77598 Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

Announcement of the National 

Customs Automation Program Test 

Concerning the Electronic Issuance of 

Demands on Surety 

AGENCY: U.S. Customs and Border 

Protection, Department of Homeland 

Security. 

ACTION: General notice. 

SUMMARY: This document announces 

that U.S. Customs and Border Protection 

(CBP) will conduct a National Customs 

Automation Program test regarding the 

electronic issuance of demands on 

surety for certain kinds of claims, the 

‘‘Electronic Issuance of Demands on 

Surety’’ (EIDS) test. Test participation is 

limited to sureties that receive the 

‘‘Notice of Penalty or Liquidated 

Damages Incurred and Demand for 

Payment’’ (CBP Form 5955A) for claims 

for liquidated damages or penalties. The 

EIDS test will not include any other 

purpose or type of claim for which the 

CBP Form 5955A is used, such as a 

demand for duties, taxes, fees, or 

charges other than liquidated damages 

or penalties. 

DATES: The EIDS test will commence on 

December 13, 2023, and will continue 

indefinitely subject to any extension, 

modification, or termination as 

announced in the Federal Register. CBP 

will begin to accept requests from 

sureties to participate in the test on 

December 13, 2023, and CBP will 

continue to accept such requests until 

the EIDS test concludes. Public 

comments on the test are invited and 

may be submitted to the address set 

forth below at any time during the test 

period. 

ADDRESSES: Comments and questions 

concerning this notice, or any aspect of 

the test, may be submitted at any time 

before or during the test period via 

email to Trade Remedy Law 

Enforcement Directorate, U.S. Customs 

and Border Protection, at EIDS@

cbp.dhs.gov, with the subject line 

reading ‘‘Comments/Questions on EIDS 

Test.’’ 

FOR FURTHER INFORMATION CONTACT: For 

policy-related questions, contact Sandra 

Barbosa, Supervisory International 

Trade Analyst, Civil Penalties Branch, 

Civil Enforcement Division, Trade 

Remedy Law Enforcement Directorate, 

Office of Trade, U.S. Customs and 

Border Protection, at (202) 853–6026 or 

via email at EIDS@cbp.dhs.gov, with a 

subject line reading ‘‘Electronic 

Issuance of Demands on Surety Test.’’ 

For technical questions related to 

SEACATS, please contact Daniel P. 

Travi, SEACATS Program Manager, 

Border Enforcement Management 

Systems, Office of Information 

Technology, U.S. Customs and Border 

Protection, at (571) 375–5707. For all 

other questions related to SEACATS, 

please contact Stephen Haigler, Chief, 

SEACATS/Training Branch, Office of 

Field Operations, U.S. Customs and 

Border Protection, at (202) 316–3898 or 

via email at EIDS@cbp.dhs.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. The National Customs Automation 

Program 

The National Customs Automation 

Program (NCAP) was established by 

Subtitle B of Title VI—Customs 

Modernization in the North American 

Free Trade Agreement Implementation 

Act (Customs Modernization Act) (Pub. 

L. 103–182, 107 Stat. 2057, 2170, 

December 8, 1993) (19 U.S.C. 1411– 

1414). As a result of the implementation 

of NCAP, the thrust of customs 

modernization was focused on informed 

trade compliance and the development 

of the Automated Commercial 

Environment (ACE), an automated and 

electronic system for commercial trade 

processing, intended to streamline 

business processes, facilitate growth in 

trade, ensure cargo security, and foster 

participation in global commerce, while 

facilitating compliance with U.S. laws 

and regulations and reducing costs for 

U.S. Customs and Border Protection 

(CBP) and all of its communities of 

interest. The ability to meet these 

objectives depends on successfully 

modernizing CBP’s business functions 

and the information technology that 

supports those functions, including 

modernization of the administrative 

enforcement process (which includes 

the assessment of penalties, liquidated 

damages, and seizures). CBP’s 

modernization efforts are accomplished 

through phased releases of ACE 

component functionality, which update 

the system and add new functionality. 

Sections 411 through 414 of the Tariff 

Act of 1930 (19 U.S.C. 1411–1414), as 

amended, 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 (section 414). 

Section 411(a)(2)(E) provides for an 

electronic penalty process as a planned 

component of the NCAP. Section 

411(d)(2)(A) provides for the periodic 

review of data elements collected in 

order to update the standard set of data 

elements, as necessary. CBP has begun 

development of an electronic liquidated 

damages and penalty process, and this 

notice announces the first test of a 

feature of the new process. The 

electronic liquidated damages and 

penalty process is intended to enhance, 

but not necessarily replace, the current 

paper process. 

