[Federal Register Volume 82, Number 157 (Wednesday, August 16, 2017)]
[Notices]
[Pages 38923-38924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17320]



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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Extension and Clarification of Test Program Regarding Electronic 
Foreign Trade Zone Admission Applications and Transition of Test From 
the Automated Commercial System to the Automated Commercial Environment

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 extend a test program for submitting electronic Foreign 
Trade Zone (FTZ) admission applications to CBP via the Automated Broker 
Interface (ABI). This notice further announces a clarification 
regarding the data elements that are required for the submission of an 
FTZ admission application, as well as the transition of the test 
program from the Automated Commercial System (ACS) to the Automated 
Commercial Environment (ACE).

DATES: As of September 16, 2017, ACE will be the sole CBP-authorized 
electronic data interchange (EDI) system for processing electronic FTZ 
admission applications.
    The test will continue until concluded by way of announcement in 
the Federal Register. Comments concerning this notice and any aspect of 
the prototype may be submitted at any time during the test period.

ADDRESSES: Written comments regarding this notice may be submitted via 
email to Lydia Jackson at [email protected], or via mail to 
the Cargo Control Branch, Office of Field Operations, U.S. Customs and 
Border Protection, 1300 Pennsylvania Avenue NW., Room 5.2C, Washington, 
DC 20229.

FOR FURTHER INFORMATION CONTACT: For operational questions, contact 
Lydia Jackson, Cargo & Conveyance Security, Office of Field Operations, 
U.S. Customs and Border Protection, via email at 
[email protected]. For technical questions, contact Tonya 
Perez, Cargo Systems Program Directorate, Office of Information and 
Technology, U.S. Customs and Border Protection, via email at 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

A. Electronic Foreign Trade Zone Admission Application Test Program: 
Planned Component of the National Customs Automation Program

    The National Customs Automation Program (NCAP) was established in 
Subtitle B of Title VI--Customs Modernization (``Customs Modernization 
Act''), North American Free Trade Agreement Implementation Act (Pub. L. 
103-182, 107 Stat. 2057, Dec. 8, 1993) (19 U.S.C. 1411). 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 6, 1995).
    On August 19, 2005, U.S. Customs and Border Protection (CBP) 
announced a test regarding the submission of an electronic version of 
CBP Form 214 (``Application for Foreign-Trade Zone Admission and/or 
Status Designation'') via the Automated Broker Interface (ABI) to the 
Automated Commercial System (ACS), which was published in the Federal 
Register (70 FR 48774). The electronic Foreign Trade Zone (FTZ) 
admission application prototype is currently being tested in ACS in 
accordance with 19 CFR 101.9(b). The test program initially allowed for 
electronic FTZ admission applications for merchandise reported to CBP 
via air, sea, and rail manifest. Since 2006, the option of submitting 
admission applications for merchandise reported to CBP via truck 
manifest has been available as well.
    The notice described the test program in detail, identified the 
regulatory provisions suspended for the test, and set forth the test 
commencement date as no earlier than September 30, 2005, with a test 
period of approximately 6 months. The test notice also set forth the 
prototype procedures and listed the required data elements which must 
be provided to CBP when filing an FTZ admission application. 
Participants were required to participate in an evaluation of this test 
to take place at the end of the 6-month period.
    Due to low participation in the test program and insufficient data 
collected, CBP announced on March 26, 2007 in the Federal Register (72 
FR 14128) that the test should be run again. The new test program was 
intended to encourage greater participation by the trade and thereby 
provide more meaningful data to CBP to assess the feasibility of 
implementing the test program on a permanent basis. A final evaluation 
was to take place at the end of the test period.

