[Federal Register: July 9, 2004 (Volume 69, Number 131)]
[Notices]               
[Page 41543-41547]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jy04-104]                         

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

DEPARTMENT OF HOMELAND SECURITY

Customs and Border Protection

 
Undertakings of the Department of Homeland Security Bureau of 
Customs and Border Protection Regarding the Handling of Passenger Name 
Record Data

AGENCY: Customs and Border Protection; Department of Homeland Security.

ACTION: General notice.

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

SUMMARY: On May 11, 2004, the Department of Homeland Security (DHS), 
Customs and Border Protection (CBP) issued to the European Union (EU) a 
document containing a set of representations regarding the manner in 
which CBP will handle certain Passenger Name Record (PNR) data relating 
to flights between the United States and EU member states. The document 
provides the framework within which the EU was able to approve several 
measures which the EU requires to permit the transfer of such PNR data 
to CBP, consistent with EU law. On May 17, 2004, the European 
Commission announced that it had issued an ``adequacy finding'' for the 
transfer of such PNR data to CBP, and a related international agreement 
was also approved for execution by the European Council. DHS wishes to 
provide the public with notice of the issuance of the document upon 
which the EU has based these very important decisions.

FOR FURTHER INFORMATION CONTACT: Erik Shoberg, Office of Field 
Operations, (202) 927-0530.

SUPPLEMENTARY INFORMATION:

Background

    On May 11, 2004, the Department of Homeland Security (DHS), Customs 
and Border Protection (CBP) issued to the European Union (EU) the 
document set forth below (the ``Undertakings''). These Undertakings 
contain a set of representations regarding the manner in which CBP will 
handle certain Passenger Name Record (PNR) data relating to flights 
between the United States and EU member states, access to which is 
required under U.S. law (49 U.S.C. 44909) and the implementing 
regulations (19 CFR 122.49b). These Undertakings provide the framework 
within which the EU was able to approve several measures which the EU 
requires to permit the transfer of such PNR data to CBP, consistent 
with EU law. On May 17, 2004, the European Commission announced that it 
had issued an ``adequacy finding'' for the transfer of such PNR data to 
CBP, and a related international agreement was also approved for 
execution by the European Council. DHS wishes to provide the public 
with notice of the issuance of this document upon which the EU has 
based these very important decisions.

    Dated: July 6, 2004.
Tom Ridge,
Secretary, Department of Homeland Security.

Undertakings of the Department of Homeland Security Bureau of Customs 
and Border Protection (CBP)

    In support of the plan of the European Commission (Commission) to 
exercise the powers conferred on it by Article 25(6) of Directive 95/
46/EC (the Directive) and to adopt a decision recognizing the 
Department of Homeland Security Bureau of Customs and Border Protection 
(CBP) as providing adequate protection for the purposes of air carrier 
transfers of Passenger \1\ Name Record (PNR) data which may fall within 
the scope of the Directive, CBP undertakes as follows:
---------------------------------------------------------------------------

    \1\ For the purposes of these Undertakings, the terms 
``passenger'' and ``passengers'' shall include crew members.
---------------------------------------------------------------------------

Legal Authority To Obtain PNR

    (1) By legal statute (title 49, United States Code, section 
44909(c)(3)) and its implementing (interim) regulations (title 19, Code 
of Federal Regulations, Sec.  122.49b), each air carrier operating 
passenger flights in foreign air transportation to or from the United 
States, must provide CBP (formerly, the U.S. Customs Service) with 
electronic access to PNR data to the extent it is collected and 
contained in the air carrier's automated reservation/departure control 
systems (``reservation systems'').

Use of PNR Data by CBP

    (2) Most data elements contained in PNR data can be obtained by CBP 
upon examining a data subject's airline ticket and other travel 
documents pursuant to its normal border control authority, but the 
ability to receive this data electronically will significantly enhance 
CBP's ability to facilitate bona fide travel and conduct efficient and 
effective advance risk assessment of passengers.
    (3) PNR data is used by CBP strictly for purposes of preventing and 
combating: (1) Terrorism and related crimes; (2) other serious crimes, 
including organized crime, that are transnational in nature; and (3) 
flight from warrants or custody for the crimes described above. Use of 
PNR data for these purposes permits CBP to focus its resources on high 
risk concerns, thereby facilitating and safeguarding bona fide travel.

