Automated Export System (AES)

SUMMARY: The Automated Export System (AES) is an electronic reporting

system jointly developed by the Bureau of the Census (Census) and

Customs that allows exporters to electronically transmit commodity

information contained on Shipper's Export Declarations and sea carriers

to electronically transmit outbound vessel manifest information. A

general description of how AES works, including the application,

qualification, and certification procedures for exporters and sea

carriers is being proposed in a document issued by the Bureau of the

Census in today's Federal Register. This document proposes to amend the

Customs Regulations to cross-reference the Census proposed regulations.

Also, this document proposes to set forth criteria under which Customs

will determine whether to approve an exporter for the option to

transmit commodity information through AES after a carrier has left the

United States (post-departure). This document also sets forth the

appeal procedures for AES exporters if Customs denies the exporter the

post-departure option; or, if Customs approves the post-departure

option for the AES exporter, the grounds for revocation of the use of

the option and the appeal procedures if Customs revokes the use of that

option.

Exporters that utilize the AES can expect to benefit from fewer

delays in the processing of export information by Customs due to

missing paperwork; fewer, but faster inspections of export shipments;

and reduced administration costs due to automation.

DATES: Comments must be received on or before April 13, 1999.

ADDRESSES: Written comments should be addressed to the U.S. Customs

Service, Office of Regulations and Rulings, Regulations Branch, Suite

3000, 1300 Pennsylvania Avenue, NW, Washington, D.C. 20229. Comments

submitted may be inspected at the U.S. Customs Service, Office of

Regulations and Rulings, Regulations Branch, Suite 3000, 1300

Pennsylvania Avenue, NW, Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Maritza Castro, Office of Field

Operations, Outbound Process, (703) 921-7465.

SUPPLEMENTARY INFORMATION:

Background

On October 9, 1998, Customs and the Bureau of the Census (Census)

published a joint notice in the Federal Register (63 FR 54438) that

informed the public of the current status of the Automated Export

System (AES), an electronic reporting system jointly developed by

Census and Customs that allows exporters to transmit commodity

information contained on Shipper's Export Declarations (SEDs), and

carriers to transmit outbound vessel manifest information. That notice

informed the public of developments affecting the implementation of the

AES and announced that Census and Customs would be developing

regulations to implement provisions and requirements for filing export

information electronically through the AES. Since the Background

information contained in that notice fully recounts the development of

the AES to date, it is incorporated here by reference.

AES Requirements in General

In a separate document published in today's Federal Register, the

Bureau of the Census is proposing to set forth general requirements for

the AES in the Census Regulations (chapter I of title 15 of the Code of

Federal Regulations) at redesignated subpart E of part 30 (15 CFR part

30). Although Customs proposes in this document to cross-reference the

Census Regulations that will provide for the AES, a general description

of the AES follows.

1. Eligibility. Participation in AES is voluntary. Regarding the

submission of SEDs, AES allows exporters, agents, and service

companies (collectively referred to as export commodity information

filers) that are required to report commodity export information to

electronically file such information on all export commodities

regardless of the mode of transportation in which the commodities

are being exported. See, proposed Sec. 30.60(a) of the Census

Regulations. Regarding outbound vessel manifest information, sea

carriers will be eligible to electronically file outbound manifest

information pursuant to the Sea Carrier's Module of AES proposed in

this document and in the Census proposal. It is expected that

modules will be created at a later date that will allow air carriers

and rail carriers to electronically file outbound manifest

information.

