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
2646 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

1With respect to all references to ‘‘country’’ or 

‘‘countries’’ in this document, it should be noted 

that the Taiwan Relations Act of 1979, Public Law 

96–8, Section 4(b)(1), provides that ‘‘[w]henever the 

laws of the United States refer or relate to foreign 

countries, nations, states, governments, or similar 

entities, such terms shall include and such laws 

shall apply with respect to Taiwan.’’ 22 U.S.C. 

3303(b)(1). Accordingly, all references to ‘‘country’’ 

or ‘‘countries’’ in the regulations governing whether 

nationals of a country are eligible for H–2 program 

participation, 8 CFR 214.2(h)(5)(i)(F)(1)(i) and 8 

CFR 214.2(h)(6)(i)(E)(1), are read to include Taiwan. 

This is consistent with the United States’ one-China 

policy, under which the United States has 

maintained unofficial relations with Taiwan since 

1979. 

Commercial Environment (ACE), the 

‘‘single window,’’ is an automated and 

electronic system for commercial trade 

processing which is intended to 

streamline business processes, facilitate 

growth in trade, ensure cargo security, 

and foster participation in global 

commerce, while ensuring compliance 

with U.S. laws and regulations and 

reducing costs for CBP and all of its 

communities of interest. The ability to 

meet these objectives depends on 

successfully modernizing CBP’s 

business functions and the information 

technology that supports those 

functions. 

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, to be 

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 has developed a staggered 

transition strategy for decommissioning 

ACS to give the trade additional time to 

adjust their business practices. 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 a further 

transition as CBP is transitioning the 

reconciliation test from ACS to ACE. 

C. Modifications of the Reconciliation 

Test 

On December 12, 2016, CBP 

published a notice in the Federal 

Register (81 FR 89486) announcing 

modifications to the reconciliation test 

and the transition of the test from ACS 

to ACE, effective January 14, 2017. On 

January 17, 2017, CBP published a 

notice in the Federal Register (82 FR 

4901) announcing that the effective date 

for the test modifications and transition 

would be delayed indefinitely. Then, on 

June 8, 2017, CBP published a notice in 

the Federal Register (82 FR 26699) 

announcing that the modifications to 

the test and the transition would be 

effective on July 8, 2017. Subsequently, 

on June 30, 2017, CBP published a 

notice in the Federal Register (82 FR 

29910) announcing that the effective 

date for the modifications to the 

reconciliation test and for mandatory 

filing of reconciliation entries in ACE 

had been delayed until further notice. 

II. Announcement of Reconciliation 

Test Transitioning Into ACE and 

Modifications to Test Becoming 

Operational 

This notice announces that, beginning 

February 24, 2018, all reconciliation 

entries must be filed in ACE regardless 

of whether the underlying entry was 

filed in ACS or ACE and regardless of 

whether it is a replacement, substitution 

or follow-up to a reconciliation entry 

originally filed in ACS, and ACS is 

decommissioned for the filing of such 

entries. In addition, as of February 24, 

2018, the test modifications announced 

in the December 12, 2016 notice will 

become operational. 

Dated: January 12, 2018. 

Brenda B. Smith, 

Executive Assistant Commissioner, Office of 

Trade. 

[FR Doc. 2018–00802 Filed 1–17–18; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF HOMELAND 

SECURITY 

[Docket No. DHS–2011–0108] 

RIN 1601–ZA11 

Identification of Foreign Countries 

Whose Nationals Are Eligible To 

Participate in the H–2A and H–2B 

Nonimmigrant Worker Programs 

AGENCY: Office of the Secretary, DHS. 

ACTION: Notice. 

SUMMARY: Under Department of 

Homeland Security (DHS) regulations, 

U.S. Citizenship and Immigration 

Services (USCIS) may generally only 

approve petitions for H–2A and H–2B 

nonimmigrant status for nationals of 

countries that the Secretary of 

Homeland Security, with the 

concurrence of the Secretary of State, 

has designated by notice published in 

the Federal Register. That notice must 

be renewed each year. This notice 

announces that the Secretary of 

Homeland Security, in consultation 

with the Secretary of State, is 

identifying 83 countries whose 

nationals are eligible to participate in 

the H–2A program and 82 countries 

whose nationals are eligible to 

participate in the H–2B program for the 

coming year. 

DATES: Effective Date: This notice is 

effective January 18, 2018, and shall be 

without effect after January 18, 2019. 

FOR FURTHER INFORMATION CONTACT: Eric 

B. Johnson, Office of Policy, Department 

of Homeland Security, Washington, DC 

20528, (202) 282–8652. 

SUPPLEMENTARY INFORMATION: 

Background 

Generally, USCIS may approve H–2A 

and H–2B petitions for nationals of only 

those countries 1 that the Secretary of 

Homeland Security, with the 

concurrence of the Secretary of State, 

has designated as participating 

countries. Such designation must be 

published as a notice in the Federal 

Register and expires after one year. 

USCIS, however, may allow a national 

from a country not on the list to be 

named as a beneficiary of an H–2A or 

H–2B petition based on a determination 

that such participation is in the U.S. 

interest. See 8 CFR 214.2(h)(5)(i)(F) and 

8 CFR 214.2(h)(6)(i)(E). 

In designating countries to include on 

the list, the Secretary of Homeland 

Security, with the concurrence of the 

Secretary of State, will take into account 

factors including, but not limited to: (1) 

The country’s cooperation with respect 

to issuance of travel documents for 

citizens, subjects, nationals, and 

residents of that country who are subject 

to a final order of removal; (2) the 

number of final and unexecuted orders 

of removal against citizens, subjects, 

nationals, and residents of that country; 

(3) the number of orders of removal 

executed against citizens, subjects, 

nationals, and residents of that country; 

and (4) such other factors as may serve 

the U.S. interest. See 8 CFR 

214.2(h)(5)(i)(F)(1)(i) and 8 CFR 

214.2(h)(6)(i)(E)(1). Examples of factors 

serving the U.S. interest that could 

result in the non-inclusion of a country 

or the removal of a country from the list 

include, but are not limited to, fraud, 

abuse, overstay rates, and noncompliance with the terms and 

conditions of the H–2 visa programs by 

nationals of that country. 

In December 2008, DHS published in 

the Federal Register two notices, 

‘‘Identification of Foreign Countries 


sradovich on DSK3GMQ082PROD with NOTICES