Data Requirements

    (4) Data elements which CBP requires are listed herein at 
Attachment ``A''.

[[Page 41544]]

(Such identified elements are hereinafter referred to as ``PNR'' for 
purposes of these Undertakings). Although CBP requires access to each 
of those thirty-four (34) data elements listed in Attachment ``A'', CBP 
believes that it will be rare that an individual PNR will include a 
full set of the identified data. In those instances where the PNR does 
not include a full set of the identified data, CBP will not seek direct 
access from the air carrier's reservation system to other PNR data 
which are not listed on Attachment ``A''.
    (5) With respect to the data elements identified as ``OSI'' and 
``SSI/SSR'' (commonly referred to as general remarks and open fields), 
CBP's automated system will search those fields for any of the other 
data elements identified in Attachment ``A''. CBP personnel will not be 
authorized to manually review the full OSI and SSI/SSR fields unless 
the individual that is the subject of a PNR has been identified by CBP 
as high risk in relation to any of the purposes identified in paragraph 
3 hereof.
    (6) Additional personal information sought as a direct result of 
PNR data will be obtained from sources outside the government only 
through lawful channels, including through the use of mutual legal 
assistance channels where appropriate, and only for the purposes set 
forth in paragraph 3 hereof. For example, if a credit card number is 
listed in a PNR, transaction information linked to that account may be 
sought, pursuant to lawful process, such as a subpoena issued by a 
grand jury or a court order, or as otherwise authorized by law. In 
addition, access to records related to e-mail accounts derived from a 
PNR will follow U.S. statutory requirements for subpoenas, court 
orders, warrants, and other processes as authorized by law, depending 
on the type of information being sought.
    (7) CBP will consult with the European Commission regarding 
revision of the required PNR data elements (Attachment ``A''), prior to 
effecting any such revision, if CBP becomes aware of additional PNR 
fields that airlines may add to their systems which would significantly 
enhance CBP's ability to conduct passenger risk assessments or if 
circumstances indicate that a previously non-required PNR field will be 
needed to fulfill the limited purposes referred to in paragraph 3 of 
these Undertakings.
    (8) CBP may transfer PNRs on a bulk basis to the Transportation 
Security Administration (TSA) for purposes of TSA's testing of its 
Computer Assisted Passenger Prescreening System II (CAPPS II). Such 
transfers will not be made until PNR data from U.S. domestic flights 
has first been authorized for testing. PNR data transferred under this 
provision will not be retained by TSA or any other parties directly 
involved in the tests beyond the period necessary for testing purposes, 
or be transferred to any other third party \2\. The purpose of the 
processing is strictly limited to testing the CAPPS II system and 
interfaces, and, except in emergency situations involving the positive 
identification of a known terrorist or individual with established 
connections to terrorism, is not to have any operational consequences. 
Under the provision requiring an automated filtering method described 
in paragraph 10, CBP will have filtered and deleted ``sensitive'' data 
before transferring any PNRs to TSA on a bulk basis under this 
paragraph.
---------------------------------------------------------------------------

    \2\ For purposes of this provision, CBP is not considered a 
party directly involved in the CAPPS II testing or a ``third 
party.''
---------------------------------------------------------------------------

Treatment of ``Sensitive'' Data

    (9) CBP will not use ``sensitive'' data (i.e., personal data 
revealing racial or ethnic origin, political opinions, religious or 
philosophical beliefs, trade-union membership, and data concerning the 
health or sex life of the individual) from the PNR, as described below.
    (10) CBP will implement, with the least possible delay, an 
automated system which filters and deletes certain ``sensitive'' PNR 
codes and terms which CBP has identified in consultation with the 
European Commission.
    (11) Until such automated filters can be implemented CBP represents 
that it does not and will not use ``sensitive'' PNR data and will 
undertake to delete ``sensitive'' data from any discretionary 
disclosure of PNR under paragraphs 28-34.\3\
---------------------------------------------------------------------------

    \3\ Prior to CBP's implementation of automated filters (as 
referenced in paragraph 10 hereof), if ``sensitive'' data exists in 
a PNR which is the subject of a non-discretionary disclosure by CBP 
as described in paragraph 35 hereof, CBP will make every effort to 
limit the release of ``sensitive'' PNR data, consistent with U.S. 
law.
---------------------------------------------------------------------------

