[Federal Register Volume 88, Number 32 (Thursday, February 16, 2023)]
[Notices]
[Pages 10140-10143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03279]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Section 321 Data Pilot: Modification of Data Elements, Expansion 
of Pilot To Include Additional Test Participants, and Extension of 
Pilot

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

ACTION: General notice.

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SUMMARY: This notice announces that U.S. Customs and Border Protection 
(CBP) is modifying the Section 321 Data Pilot by adding optional data 
elements that may be submitted by any participant. CBP is also 
expanding the Section 321 Data Pilot to accept applications for 
additional participants in this test from all parties that meet the 
eligibility requirements. This notice also announces that CBP is 
extending the Section 321 Data Pilot through August 2025.

DATES: The voluntary pilot initially began on August 22, 2019, and will 
run through August 2025. The modifications of the data elements and 
expansion of the test to include additional participants set forth in 
this document are effective as of the date of publication of this 
notice in the Federal Register.

ADDRESSES: Prospective pilot participants should submit an email to 
[email protected]. In the subject line of your email please state, 
``Application for Section 321 Data Pilot.'' For information on what to 
include in the email, see section II.D (Application Process and 
Acceptance) of the notice published in the Federal Register on July 23, 
2019 (84 FR 35405).

FOR FURTHER INFORMATION CONTACT: Christopher Mabelitini, Director, 
Intellectual Property Rights & E-Commerce Division at 
[email protected] or 202-325-6915.

SUPPLEMENTARY INFORMATION:

I. Section 321 Data Pilot

    Section 321(a)(2)(C) of the Tariff Act of 1930, as amended, 
provides for an exemption from duty and taxes for shipments of 
merchandise imported by one person on one day having an aggregate fair 
retail value in the country of shipment of not more than $800. See 19 
U.S.C. 1321(a)(2)(C). On July 23, 2019, U.S. Customs and Border 
Protection (CBP) published a general notice in the Federal Register (84 
FR 35405) (July 2019 notice) introducing a voluntary Section 321 Data 
Pilot with a limit of nine participants. In accordance with the pilot, 
participants agree to transmit electronically certain data in advance 
of arrival for shipments potentially eligible for release under section 
321 of the Tariff Act of 1930, as amended (Section 321 shipments). The 
data pilot tests the feasibility of collecting certain advance data, 
beyond those required by current regulations, and of collecting data 
from non-traditional entities, such as online marketplaces, in order to 
effectively identify and target high-risk shipments in the e-commerce 
environment. With the expansion of the data pilot, CBP intends to 
increase the number of trade participants who are transmitting

[[Page 10141]]

advance data elements on Section 321 de minimis shipments for trade 
facilitation and risk management purposes, as well as add optional data 
elements that may be submitted by any participant.
    The purpose of this data pilot is to improve CBP's ability to 
identify and target high-risk shipments in the e-commerce environment, 
in addition to enhancing CBP's ability to facilitate trade and manage 
risks of shipments potentially eligible for release under Section 321 
more effectively and efficiently. The increase in the number of 
participants transmitting data, as well as the addition of new optional 
data elements, will provide CBP with additional data needed to measure 
the success of the pilot.
    The July 2019 notice provided a comprehensive description of the 
data pilot, its purpose, eligibility requirements, the application 
process for participation, and specifically stated that the data pilot 
applied only to Section 321 shipments arriving by air, truck, or rail 
(84 FR 35405). In December 2019, the pilot was expanded to include 
Section 321 shipments arriving by ocean and international mail covered 
in 19 CFR part 145 and extended through August 2021; CBP also provided 
clarification with respect to the misconduct portion of the data pilot 
(84 FR 67279) (December 2019 notice). On August 30, 2021, CBP extended 
the pilot for an additional two years through August 2023 to continue 
evaluation of the pilot and the risks associated with Section 321 
shipments (86 FR 48435).

II. Modification to Section 321 Data Elements

    This notice announces that CBP is modifying the Section 321 Data 
Pilot to include optional data elements that may be submitted by any 
participant. The modification will enable CBP to test further the 
feasibility of collecting advance data from individuals or entities 
that may possess the most relevant information relating to an e-
commerce shipment's supply chain. It will also enable CBP to better 
direct resources used in inspecting and processing these shipments, so 
that CBP can more accurately and efficiently target Section 321 
shipments to assess potential associated security risks. By expanding 
the pilot to include new optional data elements that can be submitted 
by any participant, the results of the pilot will inform possible 
future rulemakings, trade facilitation benefits, and other CBP 
initiatives affecting Section 321 shipments. For these reasons, CBP is 
modifying the Section 321 Data Pilot to include optional data elements.

