Announcement of National Customs Automation Program Test Regarding Remote Location Filing

DEPARTMENT OF THE TREASURY

Customs Service

Announcement of National Customs Automation Program Test

Regarding Remote Location Filing

AGENCY: Customs Service, Department of the Treasury.

ACTION: General notice.

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SUMMARY: This notice announces Customs plan to conduct the first of at

least two prototype tests regarding remote location filing. This notice

invites public comments concerning any aspect of the planned test,

informs interested members of the public of the eligibility

requirements for voluntary participation in the testing of the first

prototype, and describes the basis on which Customs will select

participants.

EFFECTIVE DATE: The test of the first prototype will commence no

earlier than June 1, 1995, and will run for approximately six months.

Comments concerning the methodology of the first remote filing

prototype must be received on or before May 8, 1995. To participate in

the first prototype test, the necessary information, as outlined in

this notice, must be filed with Customs on or before May 8, 1995.

ADDRESSES: Written comments regarding this notice and information

submitted to be considered for voluntary participation on the first

prototype should be addressed to the Remote Filing Team, U.S. Customs

Service, 1301 Constitution Avenue, N.W., Room 1322, Washington, D.C.

20229-0001.

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 (202) 927-0424.

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).

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,

certain Customs Regulations pertaining to brokers permits, surety

bonds, and the entry of merchandise will be suspended.

Since June of 1994, the Customs Remote Team has shared Customs RLF

concept through many public meetings and concept papers, and other

information on RLF has been distributed on the Customs Electronic

Bulletin Board and the Customs Administrative Message System.

Customs intends to conduct at least two prototypes of the RLF

component of the NCAP. These tests will determine the system and

operational design of the RLF, which will allow all filers to

participate in this type of entry process at a national level. At this

time, how the final RLF program will operate is unknown. Prototype

participants must recognize that these are true prototypes to test the

benefits and potential problems of RLF for Customs, the trade

community, and other parties impacted by this program. It is important

to note that time and money spent on these prototypes may not carry

forward to the final program.

Description of RLF Program

Customs plans to implement RLF are based on blending the

experiences of the planned remote prototypes with other Customs

initiatives such as the Reorganization, ACS Redesign (ACE), and Trade

Compliance Process [[Page 17606]] Improvement. 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 a limited prototype test of RLF;

(2) To obtain experience through prototype tests of remote location

filing for use in the design of operational procedures, automated

systems, and regulations that are supportive and compatible with the

Customs Reorganization, the Trade Compliance Process Improvement, and

the ACE redesign; and

(3) To implement RLF on a national level after the completion of

the Reorganization, the Trade Compliance Process Improvement, and the

ACE Redesign.

The first RLF prototype (Prototype One) will commence no sooner

than June 1, 1995, and is scheduled to run for approximately six

months. Prototype One will be conducted with a very limited number of

participants at limited locations. This is due to the fact that this

prototype will be conducted with minimal system changes thereby

requiring Customs to intervene manually in tracking and processing. All

procedures and processes will be closely coordinated with all selected

and affected parties. The intent of this prototype is to test such

operational issues as communication, cargo movement and release, and

service to and from remote locations. This prototype will also test

features such as filing from a remote location, alternate exam

location, and possibly entry summary workload distribution.

The second remote prototype (Prototype Two) is tentatively

scheduled to commence no sooner than June 1, 1996. Prototype Two will

continue to evaluate operational impact and procedures, and begin

addressing additional systemic needs. The work completed by Customs

Trade Compliance process improvement teams and the Automated Commercial

Environment (ACE or the ACS Redesign), and experience gained from

Prototype One will be incorporated into this prototype.

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 be suspended during this prototype test to allow remote

filings by brokers in districts 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 will not constitute

confidential information and that lists of participants will be made

available to the public upon written request.

In order to qualify for filing from a remote location, a program

participant in the prototype 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 and requested Customs locations must have

operational experience with the Customs Electronic Invoice Program

(EIP) with either ABI/AII or EDIFACT. Locations available for prototype

participation are those ports currently operating with EIP release and

summary processing. It is possible that additional ports may be

available when the first prototype commences. The following are

locations currently operational with EIP. (S/P indicates summary

processing location and R/P indicates release processing location).

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DDPP location Electronic processing status

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0101 Portland ME................... S/P.