2. Application. Export commodity information filers and sea

carriers who wish to participate in AES may apply by filing a

``Letter of Intent,'' that contains the information described in

proposed Sec. 30.60(b) of the Census Regulations. For export

commodity information filers, the application will provide up to

three electronic filing options (denominated as options 2-4) for the

submission of commodity information, in addition to the present

method of filing paper documents (denominated as option 1):

a. Filing Full Pre-Departure Information (Option 2). Under this

option, all commodity information is required to be transmitted by

the export commodity information filer before the export of the

merchandise;

b. Filing Partial Pre-Departure Information (Option 3). Under

this option, only fourteen (14) identified data elements of

commodity information are required to be transmitted by the export

commodity information filer prior to exportation. The remaining data

elements of commodity information are to be transmitted within five

(5) business days of the date of exportation; or

c. Filing with No Pre-Departure Information (Option 4). This

option is only available to approved exporters wanting to export

qualifying commodities without submitting any pre-departure

information. However, complete commodity information must be

electronically filed within ten (10) business days of exportation.

(Note that export commodity information filers other than exporters,

such as agents and service companies, may not apply for this filing

option. The meaning of exporter in this context will be defined by

Census.)

3. Certification of AES Filers and Approval of Option 4 for

Exporters. The AES certification procedure generally provides that,

following the processing of the Letter of Intent to participate in

the AES, the prospective AES filer must perform an initial two-part

communication test so that it can be ascertained whether the

prospective filer's electronic system is capable of communicating

with the AES; applicants will be tested for the ability to send and

receive messages. For applicants applying for AES filing Options 2

or 3 or for electronic filing through the Sea Carrier's Module of

AES, Customs and Census will make the determination of whether a

particular export commodity information filer or sea carrier is

qualified, and certify them to participate in AES. See, proposed

Sec. 30.62 of the Census Regulations. Once an export commodity

information filer is qualified and certified to use either Option 2

or 3 as an AES participant, he may electronically file export

commodity information without any further approval process.

Similarly, once a sea carrier is qualified and certified to use the

Sea Carrier's Module as an AES participant, it may electronically

file outbound manifest information without any further approval

process.

For exporters applying for Option 4 (post-departure) filing

privileges, the application will be reviewed by a panel of

participating partnership agencies for approval. (Agencies currently

participating include Census, Customs, Bureau of Export

Administration, Nuclear Regulatory Commission, and the Office of

Foreign Assets Control.)

4. Responsibilities of participants in AES. The responsibilities

of participants include, for export commodity information filers,

making timely transmissions of the required export data elements, as

proposed in Sec. 30.63 of the Census Regulations, and for sea

carrier

[[Page 7423]]

module filers, making timely transmissions of the messages proposed

in Sec. 4.76 of the Customs Regulations. Participants are also

responsible, in accordance with the AES Trade Interface Requirements

handbook, which will be posted to the Customs internet web site

(www.customs.ustreas.gov) and will be available through the Customs

Electronic Bulletin Board (703-921-6155), for responding to

government-generated messages, making appropriate corrections or

cancellations to previously transmitted information, and maintaining

proper records concerning AES transactions. AES participants are

subject to the same penalty provisions that apply to paper filers of

SED and manifest information. See, proposed Sec. 30.60 of the Census

Regulations. If employing non-AES carriers or forwarders, an AES

export commodity information filer will be responsible for

identifying his status as an AES participant on transportation

documents so that Customs and the carrier know that paper SEDs are

not required because the filing was made via AES. See, proposed

Sec. 30.65 of the Census Regulations. AES participants will be

required to comply with the recordkeeping requirements proposed in

Sec. 30.66 of the Census Regulations and any other applicable

recordkeeping requirements that AES participants are subject to

under existing law.

Customs Denial of Requests for Option 4 Filing Status; Revocation of

Option 4 Filing Privileges Granted

Applicants requesting Option 4 filing status will have their

applications reviewed by the panel of participating partnership

agencies (identified above). (AERP participants who apply for Option 4

privileges will receive priority handling of their application. AERP

participants should note their status on their Letter of Intent to

ensure priority processing. Current participating AES-PASS filers will

be grandfathered into Option 4.) Although each agency has its own

evaluation criteria, a rejection by any of the agencies will result in

non-acceptance of the application for Option 4 filing status. Following

inter-agency review of applicants' credentials, Census will notify

applicants in writing of their approval or denial within thirty (30)

calendar days of receipt of the application.

