[Federal Register Volume 80, Number 174 (Wednesday, September 9, 2015)]
[Notices]
[Pages 54305-54308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-22671]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Automated Commercial Environment (ACE) Export Manifest for Rail 
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 Rail Cargo Test, a National Customs 
Automation Program (NCAP) test concerning ACE export manifest 
capability. The ACE Export Manifest for Rail Cargo Test is a voluntary 
test in which participants agree to submit export manifest data 
electronically at least 2 hours prior to loading of the cargo onto the 
rail car in preparation for departure from the United States or, for 
empty rail cars, upon assembly of the train. CBP regulations do not 
require carriers to submit a manifest for export rail shipments. 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 October 9, 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 
Rail Cargo Test must be submitted via email to CBP Rail Export Manifest 
at [email protected]. In the subject ine of the email, 
please use ``ACE Export Manifest for Rail Cargo Test Application''. 
Written comments concerning program, policy, and technical issues may 
also be submitted via email to CBP Rail Export Manifest at 
[email protected]. In the subject line of the email, 
please use ``Comment on ACE Export Manifest for Rail Cargo Test''.

FOR FURTHER INFORMATION CONTACT: Vincent C. Huang, 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, or to create a new 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 as applicable. 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,

[[Page 54306]]

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 Rail Cargo Export Information Requirements

    Under existing regulations, rail carriers are not required to 
submit a paper or electronic manifest for cargo exported from the 
United States by rail. However, as discussed below, under 19 CFR 
192.14, the U.S. Principal Party in Interest (USPPI) is required to 
submit certain advance information to CBP for export cargo leaving the 
United States by rail.\1\
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    \1\ The USPPI is defined in the Bureau of the Census Foreign 
Trade Regulations (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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    Section 343(a) of the Trade Act of 2002, as amended (Trade Act) (19 
U.S.C. 2071 note), required 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.
    Under 19 CFR 192.14, the USPPI must file any required Electronic 
Export Information (EEI) for the cargo on the train in the Automated 
Export System (AES). The USPPI or its authorized agent must transmit 
and verify system acceptance of this EEI, generally no later than 2 
hours prior to the arrival of the train at the border. The rail 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. While the rail carrier is not 
required to submit a rail cargo export manifest to CBP, the outbound 
rail carrier must annotate the carrier's outward 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) (See 15 CFR part 30).

Description of the ACE Export Manifest for Rail Cargo Test

Purpose

    The ACE Export Manifest for Rail Cargo Test will test the 
feasibility of requiring rail carriers to file export manifest data. In 
addition, the ACE Export Manifest for Rail Cargo Test will test the 
functionality regarding the filing of export manifest data for rail 
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 Rail Cargo Test will also test the 
feasibility of requiring the rail carrier to submit manifest 
information electronically in ACE generally within a specified time 
before the cargo is loaded on the train. As described in the paragraph 
below, in the test, participants will submit export manifest data 
electronically to ACE at least 2 hours prior to loading of the cargo 
or, for empty rail cars, upon assembly of the train. This timeframe 
will also enable CBP to link the EEI submitted by the USPPI with the 
export manifest information. 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 Rail Cargo Test agree 
to provide export manifest data electronically at least 2 hours prior 
to loading of the cargo onto the train in preparation for departure 
from the United States or, for empty rail cars, upon assembly of the 
train. The ACE Export Manifest data submission will be used to target 
high-risk rail cargo. CBP expects that test participants will have 
access to the manifest data early in the planning stages of an export 
rail cargo transaction and will be able to comply with these 
timeframes. CBP anticipates that these timeframes will provide CBP 
adequate time to perform 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. Although CBP 
will aim to identify shipments for inspection prior to loading, 
inspections could potentially happen at any time before the train 
departs the United States.
    Any rail 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 Rail Cargo Test 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 shipment or cargo. The ACE Export Manifest 
for Rail Cargo data elements are to be submitted at the lowest bill 
level. The data elements for all shipments, including empty rail cars, 
consist of:


[[Page 54307]]


