30288 Federal Register / Vol. 63, No. 106 /Wednesday, June 3, 1998 / Notices

Department, Iron Horse Park, North

Billerica, MA 01862.

If the verified notice contains false or

misleading information, the exemption

is void ab initio.

B&M has filed an environmental

report which addresses the effects of the

abandonment and discontinuance, if

any, on the environment and historic

resources. The Section of Environmental

Analysis (SEA) will issue an

environmental assessment (EA) by June

8, 1998. Interested persons may obtain

a copy of the EA by writing to SEA

(Room 500, Surface Transportation

Board, Washington, DC 20423) or by

calling SEA, at (202) 565–1545.

Comments on environmental and

historic preservation matters must be

filed within 15 days after the EA

becomes available to the public.

Environmental, historic preservation,

public use, or trail use/rail banking

conditions will be imposed, where

appropriate, in a subsequent decision.

Pursuant to the provisions of 49 CFR

1152.29(e)(2), B&M shall file a notice of

consummation with the Board to signify

that it has exercised the authority

granted and fully abandoned the line. If

consummation has not been effected by

B&M’s filing of a notice of

consummation by June 3, 1999, and

there are no legal or regulatory barriers

to consummation, the authority to

abandon will automatically expire.

Board decisions and notices are

available on our website at

‘‘WWW.STB.DOT.GOV.’’

Decided: May 22, 1998.

By the Board, David M. Konschnik,

Director, Office of Proceedings.

Vernon A. Williams,

Secretary.

[FR Doc. 98–14268 Filed 6–2–98; 8:45 am]

BILLING CODE 4915–00–P

DEPARTMENT OF THE TREASURY

Customs Service

Announcement of a General Test

Regarding the International Trade

Prototype

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: General Notice.

SUMMARY: This notice announces

Customs’ plan to conduct what is

expected to be a series of prototypes

collectively called the International

Trade Prototype (ITP). This notice

invites public comments concerning any

aspect of the planned prototype, informs

interested members of the public of the

eligibility requirements for voluntary

participation in the first phase of the

first prototype called International

Trade Prototype 1 (ITP1) and outlines

the development and evaluation

methodology to be used in the test. To

participate in the first phase of ITP1, the

necessary information, as outlined in

this notice, must be filed with Customs

and approval granted. It is important to

note that resources expended by the

trade and Customs on these prototypes

may not carry forward to the final

program.

This notice supersedes the

information on the International Trade

Prototype published by the International

Trade Data System Project Office of the

Treasury Department in the Federal

Register on December 31, 1997.

DATES: The first phase of ITP1 will

commence no earlier than June 8, 1998

and will run for approximately six

months with evaluations of the

prototype occurring periodically.

Comments concerning any aspect of this

phase must be received on or before July

6, 1998. Future phases, prototypes, or

participant expansion of this prototype

will be announced in a Federal Register

notice.

ADDRESSES: Written comments

regarding this notice, and information

submitted to be considered for

voluntary participation in this first

phase of ITP1 should be addressed to

the U.S. Customs Service, International

Trade Prototype Team, Attn: Linda

LeBaron Grasley, 4455 Genesee Street,

Bldg. 10, Room #342, Buffalo, New York

14225. Note that all comments received

by U.S. Customs will be part of the

public record.

FOR FURTHER INFORMATION CONTACT: For

any prototype or participation questions

please contact Daniel Buchanan, U.S.

Customs Service at (617) 565–6236, or

Linda LeBaron Grasley, U.S. Customs

Service at (716) 626–0400 x 204, or

Kevin Franklin, United Kingdom, Her

Majesty’s Custom and Excise at 011 44

171 865 4728 in London, England.

SUPPLEMENTARY INFORMATION:

Background

The ITP has evolved from an

international drive to streamline global

trade. In both business and government,

around the world, processes are being

automated and reengineered. Trade and

information are moving faster and more

effectively all the time. Many

international companies share critical

data with business and trading partners

around the world, and they expect

government to maintain the leadership

position it has taken in developing

domestic electronic trade systems by

moving into the global arena.

