[Federal Register Volume 81, Number 66 (Wednesday, April 6, 2016)]
[Proposed Rules]
[Pages 19932-19933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07894]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 81, No. 66 / Wednesday, April 6, 2016 / 
Proposed Rules  

[[Page 19932]]



DEPARTMENT OF HOMELAND SECURITY

Office of the Secretary

6 CFR Part 5

[Docket No. DHS-2016-0026]


Privacy Act of 1974; Implementation of Exemptions; Department of 
Homeland Security/U.S. Customs and Border Protection-014 Regulatory 
Audit Archive System (RAAS) System of Records

AGENCY: Privacy Office, Department of Homeland Security.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Homeland Security is giving concurrent 
notice of an updated and reissued system of records pursuant to the 
Privacy Act of 1974 for the ``Department of Homeland Security/U.S. 
Customs and Border Protection-014 Regulatory Audit Archive System of 
Records'' and this proposed rulemaking. This system of records will 
continue to manage audits that are part of DHS/CBP's continuing 
oversight of customs brokers, importers, and other parties engaged in 
international trade activities, that are the subject of a regulatory 
audit or are identified in and related to the scope of an audit report.
    In this proposed rulemaking, the Department proposes to reduce the 
number of exemptions of the system of records from one or more 
provisions of the Privacy Act because of criminal, civil, and 
administrative enforcement requirements.

DATES: Comments must be received on or before May 6, 2016.

ADDRESSES: You may submit comments, identified by docket number DHS-
2016-0026 by one of the following methods:
     Federal e-Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Fax: 202-343-4010.
     Mail: Karen L. Neuman, Chief Privacy Officer, Privacy 
Office, Department of Homeland Security, Washington, DC 20528.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.regulations.gov, including any 
personal information provided.
    Docket: For access to the docket to read background documents or 
comments received, please visit http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For general questions, please contact: 
John Connors, (202) 344-1610, Privacy Officer, U.S. Customs and Border 
Protection, Privacy and Diversity Office, 1300 Pennsylvania Avenue NW., 
Washington, DC 20229. For privacy questions, please contact: Karen L. 
Neuman, (202) 343-1717, Chief Privacy Officer, Privacy Office, 
Department of Homeland Security, Washington, DC 20528.

SUPPLEMENTARY INFORMATION: 

I. Background

    In accordance with the Privacy Act of 1974, 5 U.S.C. 552a, the 
Department of Homeland Security (DHS)/U.S. Customs and Border 
Protection (CBP) is giving notice of a proposed rule to accompany an 
updated system of records notice titled, ``DHS/CBP-014 Regulatory Audit 
Archive System (RAAS) System of Records.''
    DHS/CBP conducts regulatory audits in support of its oversight of 
customs brokers licensed by DHS/CBP pursuant to 19 U.S.C. 1641 to act 
as agents for importers in the entry of merchandise and payment of 
duties and fees. This system of records covers records about importers 
and other parties engaged in international trade activities that are 
the subject of a regulatory audit or are identified in and related to 
the scope of an audit report.
    Concurrent with this NPRM, elsewhere in the Federal Register, DHS/
CBP is updating the ``DHS/CBP-014 Regulatory Audit Archive System 
(RAAS) System of Records'' categories of records, authorities, and 
routine uses. DHS/CBP is updating the categories of records to include 
the collection of Employer Identification Numbers (EINs) or Social 
Security numbers (SSNs), also known as Federal Taxpayer Identifying 
Number, pursuant to 19 CFR 24.5, 19 CFR 149.3, and E.O. 9397, as 
amended by E.O. 13748. DHS/CBP collects this additional data to align 
RAAS with information provided by importers through the DHS/CBP 
Automated Commercial Environment System (ACE) data-source. DHS/CBP is 
also clarifying the category of records to include business and audit 
records collected or created as part of the audit process.
    DHS/CBP is clarifying the authorities section to include updated 
and more narrowly tailored authorities to permit the collection of EIN 
or SSN. 19 CFR 24.5 and 19 CFR 149.3 require that DHS/CBP collect 
Federal Taxpayer Identifying Numbers in association with services 
resulting in issuance of a bill or refund check upon adjustment of a 
cash collection or to document entities that are liable for payment of 
all duties and responsible for meeting all statutory or regulatory 
requirements incurred as a result of importation. Individuals or 
entities that do not have a SSN may submit an EIN in lieu of the SSN 
for merchandise entry purposes.
    DHS/CBP is making non-substantive edits to the Routine Uses A-G to 
align with previously published Departmental SORNs. This notice also 
includes non-substantive changes to simplify the formatting and texts 
of the previously published notice.
    Consistent with DHS's information sharing mission, information 
stored in DHS/CBP-014 RAAS may be shared with other DHS Components that 
have a need to know the information to carry out their national 
security, law enforcement, immigration, intelligence, or other homeland 
security functions. In addition, DHS/CBP may share information with 
appropriate Federal, State, local, tribal, territorial, foreign, or 
international government agencies consistent with the routine uses set 
forth in this system of records notice.
    DHS/CBP previously published a Final Rule in the Federal Register 
to exempt this system of records from certain provisions of the Privacy 
Act at 74 FR 45076 (August 31, 2009). DHS/CBP proposes to reduce the 
number of exemptions of the system of records from one or more 
provisions of the Privacy Act because of criminal, civil, and 
administrative enforcement requirements. The existing Final Rule for 
Privacy Act exemptions continues to apply until the new Final Rule is

[[Page 19933]]

published. This updated system will be included in DHS's inventory of 
record systems.

