[Federal Register Volume 65, Number 191 (Monday, October 2, 2000)]
[Notices]
[Pages 58840-58843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-25182]


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DEPARTMENT OF THE TREASURY

Customs Service


Announcement of a National Customs Automation Program Test 
Regarding Submission to Customs of Electronic Air Cargo Manifest 
Information

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: General notice.

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SUMMARY: This notice announces Customs plan to conduct a prototype test 
program under the National Customs Automation Program that will permit 
qualified air carriers to submit electronic air cargo manifest 
information to Customs prior to arrival of the aircraft in the United 
States, and will eliminate the requirement that a Customs Form 7509 
(Air Cargo Manifest) be submitted upon arrival. Electronic filing of 
air cargo manifest information will permit Customs to electronically 
review the data prior to arrival of the carrier in the U.S, facilitate 
cargo control and processing, and provide for the electronic release of 
cargo. This notice solicits public participation in the test program in 
accordance with the eligibility and procedural requirements set forth 
in this document, and invites comments concerning any aspect of the 
planned test.

EFFECTIVE DATES: The test will commence no sooner than January 2, 2001. 
Comments concerning the eligibility standards, selection criteria, 
procedural requirements, or information submission requirements must be 
received on or before November 1, 2000.

ADDRESSES: Written comments (preferably in triplicate) may be submitted 
to and inspected at the Regulations Branch, Office of Regulations and 
Rulings, U.S. Customs Service, 1300 Pennsylvania Avenue, NW., 3rd 
Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: For operational or policy matters: 
Sandra Hasegawa, Program Officer, (202) 927-0983; John Considine, 
Chief, Manifest & Conveyance, (202) 927-0042. For systems or automation 
matters: Assigned Client Representative or Michael Mohr, Client 
Representative, (703) 921-7072. For legal matters: Larry L. Burton, 
Attorney Advisor (202) 927-1287.

SUPPLEMENTARY INFORMATION:

Background

    Title VI of the North American Free Trade Agreement Implementation 
Act (the Act), Public Law 103-182, 107 Stat. 2057 (December 8, 1993), 
contains provisions pertaining to Customs Modernization (107 Stat. 
2170). Subtitle B of 3 title VI establishes the National Customs 
Automation Program (NCAP), an automated and electronic system for the 
processing of commercial importations. Section 631 of the Act creates 
sections 411 through 414 of the Tariff Act of 1930 (19 USC 1411 through 
1414), which define and list the existing and planned components of the 
NCAP (section 411), establish program goals (section 412), provide for 
the implementation and evaluation of the program (section 413), and 
provide for

[[Page 58841]]

the remote location filing of entries (section 414). Requirements for 
conducting an approved test program or procedure designed to evaluate 
planned components of the NCAP are set forth in Sec. 101.9 of the 
Customs Regulations (19 CFR 101.9).

I. Description of Test Program

Air Cargo Manifest

    Section 122.42(c) of the Customs Regulations (19 CFR 122.42(c)), 
requires that the aircraft commander of an aircraft arriving in the 
United States from a foreign area, or his agent, must deliver upon 
arrival any required forms to the Customs officer at the place of 
entry. Section 122.48 of the Customs Regulations (19 CFR 122.48) 
provides that an air cargo manifest is required for all cargo on board 
a flight arriving in the United States from a foreign area, except for 
cargo arriving from and departing for a foreign country on the same 
through flight. Section 122.48(c) provides that the air cargo manifest 
must be on the Customs Form (CF) 7509.