The ITP concept has been under

consideration by both the U.S. Customs

Service (USCS) and Her Majesty’s

Custom and Excise (HMCE) since 1996.

The nucleus of this program is an

extension of ideas developed in

partnership with the trade community

by various members of the TransAtlantic Team, which is primarily

comprised of USCS and HMCE officers.

The ITP concept also addresses issues

raised by international traders, the

World Customs Organization (WCO),

the United Nations Conference on Trade

and Development (UNCTAD), G–7 and

other international organizations. The

concept is intended to simplify and

standardize customs processes and

procedures in order to facilitate trade

while maintaining effective and efficient

control. Information on an ITP

prototype contained in an information

collection notice published in the

Federal Register (63 FR 68353 on

December 31, 1997) is superseded by

this notice.

In the United States Customs Service

Annual Plan for Fiscal Year 1998, USCS

states a number of objectives associated

with increased cooperation and support

of international trade automation. The

plan’s objectives include increased

cooperation with other customs

administrations at the multilateral,

regional and bilateral levels. The plan

further states that USCS will work to

promote standardized customs

processing through implementation of

‘‘Customs Guidelines’’ and

establishment of best practices. This is

to be accomplished by working with the

WCO and the international trade

community to promote the development

of international instruments to reduce

customs procedural barriers to trade and

to secure greater standardization,

transparency, simplification and

automation worldwide.

The developing relationship between

the USCS and HMCE leads us to

prototype this concept. The USCS and

HMCE have agreed that the ITP will be

delivered in a series of prototypes. Each

prototype will be evaluated against

predetermined success criteria.

Subsequent ITP prototypes will build on

lessons learned in ITP1 and the need for

enabling legislation will be evaluated.

It is expected that ITP1 will be rolled

out in three phases. USCS and HMCE

agree that the first phase of ITP1 will

commence no earlier than June 8, 1998.

Additional phases are being planned

and future prototypes are also under

consideration.

The USCS will be testing the ITP in

accordance with Section 101.9 of the

Customs Regulations (19 CFR 101.9),

which provides for the testing to
Federal Register / Vol. 63, No. 106 /Wednesday, June 3, 1998 / Notices 30289

evaluate the planned components of the

National Customs Automation Program

(NCAP). By virtue of 19 CFR 101.9,

USCS 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,

public health, safety, or law

enforcement.

Description of Proposed International

Trade Prototype

The Mission/Vision of the

International Trade Prototype is a

standard customs regime that will

facilitate the movement of goods

internationally. This regime will operate

within an electronic environment in

which there will be automated systems

using data which conform to

internationally agreed standards. The

amount of information supplied by

business to customs will be minimized

to the extent possible, consistent with

the customs administrations’

performance of their missions.

The goal of the project is to allow

trade participants to supply their

information only once (seamless

transaction, i.e., exports equals imports)

and will be restricted to the information

that is essential to allow customs to

effect shipment and clearance of the

goods.

More specifically, our Mission/Vision

is to deliver an automated system that

utilizes internationally-accepted

standard message formats and codes,

streamlines data transmission,

simplifies and facilitates global trade,

and assists governments world-wide in

enforcing their laws.

I. Goals, Principles and Scope of ITP1

The following goals, principles and

scope support USCS and HMCE mission

and strategic plans and will guide

development of the first ITP prototype.

Customs Administration Cooperation.

The ITP will improve international

trade practices that are best addressed

through cooperative efforts between

customs administrations, international

traders, and international trade

organizations.

International Trade Transactions.

This prototype will work toward the

development of harmonized and

simplified messages and procedures,

based upon business practices, for

transactions that support import, export,

and transportation without the need for

redundant entry or transmission of data.

Commercial and Enforcement

Compliance Focus. Each country will

continue to use its own targeting and

compliance measurement approaches

and procedures to ensure that the legal

requirements of all participating

countries are met.

