[Federal Register Volume 80, Number 132 (Friday, July 10, 2015)]
[Notices]
[Pages 39790-39793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16943]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Automated Commercial Environment (ACE) Export Manifest for Air 
Cargo Test

AGENCY: U.S. Customs and Border Protection, DHS.

ACTION: General notice.

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SUMMARY: This document announces that U.S. Customs and Border 
Protection (CBP) plans to conduct the Automated Commercial Environment 
(ACE) Export Manifest for Air Cargo Test, a National Customs Automation 
Program (NCAP) test concerning ACE export manifest capability. The ACE 
Export Manifest for Air Cargo Test is a voluntary test in which 
participants agree to submit export manifest data electronically, at 
least 4 hours prior to loading of the cargo onto the aircraft in 
preparation for departure from the United States. CBP regulations 
require carriers to submit a paper manifest for export air shipments 
generally within 4 days after departure. This notice provides a 
description of the test, sets forth eligibility requirements for 
participation, and invites public comment on any aspect of the test.

DATES: The test will begin no earlier than August 10, 2015 and will run 
for approximately two years. CBP is accepting applications for 
participation in this planned test until CBP has received applications 
from nine parties that meet all test participant requirements. Comments 
concerning this notice and all aspects of the announced test may be 
submitted at any time during the test period.

ADDRESSES: Applications to participate in the ACE Export Manifest for 
Air Cargo Test must be submitted via email to CBP Export Manifest at 
[email protected]. In the subject line of the email, please 
use ``ACE Export Manifest for Air Cargo Test Application''. Written 
comments concerning program, policy, and technical issues may also be 
submitted via email to CBP Export Manifest at 
[email protected]. In the subject line of the email, please 
use ``Comment on ACE Export Manifest for Air Cargo Test''.

FOR FURTHER INFORMATION CONTACT: Robert Rawls, Cargo and Conveyance 
Security, Office of Field Operations, U.S. Customs & Border Protection, 
via email at [email protected].

SUPPLEMENTARY INFORMATION:

Background

The National Customs Automation Program

    The National Customs Automation Program (NCAP) was established in 
Subtitle B of Title VI--Customs Modernization, in the North American 
Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 
2057, Dec. 8, 1993) (Customs Modernization Act) (19 U.S.C. 1411-14). 
Through NCAP, the initial thrust of customs modernization was on trade 
compliance and the development of the Automated Commercial Environment 
(ACE), the planned successor to the Automated Commercial System (ACS). 
ACE is an automated and electronic system for commercial trade 
processing which is intended to streamline business processes, 
facilitate growth in trade, ensure cargo security, and foster 
participation in global commerce, while ensuring compliance with U.S. 
laws and regulations and reducing costs for CBP and all of its 
communities of interest. The ability to meet these objectives depends 
on successfully modernizing CBP's business functions and the 
information technology that supports those functions. CBP's 
modernization efforts are accomplished through phased releases of ACE 
component functionality designed to replace a specific legacy ACS or 
paper function. Each release begins with a test and ends with mandatory 
use of the new ACE feature, thus retiring the legacy ACS or paper 
function. Each release builds on previous releases and sets the 
foundation for subsequent releases.

Authorization for the Test

    The Customs Modernization Act provides the Commissioner of CBP with 
the authority to conduct limited test programs or procedures designed 
to evaluate planned components of the NCAP. The test described in this 
notice is authorized pursuant to the Customs Modernization Act and 
section 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. As provided in 19 CFR 101.9(b), for purposes of conducting 
an NCAP test, the Commissioner of CBP may impose requirements different 
from those specified in the CBP regulations.

