[Federal Register Volume 80, Number 202 (Tuesday, October 20, 2015)]
[Notices]
[Pages 63576-63579]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26610]



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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 
Entry Type 52 and Certain Other Modes of Transportation

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 Cargo Release in the Automated Commercial Environment 
(ACE) to allow importers and brokers to file electronically entry type 
52, in addition to entry types 01, 03, and 11 that are already 
available for electronic filing, for merchandise arriving by truck, 
rail, vessel, and air, as well as arriving by mail, pedestrian, and 
passenger (hand-carried).

DATES: The ACE Cargo Release test modifications set forth in this 
document will begin on or about November 19, 2015. This test will 
continue until concluded by way of a document published in the Federal 
Register. Public comments are invited and will be accepted for the 
duration of the test.

ADDRESSES: Comments concerning this notice and any aspect of this test 
may be submitted at any time during the test via email to Josephine 
Baiamonte, Director, Business Transformation, ACE Business Office, 
Office of International Trade, at [email protected]. In 
the subject line of your email, please use, ``Comment on Expansion of 
Automated Entry Type 52 for ACE Cargo Release.''

FOR FURTHER INFORMATION CONTACT: For technical questions related to the 
Automated Commercial Environment (ACE) or Automated Broker Interface 
(ABI) transmissions, contact your assigned client representative. 
Interested parties without an assigned client representative should 
direct their questions to Steven Zaccaro at 
[email protected] with the subject heading ``Automated Entry 
Type 52 for ACE Cargo Release--Request to Participate.''

SUPPLEMENTARY INFORMATION:

I. Background

    The National Customs Automation Program (NCAP) was established by 
Subtitle B of Title VI--Customs Modernization (Customs Modernization 
Act) in the North American Free Trade Agreement Implementation Act, 
Public Law 103-182, 107 Stat. 2057 (19 U.S.C. 1411). 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 processing commercial trade data 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 U.S. Customs and Border Protection (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 specific 
legacy ACS functions. Each release will begin with a test and, if the 
test is successful, will end with the mandatory use of the new ACE 
feature, thus retiring the legacy ACS function. Each release builds on 
previous releases and sets the foundation for subsequent releases.
    For the convenience of the public, a chronological listing of 
Federal Register publications detailing ACE test developments is set 
forth below in Section XVI, entitled, ``Development of ACE 
Prototypes.'' The procedures and criteria applicable to participation 
in the ACE Cargo Release test and prior ACE tests remain in effect 
except as explicitly changed by this notice or subsequent notices 
published in the Federal Register.

II. Authorization for Modification of the ACE Cargo Release Test

    The Customs Modernization Act provides the Commissioner of CBP with 
authority to conduct limited test programs or procedures designed to 
evaluate planned components of the NCAP. The ACE Cargo Release Test, as 
modified in this notice, is authorized pursuant to 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. See Treasury 
Decision (T.D.) 95-21, 60 FR 14211 (March 16, 1995).

III. ACE Cargo Release Test

    On November 9, 2011, CBP published in the Federal Register (76 FR 
69755) a notice announcing an NCAP test concerning ACE Simplified Entry 
to simplify the entry process for type ``01'' (consumption) and type 
``11'' (informal) commercial entries by reducing the number of data 
elements required to obtain release for cargo imported by air. In a 
general notice titled ``Modification of National Customs Automation 
Program Test Concerning Automated Commercial Environment (ACE) Cargo 
Release,'' published in the Federal Register (78 FR 66039) on November 
4, 2013, CBP modified the ACE Simplified Entry Test and renamed it the 
ACE Cargo Release Test. The ACE Cargo Release Test provided additional 
capabilities to test participants and expanded eligibility by 
eliminating the Customs-Trade Partnership Against Terrorism (C-TPAT) 
status requirement for importer self-filers and customs brokers. On 
February 3, 2014, CBP published a notice in the Federal Register (79 FR 
6210) announcing modification of the ACE Cargo Release Test to include 
the ocean and rail modes of transportation. CBP further modified the 
ACE Cargo Release Test in a notice published in the Federal Register on 
May 2, 2014 (79 FR 25142) to expand the enhanced functionality under 
the test to include cargo imported by truck. On February 10, 2015, CBP 
published a notice in the Federal Register (80 FR 7487) to modify the 
name of one data element (i.e., consignee number) and allow authorized 
importer and customs brokers to submit the ACE Cargo Release entry and 
Importer Security Filing (ISF) in a combined transmission to CBP. On 
March 27, 2015, CBP published a notice in the Federal Register (80 FR 
16414) modifying the ACE Cargo Release Test to include type 03 entries 
(for merchandise subject to antidumping or countervailing duties) 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 that has been moved in-bond from the U.S. port of unlading.