Method of Accessing PNR Data

    (12) With regard to the PNR data which CBP accesses (or receives) 
directly from the air carrier's reservation systems for purposes of 
identifying potential subjects for border examination, CBP personnel 
will only access (or receive) and use PNR data concerning persons whose 
travel includes a flight into or out of \4\ the United States.
---------------------------------------------------------------------------

    \4\ This would include persons transiting through the United 
States.
---------------------------------------------------------------------------

    (13) CBP will ``pull'' passenger information from air carrier 
reservation systems until such time as air carriers are able to 
implement a system to ``push'' the data to CBP.
    (14) CBP will pull PNR data associated with a particular flight no 
earlier than 72 hours prior to the departure of that flight, and will 
re-check the systems no more than three (3) times between the initial 
pull, the departure of the flight from a foreign point and the flight's 
arrival in the United States, or between the initial pull and the 
departure of the flight from the United States, as applicable, to 
identify any changes in the information. In the event that the air 
carriers obtain the ability to ``push'' PNR data, CBP will need to 
receive the data 72 hours prior to departure of the flight, provided 
that all changes to the PNR data which are made between that point and 
the time of the flight's arrival in or departure from the U.S., are 
also pushed to CBP.\5\ In the unusual event that CBP obtains advance 
information that person(s) of specific concern may be travelling on a 
flight to, from or through the U.S., CBP may pull (or request a 
particular push) of PNR data prior to 72 hours before departure of the 
flight to ensure proper enforcement action may be taken when essential 
to prevent or combat an offense enumerated in paragraph 3 hereof. To 
the extent practicable, in such instances where PNR data must be 
accessed by CBP prior to 72 hours before the departure of the flight, 
CBP will utilize customary law enforcement channels.
---------------------------------------------------------------------------

    \5\ In the event that the air carriers agree to push the PNR 
data to CBP, the agency will engage in discussions with the air 
carriers regarding the possibility of pushing PNR data at periodic 
intervals between 72 hours before departure of the flight from a 
foreign point and the flight's arrival in the United States, or 
within 72 hours before the departure of the flight from the United 
States, as applicable. CBP seeks to utilize a method of pushing the 
necessary PNR data that meets the agency's needs for effective risk 
assessment, while minimizing the economic impact upon air carriers.
---------------------------------------------------------------------------

Storage of PNR Data

    (15) Subject to the approval of the National Archives and Records 
Administration (44 U.S.C. 2101, et seq.), CBP will limit on-line access 
to PNR data to authorized CBP users \6\ for a period of seven (7) days, 
after which the number of officers authorized to access the PNR data 
will be even further limited for a period of three years and

[[Page 41545]]

6 months (3.5 years) from the date the data is accessed (or received) 
from the air carrier's reservation system. After 3.5 years, PNR data 
that has not been manually accessed during that period of time, will be 
destroyed. PNR data that has been manually accessed during the initial 
3.5 year period will be transferred by CBP to a deleted record file,\7\ 
where it will remain for a period of eight (8) years before it is 
destroyed. This schedule, however, would not apply to PNR data that is 
linked to a specific enforcement record (such data would remain 
accessible until the enforcement record is archived). With respect to 
PNR which CBP accesses (or receives) directly from air carrier 
reservation systems during the effective dates of these Undertakings, 
CBP will abide by the retention policies set forth in the present 
paragraph, notwithstanding the possible expiration of the Undertakings 
pursuant to paragraph 46 herein.
---------------------------------------------------------------------------

    \6\ These authorized CBP users would include employees assigned 
to analytical units in the field offices, as well as employees 
assigned to the National Targeting Center. As indicated previously, 
persons charged with maintaining, developing or auditing the CBP 
database will also have access to such data for those limited 
purposes.
    \7\ Although the PNR record is not technically deleted when it 
is transferred to the Deleted Record File, it is stored as raw data 
(not a readily searchable form and, therefore, of no use for 
``traditional'' law enforcement investigations) and is only 
available to authorized personnel in the Office of Internal Affairs 
for CBP (and in some cases the Office of the Inspector General in 
connection with audits) and personnel responsible for maintaining 
the database in CBP's Office of Information Technology, on a ``need 
to know'' basis.
---------------------------------------------------------------------------