Customs may deny an applicant's request for Option 4 filing status,

based on any of 4 separate grounds. If Customs denies an applicant's

request for Option 4 status, the applicant will receive a letter from

Census specifying the grounds on which Customs bases its denial and

setting forth the appeal procedures the applicant may use to challenge

Customs decision.

Once approved for Option 4 privileges, Customs may revoke the

privilege, based on any of 4 separate grounds. Such participants will

be advised in writing by Customs of the basis for the revocation and

may file an appeal to challenge Customs decision. In these cases, the

AES filer will be allowed to continue filing under Option 4 until the

administrative appeal process has been exhausted. However, Customs may

revoke a participant's Option 4 privileges immediately in cases of

intentional violations of any Customs law or when required by national

security.

The Sea Carrier's Module

Since 1996, Customs has held a series of open meetings with

representatives of the sea carrier industry to discuss methods of

improving compliance with manifest regulations and to create electronic

manifesting procedures that conform to the current business practices

of the industry. As a result of these meetings, Customs is proposing to

require sea carriers to electronically file booking information (i.e.,

cargo reservation information) before the loading and departure of the

sea carrier as part of the AES outbound manifesting procedures.

It is proposed that booking information be provided to Customs

through AES as the information becomes available as far in advance as

practical of the loading of the vessel. It is proposed that the booking

information be provided not later than seventy-two (72) hours prior to

departure of the vessel and that booking information received by the

carrier later in time, i.e., within seventy-two (72) hours of a

vessel's departure, will be transmitted immediately as it becomes

available. Customs will use this advanced booking information to screen

shipments for enforcement targeting.

It is also proposed that when an AES sea carrier receives the

actual freight, it will notify Customs via AES by transmitting a

``Receipt of booking'' message. Customs will then notify the AES

carrier if Customs will examine the booked cargo before the cargo is to

be loaded on the vessel. If the booked cargo is scheduled by Customs

for examination, then the carrier will not load the cargo until Customs

examines and releases the cargo. Not later than one day after a vessel

departs, an AES carrier will notify Customs of the date and time of the

departure of the vessel (``Departure'' message).

Sea carriers will normally have ten (10) business days after the

departure of the vessel to electronically file outbound vessel manifest

information (``Manifest'' message), except as otherwise provided for in

Secs. 4.75 and 4.84 of the Customs Regulations. Even though a sea

carrier files an electronic manifest, if paper SEDs are submitted by

filers of the export commodity information, participant sea carriers

will be responsible for submitting those SEDs to Customs within four

(4) business days after departure of the vessel, unless another time

frame is specified in Secs. 4.75 or 4.84 of the Customs Regulations.

Upon written agreement with participant sea carriers, Customs and

Census can provide for an alternative to the location filing

requirement for paper SEDs set forth in Sec. 4.75(b).

Filing outbound vessel manifest information electronically through

AES will be treated by Customs as meeting the outward cargo declaration

filing requirements (CF 1302-A) required by Secs. 4.63 and 4.75 of the

Customs Regulations, if the procedures set forth in the AES Trade

Interface Requirements handbook are followed.

Proposed Amendments Concerning AES, Customs Administrative

Procedures for Option 4 Privileges, and the Sea Carrier's

Transportation Module

In this document Customs is proposing to create a new Sec. 4.76

describing the Sea Carrier's module of AES which cross-references the

proposed Census Regulations on AES; and a new subpart 192 which

generally describes AES, cross-references the proposed Census

Regulations on AES, sets forth criteria under which Customs will

determine whether to approve an exporter for the AES option to transmit

commodity information after a carrier has left the United States (post-

departure), sets forth appeal procedures for AES exporters if Customs

denies the exporter the post-departure option, or, if Customs approves

the post-departure option for the AES exporter, the grounds for

revocation of the use of the option and the appeal procedures if

Customs revokes the use of the option. Customs is also proposing to

revise the authority citation for part 192 to more clearly show the

statutory basis of Customs authority to collect and examine manifest

and export data information.

