[Federal Register Volume 63, Number 234 (Monday, December 7, 1998)]
[Notices]
[Pages 67511-67514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32459]
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DEPARTMENT OF THE TREASURY
Customs Service
Extension of National Customs Automation Program Test Regarding
Remote Location Filing
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: General notice.
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SUMMARY: This notice announces Customs second extension of the second
prototype of Remote Location Filing (RLF). This notice also invites
public comments concerning any aspect of the current test, informs
interested members of the public of the eligibility requirements for
voluntary participation, describes the basis for selecting
participants, and establishes the process for developing evaluation
criteria. To participate in the prototype test, the necessary
information, as outlined in this notice, must be filed with Customs and
approval granted. It is important to note that resources expended by
the trade and Customs on these prototypes may not carry forward to the
final program.
Based on our experience in the extension of the second prototype of
RLF, we have made modifications to the sections detailing Eligibility
Criteria, Prototype Two Applications, and Misconduct. The changes to
the Prototype Two Applications will affect parties who wish to apply
for participation in the extension of the second prototype of RLF.
Current participants may continue their participation without
reapplying.
EFFECTIVE DATE: The extension of the second prototype will commence no
earlier than January 1, 1999, will continue, and be concluded, no
earlier than December 31, 1999, by a notice in the Federal Register.
Comments concerning any aspect of the remote filing prototype test must
be received on or before [insert date 30 days after date of publication
of this document in the Federal Register].
ADDRESSES: Written comments regarding this notice, and information
submitted to be considered for voluntary participation in the prototype
should be addressed to the Remote Filing Team, U.S. Customs Service,
1300 Pennsylvania Avenue, NW, Room 5.2 A, Washington, DC 20229-0001.
FOR FURTHER INFORMATION CONTACT: For systems or automation issues:
Joseph Palmer (202) 927-0173, Jackie Jegels (301) 893-6717, or Patricia
Welter (305) 869-2782.
For operational or policy issues: Jennifer Engelbach (202) 927-
2293, or Bonnie Brigman (202) 927-0294.
SUPPLEMENTARY INFORMATION:
Background
Title VI of the North American Free Trade Agreement Implementation
Act (the Act), Pub. L. 103-182, 107 Stat. 2057 (December 8, 1993),
contains provisions pertaining to Customs Modernization (107 Stat.
2170). Subtitle B of title VI establishes the National Customs
Automation Program (NCAP), an automated and electronic system for the
processing of commercial importations. Section 631 in Subtitle B of the
Act creates sections 411 through 414 of the Tariff Act of 1930 (19
U.S.C. 1411-1414). These define and list the existing and planned
components of the NCAP (Section 411), promulgate program goals (Section
412), provide for the implementation and evaluation of the program
(Section 413), and provide for remote location filing (Section 414).
The Remote Location Filing (RLF) prototype will allow an approved
participant to file electronically a formal or informal consumption
entry with Customs from a location within the United States other than
the port of arrival (POA), or from within the port of arrival with a
requested designated exam site (DES) outside of the POA. Section
101.9(b) of the Customs Regulations (19 CFR 101.9(b)), implements the
testing of NCAP components. See, T.D. 95-21 (60 FR 14211, March 16,
1995).
Since June 1994, the Customs Remote Team has shared the Customs RLF
concept through many public meetings and concept papers, as well as
posted information on the Customs Electronic Bulletin Board (CEBB), the
Customs Administrative Message System, and the Customs Web Site on the
Internet at ``http://www.customs.treas.gov/rlf.'' Pursuant to
Sec. 101.9, Customs Regulations, Customs has been testing the RLF
concept.
On April 6, 1995, Customs announced in the Federal Register (60 FR
17605) its plan to conduct the first of at least two prototype tests
regarding RLF. The first test, Prototype One, began on June 19,
[[Page 67512]]
1995. On February 27, 1996, Customs announced in the Federal Register
(61 FR 7300) that it was permitting an extension and expansion of the
RLF Prototype One until the implementation of Remote Prototype Two. On
November 29, 1996, Customs announced in the Federal Register (61 FR
60749) its plan to conclude the first prototype test on December 31,
1996, and conduct a second prototype test of RLF commencing no earlier
than January 1, 1997. On December 3, 1997, Customs announced in the
Federal Register (62 FR 64043) its plan to extend the second prototype
through December 31, 1998. In today's document, Customs is announcing
that it will permit a second extension of the RLF Prototype Two.
