[Federal Register Volume 87, Number 90 (Tuesday, May 10, 2022)]
[Notices]
[Pages 28022-28025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09966]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs & Border Protection


Document Imaging System (DIS) Pilot for Used Self-Propelled 
Vehicles Export Document Submission

AGENCY: U.S. Customs and Border Protection, DHS.

ACTION: General notice.

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SUMMARY: This document announces that U.S. Customs and Border 
Protection (CBP) plans to conduct a pilot to promote paperless 
processing of export documentation for used self-propelled vehicles 
(USPVs). Generally, USPVs include any vehicle that can be driven on 
land but not rail. The CBP regulations require a person attempting to 
export a USPV to present original vehicle ownership documentation to 
CBP at the port of exportation. In an effort to expedite and modernize 
the document submission and review process, CBP will be operating a 
voluntary pilot in which participants will submit the required vehicle 
ownership documentation to CBP electronically via the Document Imaging 
System (DIS). This voluntary pilot will evaluate the feasibility of 
using the DIS for the purpose of obtaining and reviewing vehicle 
ownership documentation for USPVs. This notice includes a description 
of the pilot, the eligibility requirements for participation, and 
invites public comment on any aspect of the pilot.

DATES: This voluntary pilot will begin no earlier than June 9, 2022 and 
will run for approximately two years. The pilot will apply to the 
export of all USPVs regardless of the mode of transportation. 
Implementation of the pilot for each mode of transportation and/or port 
participation will be staggered and will be announced to the public 
through the Cargo Systems Messaging Service (CSMS).\1\ The CSMS message 
will include the start date for accepting ownership documentation via 
the DIS. Comments concerning this notice and all aspects of the 
announced pilot may be submitted at any time during the pilot period.
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    \1\ Archived public CSMS messages can be accessed at: https://www.cbp.gov/trade/automated/cargo-systems-messaging-service.

ADDRESSES: Interested parties should contact their local CBP vehicle 
export processing office and express their interest and intent to 
participate in the DIS pilot. Written comments concerning the program, 
policy, and technical issues may be submitted at 
_____________________________________-
[email protected].

FOR FURTHER INFORMATION CONTACT: Stephan Keating, Cargo and Conveyance 
Security (CCS), Office of Field Operations (OFO), U.S. Customs and 
Border Protection, at 202-344-2847 or via email at 
[email protected] and David Garcia, Cargo and Conveyance 
Security (CCS), OFO, CBP at [email protected] and 202-344-
3277.

SUPPLEMENTARY INFORMATION:

I. Background and Purpose of the Pilot

A. Current Requirements for Export of Used Self-Propelled Vehicles

    In 1984, Congress enacted the Motor Vehicle Theft Enforcement Act, 
Public Law 98-547, 98 Stat. 2754 codified at 19 U.S.C. 1627a (1984 
Act), which makes it unlawful to import or export, or attempt to import 
or export, any stolen self-propelled vehicle, vessel, or aircraft. 
Pursuant to the 1984 Act, the Department of Homeland Security is 
authorized to promulgate regulations for the export of used self-
propelled vehicles. The 1984 Act allows CBP to share relevant 
information with such Federal, State, local, and foreign law 
enforcement or governmental authorities, and with such organizations 
engaged in theft prevention activities, as may be designated by the 
Secretary.
    In 1992, Congress imposed additional requirements on the export of 
used vehicles, with the enactment of the Anti Car Theft Act, Public Law 
102-519, 106 Stat. 3400, codified at 19 U.S.C. 1646b--1646c (1992 Act). 
The 1992 Act requires all persons or entities exporting used 
automobiles, by air or vessel, including automobiles exported for 
personal use, to provide CBP with certain information including the 
Vehicle Identification Number (VIN) and proof of ownership of the 
vehicle at least 72 hours prior to exportation. The 1992 Act authorizes 
the Commissioner of CBP to establish risk-based targeting criteria for 
automobiles being exported, and to check the VIN of targeted 
automobiles against the information in the National Crime Information 
Center (NCIC) to determine whether the vehicle has been reported 
stolen. See 19 U.S.C. 1646c.
    The implementing regulations for the above statutes are set forth 
in part 192 of title 19 of the Code of Federal Regulations (19 CFR part 
192). Among other things, part 192 includes regulations pertaining to 
procedures for the lawful exportation of USPVs. In general, a self-
propelled vehicle is any vehicle that can be driven on land but not on 
rail. Specifically, 19 CFR 192.1 defines self-propelled vehicle as any 
automobile, truck, tractor, bus, motorcycle, motor home, self-propelled

