Federal Register / Vol. 62, No. 170 / Wednesday, September 3, 1997 / Notices 46551

DEPARTMENT OF THE TREASURY

Customs Service

Announcement of Program Test:

Simplification of In-Transit Truck

Shipments Between Canada and the

U.S.

AGENCY: Customs Service, Treasury.

ACTION: General notice.

SUMMARY: This notice announces a joint

U.S. Customs and Revenue Canada

Customs plan to conduct a pilot test of

simplified procedures regulating the intransit movement of truck shipments

transiting Canada and the United States.

The simplified procedures reduce the

number of processing steps or stops

required of a carrier transiting either

Canada or the United States from four

to two. This notice also invites public

comments concerning any aspect of the

planned pilot test program.

EFFECTIVE DATES: The test of this pilot

program will commence no earlier than

October 8, 1997, and will run for

approximately six months, with

evaluations of the program occurring

periodically. Comments must be

received on or before October 2, 1997.

ADDRESSES: Written comments

regarding this notice should be

addressed to Walter Lechowski, East

Great Lakes Customs Management

Center, Floor 3, Building 10, 4455

Genesee Street, Buffalo, New York

14225–1928.

FOR FURTHER INFORMATION CONTACT:

For U.S. Customs issues: Walter

Lechowski, (716) 626–0400, ext. 203.

For Revenue Canada Customs issues:

Bryan Daly, (613) 954–7081.

SUPPLEMENTARY INFORMATION:

Background

With a long history of working

together, Canada and the United States

have much in common. The Customs

Services in each country operate more

and more in a similar fashion because

they are faced with many of the same

problems and challenges associated

with the rapidly changing business and

economic environment. Trade between

Canada and the United States is a

billion dollar a day proposition.

Tourism provides millions of jobs for

Canadians and Americans. More than

100 million travellers cross our common

border each year. This environment

brings with it the threat of guns,

smuggling, drugs, and crime.

Conversely, our citizens and customers

are therefore demanding better service

and protection at less cost.

In response to these demands, on

February 24, 1995, at a Summit in

Ottawa, Canada, President Clinton and

Canadian Prime Minister Chretien

announced agreement on a Canada/

United States Accord on our Shared

Border for enhancing the management

of the U.S.-Canada border. See, 31

Weekly Comp. Pres. Doc. 305. The

Shared Border Accord sets out common

objectives and specific initiatives to

promote trade, tourism, and travel

between the two countries by reducing

barriers for legitimate importers,

exporters, and travelers, while

strengthening enforcement capabilities

to stop the flow of illegal movement of

goods and reducing costs for both

governments and users. One of the

common objectives of the Shared Border

Accord is to promote international trade

by adopting the best practices of each

country to permit commercial goods and

legitimate travellers to flow easily

between both countries.

To aid in the development of this

objective, Revenue Canada Customs and

U.S. Customs jointly propose a change

to the current procedures concerning

the reporting and control of truck

shipments transiting Canada between

ports in the U.S. and truck shipments

transiting the U.S. between ports in

Canada. The present United States

regulations applicable to in-transit truck

traffic between our two countries are set

forth as subpart E of part 123 of the

Customs Regulations (19 CFR part 123,

subpart E) and require such traffic to

report to a Customs facility a minimum

of four times: once in crossing the

border bound for the other country;

twice while in the other country, i.e.,

once when arriving and once when

departing; and once again when

reentering the country of destination.

The procedural change proposed in this

document for this type of international

traffic will eliminate the first and third

check stops. Accordingly, the reporting

requirements contained at §§ 123.41 (b)

and (c)(2) of the Customs Regulations,

concerning truck shipments transiting

Canada, and 123.42 (b) and (d) of the

Customs Regulations, concerning truck

shipments transiting the U.S., will be

suspended during this pilot test

procedure. This test procedure will

apply along the entire border area

between Canada and the U.S. and will

not otherwise affect the procedures

relating to other forms of shipments,

such as those relating to transportation

and exportation shipments. Significant

financial and safety related benefits for

commercial highway carriers and bridge

operators are anticipated; carriers

should enjoy a reduction in travel time;

and bridge operators should enjoy less

truck congestion at outbound lanes, and

greater driver safety since truck drivers

will no longer need to cross active

traffic lanes to reach Customs offices

from outbound lanes. Compliance

examinations conducted by both

Customs Services will enhance

enforcement, and provide a basis for

formulating threat assessments.