CBP Computer System Security

    (16) Authorized CBP personnel obtain access to PNR through the 
closed CBP intranet system which is encrypted end-to-end and the 
connection is controlled by the Customs Data Center. PNR data stored in 
the CBP database is limited to ``read only'' access by authorized 
personnel, meaning that the substance of the data may be 
programmatically reformatted, but will not be substantively altered in 
any manner by CBP once accessed from an air carrier's reservation 
system.
    (17) No other foreign, Federal, State or local agency has direct 
electronic access to PNR data through CBP databases (including through 
the Interagency Border Inspection System (IBIS)).
    (18) Details regarding access to information in CBP databases (such 
as who, where, when (date and time) and any revisions to the data) are 
automatically recorded and routinely audited by the Office of Internal 
Affairs to prevent unauthorized use of the system.
    (19) Only certain CBP officers, employees or information technology 
contractors \8\ (under CBP supervision) who have successfully completed 
a background investigation, have an active, password-protected account 
in the CBP computer system, and have a recognized official purpose for 
reviewing PNR data, may access PNR data.
---------------------------------------------------------------------------

    \8\ Access by ``contractors'' to any PNR data contained in the 
CBP computer systems would be confined to persons under contract 
with CBP to assist in the maintenance or development of CBP's 
computer system.
---------------------------------------------------------------------------

    (20) CBP officers, employees and contractors are required to 
complete security and data privacy training, including passage of a 
test, on a biennial basis. CBP system auditing is used to monitor and 
ensure compliance with all privacy and data security requirements.
    (21) Unauthorized access by CBP personnel to air carrier 
reservation systems or the CBP computerized system which stores PNR is 
subject to strict disciplinary action (which may include termination of 
employment) and may result in criminal sanctions being imposed (fines, 
imprisonment of up to one year, or both) (see title 18, United States 
Code, section 1030).
    (22) CBP policy and regulations also provide for stringent 
disciplinary action (which may include termination of employment) to be 
taken against any CBP employee who discloses information from CBP's 
computerized systems without official authorization (title 19, Code of 
Federal Regulations, Sec.  103.34).
    (23) Criminal penalties (including fines, imprisonment of up to one 
year, or both) may be assessed against any officer or employee of the 
United States for disclosing PNR data obtained in the course of his 
employment, where such disclosure is not authorized by law (see title 
18, United States Code, sections 641, 1030, 1905).

CBP Treatment and Protection of PNR Data

    (24) CBP treats PNR information regarding persons of any 
nationality or country of residence as law enforcement sensitive, 
confidential personal information of the data subject, and confidential 
commercial information of the air carrier, and, therefore, would not 
make disclosures of such data to the public, except as in accordance 
with these Undertakings or as otherwise required by law.
    (25) Public disclosure of PNR data is generally governed by the 
Freedom of Information Act (FOIA) (title 5, United States Code, section 
552) which permits any person (regardless of nationality or country of 
residence) access to a U.S. Federal agency's records, except to the 
extent such records (or a portion thereof) are protected from public 
disclosure by an applicable exemption under the FOIA. Among its 
exemptions, the FOIA permits an agency to withhold a record (or a 
portion thereof) from disclosure where the information is confidential 
commercial information, where disclosure of the information would 
constitute a clearly unwarranted invasion of personal privacy, or where 
the information is compiled for law enforcement purposes, to the extent 
that disclosure may reasonably be expected to constitute an unwarranted 
invasion of personal privacy (title 5, United States Code, sections 
552(b)(4), (6), (7)(C)).
    (26) CBP regulations (title 19, Code of Federal Regulations, 
Sec. 103.12), which govern the processing of requests for information 
(such as PNR data) pursuant to the FOIA, specifically provide that 
(subject to certain limited exceptions in the case of requests by the 
data subject) the disclosure requirements of the FOIA are not 
applicable to CBP records relating to: (1) Confidential commercial 
information; (2) material involving personal privacy where the 
disclosure would constitute a clearly unwarranted invasion of personal 
privacy; and (3) information compiled for law enforcement purposes, 
where disclosure could reasonably be expected to constitute an 
unwarranted invasion of personal privacy.\9\
---------------------------------------------------------------------------

    \9\ CBP would invoke these exemptions uniformly, without regard 
to the nationality or country of residence of the subject of the 
data.
---------------------------------------------------------------------------

    (27) CBP will take the position in connection with any 
administrative or judicial proceeding arising out of a FOIA request for 
PNR information accessed from air carriers, that such records are 
exempt from disclosure under the FOIA.

