Federal Register / Vol. 62, No. 59 / Thursday, March 27, 1997 / Notices 14731

at the end of a journey with the

development of the risk management

building blocks, but just at the

beginning of the journey, and the

journey will be a long and hard one that

requires significant continued effort

from all parties. A key message was:

‘‘Get comfortable with change’’ and he

provided a rule of thumb called the Rule

of Three Positives. ‘‘When somebody

suggests a change to you, don’t say: ‘No,

that won’t work. That’s not the way I do

it.’ When somebody suggests something

new, stop and think and make three

positive comments about the new idea

before you make one negative

comment.’’ He challenged the

companies to be innovative, creative,

and provide OPS with so many quality

demonstration proposals that their

selection process will be difficult.

Mr. Felder closed the conference by

expressing appreciation to all those that

attended and to all of his staff that made

the public meeting possible. He and

Stacey Gerard then handed out DOT

certificates of appreciation to

individuals outside the government, in

industry, the public, and contractors,

that have worked with the various Risk

Assessment Quality Teams.

[FR Doc. 97–7827 Filed 3–26–97; 8:45 am]

BILLING CODE 4910–60–P

DEPARTMENT OF THE TREASURY

Customs Service

Announcement of National Customs

Automation Program Test of AccountBased Declaration Prototype

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: General notice.

SUMMARY: This notice announces

Customs’ plan to conduct an accountbased declaration prototype (NCAP/P)

under the National Customs Automation

Program (NCAP), and invites eligible

importers to participate. The NCAP/P

will be initially applicable to

merchandise imported by truck through

the ports of Laredo, Texas (Colombia

Bridge only), and Detroit and Port

Huron, Michigan. This notice provides

a description of the test, outlines the

development and evaluation

methodology to be used in the test, sets

forth the eligibility requirements for

participation in the test and invites

public comment on any aspect of the

planned test.

DATES: The account-based declaration

prototype (NCAP/P) will commence no

earlier than August, 1997 and will run

for approximately eighteen months,

with evaluations of the prototype

occurring periodically. All applications

to participate in the test must be

received on or before April 25, 1997.

Public comments on any aspect of the

planned test must be received on or

before April 25, 1997.

ADDRESSES: Applications should be

addressed to Ms. Margaret Fearon at

U.S. Customs Service, 1301 Constitution

Avenue, NW, Room 4139, Washington,

DC 20229.

FOR FURTHER INFORMATION CONTACT: For

inquiries regarding eligibility of specific

importers: Margaret Fearon, Process

Analysis and Requirements Team, at

(202)927–1413. For questions on

reconciliation: Shari McCann, Process

Analysis and Requirements Team, at

(202)927–1106. For questions on other

aspects of the Account-Based

Declaration Prototype: Daniel

Buchanan, Process Analysis and

Requirements Team, at (617)565–6236.

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 (the Mod Act). Subtitle B

of title VI establishes the National

Customs Automation Program (NCAP)—

an automated and electronic system for

the processing of commercial

importations. Section 631 in Subtitle B

of the Act creates sections 411 through

414 of the Tariff Act of 1930 (19 U.S.C.

1411–1414), which 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 101.9(b) of the Customs

Regulations (19 CFR 101.9(b)), concerns

the testing of NCAP components. See,

T.D. 95–21 (60 FR 14211, March 16,

1995).

A key element of Customs efforts to

re-engineer its Trade Compliance

process is a shift in emphasis from the

traditional transaction-based approach

of ensuring compliance with import

laws and regulations to an accountbased approach, which addresses an

importer’s overall compliance through

account management, process reviews,

and audits. One feature of this approach

is a new account-based declaration

process. Customs is also developing a

new commercial processing system, the

Automated Commercial Environment

(ACE), which will be designed to

support the new Trade Compliance

processes. An account-based declaration

prototype (NCAP/P) is being developed

to provide the first operational

demonstration of ACE capabilities for

processing imports, integrating the new

account-based import declaration

process with other aspects of the Trade

Compliance process and with selected

features of NCAP elements of the Mod

Act.

