Publication of Entry Filer Codes

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