2644 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

the U.S. Department of Health and 

Human Services under the authority of 

42 U.S.C. 9902(2).’’ 

Some federal programs use a 

percentage multiple of the guidelines 

(for example, 125 percent or 185 percent 

of the guidelines), as noted in relevant 

authorizing legislation or program 

regulations. Non-Federal organizations 

that use the poverty guidelines under 

their own authority in non-Federallyfunded activities also may choose to use 

a percentage multiple of the guidelines. 

The poverty guidelines do not make a 

distinction between farm and non-farm 

families, or between aged and non-aged 

units. (Only the Census Bureau poverty 

thresholds have separate figures for aged 

and non-aged one-person and twoperson units.) 

Note that this notice does not provide 

definitions of such terms as ‘‘income’’ or 

‘‘family,’’ because there is considerable 

variation in defining these terms among 

the different programs that use the 

guidelines. These variations are 

traceable to the different laws and 

regulations that govern the various 

programs. This means that questions 

such as ‘‘Is income counted before or 

after taxes?’’, ‘‘Should a particular type 

of income be counted?’’, and ‘‘Should a 

particular person be counted as a 

member of the family/household?’’ are 

actually questions about how a specific 

program applies the poverty guidelines. 

All such questions about how a specific 

program applies the guidelines should 

be directed to the entity that administers 

or funds the program, since that entity 

has the responsibility for defining such 

terms as ‘‘income’’ or ‘‘family,’’ to the 

extent that these terms are not already 

defined for the program in legislation or 

regulations. 

Dated: January 12, 2018. 

Eric D. Hargan, 

Acting Secretary of Health and Human 

Services. 

[FR Doc. 2018–00814 Filed 1–12–18; 4:15 pm] 

BILLING CODE 4150–05–P 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

Automated Commercial Environment 

(ACE) Becoming the Sole CBPAuthorized Electronic Data 

Interchange (EDI) System for 

Processing Electronic Drawback 

Filings 

AGENCY: U.S. Customs and Border 

Protection, Department of Homeland 

Security. 

ACTION: General notice. 

SUMMARY: This document announces 

that the Automated Commercial 

Environment (ACE) will be the sole 

electronic data interchange (EDI) system 

authorized by U.S. Customs and Border 

Protection (CBP) for processing 

electronic drawback filings under part 

181 (NAFTA drawback) and part 191 

(non-TFTEA drawback) of Title 19 of 

the Code of Federal Regulations. This 

document also announces that the 

Automated Commercial System (ACS) 

will no longer be a CBP-authorized EDI 

system for purposes of processing such 

filings. This notice further announces 

the deployment of a new ACE filing 

code for all electronic drawback filings, 

replacing the six distinct drawback 

codes previously filed in ACS. 

DATES: As of February 24, 2018, ACE 

will be the sole CBP-authorized EDI 

system for processing drawback filings 

under part 181 (NAFTA drawback) and 

part 191 (non-TFTEA drawback) of Title 

19 of the Code of Federal Regulations, 

and ACS will no longer be a CBPauthorized EDI system for such purpose. 

FOR FURTHER INFORMATION CONTACT: 

Randy Mitchell, Commercial Operations 

and Entry Division, Trade Policy and 

Programs, Office of Trade at (202) 863– 

6532 or RANDY.MITCHELL@

CBP.DHS.GOV. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 484 of the Tariff Act of 1930, 

as amended (19 U.S.C. 1484), 

establishes the requirement for 

importers of record to make entry for 

merchandise to be imported into the 

customs territory of the United States. 

Customs entry information is used by 

U.S. Customs and Border Protection 

(CBP) and Partner Government Agencies 

(PGAs) to determine whether 

merchandise may be released from CBP 

custody. Importers of record are also 

obligated to complete the entry by filing 

an entry summary declaring the value, 

classification, rate of duty applicable to 

the merchandise and such other 

information as is necessary for CBP to 

properly assess duties, collect accurate 

statistics and determine whether any 

other applicable requirement of law is 

met. 

The customs entry requirements were 

amended by Title VI of the North 

American Free Trade Agreement 

Implementation Act (Pub. L. 103–182, 

107 Stat. 2057, December 8, 1993), 

commonly known as the Customs 

Modernization Act, or Mod Act. In 

particular, section 637 of the Mod Act 

amended section 484(a)(1)(A) of the 

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

1484(a)(1)(A)) by revising the 

requirement to make and complete 

customs entry by submitting 

documentation to CBP to allow, in the 

alternative, the electronic transmission 

of such entry information pursuant to a 

CBP-authorized electronic data 

interchange (EDI) system. CBP created 

the Automated Commercial System 

(ACS) to track, control, and process all 

commercial goods imported into the 

United States. CBP established the 

specific requirements and procedures 

for the electronic filing of entry and 

entry summary data for imported 

merchandise through the Automated 

Broker Interface (ABI) to ACS. 

