[Federal Register Volume 82, Number 5 (Monday, January 9, 2017)]
[Notices]
[Pages 2385-2389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00128]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Modification and Clarification of the National Customs Automation 
Program Tests Regarding Post-Summary Corrections and Periodic Monthly 
Statements; Republication With Correction and Further Clarification

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice; republication with correction and further 
clarification.

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SUMMARY: On December 12, 2016, U.S. Customs and Border Protection (CBP) 
published in the Federal Register a document announcing CBP's plans to 
modify and clarify the National Customs Automation Program (NCAP) test 
regarding Post-Summary Correction (PSC) claims to entry summaries that 
are filed in the Automated Commercial Environment (ACE), as well as the 
Periodic Monthly Statement (PMS) test. The notice liberalized and 
eliminated some requirements needed for the filing of PSCs; however, it 
also placed burdens on the importer in the form of a restriction and a 
prohibition.
    Subsequently, CBP decided to remove the restriction imposed on all 
PSC filings to make payments within three business days of submitting 
the PSC, with the exception of entry type 03 filings, and to remove the 
prohibition of filing additional PSCs until additional

[[Page 2386]]

duties, fees and taxes are deposited. This document republishes and 
supersedes the document published on December 12 with these corrections 
and clarifications. Except to the extent expressly announced or 
modified by this document, all aspects, rules, terms and conditions 
announced in notices previous to this notice and the December 12 
publication regarding the tests remain in effect.

DATES: The changes made by this notice are effective January 14, 2017.

ADDRESSES: Comments concerning these test programs may be submitted via 
email to Monica Crockett at [email protected] with a subject line 
identifier reading, ``Post-Summary Corrections and Periodic Monthly 
Statements.''

FOR FURTHER INFORMATION CONTACT: For policy-related questions, contact 
Randy Mitchell, Director, Commercial Operations, Trade Policy and 
Programs, Office of Trade, at [email protected]. For technical 
questions related to ABI transmissions, contact your assigned client 
representative. Interested parties without an assigned client 
representative should direct their questions to the Client 
Representative Branch at (703) 650-3500.

SUPPLEMENTARY INFORMATION: On December 12, 2016, U.S. Customs and 
Border Protection (CBP) published a notice in the Federal Register (81 
FR 89482) announcing plans to modify and clarify, effective on January 
14, 2017, the National Customs Automation Program (NCAP) test regarding 
Post-Summary Correction (PCS) claims, and the Periodic Monthly 
Statement (PMS) test. The notice announced seven changes to the PSC 
test. Subsequently, CBP decided not to implement two of the changes. 
One of the changes relates to the requirement of submitting additional 
duties, fees and taxes within three business days of filing a PSC. This 
notice alleviates the requirement imposed on all PSC filings and limits 
the restriction of submitting payment to PSC filings declaring an 
increase of liability for antidumping/countervailing duties and 
associated fees and taxes. This notice also removes the prohibition of 
filing additional PSCs until the duties, fees and taxes are deposited. 
With this notice, CBP modifies section 3 (``Deposit of Duties, Fees and 
Taxes With PSC Showing Increase in Liability'') and removes section 5 
(``Elimination of CBP's Policy of Rejecting a PSC When There is No 
Deposit of Antidumping and/or Countervailing Duties at Time of 
Submission of PSC'') of the published notice on December 12.
    This document also provides the correct CBP point of contact for 
making a deposit, and clarifies the method and location of payment of 
additional deposits of duties, fees and taxes. In addition, this notice 
clarifies how CBP will determine the time of payment of duties, fees 
and taxes.
    For ease of reference, the December 12 document is republished 
below with the aforementioned changes.

