[Federal Register Volume 87, Number 51 (Wednesday, March 16, 2022)]
[Notices]
[Pages 14899-14902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05547]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Enhanced Transparency and Access to Information for Debtors and 
Sureties in the Automated Commercial Environment

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

ACTION: General notice.

-----------------------------------------------------------------------

SUMMARY: This document announces that U.S. Customs and Border 
Protection (CBP) is making three enhancements to CBP's debt management 
processes to increase transparency and access to information for 
debtors and sureties. One of the enhancements will support importers of 
record, licensed customs brokers, and other Automated Commercial 
Environment (ACE) account users who owe debts to CBP by enabling the 
electronic viewing of bill sanction status and protest details in the 
unpaid, open bill details report in ACE. The other two enhancements 
will facilitate compliance for sureties by providing electronic access 
to the

[[Page 14900]]

monthly report listing open delinquent bills by importer name (i.e., 
the Formal Demand on Surety for Payment of Delinquent Amounts Due, also 
informally referred to as the 612 Report) in ACE (in lieu of CBP 
emailing this information to sureties) and improving the content and 
design of the mailed 612 Report.

DATES: On March 21, 2022, CBP will deploy updates to enable the 
electronic viewing of bill sanction status and protest details in the 
unpaid, open bill details report in ACE. Additionally, on May 1, 2022, 
sureties may begin to view the electronic 612 Report in ACE (in lieu of 
CBP emailing this information to sureties) and CBP will transition to 
the updated mailed 612 Report.

ADDRESSES: Comments concerning this notice may be submitted at any time 
via email to the ACE Collections Team, Investment Analysis Office, 
Office of Finance, U.S. Customs and Border Protection, at 
[email protected], with a subject line identifier reading 
``ACE Collections Debt Management Release.''

FOR FURTHER INFORMATION CONTACT: Steven J. Grayson, Program Manager, 
Investment Analysis Office, Office of Finance, U.S. Customs and Border 
Protection, at (202) 579-4400, or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

A. Ongoing Modernization of the Collections System at U.S. Customs and 
Border Protection

    U.S. Customs and Border Protection (CBP) is modernizing its 
collections system, allowing CBP to eventually retire the Automated 
Commercial System (ACS) and transfer all collections processes into the 
Automated Commercial Environment (ACE). This modernization effort, 
known as ACE Collections, includes the consolidation of the entire 
collections system into the ACE framework, which will enable CBP to 
utilize trade data from ACE modules, benefitting both the trade 
community and CBP with more streamlined and better automated payment 
processes. The new collections system in ACE will reduce costs for CBP, 
create a common framework that aligns with other initiatives to reduce 
manual collection processes, and provide additional flexibility to 
allow for future technological enhancements. ACE Collections will also 
provide the public with more streamlined and better automated payment 
processes with CBP, including better visibility into data regarding 
specific transactions.
    ACE Collections supports the goals of the Customs Modernization Act 
(Pub. L. 103-182, 107 Stat. 2057, 2170, December 8, 1993, Title VI of 
the North American Free Trade Agreement Implementation Act), of 
modernizing the business processes that are essential to securing U.S. 
borders, speeding up the flow of legitimate shipments, and targeting 
illicit goods that require scrutiny. ACE Collections also fulfills the 
objectives of Executive Order 13659 (79 FR 10655, February 25, 2014), 
to provide the trade community with an integrated CBP trade system that 
facilitates trade, from entry of goods to receipt of duties, taxes, and 
fees.
    CBP is implementing ACE Collections through phased releases in ACE. 
Release 1, which was deployed on September 7, 2019, dealt with 
statements integration, the collections information repository (CIR) 
framework, and ACH (automated clearinghouse) processing. See 84 FR 
46749 and 84 FR 46678 (September 5, 2019), and 84 FR 49650 (September 
23, 2019). Release 2 was deployed on February 5, 2021, and focused on 
non-ACH electronic receivables and collections, for Fedwire and 
Pay.gov, that included user fees, Harbor Maintenance Fee (HMF), and 
Seized Assets and Case Tracking System (SEACATS) payments. All of the 
changes in Release 2 were internal to CBP and did not affect the trade 
community. Release 3 was deployed on May 1, 2021, and primarily 
implemented technical changes to the liquidation process, and deferred 
tax bills, that were internal to CBP. Release 3 also harmonized the 
determination of the due date for deferred tax payments with the entry 
summary date, streamlined the collections system, and provided 
importers of record with more flexibility and access to data when 
making deferred payments of internal revenue taxes owed on distilled 
spirits, wines, and beer imported into the United States. See 86 FR 
22696 (April 29, 2021). Release 4 was deployed on October 18, 2021, and 
primarily implemented technical changes to the production and 
management of the internal CBP processes for supplemental bills, 
certain reimbursable bills, and non-reimbursable/miscellaneous bills 
issued by CBP to the public. See 86 FR 56968 (October 13, 2021). 
Release 4 also made available to importers of record, licensed customs 
brokers, and other ACE account users, an option to electronically view 
certain, unpaid, open bill details as reports in ACE Reports and 
adopted a new, enhanced format for the CBP Bill Form. See id.
    As explained more fully below, Release 5 will be deployed on March 
21, 2022, with delayed implementation for the enhancements concerning 
the Formal Demand on Surety for Payment of Delinquent Amounts Due (also 
informally referred to as the 612 Report) until May 1, 2022. Release 5 
focuses on debt management processes, and it includes mainly internal, 
technical changes to the production, tracking, and management of 
overdue bills and delinquent accounts and the bonds associated with 
them. Release 5 also includes enhancements that improve transparency 
and access to information through ACE for importers of record, licensed 
customs brokers, and other ACE account users who owe debts to CBP, as 
well as for the sureties who guarantee the bonds to secure the payment 
of the debts, if applicable. Additional releases for ACE Collections 
will follow, and any further changes affecting the public will be 
announced by notice in the Federal Register, as needed.

