[Federal Register Volume 62, Number 77 (Tuesday, April 22, 1997)]
[Proposed Rules]
[Pages 19534-19536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10273]
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DEPARTMENT OF THE TREASURY
Customs Service
19 CFR Part 142
RIN 1515-AB27
Publication of Entry Filer Codes
AGENCY: Customs Service, Department of the Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document proposes to amend the Customs Regulations to
provide for the annual publication by electronic means of the code
assigned by Customs to identify frequent entry filers. This proposal is
consistent with the efforts to modernize the Customs Service and the
documentation related to imports. The proposal will assist components
of the trade industry in controlling import transactions and in serving
their clients among the importing public. It is anticipated that, if
promulgated as a final rule, the proposal will reduce the paperwork
burden on the affected public and the administrative burden on the
Customs Service.
DATES: Comments must be received on or before June 23, 1997.
ADDRESSES: Comments (preferably in triplicate) may be addressed to the
Regulations Branch, U.S. Customs Service, Franklin Court, 1301
Constitution Avenue, NW, Washington, D.C. 20229, and may be inspected
at Franklin Court, 1099 14th Street, NW, Washington, D.C.
FOR FURTHER INFORMATION CONTACT: Ray Janiszewski, Office of Trade
Compliance, (202) 927-0365 (Operational matters), or Paul Hegland,
Entry and Carrier Rulings Branch, Office of Regulations and Rulings,
(202) 482-7040 (Legal matters).
SUPPLEMENTARY INFORMATION:
Background
Generally, all merchandise brought into the United States is
required to be ``entered'', unless specifically excepted from entry.
The entry process consists of the importer of record, using reasonable
care: (1) filing with Customs the documentation necessary for Customs
to determine whether the merchandise may be released from Customs
custody (``an entry'') and (2) completing the entry by filing the
declared value, classification and rate of duty applicable to the
merchandise, and such other information or documentation as is
necessary to enable Customs to properly assess duties on the
merchandise, collect accurate statistics with regard to the
merchandise, and determine whether any other applicable requirement of
the law is met (``an entry summary''). Generally, an entry is required
within 5 working days after the arrival of the importing conveyance.
The person making entry (by filing the required documentation) is
required by law to be the owner or purchaser of the merchandise or, if
appropriately designated by the owner, purchaser, or consignee of the
merchandise, a licensed customs broker.
As a part of its Automated Commercial System (ACS), Customs assigns
a unique 3 character (alphabetic, numeric, or alpha numeric) entry
filer code to all licensed broker companies filing Customs entries and
to certain other importers filing Customs entries, based on the volume
and frequency of filing and other considerations. These entry filer
codes are not assigned to intermittent importers, who obtain from
Customs forms with Customs-assigned pre-printed entry numbers. The
entry filer is required to place the filer code, along with a unique
(to each entry) number and a check digit on each entry. This entry
number (consisting of 11 characters) is used by Customs and the
importer to identify the particular entry. This procedure of assigning
entry filer codes was implemented in the Customs Regulations (see 19
CFR 142.3a) by Treasury Decision (T.D.) 86-106, published in the
Federal Register on May 28, 1986 (51 FR 19166).
Entries of merchandise are reviewed by Customs. Under the law,
Customs is responsible for fixing the final appraisement of the
merchandise and the determination of applicable duty and admissibility.
``Liquidation'' is the final determination by Customs on the
dutiability and admissibility of imported merchandise. Customs is
required by law to give notice of liquidation to the importer, his
consignee, or agent, as prescribed by regulations. The pertinent
regulations require this notice to be made on a bulletin notice of
liquidation, Customs Form 4333 (19 CFR 159.9).
[[Page 19535]]
The importer of record is named on the bulletin notice of
liquidation for each entry (the entry is listed by number). As noted
above, after the implementation in the Customs Regulations in 1986 of
Customs procedures for the assignment of entry filer codes, the entry
filer code in each entry identifies the entry filer.