I. Development Methodology

NCAP/P will be monitored by a Joint

Prototype Team consisting of trade

participants, the Customs Offices of

Field Operations and Strategic Trade,

the ACE Development Team, and other

interested government agencies. This

team will meet regularly throughout the

prototype period in Detroit, Laredo and

Washington, DC, to set development

milestones, monitor progress, resolve

issues and evaluate program

effectiveness. The development effort

will be coordinated with other on-going

NCAP prototype programs such as

Remote Location Filing and

Reconciliation, and will be as consistent

as possible with the overall direction of

ACE development.

Potential participants should

recognize that this is a prototype test of

new processes. Data definitions and

values and formats for electronic

transmission of manifest, entry and

commercial data will differ from those

currently used in the Automated

Commercial System (ACS). It is also

important to note that development

efforts undertaken for NCAP/P may not

meet the eventual requirements for

programs as they are finally

implemented in ACE.

The public is invited to comment on

any aspect of the NCAP/P test as

described by this notice.

II. Eligibility Requirements

In order to be eligible for participation

in the NCAP/P, an importer must:

1. Be designated as one of the top 350

U.S. importers in terms of entered value,

while importing no less than 50% of

their merchandise specified as Customs’

Primary Focus Industries, which are as

follows:

(a) Advanced Displays

(b) Agriculture

(c) Auto/Truck Parts

(d) Automobiles

(e) Bearings

(f) Circuit Boards

(g) Fasteners

(h) Footwear

(i) Manufacturing Equipment

(j) Steel Products

(k) Telecommunications

(l) Textiles and Flatgoods

(m) Wearing Apparel
14732 Federal Register / Vol. 62, No. 59 / Thursday, March 27, 1997 / Notices

Importers who are originally selected

to participate will be eligible to

continue to participate throughout the

prototype period, regardless of their

subsequent eligibility in regard to this

requirement.

2. Be scheduled for, participating in,

or, in the application, agree to undergo

and cooperate fully with a Customs

Compliance Assessment;

3. For Southern border NCAP/P

shipments, use carriers who participate

in the Land Border Carrier Initiative

Program (LBCIP). No importer may enter

Southern border cargo transported by

non-participant carriers;

4. Agree in the application to file or

maintain a continuous bond which will

be obligated upon release of each

NCAP/P shipment;

5. Be capable and/or agree to arrange

for timely and accurate electronic

transmission to Customs of all data

required in the NCAP/P declaration

process, including manifest and prerelease shipment data, additional data

required to support physical

examinations of cargo, entry summary

data, detailed commercial data when

requested, and reconciliation data. If an

importer does not transmit electronic

data for a particular shipment, Customs

may exclude that shipment from NCAP/

P processing. Participants who are

unable to reliably provide timely

transmission of required data may be

suspended from further participation in

this prototype; and

6. Be capable and/or agree to arrange

for electronic payment of duties, taxes

and fees. Participants who are unable to

reliably provide timely transmission of

required payments may be suspended

from further participation in this

prototype.

For NCAP/P, the following

restrictions will be placed upon

importers:

1. Importers must enter merchandise

identified in the application as being

from their typical commodities in their

established lines of business and

coming from pre-identified sellers and

shippers;

2. Importers must enter only the

merchandise identified in the

application as being within a range of

pre-identified commodities (classified at

the 6-digit HTS level);

3. Importers must enter merchandise

conveyed on trucks operated by carriers

pre-identified by participants in the

application; and

4. Importers must enter merchandise

for release into the commerce under a

consumption entry at the port of arrival.

5. Importers must enter merchandise

at the port of Laredo, Texas (Colombia

Bridge only), or at Detroit or Port Huron,

Michigan;

Importers may not enter merchandise

in the NCAP/P if it is subject to

antidumping or countervailing duty,

quota, trade preference level or visa

requirements, or pre-release reporting

requirements imposed by other federal

agencies. No prohibited or embargoed

merchandise will be permitted in

prototype shipments. In addition,

importers may not enter NCAP/P

merchandise into a warehouse or

Foreign Trade Zone, or as an in-bond

entry.

