[Federal Register: February 25, 2003 (Volume 68, Number 37)]
[Notices]               
[Page 8812-8813]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25fe03-98]                         

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DEPARTMENT OF THE TREASURY

Customs Service

 
Announcement of Changes to the Eligibility Requirements and 
Application Process for Participation in Remote Location Filing 
Prototype Two

AGENCY: Customs Service, Department of the Treasury.

ACTION: General notice.

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SUMMARY: This notice announces two changes to Remote Location Filing 
Prototype Two. One change provides that line release entries are no 
longer permitted under this prototype. The other change simplifies the 
application process for participation in the prototype to a one-step 
procedure that will consolidate information collection and expedite 
application processing at Customs Headquarters. Current RLF filers do 
not need to re-apply to Customs Headquarters to continue participation 
in RLF Prototype Two, nor will they be required to submit additional 
port applications.

DATES: The changes to Customs second prototype of the Remote Location 
Filing program will go into effect February 25, 2003. Comments 
concerning these changes, or any other aspect of RLF, may be submitted 
to Customs at any time. Applications for participation in RLF Prototype 
Two will be accepted throughout the duration of the test program.

ADDRESSES: Written comments and applications to participate in the 
prototype should be addressed to the Remote Filing Team, Office of 
Field Operations, U.S. Customs Service, 1300 Pennsylvania Avenue, NW., 
Room 5.2-B, Washington, DC 20229. Comments may also be submitted via e-
mail to Lisa.k.santana@customs.treas.gov.

FOR FURTHER INFORMATION CONTACT: For systems or automation issues: 
Eloisa Calafell (305) 869-2780 or Jackie Jegels (301) 893-6717. For 
operational or policy issues: Lisa K. Santana at (202) 927-4342 or via 
e-mail at Lisa.k.santana@customs.treas.gov.

SUPPLEMENTARY INFORMATION:

Background

RLF Authorized by the National Customs Automation Program (NCAP)

    Title VI of the North American Free Trade Agreement Implementation 
Act, Pub. L. 103-182, 107 Stat. 2057 (December 8, 1993), contains 
provisions pertaining to Customs Modernization (107 Stat. 2170). 
Subpart B of Title VI of the Act concerns the National Customs 
Automation Program (NCAP), an electronic system for the processing of 
commercial imports. Within subpart B, section 631 of the Act added 
section 414 (19 U.S.C. 1414), which provides for Remote Location Filing 
(RLF), to the Tariff Act of 1930, as amended. RLF permits an eligible 
NCAP participant to elect to file electronically a formal or informal 
consumption entry with Customs from a remote location within the 
Customs territory of the United States other than the port of arrival, 
or from within the port of arrival with a requested designated 
examination site outside the port of arrival.

RLF Prototype Two

    In accordance with Sec.  101.9(b) of the Customs Regulations (19 
CFR 101.9(b)), Customs has developed and tested two RLF prototypes.
    RLF Prototype Two commenced on January 1, 1997. See document 
published in the Federal Register (61 FR 60749) on November 29, 1996. 
On December 7, 1998, Customs announced in the Federal Register (63 FR 
67511) that Prototype Two would remain in effect until Customs 
concluded the prototype by notice in the Federal Register. On July 6, 
2001, Customs announced in the Federal Register (66 FR 35693) changes 
to the eligibility requirements for participation in RLF Prototype Two 
which mandated that customs brokers hold a national permit. That notice 
also announced that the provisions of part 111 of the Customs 
Regulations (which set forth the regulations providing for the 
licensing

[[Page 8813]]

of and granting of permits to customs brokers) were applicable to 
customs brokers participating in the RLF prototype. The July 6, 2001, 
document noted that all of the other RLF Prototype Two terms and 
conditions set forth in the December 7, 1998 document remained in 
effect.