Electronic Submission of Air Cargo Manifest Information

    In an attempt to facilitate cargo processing and release, for the 
past several years Customs has accepted electronic air cargo manifest 
information from importing carriers. In such circumstances, however, 
submission of the paper CF 7509 was still required upon the carrier's 
arrival in the United States, even though an electronic submission of 
manifest data had already been submitted to Customs.
    In a more comprehensive attempt to facilitate the control, 
processing and release of air cargo, Customs will permit, via this test 
program, participating Air Automated Manifest System (AAMS) air 
carriers who meet the electronic and procedural requirements set forth 
in this document to electronically file air cargo manifest information 
with Customs prior to the aircraft's arrival in the United States and 
will eliminate the requirement that a CF 7509 be submitted. For the 
duration of this test period, Sec. 122.48(c) will be suspended for test 
program participants.
    It is anticipated that the test program will run for approximately 
one year. In the event, however, that Customs determines that a longer 
test program period is required, the test program will continue to run, 
uninterrupted, until it is concluded by notice in the Federal Register.

Customs Objectives

    Customs objectives in conducting this test program are:
    1. To work with the trade community, government agencies, and other 
parties impacted by this program in the implementation and evaluation 
of the test program; and,
    2. To gain experience from the test program relating to the design 
of automated systems, the development of operational procedures that 
facilitate cargo release (i.e., communication, cargo movement), and 
whether participants can meet the test program requirements of 
transmitting timely, complete and accurate manifest data.

Regulatory Provision Suspended

    As noted above, Sec. 122.48(c), pertaining to the presentation of 
an air cargo manifest on the CF 7509, will be suspended during this 
test. Participants generally will not be required to submit a CF 7509 
to Customs or have a copy on board the aircraft, but must be able to 
provide Customs with required information electronically or otherwise 
on demand. Participation in this test program does not preclude 
compliance with the applicable requirements of other government 
agencies as they relate to cargo manifest information. A CF 7507 
General Declaration is still required and must be presented to Customs 
upon arrival at the port of entry. The CF 7507 is also required for 
flights proceeding in-land on a permit-to-proceed.

II. Test Program Eligibility Criteria

    To be eligible for participation in the test program, an air 
carrier must demonstrate the following:
    1. A carrier must be a qualified AAMS carrier. A qualified AAMS 
carrier has been tested and certified by Customs to possess the 
technical capability to transmit and receive all types of AAMS data. 
Technical requirements for AAMS carriers are set forth in the Customs 
publication entitled ``Customs Automated Manifest Interface 
Requirements--``Air'' (CAMIR). Those carriers that are not currently 
AAMS qualified, and wish to be, should submit a written request to 
become an AAMS participant to the Customs Client Representative Branch 
closest to the applicant's operational location. A list of Customs 
Client Representative offices may be obtained from United States 
Customs Service, Office of Information and Technology, Client 
Representative Branch, 7501 Boston Boulevard, Springfield, VA 22153, 
(703) 921-7500;
    2. A qualified AAMS carrier must have completed a period of dual 
mode testing at a designated AAMS-automated Customs port. Dual mode 
testing requires that a carrier submit both a CF 7509 and an electronic 
transmission of air cargo manifest data to the designated AAMS-
automated Customs port for a specified period of time. A carrier is 
required to participate in dual-mode testing at a designated AAMS-
automated Customs port for a period generally not to exceed 45 days, 
although the time may be extended at the discretion of the port 
director; and
    3. A carrier must possess the ability to electronically transmit to 
Customs complete air cargo manifest information, and any other required 
information, for all their flights arriving at the designated AAMS-
automated Customs port, including in-bond cargo imported by a non-
automated air carrier.

III. Test Program Application and Selection Process

Application Process

    An air carrier that satisfies the eligibility criteria set forth in 
this document may apply to be a participant in this test program. 
Customs will accept applications from eligible air carriers for the 
duration of the test program. A written request to be considered for 
participation in the test program should be sent to the air carrier's 
designated Customs Client Representative (see above). The request must 
designate the AAMS-automated Customs port(s) to which the electronic 
air cargo manifest information will be transmitted, indicate the means 
by which the electronic transmissions will be sent (i.e. direct line, 
Service Center, etc.), designate a point of contact and telephone 
number within the applicant's organization, and be signed by an 
authorized official. Upon review of the application, Customs will 
notify the applicant in writing as to whether the request to be a test 
program participant has been approved or denied. If denied, Customs 
will issue written notice to the applicant that sets forth the basis 
for the denial and informs the applicant of the right to reapply after 
any deficiencies identified in the notice of denial have been 
corrected.