Importers are responsible for ensuring

that ineligible merchandise is not

included in NCAP/P shipments, and

that all shipments aboard a conveyance

are eligible for NCAP/P processing.

Customs will exclude ineligible

shipments from NCAP/P processing.

Customs will monitor participating

importers’ compliance with these

restrictions; participants who are unable

to maintain a high level of compliance

may be suspended from further NCAP/

P participation.

III. Application

Importers who wish to participate in

NCAP/P must submit a written

application including the following

information:

1. Importer name;

2. Names and addresses of all their

shippers for NCAP/P;

3. Names and addresses of all their

seller/vendors for NCAP/P, and, for

each seller/vendor identified, a listing of

all the 6-digit HTS numbers in which

the commodities to be imported are

classified;

4. The issuer and number of the

continuous surety bond which will

cover all cargo processed under NCAP/

P procedures;

5. Names and addresses of truck

carriers who will be transporting NCAP/

P shipments across the international

borders;

6. Names and addresses of any

customs brokers who will be filing

declaration data;

7. The approximate total number of

entries per month expected to be

processed at each of the following

locations: Colombia Bridge, Laredo;

Ambassador Bridge, Detroit; Windsor

Tunnel, Detroit; Blue Water Bridge, Port

Huron;

8. Description of anticipated issues

(from the eligible issues listed in

Section VI of this Notice) and

commodities for which the participant

anticipates electing reconciliation;

9. For applicants not already

scheduled for or participating in a

Customs Compliance Assessment, a

statement in which the applicant

indicates agreement to undergo and

cooperate fully with a Customs

Compliance Assessment.

Customs will make admissibility

determinations on NCAP/P shipments

based on any cargo examinations and

the information supplied with the

application, which shall serve as a prefiled entry for NCAP/P purposes.

Any importers who have applied to

become NCAP/P participants will be

notified in writing of their acceptance or

rejection. If an importer’s application for

NCAP/P participation is accepted,

Customs will assign the importer an

NCAP/P Authorization Code. If an

applicant is denied participation based

on deficiencies in the application, the

notification letter will include the

reasons for that denial. Eligible

importers whose initial applications are

rejected may re-apply after correcting

any deficiencies in the initial

application.

Customs expects to initially limit

NCAP/P participation to ten (10)

importers. Preference will be given to

applicants who indicate that they plan

to maintain an average of at least 25

entries per month throughout the

prototype period. Eligible importers

whose initial applications are rejected

may re-apply if Customs subsequently

opens participation to additional

participants. Customs will publish a

notice in the Federal Register if an

expansion of participation is planned.

IV. Maintenance of Account

Information

Following approval by Customs of an

importer’s application, each

participating entry filer must provide

Customs with a range of entry numbers

to be reserved for assignment by

Customs to NCAP/P shipments. Entry

filers may not assign these numbers to

other transactions, either for NCAP/P or

for non-prototype entries.

Throughout the prototype period,

participating importers must provide

Customs with advance notification of

any changes in the information

provided in the application. This

notification will be considered an

amendment to the application. By

notification of the participating

importer, Customs may require that the

participant not use a particular carrier,

shipper, or seller, and not enter

particular merchandise under this

prototype.

V. Remote Location Filing

Some aspects of remote location filing

will be supported in NCAP/P. Under the

remote location filing component,

importers will be able to electronically
Federal Register / Vol. 62, No. 59 / Thursday, March 27, 1997 / Notices 14733

file data with Customs from any place

in the United States regardless of where

the merchandise arrives. To qualify for

remote location filing, a filer must be

able to electronically transmit

information on a shipment by shipment

basis, including entry summary, invoice

information (when required by

Customs), and payment of duties, fees,

and taxes. Use of the remote location

filing component of the prototype is

voluntary, but the same electronic data

transmission requirements will apply

for all prototype participants.

The designation of alternative

locations for cargo examination will not

be supported in NCAP/P. All cargo

examinations will be conducted at the

port where the cargo first arrives in the

United States.

