Federal Register / Vol. 82, No. 157 / Wednesday, August 16, 2017 / Notices 38923 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

Extension and Clarification of Test 

Program Regarding Electronic Foreign 

Trade Zone Admission Applications 

and Transition of Test From the 

Automated Commercial System to the 

Automated Commercial Environment 

AGENCY: U.S. Customs and Border 

Protection, Department of Homeland 

Security. 

ACTION: General notice. 

SUMMARY: This document announces 

U.S. Customs and Border Protection’s 

(CBP’s) plan to extend a test program for 

submitting electronic Foreign Trade 

Zone (FTZ) admission applications to 

CBP via the Automated Broker Interface 

(ABI). This notice further announces a 

clarification regarding the data elements 

that are required for the submission of 

an FTZ admission application, as well 

as the transition of the test program 

from the Automated Commercial 

System (ACS) to the Automated 

Commercial Environment (ACE). 

DATES: As of September 16, 2017, ACE 

will be the sole CBP-authorized 

electronic data interchange (EDI) system 

for processing electronic FTZ admission 

applications. 

The test will continue until 

concluded by way of announcement in 

the Federal Register. Comments 

concerning this notice and any aspect of 

the prototype may be submitted at any 

time during the test period. 

ADDRESSES: Written comments 

regarding this notice may be submitted 

via email to Lydia Jackson at 

Lydia.A.Jackson@cbp.dhs.gov, or via 

mail to the Cargo Control Branch, Office 

of Field Operations, U.S. Customs and 

Border Protection, 1300 Pennsylvania 

Avenue NW., Room 5.2C, Washington, 

DC 20229. 

FOR FURTHER INFORMATION CONTACT: For 

operational questions, contact Lydia 

Jackson, Cargo & Conveyance Security, 

Office of Field Operations, U.S. Customs 

and Border Protection, via email at 

Lydia.A.Jackson@cbp.dhs.gov. For 

technical questions, contact Tonya 

Perez, Cargo Systems Program 

Directorate, Office of Information and 

Technology, U.S. Customs and Border 

Protection, via email at Tonya.M.Perez@

cbp.dhs.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Electronic Foreign Trade Zone 

Admission Application Test Program: 

Planned Component of the National 

Customs Automation Program 

The National Customs Automation 

Program (NCAP) was established in 

Subtitle B of Title VI—Customs 

Modernization (‘‘Customs 

Modernization Act’’), North American 

Free Trade Agreement Implementation 

Act (Pub. L. 103–182, 107 Stat. 2057, 

Dec. 8, 1993) (19 U.S.C. 1411). 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 6, 1995). 

On August 19, 2005, U.S. Customs 

and Border Protection (CBP) announced 

a test regarding the submission of an 

electronic version of CBP Form 214 

(‘‘Application for Foreign-Trade Zone 

Admission and/or Status Designation’’) 

via the Automated Broker Interface 

(ABI) to the Automated Commercial 

System (ACS), which was published in 

the Federal Register (70 FR 48774). The 

electronic Foreign Trade Zone (FTZ) 

admission application prototype is 

currently being tested in ACS in 

accordance with 19 CFR 101.9(b). The 

test program initially allowed for 

electronic FTZ admission applications 

for merchandise reported to CBP via air, 

sea, and rail manifest. Since 2006, the 

option of submitting admission 

applications for merchandise reported 

to CBP via truck manifest has been 

available as well. 

The notice described the test program 

in detail, identified the regulatory 

provisions suspended for the test, and 

set forth the test commencement date as 

no earlier than September 30, 2005, 

with a test period of approximately 6 

months. The test notice also set forth the 

prototype procedures and listed the 

required data elements which must be 

provided to CBP when filing an FTZ 

admission application. Participants 

were required to participate in an 

evaluation of this test to take place at 

the end of the 6-month period. 