Participant Selection

    Any importing air carrier that applies for permission to 
participate in the test program, and meets the eligibility requirements 
described above, will be given due consideration by Customs. Selection 
will be based on the extent of an applicant's electronic interface 
capabilities and the ability to meet the technical user requirements 
identified in the CAMIR as well as the requirements set forth in this 
notice.
    Participation in this test program will not be considered 
confidential

[[Page 58842]]

information, and the identity of participants will be made available to 
the public upon written request.

IV. Test Program Procedures

    Program procedures will be closely coordinated with all 
participating and affected parties. The following procedures apply to 
all participant air carriers and will be in effect for the duration of 
the test program:
    1. All carriers must transmit full air cargo manifest data to AAMS 
at least one (1) hour prior to aircraft arrival. If this condition 
cannot be met, a paper manifest must be made available before cargo may 
be moved.
    2. Copies of air waybills must be presented to Customs, on demand, 
for enforcement purposes.
    3. All carriers must transmit specified quantities for cargo at the 
lowest deliverable level.
    4. Full manifest data must be submitted to Customs by all air 
carriers and is to include all house air waybill information, including 
shipper/consignee information, and complete address data as shown on 
the paper air waybill.
    5. Consolidations with only one house air waybill must be 
transmitted as a master air waybill along with a house air waybill. The 
carrier may not elect to send this information in as a simple air 
waybill for expediency purposes.
    6. House air waybill numbers must be accurate. If an alpha prefix 
appears on the house air waybill as part of the air waybill number, 
this information must be included in the electronic transmission. The 
carrier may not elect to eliminate the alpha prefix from house air 
waybills when sending the electronic information.
    7. If cargo is being transferred to an automated deconsolidator, 
the carrier may nominate the deconsolidator to complete the manifest 
information. If the cargo is being transferred to a non-automated 
deconsolidator, the carrier will be held responsible for the 
transmission of full house air waybill information.
    8. Carriers must have electronic authorization from Customs to 
release cargo. If systemic problems preclude an electronic 
authorization for release, a paper request for release is required. A 
signed Customs Form 3461 alone will not be an authorization for release 
for the purposes of this test program.
    9. Cargo may not be transferred without an authorization for 
transfer from Customs via the electronic system. Blanket permits to 
transfer will not be allowed during the test period for test 
participants.
    10. If for any reason the electronic system becomes inoperative or 
Customs is unable to receive electronic manifest information, parties 
will be required to submit a paper air cargo manifest on Customs Form 
7509 or any other Headquarters pre-approved document. If for any reason 
the Air Automated Manifest System, Cargo Selectivity, or other entry 
related automated system is inoperative and electronic cargo release 
and selectivity is not possible, a Customs port director, after a 2 
hour waiting period, will implement procedures to allow for the non-
electronic release of cargo until such time as electronic systems are 
again operative. The port director will ensure that any of the 
appropriate information on entries released under these manual 
procedures is properly entered into the electronic system as soon as 
possible.

V. Suspension From the Test Program and Administrative Review

Suspension, Penalties and Liquidated Damages

    A test program participant's failure to comply with any of the 
procedural requirements or operational standards set forth in this 
document, or failure to adhere to all applicable laws and regulations, 
may result in the temporary or permanent suspension of the air carrier 
from the test program, and may subject the air carrier to penalties, 
liquidated damages, or other administrative sanctions.