Account-Based Approach. Both

countries will work with prototype

accounts, primarily importers and

exporters, to better understand their

systems, procedures, and levels of

compliance, with mutual assistance

between designated Customs Account

Managers.

Automation and Information Sharing.

Automation will allow the sharing of

information to enable the collection and

exchange of standardized information

mutually agreed to by both governments

in a secured electronic environment.

Reduce the Burden on the Trade. This

prototype will work toward

streamlining government reporting

requirements placed upon the trade

community.

The scope of ITP1 will include:

—Air and sea cargo shipments.

—Cargo release, statistical and fiscal

reporting, and supporting

information.

—Merchandise restrictions and

limitations agreed between customs

administrations.

—Sharing of agreed standard data using

various technological means accepted

by both administrations.

—UN/EDIFACT message syntax

between governments.

—Unique Consignment Reference

Numbers (UCRN) to be used by the

USCS and HMCE in separate formats.

—The HMCE conducting ITP1 in an

operational environment.

—The USCS phasing ITP1 into an

operational environment.

—Both one-step and two-step export

reporting being implemented.

—A two-step import process in which

data provided to the export customs

administration is forwarded to the

import customs administration and

used to effect import cargo release.

—Acceptance of all participating traders

being subject to compliance review.

—Risk assessment, anti-smuggling, and

commercial compliance checks

continuing to be applied to goods

being moved under these simplified

procedures.

—Development of agreed joint

operational procedures to manage

traders’ accounts.

II. Development Methodology

ITP will be monitored by a Joint

Prototype Team consisting of trade

participants, the USCS Offices of Field

Operations, Strategic Trade, Information

and Technology, International Affairs

and other interested government

agencies. This team will meet regularly

throughout the prototype period in

appropriate locations to set

development milestones, monitor

progress, resolve issues and evaluate

program effectiveness. The development

effort will be coordinated with other ongoing National Customs Automation

Program (NCAP) prototype programs

such as the NCAP Prototype, Remote

Location Filing and Reconciliation, and

will be as consistent as possible with

the overall direction of USCS

development of the Automated

Commercial Environment (ACE).

Potential participants should

recognize that this is a prototype test of

new processes. Data definitions, values

and formats for electronic transmission

of data will differ from those currently

used in the Automated Export System

(AES) and the Automated Commercial

System (ACS). It is also important to

note that development efforts

undertaken for ITP may not meet the

eventual requirements for programs as

they are finally implemented.

The public is invited to comment on

any aspect of the ITP test as described

by this notice. Public comments

received concerning the methodology of

the test program or procedures will be

reviewed by USCS and HMCE.

III. Account-Based Export/Import

Declaration Process

In the United States, ITP1 will

become operational under a three-phase

implementation.

The general scope of each phase is as

follows:

(1) ITP1.1 will be a parallel (nonoperational) test of pre-departure export

notification;

(2) ITP1.2 will be operational for predeparture export notification and import

cargo release; and

(3) ITP1.3 will be the full

implementation of ITP1 and will be

operational for full export declaration

and import entry summary acceptance

and processing.

The full implementation of ITP1 will

test an account-based declaration

process that integrates preliminary

export and preliminary import

reporting. For shipments processed

under ITP1 procedures, export

notification and import cargo

examination decisions will be based

primarily on pre-established account/

entry information, minimizing the

transaction data that needs to be

transmitted to customs authorities prior

to release of cargo. Cargo examinations

will also be performed on the basis of

selectivity criteria and for random

compliance measurement sampling.

Complete export declaration data may

be transmitted following exportation.

Detailed import entry summary data

will be reported on a monthly cycle, and
30290 Federal Register / Vol. 63, No. 106 /Wednesday, June 3, 1998 / Notices

payment of duties, taxes and fees will be

based on a monthly statement cycle

employing semi-monthly estimated

payments. The full developed accountbased declaration process will be a fully

electronic process; no paper documents

will be required or accepted at that time.

