[Federal Register Volume 61, Number 39 (Tuesday, February 27, 1996)]
[Notices]
[Pages 7300-7302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4425]
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DEPARTMENT OF THE TREASURY
Customs Service
Announcement 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 is to announce that Customs is permitting an
extension and expansion of the current Remote Location Filing Prototype
One until the implementation of Remote Prototype Two. Remote Prototype
Two will be conducted under the National Customs Automation Program
(NCAP) prototype in the Automated Commercial Environment (ACE). This
notice also invites public comments concerning any aspect of Remote
Prototype One, informs interested members of the public of the
eligibility requirements for voluntary participation in the testing of
the extension of the first prototype, and describes the basis on which
Customs will select the additional participants.
EFFECTIVE DATE: The first prototype test which began on June 19, 1995
will be extended until implementation of the NCAP Prototype, which
includes Remote Prototype Two, and is scheduled to commence no sooner
than January 1, 1997. Comments concerning the methodology of the first
remote filing prototype must be received on or before March 28, 1996.
To participate in the first prototype test, the necessary information,
as outlined in this notice, must be filed with Customs on or before
March 28, 1996.
ADDRESSES: Written comments regarding this notice, and information
submitted to be considered for voluntary participation in the extension
of the first prototype should be addressed to the Remote Filing Team,
U.S. Customs Service, 4455 Genesee Street Room 342, Buffalo, New York
14225.
FOR FURTHER INFORMATION CONTACT: For systems or automation issues: Russ
Lanouette (202) 927-0322, or Jackie Jegels (202) 927-0201. For
operational or policy issues: Linda LeBaron (716) 626-0400 extension
204.
SUPPLEMENTARY INFORMATION:
Background
Title VI of the North American Free Trade Agreement Implementation
Act (the Act), Public Law 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), which 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 (RLF) (section
414). 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).
On April 6, 1995, Customs published a document in the Federal
Register (60 FR 17605) announcing Customs plan to conduct the first of
at least two prototype tests regarding remote location filing. The
document invited public comments concerning any aspect of the test,
informed interested members of the public of the eligibility
requirements for voluntary participation in the testing and described
the basis on which Customs would be selecting participants. The test
was to commence no earlier than June 1, 1995, and was planned to be run
for approximately six months. The test began on June 19, 1995.
On September 12-13, 1995, the Remote Team held an interim
evaluation session for Remote Prototype One. The group discussed the
positive and negative aspects of the Remote prototype.
Positive factors identified were: faster release and other
processing; facilitation of cargo movement; decrease in need for paper;
increased cost savings; promotion of service and account based
processing; and established good partnership between Customs and Trade.
Negative factors identified as high priority for resolution were:
1. The test is limited in scenarios, Customs locations, and
participants;
2. There are problems or limitations under Customs current
Automated Commercial System (ACS) as well as uncertainty about the
specifics of future capabilities under Customs Automated Commercial
Environment (ACE);
3. There are issues that revolve around lack of coordination with
other government agencies and computer interfaces that are incomplete
or nonexistent;
4. There is a need for more complete training, cross training, and
coordination for Customs, trade, and other government agencies.
After several structured group interview sessions, sub-teams were
formed with internal and external participants to coordinate ideas and
assign taskings to address or resolve issues #2-4. These sub-teams will
remain intact in an effort to move forward with the resolution of the
factors identified.
To address the first factor, the Assistant Commissioner, Office of
Field Operations has approved the extension and expansion of Remote
Prototype One until the implementation of Remote Prototype Two. Remote
Prototype Two will be conducted under the ACE/NCAP Prototype umbrella
and commence no sooner than January 1, 1997. This extension will allow
for the Remote Team to work on improving systems planning, coordinating
with other government agencies, and developing better training efforts
with the benefit of additional scenarios, and an increased volume of
transactions and participants. In addition, the NCAP Prototype will
afford the Remote team the opportunity to test Remote under a more
developed ACE system and within the developing Trade Compliance
process.
Please note that participants for Remote Prototype Two will be
selected under separate criteria to be outlined in a separate NCAP
Prototype Federal Register notice. Therefore, Remote Prototype One
participants may or may not qualify for Remote Prototype Two.
I. Description of Proposed Test
The Concept of Remote Location Filing
Remote Location Filing (RLF) will allow a program participant to
file electronically an entry of merchandise with Customs from a
location within the United States other than at the port of arrival or
location of examination. Due to the nature of this prototype test,
[[Page 7301]]
certain Customs Regulations pertaining to brokers permits, surety
bonds, and the entry of merchandise will be suspended.
Implementation of the extension of the first RLF prototype
(Prototype One) will begin no sooner than March 29, 1996 and continue
until the implementation of Remote Prototype Two. Prototype One will
continue to be conducted with minimal system changes requiring Customs
and participants to manually intervene in tracking and processing. All
procedures and processes will be closely coordinated with all selected
participants and affected parties before implementation.
The intent of extending this prototype is to continue to test such
operational issues as communication, cargo movement and release, and
service to and from remote locations with a greater volume of entry
transactions and participants.