[[Page 28023]]

agricultural machinery, self-propelled construction equipment, self-
propelled special use equipment, and any other self-propelled vehicle 
used or designed for running on land but not on rail. Section 192.1 
defines used as any self-propelled vehicle the equitable or legal title 
to which has been transferred by a manufacturer, distributor, or dealer 
to an ultimate purchaser. Finally, section 192.1 defines export as the 
transportation of merchandise out of the U.S. for the purpose of being 
entered into the commerce of a foreign country.
    19 CFR 192.2 requires that in the case of a vehicle being exported 
by vessel or aircraft, both the required documentation describing the 
vehicle and the vehicle must be presented to CBP at least 72 hours 
prior to export, and in the case of a vehicle being exported at a land 
border crossing (by rail, highway, or under its own power), the 
required documentation must be submitted at least 72 hours prior to 
export, and the vehicle must be presented at the time of export. The 
required documentation includes the VIN or, if the vehicle does not 
have a VIN, the product information number (PIN). Section 192.2(b) 
specifies the type of documents that must be submitted in different 
circumstances. Exportation of a vehicle is permitted only upon 
compliance with these requirements unless, as per section 192.2(a), the 
vehicle was entered into the United States under an in-bond procedure, 
or under a carnet or Temporary Importation Bond (TIB). Such vehicles 
are exempt from these requirements.

B. Authorization for the Pilot

    The test described in this notice is authorized pursuant to 19 CFR 
101.9(a), which grants the Commissioner of CBP the authority to impose 
requirements different from those specified in CBP regulations for 
purposes of conducting a test program or procedure designed to evaluate 
the effectiveness of new technology or operational procedures regarding 
the processing of passengers, vessels, or merchandise.

C. Purpose of Pilot

    CBP is implementing this voluntary Document Imaging System (DIS) 
pilot in order to expedite and modernize the document submission and 
review process for the export of used self-propelled vehicles.
    During Fiscal Years 2018-2020, there was an annual average of 1.4 
million, used self-propelled vehicles exported from the United States. 
Under the current regulatory export procedures, the person who is 
attempting to export a used self-propelled vehicle must present to CBP 
both the vehicle and specified paper documents. This paper process is a 
drain on limited CBP staffing resources at ports with significant 
traffic because it requires CBP to devote numerous hours to review 
vehicle export paperwork.
    The pilot will allow CBP to test the mechanisms through which the 
required documentation may be submitted electronically, as a 
preliminary step towards moving to a more automated and efficient 
export reporting system for export of used self-propelled vehicles. 
Having the required documentation available electronically will enable 
CBP to institute better risk-based targeting of exports. This will be 
accomplished by making electronic document and information submission 
the primary means for meeting export reporting requirements and 
reserving field inspection of vehicles and examination of original 
ownership documentation only for cases where targeting and risk 
assessment have identified a need for additional scrutiny. The receipt 
of the electronic ownership documentation will also improve CBP's 
ability to target and identify high-risk vehicle exports pre-departure 
while facilitating the process for legitimate exportation through a 
more streamlined and efficient port procedure. Considering the high 
volume of vehicle exports, it is expected that the electronic 
submission of the required documentation will have a significant impact 
on the speed and efficiency of vehicle export processing. The pilot 
will allow CBP to assess the effectiveness of these procedures and will 
allow the agency to test the functionality of the systems required for 
electronic submission. The results of the pilot will help CBP determine 
whether to eventually require through rulemaking the electronic 
submission of vehicle ownership documentation using the DIS.