I. Background

Post-Summary Correction (PSC) and Periodic Monthly Statement (PMS) Test 
Programs

    The National Customs Automation Program (NCAP) was established by 
Subtitle B of Title VI--Customs Modernization in the North American 
Free Trade Agreement (NAFTA) Implementation Act (Customs Modernization 
Act) (Pub. L. 103-182, 107 Stat. 2057, 2170, December 8, 1993) (19 
U.S.C. 1411). Through NCAP, the 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) as the CBP-authorized electronic data interchange (EDI) 
system. 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 specific legacy ACS 
functions and add new functionality. Section 101.9(b) of title 19 of 
the Code of Federal Regulations (19 CFR 101.9(b)) provides for the 
testing of NCAP components. See T.D. 95-21, 60 FR 14211 (March 16, 
1995). A list of ACE tests is provided in Section III below.
1. PSC Test Program
    On June 24, 2011, CBP published a notice in the Federal Register 
(76 FR 37136) that announced a plan to conduct an NCAP test concerning 
new ACE capabilities which allow importers to file a PSC for certain 
entry summaries using the Automated Broker Interface (ABI). Importers 
and brokers are also allowed to use ABI to file a PSC to those pre-
liquidation ACE entry summaries that were accepted by CBP, fully paid, 
and under CBP control. On November 19, 2013, CBP published a notice in 
the Federal Register modifying and clarifying the terms and conditions 
of the PSC test. See 78 FR 69434.
2. PMS Test Program
    On February 4, 2004, CBP published a notice in the Federal Register 
(69 FR 5362) that announced a plan to conduct an NCAP test concerning 
PMS which allows importers to deposit estimated duties, fees and taxes 
on a monthly basis. CBP modified and clarified the PMS test in seven 
subsequent Federal Register notices published on: September 8, 2004 (69 
FR 54302); February 1, 2005 (70 FR 5199); August 8, 2005 (70 FR 45736); 
September 22, 2005 (70 FR 55623); January 20, 2006 (71 FR 3315); June 
2, 2006 (71 FR 32114); and October 17, 2008 (73 FR 61891).

II. Test Modifications and Clarifications

    This document announces numerous modifications and clarifications 
to the PSC and PMS tests. Each modification and clarification is 
discussed separately below. This document supersedes the December 12 
notice and, except to the extent expressly announced or modified by 
this document, all aspects, rules, terms, requirements, obligations and 
conditions announced in notices previous to this notice and the 
December 12 publication regarding the PSC and PMS tests remain in 
effect.

A. Modifications and Clarifications of the PSC Test

1. Expansion of Entry Types
    This document announces that CBP is expanding the type of entries 
that may be corrected by filing a PSC, in addition to the current entry 
types 01 (Consumption--Free and Dutiable) and 03 (Consumption--
Antidumping/Countervailing Duty). The additional entry types are as 
follows:
     02--Consumption--Quota/Visa.
     06--Consumption--Foreign Trade Zone (FTZ).
     07--Consumption--Antidumping/Countervailing Duty and 
Quota/Visa Combination.
     21--Warehouse.
     22--Re-Warehouse.
     23--Temporary Importation Bond (TIB).
     31--Warehouse Withdrawal--Consumption.
     32--Warehouse Withdrawal--Quota.