When ITP1 is fully implemented,

export reporting, import cargo release

and assessment of duties, taxes and fees

will be based on data transmitted to the

ITP1 system. For shipments processed

in the fully implemented ITP1 system,

participants will not be required to

provide parallel filing of ACS or AES

data or of paper documents.

In order for a shipment to be eligible

for processing under ITP1 procedures,

both the exporter and the importer of

the shipment must be ITP1 participants

in their respective countries. While

various automatic notifications and

back-up procedures will also be

supported, the basic declaration flow for

U.S. exports in the full implementation

of ITP1 will be as follows:

1. The exporter’s application,

including any amendments, will be

used to assess the suitability of

proposed export shipments for ITP

processing.

2. The exporter or an authorized agent

will transmit a pre-departure export

notification message to USCS for each

ITP shipment exported from the U.S.

The data elements of the pre-departure

export notification message are listed

under ‘‘DESCRIPTION OF PROPOSED

FIRST PHASE OF ITP1,’’ below.

3. ITP1 shipments exported from the

U.S. will be subject to physical

inspections and compliance reviews by

various federal agencies.

4. Upon departure of the exporting

conveyance, USCS will forward the data

from the pre-departure export

notification message to HMCE.

5. HMCE will use the forwarded data

from the pre-departure export

notification message to effect import

cargo release in the United Kingdom

(U.K.)

6. The U.S. exporter or an authorized

agent will transmit a complete export

declaration to USCS prior to a specified

periodic filing deadline. These data may

be transmitted at any time following the

pre-departure export notification and

may be transmitted following departure

of the exporting conveyance. Data from

the complete export declaration will not

be forwarded to HMCE.

The basic declaration flow for U.S.

imports in the full implementation of

ITP1 will be as follows. Note that no

data transmitted by participants to

USCS with regard to importations into

the U.S. will be forwarded to HMCE.

1. The U.K. exporter or an authorized

agent will transmit a pre-departure

export notification message to HMCE for

each ITP shipment exported from the

U.K. These data will consist of the same

data elements as a U.S. pre-departure

export notification message. These data

elements are listed under

‘‘DESCRIPTION OF PROPOSED FIRST

PHASE OF ITP1,’’ below.

2. Upon departure of the exporting

conveyance, HMCE will forward the

data from the pre-departure export

notification message to USCS.

3. The importer’s application,

including any amendments, will serve

as a pre-filed entry for each ITP1

shipment. USCS will assign an ITP

Authorization Code to each participant

who imports into the U.S.A.

participating importer or an authorized

broker will electronically transmit data

to USCS to provide timely and accurate

identification of any changes to the

original application, e.g., changes in a

participant’s ITP business partners and

merchandise imported under the

prototype.

4. USCS will assign a filer and entry

number to each shipment. The entry

filer, i.e., importer or authorized agents

(brokers) designated by the importer, for

ITP shipments at the port of unloading

will be assigned to the entry. The entry

number will be assigned from the range

of entry numbers provided in advance

by each designated entry filer for that

purpose. When an importing

conveyance arrives, ITP shipments for

which no physical examination of cargo

is required will be released without

additional data or documentation. For

any shipment selected by USCS for

physical examination of cargo, USCS

will issue an electronic request for

additional information to the entry filer.

This request may be satisfied by

transmission of partial entry summary

and commercial data, as defined by

USCS, plus packing data. The

commercial data required for cargo

examination will be at the detailed item

level. Cargo will not be examined until

these data are received by USCS.

5. The date of entry will be the date,

after the merchandise arrives, the

merchandise is released into the

commerce of the United States. The

release will obligate a continuous bond

identified for that purpose by the

participant importer whose ITP

Authorization Code is present in the

pre-departure export notification data

forwarded to USCS by HMCE.

6. For each shipment released during

a calendar month, the entry filer must

electronically transmit complete entry

summary data to USCS 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.

7. For any entry summary selected by

USCS for data review, USCS will issue

an electronic request for complete

commercial data to the entry filer. This

request must be satisfied by electronic

transmission of a complete set of

commercial data, as defined by USCS,

plus packing data if specifically

requested.