B. Transition Into the Automated Commercial Environment (ACE)

    ACE, the planned successor to ACS, 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 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. ABI 
enables members of the trade community to file electronically required 
import data with CBP and transfers that data to ACE.
    Over the last several years, CBP has tested ACE and provided 
significant public outreach to ensure that the trade community is fully 
aware of the transition from ACS to ACE. On October 13, 2015, CBP 
published an Interim Final Rule in the Federal Register (80 FR 61278) 
that designated ACE as a CBP-authorized electronic data interchange 
(EDI) system, to be effective November 1, 2015. In the Interim Final 
Rule, CBP stated that ACS would be phased out and anticipated that ACS 
would no longer be supported for entry and entry summary filing by the 
end of February 2016. Filers were encouraged to adjust their business 
practices so that they would be prepared when ACS was decommissioned.
    CBP has developed a staggered transition strategy for 
decommissioning ACS. The first phase of the transition was announced in 
a Federal Register notice published on February 29, 2016 (81 FR 10264). 
The second phase was announced in a Federal Register notice published 
on May 16, 2016 (81 FR 30320). The third phase of the transition was 
announced in a Federal Register notice published on May 23, 2016 (81 FR 
32339). This notice announces a further transition as CBP is 
transitioning the FTZ admission application test from ACS to ACE.

II. Test Modifications and Transition Into ACE

    This test notice announces the transition of the test program from 
ACS to ACE, a clarification regarding data elements that are required, 
and the extension of the duration of the test program. Each change is 
discussed separately below. Except to the extent expressly announced or 
modified by this document, all aspects, rules, terms, requirements, 
obligations and conditions announced in previous

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notices regarding the test remain in effect.

A. Mandatory Use of ACE for Electronic Filing of FTZ Admission 
Applications

    This document announces that beginning on September 16, 2017, all 
test participants must file electronic FTZ admission applications in 
ACE. All other filers will continue to submit FTZ admission 
applications to CBP on paper. As of September 16, 2017, ACS is 
decommissioned for the electronic filing of these applications.

B. Clarification

    This document announces a clarification to the notice published in 
the Federal Register on August 19, 2005. The list of data elements 
which test participants must provide CBP when filing an electronic FTZ 
admission application contained in that notice inadvertently failed to 
include the data element ``Zone ID'' which replaced the ``Zone Number 
and Location (Address)'' requirement on the paper CBP Form 214 
(Question 1). This notice clarifies that the list of data elements 
required for the electronic FTZ admission application must include the 
``Zone ID''. Test participants have been submitting this data element 
since the inception of the test program.
    Further, this document reminds test participants that they must 
provide the data elements ``Steel Import License Number'' and 
``Kimberley Process Certificate Number'' to CBP, as applicable, when 
filing an electronic FTZ admission application, as required by CSMS 
message (CSMS #14-000641) dated December 15, 2014. Under 19 CFR 12.145 
and 360.101(c), the steel import license number needs to be provided on 
CBP Form 214 at the time of filing under 19 CFR part 146, in the case 
of merchandise admitted into an FTZ. The Kimberley Process Certificate 
must be presented in connection with an importation of rough diamonds 
into an FTZ and exportation out of an FTZ if demanded by a CBP official 
according to 31 CFR 592.404 and 592.301. Pursuant to 31 CFR 592.301 
Note 3, when making entry of a shipment of rough diamonds via ABI, the 
customs broker, importer or filer must submit the unique identifying 
number of the Kimberley Process Certificate accompanying the shipment.

C. Extension of Program

    The test has been running continuously since March 26, 2007. CBP 
announces in this notice that it is extending the test until a decision 
is reached to implement the program on a permanent basis and/or to 
conclude the test. The new test program is intended to encourage 
greater participation in the test program by the trade and thereby 
provide CBP with more meaningful data by which to assess the 
feasibility of implementing the program on a permanent basis. CBP will 
inform the public of its decision to conclude the test program, and if 
the test program was successful, to implement it on a permanent basis, 
by way of announcement in the Federal Register.

    Dated: August 10, 2017.
Todd C. Owen,
Executive Assistant Commissioner, Office of Field Operations.
[FR Doc. 2017-17320 Filed 8-15-17; 8:45 am]
 BILLING CODE 9111-14-P