Transfer of PNR Data to Other Government Authorities

    (28) With the exception of transfers between CBP and TSA pursuant 
to paragraph 8 herein, Department of Homeland Security (DHS) components 
will be treated as ``third agencies'', subject to the same rules and 
conditions for sharing of PNR data as other government authorities 
outside DHS.
    (29) CBP, in its discretion, will only provide PNR data to other 
government authorities, including foreign government authorities, with 
counter-terrorism or law enforcement functions, on a case-by-case 
basis, for purposes of preventing and combating offenses identified in 
paragraph 3 herein. (Authorities with whom CBP may share such data 
shall hereinafter be referred to as the ``Designated Authorities'').
    (30) CBP will judiciously exercise its discretion to transfer PNR 
data for the stated purposes. CBP will first determine if the reason 
for disclosing the PNR data to another Designated Authority fits within 
the stated purpose

[[Page 41546]]

(see paragraph 29 herein). If so, CBP will determine whether that 
Designated Authority is responsible for preventing, investigating or 
prosecuting the violations of, or enforcing or implementing, a statute 
or regulation related to that purpose, where CBP is aware of an 
indication of a violation or potential violation of law. The merits of 
disclosure will need to be reviewed in light of all the circumstances 
presented.
    (31) For purposes of regulating the dissemination of PNR data which 
may be shared with other Designated Authorities, CBP is considered the 
``owner'' of the data and such Designated Authorities are obligated by 
the express terms of disclosure to: (1) Use the PNR data only for the 
purposes set forth in paragraph 29 or 34 herein, as applicable; (2) 
ensure the orderly disposal of PNR information that has been received, 
consistent with the Designated Authority's record retention procedures; 
and (3) obtain CBP's express authorization for any further 
dissemination. Failure to respect the conditions for transfer may be 
investigated and reported by the DHS Chief Privacy Officer and may make 
the Designated Authority ineligible to receive subsequent transfers of 
PNR data from CBP.
    (32) Each disclosure of PNR data by CBP will be conditioned upon 
the receiving agency's treatment of this data as confidential 
commercial information and law enforcement sensitive, confidential 
personal information of the data subject, as identified in paragraphs 
25 and 26 hereof, which should be treated as exempt from disclosure 
under the Freedom of Information Act (5 U.S.C. 552). Further, the 
recipient agency will be advised that further disclosure of such 
information is not permitted without the express prior approval of CBP. 
CBP will not authorize any further transfer of PNR data for purposes 
other than those identified in paragraphs 29, 34 or 35 herein.
    (33) Persons employed by such Designated Authorities who without 
appropriate authorization disclose PNR data, may be liable for criminal 
sanctions (title 18, United States Code, sections 641, 1030, 1905).
    (34) No statement herein shall impede the use or disclosure of PNR 
data to relevant government authorities, where such disclosure is 
necessary for the protection of the vital interests of the data subject 
or of other persons, in particular as regards significant health risks. 
Disclosures for these purposes will be subject to the same conditions 
for transfers set forth in paragraphs 31 and 32 of these Undertakings.
    (35) No statement in these Undertakings shall impede the use or 
disclosure of PNR data in any criminal judicial proceedings or as 
otherwise required by law. CBP will advise the European Commission 
regarding the passage of any U.S. legislation which materially affects 
the statements made in these Undertakings.

