[Federal Register Volume 80, Number 59 (Friday, March 27, 2015)]
[Notices]
[Pages 16414-16416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-07122]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Modification of National Customs Automation Program (NCAP) Test 
Concerning Automated Commercial Environment (ACE) Cargo Release for 
Type 03 Entries and for Truck Carriers

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 modify the National Customs Automation Program (NCAP) 
test concerning Automated Commercial Environment (ACE) cargo release to 
allow importers and customs brokers to file type 03 entries for all 
modes of transportation and to file, for cargo transported in the truck 
mode, entries for split shipments or partial shipments and entry on 
cargo which has been moved in-bond from the first U.S. port of 
unlading.

DATES: The ACE Cargo Release Test modifications became effective on 
March 1, 2015. The ACE Cargo Release Test will continue until CBP 
publishes in the Federal Register an announcement of its conclusion.

ADDRESSES: Comments or questions concerning this notice and indication 
of interest in participation in ACE Cargo Release Test should be 
submitted, via email, to Steven Zaccaro at 
[email protected]. In the subject line of your email, please 
use, ``Comment on ACE Cargo Release 03 Entries and Truck Mode.'' The 
body of the email should identify the ports where filings are likely to 
occur.

FOR FURTHER INFORMATION CONTACT: For policy questions related to ACE, 
contact Josephine Baiamonte, Acting Director, Business Transformation, 
ACE Business Office, Office of International Trade, at 
[email protected]. For policy questions related to ISF, 
contact Craig Clark, Program Manager, Cargo and Conveyance Security, 
Office of Field Operations, at [email protected]. For technical 
questions, contact Steven Zaccaro, Client Representative Branch, ACE 
Business Office, Office of International Trade, at 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

I. The National Customs Automation Program

    This test notice, and the Customs related electronic functions it 
describes, are part of the National Customs Automation Program (NCAP). 
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 focus of customs 
modernization was on trade compliance and the development of the 
Automated Commercial Environment (ACE), the planned successor to the 
legacy Customs Automated Commercial System (ACS). ACE is an automated 
and electronic system for commercial trade processing. ACE will 
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 all its communities of interest. The ability to meet these 
objectives depends upon 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 introduce a new capability or 
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.
    The ACE Cargo Release test was previously known as the Simplified 
Entry Test, because the test simplified the entry process by reducing 
the number of data elements required to obtain release for cargo 
transported by air. The original test notice required participants to 
be a member of the Customs-Trade Partnership Against Terrorism (C-TPAT) 
program. Through phased releases of ACE component functionality, this 
test has been expanded to allow all eligible participants to join the 
test for an indefinite period regardless of the C-TPAT status of an 
importer self-filer or a customs broker. CBP also expanded the ACE 
Cargo release test to allow ACE-participating brokers and importers to 
file for release of cargo transported by air, ocean, or rail. See 79 FR 
6210 (February 3, 2014). For these three modes of transportation, CBP 
limited the ACE Cargo Release test to formal consumption entries, which 
ACS termed Type 01 entries; and to informal entries, which ACS termed 
Type 11 entries. See 79 FR 6210.

[[Page 16415]]

    On May 2, 2014, CBP published a Federal Register notice to announce 
its expansion of the ACE Cargo Release test to allow ACE-participating 
brokers and importers to file for release of cargo transported by 
truck, but only for Type 01 and Type 11 entries. 79 FR 25142 (May 2, 
2014). In that phase of the ACE Cargo Release test, however, for cargo 
transported by truck, CBP excluded split shipments, partial shipments, 
entry on cargo that has been moved in-bond from the first U.S. port of 
unlading, and entries requiring PGA information.
    For the convenience of the public, all Federal Register 
publications detailing ACE test developments in Entry, Summary, 
Accounts, and Revenue (ESAR) are listed chronologically at the end of 
this notice, in Section VI. ``Development of ACE Prototypes.'' CBP's 
ACE eligibility criteria, technical specifications, recordkeeping 
requirements, and rules, as specified in prior NCAP test notices for 
ACE, remain in effect unless CBP publishes a notice, such as this one, 
that explicitly announces a change.

II. Authorization for the Test

    The Customs Modernization provisions in the North American Free 
Trade Agreement Implementation Act provide the Commissioner of CBP with 
authority to conduct limited test programs or procedures designed to 
evaluate planned components of the NCAP. This test is authorized 
pursuant to Sec.  101.9(b) of the CBP Regulations (19 CFR 101.9(b)) 
which provides for the testing of NCAP programs or procedures. See 
Treasury Decision (T.D.) 95-21.