Changes to RLF Prototype Two

    Since the inception of RLF Prototype Two, there have been 
significant changes made to the RLF application process, as well as to 
the prototype's eligibility requirements. As a result, much of the 
information contained in previous Federal Register notices regarding 
the application process, participant selection, and eligibility 
requirements needs to be updated or is now obsolete. For these reasons, 
this notice contains a comprehensive and updated list of current RLF 
eligibility requirements and a description of the new one-step 
application process. Therefore, information contained in this notice 
regarding these subject areas supercedes the information set forth in 
the sections entitled ``Eligibility Criteria,'' ``Prototype Two 
Applications,'' and ``Basis for Participant Selection'' in the above-
referenced Federal Register notices. All of the other RLF Prototype Two 
terms and conditions set forth in the above-referenced Federal Register 
notices remain in effect, except those explicitly changed by this 
document and described below.
I. No Line Release Entries Permitted Under RLF Prototype Two
    RLF participants may not file using paper invoices or line release 
for RLF transactions. This prohibition is necessary to reflect the fact 
that RLF participants must possess a national permit and line release 
programs require a local permit.
II. RLF Prototype Two Eligibility Criteria
    To be eligible to participate in RLF Prototype Two, a filer must 
have proven capability to provide electronically, on an entry-by-entry 
basis, the following: entry; entry summary; invoice information using 
the Electronic Invoice Program (EIP); and the payment of duties, fees, 
and taxes through the Automated Clearinghouse (ACH). See 19 U.S.C. 
1414(a)(2). EIP includes modules of the Automated Broker Interface 
(ABI) that allow entry filers to electronically transmit detailed entry 
data and includes Automated Invoice Interface (AII) and Electronic Data 
Interchange for Administration, Commerce and Transportation (EDIFACT). 
In addition, the following requirements and conditions apply:
    1. RLF participants must be operational on the ABI (see 19 CFR part 
143, subpart A);
    2. RLF participants must be operational on the ACH 30 days before 
applying for RLF (see 19 CFR 24.25);
    3. RLF participants must be operational on the EIP prior to 
applying for RLF;
    4. RLF participants must possess a National Permit (see 19 CFR 
111.19(f));
    5. The remote Customs location(s) to which a prospective RLF 
participant wishes to transmit RLF information must have received EIP/
RLF training.
    A current listing of RLF-trained locations, as well as other RLF 
information and updates, is available on the Customs Electronic 
Bulletin Board (CEBB), the Customs Administrative Message System 
(CAMS), and on the Customs Internet Web site at http://www.customs.gov;

(CAMS), and on the Customs Internet Web site at http://www.customs.gov;

    6. RLF participants must maintain a continuous bond which meets or 
exceeds the national guidelines for bond sufficiency;
    7. Only entry type 01 (consumption) and entry type 11 (informal) 
will be accepted for RLF;
    8. Cargo release must be certified from the entry summary 
transaction data (EI);
    9. RLF participants may not file using paper invoices or line 
release for RLF transactions;

    (Note: EIP participants will be allowed to file Immediate 
Delivery releases for direct arrival road and rail freight at the 
land border using paper invoices under Line Release, Border Cargo 
Selectivity (BCS), or Cargo Selectivity (CS), in accordance with 19 
CFR 142.21(a).)

    10. Cargo that has been moved in-bond is not eligible for RLF but 
may be eligible for clearance under EIP; and
    11. RLF participants must use other government agency (OGA) 
interfaces where available. It is the filer's responsibility to ensure 
that all OGA requirements are met for each entry filed under RLF. If an 
electronic interface is not available, contact your local RLF 
coordinator for possible alternative filing options.
    In addition to the eligibility requirements described above, all 
RLF participants are reminded of their responsibility to provide 
accurate information to Customs, and of their responsibility to adhere 
to all laws, regulations, rules, restrictions and eligibility criteria 
that pertain to this program. Any RLF participant who violates any of 
the above conditions will be subject to all penalties available under 
the law including possible suspension from the prototype.
    Participants are further reminded that participation in RLF 
Prototype Two is not confidential. Lists of approved participants will 
be made available to the public.

RLF Prototype Two Application Process

    Applications for participation in RLF Prototype Two will be 
accepted on an ongoing basis and should be submitted to the Remote 
Filing Team, U.S. Customs Service, 1300 Pennsylvania Avenue, NW., Room 
5.2B, Washington, DC 20229. Applications must contain the following 
information:
    1. Filer name, point of contact, address, filer code and IRS 
;
    2. Site(s) from which RLF transmission originates (include port 
code);
    3. Name of port(s) (including port code) to which RLF electronic 
filings will be transmitted; and
    4. A sample of 5 entries filed using the Automated Invoice 
Interface (AII)/EIP, of varying complexity, that include: multiple 
lines, multiple invoices and an adjustment to the entered value 
(Delivered Duty Paid (DDP) and Cost, Insurance and Freight (CIF)).
    After an application has been reviewed and evaluated, the applicant 
will receive an approval or denial letter from the Remote Filing Team, 
Customs Headquarters. An applicant will be permitted to begin filing 
entries to a remote location upon receipt of a letter from Customs 
granting approval to participate in RLF. If an approved RLF participant 
seeks to add additional ports or importers, they must notify their ABI 
client representative or the Headquarters coordinator for profile 
updates.

    Dated: February 13, 2003.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 03-4407 Filed 2-24-03; 8:45 am]

BILLING CODE 4820-02-P