VI. Reconciliation

Currently there are two reconciliation

prototypes in operation or being

implemented, in addition to the NCAP/

P. The reconciliation test of

Antidumping and Countervailing duties

was published on May 10, 1996 (61 FR

21534). The ‘‘manual’’ reconciliation

test, which covers reconciliation of

certain value issues, was published on

February 6, 1997 (62 FR 5673). (In 1995

a notice was published in the Federal

Register concerning a reconciliation

prototype for related party importers

making upward adjustments to the price

of imported merchandise, pursuant to

26 U.S.C. 482. This prototype did not

become operational.)

Importers are reminded that

reasonable care is required for all phases

of reconciliation, including, but not

limited to, submitting information on

the underlying entries, flagging the

underlying entries for reconciliation,

grouping the outstanding issue(s) from

the range of entries onto the

Reconciliation and providing the final

information on the Reconciliation.

Reconciliation permits those elements

of an entry, other than those related to

admissibility, which are undetermined

at the time of entry summary filing, to

be provided at a subsequent time. For

merchandise processed in the NCAP/P,

reconciliation will allow participating

importers to identify the following

issues for which complete information

is unavailable at the time of entry

summary filing:

1. NAFTA

2. Value

3. 9802

4. Classification

Classification issues will be eligible

for reconciliation only when such issues

have been formally established as the

subject of an administrative ruling,

protest, petition, or Court action.

Reconciliations of classification issues

may result in a tariff shift which falls

within the pre-identified range of 6-digit

HTS provisions. Generally, the exercise

of reasonable care should ensure that

reconciliations do not result in a tariff

shift outside the pre-identified range of

6-digit HTS provisions; however, if

special circumstances justify a tariff

shift outside the pre-identified range of

6-digit HTS numbers contained in the

application, a participant must submit

an amended application requesting

permission to continue to enter such

merchandise in this prototype.

Reconciliations of NAFTA issues

must be electronically filed within one

year of the date of importation of the

oldest entry which is flagged for the

Reconciliation. Reconciliation is a

vehicle which an importer can use to

file post-importation refund claims

under 19 U.S.C. 1520(d). Consequently,

a failure to file a NAFTA reconciliation

within one year of the date of

importation will preclude the granting

of NAFTA tariff treatment. As such,

NAFTA reconciliations are subject to

the obligations under 19 CFR part 181,

subpart D. NAFTA reconciliations must

be supported by importer possession of

the documents required under 19 U.S.C.

1520(d) and 19 CFR 181.32(b).

Presentation of the NAFTA Certificate of

Origin to Customs is waived for the

purposes of this prototype test, and the

filer must retain these documents,

which shall be provided to Customs

upon request. Filers are reminded that

interest shall accrue from the date on

which the claim for NAFTA eligibility

is made (the date of the Reconciliation)

to the date of liquidation or

reliquidation of the Reconciliation.

Reconciliations of classification, 9802

and/or value issues must be

electronically filed within 15 months of

the date of entry summary filing for the

oldest entry flagged for the

Reconciliation. In order to gain as much

experience as possible from this

prototype, Customs will work with the

participants to determine whether an

earlier time frame for filing of the

Reconciliation is possible.

Entry summaries may be flagged for

reconciliation until the close of the test

period. It is important to note that,

although the test period has concluded,

Reconciliations may be filed and

liquidated after the closing date of the

test.

Only consumption entries may be

filed in the NCAP/P system. Entries

subject to reconciliation will be flagged

at the header level with an electronic

indicator specifying the issue(s) to be

reconciled.

The flagging of an entry for

reconciliation will serve as the Notice of

Intent to File a Reconciliation (‘‘Notice

of Intent’’), and will permit the

liquidation of an entry as to all issues

other than those which are flagged for

reconciliation. By filing a Notice of

Intent, the importer voluntarily requests

and accepts that each issue flagged for

reconciliation, and the liability for each

issue, is separated from the entry,

remains open and is transferred to the

Reconciliation. The Notice of Intent

opens an obligation for the importer to

file the Reconciliation. This obligation

also applies to NAFTA reconciliations

even if the participant finally concludes

it cannot file a valid 520(d) claim, in

which instance, the NAFTA

reconciliation would be filed as no

change.