0106 Houlton ME.................... R/P, S/P done in 0101.

0115 Calais ME..................... R/P, S/P done in 0101.

0401 Boston........................ R/P.

0901 Buffalo....................... S/P.

0903 Rochester..................... R/P, S/P done in 0901.

1001 New York Seaport.............. R/P, S/P.

1101 Philadelphia.................. R/P, S/P.

1102 Chester PA.................... R/P, S/P done in 1101.

1103 Wilmington DE................. R/P, S/P done in 1101.

1108 Philadelphia Airport.......... R/P, S/P done in 1101.

1303 Baltimore Seaport............. R/P, S/P.

1401 Norfolk....................... R/P.

1601 Charleston.................... R/P.

1703 Savannah...................... R/P.

1803 Jacksonville.................. R/P.

2002 New Orleans................... R/P.

2304 Laredo........................ R/P, S/P.

2704 Los Angeles................... R/P, S/P done in Terminal Island,

CA.

2809 San Francisco................. R/P.

3001 Seattle....................... R/P.

3701 Milwaukee..................... R/P.

3801 Detroit....................... R/P.

3901 Chicago....................... R/P.

4101 Cleveland..................... S/P.

4102 Cincinnati.................... R/P, S/P done in 4101.

41## Louisville.................... R/P, S/P done in 4101.

4601 Newark........................ R/P, S/P.

4701 JFK........................... R/P, S/P.

5201 Miami......................... R/P, S/P.

5203 Port Everglades............... R/P, S/P done in 5201.

5206 Miami Airport................. R/P, S/P done in 5201.

5301 Houston....................... R/P.

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2. Participants must be operational on the Automated Clearing House

(ACH) 30 days before Prototype One commences;

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 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 an RLF 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 necessary, cargo will be

examined at the Customs port of arrival, or, at Customs discretion, 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 of the prototype.

Customs will work with participants to ensure that:

(1) Customs contacts and problem solving teams are established.

(2) Procedures for remote entry and entry summary processing are

prepared. [[Page 17607]]

(3) Notification to the participant's contact person of the

examination site is arranged.

Prototype One Application

This notice requests importers or brokers on behalf of importers to

voluntarily apply for participation in Prototype One by submitting the

following information to the Remote Filing Team, U.S. Customs Service,

1301 Constitution Avenue, N.W. Room 1322, Washington, D.C. 20229-0001

on or before the date set forth in the effective date paragraph at the

beginning of this notice:

1. Importer name and, if applicable, broker name, address, and

filer code.

2. Supplier name, address, and manufacturer's number.

3. Types of commodities to be imported.

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 the 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 Prototype One. Customs is looking for a

variety of circumstances and participants in this first prototype;

however, only a small number of participants will be selected. 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 EIP operational experience, volume

anticipated, electronic abilities, and available electronic interfaces

with other agencies import requirements. Participants selected will be

notified by means of the Customs Electronic Bulletin Board and the

Customs Administrative Message System.

III. Test evaluation criteria

Once participants are selected, Customs and the participants will

meet to review all public comments received concerning any aspect of

the test program or procedures, finalize procedures in light of those

comments, form problem-solving teams, and establish baseline measures

and evaluation methods and criteria. At 90 days and 180 days after

commencement, evaluations of the prototype will be conducted, with the

final results published in the Federal Register as required by

Sec. 101.9(b). The following evaluation methods and criteria have been

suggested:

1. Baseline measurements will be established through dataqueries

and questionnaires.

2. Reports will be run through use of dataquery throughout the

prototype.

3. Questionnaires will be conducted before, during, and after the

prototype period.

Preliminary ideas for evaluation criteria for Customs and other

government agencies are workload impact (workload shifts, cycletime,

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. Criteria ideas for the trade are service in cargo clearance

and problem resolution, cost benefits, system efficiency, operational

efficiency, and other items identified by the participant group.

In conclusion, it is emphasized that if a company is interested in

filing remotely, they must first be operational with the Electronic

Invoicing Program (EIP). For information on the Electronic Invoicing

Program (EIP), please contact your ABI Client Representative.

Dated: March 30, 1995.

Samuel H. Banks,

Assistant Commissioner, Office of Field Operations.

[FR Doc. 95-8429 Filed 4-5-95; 8:45 am]

BILLING CODE 4820-02-P