[Federal Register Volume 83, Number 55 (Wednesday, March 21, 2018)]
[Notices]
[Pages 12403-12404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05694]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Extension of National Customs Automation Program; eBond Test

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

ACTION: General notice.

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SUMMARY: This document announces the extension of U.S. Customs and 
Border Protection's (CBP's) National Customs Automation Program (NCAP) 
test concerning the automation of CBP's bond program (eBond test). CBP 
announced the eBond test in a Federal Register notice published on 
November 28, 2014. The test program has run continuously and without 
interruption since it commenced on January 3, 2015, and continues to 
run currently. This notice informs interested members of the public 
that CBP is extending the test until further notice.

DATES: The eBond test program is extended until further notice. CBP 
will publish notice of the conclusion of the eBond test in the Federal 
Register.

ADDRESSES: Written comments and/or questions regarding this notice or 
any aspect of this test may be submitted to CBP via email to 
[email protected] with the subject line identifier reading 
``Comments/Question on eBond Test.'' Requests for a surety filer code, 
and surety requests to participate in the eBond test should be sent to 
[email protected], with a subject line identifier specifying 
either ``Surety filer code request'' or ``Surety request to participate 
in eBond test.''

FOR FURTHER INFORMATION CONTACT: For operational questions, please 
contact Kara Welty, Chief, Debt Management Branch, Revenue Division, 
Office of Finance at [email protected]. For technical questions, 
please contact John Everett, Chief, Post Release Branch, Trade 
Transformation Office at [email protected].

SUPPLEMENTARY INFORMATION: 

Background

I. National Customs Automation Program

    The National Customs Automation Program (NCAP) was established in 
Subtitle B of Title VI--Customs Modernization, in the North American 
Free Trade Agreement 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). 
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 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 and add new functionality.
    Section 631 of the Customs Modernization Act added section 411 to 
the Tariff Act of 1930 (19 U.S.C. 1411). This section defines the NCAP, 
provides for the establishment of and participation in the NCAP, and 
includes a list of existing and planned components. Section 
411(a)(2)(D) identifies the electronic filing of bonds as a planned 
NCAP component.
    Pursuant to 19 U.S.C. 1623(b), bonds may be submitted 
electronically to CBP pursuant to an authorized electronic data 
interchange (EDI) system. Furthermore, as stated in 19 U.S.C. 1623(d), 
a bond transmitted

[[Page 12404]]

electronically to a CBP-authorized EDI system will have the same force 
and effect and be binding upon the parties as if the bond were manually 
executed, signed, and filed. The CBP regulations governing bonds are 
found in part 113 of Chapter 1 of title 19 of the Code of Federal 
Regulations (19 CFR part 113).

II. Authorization for the eBond Test

    The Customs Modernization Act authorizes the Commissioner of CBP to 
conduct limited test programs or procedures designed to evaluate 
planned components of the NCAP. The test concerning the automation of 
CBP's bond program (eBond Test) is authorized pursuant to 19 CFR 
101.9(b), which provides for the testing of NCAP components. See T.D. 
95-21, 60 FR 14211 (March 16, 1995).

III. Description and Extension of the Test Program

    A notice describing the eBond test program and setting forth the 
program's terms and conditions was published in the Federal Register 
(79 FR 70881) on November 28, 2014. That notice provided for the 
transmission of electronic bond contracts (eBonds) between principals 
and sureties, with CBP as the third-party beneficiary, in the Automated 
Commercial Environment (ACE) for the purpose of linking those eBonds to 
the transactions they are intended to secure. The notice described the 
test program in detail, setting forth the method and content for the 
transmission of electronic bonds, either through an electronic data 
interchange (EDI), or by email, for manual input into ACE. Furthermore, 
the test notice identified the regulatory provisions suspended for the 
test, announced the eligibility criteria for participation in the test 
program, and stated that the test would commence on January 3, 2015 and 
continue for approximately two years.
    A subsequent notice was published in the Federal Register (80 FR 
899) on January 7, 2015, announcing three clarifications of the eBond 
test: The method by which continuous bonds executed prior to or outside 
of the eBond test could be converted to eBonds by the surety and 
principal; that the surety or principal has the ability to terminate an 
eBond; and that the principal on an eBond is identified by its filing 
identification number. In addition, the notice corrected the email 
address to which the public could address technical questions. These 
changes became effective January 7, 2015.
    On November 13, 2015, after the publication of the eBond test 
notices described above, CBP published a final rule in the Federal 
Register (80 FR 70154) amending the CBP regulations to allow, among 
other things, the submission of a bond application by email. As a 
result of that rule, bond contracts can be transmitted via email 
pursuant to the regulations, and email transmission is no longer part 
of the eBond test.
    In this document, CBP announces that it is extending the test 
indefinitely. CBP will publish notice of the conclusion of the test in 
the Federal Register. The extension of the test program is intended to 
encourage greater participation in the test by the trade and thereby 
provide CBP data needed to assess the feasibility of implementing the 
test program on a permanent basis. Comments concerning this notice and 
any aspect of the prototype may be submitted at any time during the 
test period. Except with respect to transmission of bond contracts via 
email pursuant to the regulations, rather than pursuant to the eBond 
test, all aspects, rules, terms and conditions announced in previous 
notices regarding the eBond test remain in effect. CBP will inform 
interested members of the public of its decision to implement and/or 
conclude the test program by way of announcement in the Federal 
Register.

    Dated: March 15, 2018.
Brenda B. Smith,
Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2018-05694 Filed 3-20-18; 8:45 am]
 BILLING CODE 9111-14-P