Customs is also using this document as the vehicle to propose an

amendment to the general provisions of Part 101 of the Customs

Regulations to include a definition of the term ``business days.''

While the term ``business days'' is used in this document in reference

to filing times for sea carriers, the definition is proposed to have

applicability wherever the term is used throughout the Customs

Regulations (19 CFR).

A more detailed description of the proposed regulatory changes

follow:

[[Page 7424]]

Proposed Sec. 4.76

Proposed Sec. 4.76 is entitled ``Procedures and responsibilities of

carriers filing outbound vessel manifest information via the AES.''

This section will provide that the Sea Carrier's Module of the AES

allows sea carriers to submit required outbound vessel manifest data

electronically. This section will cross-reference proposed subpart E of

the Census Regulations (15 CFR Subpart E). Section 4.76 sets forth the

types of messages sea carriers on the module will be required to

transmit and the time frames for their transmission. Sea carriers

certified to use the module and adhering to the procedures concerning

the electronic submission of outbound vessel manifest information will

meet the outward cargo declaration filing requirements (CF 1302-A) of

Secs. 4.63 and 4.75 of the Customs Regulations (19 CFR 4.63 and 4.75),

except as otherwise provided in Secs. 4.75 and 4.84, if the procedures

set forth in the AES Trade Interface Requirements handbook are

followed.

Revision of Sec. 101.1

Section Sec. 101.1 will be amended to define the term ``business

days'' to mean the normal days of a work week: Monday through Friday,

excluding national holidays as specified in Sec. 101.6(a).

Revision of Sec. 192.0

Section Sec. 192.0 will be revised to account for the addition of a

new Subpart B entitled ``The Automated Export System (AES).''

Proposed Sec. 192.11

Proposed Sec. 192.11, entitled ``Description of the AES'', will

describe, in general terms, the nature of the electronic filing system

as an alternate method for exporters to comply with the export

reporting requirements, and cross-reference proposed subpart E of the

Census Regulations (15 CFR subpart E) as providing more fully for the

AES.

Proposed Sec. 192.12

Proposed Sec. 192.12, entitled ``Criteria for denial of

applications requesting AES post-departure (Option 4) filing status;

appeal procedures'', will state the four (4) grounds on which Customs

will base its denial of an applicant's request for this status, and

provide the appeal process by which an applicant may challenge Customs

decision. The four (4) grounds for rejection will be that the

applicant:

1. Is not an exporter, as defined in the Census Regulations;

2. Has a history of non-compliance with export regulations. For

example, the exporter has a history of late electronic submissions of

commodity information or a record of non-submission of required export

documentation;

3. Has been indicted, convicted or is currently under an

investigation, wherein Customs has developed probable cause, for a

felony involving any Customs law or any export law administered by

another government agency; or

4. Has made or caused to be made in the ``Letter of Intent'' a

false or misleading statement or omission with respect to any material

fact.

Applicants denied Option 4 status by Customs will have the

opportunity to appeal the decision by following the appeal procedure

provided at proposed Sec. 192.13(b). Applicants will be notified of the

status of their appeal within thirty (30) calendar days of receipt by

Customs, or, if a decision cannot be reached at that time, the

applicant will be notified of an expected date for the final decision

as soon as possible after the 30 calendar days. Applicants that are not

approved by Customs may reapply after one year from the date of the

final decision.

Proposed Sec. 192.13

Proposed Sec. 192.13, entitled ``Revocation of AES participants'

post-departure (Option 4) filing privileges; appeal procedures'', will

state the 4 grounds on which Customs may revoke a participant's Option

4 privileges, and provide the appeal process by which applicants may

challenge Customs decision. The 4 reasons for revocation will be that

the filer:

1. Has made or caused to be made in the ``Letter of Intent'' a

false or misleading statement or omission with respect to any material

fact;

2. Is indicted, convicted or is currently under an investigation,

wherein Customs has developed probable cause, for a felony involving

any Customs law or any export law administered by another government

agency;

3. Fails to substantially comply with export regulations. For

example, the filer develops a history of late submissions of Option 4

commodity information or develops a history of non-compliance with

other agencies' licensing regulations; or

4. Poses a significant threat to national security, such that his

continued participation in Option 4 should be terminated.