B. Overview of CBP's Debt Management Processes Affected by Release 5 of 
ACE Collections

    CBP is authorized to collect duties, taxes, and fees from customs 
activities. See generally 19 U.S.C. 58a, 58b, 58b-1, 58c, 1505; 26 
U.S.C. 4461. The regulations found in part 24 of title 19 of the Code 
of Federal Regulations (CFR) address the financial and accounting 
procedures for when CBP collects the duties, taxes, fees, interest, and 
other applicable charges from the public due to customs activities. See 
generally 19 CFR 24.1 through 24.36. Members of the public are informed 
of existing debts to CBP through the physical mailing of the CBP Bill 
Form, the data elements of which are also available for electronic 
viewing in ACE Reports.
    CBP is authorized to require such bonds or other security as deemed 
necessary for the protection of the revenue or to assure compliance 
with any provision of law, regulation, or instruction. See 19 U.S.C. 
1623. The regulations concerning such bonds are set forth generally in 
part 113 of title 19 of the CFR, which addresses bond approval and 
execution, bond conditions, general and special bond requirements, etc. 
Bonds are required for a large percentage of the activities for which 
CBP produces bills. See 19 CFR 113.61 through 113.75. For example, CBP 
requires bonds for the importation of merchandise (19 CFR 113.62), 
accelerated payment of drawback

[[Page 14901]]

refunds (19 CFR 113.65), and operation of a foreign trade zone (19 CFR 
113.73).\1\
---------------------------------------------------------------------------

    \1\ In certain circumstances, bond requirements can be waived. 
See, e.g., 19 CFR 10.31(f), 10.101(d), 142.4(c).
---------------------------------------------------------------------------

    CBP recognizes bonds and the parties to those bonds, who are the 
principals and sureties, through the filing of a CBP Bond (CBP Form 
301) and its addendums.\2\ Bond information may be filed 
electronically, pursuant to 19 U.S.C. 1623(b), via any CBP authorized 
electronic data interchange (EDI) system. CBP currently accepts the 
electronic filing of bonds through the eBond test program, 79 FR 70881 
(Nov. 28, 2014) and 80 FR 899 (Jan. 7, 2015), which was most recently 
extended in a Federal Register notice, 83 FR 12403, on March 21, 
2018.\3\ When a debtor/bond principal fails to pay a debt owed to CBP 
that is secured by a bond, CBP may seek to collect from the surety (and 
any other co-sureties or liable parties) under the bond. See, e.g., 19 
CFR 113.3 and 144.2. Additionally, the bond principal(s) and the 
surety(ies) are jointly and severally liable to CBP, as set forth in 
the bond conditions. See 19 CFR part 113, subpart G.
---------------------------------------------------------------------------