8. In order to permit a different

procedure to test the periodic deposit of

estimated duties without adversely

affecting the collection of revenue,

participants who import into the U.S.

must abide by the following procedures.

Each participating importer 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, and (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 USCS 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. USCS will issue two

statements each month, one before and

one after the monthly filing deadline.

Each statement will list each importer’s

ITP activity at all locations for the

reporting month, and will indicate

whether entry summary data has been

filed and, if it has, estimated duties and

fees.
Federal Register / Vol. 63, No. 106 /Wednesday, June 3, 1998 / Notices 30291

IV. Remote Location Filing

Remote location filing allows

participants to electronically file data

for the entry of merchandise with USCS

from any location in the United States

other than the port designated in the

entry for examination.

One aspect of remote location filing

will be supported in ITP1 and use of

this aspect is voluntary, but the same

electronic data transmission

requirements will apply for all

prototype participants. A U.S. ITP1

participant who will be filing remotely

must meet the criteria for remote filing

established in 19 U.S.C. 1414.

An ITP1 participant will be

voluntarily utilizing remote filing if the

electronic transmission of an entry,

entry summary, invoice data (when

required by USCS) and payment of

duties, fees, and taxes is received from

a participant not located in the port of

arrival, which for purposes of this

prototype will also be the port of

examination as designated in the entry

information.

The designation of alternative

locations for cargo examination will not

be supported in ITP1. All cargo

examinations will be conducted at the

port where the cargo first arrives in the

United States.

V. Description of Proposed First Phase

of ITP1

USCS and HMCE agreed that the first

phase of ITP1 (ITP1.1) will commence

on June 8, 1998. The number of U.S.

participants will be limited. In order for

a shipment to be eligible for processing

under ITP1.1 procedures, both the

exporter and the importer of the

shipment must be ITP1 participants in

their respective countries. No more than

six U.S. ports will be included in

ITP1.1. Port selections will be based on

applicants’ requests. While ITP1.1 will

be a parallel test in the U.S., it will have

operational status in the U.K. As a

result, pre-departure export

notifications transmitted by

participating U.S. exporters or their

authorized agents will be used to effect

operational release of the cargo upon

importation into the U.K. Applicants

should note that participants must agree

to the transmission of these data

between governments.

For U.S. exports in ITP1.1:

1. The exporter or an authorized agent

will transmit a pre-departure export

notification message to USCS for each

ITP shipment exported from the U.S.

The proposed data elements for predeparture export notifications in ITP1.1

are:

—Universal Consignment Reference

Number (to identify transactions)

—Country of Export

—Mode of Transportation

—Port of Loading

—Shipping Reference (identification of

Bill of Lading or Air Waybill)

—Shipping Quantity

—Exporter

—Importer

In the U.S. the ITP1.1 pre-departure

export notification will be tested in

parallel. All U.S. export reporting

requirements for ITP1.1 shipments must

be satisfied through existing export

reporting procedures and systems.

2. USCS will forward the data from

the pre-departure export notification

message to HMCE.

3. HMCE will use the forwarded data

from the pre-departure export

notification message to effect

operational import cargo release in the

U.K.

For U.S. imports in ITP1.1:

1. The U.K. exporter or an authorized

agent will transmit a pre-departure

export notification message to HMCE for

each ITP shipment exported from the

U.K. These data will consist of the same

data elements as a U.S. pre-departure

export notification message. U.K. filers

of pre-departure export notifications

will transmit the U.S. importer’s ITP

Authorization Code to identify the

importer. The pre-departure export

notification will have operational status

for U.K. export reporting.

2. Upon departure of the exporting

conveyance, HMCE will forward the

data from the pre-departure export

notification message to USCS.

3. In the U.S., the ITP1.1 predeparture export notification will be

tested in parallel. All U.S. import

reporting requirements for ITP1.1

shipments must be satisfied through

existing import reporting procedures

and systems.

Note that no ITP1.1 data is

transmitted by participants to USCS

with regard to importations into the U.S.