The implementation date for a test of

these new procedures is October 8,

1997. Upon implementation, both

Customs Services will begin an

evaluation period of at least six months

to ensure the effectiveness of the

program and to identify any short falls.

If the program is successful, both

Customs Services will begin the process

to change current regulations to make

the new procedure permanent.

For programs designed to evaluate the

effectiveness of new technology or

operations procedures regarding the

processing of passengers, vessels, or

merchandise, § 101.9(a) of the Customs

Regulations (19 CFR 101.9(a)),

implements the general testing

procedures. This test is established

pursuant to that regulation.

The Present In-Transit Procedure

Stop #1 (exiting the first country)—A

commercial carrier transiting either

Canada or the U.S. is required to stop

at the domestic port of departure to have

its movement authorized by having the

in-transit manifest stamped.

Stop #2 (arriving in the other

country)—Upon arriving in the other

country, the commercial carrier is

required to stop so that foreign Customs

can further process the movement; the

manifest is stamped again and the top

copy is retained by foreign Customs; an

inventory is created to control the

merchandise while in the country.

Stop #3 (exiting the country

transited)—Upon exiting the country

transited, the commercial carrier is

required to stop again so that foreign

Customs can cancel the manifest;

foreign Customs retains the second

(blue) copy of the manifest.

Stop #4 (re-entering the first

country)—Upon re-entry into the first

country, the commercial carrier is

required to stop again so that domestic

Customs can further process the

manifest to facilitate entry of the

merchandise; domestic Customs retains

the third (green) copy of the manifest;

the driver is given the fourth (pink)

copy of the manifest.

For example, in a trip from Michigan

to New York that transits Canada, the

driver for a commercial carrier must

stop at U.S. Customs in Port Huron,

Michigan, to have the manifest stamped
46552 Federal Register / Vol. 62, No. 170 / Wednesday, September 3, 1997 / Notices

to authorize this movement. Then, upon

arrival in Sarnia, Ontario, Canada, the

driver must stop again so that Canadian

Customs can process the manifest by

stamping and removing the top (white)

copy. The driver then proceeds through

Ontario to the port of exit at Queenston,

Ontario. At Queenston, the driver must

stop again so that Canadian Customs

can further process the manifest by

retaining the second (blue) copy. The

driver then proceeds to Lewiston, New

York, and stops again so that U.S.

Customs can finalize the process by

retaining the third (green) copy. The

fourth (pink) copy of the manifest is

returned to the driver. This process

works the same way when commercial

carriers in Canada transit the U.S. for

return to Canada.

The Proposed In-Transit Procedure

Old stop #1 no longer required—

Commercial carriers transiting either

Canada or the U.S. will no longer be

required to stop at the domestic port of

departure to initiate the in-transit

movement. Drivers will proceed directly

to the other country.

New stop #1 (arriving in the other

country)—Arriving in the other country,

the driver stops so that foreign Customs

will review the manifest for accuracy

and verify that the merchandise does

qualify for this movement. The foreign

Customs will confirm the residency of

the driver and, if all is in order, stamp

the manifest, noting seal numbers where

applicable.

Old stop #3 no longer required—

Drivers will now proceed to the port of

entry for the first country for re-entry.

New stop #2 (re-entering the first

country)—Upon re-entry into the first

country, the driver will stop so that

domestic Customs can complete the

processing of the manifest; the second

(blue) copy of the manifest will be

returned to the other country’s Customs.

The Customs Service of the first country

retains the third (green) copy of the

manifest, and the driver is given the

fourth (pink) copy of the manifest.