Written Notice

    Except in instances of willfulness on the part of the test program 
participant, or where public health, interest or safety is at issue, 
the port director at the designated AAMS-automated Customs port will 
issue a written notice of proposed suspension to the test program 
participant. The notice will inform the air carrier of the following:
    The basis for the proposed action and all applicable terms and 
conditions;
    2. The right to seek administrative review of the action, pursuant 
to the terms set forth in this document;
    3. That any action will be held in abeyance for a period of 10 
calendar days from the date of the notice or, if the test program 
participant timely seeks administrative review of the matter pursuant 
to the terms set forth in this document, pending conclusion of Customs 
review of the matter at the port level; and
    4. That failure to seek administrative review of this matter 
pursuant to the terms set forth in this document will constitute 
acceptance of the terms and conditions set forth in the notice, will 
preclude any further administrative review of the matter, and the 
proposed suspension will automatically go into effect at midnight of 
the 10th calendar day from the date of the notice.
    Where there is willfulness on the part of the test program 
participant, or where public health, interest or safety is concerned, 
suspension from the test program may go into effect immediately upon 
the issuance, by the port director to the test program participant, of 
an electronic notice setting forth the basis for the immediate 
suspension and any other related information. Within 5 calendar days 
from the date the electronic notice was issued, Customs will issue a 
written notice of immediate suspension to the test program participant. 
A notice of immediate action, whether in an electronic or paper format, 
will provide the same type of information as contained in a notice of 
proposed suspension. An immediate suspension will remain in effect 
pending conclusion of any administrative review of the action by 
Customs.

Administrative Review

    To seek administrative review of a suspension from the test 
program, the air carrier must submit documentation to the port director 
of the Customs port that issued the suspension notice within 10 
calendar days from the date the notice of proposed suspension or the 
electronic notice of immediate suspension was issued. The documentation 
must establish, to the satisfaction of Customs, that the alleged 
deficiencies which led to the action did not occur or have been 
corrected.
    The port director will review the documentation and issue a written 
final notice to the test program participant within 30 calendar days 
from the date the documentation was received by Customs, unless this 
time period is extended upon due notice. The final notice will either 
impose a suspension, effective upon the date of the final notice, or 
provide notice that no suspension will be imposed.
    In the case of an air carrier seeking administrative review of an 
immediate suspension, the same documentation requirements set forth 
above apply. The port director will review the documentation and issue 
a written final notice to the test program participant within 30 
calendar days from the date the documentation was received by Customs, 
unless this time period is extended upon due notice. The final notice 
will inform the test program participant that either the suspension has 
been affirmed, or modified in its terms and conditions, or the 
suspension

[[Page 58843]]

has been revoked, effective upon the date of the final notice.
    If a suspension is imposed, the suspended test program participant 
may seek a second level of administrative review and appeal the final 
notice of suspension by submitting documentation to the Assistant 
Commissioner, Office of Field Operations, within 10 calendar days from 
the date of the final notice.
    The Assistant Commissioner, Office of Field Operations, or his 
designee, will issue to the suspended test program participant a 
written decision within 30 calendar days from the date the 
documentation was received, unless this time period is extended upon 
due notice. The decision will affirm, modify, or revoke the final 
notice of suspension and will set forth the basis for the 
determination, as well as all other applicable terms and conditions.

VI. Test Evaluation Criteria

    Once participants are selected, Customs and the participants will 
meet publicly or in an electronic forum to review the comments received 
concerning the methodology of the test program or procedures, complete 
procedures in light of those comments, form problem-solving teams, and 
establish baseline measures and evaluation methods and criteria. 
Evaluations of the test program will be conducted and the final results 
will be published in the Federal Register and Customs Bulletin, as 
required by section 101.9(b), Customs Regulations.
    The following evaluation methods and criteria have been suggested:
    1. Establish baseline measurements through questionnaires to the 
trade and Customs personnel; and
    2. Analyze statistical data obtained through the AAMS.
    Preliminary evaluation criteria for Customs and other government 
agencies include workload impact (workload shifts, cycle time, etc.), 
policy and procedural accommodation, and trade compliance impact. 
Possible criteria for the trade participants include cost benefits and 
operational efficiency.

    Dated: September 27, 2000.
Bonni G. Tischler,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 00-25182 Filed 9-29-00; 8:45 am]
BILLING CODE 4820-02-P