    \2\ A copy of CBP Form 301 and its addendums may be viewed 
online at https://www.cbp.gov/trade/priority-issues/revenue/bonds.
    \3\ Only a surety or a surety agent may submit an eBond, and 
additional information about the eBond test program and how to 
participate may be found online at https://www.cbp.gov/trade/priority-issues/revenue/bonds/ebond.
---------------------------------------------------------------------------

    CBP's debt management processes begin when a debt becomes 
delinquent, and then involves incrementally escalating consequences 
when a debtor/bond principal does not make full payment. Generally, a 
debtor/bond principal has 30 days to make payment after the ``bill 
date'' (also known as the ``date of issuance of the bill''), appearing 
on the CBP Bill Form, before the bill ``due date'' (also known as the 
``late payment date''). 19 CFR 24.3(e). On the 31st day after the bill 
date, the bill is considered delinquent, and interest will accrue in 
30-day increments. 19 U.S.C. 1505(d); 19 CFR 24.3a. Thirty (30) days 
after the bill due date (60 days after the bill date), CBP will list 
the bill for the first time on the Formal Demand on Surety for Payment 
of Delinquent Amounts Due (also informally referred to as the 612 
Report, which is a monthly report listing open delinquent bills by 
importer name) to the sureties (and any co-sureties) recognized on the 
bond that secures the delinquent debt. 19 CFR 24.3a(d)(2)(i). The 
elements that normally appear in the 612 Report are prescribed in 19 
CFR 24.3a(d)(2).
    Generally, CBP will mail the debtor/bond principal a dunning letter 
if the debt remains unpaid for 120 days after the bill date (90 days 
after the bill due date). The dunning letter warns of further 
consequences if the bill remains unpaid, such as the imposition of 
national sanction, informs about protest rights, and provides the 
recipient with another copy of the details of outstanding debts owed, 
for which a dunning letter has not been sent before.
    Generally, if a debt continues to remain unpaid by the debtor/bond 
principal, CBP will email the sureties on the applicable bond a surety 
demand follow-up letter that seeks payment of all overdue debt secured 
by a bond. In addition, the debtor/bond principal may be subject to 
additional consequences, such as a requirement to file the entry 
summary with payment of estimated duties, taxes, and fees attached 
before CBP will release new entries (informally referred to as importer 
sanction or national sanction).\4\ See, e.g., 19 CFR 142.13, 142.14, 
142.26. Ultimately, CBP may take further actions against the surety 
and/or the debtor/bond principal in an effort to collect the unpaid 
debt. It should be noted that, under certain circumstances, the debtor/
bond principal and/or surety may file an administrative protest of 
certain decisions by CBP, including the issuance of and basis for 
certain bills. See 19 U.S.C. 1514, 1515. CBP's regulations governing 
administrative protests may be found at 19 CFR part 174. The timely 
filing of an administrative protest may alter CBP's debt management 
approach that is generally described in the preceding paragraphs.\5\
---------------------------------------------------------------------------

    \4\ Additional information on the potential consequences for the 
debtor/bond principal may be found online at https://www.cbp.gov/trade/priority-issues/revenue/bill-payments/importer-sanctions.
    \5\ Generally, within 180 days of liquidation or other 
protestable decision made by CBP, the surety or debtor/bond 
principal may file a protest against that decision. Sureties may 
also file a protest within 180 days of the date of mailing of the 
first 612 Report concerning the specific bill or unsatisfied legal 
claim secured by the surety bond. An administrative protest must be 
made on CBP Form 19 and may be filed in paper or electronically in 
ACE. Under certain circumstances, the protesting party may seek 
further review of a protest. Following the filing of a protest, CBP 
will review and respond. See subpart C of 19 CFR 174.
---------------------------------------------------------------------------

    Altogether, CBP's debt management processes often entail numerous 
mailings and deadlines for CBP and the trading public. CBP has thus 
developed new tools to automate, streamline, and simplify the processes 
for debt collection and protest tracking as part of Release 5. The 
resulting benefits to the public that are announced in this document 
will be deployed and implemented on March 21, 2022, with delayed 
implementation for the enhancements concerning the 612 Report until May 
1, 2022.

II. Enhancements to the Debt Management Processes

    Additionally, CBP is announcing three enhancements to the debt 
management processes to increase transparency and access to information 
for the public as part of Release 5. One of the enhancements will 
support importers of record, licensed customs brokers, and other ACE 
account users who owe debts to CBP by enabling the electronic viewing 
of whether a bill has caused consequences under 19 CFR 142.13, 142.14, 
and 142.26 (informally referred to as bill sanction status or sanction 
status) and protest details in the unpaid, open bill details report in 
ACE. The other two enhancements will facilitate compliance for sureties 
by providing electronic access to the 612 Report in ACE (in lieu of CBP 
emailing this information to sureties) and improving the content and 
design of the 612 Report.

