5362 Federal Register / Vol. 69, No. 23 / Wednesday, February 4, 2004 / Notices 

DEPARTMENT OF HOMELAND 

SECURITY 

Bureau of Customs and Border 

Protection 

Automated Commercial Environment 

(ACE): Announcement of a National 

Customs Automation Program Test of 

Periodic Monthly Payment Statement 

Process and Establishment of Broker 

Accounts in the ACE Secure Data 

Portal

AGENCY: Customs and Border Protection, 

DHS.

ACTION: General notice.

SUMMARY: This document announces the 

Bureau of Customs and Border 

Protection’s (CBP) plan to conduct a 

National Customs Automation Program 

test concerning periodic monthly 

deposit of estimated duties and fees. 

This notice provides a description of the 

test process, outlines the development 

and evaluation methodology to be used, 

sets forth eligibility requirements for 

participation, invites public comment 

on any aspect of the planned test, and 

opens the application period for 

participation. 

This notice invites participation of the 

initial forty-one ACE Importer 

Accounts, and establishes a process by 

which their designated brokers can 

participate in filing entries and making 

payments related to the Periodic 

Monthly Statement.

DATES: The test will commence no 

earlier than April 14, 2004. Comments 

concerning this notice and all aspects of 

the announced test may be submitted at 

any time during the test period. CBP 

must receive all statements affirming 

intent to participate from the initial 

forty-one ACE Importer Accounts, the 

list of designated brokers, and the 

designated broker applications, as set 

forth in this notice, by April 5, 2004, 

unless under exceptional circumstances, 

and with CBP approval, an extension is 

granted. CBP will process additional 

Importer Account applications as CBP 

expands the universe of participation 

for this test. 

Expansion of this test to allow future 

applicants to participate may be delayed 

due to funding and technological 

constraints. Future phases of ACE may 

also be tested; however, the eligibility 

criteria may differ from the criteria 

listed in this notice. Acceptance into 

this test does not guarantee eligibility 

for, or acceptance into, future technical 

tests.

ADDRESSES: Comments concerning 

program and policy issues should be 

submitted to Mr. Robert B. Hamilton, 

Office of Finance, via e-mail at 

Robert.b.hamilton@dhs.gov. All 

statements affirming intent to 

participate in the test by the initial 

forty-one Importer Accounts, and new 

applications to establish ACE Importer 

and Broker Accounts should be 

submitted to Mr. Michael Maricich via 

email at Michael.maricich@dhs.gov.

FOR FURTHER INFORMATION CONTACT: For 

questions regarding these Importer or 

Broker Accounts: Mr. Michael Maricich 

via email at Michael.maricich@dhs.gov,

or by telephone at (703) 668–2406; 

For questions regarding Periodic 

Monthly Statement payments: Mr. 

Robert Hamilton via email at 

Robert.b.hamilton@dhs.gov, or by 

telephone at (317) 298–1107.

SUPPLEMENTARY INFORMATION: 

Background 

This document announces the Bureau 

of Customs and Border Protection’s 

(CBP) plan to conduct a National 

Customs Automation Program (NCAP) 

test, under which test participants will 

be allowed to deposit estimated duties 

and fees on a monthly basis, based on 

a Periodic Monthly Statement issued by 

CBP. Participating importers and their 

designated brokers will be allowed to 

deposit estimated duties and fees no 

later than the 15th calendar day of the 

month following the month in which 

the goods are either entered or released, 

whichever comes first. (See section 383 

of the Trade Act of 2002, Pub. L. 107–

210, dated August 6, 2002, which 

amends section 505(a) of the Tariff Act 

of 1930 (19 U.S.C. 1505(a)). 

The authority for testing NCAP 

programs is set forth in 19 CFR 101.9(b), 

which enables the Commissioner of CBP 

to conduct limited test programs or 

procedures designed to evaluate 

planned components of the NCAP. 