III. Modification of ACE Cargo Release Test To Include Type 03 Entries, 
and To Expand Cargo Release Filing Capabilities for Cargo Conveyed by 
Truck

    This notice announces that, as an addition to Type 01 and Type 11 
entries, CBP is now allowing brokers and importers, who are also ACE 
participants, to file, for air, ocean, rail, and truck modes of 
transportation, a simplified entry for release of cargo subject to an 
antidumping or countervailing duty proceeding, which ACS termed Type 03 
entries.
    This notice also announces that CBP is now allowing ACE-
participating brokers and importers to file for release of cargo 
transported by truck that are split shipments, partial shipments, entry 
on cargo that has been moved in-bond from the first U.S. port of 
unlading.

Eligibility Requirements

    To be eligible to apply for this test, the applicant must: (1) Be a 
self-filing importer who has the ability to file ACE Entry Summaries 
certified for cargo release or a broker who has the ability to file ACE 
Entry Summaries certified for cargo release; or (2) have evinced the 
intent to file entry summaries in ACE.
    Parties seeking to participate in this test must use a software 
package that has completed Automated Broker Interface (ABI) 
certification testing for ACE and offers the ACE Cargo Release (SE) 
message set prior to transmitting data under the test. See the General 
Notice of August 26, 2008 (73 FR 50337) for a complete discussion on 
procedures for obtaining an ACE Portal Account. Importers not self-
filing must be sure their broker has the capability to file entry 
summaries in ACE.

Document Image System (DIS)

    Parties who file entry summaries in ACE are allowed to submit 
specified CBP and PGA documents via a CBP-approved Electronic Data 
Interchange (EDI). In a notice published in the Federal Register (79 FR 
36083) on June 25, 2014, CBP set forth the rules for filing submissions 
via DIS and a list of CBP and PGA forms that may be submitted via DIS. 
For technical information about how ACE participants may build an 
interface to connect with CBP DIS, see http://www.cbp.gov/sites/default/files/documents/dis_implementation_guide_3.pdf.

Test Participation Selection Criteria

    The ACE Cargo Release test is open to all importers and customs 
brokers filing ACE Entry Summaries for cargo transported in the ocean, 
rail, and truck modes. CBP will endeavor to accept all new eligible 
applicants on a first come, first served basis; however, if the volume 
of eligible applicants exceeds CBP's administrative capabilities, CBP 
will reserve the right to select importer and exporter participants 
based upon entry filing volume, diversity of clients or of industries 
represented, while giving consideration to the order in which CBP 
received the requests to participate.
    Any party seeking to participate in this test must provide CBP, in 
their request to participate, their filer code and the port(s) at which 
they are interested in filing ACE Cargo Release transaction data. At 
this time, ACE Cargo Release data may be submitted only for entries 
filed at certain ports. A current listing of those ports may be found 
on the following Web site: http://www.cbp.gov/document/guidance/ace-cargo-release-pilot-ports. CBP may expand to additional ports in the 
future.

Filing Capabilities

    The filing capabilities for the ACE Cargo Release test set forth in 
a Federal Register notice (79 FR 25142) continue to apply and are now 
expanded to include ACE-participating importers and customs brokers 
filing for cargo transported in the truck mode, to allow for automated 
corrections and cancellations, split shipments, partial shipments, 
entry on cargo which has been moved by in-bond from the first U.S. port 
of unlading, and entry for a full manifested bill quantity. These new 
capabilities include functionality specific to the filing and 
processing of Type 01, Type 03, and Type 11 for cargo conveyed by air, 
ocean, rail, or truck mode of transportation. The ACE Cargo Release 
filing capabilities serve to assist the importer in completion of entry 
as required by the provisions of 19 U.S.C. 1484(a)(1)(B).

Data Elements To Be Filed

    In lieu of filing CBP Form 3461 data, the importer or broker acting 
on behalf of the importer must file the following 12 data elements 
(known as the ACE Cargo Release Data set) with CBP:
    (1) Importer of Record Number.
    (2) Buyer name and address.
    (3) Buyer Employer Identification Number (consignee number).
    (4) Seller name and address.
    (5) Manufacturer/supplier name and address.
    (6) HTS 10-digit number.
    (7) Country of origin.
    (8) Bill of lading/house air waybill number.
    (9) Bill of lading issuer code.
    (10) Entry number.
    (11) Entry type.
    (12) Estimated shipment value.
    For cargo transported by ocean or by rail, the filer has the 
option, but is not required, to provide the following three (3) data 
elements:
    (13) Ship to party name and address (optional).
    (14) Consolidator name and address (optional).
    (15) Container stuffing location (optional).
    To enable enhanced functionality in ACE Cargo Release, the ACE-
participating importer or broker may provide an additional three (3) 
data elements if applicable, for cargo transported by air, ocean, rail, 
or truck:
    (16) Port of Entry (if an in-bond number is provided in the entry 
submission, the planned port of entry must also be provided).