A. Supplementation of Unpaid, Open Bill Details in ACE Reports To 
Enable Electronic Viewing of Sanction Status and Protest Details for 
Importers of Record, Licensed Customs Brokers, and Other ACE Account 
Users Who Owe Debts to CBP

    CBP sends physical bills on the CBP Bill Form \6\ via mail to 
officially notify individuals and entities of amounts owed for duties, 
taxes, fees, and other charges. Upon the deployment of Release 4 on 
October 18, 2021, ACE account users were able to electronically view 
the data elements appearing on the CBP Bill Form in ACE Reports for 
certain categories of unpaid, open bills. 86 FR 56968 (October 13, 
2021). The unpaid, open bill details report in ACE Reports provides an 
ACE account user with a consolidated, electronic report to track its 
open bills for which payment is owed to CBP. As part of Release 5, CBP 
is supplementing the unpaid, open bill details report in ACE Reports 
with new information applicable to sanction status and protest details 
for each bill appearing on the report.
---------------------------------------------------------------------------

    \6\ As CBP advised in the Federal Register notice that announced 
Release 4, the CBP Bill Form for physical bills will remain the 
primary source of legal notice of monies owed due to customs 
activity, as required by 19 CFR 24.3(a).
---------------------------------------------------------------------------

    Specifically, the new report information includes five data 
elements. The first data element is an indicator as to whether the 
unpaid, open bill has put the account holder on national sanction. The 
other four data elements are details related to administrative protests 
filed pursuant to 19 CFR part 174. If an

[[Page 14902]]

administrative protest is associated with an open, unpaid bill, then 
the following data elements will be included in the report: The protest 
number, the date of filing of the protest, the processing status of the 
protest, and the date of CBP's decision on the protest (if applicable). 
All of the new data elements will be included in additional columns 
added to the unpaid, open bill details report in ACE Reports and will 
be updated within one business day after the initial processing of 
sanction status and/or the relevant administrative protest information. 
It is important to note that any mailed or electronically communicated 
information provided by CBP regarding the sanction status and protest 
details may supersede the information appearing in ACE Reports.
    Only members of the public who have an ACE Portal account can view 
their unpaid, open bill details report in ACE Reports, which will 
include the new information applicable to sanction status and protest 
details as of March 21, 2022. CBP encourages affected members of the 
public (including, but not limited to, importers of record and licensed 
customs brokers) who do not already have an ACE Portal account to apply 
for access to be able to view the necessary data to make timely bill 
payments.\7\ CBP will provide any needed support for setting up ACE 
Portal accounts. The public may access the ACE Reports application 
through the ACE Secure Data Portal at https://ace.cbp.dhs.gov.\8\ 
Within ACE Reports, ACE account users may navigate to and access their 
unpaid, open bill details reports in the Workspace Module.\9\
---------------------------------------------------------------------------

    \7\ The step-by-step instructions to apply for an ACE Portal 
account are available online at https://www.cbp.gov/trade/automated/getting-started/portal-applying.
    \8\ For more information about accessing, navigating, and 
personalizing ACE Reports, please review the ACE Reports Trainings 
online at https://www.cbp.gov/trade/ace/training-and-reference-guides.
    \9\ The Workspace Module is a window in ACE Reports that 
provides ACE account users access to their standard reports 
categorized by subject area (such as Cargo Release, Entry Summary, 
Manifest, etc.) and includes a navigation list (a folder structure 
of standard reports) and a viewer that displays the report selected. 
For additional information about the Workspace Module, please 
consult the specific ACE Report training at https://www.cbp.gov/trade/ace/training-and-reference-guides or the quick reference card 
at https://www.cbp.gov/document/guidance/ace-reports-qrc-navigating-workspace-module.
---------------------------------------------------------------------------

B. Benefits for Sureties

1. Availability of an Option for Sureties to Electronically View 612 
Reports in ACE
    Currently, CBP mails to sureties the 612 Reports, which are a 
monthly listing of open delinquent bills by importer name.\10\ The 612 
Reports constitute the Formal Demand on Surety for Payment of 
Delinquent Amounts Due, as required by 19 CFR 24.3a(d)(2). Each 612 
Report contains certain information, such as the bill number and 
principal amount due, to allow sureties to identify and track their 
obligations. Id. In addition to mailing 612 Reports, CBP makes 
available to sureties the ability to request and receive via email a 
downloadable copy of the raw data underlying the most recent 612 Report 
sent to them by mail.
---------------------------------------------------------------------------