Development of ACE 

The initial phase of the Customs and 

Border Protection Modernization 

Program (see North American Free 

Trade Agreement Implementation Act, 

Pub. L. 103–182, 107 Stat. 2057, 2170 

(December 8, 1993)) focuses on Trade 

Compliance and the development of 

ACE through NCAP. The purposes of 

ACE, successor to the Automated 

Commercial System (ACS), are to 

streamline business processes, to 

facilitate growth in trade, and to foster 

participation in global commerce, while 

ensuring compliance with U.S. laws and 

regulations. Development of ACE will 

consist of many releases. Each release, 

while individually achieving critical 

business needs, also will set forth the 

foundation for the subsequent releases. 

The previous release of ACE involved 

testing the ability of importers and 

authorized parties to access their CBP 

data via the ACE Secured Data Portal 

(hereinafter, ‘‘ACE Portal’’), with a focus 

on defining and establishing the 

Importer Account structure. (See,

Federal Register notice published May 

1, 2002 (67 FR 21800)). This test is the 

next step toward the full electronic 

processing of commercial importations 

in ACE, with a focus on identifying 

authorized importers and brokers to 

participate in the Periodic Monthly 

Statement process. 

The benefits to participants in this 

test include having access to operational 

data through the ACE Portal, the 

capability of being able to interact 

electronically with CBP, and the 

capability of making payments of duties 

and fees on a periodic monthly basis. 

Eligibility Criteria 

The eligibility criteria for importer 

participation in the previous release of 

ACE, as set forth in the May 1, 2002, 

Federal Register notice (67 FR 21800), 

included the first two provisions listed 

below. For this test, importers and their 

designated brokers must satisfy two 

additional requirements. To be eligible 

for participation in this test, importers 

and their designated brokers must: 

1. Participate in the Customs Trade 

Partnership Against Terrorism (C-TPAT) 

program; C–TPAT is a joint governmentbusiness initiative to build cooperative 

relationships that strengthen overall 

supply chain and border security. For 

further information, please refer to the 

CBP Web site at http://www.cbp.gov.

2. Have the ability to connect to the 

Internet;

3. Have the ability to make periodic 

payment via ACH Credit or ACH Debit;

and 

4. Have the ability to file entry/entry 

summary via ABI (Automated Broker 

Interface).

Description of the Test 

Participants in the Periodic Monthly 

Statement test are required to schedule 

entries for monthly payment. A Periodic 

Monthly Statement will list Periodic 

Daily Statements that have been 

designated for monthly payment. The 

Periodic Monthly Statement can be 

created on a port basis by the importer 

or broker, as is the case with existing 

daily statements in ACS. The Periodic 

Monthly Statement can be created on a 

national basis by an ABI filer. If an 

importer chooses to file the Periodic 

Monthly Statement on a national basis, 

it must use its filer code and schedule 

and pay the monthly statements. The 

Periodic Monthly Statement will be

Federal Register / Vol. 69, No. 23 / Wednesday, February 4, 2004 / Notices 5363

routed under existing CBP procedures. 

Brokers will only view / receive 

information that they have filed on an 

importer’s behalf. ACE will not route a 

Periodic Monthly Statement to a broker 

through ABI that lists information filed 

by another broker. 

CBP will allow all entries currently 

eligible for placement on a daily 

statement to be placed on a Periodic 

Daily Statement, with the exception of 

reconciliation entries, NAFTA duty 

deferral entries, entries requiring the 

payment of excise taxes, and entries 

containing Census errors. 

Entries for monthly payment will be 

processed as follows: 

a. As entries are filed with CBP, the 

importer or its designated broker 

schedules them for monthly payment; 

b. Those entries scheduled for 

monthly payment appear on the 

Preliminary Periodic Daily Statement; 

c. The importer or its designated 

broker processes entry summary 

presentation transactions for Periodic 

Daily Statements within 10 workingdays of the date of entry; 

d. After summary information has 

been filed, the scheduled entries appear 

on the Final Periodic Daily Statement; 

