[Federal Register Volume 60, Number 66 (Thursday, April 6, 1995)]
[Notices]
[Pages 17605-17607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8429]



-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY
Customs Service


Announcement of National Customs Automation Program Test 
Regarding Remote Location Filing

AGENCY: Customs Service, Department of the Treasury.

ACTION: General notice.

-----------------------------------------------------------------------

SUMMARY: This notice announces Customs plan to conduct the first of at 
least two prototype tests regarding remote location filing. This notice 
invites public comments concerning any aspect of the planned test, 
informs interested members of the public of the eligibility 
requirements for voluntary participation in the testing of the first 
prototype, and describes the basis on which Customs will select 
participants.

EFFECTIVE DATE: The test of the first prototype will commence no 
earlier than June 1, 1995, and will run for approximately six months. 
Comments concerning the methodology of the first remote filing 
prototype must be received on or before May 8, 1995. To participate in 
the first prototype test, the necessary information, as outlined in 
this notice, must be filed with Customs on or before May 8, 1995.

ADDRESSES: Written comments regarding this notice and information 
submitted to be considered for voluntary participation on the first 
prototype should be addressed to the Remote Filing Team, U.S. Customs 
Service, 1301 Constitution Avenue, N.W., Room 1322, Washington, D.C. 
20229-0001.

FOR FURTHER INFORMATION CONTACT: For systems or automation issues: Russ 
Lanouette (202) 927-0322, or Jackie Jegels (202) 927-0201.
    For operational or policy issues: Linda LeBaron (202) 927-0424.

SUPPLEMENTARY INFORMATION:

Background

    Title VI of the North American Free Trade Agreement Implementation 
Act (the Act), Public Law 103-182, 107 Stat. 2057 (December 8, 1993), 
contains provisions pertaining to Customs Modernization (107 Stat. 
2170). Subtitle B of 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 (RLF) (section 
414). Section 101.9(b) of the Customs Regulations (19 CFR 101.9(b)), 
implements the testing of NCAP components. See, T.D. 95-21 (60 FR 
14211, March 16, 1995).

I. Description of Proposed Test

The Concept of Remote Location Filing

    Remote Location Filing (RLF) will allow a program participant to 
file electronically an entry of merchandise with Customs from a 
location within the United States other than at the port of arrival or 
location of examination. Due to the nature of this prototype test, 
certain Customs Regulations pertaining to brokers permits, surety 
bonds, and the entry of merchandise will be suspended.
    Since June of 1994, the Customs Remote Team has shared Customs RLF 
concept through many public meetings and concept papers, and other 
information on RLF has been distributed on the Customs Electronic 
Bulletin Board and the Customs Administrative Message System.
    Customs intends to conduct at least two prototypes of the RLF 
component of the NCAP. These tests will determine the system and 
operational design of the RLF, which will allow all filers to 
participate in this type of entry process at a national level. At this 
time, how the final RLF program will operate is unknown. Prototype 
participants must recognize that these are true prototypes to test the 
benefits and potential problems of RLF for Customs, the trade 
community, and other parties impacted by this program. It is important 
to note that time and money spent on these prototypes may not carry 
forward to the final program.

Description of RLF Program

    Customs plans to implement RLF are based on blending the 
experiences of the planned remote prototypes with other Customs 
initiatives such as the Reorganization, ACS Redesign (ACE), and Trade 
Compliance Process [[Page 17606]] Improvement. The Customs RLF team's 
objectives are:
    (1) To work with the trade community, other agencies, and other 
parties impacted by this program in the design, conduct and evaluation 
of a limited prototype test of RLF;
    (2) To obtain experience through prototype tests of remote location 
filing for use in the design of operational procedures, automated 
systems, and regulations that are supportive and compatible with the 
Customs Reorganization, the Trade Compliance Process Improvement, and 
the ACE redesign; and
    (3) To implement RLF on a national level after the completion of 
the Reorganization, the Trade Compliance Process Improvement, and the 
ACE Redesign.
    The first RLF prototype (Prototype One) will commence no sooner 
than June 1, 1995, and is scheduled to run for approximately six 
months. Prototype One will be conducted with a very limited number of 
participants at limited locations. This is due to the fact that this 
prototype will be conducted with minimal system changes thereby 
requiring Customs to intervene manually in tracking and processing. All 
procedures and processes will be closely coordinated with all selected 
and affected parties. The intent of this prototype is to test such 
operational issues as communication, cargo movement and release, and 
service to and from remote locations. This prototype will also test 
features such as filing from a remote location, alternate exam 
location, and possibly entry summary workload distribution.
    The second remote prototype (Prototype Two) is tentatively 
scheduled to commence no sooner than June 1, 1996. Prototype Two will 
continue to evaluate operational impact and procedures, and begin 
addressing additional systemic needs. The work completed by Customs 
Trade Compliance process improvement teams and the Automated Commercial 
Environment (ACE or the ACS Redesign), and experience gained from 
Prototype One will be incorporated into this prototype.