Participants issued a revocation notice will have the opportunity

to appeal the decision by contacting Customs at the address indicated

within thirty (30) calendar days of receipt of notification. Applicants

will be notified of the status of their appeal within thirty (30)

calendar days of receipt by Customs, or if a decision cannot be reached

at that time, the applicant will be notified of an expected date for

the final decision as soon as possible after the 30 calendar days.

Except as stated below, final revocation of Option 4 privileges will

not take effect until all appeal procedures have been exhausted or

until 30 calendar days after written notification of revocation, if no

appeal is made. This will give the participant time to take corrective

actions and include these actions as part of the appeal. However,

Customs reserves the right to make the revocation effective immediately

in cases of intentional violations of any Customs law on the part of

the program participant or when required by national security. In such

a case, the participant will be notified in writing and may appeal the

decision, but will not be able to continue to file under Option 4

during the appeal process. The participants will be notified in writing

of any revocation decision. Participants who have had their Option 4

privileges revoked, may still use the other two options for AES

transmissions.

Comments

Before adopting this proposal as a final rule, consideration will

be given to any written comments 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 of the Treasury

Department Regulations (31 CFR 1.4), and Sec. 103.11(b) of the Customs

Regulations (19 CFR 103.11(b)), on regular business days between the

hours of 9 a.m. and 4:30 p.m. at the Regulations Branch, Office of

Regulations and Rulings, U.S. Customs Service, the Ronald Reagan

Building, 1300 Pennsylvania St., N.W., Suite 3000, Washington, D.C.

Inapplicability of the Regulatory Flexibility Act, and Executive

Order 12866

Pursuant to provisions of the Regulatory Flexibility Act (5 U.S.C.

601 et seq.), it is certified that, if adopted, the proposed amendments

will not have a significant economic impact on a substantial number of

small entities, because booking information is already collected in the

ordinary course of business by sea carriers and the cost of

transmitting the information electronically to Customs through AES,

even if the carrier is not a certified AES participant, is not

substantial.

[[Page 7425]]

Accordingly, the proposed amendments are not subject to the regulatory

analysis or other requirements of 5 U.S.C. 603 and 604. Customs does

request comments specifically concerning the economic impact of

transmitting booking information on small carriers. This amendment does

not meet the criteria for a ``significant regulatory action'' as

specified in Executive Order 12866.

Paperwork Reduction Act

The collection of information contained in this notice of proposed

rulemaking has been submitted to the Office of Management and Budget

(OMB) for review in accordance with the Paperwork Reduction Act of 1995

(44 U.S.C. 3507). Comments on the collection of information should be

sent to the OMB, Attention: Desk Officer of the Department of the

Treasury, Office of Information and Regulatory Affairs, Washington,

D.C. 20503. A copy should also be sent to Customs at the address set

forth previously. Comments should be submitted within the time frame

that comments are due regarding the substance of the proposal.

An agency may not conduct or sponsor, and a person is not required

to respond to a collection of information unless the collection of

information displays a valid control number.

The collection of information in these proposed regulations is at

Sec. 4.76, which provides for the transmission of booking information

through the Sea Carrier's Module in the AES. Departure and manifest

information is already approved under OMB control numbers: 1515-0062

for the General Declaration (Vessel Clearance) and 1515-0078 for the

Cargo Declaration and the Cargo Declaration Outward with Commercial

Forms. The paperwork burden for the application procedure for the Sea

Carrier's Module is covered by the Census paperwork submission for

proposed 15 CFR 30.60.