B. Authorization for the Test 

The Customs Modernization Act 

provides the Commissioner of CBP with 

the authority to conduct test programs 

or procedures designed to evaluate 

planned components of the NCAP. The 

test described in this notice is 

authorized pursuant to the Customs 

Modernization Act and section 101.9(b) 

of title 19 of the Code of Federal 

Regulations (19 CFR 101.9(b)), which 

provides for the testing of NCAP 

programs or procedures. As provided in 

19 CFR 101.9(b), for purposes of 

conducting an NCAP test, the 

Commissioner of CBP may impose 

requirements different from those 

specified in the CBP regulations. 

C. Current Penalty/Liquidated Damages 

Claim Issuance Procedures 

Consistent with 19 CFR 162.31(a), 

CBP must provide written notice of any 

fine or penalty incurred to each party 

that the facts of record indicate has an 

interest in the claim. Pursuant to 19 CFR 

172.1(a), when there is a failure to meet 

the conditions of any bond posted with 

CBP or when a violation occurs which 

results in assessment of a penalty that 

is secured by a CBP bond, CBP must 

notify the principal, in writing, of any 

liability for that penalty or liquidated 

damages incurred and make a demand 

for payment. CBP also must notify the 

surety on the bond of any such liability, 

in writing, concurrent with notice to the 

principal. Claims for liquidated 

damages and penalties, including 

penalties secured by bonds, are issued 

by the Fines, Penalties and Forfeitures 

(FPF) Office in the port having 

jurisdiction over the claim on the CBP 

Form 5955A. 

If the principal on the bond fails to 

file a petition for relief, or fails to 

comply in the time prescribed with a 

decision to mitigate a penalty or to 

cancel a claim for liquidated damages 

issued with respect to a petition for 

relief, the FPF Office having jurisdiction 

over the claim will mail a demand for 

payment to the surety. The surety will 

have 60 days from the date of the 

demand to file a petition for relief. See 

19 CFR 172.4. 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices 77599 

1The Seized Asset and Case Tracking System 

(SEACATS) is the system CBP uses to track seized 

and forfeited property, from case initiation to final 

resolution. CBP has retired the full name usage, and 

now the acronym ‘‘SEACATS’’ is a standalone term 

for the system. 

2 Inquiries regarding the 3-digit surety code 

should be directed to the CBP Office of Finance, 

Revenue Division at BondQuestions@cbp.dhs.gov. 

CBP created and maintains an 

electronic system entitled SEACATS 1

which is internal to the federal 

government, and functions as a case 

management system, capturing the 

relevant information for processing and 

adjudication of the legal outcomes of all 

fines, penalties, and claims for 

liquidated damages, among other things. 

The system allows CBP officers, import 

specialists, entry specialists, and other 

designated employees to input pertinent 

penalty and liquidated damages claim 

violation data (violator name, address, 

legal citations, facts pertinent to the 

violation, etc.) for the purpose of 

producing a completed CBP Form 

5955A for mailing. The System of 

Records Notice (SORN) for SEACATS 

was published in the Federal Register 

on December 19, 2008 (73 FR 77764). 

The SORN established SEACATS as the 

system of records for persons found 

violating laws and regulations enforced 

by the Department of Homeland 

Security (DHS)/CBP. 

II. Description of the Electronic 

Issuance of Demands on Surety Test 

As part of its ongoing efforts to 

modernize the liquidated damages and 

penalty process, CBP engaged in regular 

outreach with internal and external 

stakeholders, including, but not limited 

to, FPF Officers, sureties, and trade 

associations. Through this outreach, 

CBP determined that the issuance of the 

CBP Form 5955A is time consuming and 

may not result in timely action on 

liquidated damages or penalties claims 

by sureties. As a result of these 

discussions, CBP developed the 

Electronic Issuance of Demands on 

Surety (EIDS) test, which will enable 

CBP to test the transmission of the CBP 

Form 5955A to the surety electronically 

by email, at the time the document is 

mailed to the principal on the bond, for 

claims for liquidated damages or 

penalties. Participating sureties will 

continue to receive a paper copy of the 

CBP Form 5955A by mail. The EIDS test 

will not include any other purpose or 

type of claim for which the CBP Form 

5955A is used, such as a demand for 

duties, taxes, fees, or charges other than 

liquidated damages or penalties. 

The EIDS test is voluntary, and 

sureties who wish to participate must 

comply with all the conditions set forth 

below. Test participants must provide 

an email address to which CBP will 

send CBP Form 5955A notices. The 

email address provided will be 

maintained and stored in SEACATS. 

Participating sureties must inform CBP 

immediately of any changes to the email 

address used to receive the notices. 