International Trade Data System (ITDS)

    This test is also in furtherance of the International Trade Data 
System (ITDS) key initiatives, set forth in section 405 of the Security 
and Accountability for Every Port Act of 2006 (Pub. L. 109-347, 120 
Stat. 1884, Oct. 13, 2006) (SAFE Port Act) (19 U.S.C. 1411(d)) and 
Executive Order 13659 of February 19, 2014, Streamlining the Export/
Import Process for America's Businesses. The purpose of ITDS, as stated 
in section 405 of the SAFE Port Act, is to eliminate redundant 
information requirements, efficiently regulate the flow of commerce, 
and effectively enforce laws and regulations relating to international 
trade, by establishing a single portal system, operated by CBP, for the 
collection and distribution of standard electronic import and export 
data required by all participating Federal agencies. CBP is developing 
ACE as the ``single window'' for the trade community to comply with the 
ITDS requirement established by the SAFE Port Act.
    Executive Order 13659 requires that by December 2016, ACE, as the 
ITDS single window, have the operational capabilities to serve as the 
primary means of receiving from users the standard set of data and 
other relevant documentation (exclusive of applications for permits, 
licenses, or certifications) required for the release of imported cargo 
and clearance of cargo for export, and to transition from paper-based 
requirements and procedures to faster and more cost-effective 
electronic submissions to, and communications with, U.S. government 
agencies.

Current Air Cargo Export Information Requirements

    Under 19 CFR 122.72, 19 CFR 122.73, 19 CFR 122.74, 19 CFR 122.75, 
and 19 CFR 192.14, certain information must be submitted to CBP for 
aircraft with export cargo leaving the United States for any foreign 
area.\1\ In most cases, the

[[Page 39791]]

aircraft commander or agent must file a general declaration on CBP Form 
7507 pertaining to the outbound flight. Also, the aircraft commander or 
agent must file the air cargo manifest, CBP Form 7509, with CBP at each 
port where export cargo is loaded on the aircraft. Under 19 CFR 122.74, 
the airline must file the complete air cargo manifest generally within 
4 days after departure of the aircraft. Finally, the U.S. Principal 
Party in Interest (USPPI) must file any required Electronic Export 
Information (EEI) for the cargo on the aircraft.\2\ More details 
regarding the manifest requirements, the subject of this test, are 
provided in the next section.
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    \1\ Section 122.72 requires the filing of a general declaration, 
an air cargo manifest, and any required Shipper's Export 
Declarations. Shipper's Export Declarations were the Department of 
Commerce paper forms used by the Bureau of the Census under the 
Foreign Trade Statistics Regulations to collect information from an 
entity exporting from the United States. These forms were used for 
compiling the official U.S. export statistics for the United States 
and for export control purposes. The Shipper's Export Declarations 
became obsolete on October 1, 2008, with the implementation of the 
Foreign Trade Regulations (FTR) and have been superseded by the 
Electronic Export Information (EEI) filed in AES or through the 
AESDirect. See 15 CFR 30.1. See also 19 CFR 192.14, regarding 
required EEI.
    \2\ The USPPI is defined in the FTR as the person or legal 
entity in the United States that receives the primary benefit, 
monetary or otherwise, from the export transaction. Generally, that 
person or entity is the U.S. seller, manufacturer, or order party, 
or the foreign entity while in the United States when purchasing or 
obtaining the goods for export. 15 CFR 30.1.
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Current Air Cargo Manifest Requirements

    As indicated in the previous section, the aircraft commander or 
agent must file copies of the air cargo manifest on CBP Form 7509. CBP 
Form 7509 consists of the following data elements:

(1) Owner/Operator
(2) Marks of nationality and registration
(3) Flight number
(4) Port of lading
(5) Port of unlading
(6) Date
(7) Consolidator (conditional)
(8) De-consolidator (conditional)
(9) Air waybill type (Master, House, or Sub)
(10) Air waybill number
(11) Number of pieces
(12) Weight (kg./lb.)
(13) Number of house air waybills
(14) Shipper name and address
(15) Consignee name and address
(16) Nature of goods
(17) Internal Transaction Number (ITN) or AES Exemption Statement \3\