The booking information to be collected is necessary so that

Customs can more effectively target high-risk shipments. The likely

respondents are sea carriers that are required to submit outbound

vessel manifest data.

The data which follows is presented in a range format. Depending on

the size of the shipping company, the numbers reflecting the frequency

of responses and the time associated with transmissions will vary:

Estimated total annual reporting and/or recordkeeping burden:

1,800-2,225 hours.

Estimated average annual burden per respondent/recordkeeper: 1-72

hours.

Estimated number of respondents and/or recordkeepers: 120-200.

Estimated annual frequency of responses: 6,500,000-8,000,000.

Comments are invited on:

a. Whether the collection of information is necessary for the

proper performance of the functions of the agency, including whether

the information shall have practical utility;

b. The accuracy of the agency's estimate of the burden of the

collection of information;

c. Ways to enhance the quality, utility, and clarity of the

information to be collected;

d. Ways to minimize the burden of the collection of information on

respondents, including through the use of automated collection

techniques or other forms of information technology; and

e. Estimates of capital or startup costs and costs of operations,

maintenance, and purchase of services to provide information.

Drafting Information

The principal author of this document was Gregory R. Vilders,

Attorney, Regulations Branch. However, personnel from other offices

participated in its development.

List of Subjects

19 CFR Part 4

Cargo vessels, Common carriers, Customs duties and inspection,

Declarations, Exports, Foreign commerce and trade statistics, Freight,

Inspection, Maritime carriers, Merchandise, Reporting and recordkeeping

requirements, Shipping, Vessels.

19 CFR Part 101

Customs duties and inspection, Customs ports of entry, Exports,

Foreign trade statistics, Harbors, Imports, Organization and functions

(Government agencies), Reporting and recordkeeping requirements,

Shipments, Vessels.

19 CFR Part 192

Customs duties and inspection, Electronic filing, Export control,

Reporting and recordkeeping requirements, Vessels.

Amendments to the Regulations

For the reasons stated above, it is proposed to amend parts 4, 101,

and 192 of the Customs Regulations (19 CFR parts 4, 101, and 192), as

set forth below:

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

1. The general authority citation for part 4 continues to read as

follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624;

46 U.S.C.App. 3, 91.

* * * * *

2. A new Sec. 4.76 is added to read as follows:

Sec. 4.76 Procedures and responsibilities of carriers filing outbound

vessel manifest information via the AES.

(a) The sea carrier's module. The Sea Carrier's Module is a

component of the Automated Export System (AES) (see, part 192, subpart

B of this chapter) that allows for the filing of outbound vessel

manifest information electronically (see, 15 CFR part 30). All sea

carriers are eligible to apply for participation in the Sea Carrier's

Module. Application and certification procedures for AES are found at

15 CFR 30.60. A sea carrier certified to use the module that adheres to

the procedures set forth in this section and the Census Regulations (15

CFR part 30) concerning the electronic submission of an outbound vessel

manifest information meets the outward cargo declaration filing

requirements (CF 1302-A) of Secs. 4.63 and 4.75 of this part, except as

otherwise provided in Secs. 4.75 and 4.84, and if procedures set forth

in the AES Trade Interface Requirements handbook (see Customs internet

website (www.customs.ustreas.gov)) are followed.

(b) Responsibilities. Carriers and their agents are responsible for

reporting accurate and timely information and for responding to all

notifications concerning the status of their transmissions and the

detention and release of freight in accordance with the procedures set

forth in the AES Trade Interface Requirements handbook. Customs will

send messages to participant carriers regarding the accuracy of their

transmissions. AES participants are required to comply with the

recordkeeping requirements contained at Sec. 30.66 of the Census

Regulations (15 CFR 30.66) and any other applicable recordkeeping

requirements. Where paper SEDs have been submitted by exporters,

participant carriers will be responsible for submitting those SEDs to

Customs within four (4) business days after the departure of the

vessel, unless a different time requirement is specified by Secs. 4.75

or 4.84 of this part. Upon written agreement with participant sea

carriers, Customs and Census can provide for an alternative to the

location filing requirement for paper SEDs set

[[Page 7426]]

forth in Sec. 4.75(b) by which the participant carriers are otherwise

bound.