Participating sureties will receive a 

daily email from CBP. The email will 

contain a zip file listing up to 50 

electronic notices of claims for 

liquidated damages or penalties secured 

by the receiving surety’s bonds. Each 

zip file will be password protected, with 

the password being sent as a separate 

email, in tandem with the daily email 

containing the zip file. A surety could 

receive multiple emails in a day if the 

number of demands against its bonds for 

that day exceeds 50. Each email will 

indicate the total number of demands 

issued to the surety that day, which, if 

more than 50 demands are issued to a 

surety on a single day, could exceed the 

number of demands attached to an 

individual email. The relevant FPF 

Office will be copied on each email that 

includes notices that fall within its 

jurisdiction. Participating sureties will 

also receive paper copies of the Form 

5955A. For participating sureties, the 

date the email with zip file and 

password is sent will be the date of 

demand for purposes of establishing the 

petition response period of 60 days as 

required by 19 CFR 172.4. 

Participation in the test will provide 

test participants with the opportunity to 

test and give feedback to CBP on the 

EIDS test design and scope. 

Participation may also enable test 

participants to determine whether 

receiving the CBP Form 5955A 

electronically allows them to better 

track and reference demands on their 

bonds, to communicate more effectively 

with their clients and CBP, and to better 

understand when their bonds become 

obligated. Consequently, participation 

may allow sureties to better manage and 

validate their bond issuance and bond 

obligation processes. 

III. Eligibility Requirements, 

Application Process, and Acceptance 

Into the Test 

CBP is opening this test to sureties 

that receive the CBP Form 5955A. 

Participating sureties must have the 

ability to receive zip files at the email 

address provided and to open zip files 

and PDF documents. Every surety must 

have a 3-digit surety code to be eligible 

to participate in the test.2

Sureties interested in participating in 

the EIDS test should submit an email to 

the Civil Enforcement Division at EIDS@

cbp.dhs.gov stating their interest and 

ability to meet the eligibility criteria 

described in this notice. The email will 

serve as an electronic signature of intent 

to participate and must also include the 

email address to which the electronic 

notices will be sent, a point of contact 

name, and telephone number. 

CBP may, in its discretion, decline to 

permit an interested surety from 

participating in the EIDS test, to 

include, for example, if CBP determines 

that a surety has neglected or refused to 

pay a valid demand made on the surety 

company’s bond or otherwise has failed 

to honor an obligation on that bond or 

if CBP determines that any other 

unacceptable compliance risk exists. If 

CBP declines an interested surety’s 

request to participate in the EIDS test, 

CBP will provide notice and an 

opportunity to respond, which will 

follow the procedures detailed below for 

proposed suspensions from test 

participation. 

CBP will notify applicants by email if 

they are selected to participate in the 

test. Applicants will also be notified 

once CBP has verified their ability to 

receive email notifications that they are 

permitted to participate fully in the test. 

Test participants will receive technical, 

operational, and policy guidance 

through all stages of test participation. 

IV. Misconduct Under the Test 

Misconduct under the test may 

include failure to abide by the rules and 

procedures established under this test, 

failure to exercise reasonable care in the 

execution of participant obligations, or 

the failure to comply with any 

applicable laws or regulations that have 

not been waived. If a test participant 

fails to abide by the rules, procedures, 

or terms and conditions of the EIDS test 

as provided in this notice, and all other 

applicable Federal Register notices, or 

fails to comply with any applicable laws 

and regulations, then the participant 

may be suspended from participating in 

this test. Additionally, and in 

accordance with the procedures below, 

CBP may suspend a test participant 

based on a determination that an 

unacceptable compliance risk exists. 

If the Director, Civil Enforcement 

Division (CED), Trade Remedy Law 

Enforcement Directorate, Office of 

Trade, finds that there is a basis to 

suspend a participant from participating 

in the test, then CBP will provide a 

written notice, via email, proposing the 

suspension with a description of the 

facts or conduct supporting the 

proposal. The test participant will have 

the opportunity to reply to the Director’s 

email within ten (10) business days of 

the date of the written notice. When 


khammond on DSKJM1Z7X2PROD with NOTICES
77600 Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices 

responding to a proposed suspension 

from the test, the participant should 

address the facts or conduct charges 

contained in the notice and state how 

compliance has been or will be 

achieved. 

If no timely response is received, the 

proposed suspension becomes the final 

decision of CBP as of the date that the 

response period expires. If a timely 

response is received, the Director, CED, 

will issue a final decision in writing, by 

email, on the proposed suspension 

within thirty (30) business days after 

receiving the response from the test 

participant, unless such time is 

extended for good cause. Suspension of 

a test participant’s privileges will take 

place either when the proposal becomes 

final, if the participant fails to timely 

respond to the proposed suspension, or 

upon the final adverse decision issued 

by the Director after the participant has 

responded. The decision to suspend a 

surety from participation in the test may 

be appealed to the Executive Assistant 

Commissioner, Office of Trade, within 

fifteen (15) days of the date of CBP’s 

final adverse decision, by submitting an 

email entitled, ‘‘Appeal—EIDS 

Suspension’’, to the Executive Assistant 

Commissioner, CBP, at EIDS@

cbp.dhs.gov, and attaching a copy of the 

decision being appealed. The surety 

filing the appeal must set forth its 

reasons for appealing the Director, 

CED’s final decision. The Executive 

Assistant Commissioner’s decision is 

not subject to further review. 