e. Entries appearing on the Final 

Periodic Daily Statements and 

scheduled for monthly payment appear 

on the Preliminary Periodic Monthly 

Statement. CBP will generate the 

Preliminary Periodic Monthly Statement 

on the 11th calendar day of the month 

following the month in which the 

merchandise is either entered or 

released, whichever comes first, unless 

the importer or designated broker 

selects an earlier date; 

f. On the 15th of that month, for ACH 

Debit participants, CBP transmits the 

debit authorizations compiled in the 

Preliminary Periodic Monthly Statement 

from the Final Periodic Daily 

Statements to the financial institution, 

and the Preliminary Periodic Monthly 

Statement is marked as paid. The Final 

Periodic Monthly Statement indicating 

receipt of payment is generated by CBP, 

and is transmitted to the importer or its 

designated broker. ACH Debit 

participants must ensure that the money 

amount identified on the Preliminary 

Monthly Statement is, in fact, available 

in their bank account by the 15th of the 

month following the month in which 

the merchandise is either entered or 

released, whichever comes first. 

g. ACH Credit participants must 

ensure that CBP receives payment no 

later than the 15th of that month. CBP 

must receive the settlement for the 

credit, and then the Preliminary 

Periodic Monthly Statement is marked 

as paid. The Final Periodic Monthly 

Statement indicating receipt of payment 

is generated by CBP, and is transmitted 

to the importer or its designated broker. 

For ACH Credit participants, if the 15th 

falls on a weekend or holiday, CBP must 

receive the settlement for the credit by 

the business day directly preceding 

such weekend or holiday. 

h. For both ACH Credit and ACH 

Debit participants, CBP will generate the 

Final Periodic Monthly Statement on 

the night that payment is processed. 

Participants should note that if they 

voluntarily remove an entry from a 

Periodic Daily Statement before 

expiration of the 10-working-day period 

after release, that entry may be placed 

on another Periodic Daily Statement 

falling within the same 10-working-day 

period. If, however, participants remove 

an entry from a Periodic Daily 

Statement or a Preliminary Monthly 

Statement after expiration of the 10-

working-day period after release, then 

that entry must be paid individually, 

and the entry will automatically be the 

subject of a claim for liquidated 

damages for late payment of estimated 

duties. 

Initial ACE Importer Accounts 

This test will be conducted in a 

phased approach, with primary 

deployment scheduled for no earlier 

than April 14, 2004. The initial release 

of the Web-based account revenue 

functionality will involve the forty-one 

initial ACE Importer Accounts and their 

designated brokers. The forty-one initial 

ACE Importer Accounts were created 

based on applications submitted in 

response to the Federal Register notices 

of May 1, 2002 (67 FR 21800) and/or 

June 18, 2002 (67 FR 41572). Any of 

those initial applicants interested in 

participating in this test must submit, 

via email, a statement affirming their 

‘‘intent to participate’’ and a list of any 

designated brokers who will be 

authorized to act on their behalf, no 

later than 60 days from date of 

publication of this notice in the Federal 

Register, unless under exceptional 

circumstances, and with CBP approval, 

an extension is granted. 

ACE Broker Account Application 

Process 

The term ‘‘application’’, as used 

throughout this notice, is defined as a 

statement of intent to participate in the 

Periodic Monthly Statement process. 

Designated brokers wishing to 

participate in this test and make 

Periodic Monthly Statement payment on 

behalf of participating importers must 

first establish an individual ACE Broker 

Account. Designated brokers must 

submit an application to establish an 

ACE Broker Account, via email, by no 

later than 60 days from date of 

publication of this notice in the Federal 

Register, unless under exceptional 

circumstances, and with CBP approval, 

an extension is granted. Each broker 

application for participation in this test 

must include the following information: 

1. Broker Name; 

2. Names of the initial forty-one 

importers participating in the test by 

whom they have been or will be 

designated as the authorized broker;

3. Unique Identification Number (EIN, 

SSN); 

4. Filer Code; 

5. Statement certifying participation 

in C–TPAT; 

6. Statement certifying capability of 

connecting to the Internet; 

7. Statement certifying capability of 

making periodic payment via ACH 

Credit or ACH Debit; and 

8. Statement certifying capability of 

filing entry/entry summary via ABI. 