On January 13, 1993, in a document published in the Federal
Register (58 FR 4113), Customs announced in an Advance Notice of
Proposed Rulemaking (ANPRM) that it was considering the amendment of
the Customs Regulations to provide for the publication of a list of
filer codes and the identity of the individuals, licensed Customs
brokers, or importers assigned the specific filer codes. Customs stated
that this action would improve control for various components of the
trade community and reduce numerous questions and problems for Customs
relating to entry processing requirements. Customs noted that
publication of the filer codes with the persons assigned the codes
might be considered to provide a means for the public to gain access to
commercial information regarding import transactions which Customs had
heretofore treated as confidential. This publication of filer codes
will also enable brokers to identify those importers who are not using
their services.
Revised Policy Regarding Confidential Treatment
The Advance Notice of Proposed Rulemaking solicited comments.
Twenty letters were received, many of them setting forth similar
comments. Several of the comments received addressed Customs policy
providing for confidentiality of filer codes as set forth in T.D 88-38.
The comments have caused Customs to review and examine this policy.
This review has led Customs to revise its position so that the current
position that Customs holds is that filer code information should be
considered public information. Customs has reached this determination
after a comprehensive review of the overall operational situation in
the commercial environment. In this review, Customs found that in spite
of its attempts to protect the identities of importers, there were many
instances where this effort had been compromised and the identities of
importers and their filer codes are readily available to those who
might be seeking such information. Because of the general availability
of this information in the commercial arena, Customs does not believe
that a continuation of its efforts to treat the information as
confidential is either necessary or warranted. Customs believes that
the comments received from brokers and carriers indicate that the
benefits claimed by giving broader dissemination of the information
support the proposal to publish the filer codes. Customs believes that
the concerns expressed by commenters in regard to the need to treat
filer code information as confidential are not warranted. Because of
this policy determination, it is Customs intention to revoke that
portion of T.D. 88-38 which provides for confidential treatment of
filer codes upon the request of an importer if the accompanying
proposed rule is finalized.
Discussion of Comments
The following is a summary discussion of additional comments which
were received by Customs in response to the Advanced Notice of Proposed
Rulemaking, and Customs response to those comments.
Comment: The Customs brokers and the brokers association who
commented supported the proposal, stating that identifying filers with
filer codes would assist brokers in helping members of the public who
use multiple brokers and in re-routing documentation and inquiries
which have been incorrectly routed. One of these commenters suggested
that publication should be through Customs Automated Commercial System
(ACS), with provision made for release of the information to those who
do not have access to ACS by Freedom of Information Act request. This
commenter suggested this means of publication in lieu of publication in
the Customs Bulletin.
Response: Customs agrees with the reasons given for support of the
proposal, as consistent with the reasons given in the advance notice.
As for the suggestion on the means of publication of the filer code
information, there is not currently a program supported in ACS for such
publication. Consideration will be given to developing such a
capability in ACS if sufficient interest is shown. For the present,
Customs is proposing publication of the filer code information on the
Customs Electronic Bulletin Board.
Comment: The carriers and carrier associations who commented
supported the proposal. One reason given for support was that carriers
need this information to assist in the cargo release process (i.e.,
carriers could clear up discrepancies much more rapidly if they could
more easily identify the parties involved). Another reason was that the
information provided under the proposal would enable carriers to
complete the manifest requirements, particularly carriers who are a
part of Customs Automated Manifest System (AMS) (i.e., in that a
carrier could more easily identify and contact a filer in the event of
a discrepancy).
Response: Customs agrees. This is consistent with the reasons given
for the proposal in the advance notice.
Comment: The sureties and surety associations who commented
supported the proposal, on the basis that it will help automation and
would enable sureties to more efficiently contact ``brokers of record''
in the event of discrepancies.
Response: Customs agrees. This is consistent with the reasons given
for the proposal in the advance notice.
Comment: A trade association supported the proposal, on the basis
that it would contribute significantly to the simplification of U.S.
trade documentation.
Response: Customs agrees. This is consistent with the reasons given
for the proposal in the advance notice.
Comment: A government agency supported the proposal, on the basis
that it could use the information which would be provided under the
proposal to obtain the status of a filer's entry and to communicate
with the filer.
Response: Customs agrees. This is consistent with the reasons given
for the proposal in the advance notice.