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     34--Warehouse Withdrawal--Antidumping/Countervailing Duty.
     38--Warehouse Withdrawal--Antidumping/Countervailing Duty 
& Quota/Visa Combination.
     51--Defense Contract Administration Service Region 
(DCASR).
     52--Government--Dutiable.
2. Merchandise Subject to Quota
    When filing a PSC for an entry of merchandise subject to quota, the 
date and time of submission will be considered the date and time of 
presentation of the merchandise to CBP. If a PSC is filed on an entry 
with merchandise subject to quota, and the quota is full or nearly full 
at threshold, the PSC filer must do two things. The filer must follow 
the Entry Summary Business Rules and Process Document on www.CBP.gov 
and also, within 24 hours of making the correction, contact 
Headquarters Quota Branch, either by phone: (202) 863-6560 (public 
phone number), or email: [email protected], regardless of whether the 
correction concerns merchandise subject to quota.
3. Deposit of Duties, Fees and Taxes With PSC Showing Increase in 
Liability
    This document announces that when a PSC is filed declaring an 
increase in the importer's liability for antidumping or countervailing 
duties and associated fees and taxes, the importer must mail or deliver 
a check to the CBP port of entry with those additional antidumping or 
countervailing duties and associated fees and taxes within three 
business days of submitting the PSC. Furthermore, CBP will no longer 
reject a PSC declaring an increase in liability for antidumping or 
countervailing duties and associated fees and taxes when the additional 
duties, fees and taxes are not deposited at the time of submitting the 
PSC. This is a change in CBP policy.
    If a check is mailed, CBP will consider the additional deposit made 
based on the date of postmark indicating the check was mailed. When a 
PSC is filed that results in an increase in the importer's liability 
for regular duties, fees and taxes and the importer wishes to deposit 
them, the importer must mail or deliver a check to the port of entry.
4. Change of Entry Type When Antidumping and/or Countervailing Duties 
Are Involved
    Previously, a filer under the PSC test could not change a type 03 
entry to a type 01 entry. See 76 FR 37136. This document announces that 
a PSC may declare that a previously filed entry which stated that 
merchandise covered by that entry was subject to antidumping and/or 
countervailing duties is not, in fact, subject to such duties. For 
instance, a PSC may declare that a previously filed 03 entry type is 
corrected to indicate it is a 01 entry type.
5. No Filing of PSC To Make a Post-Importation Claim under 19 U.S.C. 
1520(d)
    On June 24, 2011, CBP announced in the Federal Register (76 FR 
37136) that one of the data elements that may not be modified via a PSC 
is the NAFTA indicator. This notice clarifies that such prohibition 
applies not only to a post-importation NAFTA claim under 19 U.S.C. 
1520(d), but also to a claim made under other free trade agreements 
covered by 19 U.S.C. 1520(d).
6. PSC Submission Within the Time Limitations Authorized by This Test
    On November 19, 2013, CBP published a notice in the Federal 
Register (78 FR 69434) that stated that a PSC cannot be filed when any 
merchandise covered by the original entry has been conditionally 
released and its right to admission has not been determined. This 
restriction was overly broad and prevented importers from filing a PSC 
because all goods are conditionally released and their admissibility is 
not legally determined until liquidation. This notice announces that 
this restriction does not prevent the filing of a PSC within the time 
periods allowed as long as all other requirements and limitations are 
met. The time limits authorized by this test are set forth in notices 
published in the Federal Register on June 24, 2011 (76 FR 37136) and 
November 19, 2013 (78 FR 69434). This clarification is in line with 
current practice.

B. Modification to the PMS Test

    This notice announces that CBP will consider a PMS as paid, in the 
event the importer uses the Automated Clearing House (ACH) debit 
process, when CBP receives confirmation from the Treasury Department 
that funds are available and transferred to CBP from the financial 
institution designated by the importer for payment of the ACH debit 
authorization. Prior to this modification, CBP considered a PMS as paid 
when CBP transmitted the debit authorization to the designated 
financial institution. See 69 FR 5362 (February 4, 2004). This change 
will result in a delay of approximately two working days in the time 
that CBP uses to consider a PMS as paid. It is important to note that 
this modification applies only to importers who participate in the test 
program. For all other importers, the current regulation, 19 CFR 
24.25(c)(4), still applies which means CBP will consider a statement as 
paid upon acceptance of the ACH debit authorization.

III. 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 National Customs Automation Program (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)