(c) Messages required to be filed within the sea carrier's module.

Participant carriers will be responsible for transmitting and

responding to the following messages:

(1) Booking. Booking information identifies all the freight that is

scheduled for export. Booking information will be transmitted to

Customs via AES for each shipment as far in advance of departure as

practical, but no later than seventy-two hours prior to departure for

all information available at that time. Bookings received within

seventy-two hours of departure will be transmitted to Customs via AES

as received;

(2) Receipt of booking. When the carrier receives the cargo or

portion of the cargo that was booked, the carrier will inform Customs

so that Customs can determine if an examination of the cargo is

necessary. Customs will notify the carrier of shipments designated for

examination. Customs will also notify the carrier when the shipment

designated for inspection is released and may be loaded on the vessel;

(3) Departure. No later than the first business day following the

actual departure of the vessel, the carrier will notify Customs of the

date and time of departure; and

(4) Manifest. Within ten (10) business days after the departure of

the vessel, the carrier will submit the manifest information to Customs

via AES for each booking loaded on the departed vessel. However, if the

destination of the vessel is a foreign port listed in Sec. 4.75(c), the

carrier must transmit complete manifest information before vessel

departure. Time requirements for transmission of complete manifest

information for carriers destined to Puerto Rico and U.S. possessions

are the same as the requirement for the submission of the complete

manifest as found in Sec. 4.84.

(d) All penalties and liquidated damages that apply to the

submission of paper manifests (see, applicable provisions in part 4 of

this chapter) apply to the electronic submission of outbound vessel

manifest information through the Sea Carrier's Module.

PART 101--GENERAL PROVISIONS

1. The general authority citation for part 101 continues to read as

follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note 20,

Harmonized Tariff Schedule of the United States), 1623, 1624, 1646a.

* * * * *

2. In Sec. 101.1, add, in appropriate alphabetical order, the

definition of ``business day'':

Sec. 101.1 Definitions.

* * * * *

Business day. A ``business day'' means a weekday (Monday through

Friday), excluding national holidays as specified in Sec. 101.6(a) of

this part.

* * * * *

PART 192--EXPORT CONTROL

1. The authority citation for part 192 is revised to read as

follows:

Authority: 19 U.S.C. 66, 1624, 1646c.

Subpart A also issued under 19 U.S.C. 1627a, 1646a;

Subpart B also issued under 13 U.S.C. 303; 46 U.S.C. App. 91.

2. In Sec. 192.0, a third sentence is added to read as follows:

Sec. 192.0 Scope.

* * * This part also makes provision for the Automated Export

System (AES), implemented by the Census Regulations at Subpart E (15

CFR Subpart E), and provides the grounds under which Customs, as one of

the reviewing agencies of the government's export partnership, may deny

an application for post-departure filing status or revoke a

participant's privilege to use such filing option, and provides for the

appeal procedures to challenge such action by Customs.

3. A new subpart B, consisting of Secs. 192.11 through 192.13, is

added to read as follows:

Subpart B--Filing of Export Information Through the Automated Export

System (AES)

Sec.

192.11 Description of the AES.

192.12 Criteria for denial of applications requesting AES post-

departure (Option 4) filing status; appeal procedures.

192.13 Revocation of participant's AES post-departure (Option 4)

filing privileges; appeal procedures.

Subpart B--Filing of Export Information Through the Automated

Export System (AES)

Sec. 192.11 Description of the AES.