Importers who choose to participate

in this prototype will recognize that the

liquidation of the underlying entries

pertains only to those issues not

identified by the importer on the Notice

of Intent. Upon liquidation of the entry,

any decision by Customs entering into

that liquidation, e.g., classification, may

be protested pursuant to 19 U.S.C. 1514.

When the outstanding information, e.g.,

value as determined by the actual costs,

is later furnished on the Reconciliation,

the Reconciliation will be liquidated

upon review by Customs. The

liquidation of the Reconciliation may be

protested but the protest may only

pertain to issues contained in the

liquidated Reconciliation, i.e., the

protest may not re-visit issues

previously liquidated in the entry.

Separate Bulletin Notices of Liquidation

will be posted for the liquidation of the

underlying entries and for the

liquidation of the Reconciliation.

Under the statutory mandate of 19

U.S.C. 1484, the importer is responsible

for using reasonable care in declaring at

entry the proper value, classification

and rate of duty applicable to imported

merchandise. Inherent in the concept of

reconciliation is the fact that, because

certain issues are kept open pending

filing of the Reconciliation, the

information regarding these issues and

the resulting liability for the duties,

taxes and fees previously asserted by the

importer may change when the

Reconciliation is filed. Therefore,

should any drawback claim or

Certificate of Delivery for drawback be

filed on import entries which are

flagged for reconciliation, Customs will

pay accelerated drawback only after the

Reconciliation is filed. Upon filing of

the Reconciliation, the importer is

responsible for indicating whether any

underlying entry could be subject to

drawback. In the case of a drawback
14734 Federal Register / Vol. 62, No. 59 / Thursday, March 27, 1997 / Notices

claim and a reconciliation refund

against the same underlying entries, the

importer is responsible for ensuring that

refunds in excess of the duties paid are

not filed with Customs and for

substantiating how the separate refund

requests apply to different merchandise.

A Reconciliation may cover any

combination of value, 9802 and

classification. Should the issues of

value, 9802 and classification be flagged

for reconciliation on one entry, one

Reconciliation covering all three issues

will be filed. NAFTA Reconciliations

will not be combined with other issues,

because of NAFTA’s unique nature,

different due dates, and so that Customs

may expedite the processing of such

refunds. Issues will always be

reconciled in their entirety, as opposed

to partial Reconciliations. Each

Reconciliation should cover no fewer

than ten entries. Reconciliation is to be

used to group entries together for a

common, outstanding issue.

A Reconciliation is treated as a legal

entry for purposes of liquidation,

reliquidation and protest. For purposes

of this prototype, each Reconciliation

must be covered by one surety, i.e., two

sureties cannot cover the same

Reconciliation. The continuous bond

obligated on the underlying entries will

be used to cover the Reconciliation.

Payments due from the participant as

a result of the Reconciliation will be

reflected on the participant’s monthly

statement. Should the Reconciliation

result in a refund due the participant,

the refund will also appear on the

monthly statement and will be used to

offset existing or future payment

obligations of the participant. Customs

will calculate interest upon liquidation

of the Reconciliation, and reflect such

interest on the monthly statement.

The Reconciliation header will

contain the Reconciliation number, the

date of Reconciliation filing, the issue(s)

being reconciled and the comments. In

the comment field, the filer may provide

pertinent information, to explain, for

example, that the specific value issue

within this Reconciliation is an assist

declaration.

Following this summary information,

there will be two parts of the

Reconciliation. The first part will

include a list of underlying entry

numbers, entry summary dates, and the

total duty, taxes and fees (reported by

class code) which should have been

paid for each of the underlying entries

had the complete information been

available to the importer at the time of

filing of the entry summary. This part of

the Reconciliation will also have a field

to indicate entries being closed out on

the Reconciliation which did not

change.

Part two of the Reconciliation will list

all of the lines on the flagged entries

which changed as a result of the

reconciliation. Data elements for each

line include entry number, SPI if

applicable, HTS, country of origin,

quantity if applicable, total value and

the total duties, taxes and fees (reported

by class code). The ‘‘total’’ figures will

represent that which was reported on

the underlying entry plus the change

pursuant to the Reconciliation. In

coordination with the Census Bureau,

Customs is analyzing the assignment of

a parameter, below which the reporting

of reconciled lines (Part 2) would not be

required.

