic Data Interchange (EDI) will be published in the 
Federal Register in the near future.
    In preparation for the development and deployment of an automated 
bond program, CBP engaged in regular outreach with stakeholders, 
including sureties, surety agents, customs brokers, trade groups and 
other government agencies with a view to obtaining meaningful feedback 
on existing systems and operations in order to build a mutually 
beneficial automated bond system. In early 2014, CBP began building the 
eBond system. CBP developed the eBond system with ongoing feedback from 
the trade and subject matter experts. The eBond system serves to 
harmonize and enhance CBP bond processes pertaining to transmission, 
validation, maintenance, retention, and periodic review of all customs 
bonds, and establishes a single electronic repository for the 
centralization of those bonds within the RD. The eBond system benefits 
both CBP and the trade by reducing paper processing, expediting cargo 
release, expanding bond transmission capabilities beyond regular CBP 
business hours, and enhancing traceability for audit purposes.
    In June 2014, CBP released a Customs and Trade Automated Interface 
Requirements (CATAIR) document providing updated conventional trade 
interface information for the future deployment of electronic bond data 
functionality in ACE. The CATAIR update provides input and output EDI 
record formation for the electronic transmission of bonds to CBP. The 
document presents both the bond input transaction proprietary records 
used by sureties and surety agents to file and maintain an eBond as 
well as the output transaction proprietary records returned in 
response. The input record layouts describe the data elements required 
by the automated EDI interface. The output record layouts describe a 
response to filing as generated and returned by the automated EDI 
interface. CBP has posted these technical specifications on the CBP Web 
site at the following link: http://www.cbp.gov/document/guidance/customs-ebond-createupdate-catair-chapter.
    As additional functionality is released in ACE, CBP will continue 
to integrate these new capabilities with eBonds and

[[Page 70883]]

their associated transactions. Any updates to the technical formats 
will be posted at the above link. The trade community is encouraged to 
subscribe to the Cargo Systems Messaging Service (CSMS) at http://apps.cbp.gov/csms/csms.asp?display_page=1 to receive timely 
notifications on ACE as well as to receive any future changes or 
updates to these technical specifications.

Description of the eBond Test

    Pursuant to 19 U.S.C. 1623(b), bonds may be transmitted 
electronically to CBP pursuant to an authorized EDI system. As stated 
in 19 U.S.C. 1623(d), any bond transmitted to CBP through an authorized 
EDI system shall have the same force and effect and be binding upon the 
parties (e.g., the principal(s) and surety(ies)) as if the bond were 
manually executed, signed, and filed. CBP's eBond system is an 
automated environment that provides for the transmission of electronic 
bond contracts (eBonds) between principals and sureties, with CBP as 
third-party beneficiary, in ACE through an authorized EDI system for 
the purpose of linking those eBonds to the transactions they are 
intended to secure. CBP's eBond system is available for all bond 
requirements set out in Chapter 1 of title 19 of the CFR, including but 
not limited to bonds under 19 CFR 141.20 and 19 CFR 142.4, with the 
exceptions noted below.
    This notice announces CBP's plan to conduct a voluntary NCAP test 
of the eBond system. The test is intended to evaluate CBP's eBond 
system, its impact on trade, and CBP's ability to enforce applicable 
laws and protect the revenue. The eBond test will commence on January 
3, 2015, and will run for approximately two years, subject to any 
extension or early termination as announced by way of notice in the 
Federal Register.
    For purposes of the eBond test, the following definitions, 
conditions and criteria apply:
Definitions
     eBond. The term ``eBond'' means an electronic bond 
contract between principal(s) and surety(ies), with CBP as third-
party beneficiary, that is comprised of data elements required by 
the eBond system and that is transmitted by a surety or surety agent 
to CBP under the eBond test. Pursuant to 19 U.S.C. 1623(d), an eBond 
has the same force and effect and is binding upon the principal(s) 
and surety(ies) thereto as if such eBond had been manually executed, 
signed, and filed in full compliance with 19 CFR part 113.
     eBond system. The term ``eBond system'' means CBP's 
automated system for the transmission of eBonds in ACE for the 
purpose of linking those eBonds to the transactions they are 
intended to secure.
     eSTB. The term ``eSTB'' means a single transaction 
eBond.
     eBond rider. The term ``eBond rider'' means an 
electronic bond rider between principal(s) and surety(ies), with CBP 
as third-party beneficiary, that is comprised of data elements 
required by the eBond system and that is transmitted by a surety or 
surety agent to CBP under the eBond test. An eBond rider modifies an 
eBond in the same way that a bond rider modifies a customs bond. 
Pursuant to 19 U.S.C. 1623(d), an eBond rider has the same force and 
effect and is binding upon the principal(s) and surety(ies) thereto 
as if such eBond rider had been manually executed, signed, and filed 
in full compliance with 19 CFR part 113.
Method and Content of eBond and eBond Rider Transmission
    The transmission of all eBonds and eBond riders in ACE for purposes 
of this eBond test must be made by a surety or surety agent pursuant to 
one of the two methods described below.
    (1) EDI: eBonds and eBond riders may be transmitted in ACE 
electronically via EDI, and must contain the required data elements set 
forth in the CATAIR which comprise a reduced subset of the OMB-approved 
information collected on the CBP Form 301. The complete list of data 
elements for purposes of the eBond test can be found in the ACE ABI 
CATAIR--Customs eBond Create/Update Chapter at http://www.cbp.gov/trade/ace/catair.
    EDI is only available for the transmission of single transaction 
eBonds with the following Activity Codes:

                        Single Transaction Bonds
------------------------------------------------------------------------
          Activity code                        Activity name
------------------------------------------------------------------------
1................................  Importer or Broker.
1A...............................  Drawback Payments Refunds.
3................................  International Carrier.
6................................  Wool & Fur Products.
7................................  Bill of Lading.
8................................  Detention of Copyrighted Material.
10...............................  Court Costs for Condemned Goods.
16...............................  Importer Security Filing (ISF).
------------------------------------------------------------------------

    EDI is only available for the transmission of continuous eBonds and 
continuous eBond riders with the following Activity Codes:

                            Continuous Bonds
------------------------------------------------------------------------
          Activity code                        Activity name
------------------------------------------------------------------------
1................................  Importer or Broker.
1A...............................  Drawback Payments Refunds.
2................................  Custodian of Bonded Merchandise.
3................................  International Carrier.
3A...............................  Instruments of International Traffic.
3A3..............................  Carrier of International Traffic.
4................................  Foreign Trade Zone Operator.
5................................  Public Gauger.
11...............................  Airport Security Bond.
16...............................  Importer Security Filing (ISF).
------------------------------------------------------------------------

    (2) Email: eBonds and eBond riders may be emailed to CBP at 
[email protected] for manual input into ACE by the RD. eBonds 
transmitted via email must be on a CBP Form 301 signed by the 
principal(s) and surety(ies). eSTBs must include direction to CBP as to 
how the eSTB is to be used and the entry type the eSTB will secure. 
Email transmission is available for eBonds and eBond riders with any 
Activity Code. eBonds and eBond riders transmitted by this method are 
subject to policies and procedures issued by the Office of 
Administration for the manual input of eBonds and eBond riders.
Terms and Conditions for eBonds
    As stated in 19 U.S.C. 1623(d), any bond transmitted to CBP through 
an authorized EDI system shall have the same force and effect and be 
binding upon the parties (e.g., the principal(s) and surety(ies)) as if 
the bond were manually executed, signed, and filed.
    In order to secure payment of any duty, tax or charge and 
compliance with law or regulation as a result of activity covered by 
any condition identified in an eBond, the principal(s) and surety(ies) 
identified on the eBond bind themselves (jointly and severally) to the 
United States in the amount or amounts set forth in the eBond.
    A continuous eBond remains in force for one year beginning with the 
effective date and for each succeeding annual period, or until 
terminated. This continuous eBond constitutes a separate bond for each 
annual period in the amount(s) listed on the eBond for liabilities that 
accrue in each annual period. The intention to terminate this 
continuous eBond must be conveyed within the annual period and in the 
manner prescribed in this test notice.
    The principal(s) and surety(ies) agree that any charge against the 
eBond under any of the listed names is as though it was made by the 
principal(s). The principal(s) and surety(ies) agree that they are 
bound to the same extent as if they executed a separate eBond covering 
each set of conditions incorporated by reference to the CBP regulations 
into this eBond. If the surety(ies) fails to appoint an agent under 
Title 31, United States Code, Section 9306, the

[[Page 70884]]

surety(ies) consents to service on the Clerk of any United States 
District Court or the U.S. Court of International Trade, where suit is 
brought on this bond.
    Additional terms and conditions for each eBond are identified by 
the Activity Code for the eBond selected by the transmitting surety/
surety agent. The additional terms and conditions for each Activity 
Code mirror the correlating terms and conditions found on the CBP Form 
301. Selection of an Activity Code constitutes the agreement of the 
surety(ies) and principal(s) to be bound by the terms and conditions in 
the corresponding regulation:

------------------------------------------------------------------------
                                             CBP Regulations in which
  Activity code        Activity name          conditions are codified
------------------------------------------------------------------------
1................  Importer or broker...  19 CFR 113.62.
1A...............  Drawback Payments      19 CFR 113.65.
                    Refunds.
2................  Custodian of Bonded    19 CFR 113.63.
                    Merchandise
                    (continuous bond
                    only).
3................  International Carrier  19 CFR 113.64.
3A...............  Instruments of         19 CFR 113.66.
                    International
                    Traffic; (continuous
                    bond only).
3A3..............  Carrier of             19 CFR 113.64, 113.66.
                    International
                    Traffic.
4................  Foreign Trade Zone;    19 CFR 113.73.
                    (continuous bond
                    only).
5................  Public Gauger........  19 CFR 113.67.
6................  Wool & Fur Products    19 CFR 113.68.
                    Labeling Acts
                    Importation (single
                    transaction only).
7................  Bill of Lading         19 CFR 113.69.
                    (single transaction
                    only).
8................  Detention of           19 CFR 113.70.
                    Copyrighted Material
                    (single transaction
                    only).
9................  Neutrality (single     19 CFR 113.71.
                    transaction only).
10...............  Court Costs for        19 CFR 113.72.
                    Condemned Goods
                    (single transaction
                    only).
11...............  Airport Security Bond  19 CFR Part 113 App A.
16...............  Importer Security      19 CFR Part 113 App D.
                    Filing (ISF).
------------------------------------------------------------------------

    eBonds associated with the Activity Codes listed below contain 
additional unique terms and conditions; as such, they can only be 
emailed to the RD. CBP cannot accept eBonds associated with these 
Activity Codes via EDI at this time.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
12...............  International Trade    19 CFR Part 113 App B.
                    Commission (ITC)
                    Exclusion Bond.
14...............  In-Bond Export
                    Consolidation Bond.
15...............  Intellectual Property
                    Rights (IPR).
17...............  Marine Terminal
                    Operator (continuous
                    bond only).
------------------------------------------------------------------------

Bond Requirements for Entry/Entry Summary Filing
    Beginning on January 3, 2015, participants in the eBond test will 
be the only parties able to transmit required bond coverage (in the 
form of eBonds) for the following entry/entry summary scenarios:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                       ACE entry
                                  (simplified entry)   ACE entry summary  ACS entry followed   ACE entry summary  ACS entry followed   ACS entry summary
                                    followed by ACE    certified for ACE     by ACE entry      certified for ACS     by ACS entry        certified for
                                     entry summary       cargo release          summary          cargo release          summary          cargo release
--------------------------------------------------------------------------------------------------------------------------------------------------------
Single Transaction Bond.........  YES...............  YES...............  NO................  NO................  NO................  NO.
Continuous Bond.................  YES...............  YES...............  YES...............  YES...............  YES...............  YES.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    For the scenarios in which the word ``yes'' appears, the entry/
entry summary must be matched (validated) to an existing eBond that was 
previously transmitted in ACE for the purpose of securing that 
transaction. If an appropriate eBond is not on file in ACE for that 
transaction, the entry/entry summary will be rejected. For the 
scenarios in which the word ``no'' appears, CBP will not permit bond 
coverage to be transmitted under the eBond test and a CBP Form 301 
subject to 19 CFR part 113 will be required instead. On November 1, 
2015, CBP expects to retire ACS for most electronic entry/entry summary 
transactions, and at that time, the eBond test is expected to expand to 
all scenarios set forth in the chart above.
Terms and Conditions for eBond Riders
    The surety/surety agent transmitting an eBond rider must identify 
the eBond being amended and the type of eBond rider selected, as well 
as other data elements required by the eBond system. The principal(s) 
and surety(ies) of the identified eBond agree to be bound (jointly and 
severally) by amendments to the eBond corresponding to the type of 
eBond rider the surety/surety agent has selected. Except for the 
amendments described below for the selected eBond rider, the 
principal(s) and surety(ies) agree that all other terms and conditions 
of the identified eBond remain unchanged.
    (1) Addition eBond rider. The principal(s) and surety(ies) agree 
that the names transmitted with this eBond rider are unincorporated 
units of the identified principal or are trade or business names used 
by the identified principal in its business, that the identified eBond 
covers its business, and that the identified eBond covers any act done 
in those names to the same extent as though done in the name of the 
identified principal. The principal(s)