Notice, Access and Opportunities for Redress for PNR Data Subjects

    (36) CBP will provide information to the traveling public regarding 
the PNR requirement and the issues associated with its use (i.e., 
general information regarding the authority under which the data is 
collected, the purpose for the collection, protection of the data, data 
sharing, the identity of the responsible official, procedures available 
for redress and contact information for persons with questions or 
concerns, etc., for posting on CBP's Web site, in travel pamphlets, 
etc.).
    (37) Requests by the data subject (also known as ``first party 
requesters'') to receive a copy of PNR data contained in CBP databases 
regarding the data subject are processed under the Freedom of 
Information Act (FOIA). Such requests may be addressed to: Freedom of 
Information Act (FOIA) Request, U.S. Customs and Border Protection, 
1300 Pennsylvania Avenue, NW., Washington, DC 20229, if by mail; or 
such request may be delivered to the Disclosure Law Officer, U.S. 
Customs and Border Protection, Headquarters, Washington, DC. For 
further information regarding the procedures for making FOIA requests 
are contained in Sec.  103.5 of title 19 of the U.S. Code of Federal 
Regulations. In the case of a first-party request, the fact that CBP 
otherwise considers PNR data to be confidential personal information of 
the data subject and confidential commercial information of the air 
carrier will not be used by CBP as a basis under FOIA for withholding 
PNR data from the data subject.
    (38) In certain exceptional circumstances, CBP may exercise its 
authority under FOIA to deny or postpone disclosure of all (or, more 
likely, part) of the PNR record to a first party requester, pursuant to 
title 5, United States Code, section 552(b) (e.g., if disclosure under 
FOIA ``could reasonably be expected to interfere with enforcement 
proceedings'' or ``would disclose techniques and procedures for law 
enforcement investigations * * * [which] could reasonably be expected 
to risk circumvention of the law''). Under FOIA, any requester has the 
authority to administratively and judicially challenge CBP's decision 
to withhold information (see 5 U.S.C. 552(a)(4)(B); 19 CFR 103.7-
103.9).
    (39) CBP will undertake to rectify \10\ data at the request of 
passengers and crewmembers, air carriers or Data Protection Authorities 
(DPAs) in the EU Member States (to the extent specifically authorized 
by the data subject), where CBP determines that such data is contained 
in its database and a correction is justified and properly supported. 
CBP will inform any Designated Authority which has received such PNR 
data of any material rectification of that PNR data.
---------------------------------------------------------------------------

    \10\ By ``rectify'', CBP wishes to make clear that it will not 
be authorized to revise the data within the PNR record that it 
accesses from the air carriers. Rather, a separate record linked to 
the PNR record will be created to note that the data was determined 
to be inaccurate and the proper correction. Specifically, CBP will 
annotate the passenger's secondary examination record to reflect 
that certain data in the PNR may be or is inaccurate.
---------------------------------------------------------------------------

    (40) Requests for rectification of PNR data contained in CBP's 
database and complaints by individuals about CBP's handling of their 
PNR data may be made, either directly or via the relevant DPA (to the 
extent specifically authorized by the data subject) to the Assistant 
Commissioner, Office of Field Operations, U.S. Bureau of Customs and 
Border Protection, 1300 Pennsylvania Avenue, NW., Washington, DC 20229.
    (41) In the event that a complaint cannot be resolved by CBP, the 
complaint may be directed, in writing, to the Chief Privacy Officer, 
Department of Homeland Security, Washington, DC 20528, who will review 
the situation and endeavor to resolve the complaint.\11\
---------------------------------------------------------------------------

    \11\ The DHS Chief Privacy Officer is independent of any 
directorate within the Department of Homeland Security. She is 
statutorily obligated to ensure that personal information is used in 
a manner that complies
---------------------------------------------------------------------------

    (42) Additionally, the DHS Privacy Office will address on an 
expedited basis complaints referred to it by DPAs in the European Union 
(EU) Member States on behalf of an EU resident to the extent such 
resident has authorized the DPA to act on his or her behalf and 
believes that his or her data protection complaint regarding PNR has 
not been satisfactorily dealt with by CBP (as set out in paragraphs 37-
41 of these Undertakings) or the DHS Privacy Office. The Privacy Office 
will report its conclusions and advise the DPA or DPAs concerned 
regarding actions taken, if any. The DHS Chief Privacy Officer will 
include in her report to Congress issues regarding the number, the 
substance and the resolution of complaints regarding the handling of 
personal data, such as PNR.\12\
---------------------------------------------------------------------------

    \12\ Pursuant to section 222 of the Homeland Security Act of 
2002 (the ``Act'') (Public Law 107-296, dated November 25, 2002), 
the Privacy Officer for DHS is charged with conducting a ``privacy 
impact assessment'' of proposed rules of the Department on ``on the 
privacy of personal information, including the type of personal 
information collected and the number of people affected'' and must 
report to Congress on an annual basis regarding the ``activities of 
the Department that affect privacy. * * *'' Section 222(5) of the 
Act also expressly directs the DHS Privacy Officer to hear and 
report to Congress regarding all ``complaints of privacy 
violations.''