The first remote location prototype test was offered in the
Automated Commercial System (ACS). Although the second remote prototype
test was originally scheduled to be tested in the Automated Commercial
Environment (ACE), the success of Prototype One precipitated the second
test under ACS with a larger participant pool. Remote location filing
will be a capability of ACE.
Additional prototypes of RLF are being developed by Customs to
determine the systemic and operational design of the final RLF program
which will allow all filers to participate in this type of entry
process at the national level. Prototype participants must recognize
that these prototypes test the benefits and potential problems of RLF
for Customs, the trade community, and other parties impacted by this
program.
Description of RLF Program
The RLF program will be determined by the experiences of the
planned remote prototypes and with other Customs initiatives, such as
the Trade Compliance Redesign, and ACE. The Customs RLF team's
objectives are:
(1) To work with the trade community, other agencies, and other
parties impacted by this program in the design, conduct, and evaluation
of the second prototype test of RLF;
(2) To obtain experience through prototype tests of RLF for use in
the design of operational procedures, automated systems, and
regulations; and
(3) To implement RLF at the national level in conjunction with the
Trade Compliance Redesign and ACE.
Description of Proposed Test
Prototype Two commenced January 1, 1997, and will run until
concluded, no earlier than December 31, 1999, by a notice in the
Federal Register. Prototype Two will evaluate the operational impact
and procedures for a larger participant base, and test filing from a
remote location and alternate location examinations.
Regulatory Provisions Suspended
Certain provisions in Parts 111 and Part 141 of the Customs
Regulations will be suspended during this prototype test. This will
allow brokers to file remotely to service ports, designated as ``broker
districts'' in accordance with a general notice published in the
Federal Register (60 FR 49971, dated September 27, 1995), where they
currently do not hold permits, and allow for the movement of cargo from
its POA to a DES outside of the POA.
Eligibility Criteria
To qualify, a participant must have proven capability to provide
electronically, on an entry-by-entry basis, the following: entry; entry
summary; invoice information using the Electronic Invoice Program (EIP)
when required by Customs; and the payment of duties, fees, and taxes
through the Automated Clearinghouse (ACH).
The following eleven requirements and conditions apply:
1. Participants must be operational on ACH 30 days before applying
for Prototype Two.
2. Participants must be operational on EIP before applying for
Prototype Two.
3. The requested Customs locations must have operational experience
with EIP and have received RLF training.
RLF Trained Locations
The following are locations currently operational under the RLF
Prototype Two test as both ports of arrival (POA) and designated
examination sites (DES).
Anchorage, AK
Atlanta, GA
Baltimore, MD
Baton Rouge, LA
Boston, MA
Brunswick, GA
Buffalo, NY
Calais, ME
Champlain-Rouses Point, NY
Charleston, SC
Charlotte, NC
Chattanooga, TN
Chicago, IL
Cincinnati, OH
Cleveland, OH
Columbus, OH
Dayton, OH
Dallas/Fort Worth, TX
Del Rio, TX
Detroit, MI
Durham, Raleigh, NC
Erie, PA
Gloucester, MA
Gramercy, LA
Greenville-Spartanburg, SC
Gulfport, MS
Houlton, ME
Houston, TX
Huntsville, AL
Indianapolis, IN
Jacksonville, FL
JFK International Airport
Knoxville, TN
Lake Charles, LA
Laredo/Eagle Pass, TX
LAX International Airport
Little Rock, AR
Logan Airport, MA
Longview, WA
Los Angeles/Long Beach, CA
Louisville, KY
Memphis, TN
Miami, FL
Morgan City, LA
Mobile, AL
Nashville, TN
New Bedford, MA
New Orleans, LA
Newport News, VA
Norfolk, VA
NY/Newark Area
NY Seaport, NY
Orlando, FL
Pascagoula, MS
Philadeophia/Chester, PA
Port Everglades, FL
Port Huron, MI
Portland, ME
Portland, OR
Portland Int'l Airport, OR
Providence, RI
Richmond, VA
Rochester, NY
San Diego/Otay Mesa, CA
San Francisco/Oakland, CA
Savannah, GA
Seattle, WA
Shreveport, LA
Springfield, MA
Tampa, FL
Toledo, OH
Utica/Syracuse, NY
Vicksburg/Jackson, MS
West Palm Beach, FL
Wilmington, NC
Winston-Salem, NC
Worcester, MA
Washington, DC
Future RLF Trained Locations
As the prototype continues and trade interest warrants, ports which
are not currently trained in EIP and RLF processing will be trained.