II. Privacy Act

    The Privacy Act embodies fair information practice principles in a 
statutory framework governing the means by which Federal Government 
agencies collect, maintain, use, and disseminate individuals' records. 
The Privacy Act applies to information that is maintained in a ``system 
of records.'' A ``system of records'' is a group of any records under 
the control of an agency from which information is retrieved by the 
name of an individual or by some identifying number, symbol, or other 
identifying particular assigned to the individual. In the Privacy Act, 
an individual is defined to encompass U.S. citizens and lawful 
permanent residents. As a matter of policy, DHS extends administrative 
Privacy Act protections to all individuals when systems of records 
maintain information on U.S. citizens, lawful permanent residents, and 
visitors.
    The Privacy Act allows government agencies to exempt certain 
records from the access and amendment provisions. If an agency claims 
an exemption, however, it must issue a Notice of Proposed Rulemaking to 
make clear to the public the reasons why a particular exemption is 
claimed.
    DHS is revising the previously claimed exemptions from certain 
requirements of the Privacy Act for DHS/CBP-014 Regulatory Audit 
Archive System (RAAS) System of Records. DHS/CBP is not requesting an 
exemption with respect to information maintained in the system as it 
relates to data submitted by or on behalf of a subject of an audit. The 
Privacy Act requires DHS to maintain an accounting of the disclosures 
made pursuant to all routines uses. Disclosing the fact that a law 
enforcement or intelligence agency has sought particular records may 
affect ongoing law enforcement activity. Therefore, pursuant to 5 
U.S.C. 552a(k)(2), DHS will claim exemption from sec. (c)(3) of the 
Privacy Act of 1974, as amended, as is necessary and appropriate to 
protect this information.
    Some information in DHS/CBP-014 Regulatory Audit Archive System 
(RAAS) System of Records relates to official DHS law enforcement 
activities. These exemptions are needed to protect information relating 
to DHS law enforcement activities from disclosure to subjects or others 
related to these activities. Specifically, the exemptions are required 
to preclude subjects of these activities from frustrating these 
processes; to avoid disclosure of activity techniques; to protect the 
identities and physical safety of confidential informants and law 
enforcement personnel; to ensure DHS's ability to obtain information 
from third parties and other sources; to protect the privacy of third 
parties; and to safeguard classified information. Disclosure of 
information to the subject of the inquiry could also permit the subject 
to avoid detection or apprehension.
    The exemption proposed here is a standard law enforcement exemption 
exercised by a large number of Federal law enforcement agencies. In 
appropriate circumstances, when compliance would not appear to 
interfere with or adversely affect the law enforcement purposes of this 
system and the overall law enforcement process, the applicable 
exemptions may be waived on a case-by-case basis.
    A system of records notice for DHS/CBP-014 Regulatory Audit Archive 
System (RAAS) System of Records is also published in this issue of the 
Federal Register.

List of Subjects in 6 CFR Part 5

    Freedom of information, Privacy.

    For the reasons stated in the preamble, DHS proposes to amend 
chapter I of title 6, Code of Federal Regulations, as follows:

PART 5--DISCLOSURE OF RECORDS AND INFORMATION

0
1. The authority citation for part 5 continues to read as follows:

    Authority:  Pub. L. 107-296, 116 Stat. 2135; (6 U.S.C. 101 et 
seq.); 5 U.S.C. 301. Subpart A also issued under 5 U.S.C. 552. 
Subpart B also issued under 5 U.S.C. 552a.

0
2. In appendix C to part 5, revise paragraph 25 to read as follows:

Appendix C to Part 5--DHS Systems of Records Exempt From the Privacy 
Act

* * * * *
    25. The Department of Homeland Security/U.S. Customs and Border 
Protection-014 Regulatory Audit Archive System (RAAS) System of 
Records consists of electronic and paper records and will be used by 
DHS and its Components. The DHS/CBP-014 RAAS System of Records is a 
repository of information held by DHS in connection with its several 
and varied missions and functions, including, but not limited to: 
The enforcement of civil and criminal laws; investigations, 
inquiries, and proceedings there under. The DHS/CBP-014 RAAS System 
of Records contains information that is collected by, on behalf of, 
in support of, or in cooperation with DHS and its Components and may 
contain personally identifiable information collected by other 
Federal, State, local, tribal, foreign, or international government 
agencies. The Secretary of Homeland Security, pursuant to 5 U.S.C. 
552a(k)(2), has exempted this system from the following provisions 
of the Privacy Act: 5 U.S.C. 552a(c)(3). Exemptions from these 
particular subsections are justified, on a case-by-case basis to be 
determined at the time a request is made, for the following reasons:
    (a) From subsec. (c)(3) (Accounting for Disclosures) because 
release of the accounting of disclosures could alert the subject of 
an investigation of an actual or potential criminal, civil, or 
regulatory violation to the existence of that investigation and 
reveal investigative interest on the part of DHS as well as the 
recipient agency. Disclosure of the accounting would therefore 
present a serious impediment to law enforcement efforts and/or 
efforts to preserve national security. Disclosure of the accounting 
would also permit the individual who is the subject of a record to 
impede the investigation, to
    (b) tamper with witnesses or evidence, and to avoid detection or 
apprehension, which would undermine the entire investigative 
process.
* * * * *

    Dated: March 22, 2016.
Karen L. Neuman,
Chief Privacy Officer, Department of Homeland Security.

[FR Doc. 2016-07894 Filed 4-5-16; 8:45 am]
 BILLING CODE 9111-14-P