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

[[Page 41547]]

Compliance Issues

    (43) CBP, in conjunction with DHS, undertakes to conduct once a 
year, or more often if agreed by the parties, a joint review with the 
European Commission assisted as appropriate by representatives of 
European law enforcement authorities and/or authorities of the Member 
States of the European Union,\13\ on the implementation of these 
Undertakings, with a view to mutually contributing to the effective 
operation of the processes described in these Undertakings.
---------------------------------------------------------------------------

    \13\ The composition of the teams on both sides will be notified 
to each other in advance and may include appropriate authorities 
concerned with privacy/data protection, customs control and other 
forms of law enforcement, border security and/or aviation security. 
Participating authorities will be required to obtain any necessary 
security clearances and will adhere to the confidentiality of the 
discussions and documentation to which they may be given access. 
Confidentiality will not however be an obstacle to each side making 
an appropriate report on the results of the joint review to their 
respective competent authorities, including the U.S. Congress and 
the European Parliament. However, under no circumstances may 
participating authorities disclose any personal data of a data 
subject; nor may participating authorities disclose any non-public 
information derived from documents to which they are given access, 
or any operational or internal agency information they obtain during 
the joint review. The two sides will mutually determine the detailed 
modalities of the joint review.
---------------------------------------------------------------------------

    (44) CBP will issue regulations, directives or other policy 
documents incorporating the statements herein, to ensure compliance 
with these Undertakings by CBP officers, employees and contractors. As 
indicated herein, failure of CBP officers, employees and contractors to 
abide by CBP's policies incorporated therein may result in strict 
disciplinary measures being taken, and criminal sanctions, as 
applicable.

Reciprocity

    (45) In the event that an airline passenger identification system 
is implemented in the European Union which requires air carriers to 
provide authorities with access to PNR data for persons whose current 
travel itinerary includes a flight to or from the European Union, CBP 
shall, strictly on the basis of reciprocity, encourage U.S.-based 
airlines to cooperate.

Review and Termination of Undertakings

    (46) These Undertakings shall apply for a term of three years and 
six months (3.5 years), beginning on the date upon which an agreement 
enters into force between the United States and the European Community, 
authorizing the processing of PNR data by air carriers for purposes of 
transferring such data to CBP, in accordance with the Directive. After 
these Undertakings have been in effect for two years and six months 
(2.5 years), CBP, in conjunction with DHS, will initiate discussions 
with the Commission with the goal of extending the Undertakings and any 
supporting arrangements, upon mutually acceptable terms. If no mutually 
acceptable arrangement can be concluded prior to the expiration date of 
these Undertakings, the Undertakings will cease to be in effect.

No Private Right or Precedent Created

    (47) These Undertakings do not create or confer any right or 
benefit on any person or party, private or public.
    (48) The provisions of these Undertakings shall not constitute a 
precedent for any future discussions with the European Commission, the 
European Union, any related entity, or any third State regarding the 
transfer of any form of data.

    Dated: May 11, 2004.

Attachment ``A''--PNR Data Elements Required by CBP From Air Carriers

    1. PNR record locator code.
    2. Date of reservation.
    3. Date(s) of intended travel.
    4. Name.
    5. Other names on PNR.
    6. Address.
    7. All forms of payment information.
    8. Billing address.
    9. Contact telephone numbers.
    10. All travel itinerary for specific PNR.
    11. Frequent flyer information (limited to miles flown and 
address(es)).
    12. Travel agency.
    13. Travel agent.
    14. Code share PNR information.
    15. Travel status of passenger.
    16. Split/Divided PNR information.
    17. E-mail address.
    18. Ticketing field information.
    19. General remarks.
    20. Ticket number.
    21. Seat number.
    22. Date of ticket issuance.
    23. No show history.
    24. Bag tag numbers.
    25. Go show information.
    26. OSI information.
    27. SSI/SSR information.
    28. Received from information.
    29. All historical changes to the PNR.
    30. Number of travelers on PNR.
    31. Seat information.
    32. One-way tickets.
    33. Any collected APIS information.
    34. ATFQ fields.

[FR Doc. 04-15642 Filed 7-6-04; 4:31 pm]

BILLING CODE 4820-02-P