II. Description of Pilot

    In this voluntary pilot, participants will submit the required 
ownership documentation as set forth in 19 CFR part 192 through the DIS 
in ACE, using either the Electronic Data Interchange (EDI) via an 
Approved Broker Interface (ABI), or via email (at [email protected]). 
Participants will be required to submit the documentation in accordance 
with existing regulatory timeframes depending on the mode of export.\2\ 
Participation in the pilot will not alter the requirements for 
presentation of the vehicle to CBP. See 19 CFR 192.2(c), (d).
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    \2\ For export by ocean or air, participants must submit the 
documents at least 72 hours prior to export, but only after the 
vehicle is delivered to the port in preparation for departure from 
the United States; for export by land or rail, participants must 
submit documentation 72 hours prior to arriving at the border for 
departure from the United States. 19 CFR 192.2(c).
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    Under the pilot, the electronically submitted documents will be 
linked to the Electronic Export Information (EEI) \3\ filing in the 
Automated Export System (AES) via the Internal Transaction Number (ITN) 
generated at the time of the EEI submission. Participants will be 
required to transmit a valid ITN number to CBP with the DIS submission. 
Participants will have to submit EEI prior to submitting the vehicle 
documents to DIS. CBP will request original documentation and conduct a 
physical examination of the vehicle when necessitated by the results of 
targeting and risk assessment.
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    \3\ The Electronic Export Information (EEI) is required pursuant 
to the Census Foreign Trade Regulations (FTR). 15 CFR part 30, 
subpart E. 19 CFR part 192 also sets forth CBP's requirements 
pertaining to the Automated Export System (AES), implemented by FTR. 
The AES is the electronic system of record for collecting EEI from 
persons exporting goods from the United States to foreign countries. 
The EEI for all used self-propelled vehicles must be filed via AES 
regardless of value or country of destination 72 hours prior to 
export. 15 CFR 30.2(a)(1)(iv)(H), (b)(5).
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    The sections below describe the pilot, including specific 
instructions on how to participate in the pilot (section D), in more 
detail.

A. Procedures for the Export of Used Self-Propelled Vehicles Under the 
Pilot

    As discussed in section I.A., 19 CFR 192.2 requires a person 
attempting to export a used self-propelled vehicle to present the 
vehicle and certain required documents at the port of exportation. The 
documentary requirements vary by type of vehicle,\4\ and the timeframes 
for presenting the documents and vehicle vary by manner of export.\5\ 
The DIS pilot changes only the manner in which the required documents 
are submitted to CBP. For pilot participants, CBP will waive the 
requirement in 19 CFR 192.2 to present original physical copies of the 
documents and require the documents to be submitted electronically 
using the DIS (EDI or email) instead. However, CBP will retain the 
right to request original documents on an as-needed basis. All other 
requirements of 19 CFR part 192, including the requirement to present 
the vehicle, will remain unchanged.\6\
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    \4\ For example, U.S. titled vehicles, vehicles with title that 
evidences third-party ownership/claims, foreign titled vehicles, 
etc. See 19 CFR 192.2(b).
    \5\ See 19 CFR 192.2(c).
    \6\ The pilot does not change the specific documents required 
for any particular type of vehicle, nor does it change the 
timeframes by which the documentation must be submitted. The pilot 
also does not change the requirement to present the vehicle to CBP, 
as set forth in 19 CFR 192.2(c) and (d). 19 CFR part 192 exempts 
certain categories of vehicles from the EEI filing requirement of 
the Census Foreign Trade Regulations (15 CFR part 30, subpart E). 
The EEI filing requirements remain unchanged under this pilot.

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[[Page 28024]]