Announcements on newly trained ports will be placed on the CEBB,
Administrative Message System, and Customs Web Site on the Internet.
One criteria for selecting a port for training will be interest from
the trade. Participants who would like to expand their participation to
a non-trained port, should send the following information to the Remote
Filing Team (at the
[[Page 67513]]
address listed at the front of this document):
a. Company name;
b. Contact name and phone number;
c. Importer name;
d. Port(s) of interest; and
e. The estimated number of entries a month.
4. Participants must maintain a continuous bond which meets or
exceeds the national guidelines for bond sufficiency.
5. Only entry types 01 (consumption) and 11 (informal) will be
accepted.
6. Cargo release must be certified from the entry summary (EI)
transaction with the exception of immediate delivery explained in #7.
7. RLF participants will be allowed to file Immediate Delivery
releases for direct arrival road and rail freight at the land border
using paper invoices under Line Release, Border Cargo Selectivity
(BCS), or Cargo Selectivity (CS). This must be done in accordance with
19 CFR 142.21(a). Submission of all line items at the time of release
will be required of Northern Border filers if the release is effected
using BCS or CS. If an examination is required for a line release
transaction, the filer must submit all relevant line item information
through BCS or CS. Under BCS and CS, the examination will be performed
at the port of arrival using paper invoices. If the filer wishes the
examination to be performed at an alternate site, full entry summary
information (an EI transaction in ABI) with electronic invoice must be
transmitted.
8. Participants will not be allowed to file an RLF entry involving
cargo that has already been moved using in-bond procedures.
9. Participants will be required to use other government agency
interfaces where available.
10. When necessary, cargo will be examined at the Customs port of
arrival, or, at Customs discretion, a filer's requested DES, which must
be the Customs port nearest the final destination. The scheduling
(approval) of merchandise for examination at a DES that is not at the
port of arrival will be considered a conditional release under permit
that automatically obligates the importer's bond pursuant to 19 CFR
113.62 for an immediate redelivery to the DES. This Federal Register
Notice advises the importer of record for such merchandise that this
movement is a redelivery and he/she will not receive an individual
notice of redelivery, Customs Form 4647, and that the redelivery clause
of the importer's bond is automatically triggered whenever Customs
decides to examine the merchandise at a DES that is not at the port of
arrival.
11. If a notice of redelivery is not complied with, or delivery to
unauthorized locations, or delivery to the consignee without Customs
permission occurs, the obligors agree to pay liquidated damages in the
amount specified pursuant to the bond in 19 CFR 113.62(f).
Customs will work with all participants to ensure that:
(1) Customs contacts and problem solving teams are established, and
(2) Procedures for remote entry and entry summary processing are
prepared.
Prototype Two Applications
This notice solicits applications for participation in Remote
Location Filing Prototype Two. All applications must initially be
submitted to Customs (at the address listed at the front of this
document). Applications will be accepted up to 30 days before the close
of the Prototype Two extension.
Since this is an extension of Remote Prototype Two, current
participants may continue their participation without reapplying. Note
that participation in RLF Prototype Two is not confidential, and that
lists of participants will be made available to the public. New
applicants will follow a two-step application process.
First Stage Application
During the first step, the filer must submit the following
information to U.S. Customs Headquarters (address cited above):
1. Filer or Broker name, address, filer code and IRS#;
2. Electronic Invoicing Program status and starting date;
3. Electronic Payment (ACH) status and starting date;
4. Site(s) from which the broker will be transmitting the
electronic information;
5. Type of protocol: AII, EDIFACT or both; and
6. Point of contact.
Second Stage Application
Once a filer has received written approval from U.S. Customs
Headquarters to proceed with the second step of the application
process, the filer must submit the following information to the Port
Director(s) overseeing each requested POA and DES location for each
client (importer):
1. Participating importer name, telephone number, contact name, and
Importer Number;
2. Supplier name, address, and manufacturer's number;
3. Types of commodities to be imported;
4. Other government agency requirements;
5. Site(s) from which the applicant will be transmitting the
electronic information;
6. Port name and port code for port(s) of arrival;
7. Port name and port code for designated examination site(s)
located nearest the final destination(s);
8. Monthly entry volume anticipated;
9. Carriers used and their Automated Manifest System (AMS) status;
10. Main contact person and telephone number of filer; and
11. Certification that a copy of this application letter has been
provided to the Client named in item 1.