    \10\ A new bill entry is added to a 612 Report when a bill owed 
to CBP has not been paid and is more than 30 days past due 
(approximately 60 days after the initial bill date). CBP generates 
and mails the 612 Report to the surety at the beginning of every 
month, and each bill listed will remain on the 612 Report until that 
bill is paid or otherwise closed. 19 CFR 24.3a(d)(2)(i).
---------------------------------------------------------------------------

    As part of Release 5, CBP will make available to sureties an option 
to electronically view 612 Reports in ACE (in lieu of CBP emailing this 
information to sureties).\11\ This new option will, inter alia, reduce 
the amount of time sureties spend manually identifying and tracking 
their obligations to CBP, and will allow sureties to access their 
report at any time of the month, eliminating the constraint of having 
access to the data the first day it is generated. Moreover, this new 
option will significantly reduce the current burden on CBP associated 
with the emailing of the 612 Reports to the respective sureties. The 
default data presented in the electronic 612 Report will be for the 
most recent month's mailed 612 Report. Sureties will also be able to 
view data from, at a minimum, three previous monthly electronic 612 
Reports, but such data will not remain available indefinitely in ACE.
---------------------------------------------------------------------------

    \11\ CBP will discontinue the option for sureties to request, 
through CBP's Office of Finance, Revenue Division, the regular 
emailing of 612 Report data packets, as of May 1, 2022. The 
downloadable data packets are a function of ACS, which will become 
obsolete, and the existence of the option to electronically view 612 
Reports supersedes the emailing of data packets (as the same 
information will be downloadable from ACE).
---------------------------------------------------------------------------

    The electronic 612 Reports will only update on, approximately, the 
first day of every month to ensure the data appearing in the electronic 
612 Reports will match the data appearing in the mailed 612 Reports. 
The data elements appearing in the electronic 612 Reports will be the 
same as the data elements appearing in the mailed 612 Reports, 
including the new element described below.
    It is important to note that CBP will continue its current 
processes for mailing the 612 Reports, which remain the official notice 
to sureties as required by 19 CFR 24.3a(d). Information and data that 
appear on the mailed 612 Report will supersede the data elements that 
appear in the electronic 612 Reports, and sureties should continue to 
consult the mailed 612 Reports to determine the extent of their legal 
obligations. Moreover, only sureties who have an ACE Portal account 
will be able to view their electronic 612 Reports that will be 
available in ACE Reports beginning on May 1, 2022. CBP encourages 
sureties who do not already have an ACE Portal account to apply for 
access to be able to electronically view their 612 Reports.\12\
---------------------------------------------------------------------------

    \12\ CBP will provide any needed support for setting up ACE 
Portal accounts. See supra footnotes 7-9 for more information about 
creating ACE Portal accounts, navigating ACE Reports, and accessing 
612 Reports in the Workspace Module.
---------------------------------------------------------------------------

2. Minor Modifications to the Information in and Appearance of the 
Mailed 612 Reports
    As part of Release 5, there will be minor modifications to the 
information in and appearance of the mailed 612 Report. The mailed 612 
Report will continue to have the same structure and provide the same 
information as it does now, but CBP will add a new data element and 
column, the ``Bill Version #'', which is intended to help sureties 
track whether a certain bill's information is current.\13\ In addition, 
the mailed 612 Report will no longer be printed on paper with a green 
bar. Instead, as of May 1, 2022, the mailed 612 Report will be printed 
on more common legal landscape paper.
---------------------------------------------------------------------------

    \13\ CBP assigns bills a specific number that corresponds to a 
bill as it existed at a specific point in time. Bills change due to 
recalculation of interest, partial payment, etc. and CBP updates the 
bill version number when a bill changes. For 612 Reports, the ``Bill 
Version #'' will correspond to the bill as it existed at the time 
that the mailed 612 Report was generated.

    Dated: March 9, 2022.
Jeffrey Caine,
Chief Financial Officer, U.S. Customs and Border Protection.
[FR Doc. 2022-05547 Filed 3-15-22; 8:45 am]
BILLING CODE 9111-14-P