The reporting of line items is an

interim step being taken for the

purposes of gaining experience in the

short term. While the Reconciliation

will capture line item details for this

prototype, Customs is working toward

capturing the reconciled information at

an aggregate level for future prototypes,

which will incorporate compensating

controls as a means to ensure that

financial safeguards are in place.

The following will serve as an

example of the probable structure for

the Reconciliation:

Reconciliation #557, Date: 2/1/97, Issue: NAFTA

Part 1:

Entry Summary

date

Total dutiesTotal

taxes

Total fees

[499]

No

change

123 ............................................................................................................................ 10/11/96 $25 ................ $2.89 ................

234 ............................................................................................................................ 11/11/96 ................ ................ ................ X

345 ............................................................................................................................ 12/11/96 $200 ................ $6.10 ................

Part 2:

Entry SPI/HTS Country

of origin Qty Totalvalue

Total

duty

Total

taxes

Total

fees

[499]

123 .................................................................................................................... 2222 ..... MX ....... 0 $0 $0 ............ $0

123 .................................................................................................................... MX2222 MX ....... 700 $1000 $0 ............ $1.90

123 .................................................................................................................... 3333 ..... MX ....... 500 $250 $25 ............ $0.52

123 .................................................................................................................... MX3333 MX ....... 500 $250 $0 ............ $0.47

345 .................................................................................................................... 2222 ..... MX ....... 750 $1500 $150 ............ $3.15

345 .................................................................................................................... MX2222 MX ....... 250 $500 $0 ............ $0.95

345 .................................................................................................................... 3333 ..... MX ....... 200 $500 $50 ............ $1.05

345 .................................................................................................................... MX3333 MX ....... 200 $500 $0 ............ $0.95

VII. Account-Based Import Declaration

Process

The account-based declaration

process is a fully electronic process that

will, for NCAP/P participant importers,

who must file consumption entries

under NCAP/P:

1. Base cargo examination decisions

primarily on pre-established account/

entry information, minimizing the

transaction data that needs to be

transmitted to Customs prior to release

of cargo. Cargo examinations will also

be performed on the basis of selectivity

criteria and for random compliance

measurement sampling;

2. Permit reporting of detailed entry

summary data on a monthly cycle, and

3. Provide for payment of duties, taxes

and fees on a monthly statement cycle

employing semi-monthly estimated

payments.

While various automatic notifications

and back-up procedures will also be

supported, the basic declaration flow for

NCAP/P will be as follows:
Federal Register / Vol. 62, No. 59 / Thursday, March 27, 1997 / Notices 14735

1. The application will serve as a prefiled entry for NCAP/P purposes.

2. Prior to arrival of cargo at the

border, the carrier issuing the manifest

or an authorized agent will

electronically transmit to Customs basic

manifest data: coded identification of

the carrier; trip details; identification of

drivers, the conveyance and other

equipment; and an identifying number

and the laden quantity for each

shipment on the conveyance.

3. Also prior to arrival of the cargo at

the border, data pertaining to each

individual shipment must be

electronically transmitted to Customs.

This shipment data will include

information generally found on freight

bills, plus the NCAP/P Authorization

Code assigned to the participating

importer by Customs, and identification

of the entry filer and the seller and

buyer of the merchandise. This

shipment data may be transmitted by

the carrier issuing the manifest, an

authorized agent acting on behalf of the

carrier issuing the manifest, or the entry

filer (i.e., either the importer of record

or the importer of record’s customs

broker.)

4. Customs will assign an entry

number to each shipment from the range

of entry numbers provided in advance

by each participating entry filer for that

purpose. When a truck arrives at the

border, shipments for which no physical

examination of cargo is required will be

released without additional data or

documentation. For any shipment

aboard that truck selected by Customs

for physical examination of cargo,

Customs will issue to the entry filer

designated in the shipment data an

electronic request for additional

information. This request may be

satisfied by transmission of either

partial or complete entry summary and

commercial data, as defined by

Customs, plus packing data. The

commercial data required for cargo

examination, whether partial or

complete, will be at the detailed item

level. Cargo will not be examined until

this data is received by Customs.