(1) Mode of Transportation (Rail, containerized or Rail, non-
containerized)
(2) Port of Departure from the United States
(3) Date of Departure
(4) Manifest Number
(5) Train Number
(6) Rail Car Order
(7) Car Locator Message
(8) Hazmat Indicator (Yes/No)
(9) 6-character Hazmat Code (conditional) (If the hazmat indicator is 
yes, then UN (for United Nations Number) or NA (North American Number) 
and the corresponding 4-digit identification number assigned to the 
hazardous material must be provided.)
(10) Marks and Numbers
(11) SCAC (Standard Carrier Alpha Code) for exporting carrier
(12) Shipper name and address (For empty rail cars, the shipper may be 
the railroad from whom the rail carrier received the empty rail car to 
transport.)
(13) Consignee name and address (For empty rail cars, the consignee may 
be the railroad to whom the rail carrier is transporting the empty rail 
car.)
(14) Place where the rail carrier takes possession of the cargo 
shipment or empty rail car
(15) Port of Unlading
(16) Country of Ultimate Destination
(17) Equipment Type Code
(18) Container Number(s) (for containerized shipments) or Rail Car 
Number(s) (for all other shipments)
(19) Empty Indicator (Yes/No)

    If the empty indicator is no, then the following data elements must 
also be provided, as applicable:

(20) Bill Of Lading Numbers (Master and House)
(21) Bill of Lading type (Master, House, Simple or Sub)
(22) Number of house bills of lading
(23) Notify Party name and address (conditional)
(24) AES Internal Transaction Number or AES Exemption Statement (per 
shipment)
(25) Cargo Description
(26) Weight of Cargo (may be expressed in either pounds or kilograms)
(27) Quantity of Cargo and Unit of Measure
(28) Seal Number
(29) Split Shipment Indicator (Yes/No)
(30) Portion of split shipment (e.g. 1 of 10, 4 of 10, 5 of 10--Final. 
etc.) (conditional)
(31) In-bond number (conditional)
(32) Mexican Pedimento Number (only for shipments for export to Mexico) 
(conditional)

    There are currently no additional data elements identified for 
other participating U.S. Government Agencies (PGAs) for the ACE Export 
Manifest for Rail Cargo Test. However, CBP may enhance the test in the 
future with additional data or processing capabilities to assist with 
facilitation of rail 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 rail carriers. There are no 
restrictions with regard to organization size, location, or commodity 
type. However, participation is limited to those parties who are able 
to electronically transmit export manifest data in the identified 
acceptable format. Prospective ACE Export Manifest for Rail Cargo Test 
participants must have the technical capability to electronically 
submit data to CBP and receive response message sets via Cargo-ANSI X12 
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, participants 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 2 hours prior to the 
loading of the cargo onto the rail car in preparation for departure 
from the United States, or, for empty rail cars, upon assembly of the 
train. 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 Rail 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 
Rail Cargo Test should submit an email to CBP Rail 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 for the transmission of 
electronic export manifest data.

Costs to ACE Export Manifest for Rail Cargo Test Participants

    ACE Export Manifest for Rail 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.

Benefits to ACE Export Manifest for Rail Cargo Test Participants

    While the benefits to ACE Export Manifest for Rail Cargo Test 
participants will vary, several advantages of joining may include:
     Reduction in costs associated with fewer examinations 
required after cargo is already loaded on the rail car;
     Reduction in delays and associated costs as a result of 
fewer trains being stopped for inspection at the borders or less cargo 
being returned to CBP custody for inspection once the cargo has 
departed the United States;

[[Page 54308]]

     More real time accurate transportation data, such as date 
and port of export, when linked to the AES EEI filing, thereby 
potentially reducing the likelihood of penalties (issued to exporters 
and/or carriers) pursuant to 15 CFR part 30 for incorrect information;
     Increases in security by leveraging CBP threat model and 
other data to employ a risk-based approach to improve rail cargo 
security and to ensure compliance with U.S. export laws, rules and 
regulations through targeted 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 system;
     Facilitation of corporate preparedness for future 
mandatory implementation of electronic export manifest submission 
requirements; and
     Facilitation of the movement of legitimate cargo being 
transported by rail across U.S. borders with Canada and Mexico.

Regulatory and Statutory Requirements

    Participation in the ACE Export Manifest for Rail Cargo Test does 
not alter the participant's obligations to comply with any other 
applicable statutory and regulatory requirements and participants will 
still be subject to applicable penalties for non-compliance. In 
addition, submission of data under the test 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 a train owned and/or operated by the participant.

Duration and Evaluation of the ACE Export Manifest for Rail 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 October 9, 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 train 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 Rail 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: September 3, 2015.
Todd C. Owen,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 2015-22671 Filed 9-8-15; 8:45 am]
BILLING CODE 9111-14-P