[[Page 70885]]

and surety(ies) agree that any such act shall be considered to be the 
act of the identified principal.
    (2) Deletion eBond rider. The principal(s) and surety(ies) agree 
that the names transmitted with this eBond rider of unincorporated 
units of the identified principal or trade or business names used by 
the identified principal in its business are deleted from the 
identified eBond effective upon the date of approval of this eBond 
rider by the appropriate CBP bond approval official.
    (3) Reconciliation eBond rider. The principal(s) and surety(ies) 
agree that the identified eBond covers all Reconciliations pursuant to 
19 U.S.C. 1484(b) that are elected on any entries secured by the 
identified eBond, and that all conditions set out in 19 CFR 113.62 are 
applicable to the identified eBond. See also, 63 FR 6257 (Feb. 6, 
1998); 63 FR 44303 (Aug. 18, 1998); and 67 FR 61200 (Sept. 27, 2002). 
The principal(s) and surety(ies) also agree that, when an Aggregate 
Reconciliation under this eBond rider lists entries occurring in more 
than one bond period, any liabilities to CBP reflected in that 
Aggregate Reconciliation will be attributable (up to the full available 
bond amount) to any or all of those bond periods.
    (4) U.S. Virgin Islands eBond rider. The principal(s) and 
surety(ies) agree that the words ``United States,'' whenever used in 
the terms and conditions of the identified eBond, include the U.S. 
Virgin Islands.
eBond and eBond Rider Transmission as Binding Representation to CBP of 
Authority To Bind Both Surety and Principal to eBond or eBond Rider
    In accordance with 19 U.S.C. 1623(d), and consistent with the 
Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 
7001 et seq., in place of signatures memorializing the parties' intent 
to be bound, the principals and sureties who execute eBonds under this 
test certify that the surety's/surety agent's act of transmitting an 
eBond or eBond rider to CBP in ACE to secure a transaction constitutes 
a binding representation to CBP that:
    (1) The transmitting surety/surety agent has the authority to bind 
both the surety(ies) and the principal(s) identified in the eBond or 
eBond rider; and
    (2) Pursuant to the surety/surety agent's authority, both the 
surety(ies) and the principal(s) intend to be bound by the transmitted 
eBond or eBond rider, under the terms and conditions set forth in this 
notice. Furthermore, any transaction that identifies or uses an eBond 
as security constitutes the re-affirmation of the principal responsible 
for the transaction that it intends to be bound by the terms and 
conditions of the identified or used eBond.
Name and Address Change Bond Riders Not Supported in eBond
    For purposes of the eBond test, CBP will not be collecting 
information regarding the name and address of the principal or surety 
on the eBond as this data will be available to CBP via other components 
of ACE. For this reason, bond riders pertaining to a principal's name 
or address change (see 19 CFR 113.24(a)(1)(2)) are not supported in ACE 
as this information is not transmitted on the eBond.
Continuous Bonds Executed Prior to eBond Test Will Be Accessible in 
eBond System
    Continuous bonds executed on CBP Form 301 prior to the eBond test 
deployment date of January 3, 2015, will be accessible in the eBond 
system for ease of CBP's administration of all continuous bonds. 
However, continuous bonds executed on CBP Form 301 prior to January 3, 
2015, will not be subject to the rules set forth in this notice but 
will remain subject to the CBP bond regulations in 19 CFR part 113. 
Therefore, bond riders for these pre-January 3, 2015 continuous bonds 
must still be submitted to the RD in the format and manner detailed in 
19 CFR part 113. Effective January 3, 2015, CBP will no longer accept 
name/address change bond riders for these pre-January 3, 2015 
continuous bonds. The importer identification number and surety number 
will continue to be the primary identification markers used by CBP when 
verifying adequate bond coverage for activities that require it. 
Principals or sureties who wish to change the name or address on a pre-
January 3, 2015 continuous bond must terminate the bond and provide a 
new bond (depending on the entry/entry summary scenario, this may be an 
eBond or a STB on CBP Form 301).
Termination of an eBond
    A surety may, with or without the consent of the principal, 
electronically terminate an eBond on which it is obligated. The 
effective date of the termination must be stated in the electronic 
notice of termination and must be at least 15 calendar days after the 
date of the electronic notice of termination. If an eBond is 
terminated, no new customs transactions may be charged against the 
eBond. The surety, as well as the principal, remains liable on a 
terminated eBond for obligations incurred prior to termination.
eBond Status Updates
    eBond status updates will be provided electronically to the surety/
surety agent and any party identified on the eBond as a ``Secondary 
Notify Party''.