5. The date of entry will be the date

on which merchandise is released by

Customs. The release will obligate the

continuous bond identified in the

prototype application of the importer

whose NCAP/P Authorization Code is

present in the shipment data.

6. For each shipment released during

a calendar month, the entry filer must

electronically transmit complete entry

summary data to Customs on or before

the filing deadline for that month. The

filing deadline for each month will be

the 10th calendar day of the following

month, or, if the 10th falls on a weekend

or holiday, the next business day. Entry

summary data transmitted prior to this

deadline will be considered provisional

and may be replaced by the entry filer

anytime before the deadline. All

summaries filed on or before the

deadline will be considered as filed on

the deadline date. Any issues that may

be the subject of a future reconciliation

must be identified in the entry summary

data.

7. For any entry summary selected by

Customs for data review, unless

complete commercial data was

previously transmitted to support a

cargo examination, Customs will issue

to the entry filer an electronic request

for complete commercial data. This

request must be satisfied by electronic

transmission of a complete set of

commercial data, as defined by

Customs, plus packing data if

specifically requested.

8. By virtue of 19 CFR 101.9, the

Customs Service may impose

requirements different than those

specified in the Customs Regulations;

but only to the extent that such different

requirements do not affect the collection

of revenue. Consequently, in order to

permit a different procedure to test the

periodic deposit of estimated duties

without adversely affecting the

collection of revenue, the participant

must agree to and abide by the following

procedures. Each participating importer

account will make semi-monthly

preliminary estimated payments

through an electronic medium.

Preliminary estimated payments will be

initiated electronically using ACH credit

on the 15th and the last day of the

month. If the 15th or the last day of the

month falls on a weekend or holiday,

the payment must be initiated the next

business day. Under the prototype,

special electronic payment procedures

will be utilized. The preliminary

estimated payments will be based upon

the following percentages: (a) The

payment initiated on the 15th will be

75% of the estimated amount due on all

releases for the 1–15th of the month, (b)

the payment initiated on the last day of

the month will be 57% of the estimated

amount due on all releases from the

16th to the last day of the month. These

percentages will be reviewed and may

have to be adjusted to maintain revenue

neutrality. Payment for the remaining

balance will be initiated electronically

on the 15th of the following month, and

it is this date which Customs and the

participants agree will serve as the date

of actual deposit of estimated duties and

fees for purposes of assessing interest

under 19 U.S.C. 1505. Customs will

issue two statements each month, one

before and one after the monthly filing

deadline. Each statement will list each

importer account’s NCAP/P activity at

all locations for the reporting month,

and will indicate whether entry

summary data has been filed and, if it

has, amounts due.

9. Within the period of time

prescribed for each issue, the entry filer

must transmit an electronic

Reconciliation to resolve each issue

identified for reconciliation in entry

summary data. In general, one

Reconciliation will resolve multiple

issues for each of the underlying entries.

Cargo will be released and duties,

taxes and fees assessed on the basis of

data transmitted to the NCAP/P system.

For shipments processed in NCAP/P,

participants will not be required to

provide parallel filing of ACS data or

paper documents.

VIII. Suspension From Prototype

If a participant attempts to enter or

submit data relating to prohibited

merchandise, merchandise subject to

quota or antidumping or countervailing

duties, or other non-eligible

merchandise; or if a participant files

non-consumption entries; files

erroneous or untimely data; fails to

provide requested invoice data or

sufficient supporting documentation for

Reconciliations; makes late or

inadequate payments; fails to exercise

reasonable care in the execution of

participant obligations; or otherwise

fails to follow the procedures outlined

herein, and applicable laws and

regulations, then the participant may be

suspended from the prototype, and/or

be subject to penalties.

Any decision suspending

participation may be appealed to the

Trade Compliance Process Owner,

within 15 days of the decision date.

