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: 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

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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