    \3\ Though not a data element on CBP Form 7509 itself, the 
carrier must include the ITN or AES Exemption Statement on the 
outward manifest pursuant to 19 CFR 192.14(c)(3).
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    The air cargo manifest may be filed in complete form or incomplete 
form (pro forma). Under 19 CFR 122.74, the complete manifest must be 
filed with CBP before the aircraft will be cleared to depart during any 
time covered by a proclamation of the President that a state of war 
exists between foreign nations, or if the aircraft is departing on a 
flight from the United States directly or indirectly to a foreign 
country listed in 19 CFR 4.75. Otherwise, for shipments to a foreign 
country, an incomplete manifest may be filed with CBP at the departure 
airport when accompanied by the proper bond. For shipments on direct 
flights to Puerto Rico, an incomplete manifest may be filed with CBP 
upon arrival in Puerto Rico. If the complete manifest will not be filed 
within one business day of arrival in Puerto Rico, the proper bond must 
be filed at that time.
    Under the bond accompanying the incomplete manifest, the complete 
manifest must be filed with CBP by the airline within the appropriate 
time period. For shipments to foreign countries, the complete manifest 
must generally be filed no later than 4 business days post-departure. 
For shipments between the United States and Puerto Rico, the complete 
manifest must be filed no later than 7 business days after arrival into 
or departure from Puerto Rico. For shipments between the United States 
or Puerto Rico and U.S. possessions, the complete manifest must be 
filed no later than 7 business days after departure.

Trade Act and the Automated Export System (AES)

    Section 343(a) of the Trade Act of 2002, as amended (Trade Act) (19 
U.S.C. 2071 note), requires CBP to promulgate regulations providing for 
the mandatory transmission of electronic cargo information by way of a 
CBP-approved electronic data interchange (EDI) system before the cargo 
is brought into or departs the United States by any mode of commercial 
transportation (sea, air, rail, or truck). The required cargo 
information is that which is reasonably necessary to enable high-risk 
shipments to be identified for purposes of ensuring cargo safety and 
security and preventing smuggling pursuant to the laws enforced and 
administered by CBP. Section 192.14 of title 19 of the Code of Federal 
Regulations (19 CFR 192.14) implements the requirements of the Trade 
Act with regard to cargo departing the United States.
    While the air cargo manifest described above must be submitted by 
the aircraft commander or agent, that is, by the air carrier, any 
required EEI must be filed by the USPPI under 19 CFR 192.14. Using a 
CBP-approved EDI system, the USPPI or its authorized agent must 
transmit and verify system acceptance of this EEI, generally no later 
than 2 hours prior to the scheduled departure time of the aircraft from 
the last U.S. port. The air carrier may not load cargo without first 
receiving from the USPPI or its authorized agent either the related EEI 
filing citation, covering all cargo for which the EEI is required, or 
exemption legends, covering cargo for which EEI need not be filed. The 
outbound air carrier then must annotate the air cargo manifest, 
waybill, or other export documentation with the applicable AES proof of 
filing, post departure, downtime, exclusion or exemption citations, 
conforming to the approved data formats found in the Bureau of the 
Census Foreign Trade Regulations (FTR) (15 CFR part 30).

Description of the ACE Export Manifest for Air Cargo Test

Purpose

    The ACE Export Manifest for Air Cargo Test will test the 
functionality regarding the filing of export manifest data for air 
cargo electronically to ACE in furtherance of the ITDS initiatives 
described above. CBP has re-engineered AES to move it to an ACE system 
platform. The re-engineering and incorporation of AES into ACE will 
result in the creation of a single automated export processing platform 
for certain export manifest, commodity, licensing, export control, and 
export targeting transactions. This will reduce costs for CBP, partner 
government agencies, and the trade community and improve facilitation 
of export shipments through the supply chain.
    The ACE Export Manifest for Air Cargo Test will also test the 
feasibility of requiring the manifest information to be filed 
electronically in ACE within a specified time before the cargo is 
loaded on the aircraft. (Under the current regulatory requirements, the 
complete manifest is required to be submitted by the airline on paper 
CBP Form 7509 generally after the departure of the aircraft). As 
described in the paragraph below, in the test, participants will submit 
export manifest data electronically to ACE at least 4 hours prior to 
loading of the cargo. This will enable CBP to easily link the EEI 
submitted by the USPPI with the export manifest information earlier in 
the process. This capability will better enable CBP to assess risk and 
effectively target and inspect shipments prior to the loading of cargo 
to ensure compliance with all U.S. export laws.