Expansion of Participation 

Participation in the periodic monthly 

payment process will be expanded in 

the future as funding allows. CBP will 

accept, hold, or reject additional 

Importer Account and Broker Account 

applications throughout the duration of 

the test. CBP will provide notice of 

expansion to the applicants as 

appropriate. New applicants interested 

in participating in this test must submit 

an application, per the Federal Register

notice of May 1, 2002 (67 FR 21800), 

Application Process section, to CBP, 

and will be notified of the status of their 

application (i.e., whether CBP has 

accepted their application for 

participation upon an initial expansion, 

or, is holding their application pending 

a further expansion of the test). CBP will 

notify any applicant not meeting the 

eligibility criteria or providing an 

incomplete application, and allow such 

applicant an opportunity to resubmit its 

application. 

Other Responsibilities of Applicants 

Upon accepting an applicant for 

participation in the Periodic Monthly 

Statement test, CBP may request 

additional information. Participants 

accept a continuing obligation to 

provide CBP with any updates or 

changes to the information originally 

submitted. All data submitted and 

entered into the ACE Portal is subject to 

the Trade Secrets Act (18 U.S.C. 1905) 

and is considered confidential. CBP will 

provide participants with additional 

information about the content of the 

test. 

All participants are required to 

provide a bond rider covering the

5364 Federal Register / Vol. 69, No. 23 / Wednesday, February 4, 2004 / Notices 

periodic payment of estimated duties. 

The language of the bond rider shall 

read as follows:

‘‘By this rider to the Customs Form 301 No. 

lll, executed on byllllas 

principal(s), importer nos. llll, and 

llll, as surety, code no. llll, which 

is effective onllll, the principal(s) and 

surety agree that this bond covers all periodic 

payments of estimated duties and fees no 

later than the 15th day of the month 

following the month in which the 

merchandise is entered or released, 

whichever comes first, as provided in 19 

U.S.C. 1505(a), and all conditions set out in 

section 113.62, Customs Regulations, are 

applicable thereto.’’

Each participant must designate one 

person as the ACE Portal Account 

Owner for the information entered into 

the participant’s ACE Portal account. 

The Account Owner will be responsible 

for safeguarding the ACE Portal account 

information, controlling disclosures of 

that information to authorized persons, 

authorizing user access to the ACE 

Portal account, and ensuring that access 

by authorized persons to the ACE Portal 

account information is strictly 

controlled. The participant will need to 

identify a point of contact for the testing 

of communications and software. 

Participants are further reminded that 

participation in this test is not 

confidential. Lists of approved 

participants will be made available to 

the public. 

Suspension of Regulations 

During the testing of the Periodic 

Monthly Statement process, CBP will 

suspend provisions in Parts 24, 141, 

142, and 143 of the Customs Regulations 

(Title 19 Code of Federal Regulations) 

pertaining to financial, accounting, 

entry procedures, and deposit of 

estimated duties and fees. Absent any 

alternate procedure set forth in the 

above description of the test, the current 

regulations apply. 

Misconduct Under the Test 

If a test participant fails to follow the 

terms and conditions of this test, fails to 

exercise reasonable care in the 

execution of participant obligations, 

fails to abide by applicable laws and 

regulations, fails to deposit duties or 

fees in a timely manner, misuses the 

ACE Portal, engages in any 

unauthorized disclosure or access to the 

ACE Portal, or engages in any activity 

which interferes with the successful 

evaluation of the new technology, the 

participant may be subject to civil and 

criminal penalties, administrative 

sanctions, liquidated damages, and/or 

suspension from this test. 

Suspensions for misconduct will be 

administered by the Executive Director, 

Trade Compliance and Facilitation. A 

notice proposing suspension will be 

provided in writing to the participant. 