VI. Eligibility Requirements

Customs will select a limited number

of participants for ITP1.1. In order to be

eligible for participation in ITP1.1, a

company operating in the United States

must:

1. Have the ability to provide

electronically, on an entry-by-entry

basis, the following: entry, entry

summary, invoice information; and

payment of duties, fees, and taxes

through the Automated Clearing House

(ACH);

2. Be scheduled for, participating in,

or, in the application, agree to undergo

and cooperate fully with a Customs

Compliance Assessment. At the time the

application is filed, if any Customs

audit is in progress, the importer must

be fully cooperating in all aspects of the

Customs Compliance Assessment and

any related audit, providing timely and

accurate information and adequate

resources necessary for USCS to

conduct a Customs Compliance

Assessment or audit; and be in full

compliance with the terms of any

associated Compliance Improvement

Plan.

3. Export merchandise from the U.S.

for importation into the U.K. and/or

import into the U.S. merchandise

exported from the U.K. Note that in

order for a shipment to be eligible for

processing under ITP1 procedures, both

the exporter and the importer of the

shipment must be ITP1 participants in

their respective countries. It is therefore

important that potential U.S.

participants coordinate their

participation with that of their U.K.

trading partners; and

4. For participants who wish to

include U.S. export shipments in the

ITP1.1 test, provide or arrange for

provision of timely and accurate

electronic transmission to USCS of predeparture export notification data for all

included U.S. export shipments. If a

participant does not transmit electronic

data for a particular export shipment,

USCS may exclude that shipment from

ITP processing.

Applications will be accepted from all

volunteers; however, priority

consideration will be given to:

1. Companies within the top 379 U.S.

importers ranked by entered value (the

top 379 represent approximately 50

percent of all imports by value);

2. Companies within the top 250 U.S.

importers within any of the USCS

Primary Focus Industry (PFI) categories,

which are:

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; and

m. Wearing Apparel;

3. Companies at least 50 percent of

whose imports are in PFI categories; and

4. Companies that indicate they plan

to maintain an average of at least 10

entries per month throughout the

prototype period.

ITP1.1 participants who wish to

continue to participate in subsequent
30292 Federal Register / Vol. 63, No. 106 /Wednesday, June 3, 1998 / Notices

operational phases of ITP1 will further

be required to file or maintain a

continuous bond with sufficient liability

coverage. They will also be required to

provide or arrange for provision of

timely and accurate electronic

transmission to USCS of data required

to pre-identify parties and commodities

involved in ITP transactions, and of all

data required in prototype declaration

processes as they are phased into ITP1.

VII. General Requirements

For ITP1, the following restrictions

will be placed upon participants.

Participants who will include

shipments exported from the U.S.:

A. Must export merchandise

identified in the application as being

from their typical commodities in their

established lines of business to preidentified U.K. importers;

B. Must export only the merchandise

identified in the application as being

within a range of pre-identified

commodities (classified at the 6-digit

HTS level);

C. Must export merchandise using

carriers pre-identified in the

application;

D. Must export merchandise from a

port selected by USCS for inclusion in

the current phase of ITP1;

E. May not include export shipments

of used vehicles or of DEA essential and

precursor chemicals for the manufacture

of narcotics, shipments subject to State

Department licensing or shipments

destined to an embargoed nation;

F. Must not export any merchandise

subject to export prohibitions or

restrictions;

G. May not export ITP1 merchandise

under a transportation and exportation

(T&E) entry;

H. Are responsible for ensuring that

ineligible merchandise is not included

in ITP1 shipments. Customs will

exclude ineligible shipments from ITP1

processing.