    Pilot participants agree to provide via electronic means, and in 
accordance with timeframes that apply by mode of transportation, the 
documentation required under 19 CFR 192.2. Pilot participants agree to 
submit the documentation required for the export of used self-propelled 
vehicles via the DIS, using either the EDI via an approved ABI or by 
submitting the documents in PDF format to the email address 
[email protected]. Participants will receive an automated response in 
the format in which the required documents were submitted, EDI or 
email, confirming that the document submission was received.\7\ The 
participants will be able to use the automated response together with 
the AES-generated ITN to show that they complied with CBP's reporting 
requirements. The documentation submitted via the DIS will be used by 
CBP to review and process vehicles pending export to ensure compliance 
with U.S. laws and regulations. CBP reserves the right to request 
original (paper) documentation at any time. Consequently, pilot 
participants must continue to have access to the documentation in its 
original form for the entire time from submission to clearance by CBP, 
in the same manner as required by 19 CFR part 192.
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    \7\ This is different from the current process whereby CBP ports 
of export stamp the original documentation provided by the exporter 
and the exporter then uses the stamped documentation as evidence 
that CBP cleared the vehicle prior to departure from the United 
States.
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    For vehicles to be transported by ocean or air, the required 
documents must be submitted at least 72 hours prior to export, and only 
after the vehicle is delivered to the port in preparation for departure 
from the United States. For vehicles to be transported by land or rail, 
the documents must be submitted 72 hours prior to the vehicle's 
arriving at the border for departure from the United States. These are 
the same timeframes that apply under the current regulations, and CBP 
anticipates that these timeframes will provide adequate time for CBP to 
perform proper risk assessment, while minimizing disruption to the flow 
of goods. Consistent with current standard operational procedures, the 
inspections could potentially take place at any time prior to departure 
from the United States.
    Pilot participants agree to adhere to established operational 
security protocols that correspond to their local CBP vehicle export 
processing office. Pilot participants also agree to participate in any 
teleconferences or meetings called by CBP, to ensure that any 
challenges, or operational or technical issues regarding the pilot are 
properly communicated and addressed.
    Participation in the pilot does not alter participants' obligations 
to comply with any other applicable statutory or regulatory 
requirements. Participants will continue to be subject to applicable 
penalties for non-compliance. In addition, submission of documentation 
using the DIS under the pilot does not exempt the participant from any 
CBP or other U.S. Government agency program requirements or any 
statutory sanctions in the event that a violation of U.S. export 
control laws occurs or prohibited articles are discovered with a 
vehicle presented for export from the United States.

B. Duration and Scope of Pilot

    Participants must be individually approved by CBP in order to 
participate in the pilot, and the pilot may be limited to a single or 
small number of ports until any operational, training, or technical 
issues on the trade or government side are established and/or resolved. 
The start date for the pilot will be no earlier than June 9, 2022. 
Implementation of the pilot for each mode of transportation and/or 
participating port will be staggered and will be announced to the 
public through the CSMS. The CSMS message will include the start date 
for accepting ownership documentation via the DIS. The pilot will run 
for approximately two years from the start date.

C. Eligibility Requirements

    Eligibility is limited to parties who are responsible for 
submitting the documentation required by 19 CFR 192.2 as part of the 
export transaction and who have access to the ITN for the AES commodity 
filing. In addition, participants must agree to submit the required 
documentation via the DIS, as described above.

D. Application Process and Acceptance

    Parties interested in participating in this pilot should, as a 
preliminary matter, submit a request to receive Export updates via the 
CSMS. Requests may be made at https://www.cbp.gov/trade/automated/cargo-systems-messaging-service. The CSMS will be used to provide pilot 
participants with technical and operational updates and guidance 
throughout the pilot, and may be used to announce technical, non-
substantive changes to the pilot. CBP will utilize the CSMS to announce 
the implementation of the pilot for each mode of transportation and/or 
participating port. Only once the pilot has been extended to their mode 
of transportation and participating port, will an interested party be 
able to participate in the pilot.
    Once the pilot has been implemented for their mode of 
transportation and port, interested parties should then contact their 
local CBP vehicle export processing office and express their interest 
and intent to participate in the DIS pilot. Detailed instructions for 
participation in the pilot can be found in the DIS Instructional Guide 
for the Exportation of Used Self-Propelled Vehicles located on the CBP 
website, at https://www.cbp.gov/trade/basic-import-export/export-docs/motor-vehicle. There is no specific application for participation in 
the pilot. However, interested participants must communicate their 
interest and intent to the relevant port before taking any other 
action. The port will further direct potential pilot participants. 
Prospective participants will be asked to submit the first submission 
of ownership documents and contact their local CBP vehicle processing 
office to verify that their first transmission of ownership documents 
is successful, prior to being granted participation in the pilot. Once 
this review and verification is complete, participants will be 
permitted to participate fully in the pilot.
    Participation in the pilot is open to all eligible parties that 
have been approved to participate, subject to the discretion of the 
Port Director at the port from which parties intend to export the 
USPVs.

E. Technical Specifications

    Ownership documents must be submitted via the DIS, either using the 
EDI via an approved ABI or via email at [email protected], in a PDF 
format up to 10MB. Detailed instructions for participation in the pilot 
can be found in a document named DIS Instructional Guide for the 
Exportation of Used Self-Propelled Vehicles located on the CBP website, 
at https://www.cbp.gov/trade/basic-import-export/export-docs/motor-vehicle.

F. Costs to Pilot Participants

    Participants are responsible for all costs incurred as a result of 
their participation in the pilot.