Due to low participation in the test 

program and insufficient data collected, 

CBP announced on March 26, 2007 in 

the Federal Register (72 FR 14128) that 

the test should be run again. The new 

test program was intended to encourage 

greater participation by the trade and 

thereby provide more meaningful data 

to CBP to assess the feasibility of 

implementing the test program on a 

permanent basis. A final evaluation was 

to take place at the end of the test 

period. 

B. Transition Into the Automated 

Commercial Environment (ACE) 

ACE, the planned successor to ACS, is 

an automated and electronic system for 

processing commercial trade data 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. ABI enables members 

of the trade community to file 

electronically required import data with 

CBP and transfers that data to ACE. 

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 electronic data 

interchange (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 by the end of 

February 2016. 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. The first phase of the transition 

was announced in a Federal Register 

notice published on February 29, 2016 

(81 FR 10264). The second phase was 

announced in a Federal Register notice 

published on May 16, 2016 (81 FR 

30320). The third phase of the transition 

was announced in a Federal Register 

notice published on May 23, 2016 (81 

FR 32339). This notice announces a 

further transition as CBP is transitioning 

the FTZ admission application test from 

ACS to ACE. 

II. Test Modifications and Transition 

Into ACE 

This test notice announces the 

transition of the test program from ACS 

to ACE, a clarification regarding data 

elements that are required, and the 

extension of the duration of the test 

program. Each change is discussed 

separately below. Except to the extent 

expressly announced or modified by 

this document, all aspects, rules, terms, 

requirements, obligations and 

conditions announced in previous 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
38924 Federal Register / Vol. 82, No. 157 / Wednesday, August 16, 2017 / Notices 

notices regarding the test remain in 

effect. 

A. Mandatory Use of ACE for Electronic 

Filing of FTZ Admission Applications 

This document announces that 

beginning on September 16, 2017, all 

test participants must file electronic 

FTZ admission applications in ACE. All 

other filers will continue to submit FTZ 

admission applications to CBP on paper. 

As of September 16, 2017, ACS is 

decommissioned for the electronic filing 

of these applications. 

B. Clarification 

This document announces a 

clarification to the notice published in 

the Federal Register on August 19, 

2005. The list of data elements which 

test participants must provide CBP 

when filing an electronic FTZ 

admission application contained in that 

notice inadvertently failed to include 

the data element ‘‘Zone ID’’ which 

replaced the ‘‘Zone Number and 

Location (Address)’’ requirement on the 

paper CBP Form 214 (Question 1). This 

notice clarifies that the list of data 

elements required for the electronic FTZ 

admission application must include the 

‘‘Zone ID’’. Test participants have been 

submitting this data element since the 

inception of the test program. 

Further, this document reminds test 

participants that they must provide the 

data elements ‘‘Steel Import License 

Number’’ and ‘‘Kimberley Process 

Certificate Number’’ to CBP, as 

applicable, when filing an electronic 

FTZ admission application, as required 

by CSMS message (CSMS #14–000641) 

dated December 15, 2014. Under 19 CFR 

12.145 and 360.101(c), the steel import 

license number needs to be provided on 

CBP Form 214 at the time of filing under 

19 CFR part 146, in the case of 

merchandise admitted into an FTZ. The 

Kimberley Process Certificate must be 

presented in connection with an 

importation of rough diamonds into an 

FTZ and exportation out of an FTZ if 

demanded by a CBP official according to 

31 CFR 592.404 and 592.301. Pursuant 

to 31 CFR 592.301 Note 3, when making 

entry of a shipment of rough diamonds 

via ABI, the customs broker, importer or 

filer must submit the unique identifying 

number of the Kimberley Process 

Certificate accompanying the shipment. 

C. Extension of Program 

The test has been running 

continuously since March 26, 2007. CBP 

announces in this notice that it is 

extending the test until a decision is 

reached to implement the program on a 

permanent basis and/or to conclude the 

test. The new test program is intended 

to encourage greater participation in the 

test program by the trade and thereby 

provide CBP with more meaningful data 

by which to assess the feasibility of 

implementing the program on a 

permanent basis. CBP will inform the 

public of its decision to conclude the 

test program, and if the test program 

was successful, to implement it on a 

permanent basis, by way of 

announcement in the Federal Register. 