II. Transition Into the Automated 

Commercial Environment 

In an effort to modernize the business 

processes essential to securing U.S. 

borders, facilitating the flow of 

legitimate shipments, and targeting 

illicit goods pursuant to the Mod Act 

and the Security and Accountability for 

Every (SAFE) Port Act of 2006 (Pub. L. 

109–347, 120 Stat. 1884), CBP 

developed the Automated Commercial 

Environment (ACE) to eventually 

replace ACS as the CBP-authorized EDI 

system. Over the last several years, CBP 

has tested ACE and provided significant 

public outreach to ensure that the trade 

community is fully aware of the 

transition from ACS to ACE. 

On October 13, 2015, CBP published 

an Interim Final Rule in the Federal 

Register (80 FR 61278) that designated 

ACE as a CBP-authorized EDI system. 

The designation of ACE as a CBPauthorized EDI system was effective 

November 1, 2015. In the Interim Final 

Rule, CBP stated that ACS would be 

phased out and anticipated that ACS 

would no longer be supported for entry 

and entry summary filing. Filers were 

encouraged to adjust their business 

practices so that they would be prepared 

when ACS was decommissioned. 

CBP developed a staggered transition 

strategy for decommissioning ACS. The 

phases of the transition were announced 

in several Federal Register notices. See 

81 FR 10264 (February 29, 2016); 81 FR 

30320 (May 16, 2016); 81 FR 32339 

(May 23, 2016); 82 FR 38924 (August 16, 

2017); and 82 FR 51852 (November 8, 

2017). This notice announces another 

transition as the processing of electronic 

drawback filings under parts 181 and 

191 of title 19 of the Code of Federal 

Regulations (CFR) is transitioning into 

ACE. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 2645 

III. ACE as the Sole CBP-Authorized 

EDI System for the Processing of 

Electronic Filings of NAFTA Drawback 

and Non-TFTEA-Drawback 

This notice announces that, beginning 

February 24, 2018, ACE will become the 

sole CBP-authorized EDI system for 

electronic filings of NAFTA drawback 

(19 CFR part 181) and non-TFTEA 

drawback (19 CFR part 191), and ACS 

will no longer be a CBP-authorized EDI 

system for purposes of processing these 

electronic filings. A separate Federal 

Register document will be published 

containing proposed regulations 

regarding TFTEA-Drawback claims, 

which are those claims filed under 19 

U.S.C. 1313, as amended by the Trade 

Facilitation and Trade Enforcement Act 

of 2015 (TFTEA) (Pub. L. 114–125, 130 

Stat. 122, February 24, 2016). The 

electronic filings referred to in this 

document, i.e., non-TFTEA drawback 

claims, are limited to drawback claims 

filed in compliance with the regulations 

in parts 181 and 191 and under 19 

U.S.C. 1313, as it was in effect prior to 

the TFTEA amendments. 

IV. Deployment of New Filing Code for 

Drawback in ACE 

CBP announces the deployment of a 

new ACE filing code 47 for drawback as 

of February 24, 2018, which will replace 

the following six drawback codes 

previously filed in ACS: 

• 41—Direct Identification 

Manufacturing Drawback 

• 42—Direct Identification Unused 

Merchandise Drawback 

• 43—Rejected Merchandise Drawback 

• 44—Substitution Manufacturing 

Drawback 

• 45—Substitution Unused 

Merchandise Drawback 

• 46—Other Drawback 

V. Entry Types With Low Shipment 

Volume 

This notice announces that the 

following entry types will not be 

automated in either ACS or ACE due to 

low shipment volume: 

• 04—Appraisement 

• 05—Vessel—Repair 

• 24—Trade Fair 

• 25—Permanent Exhibition 

• 26—Warehouse—Foreign Trade Zone 

(FTZ) (Admission) 

• 33—Aircraft and Vessel Supply (For 

Immediate Exportation) 

• 64—Barge Movement 

• 65—Permit To Proceed 

• 66—Baggage 

Dated: January 12, 2018. 

Kevin K. McAleenan, 

Acting Commissioner, U.S. Customs and 

Border Protection. 