Authorization for the eBond Test

    CBP's eBond test is authorized under 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 programs or procedures.

eBond Test Participant Eligibility

    Participation in the eBond test is voluntary and may include 
surety(ies)/surety agents as well as principals who authorize a surety/
surety agent to transmit an eBond. In order for a surety/surety agent 
to be eligible to participate in eBond, the surety/surety agent must 
obtain a filer code from CBP. A request for a filer code should be 
submitted to [email protected]. Once the filer code is issued 
by CBP, it will be associated with the surety code which will be 
maintained by CBP. Principals and/or importers may participate in the 
eBond test by contacting a participating surety and obtaining an eBond.

eBond Test Selection Criteria

    Participation in the eBond test is open to all sureties/surety 
agents who have a surety filer code and who have requested permission 
to participate in the test and received CBP approval, as well as any 
principal who authorizes a surety/surety agent to transmit an eBond. A 
surety or surety agent interested in voluntary participation in the 
eBond test must submit an email request to [email protected] 
with the subject line identifier ``Request to participate in eBond 
test.'' CBP will notify interested sureties of their test participation 
status upon receipt of the email requesting participation in the test. 
A principal who authorizes a surety/surety agent to transmit an eBond 
during this test is considered an eBond test participant and is bound 
by the terms and conditions of this notice.

eBond Test Dates

    The eBond test will commence on January 3, 2015, and will run 
approximately two years, subject to any extension, modification or 
early termination as announced by way of notice in the Federal 
Register.

Regulatory Provisions Suspended

    The regulatory provisions set forth in Chapter 1 of title 19 of the 
CFR will be suspended to the extent that they

[[Page 70886]]

conflict with the terms of the eBond test. The regulatory suspensions 
will remain in effect for the duration of this test and will only apply 
to eBond test participants; the regulatory provisions remain in effect 
for all non-test participants.

Test Evaluation

    The eBond test is intended to evaluate the automation of CBP's bond 
program pursuant to the processes described in this notice, its impact 
on trade, and CBP's ability to enforce applicable laws and protect the 
revenue. CBP's evaluation of the test, including the review of any 
comments submitted to CBP for the duration of the test, will be ongoing 
with a view to possible extension or expansion of the test. Notice of 
any extension, modification or expansion of the test will be published 
in the Federal Register.

Test Evaluation Criteria

    The following is a non-exhaustive list of evaluation factors that 
CBP may use to assess the merits of the eBond test:
    1. Workload impact;
    2. Policy and procedure accommodations;
    3. Cost savings;
    4. Trade compliance impact;
    5. System efficiency;
    6. Operational efficiency; or
    7. Other issues raised by public comment or by the test 
participants.
    Results of the eBond test will be formulated at the conclusion of 
the test and will be made available to the public upon request.

Misconduct Under the Test

    An eBond test participant may be subject to civil and criminal 
penalties, administrative sanctions, liquidated damages, and/or 
discontinuance from participation in 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 that 
have not been waived.
     Failure to deposit duties or fees in a timely manner.
    If the Director, Business Transformation, ACE Business Office 
(ABO), Office of International Trade, finds that there is a basis for 
discontinuance of test participation privileges, the test participant 
will be provided a written notice proposing the discontinuance with a 
description of the facts or conduct supporting the proposal. The test 
participant will be offered the opportunity to respond to the 
Director's proposal in writing within 10 calendar days of the date of 
the written notice. The response must be submitted to the Executive 
Director, ACE Business Office, Office of International Trade. The 
Executive Director will issue a decision in writing on the proposed 
action within 30 business days after receiving a timely filed response 
from the test participant. If no timely response is received, the 
proposed notice becomes the final decision of the Agency as of the date 
that the response period expires. A proposed discontinuance of a test 
participant's privileges will not take effect unless the response 
process under this paragraph has been concluded with a written decision 
adverse to the test participant.
    Where the public health, interest, or safety so requires, or to 
protect the revenue, the Director, Business Transformation, ACE 
Business Office (ABO), Office of International Trade, may immediately 
discontinue the test participant's privileges upon written notice to 
the test participant. The notice will contain a description of the 
facts or conduct warranting the Director's decision. The test 
participant will be offered the opportunity to appeal the Director's 
decision within 10 calendar days of the date of the written notice 
providing for immediate discontinuance. The appeal must be submitted to 
the Executive Director, ACE Business Office, Office of International 
Trade. The immediate discontinuance will remain in effect during the 
appeal period. The Executive Director will issue a decision in writing 
on the appeal within 15 business days after receiving a timely filed 
appeal from the test participant. If no timely appeal is received, the 
notice becomes the final decision of CBP as of the date that the appeal 
period expires.

    Dated: November 24, 2014.
Brenda Smith,
Assistant Commissioner, Office of International Trade.
[FR Doc. 2014-28146 Filed 11-26-14; 8:45 am]
BILLING CODE 9111-14-P