Data Elements

    Participants in the Section 321 Data Pilot must transmit certain 
information for any Section 321 shipment destined for the United States 
for which the participant has information (84 FR 35405). The required 
data elements differ slightly depending on the entity transmitting the 
data. In general, the required data relates to the entity initiating 
the shipment (e.g., the entity causing the shipment to cross the 
border, such as the seller, manufacturer, or shipper); the product in 
the package; the listed marketplace price; and the final recipient 
(e.g., the final entity to possess the shipment in the United States). 
The data elements are as follows:
    1. All participants. All participants, regardless of filer type, 
must electronically transmit the following elements:

 Originator Code of the Participant (assigned by CBP)
 Participant Filer Type (e.g., carrier or online marketplace)
 One or more of the following:
    [cir] Shipment Tracking Number
    [cir] House Bill Number
    >[cir] Master Bill Number
 Mode of Transportation (e.g., air, truck, ocean, or rail).

    2. Participating carriers. In addition to the data elements listed 
above in paragraph 1, participating carriers must also electronically 
transmit the following data elements:

 Shipment Initiator Name and Address (e.g., the entity that 
causes the movement of a shipment, which may be a seller, shipper, or 
manufacturer, but not a foreign consolidator)
 Final Deliver to Party Name and Address (e.g., the final 
entity to receive the shipment once it arrives in the United States, 
which may be a final purchaser or a warehouse, but not a domestic 
deconsolidator)
 Enhanced Product Description (e.g., a description of a product 
shipped to the United States more detailed than the description on the 
manifest, which should, if applicable, reflect the advertised retail 
description of the product as listed on an online marketplace)
 Shipment Security Scan (e.g., verification that a foreign 
security scan for the shipment has been completed, such as an x-ray 
image or other security screening report)
 Known Carrier Customer Flag (e.g., an indicator that 
identifies a shipper as a repeat customer that has consistently paid 
all required fees and does not have any known trade violations).

    3. Participating online marketplaces. In addition to the data 
elements listed above in paragraph 1, participating online marketplaces 
must electronically submit the following data elements:

 Seller Name and Address (e.g., an international or domestic 
company that sells products on marketplaces and other websites), and, 
if applicable, Shipment Initiator Name and Address
 Final Deliver to Party Name and Address
 Known Marketplace Seller Flag (e.g., an indicator provided by 
a marketplace that identifies a seller as an entity vetted by the 
marketplace and has no known trade violations)
 Marketplace Seller Account Number/Seller ID (e.g., the unique 
identifier a marketplace assigns to sellers)
 Buyer Name and Address, if applicable (e.g., the purchaser of 
a good from an online marketplace. This entity is not always the same 
as the final deliver to party.)
 Product Picture (e.g., picture of the product presented on an 
online marketplace), Link to Product Listing (e.g., an active and 
direct link to the listing of a specific product on an online 
marketplace), or Enhanced Product Description (as defined in paragraph 
2)
 Listed Price on Marketplace (e.g., the retail price of a 
product that a seller lists while advertising on an online marketplace. 
For auction marketplaces, this price is the price of final sale.).

    4. Optional Data Elements. In addition to the data elements listed 
above, participants, regardless of filer type, may electronically 
submit the following data elements:

 Harmonized Tariff Schedule of the United States (10-digit 
HTSUS)
 Retail Price in Export Country
 Shipper Name
 Shipper Address
 Shipper Phone Number
 Shipper Email Address
 Consignee Name (e.g., the final deliver to party)
 Consignee Address
 Consignee Phone Number
 Consignee Email Address
 Buyer Name
 Buyer Address
 Buyer Phone Number
 Buyer Email Address
 Buyer Account Number
 Buyer Confirmation Number
 Shipment Initiator Phone Number
 Seller Phone Number

[[Page 10142]]

 Marketplace Name
 Marketplace website
 Carrier Name
 Known Carrier Customer Flag
 Merchandise/Product Weight
 Merchandise/Product Quantity
 Listed Price on Marketplace
 Manufacturer Identification Number (e.g., the MID)
 Manufacturer Name
 Manufacturer Address.

    The optional data elements may be submitted as of the publication 
of this notice in the Federal Register.