IV. Modifications of ACE Cargo Release Test

    This notice announces that CBP will modify the ACE Cargo Release 
test in order to allow brokers and importers, who are also ACE 
participants, to file electronically, for air, ocean, rail, and truck 
modes of transportation as well as for mail, pedestrian, and passenger 
(hand-carried) modes of transportation, a simplified entry for the 
release of cargo for entry type 52 (i.e., Government--Dutiable (other 
than the Defense Contract Management Command (DCMAO)), in addition to 
filing a simplified entry for the release of cargo for entry types 01, 
03, and 11.

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V. Eligibility Requirements

    To be eligible to apply for this test, the applicant must: (1) Be a 
self-filing importer or broker who has the ability to file ACE Cargo 
Release, the corresponding entry summary in ACE, and to file ACE Entry 
Summary certified for cargo release; or (2) have shown the intent to 
file ACE Cargo Release, the corresponding entry summary in ACE, and to 
file ACE Entry Summary certified for cargo release.
    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. For a complete 
discussion on procedures for obtaining an ACE Portal Account, please 
see the General Notice, 73 FR 50337 (August 26, 2008). Any importers 
not self-filing must ensure its broker has the capability to file entry 
summaries in ACE.

VI. Test Participation Selection Criteria

    The ACE Cargo Release test is open to all importers and customs 
brokers filing ACE Entry Summaries for cargo transported by air, ocean, 
rail, and truck modes of transportation, as well as by mail, 
pedestrian, and passenger (hand-carried) modes of transportation. 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, as 
part of its request to participate, its filer code and the port(s) at 
which it is interested in filing ACE Cargo Release transaction data. 
ACE Cargo Release data may be submitted at all ports of entry for entry 
type 52 as of November 19, 2015, and for authorized entry types, i.e., 
entry types 01, 03, 11, which are already available for electronic 
filing.
    Applicants will be notified by a CBP client representative if they 
have been selected to participate in this test.

VII. Filing Capabilities and Requirements

    The filing capabilities and functionalities for the ACE Cargo 
Release tests that are set forth in the above-mentioned Federal 
Register notices (i.e., 76 FR 69755, 78 FR 66039, 79 FR 6210, 79 FR 
25142, 80 FR 7487, and 80 FR 16414) continue to apply and are now 
expanded to include ACE-participating importers and customs brokers 
filing type 52 entries, to allow automated filing and processing for 
cargo conveyed by any mode of transportation, including by the air, 
ocean, rail, and truck modes 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). Participants 
in this test who file ACE Cargo Release data must also file the 
corresponding entry summary in ACE. Alternatively, test participants 
may file an ACE Entry Summary certified for release in lieu of an ACE 
Cargo Release.

VIII. Functionality

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

IX. Test Duration

    This modified ACE Cargo Release test will begin on or about 
November 19, 2015. This test will conclude by way of a document 
published in the Federal Register.

X. Comments

    All interested parties are invited to comment on any aspect of this 
test at any time. CBP requests comments and feedback on all aspects of 
this test, including the design, conduct and implementation of the 
test, in order to determine whether to modify, alter, expand, limit, 
continue, end, or fully implement this program.

XI. Waiver of Regulations Under This Test

    For purposes of this test, any provision in title 19 of the Code of 
Federal Regulations including, but not limited to, the provisions found 
in parts 18, 141, 142, and 143 thereof relating to entry filing and 
processing that are inconsistent with the requirements set forth in 
this notice are waived for the duration of the test. See 19 CFR 
101.9(b). This document does not waive any recordkeeping requirements 
found in part 163 of title 19 of the Code of Federal Regulations (19 
CFR part 163) and the Appendix to part 163 (commonly known as the 
``(a)(1)(A) list'').

XII. Previous Notices

    All requirements, terms and conditions, and aspects of the ACE test 
discussed in previous notices are hereby incorporated by reference into 
this notice and continue to be applicable, unless changed by this 
notice.

XIII. Paperwork Reduction Act

    The collection of information for the ACE Cargo Release Test and 
ISF have been approved by the Office of Management and Budget (OMB) in 
accordance with the requirements of the Paperwork Reduction Act (44 
U.S.C. 3507). The OMB information collection number for the ACE Cargo 
Release Test is 1651-0024 and the OMB information collection number for 
ISF is 1651-0001. An agency may not conduct or sponsor, and a person is 
not required to respond to, a collection of information unless it 
displays a valid control number assigned by OMB.

XIV. 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. As stated in previous notices, 
participation in this or any of the previous ACE tests is not 
confidential and upon a written Freedom of Information Act (FOIA) 
request, a name(s) of an approved participant(s) will be disclosed by 
CBP in accordance with 5 U.S.C. 552.

