[Federal Register Volume 80, Number 203 (Wednesday, October 21, 2015)]
[Notices]
[Pages 63815-63817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26608]


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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) Entry Summary, 
Accounts and Revenue (ESAR) Test of Automated Entry Summary Types 51 
and 52 and Certain 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 the Entry Summary, Accounts and Revenue (ESAR) test 
program in the Automated Commercial Environment (ACE) to allow 
importers and brokers to file electronically entry summary data for 
entry types 51 and 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 ESAR test modifications set forth in this document will 
begin on or about November 20, 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 message, please use, ``Comment on 
Expansion of Automated Entry Summary for Entry Types 51 and 52.''

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 line heading ``Expansion 
of Automated Entry Summary for Entry Types 51 and 52-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 forth 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 XIV, entitled, ``Development of ACE 
Prototypes.'' The procedures and criteria related to participation in 
the prior ACE test pilots remain in effect unless otherwise explicitly 
changed by this or subsequent notices published in the Federal 
Register.

II. Authorization for the 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 ESAR 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. Modifications of ACE ESAR Test

    On October 18, 2007, CBP published a General Notice in the Federal 
Register (72 FR 59105) announcing CBP's plan to conduct a new test 
concerning ACE entry summary, accounts and revenue capabilities, that 
provided for enhanced account management functions for ACE Portal 
Accounts and expanding the universe of ACE account types. That test 
notice is commonly referred to as ESAR I. As stated in that notice, ACE 
is now the lead system for CBP-required master data elements (e.g., 
company name, address, and point of contact) as well as related 
reference files (e.g., country code, port code, manufacturer ID, and 
gold currency exchange rate and conversion calculator).
    This notice announces that CBP will modify the ESAR 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, the ACE entry summary for entry type 
51 (i.e., merchandise imported by the Defense Contract Management 
Command (DCMAO NY) Military Only), and for entry type 52 (i.e., 
Government--Dutiable (other than DCMAO NY)), in addition to entry types 
01, 03, and 11.

IV. Eligibility Requirements

    Importer and broker volunteers who wish to participate in this test 
must have an ACE Portal Account (see notices referenced below relating 
to the establishment of ACE Portal Accounts). ABI volunteers wishing to 
participate in this test must:
    (1) Use statement or single pay for payment processing; and
    (2) Use a software package that has completed ABI certification 
testing for ACE.
    Test participants must meet all the eligibility criteria described 
in this document in order to participate in the test program.

V. Test Participation Selection Criteria

    The ACE ESAR test is open to all importers and customs brokers 
filing ACE Entry Summaries for cargo

[[Page 63816]]

transported by the air, ocean, rail, and truck modes of transportation 
as well as by the mail, pedestrian, and passenger (hand-carried) modes 
of transportation. 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 entry summary data. 
ACE entry summary data may be submitted at all ports of entry for entry 
types 51 and 52 as of November 20, 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.

VI. Filing Capabilities and Requirements

    The filing capabilities and functionalities for the ACE ESAR tests 
that were set forth in previous Federal Register notices (i.e., 78 FR 
69434 (November 19, 2013), 76 FR 37136 (June 24, 2011), 74 FR 69129 
(December 30, 2009), 74 FR 9826 (March 6, 2009), 73 FR 50337 (August 
26, 2008), and 72 FR 59105 (October 18, 2008)) continue to apply and 
are now expanded to include ACE-participating importers and customs 
brokers filing entry summaries for type 51 and 52 entries, for cargo 
conveyances arriving by any mode of transportation, including by the 
air, ocean, rail, and truck modes of transportation. In lieu of filing 
the entry in ACE Cargo Release test participants may file an ACE Entry 
Summary certified for release.

VII. Test Duration

    This ACE Entry Summary, Accounts and Revenue test, as modified, 
will begin on or about November 20, 2015. This test will conclude by 
way of a document published in the Federal Register.

VIII. 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.

IX. 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 141, 142, 143, and 149 thereof relating to entry summary 
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'').

X. 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.

XI. Paperwork Reduction Act

    The collection of information contained in this ACE Entry Summary, 
Accounts and Revenue test has 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) and assigned OMB control number 1651-
0022. 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.

XII. 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.

XIII. 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 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.

XIV. 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).

[[Page 63817]]

     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 
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. 2015-26608 Filed 10-20-15; 8:45 am]
BILLING CODE 9111-14-P