III. Expansion of Section 321 Applicant Participation

    Effective Immediately, CBP is expanding the test to accept 
applications for additional participants in this test from all parties 
that meet the eligibility requirements. If selected for participation, 
participants will be onboarded in the order in which their applications 
are received in phases averaging three participants per month. CBP will 
aim to onboard an average of three additional participants each month. 
This expansion will allow CBP to continue evaluating the feasibility of 
the 321 Data Pilot program and the risks associated with Section 321 
shipments.
    CBP seeks participation from stakeholders in the e-commerce 
environment, including carriers, brokers, freight forwarders, and 
online marketplaces. There are no restrictions regarding organizational 
size, location, or commodity type. Additionally, online marketplaces do 
not need to offer delivery logistic services to participate in the 
pilot. However, participation is limited to those parties with 
sufficient information technology infrastructure and support, as 
described below. All prospective pilot participants must fulfill the 
following eligibility requirements:
     Participants must use MQ connectivity capability, a 
messaging solution component, to submit data electronically to CBP and 
to receive messaging responses via an existing point-to-point 
connection with CBP. Alternatively, participants may authorize a 
carrier or broker that already participates in the pilot and has an 
existing point-to-point connection with CBP to transmit the information 
on their behalf.
     Participants establishing a new point-to-point connection 
with CBP will need to sign an Interconnect Security Agreement (ISA) or 
amend their existing ISA, if necessary, and adhere to security policies 
defined in the DHS 4300a security guide.
     Participants must send the mandatory data elements 
required for their filer type, as described above.

IV. Extension of the Section 321 Data Pilot Period

    CBP will extend the pilot to continue evaluation of the 321 Data 
Pilot program and the risks associated with section 321 shipments. The 
pilot will run through August 2025.

V. Authority

    This pilot is conducted pursuant to 19 CFR 101.9(a), which 
authorizes the Commissioner to impose requirements different from those 
specified in the CBP regulations for the 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.

VI. Privacy

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

VII. Paperwork Reduction Act

    The collection of information gathered under this test has been 
approved by the Office of Management and Budget (OMB) in accordance 
with the requirements of the Paperwork Reduction Act (44 U.S.C. 3507) 
and assigned OMB control number 1651-0142. An agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless it displays a valid control number assigned by OMB.

VIII. 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 Section 321 Data Pilot for any of the following:
    (1) Failure to follow the rules, terms, and conditions of this 
pilot;
    (2) Failure to exercise due care in the execution of participant 
obligations; or
    (3) Failure to abide by applicable laws and regulations.
    If the Director, Intellectual Property Rights and E-Commerce 
Division, Office of Trade, finds that there is a basis for 
discontinuance of pilot participation privileges, the pilot participant 
will be provided a written notice which may be transmitted 
electronically proposing the discontinuance with a description of the 
facts or conduct warranting the action. The pilot participant will be 
offered the opportunity to appeal the decision in writing within ten 
(10) business days of receipt of the written notice. The appeal of this 
determination must be submitted to the Executive Director, Trade Policy 
and Programs, Office of Trade, by emailing [email protected].
    The Executive Director, Trade Policy and Programs, Office of Trade, 
will issue a decision in writing which may be transmitted 
electronically on the proposed action within 30 business days after 
receiving a timely filed appeal from the pilot participant. If no 
timely appeal is received, the proposed notice becomes the final 
decision of the Agency as of the date that the appeal period expires. A 
proposed discontinuance of a pilot participant's privileges will not 
take effect unless the appeal process under this paragraph has been 
concluded with a written decision adverse to the pilot participant.
    In cases of willfulness or those in which public health, interest, 
or safety so require, the Director, Intellectual Property Rights and E-
Commerce Division, Office of Trade, may immediately discontinue the 
pilot participant's privileges upon written notice which may be sent 
electronically to the pilot participant. The notice will contain a 
description of the facts or conduct warranting the immediate action. 
The pilot participant will be offered the opportunity to appeal the 
decision within ten (10) business days of receipt of the written notice 
providing for immediate discontinuance. The appeal of this 
determination must be submitted to the Executive Director, Trade Policy 
and Programs, Office of Trade, by emailing [email protected].
    The immediate discontinuance will remain in effect during the 
appeal period. The Executive Director, Trade Policy and Programs, 
Office of Trade, will issue a decision in writing on the discontinuance 
within 15 business days after receiving a timely filed appeal from the 
pilot participant. If no timely appeal is received, the notice becomes 
the final decision of the Agency as of the date that the appeal period 
expires.

IX. Applicability of Initial Test Notice

    All other provisions found in the July 2019, December 2019, and 
August 2021, notices remain applicable, subject to the expansion of 
applicants provided herein. Furthermore, CBP reiterates that it is not 
waiving any regulations for purposes of the pilot. All existing 
regulations continue to apply to pilot participants.

X. Signing Authority

    Troy Miller, Acting Commissioner, having reviewed and approved this 
document, has delegated the authority

[[Page 10143]]

to electronically sign this document to Robert F. Altneu, who is the 
Director of the Regulations and Disclosure Law Division for CBP, for 
purposes of publication in the Federal Register.

    Date: February 13, 2023.
Robert F. Altneu,
Director, Regulations & Disclosure, Law Division. Regulations & 
Rulings, Office of Trade, U.S. Customs and Border Protection.
[FR Doc. 2023-03279 Filed 2-15-23; 8:45 am]
BILLING CODE 9111-14-P