[[Page 28025]]

G. Benefits to Pilot Participants

    While the benefits to individual pilot participants may vary, 
advantages to joining in the pilot include:
     Reducing the costs associated with paper processing;
     Expediting review and release of USPVs by CBP;
     Providing input into CBP's efforts to establish, test and 
refine the interface between government and industry communication 
systems in order to enable paper-free processing of USPV export 
requirements;
     Facilitating corporate preparedness for possible future 
mandatory implementation of electronic submission of documentation 
using the DIS; and
     Facilitating the efficient processing of legitimate USPV 
exports across all modes of transportation.

H. Evaluation of the Pilot

    While the pilot is ongoing, CBP will evaluate the effectiveness of 
using the DIS and will determine if any extensions or modifications are 
needed. Technical modifications will be announced using the CSMS. Any 
substantive changes to the pilot, including extensions, will be 
announced in the Federal Register.
    The results of the pilot will help CBP analyze and evaluate the 
effectiveness of using the DIS or some other method to collect export 
documentation for USPVs. When sufficient analysis and evaluation have 
been conducted, CBP will decide whether to require electronic 
submission of ownership documentation using the DIS or some other 
method. Any changes to the regulations will be done through rulemaking.

I. Confidentiality

    All data submitted and entered into ACE is subject to the Trade 
Secrets Act (18 U.S.C. 1905) and is considered confidential, except to 
the extent as otherwise provided by law. However, participation in this 
or any ACE pilot is not confidential and upon a written Freedom of 
Information Act (FOIA) request, the name(s) of an approved 
participant(s) will be disclosed by CBP in accordance with 5 U.S.C. 
552.

III. Privacy

    CBP will ensure that all Privacy Act requirements and applicable 
policies are adhered to during the implementation of this pilot.

IV. Paperwork Reduction Act

    The Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3507(a)) 
requires that CBP consider the impact of paperwork and other 
information collection burdens imposed on the public. An agency may not 
conduct, and a person is not required to respond to, a collection of 
information unless the collection of information displays a valid 
control number assigned by OMB. The collection of information regarding 
Exportation of Self-Propelled Vehicles was previously reviewed and 
approved by OMB in accordance with the requirements of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3507) under OMB Control Number 1651-
0054. No new information is being collected under this pilot. 
Therefore, no new information collection or update to the existing 
information collection is required at this time.

V. Misconduct Under the Pilot

    A pilot participant may be subject to civil and criminal penalties, 
administrative sanctions, liquidated damages, or discontinuance from 
participation in the pilot for any of the following:
    (1) Failure to comply with the rules, procedures, or terms and 
conditions of this pilot;
    (2) Failure to exercise reasonable care in the execution of 
participant obligations; or
    (3) Failure to abide by the applicable laws and regulations that 
have not been waived.
    An intentional violation of an obligation under the pilot will 
result in the immediate removal of the participant from the pilot, and 
the violator may be subject to penalties or seizure of the vehicle(s). 
Continuous technical violations will also result in the participant's 
being removed from the pilot. Additionally, CBP has the right to 
suspend or remove a pilot participant based on a determination that an 
unacceptable compliance risk exists, or where public health interests 
or safety so require.
    If CBP finds that there is a basis to suspend or remove a 
participant from the pilot, the pilot participant will be provided a 
written notice informing the participant of immediate suspension or 
removal from the program. The pilot participant will be offered the 
opportunity to appeal the decision in writing. Any appeal must be 
addressed to the Outbound Enforcement and Policy Branch Chief and 
submitted via email to [email protected] within 15 business 
days of notification of suspension or removal from the program. The 
appeal must address the facts or conduct charges contained in the 
notice and state how the participant has or will achieve compliance. 
CBP will notify the participant within 30 business days of receipt of 
an appeal whether the appeal is granted. The participant will not be 
permitted to participate in the pilot while an appeal is pending and 
may not become active in the pilot again until CBP approves the 
participant's reinstatement. If no timely appeal is received, the 
notice becomes the final decision of the Agency as of the date that the 
appeal period expires.

Pete Flores,
Executive Assistant Commissioner, Office of Field Operations, U.S. 
Customs and Border Protection.
[FR Doc. 2022-09966 Filed 5-9-22; 8:45 am]
BILLING CODE 9111-14-P