XV. Misconduct Under the Test

    A test participant may be subject to civil and criminal penalties, 
administrative sanctions, liquidated damages, or discontinuance from 
participation in this test for any of the following:
    (1) Failure to follow the terms and conditions of this test;
    (2) Failure to exercise reasonable care in the execution of 
participant obligations;
    (3) Failure to abide by applicable laws and regulations that have 
not been waived; or
    (4) 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 warranting the action. The test 
participant will be offered the opportunity to appeal the Director's 
decision in writing within 10 calendar days of receipt of the written 
notice. The

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appeal must be submitted to Acting Executive Director, ABO, Office of 
International Trade, by emailing [email protected].
    The Acting Executive Director will issue a decision in writing on 
the proposed action within 30 working days after receiving a timely 
filed appeal from the test participant. If no timely appeal is 
received, the proposed notice becomes the final decision of the Agency 
as of the date that the appeal period expires. A proposed 
discontinuance of a test participant's privileges will not take effect 
unless the appeal process under this paragraph has been concluded with 
a written decision adverse to the test participant.
    In the case of willfulness or those in which public health, 
interest, or safety so requires, the Director, Business Transformation, 
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 immediate action. The test participant will be 
offered the opportunity to appeal the Director's decision within 10 
calendar days of receipt of the written notice providing for immediate 
discontinuance. The appeal must be submitted to Acting Executive 
Director, ABO, Office of International Trade, by emailing 
[email protected]. The immediate discontinuance will remain 
in effect during the appeal period. The Executive Director will issue a 
decision in writing on the discontinuance within 15 working days after 
receiving a timely filed appeal from the test participant. If no timely 
appeal is received, the notice becomes the final decision of the Agency 
as of the date that the appeal period expires.

XVI. Development of ACE Prototypes

    A chronological listing of Federal Register publications detailing 
ACE test developments is set forth below.
     ACE Portal Accounts and Subsequent Revision Notices: 67 FR 
21800 (May 1, 2002); 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 (ACE) Document Image 
System: 79 FR 36083 (June 25, 2014).
     Announcement of eBond Test: 79 FR 70881 (November 28, 
2014).
     eBond Test Modifications and Clarifications: Continuous 
Bond Executed Prior to or Outside the eBond Test May Be Converted to an 
eBond by the Surety and Principal, Termination of an eBond by Filing 
Identification Number, and Email Address Correction: 80 FR 899 (January 
7, 2015).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning Automated Commercial Environment (ACE) Document Image 
System Relating to Animal and Plant Health Inspection Service (APHIS) 
Document Submissions: 80 FR 5126 (January 30, 2015).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning the use of Partner Government Agency Message Set 
through the Automated Commercial Environment (ACE) for the Submission 
of Certain Data Required by the Environmental Protection Agency (EPA): 
80 FR 6098 (February 4, 2015).
     Announcement of Modification of ACE Cargo Release Test to 
Permit the Combined Filing of Cargo Release and Importer Security 
Filing (ISF) Data: 80 FR 7487 (February 10, 2015).
     Modification of NCAP Test Concerning ACE Cargo Release for 
Type 03 Entries and Advanced Capabilities for Truck Carriers: 80 FR 
16414 (March 27, 2015).
     Automated Commercial Environment (ACE) Export Manifest for

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Air Cargo Test; 80 FR 39790 (July 10, 2015).
     National Customs Automation Program (NCAP) Concerning 
Remote Location Filing Entry Procedures in the Automated Commercial 
Environment (ACE) and the Use of the Document Image System for the 
Submission of Invoices and the Use of eBonds for the Transmission of 
Single Transaction Bonds: 80 FR 40079 (July 13, 2015).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning the Automated Commercial Environment (ACE) Partner 
Government Agency (PGA) Message Set Regarding Types of Transportation 
Modes and Certain Data Required by the National Highway Traffic Safety 
Administration (NHTSA): 80 FR 47938 (August 10, 2015).
     Modification of National Customs Automation Program (NCAP) 
Test Concerning the Submission of Certain Data Required by the Food and 
Drug Administration (FDA) Using the Partner Government Agency (PGA) 
Message Set Through the Automated Commercial Environment (ACE): 80 FR 
52051 (August 27, 2015).
     Automated Commercial Environment (ACE) Export Manifest for 
Rail Cargo Test: 80 FR 54305 (September 7, 2015).

    Dated: October 15, 2015.
Cynthia F. Whittenburg,
Acting Assistant Commissioner, Office of International Trade.
[FR Doc. 2015-26610 Filed 10-19-15; 8:45 am]
BILLING CODE 9111-14-P