[[Page 16416]]

    (17) In-Bond number (if an in-bond shipment).
    (18) Bill Quantity (if bill of lading quantity is specified in the 
entry, it becomes the entered and released quantity for that bill. If 
the bill quantity is not specified, full bill quantity will be entered 
and released for that bill).
    Data element (1) and data elements (6) through (12) are defined in 
the same manner as when they are used for entry filing on the CBP Form 
3461. Data elements (2) through (5) and (13) through (15) are defined 
in accordance with the provisions of 19 CFR 149.3.
    The ACE Cargo Release Data set may be filed at any time prior to 
arrival of the cargo in the United States port of arrival with the 
intent to unlade. This data fulfills merchandise entry requirements and 
allows for earlier release decisions and more certainty for the 
importer in determining the logistics of cargo delivery.

Functionality

    Upon receipt of the ACE Cargo Release data, CBP will process the 
submission and will subsequently transmit its cargo release decision to 
the filer. If a subsequent submission is submitted to CBP, CBP's 
decision regarding the original submission is no longer controlling.
    The merchandise will then be considered to be entered upon its 
arrival in the port with the intent to unlade, as provided by current 
19 CFR 141.68(e).

V. 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.

VI. Development of ACE Prototypes

    A chronological listing of Federal Register publications, which 
describe ACE test developments, is provided, below.

    ACE Portal Accounts and Subsequent Revision Notices: 67 FR 21800 
(May 1, 2002); 69 FR 5360 and 69 FR 5362 (February 4, 2004); 69 FR 
54302 (September 8, 2004); 70 FR 5199 (February 1, 2005). 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).
    Post-Entry Amendment (PEA) Processing Test: 76 FR 37136 (June 
24, 2011).
    ACE Announcement of a New Start Date for the National Customs 
Automation Program Test of Automated Manifest Capabilities for Ocean 
and Rail Carriers: 76 FR 42721 (July 19, 2011).
    ACE Simplified Entry: 76 FR 69755 (November 9, 2011).
    National Customs Automation Program (NCAP) Tests Concerning 
Automated Commercial Environment (ACE) Document Image System (DIS): 
77 FR 20835 (April 6, 2012).
    National Customs Automation Program (NCAP) Tests Concerning 
Automated Commercial Environment (ACE) Simplified Entry: 
Modification of Participant Selection Criteria and Application 
Process: 77 FR 48527 (August 14, 2012).
    Modification of NCAP Test Regarding Reconciliation for Filing 
Certain Post-Importation Preferential Tariff Treatment Claims under 
Certain FTAs: 78 FR 27984 (May 13, 2013).
    Modification of Two National Customs Automation Program (NCAP) 
Tests Concerning Automated Commercial Environment (ACE) Document 
Image System (DIS) and Simplified Entry (SE): 78 FR 44142 (July 23, 
2013).
    Modification of Two National Customs Automation Program (NCAP) 
Tests Concerning Automated Commercial Environment (ACE) Document 
Image System (DIS) and Simplified Entry (SE); Correction: 78 FR 
53466 (August 29, 2013).
    Modification of NCAP Test Concerning Automated Commercial 
Environment (ACE) Cargo Release (formerly known as Simplified 
Entry): 78 FR 66039 (November 4, 2013).
    Post-Summary Corrections to Entry Summaries Filed in ACE 
Pursuant to the ESAR IV Test: Modifications and Clarifications: 78 
FR 69434 (November 19, 2013).
    National Customs Automation Program (NCAP) Test Concerning the 
Submission of Certain Data Required by the Environmental Protection 
Agency and the Food Safety and Inspection Service Using the Partner 
Government Agency Message Set Through the Automated Commercial 
Environment (ACE): 78 FR 75931 (December 13, 2013).
    Modification of National Customs Automation Program (NCAP) Test 
Concerning Automated Commercial Environment (ACE) Cargo Release for 
Ocean and Rail Carriers: 79 FR 6210 (February 3, 2014).
    Modification of National Customs Automation Program (NCAP) Test 
Concerning Automated Commercial Environment (ACE) Cargo Release To 
Allow Importers and Brokers To Certify From ACE Entry Summary: 79 FR 
24744 (May 1, 2014).
    Modification of National Customs Automation Program (NCAP) Test 
Concerning Automated Commercial Environment (ACE) Cargo Release for 
Truck Carriers: 79 FR 25142 (May 2, 2014).
    Modification of National Customs Automation Program (NCAP) Test 
Concerning Automated Commercial Environment Document Image System: 
79 FR 36083 (June 25, 2014).
    eBond Test: 79 FR 70881 (November 28, 2014); 80 FR 899 (January 
7, 2015).


    Dated: March 24, 2015.
Brenda B. Smith,
Assistant Commissioner, Office of International Trade.
[FR Doc. 2015-07122 Filed 3-26-15; 8:45 am]
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