Procedures

    Participants in the ACE Export Manifest for Air Cargo Test agree to 
provide export manifest data electronically at least 4 hours prior to 
loading of the cargo onto the aircraft in preparation for departure 
from the United States. If the air carrier files this ACE Export 
Manifest data, the electronic filing is in lieu of the paper

[[Page 39792]]

filing of CBP Form 7509. If a freight forwarder files the ACE Export 
Manifest data, the carrier is still required to file the CBP Form 7509 
(or ACE Export Manifest data, if the air carrier is also a test 
participant).
    The ACE Export Manifest data submission will be used to target 
high-risk air cargo. The data should be available to test participants 
early in the planning stages of an export air cargo transaction. It is 
anticipated that data provided 4 hours prior to loading will permit 
adequate time for proper risk assessment and identification of 
shipments to be inspected early enough in the supply chain to enhance 
security while minimizing disruption to the flow of goods.
    Any air cargo identified as potentially high-risk will receive a 
hold until required additional information related to the shipment is 
submitted to clarify non-descriptive, inaccurate, or insufficient 
information, a physical inspection is performed, or some other 
appropriate action is taken, as specified by CBP. Once the cargo is 
cleared for loading, a release message will be generated and 
transmitted to the filer.

Data Elements

    The ACE Export Manifest for Air Cargo Test data elements are 
similar, but not identical to the data elements required on CBP Form 
7509. The data elements are mandatory unless otherwise indicated. Data 
elements that are indicated as ``conditional'' must be transmitted to 
CBP only if the particular information pertains to the cargo. The ACE 
Export Manifest for Air Cargo data elements are to be submitted at the 
lowest bill level. The data elements consist of:

(1) Exporting Carrier (CBP finds this term to be clearer than the term 
``Owner/Operator'' used on CBP Form 7509)
(2) Marks of nationality and registration
(3) Flight number
(4) Port of lading
(5) Port of unlading
(6) Scheduled date of departure (CBP finds this term to be clearer than 
the term ``Date'' used on CBP Form 7509)
(7) Consolidator (conditional)
(8) De-consolidator (conditional)
(9) Air waybill type (Master, House, Simple or Sub)
(10) Air Waybill number
(11) Number of pieces and unit of measure
(12) Weight (kg./lb.)
(13) Number of house air waybills
(14) Shipper name and address
(15) Consignee name and address
(16) Cargo description (CBP finds this term to be clearer than the term 
``Nature of goods'' used on CBP Form 7509)
(17) AES Internal Transaction Number (ITN) or AES Exemption Statement/
Exception Classification (per shipment)
(18) Split air waybill indicator (conditional)
(19) Hazmat indicator (Yes/No)
(20) UN Number (conditional) (If the hazmat indicator is yes, the four-
digit UN (United Nations) Number assigned to the hazardous material 
must be provided.)
(21) In-bond number (conditional)
(22) Mode of transportation (Air, containerized or Air, non-
containerized)

    There are currently no additional data elements identified for 
other participating U.S. Government Agencies (PGAs) for the ACE Export 
Manifest for Air Cargo Test. However, CBP may enhance the test in the 
future with additional data or processing capabilities to assist with 
facilitation of air shipment movements and to be consistent with 
Executive Order 13659. Any such enhancement will be announced in the 
Federal Register.