IX. Regulatory Provisions Suspended

Certain provisions of parts 24, 111,

141, 142, 143 and 159 of the Customs

Regulations (19 CFR parts 24, 111, 141,

142, 143 and 159) will be suspended

during this prototype test to allow for

monthly filing of entry summary data,

periodic payment of duties, taxes and

fees, reconciliation for NAFTA,

classification, value and 9802 issues,

liquidation, billing and remote filing by

Customs brokers in ports where they

currently do not hold permits.

Absent any specified alternate

procedure, the current regulations

apply.

X. Prototype Evaluation

Once the importers are selected for

NCAP/P, the Joint Prototype Team will,

during the initial six months of the test

period, evaluate the effectiveness of the
14736 Federal Register / Vol. 62, No. 59 / Thursday, March 27, 1997 / Notices

automation involved. Subsequent

reviews will additionally consist of

evaluating the data received from the

importers, along with the internal and

external process operations of the

NCAP/P.

Additional importers may become

eligible during the prototype period,

using the eligibility requirements cited

above, thereby increasing the number of

companies involved in the NCAP/P. The

evaluation of the prototype as it pertains

to these importers may occur separately

from that which is done on the original

participants. Regardless, the intention of

the evaluations is to enhance

operational procedures and to develop

the detailed data requirements that are

needed for NCAP.

Note that the fact of participation in

the NCAP/P is not confidential

information. Lists of participants will be

made available to the public by means

of the Customs Electronic Bulletin

Board and the Customs Administrative

Message System, and upon written

request. We stress that all interested

parties are invited to comment on the

design, conduct, and evaluation of

NCAP/P at any time during prototype.

Upon conclusion of the prototype the

final results will be published in the

Federal Register and the Customs

Bulletin as required by § 101.9(b),

Customs Regulations and reported to

Congress.

Dated: March 21, 1997.

Audrey Adams,

Acting Assistant Commissioner, Office of

Field Operations.

[FR Doc. 97–7733 Filed 3–26–97; 8:45 am]

BILLING CODE 4820–02–P

Bureau of the Public Debt

Proposed Collection: Comment

Request

ACTION: Notice and request for

comments.

SUMMARY: The Department of the

Treasury, as part of its continuing effort

to reduce paperwork and respondent

burden, invites the general public and

other Federal agencies to take this

opportunity to comment on proposed

and/or continuing information

collections, as required by the

Paperwork Reduction Act of 1995,

Public Law 104–13 (44 U.S.C.

3506(c)(2)(A). Currently the Bureau of

the Public Debt within the Department

of the Treasury is soliciting comments

concerning the Application For Issue Of

United States Mortgage Guaranty

Insurance Company Tax And Loss

Bonds.

DATES: Written comments should be

received on or before May 27, 1997, to

be assured of consideration.

ADDRESSES: Direct all written comments

to Bureau of the Public Debt, Vicki S.

Thorpe, 200 Third Street, Parkersburg,

WV 26106–1328.

FOR FURTHER INFORMATION CONTACT:

Requests for additional information or

copies of the form and instructions

should be directed to Vicki S. Thorpe,

Bureau of the Public Debt, 200 Third

Street, Parkersburg, WV 26106–1328,

(304) 480–6553.

SUPPLEMENTARY INFORMATION:

Title: Application For Issue Of United

States Mortgage Guaranty Insurance

Company Tax and Loss Bonds.

Form Number: PD F 3871.

Abstract: The information is used to

establish and maintain Tax and Loss

Bond Accounts.

Current Actions: The current

collection is used to establish Tax and

Loss Bond Accounts. The additional

information will allow for Direct

Deposit (ACH) for payments.

Type of Review: New.

Affected Public: Business or other forprofit.

Estimated Number of Respondents:

80.

Estimated Time Per Respondent: 15

minutes.

Estimated Total Annual Burden

Hours: 20.

Request for Comments

Comments submitted in response to

this notice will be summarized and/or

included in the request for OMB

approval. All comments will become a

matter of public record. 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 start-up costs and costs of operation,

maintenance, and purchase of services

to provide information.

Dated: March 20, 1997.

Vicki S. Thorpe,

Manager, Graphics, Printing and Records

Branch.

[FR Doc. 97–7772 Filed 3–26–97; 8:45 am]

BILLING CODE 4810–39–P