Thus, in the example above, the

driver departs the U.S. at Port Huron,

Michigan. Arriving at Sarnia, Ontario,

Canada, the driver stops and Canadian

Customs initiates the process, noting

seal numbers where applicable,

stamping and retaining the top (white)

copy of the manifest. The driver then

proceeds through Ontario to the U.S.

port at Lewiston, New York. There, the

driver stops and U.S. Customs finalizes

the process, stamps the manifest and

retains the second (blue) and third

(green) copies; the fourth (pink) copy of

the manifest is returned to the driver.

U.S. Customs will return the second

(blue) copy of the manifest to Customs

in Canada, following local agreement on

transmittal procedures. This process

will work the same way when

commercial carriers in Canada transit

the U.S. for return to Canada. During the

test, U.S. Customs may continue to use

the Customs Form 7512(C) (CF

7512(C)—Destination) as a source for

the ‘‘Transit Manifest No.’’ for carriers

transitting the United States.

Regulatory Provisions Affected

During the In-Transit truck shipment

test, the normal departure reporting

requirements of subpart E of part 123 of

the Customs Regulations (19 CFR part

123, subpart E) will be suspended.

These reporting requirements are

contained at § 123.41 (b) and (c)(2) of

the Customs Regulations, which

concerns truck shipments transiting

Canada, and § 123.42 (b) and (d) of the

Customs Regulations, which concerns

truck shipments transiting the U.S.

Enforcement Provisions

The transportation of restricted or

prohibited merchandise is not permitted

during the pilot test, and participants

will be subject to civil and criminal

penalties and sanctions for any

violations of U.S. Customs laws.

Both Customs agencies will be

conducting statistically valid

compliance examinations on in-transit

carriers, and both Customs agencies will

be formulating risk assessments using

the Compliance Measurement results.

Comments and Evaluation of Test

Customs will review all public

comments received concerning any

aspect of the test program or procedures,

and finalize procedures in light of those

comments. Approximately 120 days

after conclusion of the test, evaluations

of the test will be conducted and final

results will be made available to the

public upon request.

Dated: August 22, 1997.

Robert S. Trotter,

Assistant Commissioner, Office of Field

Operations.

[FR Doc. 97–23255 Filed 9–2–97; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF VETERANS

AFFAIRS

Veterans’ Advisory Committee on

Education, Meeting

The Department of Veterans Affairs

gives notice that a meeting of the

Veterans’ Advisory Committee on

Education, authorized by 38 U.S.C.

3692, will be held on September 18 and

September 19, 1997. The meeting will

take place at the Department of Veterans

Affairs (VA) Central Office, Room 630,

810 Vermont Avenue, NW, Washington,

DC, from 8:30 a.m. to 4:30 p.m. on

Thursday, September 18, 1997, and

from 8:30 a.m. to 1 p.m. on Friday,

September 19. The purpose of the

Committee is to assist in the evaluation

of existing programs and services and

recommend needed new programs and

services. Thursday morning the

Committee will be briefed on the

Government Improvement and Results

Act and will meet with a representative

of the Education Business Process

Reengineering team. In the afternoon,

the Committee will meet Executive

Director of the Commission on

Servicemembers and Veterans

Transition Assistance. Friday morning

the Committee will discuss pertinent

issues and make recommendations to

the Secretary-Designate.

The meeting will be open to the

public. Those wishing to attend should

contact Ms. June Schaeffer, Assistant

Director, Education Policy and Program

Administration (phone 202–273–7187),

prior to September 10, 1997.

Interested persons may attend, appear

before, or file statements with the

Committee. Statements, if in written

form, may be filed before or within 10

days after the meeting. Oral statements

will be heard at 9 a.m., Friday,

September 19, 1997.

Dated: August 25, 1997.

By direction of the Secretary-Designate.

Heyward Bannister,

Committee Management Officer.

[FR Doc. 97–23264 Filed 9–2–97; 8:45 am]

BILLING CODE 8320–01–M