Regulatory Provisions Suspended
Certain provisions in Part 111, pertaining to Customs brokers, Part
113, pertaining to Customs bonds, and Part 141, pertaining to the entry
of merchandise, of the Customs Regulations (19 CFR Parts 111, 113, and
141) will continue to be suspended during this prototype test to allow
remote filings by brokers at locations where they currently do not hold
permits, and to allow for the movement of cargo from its port of
arrival to a designated examination site.
II. Eligibility Criteria
Note that participation in this testing is not confidential
information. Lists of participants will be made available to the public
by means of the Customs Electronic Bulletin Board and the Customs
Administrative Message System, and upon written request.
In order to qualify for filing from a remote location, a prototype
participant must have the capability to provide, on an entry-by-entry
basis, the electronic entry of merchandise; the electronic entry
summary of required information; the electronic transmission of invoice
information (ABI/AII or EDIFACT); and the electronic payment of duties
fees, and taxes (ACH). Other requirements and conditions are as
follows.
1. Participants must have operational experience with the Customs
Electronic Invoice Program (EIP) with ABI/AII or EDIFACT. Please note
that this prototype is a test of Remote Location Filing and not of EIP;
2. Participants must be operational on Automated Clearinghouse
(ACH) 30 days before implementation;
3. Only entry types 01 (consumption) and 11 (informal) will be
accepted;
4. Cargo release must be certified from the entry summary (EI)
transaction with the exception of immediate delivery, as explained in
#5;
5. Participants will be allowed to file Immediate Delivery releases
for direct arrival road and rail freight at the land border
(essentially 19 CFR 142.21(a)) with use of paper invoices under Line
Release, Border Cargo Selectivity (BCS), or Cargo Selectivity (CS).
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
with the use of paper invoices. If the filer wishes the examination to
be performed at an alternate site, full entry summary information (EI
transaction) with electronic invoice must be transmitted;
6. Participants will not be allowed to file a RLF entry against
cargo that has been moved in-bond;
7. Participants will be required to use OGA interfaces where they
are available; and
8. If an examination is determined to be necessary, the cargo will
be examined at the Customs port of arrival, or, at Customs discretion,
at a filer's requested designated examination site which would be a
Customs port which is at or nearest the final destination. This
movement of cargo to a designated examination port will be under the
importer's bond.
9. A participant must maintain an average of 1-2 entries per day
throughout the testing period.
10. Locations available for prototype participation are those ports
currently operational with the Remote test for release and summary
processing. It is possible, however, that additional ports may be
added.
The following are locations currently operational under the Remote
test: (POA indicates port of arrival, ESP indicates summary processing
location, and DES indicates designated examination site).
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DDDP location Electronic processing status
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0901 Buffalo.............................. ESP.
0903 Rochester............................ DES, ESP done in 0901.
1001 NY Seaport........................... POA, DES, ESP.
1303 Baltimore............................ POA, DES, ESP.
2704 Los Angeles.......................... POA, DES, ESP.
4601 Newark............................... POA, DES, ESP.
4701 JFK.................................. POA, DES, ESP.
5501 Dallas............................... DES, ESP done in 2704.
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Prototype One Applications
This notice requests importers, or brokers on behalf of importers,
to voluntarily apply for participation in Prototype One extension by
submitting the following information to the Remote Filing Team, U.S.
Customs Service, 4455 Genesee Street, Room 342, Buffalo, New York 14225
on or before the date set forth in the effective date paragraph at the
beginning of this notice:
1. Name, address, and filer code of importer and, if applicable,
broker.
2. Supplier/Vendor name, address, and manufacturer's number.
3. Types of commodities to be imported (high volume Harmonized
Tariff numbers).
4. Other agency requirements.
5. Port(s) of arrival.
6. Designated examination site(s) (location nearest the final
destination).
7. Monthly volume anticipated.
8. Requested entry summary processing location(s), if different
from port of arrival.
9. Electronic Invoicing Program status and projected start date.
10. Electronic Payment (ACH) status and projected start date.
11. Main contact person and telephone number for participation
questions.
12. Any comments on prototype participation.
Basis For Participant Selection
Eligible importers or importers with brokers will be considered for
selection as participants in the Prototype One extension. Customs is
looking for a variety of circumstances and participants in this first
prototype. We stress that those not selected for participation will be
invited to comment on the design, conduct, and evaluation of this
prototype. Selection will be based on Customs EIP operational
experience, volume anticipated, electronic abilities, and available
electronic interfaces with other agency's import requirements.
Participants selected will be notified in writing and selections will
be announced by means of the Customs Electronic Bulletin Board and the
Customs Administrative Message System.
III. Test Evaluation Criteria
Once participants are selected, the Remote Filing Team will review
all public comments received concerning any aspect of the prototype,
enhance
[[Page 7302]]
procedures in light of those comments, and form problem-solving teams.
Upon conclusion of the prototype the final results will be
published in the Federal Register as required by Sec. 101.9(b), Customs
Regulations and reported to Congress.
Dated: February 21, 1996.
Samuel H. Banks,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 96-4425 Filed 2-26-96; 8:45 am]
BILLING CODE 4820-02-P