Dated: August 10, 2017. 

Todd C. Owen, 

Executive Assistant Commissioner, Office of 

Field Operations. 

[FR Doc. 2017–17320 Filed 8–15–17; 8:45 am] 

BILLING CODE 9111–14–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 Duty Deferral Entry and 

Entry Summary Filings 

AGENCY: U.S. Customs and Border 

Protection, Department of Homeland 

Security. 

ACTION: General notice. 

SUMMARY: On August 30, 2016, U.S. 

Customs and Border Protection (CBP) 

published a notice in the Federal 

Register announcing plans to make the 

Automated Commercial Environment 

(ACE) the sole electronic data 

interchange (EDI) system authorized by 

the Commissioner of CBP for processing 

electronic drawback and duty deferral 

entry and entry summary filings. The 

date for the changes announced in that 

notice had been delayed indefinitely. 

This notice announces the new date for 

the transition of duty deferral entry and 

entry summary filings. The transition 

for processing electronic drawback 

filings will be announced in the Federal 

Register at a later date. 

DATES: As of September 16, 2017, ACE 

will be the sole CBP-authorized EDI 

system for processing duty deferral 

entry and entry summary filings, and 

the Automated Commercial System 

(ACS) will no longer be a CBPauthorized EDI system for processing 

these filings. 

FOR FURTHER INFORMATION CONTACT: 

Questions related to this notice may be 

emailed to ASKACE@cbp.dhs.gov with 

the subject line identifier reading ‘‘ACS 

to ACE Duty Deferral Entry and Entry 

Summary Filings Transition.’’ 

SUPPLEMENTARY INFORMATION: On August 

30, 2016, U.S. Customs and Border 

Protection (CBP) published a notice in 

the Federal Register (81 FR 59644) 

announcing plans to make the 

Automated Commercial Environment 

(ACE) the sole electronic data 

interchange (EDI) system authorized by 

the Commissioner of CBP for processing 

electronic drawback and duty deferral 

entry and entry summary filings, with 

an effective date of October 1, 2016. The 

document also announced that, on 

October 1, 2016, the Automated 

Commercial System (ACS) would no 

longer be a CBP-authorized EDI system 

for purposes of processing these 

electronic filings. Finally, the notice 

announced a name change for the ACE 

filing code for duty deferral and the 

creation of a new ACE filing code for all 

electronic drawback filings, replacing 

the six distinct drawback codes 

previously filed in ACS. On October 3, 

2016, CBP published a notice in the 

Federal Register (81 FR 68023) 

announcing that the effective date for 

these changes would be delayed until 

further notice. Thereafter, on December 

12, 2016, CBP published a notice in the 

Federal Register (81 FR 89486) 

announcing that the new effective date 

for the transition would be January 14, 

2017. On January 17, 2017, CBP 

published an additional notice in the 

Federal Register (82 FR 4900) delaying 

the effective date for the transition until 

further notice. Then, on June 8, 2017, 

CBP published a notice in the Federal 

Register (82 FR 26698) announcing that 

the new effective date for the transition 

would be July 8, 2017. Thereafter, on 

June 30, 2017, CBP published a notice 

in the Federal Register (82 FR 29910) 

delaying the effective date for the 

transition until further notice. 

This notice announces that beginning 

September 16, 2017, ACE will become 

the sole CBP-authorized EDI system for 

duty deferral entry and entry summary 

filings, and ACS will no longer be a 

CBP-authorized EDI system for purposes 

of processing these electronic filings. 

The transition date for processing 

electronic drawback filings will be 

announced in a separate Federal 

Register Notice at a later date. 

Dated: August 11, 2017. 

Kevin K. McAleenan, 

Acting Commissioner, U.S. Customs and 

Border Protection. 

[FR Doc. 2017–17319 Filed 8–15–17; 8:45 am] 

BILLING CODE 9111–14–P 


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