Participants who will include

shipments imported into the U.S.:

A. Must provide electronically, on an

entry-by-entry basis, the following:

entry, entry summary, invoice

information; and payment of duties,

fees, and taxes through the Automated

Clearing House (ACH);

B. Must enter merchandise identified

in the application as being from their

typical commodities in their established

lines of business from pre-identified

U.K. exporters;

C. 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);

D. Must enter merchandise

transported by carriers pre-identified in

the application;

E. Must enter merchandise for release

into the commerce under a consumption

entry at the port of unloading, i.e., may

not enter ITP1 merchandise into a

warehouse or Foreign Trade Zone, or as

an in-bond entry;

F. Must enter merchandise at a port

selected by USCS for inclusion in the

current phase of ITP1;

G. May not enter merchandise in ITP1

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;

H. Must not import prohibited

merchandise in prototype shipments;

and,

I. Are responsible for ensuring that

ineligible merchandise is not included

in ITP1 shipments, and that all

shipments aboard a conveyance are

eligible for ITP1 processing. Customs

will exclude ineligible shipments from

ITP1 processing.

VIII. Application

Importers and exporters who wish to

participate in ITP1.1 must submit a

written application within 30 days of

this notice including the following

information:

1. Participant name, address and

designated contact person.

2. For all exported cargo proposed for

inclusion in the ITP1.1 test:

—Names and addresses of all U.K.

importers;

—For each U.K. importer, a listing of all

the 6-digit HTS numbers in which the

commodities to be exported are

classified;

—Detailed explanation of any licenses

or permits required for export of the

listed commodities;

—Lists of all air and ocean freight

carriers to be used;

—For each carrier, a listing of the U.S.

ports of loading at which the carrier

will be used; and

—An estimate of the total number of

export shipments per month the

participant expects to include in the

ITP1.1 test for each mode of

transportation at each U.S. port of

loading.

3. For all imported cargo proposed for

inclusion in the ITP1.1 test:

—Names and addresses of all U.K.

exporters;

—For each U.K. exporter, a listing of all

the 6-digit HTS numbers in which the

commodities to be imported are

classified

—Lists of all air and ocean freight

carriers to be used;

—For each carrier, a listing of the U.S.

ports of unloading they prefer to us;

and,

—An estimate of the total number of

import shipments per month the

participant expects to include in the

ITP1.1 test for each mode of

transportation at each U.S. port of

unloading.

4. 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.

5. A statement indicating that the

participant will comply with the

procedures and restrictions of the

prototype.

6. A statement indicating that the

applicant agrees to the sharing of predeparture export notification data and

other information between the HMCE

and USCS. This includes information in

regard to imported/exported

commodities, value determination, and

company structure and finance. This

information will be shared between UK

and US Account Managers to better

understand importer and exporter

systems, procedures, and levels of

compliance.

USCS will make import admissibility

determinations on ITP shipments

imported into the U.S. based on any

cargo examinations and the information

supplied with the application, which

shall serve as a pre-filed entry for ITP

purposes. Applications may be referred

to other government agencies for review.

All ITP1.1 applicants will be notified in

writing of their acceptance or rejection.

USCS will assign an ITP Authorization

Code to each accepted participant

whose application indicates intent to

include imports into the U.S. in the

ITP1.1 test. The USCS, with the HMCE,

will schedule meetings with each

accepted participant to review the

current prototype proposal, data

elements, technologies, and evaluation

criteria.

If an applicant is denied participation,

the notification letter will include the

reasons for that denial. The applicant

may appeal such decision in writing

within 10 days to the Trade Compliance

Process Owner. Applicants who are

denied participation in ITP1.1 may reapply if USCS subsequently opens

participation to additional participants.

USCS will publish a notice in the

Federal Register if an expansion of

participation is planned.

Applicants should note that

participation is not confidential, and

that lists of participants will be made
Federal Register / Vol. 63, No. 106 /Wednesday, June 3, 1998 / Notices 30293

available to the public. Additionally, all

comments provided to U.S. Customs

will be part of the public record.

IX. Maintenance of Account

Information

Throughout the prototype period,

participants must provide USCS with

advance notification of any changes in

the information provided in the

application. This notification must be

provided to USCS at least seven days

before the effective date of a change and

will be considered an amendment to the

application. By notification of the

participant, USCS may reject such an

amendment or prohibit the participant’s

use of a particular carrier, U.K. importer

or exporter, or the export or import of

particular merchandise under this

prototype.