Regulatory Provisions Suspended

    Certain provisions in Part 111, pertaining to Customs brokers, Part 
113, pertaining to Customs bonds, and Part 141, pertaining to the entry 
of merchandise, of the Customs Regulations (19 CFR Parts 111, 113, and 
141) will be suspended during this prototype test to allow remote 
filings by brokers in districts where they currently do not hold 
permits, and to allow for the movement of cargo from its port of 
arrival to a designated examination site.

II. Eligibility Criteria

    Note that participation in this testing will not constitute 
confidential information and that lists of participants will be made 
available to the public upon written request.
    In order to qualify for filing from a remote location, a program 
participant in the prototype must have the capability to provide, on an 
entry-by-entry basis, the electronic entry of merchandise; the 
electronic entry summary of required information; the electronic 
transmission of invoice information (ABI/AII or EDIFACT); and the 
electronic payment of duties fees, and taxes (ACH). Other requirements 
and conditions are as follows:
    1. Participants and requested Customs locations must have 
operational experience with the Customs Electronic Invoice Program 
(EIP) with either ABI/AII or EDIFACT. Locations available for prototype 
participation are those ports currently operating with EIP release and 
summary processing. It is possible that additional ports may be 
available when the first prototype commences. The following are 
locations currently operational with EIP. (S/P indicates summary 
processing location and R/P indicates release processing location).

------------------------------------------------------------------------
           DDPP location                 Electronic processing status   
------------------------------------------------------------------------
0101 Portland ME...................  S/P.                               
0106 Houlton ME....................  R/P, S/P done in 0101.             
0115 Calais ME.....................  R/P, S/P done in 0101.             
0401 Boston........................  R/P.                               
0901 Buffalo.......................  S/P.                               
0903 Rochester.....................  R/P, S/P done in 0901.             
1001 New York Seaport..............  R/P, S/P.                          
1101 Philadelphia..................  R/P, S/P.                          
1102 Chester PA....................  R/P, S/P done in 1101.             
1103 Wilmington DE.................  R/P, S/P done in 1101.             
1108 Philadelphia Airport..........  R/P, S/P done in 1101.             
1303 Baltimore Seaport.............  R/P, S/P.                          
1401 Norfolk.......................  R/P.                               
1601 Charleston....................  R/P.                               
1703 Savannah......................  R/P.                               
1803 Jacksonville..................  R/P.                               
2002 New Orleans...................  R/P.                               
2304 Laredo........................  R/P, S/P.                          
2704 Los Angeles...................  R/P, S/P done in Terminal Island,  
                                      CA.                               
2809 San Francisco.................  R/P.                               
3001 Seattle.......................  R/P.                               
3701 Milwaukee.....................  R/P.                               
3801 Detroit.......................  R/P.                               
3901 Chicago.......................  R/P.                               
4101 Cleveland.....................  S/P.                               
4102 Cincinnati....................  R/P, S/P done in 4101.             
41## Louisville....................  R/P, S/P done in 4101.             
4601 Newark........................  R/P, S/P.                          
4701 JFK...........................  R/P, S/P.                          
5201 Miami.........................  R/P, S/P.                          
5203 Port Everglades...............  R/P, S/P done in 5201.             
5206 Miami Airport.................  R/P, S/P done in 5201.             
5301 Houston.......................  R/P.                               
------------------------------------------------------------------------