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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 National Customs Automation Program 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).
     Automated Commercial Environment (ACE) Export Manifest for 
Vessel Cargo Test: 80 FR 50644 (August 20, 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 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 9, 2015).
     Modification of the National Customs Automation Program 
(NCAP) Test Concerning the Automated Commercial Environment (ACE) 
Document Image System (DIS) Regarding Future Updates and New Method of 
Submission of Accepted Documents: 80 FR 62082 (October 15, 2015).
     Modification of the National Customs Automation Program 
(NCAP) Test Concerning the Automated Commercial Environment (ACE) Cargo 
Release for Entry Type 52 and Certain Other Modes of Transportation: 80 
FR 63576 (October 20, 2015).
     Modification of the National Customs Automation Program 
(NCAP) Test Concerning the Automated Commercial Environment (ACE) Entry 
Summary, Accounts and Revenue (ESAR) Test of Automated Entry Summary 
Types 51 and 52 and Certain Modes of Transportation: 80 FR 63815 
(October 21, 2015).
     Modification of the National Customs Automation Program 
Test Concerning the Automated Commercial Environment Portal Account to 
Establish the Exporter Portal Account: 80 FR 63817 (October 21, 2015).
     Modification of National Customs Automation Program Test 
Concerning the Automated Commercial Environment Partner Government 
Agency Message Set Regarding the Toxic Substances Control Act 
Certification Required by the Environmental Protection Agency: 81 FR 
7133 (February 10, 2016).
     Notice Announcing the Automated Commercial Environment 
(ACE) as the Sole CBP-Authorized Electronic Data Interchange (EDI) 
System for Processing Certain Electronic Entry and Entry Summary 
Filings: 81 FR 10264 (February 29, 2016).
     Modification of the National Customs Automation Program 
(NCAP); Test Concerning the Partner Government Agency Message Set for 
Certain Data Required by the Environmental Protection Agency (EPA): 81 
FR 13399 (March 14, 2016).
     Cessation 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): 81 FR 
18634 (March 31, 2016).
     Automated Commercial Environment (ACE); Announcement of 
National Customs Automation Program Test of the In-Transit Manifest 
Pilot Program: 81 FR 24837 (April 27, 2016).
     Announcement of National Customs Automation Program (NCAP) 
Test Concerning the Submission through the Automated Commercial 
Environment (ACE) of Certain Import

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Data and Documents Required by the U.S. Fish and Wildlife Service: 81 
FR 27149 (May 5, 2016).
     Notice Announcing the Automated Commercial Environment 
(ACE) as the Sole CBP-Authorized Electronic Data Interchange (EDI) 
System for Processing Certain Electronic Entry and Entry Summary 
Filings Accompanied by Food and Drug Administration (FDA) Data: 81 FR 
30320 (May 16, 2016).
     Notice Announcing the Automated Commercial Environment 
(ACE) as the Sole CBP-Authorized Electronic Data Interchange (EDI) 
System for Processing Electronic Entry and Entry Summary Filings: 81 FR 
32339 (May 23, 2016).
     Notice Announcing the Automated Commercial Environment 
(ACE) Protest Module as the Sole CBP-Authorized Method for Filing 
Electronic Protests: 81 FR 49685 (July 28, 2016).
     Modification of the National Customs Automation Program 
(NCAP) Test Concerning the Automated Commercial Environment (ACE) 
Portal Accounts to Establish the Protest Filer Account and 
Clarification that the Terms and Conditions for Account Access Apply to 
all ACE Portal Accounts: 81 FR 52453 (August 8, 2016).
     National Customs Automation Program (NCAP) Test Concerning 
Electronic Filing of Protests in the Automated Commercial Environment 
(ACE): 81 FR 53497 (August 12, 2016).
     Modification of the National Customs Automation Program 
(NCAP) Test Regarding Reconciliation and Transition of the Test From 
the Automated Commercial System to the Automated Commercial Environment 
(ACE): 81 FR 89486 (December 12, 2016).
     Modification and Clarification of the National Customs 
Automation Program (NCAP) Test Regarding Post-Summary Corrections and 
Periodic Monthly Statements: 81 FR 89482 (December 12, 2016).
     Effective Date for the Automated Commercial Environment 
(ACE) Being the Sole CBP-Authorized Electronic Data Interchange (EDI) 
System for Processing Electronic Drawback and Duty Deferral Entry and 
Entry Summary Filings: 81 FR 89486 (December 12, 2016).

    Dated: January 4, 2017.
Brenda B. Smith,
Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2017-00128 Filed 1-6-17; 8:45 am]
 BILLING CODE 9111-14-P