Eligibility Requirements

    CBP is limiting this test to nine stakeholders in the air cargo 
environment. Specifically, CBP is seeking participation from:
     At least three, but no more than six, air carriers 
currently required to file paper export air cargo manifest CBP Form 
7509 under 19 CFR 122.72 and 122.73; and
     At least three, but no more than six, freight forwarders.
    There are no restrictions with regard to organization size, 
location, or commodity type. However, participation is limited to those 
parties able to electronically transmit export manifest data in the 
identified acceptable format. Prospective ACE Export Manifest for Air 
Cargo Test participants must have the technical capability to 
electronically submit data to CBP and receive response message sets via 
Cargo-IMP, AIR CAMIR, XML, or Unified XML, and must successfully 
complete certification testing with their client representative. 
(Unified XML may not be immediately available at the start of the test. 
However, parties wishing to utilize Unified XML may be accepted, 
pending its development and implementation). Once parties have applied 
to participate, they must complete a test phase to determine if the 
data transmission is in the required readable format. Applicants will 
be notified once they have successfully completed testing and are 
permitted to participate fully in the test. In selecting participants, 
CBP will take into consideration the order in which the applications 
are received.

Conditions of Participation

    Test participants agree to submit export manifest data 
electronically to CBP via an approved EDI at least 4 hours prior to the 
loading of the cargo onto the aircraft in preparation for departure 
from the United States. In addition, test participants agree to 
establish operational security protocols that correspond to CBP hold 
messages that mandate the participant to take responsive action and 
respond to CBP confirming that the requested action was taken to 
mitigate any threat identified, respond promptly with complete and 
accurate information when contacted by CBP with questions regarding the 
data submitted, and comply with any ``Do Not Load'' instructions.
    Finally, test participants agree to participate in any 
teleconferences or meetings established by CBP, when necessary, to 
ensure any challenges, or operational or technical issues regarding the 
test are properly communicated and addressed.
    Participation in the ACE Export Manifest for Air Cargo Test does 
not impose any legally binding obligations on either CBP or the 
participant, and CBP generally does not intend to enforce or levy 
punitive measures if test participants are non-compliant with these 
conditions of participation during the test.

Application Process and Acceptance

    Those interested in participating in the ACE Export Manifest for 
Air Cargo Test should submit an email to CBP Export Manifest at 
[email protected], stating their interest and their 
qualifications based on the above eligibility requirements. The email 
will serve as an electronic signature of intent to participate and must 
also include a point of contact name and telephone number. Applications 
will be accepted until CBP has received applications from nine parties 
that meet all test participant requirements. CBP will notify applicants 
whether they have been selected to participate in the test. Applicants 
will also be notified once they have successfully completed testing and 
are permitted to participate fully in the test.
    Test participants will receive technical, operational, and policy 
guidance through all stages of test participation, from planning to 
implementation, on the necessary steps

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for the transmission of electronic export manifest data.

Costs to ACE Export Manifest for Air Cargo Test Participants

    ACE Export Manifest for Air Cargo Test participants are responsible 
for all costs incurred as a result of their participation in the test 
and such costs will vary, depending on their pre-existing 
infrastructures. Costs may be offset by a significant reduction in 
expenses associated with copying, storing, and courier services for 
presenting the paper manifest to CBP.

Benefits to ACE Export Manifest for Air Cargo Test Participants

    While the benefits to ACE Export Manifest for Air Cargo Test 
participants will vary, several advantages of joining may include:
     Reduction in costs associated with generating copies, 
transportation, and storage of paper manifest documentation;
     Increases in security by leveraging CBP threat model and 
other data to employ a risk-based approach to improve air cargo 
security and to ensure compliance with U.S. export laws, rules and 
regulations through targeted screening;
     Gains in efficiencies by automating the identification of 
high-risk cargo for enhanced screening;
     The ability to provide input into CBP efforts to 
establish, test, and refine the interface between government and 
industry communication systems for the implementation of the electronic 
export manifest; and
     Facilitation of corporate preparedness for future 
mandatory implementation of electronic export manifest submission 
requirements.