ITP1.1 participants who wish to

include imported cargo in subsequent

operational phases of ITP1 will be

required to provide additional

information, including but not limited

to the issuer and number of the

continuous surety bond which will

cover all cargo imported under ITP1

procedures and designation of a single

entry filer for each port at which

imported cargo will be unloaded. Each

entry filer designated by one or more

participant importers must provide

USCS with a range of entry numbers to

be reserved for assignment by USCS to

ITP1 shipments. Entry filers may not

assign these numbers to transactions

other than ITP transactions.

X. Misconduct Under Prototype

All participants in ITP1 are required

to abide by the terms and conditions of

this notice.

A participant may be suspended from

the prototype, subject to liquidated

damages, penalties, and/or other

administrative sanctions, and/or

prevented from participation in future

prototypes if a participant fails to

cooperate fully in a Compliance

Assessment or audit, provide timely and

accurate data and adequate resources in

support of a Customs Compliance

Assessment or audit, or comply fully

with the terms of a Compliance

Improvement plan; participant exports

or attempts to export goods to U.K.

importers or conveyed by carriers not

approved by USCS; exports or attempts

to export goods classified in commodity

ranges not approved by USCS; exports

or attempts to export or submits data

relating to prohibited merchandise or

other non-eligible merchandise; enters

or attempts to enter goods from U.K.

exporters or conveyed by carriers not

approved by USCS; enters or attempts to

enter goods classified in commodity

ranges not approved by USCS;

participant files non-consumption

import entries; enters or attempts to

enter or submits data relating to

prohibited merchandise, merchandise

subject to quota or antidumping or

countervailing duties, or other noneligible merchandise; fails to maintain

sufficient continuous bond coverage;

files erroneous or untimely data; makes

late or inadequate payments; fails to

supply USCS with requested invoice

data; fails to maintain a sufficient level

of compliance; 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. USCS has the discretion to

suspend a prototype participant based

on the determination that an

unacceptable compliance risk exists.

This suspension may be invoked at any

time after acceptance in the prototype.

Any decision proposing suspension of

a participant may be appealed in writing

to the Director, Trade Compliance,

within 15 days of the decision date.

Such proposed suspension will apprise

the participant of the facts or conduct

warranting suspension. Should the

participant appeal the notice of

proposed suspension, the participant

should address the facts or conduct

charges contained in the notice and

state how he does or will achieve

compliance. However, in the case of

willfulness or where public health

interests or safety are concerned, the

suspension may be effective

immediately.

Regulatory Provisions Suspended

Certain provisions of Parts 24, 111,

113, 141, 142, 143, and 159 of the

Customs Regulations (19 CFR Parts 24,

111, 113, 141, 142, 143, and 159) will

be suspended during operational phases

of the ITP1 test to allow for monthly

filing of entry summary data, periodic

payment of duties, taxes and fees,

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.

Prototype Evaluation

Once the participants are selected for

ITP1.1, the Joint Prototype Team will,

during the initial six months of the test

period, evaluate the effectiveness of the

automation involved. Subsequent

reviews will additionally consist of

evaluating the data received from the

participants, along with the internal and

external process operations of the ITP.

The intention of the evaluations is to

enhance operational procedures and to

develop the detailed data requirements

that are needed for ITP.

Note that the fact of participation in

the ITP is not confidential information.

Lists of participants, comments

provided to U.S. Customs, and

evaluation results may be made

available to the public by means of the

Customs Electronic Bulletin Board and

the Customs Administrative Message

System, and upon written request. The

G–7 countries will participate in

evaluation development and review. We

stress that all interested parties are

invited to comment on the design,

conduct, and evaluation of ITP 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: May 29, 1998.

Samuel H. Banks,

Acting Commissioner of Customs.

[FR Doc. 98–14648 Filed 6–2–98; 8:45 am]

BILLING CODE 4820–02–P