V. Test Evaluation Criteria 

All interested parties are invited to 

comment on any aspect of this test at 

any time. To ensure adequate feedback, 

participants are required to take part in 

evaluation of the test. CBP needs 

comments and feedback on all aspects 

of this test, including the design, 

conduct and implementation of the test, 

to determine whether to modify, alter, 

expand, limit, continue, end, or 

implement this program. Comments 

should be submitted via email to EIDS@

cbp.dhs.gov, with the subject line 

reading ‘‘Comments/Questions on EIDS 

Test.’’ 

The EIDS test is intended to evaluate 

the feasibility of sending via email the 

CBP Form 5955A to sureties. CBP will 

evaluate whether the test: (1) improves 

CBP’s ability to quickly, safely and 

securely transmit the CBP Form 5955A 

to the surety; (2) enables sureties to 

better track claims posted against their 

bonds; (3) enables sureties to timely 

respond to claims; (4) obtains buy-in 

from stakeholders (including FPF 

Officers, sureties, and trade 

associations); and, (5) facilitates legal 

compliance with the laws, regulations, 

policies, and instructions enforced by 

CBP. At the conclusion of the test, an 

evaluation will be conducted to assess 

the efficacy of the information received 

throughout the course of the test. The 

final results of the evaluation will be 

published in the Federal Register and 

the Customs Bulletin as required by 

section 101.9(b)(2) of the CBP 

regulations (19 CFR 101.9(b)(2)). 

Should the EIDS test be successful 

and ultimately be codified under the 

CBP regulations, CBP anticipates that 

this data would greatly enhance CBP’s 

penalty and liquidated damages 

notification process, reduce risk, and 

improve compliance operations. CBP 

would also anticipate greater visibility 

into bond claims, which will support 

better decision-making during and after 

the case resolution process. 

VI. Confidentiality 

Data submitted and entered into 

SEACATS may include confidential 

commercial or financial information 

which may be protected under the 

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

Freedom of Information Act (5 U.S.C. 

552), and the Privacy Act (5 U.S.C. 

552a). The electronic notice of demand 

on surety will only contain that 

information that is currently provided 

on the paper CBP Form 5955A. 

However, as stated in previous test 

notices, participation in this test or any 

of the previous NCAP tests is not 

confidential and, therefore, upon receipt 

of a written Freedom of Information Act 

request, the name(s) of an approved 

participant(s) will be disclosed by CBP 

in accordance with 5 U.S.C. 552. 

John P. Leonard, 

Acting Executive Assistant Commissioner, 

Office of Trade. 

[FR Doc. 2023–24907 Filed 11–9–23; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Agency Information Collection 

Activities: Science and Technology 

Collection of Qualitative Feedback 

AGENCY: S&T, DHS. 

ACTION: 30-Day notice and request for 

comments; Science and Technology 

Collection of Qualitative Feedback, 

DHS–2023–0039. 

SUMMARY: The Department of Homeland 

Security, S&T/CIO, DHS will submit the 

following information collection request 

(ICR) to the Office of Management and 

Budget (OMB) for review and clearance 

in accordance with the Paperwork 

Reduction Act of 1995. DHS previously 

published this information collection 

request (ICR) in the Federal Register on 

November 1, 2023, for a 60-day public 

comment period. One comment was 

received by DHS. The purpose of this 

notice is to allow additional 30-days for 

public comments. 

DATES: Comments are encouraged and 

will be accepted until December 13, 

2023. This process is conducted in 

accordance with 5 CFR 1320.10. 

ADDRESSES: Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to www.reginfo.gov/public/do/ 

PRAMain. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. 

The Office of Management and Budget 

is particularly interested in comments 

which: 

1. Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; 

2. Evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

3. Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

4. Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submissions 

of responses. 

FOR FURTHER INFORMATION CONTACT: If 

additional information is required 

contact: DHS/S&T/OES/CIO/Business 

Management Office: Heather Erhuanga, 

Heather.Erhuanga@hq.dhs.gov or 202– 

941–8731 (not a toll-free number). 

SUPPLEMENTARY INFORMATION: This 

notice relies on the authority of the 

Paperwork Reduction Act of 1995; 44 

U.S.C. 3501 et seq., chapter 35, as 

amended. An ICR is an application to 

OIRA seeking the approval, extension, 

or renewal of a S&T collection of 

information (collection). The ICR 

contains information describing the 

collection’s purpose, the collection’s 

likely burden on the affected public, an 

explanation of the necessity of the 

collection, and other important 


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