    2. Participants must be operational on the Automated Clearing House 
(ACH) 30 days before Prototype One commences;
    3. Only entry types 01 (consumption) and 11 (informal) will be 
accepted;
    4. Cargo release must be certified from the entry summary (EI) 
transaction with the exception of immediate delivery explained in #5;
    5. Participants will be allowed to file Immediate Delivery releases 
for direct arrival road and rail freight at the land border 
(essentially 19 CFR 142.21(a)) with use of paper invoices under Line 
Release, Border Cargo Selectivity (BCS), or Cargo Selectivity (CS). 
Submission of all line items at the time of release will be required of 
northern border filers, if the release is effected using BCS or CS. If 
an examination is required for a line release transaction, the filer 
must submit all relevant line item information through BCS or CS. Under 
BCS and CS, the examination will be performed at the port of arrival 
with the use of paper invoices. If the filer wishes the examination to 
be performed at an alternate site, full entry summary information (EI 
transaction) with electronic invoice must be transmitted;
    6. Participants will not be allowed to file an RLF against cargo 
that has been moved in-bond;
    7. Participants will be required to use OGA interfaces where they 
are available; and
    8. If an examination is determined necessary, cargo will be 
examined at the Customs port of arrival, or, at Customs discretion, a 
filer's requested designated examination site which would be a Customs 
port which is at or nearest the final destination. This movement of 
cargo to a designated examination port will be under the importer's 
bond.
    9. A participant must maintain an average of 1-2 entries per day 
throughout the testing of the prototype.
    Customs will work with participants to ensure that:
    (1) Customs contacts and problem solving teams are established.
    (2) Procedures for remote entry and entry summary processing are 
prepared. [[Page 17607]] 
    (3) Notification to the participant's contact person of the 
examination site is arranged.

Prototype One Application

    This notice requests importers or brokers on behalf of importers to 
voluntarily apply for participation in Prototype One by submitting the 
following information to the Remote Filing Team, U.S. Customs Service, 
1301 Constitution Avenue, N.W. Room 1322, Washington, D.C. 20229-0001 
on or before the date set forth in the effective date paragraph at the 
beginning of this notice:
    1. Importer name and, if applicable, broker name, address, and 
filer code.
    2. Supplier name, address, and manufacturer's number.
    3. Types of commodities to be imported.
    4. Other agency requirements.
    5. Port(s) of arrival.
    6. Designated examination site(s) (location nearest the final 
destination).
    7. Monthly volume anticipated.
    8. Requested entry summary processing location(s), if different 
from the port of arrival.
    9. Electronic Invoicing Program status and projected start date.
    10. Electronic Payment (ACH) status and projected start date.
    11. Main contact person and telephone number for participation 
questions.
    12. Any comments on prototype participation.

Basis for Participant Selection

    Eligible importers or importers with brokers will be considered for 
selection as participants in Prototype One. Customs is looking for a 
variety of circumstances and participants in this first prototype; 
however, only a small number of participants will be selected. We 
stress that those not selected for participation will be invited to 
comment on the design, conduct, and evaluation of this prototype. 
Selection will be based on EIP operational experience, volume 
anticipated, electronic abilities, and available electronic interfaces 
with other agencies import requirements. Participants selected will be 
notified by means of the Customs Electronic Bulletin Board and the 
Customs Administrative Message System.

III. Test evaluation criteria

    Once participants are selected, Customs and the participants will 
meet to review all public comments received concerning any aspect of 
the test program or procedures, finalize procedures in light of those 
comments, form problem-solving teams, and establish baseline measures 
and evaluation methods and criteria. At 90 days and 180 days after 
commencement, evaluations of the prototype will be conducted, with the 
final results published in the Federal Register as required by 
Sec. 101.9(b). The following evaluation methods and criteria have been 
suggested:
    1. Baseline measurements will be established through dataqueries 
and questionnaires.
    2. Reports will be run through use of dataquery throughout the 
prototype.
    3. Questionnaires will be conducted before, during, and after the 
prototype period.

Preliminary ideas for evaluation criteria for Customs and other 
government agencies are workload impact (workload shifts, cycletime, 
etc.), policy and procedural accommodation, trade compliance impact, 
alternate exam site issues (workload shift, coordination/communication, 
etc.), problem solving, system efficiency, and the collection of 
statistics. Criteria ideas for the trade are service in cargo clearance 
and problem resolution, cost benefits, system efficiency, operational 
efficiency, and other items identified by the participant group.
    In conclusion, it is emphasized that if a company is interested in 
filing remotely, they must first be operational with the Electronic 
Invoicing Program (EIP). For information on the Electronic Invoicing 
Program (EIP), please contact your ABI Client Representative.

    Dated: March 30, 1995.
Samuel H. Banks,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 95-8429 Filed 4-5-95; 8:45 am]
BILLING CODE 4820-02-P