AES is a voluntary program that allows all exporters required to

report commodity export information (see, 15 CFR 30.16) to submit such

information electronically, rather than on paper, and sea carriers to

report required outbound vessel information electronically (see,

Secs. 4.63, 4.75, and 4.76 of this chapter). Eligibility and

application procedures are found at subpart E of part 30 of the Census

Regulations (15 CFR subpart E), denominated Electronic Filing

Requirements--Exporters. These Census Regulations provide that

exporters may choose to submit export information through AES by any

one of three electronic filing options available. Only Option 4, the

complete post-departure submission of export information, requires

prior approval by participating agencies before it can be used by AES

participants.

Sec. 192.12 Criteria for denial of applications requesting AES post-

departure (Option 4) filing status; appeal procedure.

(a) Approval process. Applications for the option of filing export

commodity information electronically through AES after the vessel has

departed (Option 4 filing status) must be unanimously approved by

Customs, Census and other participating government agencies.

Disapproval by one of the participating agencies will cause rejection

of the application.

(b) Grounds for Denial. Customs may deny a participant's

application for any of the following reasons:

(1) The applicant is not an exporter, as defined in the Census

Regulations (15 CFR 30.7(d));

(2) The applicant has a history of non-compliance with export

regulations (e.g., exporter has a history of late electronic submission

of commodity records or a record of non-submission of required export

documentation);

(3) The applicant has been indicted, convicted, or is currently

under an investigation, wherein Customs has developed probable cause,

for a felony involving any Customs law or any export law administered

by another government agency; or

(4) The applicant has made or caused to be made in the ``Letter of

Intent,'' a false or misleading statement or omission with respect to

any material fact.

(c) Notice of denial; appeal procedures. Applicants will be

notified of approval or denial in writing by Census. (Applicants whose

applications are denied by other agencies must contact those agencies

for their specific appeal procedures.) Applicants whose applications

are denied by Customs will be provided with the specific reason(s) for

non-selection. Applicants may challenge Customs decision by following

the appeal procedure provided at Sec. 192.13(b) of this part.

Sec. 192.13 Revocation of participants' AES post-departure (Option 4)

filing privileges; appeal procedures.

(a) Reasons for revocation. Customs may revoke Option 4 privileges

of participants for the following reasons:

(1) The exporter has made or caused to be made in the ``Letter of

Intent,'' a

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false or misleading statement or omission with respect to any material

fact;

(2) The exporter submitting the ``Letter of Intent'' is indicted,

convicted, or is currently under an investigation, wherein Customs has

developed probable cause, for a felony involving any Customs law or any

export law administered by another government agency;

(3) The exporter fails to substantially comply with export

regulations; or

(4) Continued participation in AES as an Option 4 filer would pose

a threat to national security, such that his continued participation in

Option 4 should be terminated.

(b) Notice of revocation; appeal procedures. When Customs has

decided to revoke a participant's Option 4 filing privileges, the

participant will be notified in writing of the reason(s) for the

decision. The participant may challenge Customs decision by filing an

appeal within thirty (30) calendar days of receipt of the notice of

decision. Except as stated below, the revocation shall become effective

when the participant has either exhausted all appeal proceedings or

thirty (30) calendar days after receipt of the notice of revocation if

no appeal is filed. However, in cases of intentional violations of any

Customs law on the part of the program participant or when required by

the national security, revocations will become effective immediately

upon notification. Appeals should be addressed to the National Outbound

Process Owner, U.S. Customs, Ronald Reagan Building, 1300 Pennsylvania

Ave, NW, Room 5.4c, Washington D.C. 20229. Customs will issue a written

decision or notice of extension to the participant within thirty (30)

calendar days of receipt of the appeal. If a notice of extension is

forwarded, the applicant will be provided with the reason(s) for

extension of this time period and an expected date of decision.

Participants who have had their Option 4 filing privileges revoked and

applicants not selected to participate in AES, may not reapply for this

filing status for one year following written notification of rejection

or revocation.

Raymond W. Kelly,

Commissioner of Customs.

Approved: December 9, 1998.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 99-3306 Filed 2-11-99; 8:45 am]

BILLING CODE 4820-02-P