Waiver of Certain Regulatory Requirements

    For purposes of this test, the requirement to file a paper CBP Form 
7509, as provided in 19 CFR 122.72-122.75 will be waived for air 
carrier test participants that submit the ACE Export Manifest for Air 
Cargo data elements electronically as described above. If a freight 
forwarder submits the electronic ACE Export Manifest data, the air 
carrier is still required to file the paper CBP Form 7509 (or the 
electronic ACE Export Manifest data, if the air carrier is a test 
participant). The air carrier maintains responsibility for submitting 
the manifest data to CBP to cover all cargo on the aircraft, even if 
the freight forwarder has also submitted manifest data. Participation 
in the test does not alter the participant's obligations to comply with 
any other applicable statutory and regulatory requirements, including 
19 CFR 122.72-122.75, and participants will still be subject to 
applicable penalties for non-compliance. In addition, submission of 
data under the pilot does not exempt the participant from any CBP or 
other U.S. Government agency program requirements or any statutory 
sanctions in the event that a violation of U.S. export laws or 
prohibited articles are discovered within a shipment/container 
presented for export destined from the United States on an aircraft 
owned and/or operated by the participant.

Duration and Evaluation of the ACE Export Manifest for Air Cargo Test

    The test will be activated on a case-by-case basis with each 
participant and may be limited to a single or small number of ports 
until any operational, training, or technical issues on either the 
trade or government side are established and/or resolved. The test will 
run for approximately two years from August 10, 2015. While the test is 
ongoing, CBP will evaluate the results and determine whether the test 
will be extended, expanded to include additional participants, or 
otherwise modified. CBP will announce any such modifications by notice 
in the Federal Register. When sufficient test analysis and evaluation 
has been conducted, CBP intends to begin rulemaking to require the 
submission of electronic export manifest data before the cargo is 
loaded onto the aircraft for all international shipments destined from 
the United States. The results of the test will help determine the 
relevant data elements, the time frame within which data should be 
submitted to permit CBP to effectively target, identify, and mitigate 
any risk with the least impact practicable on trade operations, and any 
other related procedures and policies.

Confidentiality

    All data submitted and entered into ACE is subject to the Trade 
Secrets Act (18 U.S.C. 1905) and is considered confidential, except to 
the extent as otherwise provided by law. However, participation in this 
or any ACE test is not confidential and upon a written Freedom of 
Information Act (FOIA) request, the name(s) of an approved 
participant(s) will be disclosed by CBP in accordance with 5 U.S.C. 
552.

Misconduct Under the Test

    If a test participant fails to abide by the rules, procedures, or 
terms and conditions of this and all other applicable Federal Register 
Notices, fails to exercise reasonable care in the execution of 
participant obligations, or otherwise fails to comply with all 
applicable laws and regulations, then the participant may be suspended 
from participation in this test and/or subjected to penalties, 
liquidated damages, and/or other administrative or judicial sanction. 
Additionally, CBP has the right to suspend a test participant based on 
a determination that an unacceptable compliance risk exists.
    If CBP determines that a suspension is warranted, CBP will notify 
the participant of this decision, the facts or conduct warranting 
suspension, and the date when the suspension will be effective. In the 
case of willful misconduct, or where public health interests or safety 
are concerned, the suspension may be effective immediately. This 
decision may be appealed in writing to the Assistant Commissioner, 
Office of Field Operations, within 15 days of notification. The appeal 
should address the facts or conduct charges contained in the notice and 
state how the participant has or will achieve compliance. CBP will 
notify the participant within 30 days of receipt of an appeal whether 
the appeal is granted. If the participant has already been suspended, 
CBP will notify the participant when their participation in the test 
will be reinstated.

Paperwork Reduction Act

    As noted above, CBP will be accepting no more than nine 
participants in the ACE Export Manifest for Air Cargo Test. This means 
that fewer than ten persons will be subject to any information 
collections under this test. Accordingly, collections of information 
within this notice are exempted from the requirements of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3502 and 3507).

    Dated: July 7, 2015.
Todd C. Owen,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 2015-16943 Filed 7-9-15; 8:45 am]
 BILLING CODE 9111-14-P