[FR Doc. 2018–00803 Filed 1–17–18; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

Modification of the National Customs 

Automation Program (NCAP) Test 

Regarding Reconciliation and 

Transition of the Test From the 

Automated Commercial System (ACS) 

to the Automated Commercial 

Environment (ACE) 

AGENCY: U.S. Customs and Border 

Protection, Department of Homeland 

Security. 

ACTION: General notice. 

SUMMARY: This document announces 

that certain previously announced 

modifications to the National Customs 

Automation Program (NCAP) test 

regarding reconciliation will become 

operational, and that the test program 

will transition from the Automated 

Commercial System (ACS) to the 

Automated Commercial Environment 

(ACE). 

DATES: As of February 24, 2018, the 

modifications to the reconciliation test 

will become operational. As of the same 

date, the test will transition into ACE, 

and ACS will be decommissioned for 

the filing of reconciliation entries. 

ADDRESSES: Comments concerning this 

test program may be submitted via 

email, with a subject line identifier 

reading, ‘‘Comment on Reconciliation 

test’’ to OFO-RECONFOLDER@

cbp.dhs.gov. 

FOR FURTHER INFORMATION CONTACT: 

Randy Mitchell, Commercial Operations 

and Entry Division, Trade Policy and 

Programs, Office of Trade at (202) 863– 

6532 or RANDY.MITCHELL@

CBP.DHS.GOV. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Reconciliation Test Program 

Title VI of the North American Free 

Trade Agreement (NAFTA) 

Implementation Act (Pub. L. 103–182, 

107 Stat. 2057, 2170, December 8, 1993), 

commonly known as the Customs 

Modernization Act or Mod Act, 

amended the Tariff Act of 1930 and 

related laws, in part, to increase 

voluntary compliance with customs 

laws and improvements to customs 

enforcement. Subtitle B of Title VI 

established the National Customs 

Automation Program (NCAP) which is 

an automated and electronic system for 

processing commercial importations, 

and includes the testing of existing and 

planned components. (19 U.S.C. 1411). 

Section 637 of the Mod Act amended 

Section 484 of the Tariff Act of 1930 to 

establish a new section (b), entitled 

‘‘Reconciliation’’, a planned component 

of the NCAP. (19 U.S.C. 1484(b), 19 

U.S.C. 1411(a)(2)(C)). 

Reconciliation is the process that 

allows an importer, at the time an entry 

summary is filed, to identify 

indeterminable information (other than 

that affecting admissibility) to U.S. 

Customs and Border Protection (CBP) 

and to provide that outstanding 

information at a later date. The importer 

identifies the outstanding information 

by means of an electronic ‘‘flag’’ which 

is placed on the entry summary at the 

time the entry summary is filed and 

payment (applicable duty, taxes, and 

fees) is made. 

Section 101.9(b) of Title 19 of the 

Code of Federal Regulations (19 CFR 

101.9(b)) provides for the testing of 

NCAP components. See T.D. 95–21, 60 

FR 14211 (March 16, 1995). The 

reconciliation test was established 

pursuant to this regulation, and is 

currently being tested in the Automated 

Commercial System (ACS). CBP 

announced and explained the test in a 

general notice published in the Federal 

Register (63 FR 6257) on February 6, 

1998. Clarifications and operational 

changes were announced in subsequent 

Federal Register notices: 63 FR 44303 

(August 18, 1998); 64 FR 39187 (July 21, 

1999); 64 FR 73121 (December 29, 

1999); 66 FR 14619 (March 13, 2001); 67 

FR 61200 (September 27, 2002) (with a 

correction document published at 67 FR 

68238 (November 8, 2002)); 69 FR 53730 

(September 2, 2004); 70 FR 1730 

(January 10, 2005); 70 FR 46882 (August 

11, 2005); 71 FR 37596 (June 30, 2006); 

78 FR 27984 (May 13, 2013); and 79 FR 

34334 (June 16, 2014). On September 

13, 2000, CBP extended the test 

indefinitely in a notice published in the 

Federal Register (65 FR 55326). 

B. Transition to the Automated 

Commercial Environment 

The Security and Accountability for 

Every (SAFE) Port Act of 2006 (Pub. L. 

109–347, 120 Stat. 1884) modified the 

Mod Act and added subsection (d) to 19 

U.S.C. 1411. This subsection established 

the International Trade Data System 

(ITDS) which allows for the collection 

and distribution of standard import and 

export data required by CBP through a 

single portal system. The Automated 


sradovich on DSK3GMQ082PROD with NOTICES