Comment: An association representing Customs bonded warehouses
supported the proposal, on the basis that it would help warehouse
proprietors to supply missing information or correct errors and to
avoid liquidated damages on warehouse custodial bonds. On the issue of
confidentiality, the commenter stated that it sees no difference
between the proposed publication and that of the names of operators of
bonded warehouses.
Response: Customs agrees with the reasons given for support of the
proposal, as being consistent with the reasons given for the proposal
in the advance notice. Customs has addressed that portion of the
comment concerning confidentiality earlier in this document.
Comment: Three trade or industry associations either conditionally
supported the proposal or did not object to it, provided that filers
who desired confidentiality could request it. The commenters suggested
the use of a procedure similar to the provision requesting confidential
treatment of manifest information in 19 CFR 103.14(d). The reason given
by one of these associations for its conditional support of the
proposal was that it
[[Page 19536]]
would facilitate movement of cargo and could reduce costs.
Response: Customs agrees with the reason given for support of the
proposal, as being consistent with the reasons given for the proposal
in the advance notice. As to the suggestion that filers who desired
confidentiality should be able to request such treatment, similar to
the provision for parties requesting confidential treatment of manifest
information, Customs finds this suggestion to be without merit. It is
Customs position that the filer codes are public information and, as
such, cannot be accorded confidential treatment.
Comment: Three importers either opposed the proposal or suggested
that its implementation be delayed. The reasons given for opposition
to, or the delay of, the proposal were that the proposal would result
in the disclosure of confidential business information and that no good
reason was given for the proposal.
Response: Customs believes that good reasons were given in the
advance notice for this proposal, and that the reasons set forth in
comments received from Customs brokers, carriers and sureties
supporting the proposal provide further support for the proposal.
Regarding the confidentiality issue, as indicated above, Customs
believes that the filer code information is not confidential.
Proposal
After reviewing the comments to the ANPRM and further
consideration, Customs has determined to proceed with the proposal to
amend the regulations to provide for the annual publication of the
identity of the code assigned by Customs to identify frequent entry
filers on the Customs Electronic Bulletin Board, without providing for
confidential treatment of filer identity.
Comments
Before adopting this proposal, consideration will be given to any
written comments (preferably in triplicate) that are timely submitted
to Customs. Comments submitted will be available for public inspection
in accordance with the Freedom of Information Act (5 U.S.C. 552),
Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular
business days between the hours of 9:00 a.m. and 4:30 p.m. at the
Regulations Branch, U.S. Customs Service, Franklin Court, Suite 4000,
1099 14th Street, NW, Washington, D.C.
Executive Order 12866
This document does not meet the criteria for a ``significant
regulatory action'' as specified in E.O. 12866.
Regulatory Flexibility Analysis
Because adoption of the proposed amendment will improve access to
frequently needed information for the commercial community without any
action on its part, pursuant to the provisions of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.), it is certified that the
proposed amendment, if adopted, will not have a significant economic
impact on a substantial number of small entities. Accordingly, it is
not subject to the regulatory analysis or other requirements of 5
U.S.C. 603 and 604.
List of Subjects in 19 CFR Part 142
Customs duties and inspection, Imports, Reporting and recordkeeping
requirements.
Proposed Amendment
It is proposed to amend Part 142, Customs Regulations (19 CFR Part
142), as set forth below:
PART 142--ENTRY PROCESS
1. The authority citation for Part 142, Customs Regulations (19 CFR
Part 142), continues to read as follows:
Authority: 19 U.S.C. 66, 1448, 1484, 1624.
2. It is proposed to amend Sec. 142.3a by redesignating paragraphs
(c) and (d) as paragraphs (d) and (e), respectively, and by adding a
new paragraph (c) to read as follows:
Sec. 142.3a Entry numbers.
* * * * *
(c) Publication of Entry Filer Codes. The Customs Service shall
make available annually by electronic means on the Customs Electronic
Bulletin Board a listing of filer codes and the importers, consignees,
and Customs brokers assigned those filer codes.
* * * * *
George J. Weise,
Commissioner of Customs.
Approved: November 22, 1996.
Dennis M. O'Connell,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 97-10273 Filed 4-21-97; 8:45 am]
BILLING CODE 4820-02-P