Basis for Participant Selection
The basis for applications approved by Customs Headquarters will be
EIP operational experience, electronic abilities, available electronic
interfaces with other agency's import requirements, and operational
limitations. For application scenarios requesting a DES outside of the
POA, the compliance rate of the parties involved will be taken into
consideration.
The basis for applications being approved or denied by the Port
Director(s) will involve issues such as commodity documentation
requirements and whether the port has been trained in EIP/RLF.
Upon receipt of an application, the Port Director or designate,
will send the applicant a letter of acknowledgment. If there are no
issues to be resolved, the application will be considered approved
twenty (20) days from the date of the acknowledgment letter. If there
are issues to be resolved prior to a decision on the application, the
Port Director or designate will send the applicant, within twenty (20)
days, a letter indicating that the application is pending further
review until joint resolution of the issues can be achieved. If the
application is denied, the Port Director or designate will issue a
denial letter with reasons to the applicant. If denied, the applicant
may appeal to the Remote Filing Team at Headquarters in writing within
twenty (20) days from the date of denial or reapply to the Port
Director(s).
Misconduct
If a program participant attempts to submit data for merchandise
subject to quota, anti-dumping duties, countervailing duties, or other
non-eligible merchandise, or fails to exercise reasonable care in the
execution of participant obligations and the filing of information
regarding the admissibility
[[Page 67514]]
of merchandise, and declaring the classification, value, and rate of
duty applicable to the merchandise, or otherwise fails to follow the
procedures (outlined herein) or applicable laws and regulations, then
the participant may be subject to liquidated damages, penalties, and/or
other administrative sanctions, expelled or suspended from the
prototype, and/or prevented from participation in future prototypes.
Customs has the discretion to suspend prototype participation based on
the determination that an unacceptable compliance risk exists. This
suspension may be invoked at any time after acceptance in the
prototype.
Any decision proposing suspension of a participant may be appealed
in writing to the Headquarters Remote Team within twenty (20) days of
the decision date. Such proposed suspension will apprise the
participant of the facts or conduct warranting suspension. Should the
participant appeal the notice of proposed suspension, the participant
should address the facts or conduct charges contained in the notice and
state how he does or will achieve compliance. However, in the case of
willfulness or where public health interests or safety are concerned,
the suspension may be effective immediately.
Any other action commenced by Customs for misconduct may be
appealed in writing through existing procedures or, if none exists, to
the Headquarters Remote Team within twenty (20) days of the action.
Test Evaluation Criteria
Once participants are selected, Customs and the participants will
meet publicly or in an electronic forum to review comments received
concerning the methodology of the test program or procedures, complete
procedures in light of those comments, and establish baseline measures
and evaluation methods and criteria. Evaluations of the prototype will
be conducted and the final results will be published in the Federal
Register as required by Sec. 101.9(b), Customs Regulations.
The following evaluation methods and criteria have been identified.
1. Baseline measurements will be established through data queries
and questionnaires.
2. Reports will be run through use of data query throughout the
prototype.
3. Questionnaires will be distributed during and after the
prototype period. Participants are required to complete the
questionnaires in full and return them within 30 days of receipt.
Customs may evaluate any or all of the following items:
Workload impact (workload shifts, volume, etc.);
Policy and procedural accommodation;
Trade compliance impact;
Alternate exam site issues (workload shift, coordination/
communication, etc.);
Problem solving;
System efficiency; and
The collection of statistics.
The trade will be responsible for evaluating the following items:
Service in cargo clearance;
Problem resolution;
Cost benefits;
System efficiency;
Operational efficiency; and
Other items identified by the participant group.
Dated: December 1, 1998.
Robert S. Trotter,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 98-32459 Filed 12-4-98; 8:45 am]
BILLING CODE 4820-02-P