Such notice will apprise the participant 

of the facts or conduct warranting 

suspension and will inform the 

participant of the date that the 

suspension will begin. Any decision 

proposing suspension of a participant 

may be appealed in writing to the 

Assistant Commissioner, Office of Field 

Operations within 15 calendar days of 

the notification date. Should the 

participant appeal the notice of 

proposed suspension, the participant 

must address the facts or conduct 

charges contained in the notice and 

state how compliance will be achieved. 

In cases of non-payment, late payment, 

willful misconduct or where public 

health interests or safety is concerned, 

the suspension may be effective 

immediately. 

Test Evaluation Criteria 

To ensure adequate feedback, 

participants are required to participate 

in an evaluation of this test. CBP also 

invites all interested parties to comment 

on the design, conduct and 

implementation of the test at any time 

during the test period. CBP will publish 

the final results in the Federal Register

and the CBP Bulletin as required by 

§ 101.9(b) of the Customs Regulations. 

The following evaluation methods 

and criteria have been suggested: 

1. Baseline measurements to be 

established through data analysis; 

2. Questionnaires from both trade 

participants and CBP addressing such 

issues as: 

• Workload impact (workload shifts/

volume, cycle times, etc.); 

• Cost savings (staff, interest, 

reduction in mailing costs, etc.); 

• Policy and procedure 

accommodation; 

• Trade compliance impact; 

• Problem resolution; 

• System efficiency; 

• Operational efficiency; 

• Other issues identified by the 

participant group.

Dated: January 30, 2004. 

Jayson P. Ahern, 

Assistant Commissioner, Office of Field 

Operations.

[FR Doc. 04–2254 Filed 2–3–04; 8:45 am] 

BILLING CODE 4820–02–P

DEPARTMENT OF HOMELAND 

SECURITY 

Federal Emergency Management 

Agency 

[FEMA–3192–EM] 

Connecticut; Emergency and Related 

Determinations

AGENCY: Federal Emergency 

Management Agency, Emergency 

Preparedness and Response Directorate, 

Department of Homeland Security.

ACTION: Notice.

SUMMARY: This is a notice of the 

Presidential declaration of an 

emergency for the State of Connecticut 

(FEMA–3192–EM), dated January 15, 

2004, and related determinations.

EFFECTIVE DATE: January 15, 2004.

FOR FURTHER INFORMATION CONTACT:

Magda Ruiz, Recovery Division, Federal 

Emergency Management Agency, 

Washington, DC 20472, (202) 646–2705.

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that, in a letter dated 

January 15, 2004, the President declared 

an emergency declaration under the 

authority of the Robert T. Stafford 

Disaster Relief and Emergency 

Assistance Act, 42 U.S.C. 5121–5206 

(Stafford Act), as follows:

I have determined that the impact in 

certain areas of the State of Connecticut, 

resulting from the record/near record snow 

on December 5–7, 2003, is of sufficient 

severity and magnitude to warrant an 

emergency declaration under the Robert T. 

Stafford Disaster Relief and Emergency 

Assistance Act, 42 U.S.C. 5121–5206 

(Stafford Act). I, therefore, declare that such 

an emergency exists in the State of 

Connecticut. 

In order to provide Federal assistance, you 

are hereby authorized to allocate from funds 

available for these purposes, such amounts as 

you find necessary for Federal disaster 

assistance and administrative expenses. 

You are authorized to provide emergency 

protective measures under the Public 

Assistance program to save lives, protect 

public health and safety, and property. Other 

forms of assistance under Title V of the 

Stafford Act may be added at a later date, as 

you deem appropriate. You are further 

authorized to provide this emergency 

assistance in the affected areas for a period 

of 48 hours. You may extend the period of 

assistance, as warranted. This assistance 

excludes regular time costs for sub-grantees’

regular employees. Assistance under this 

emergency is authorized at 75 percent 

Federal funding for eligible costs. 

Further, you are authorized to make 

changes to this declaration to the extent 

allowable under the Stafford Act.

The Federal Emergency Management 

Agency (FEMA) hereby gives notice that 

pursuant to the authority vested in the