[Federal Register: September 13, 2004 (Volume 69, Number 176)]
[Notices]               
[Page 55167-55170]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13se04-52]                         

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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

 
Automated Commercial Environment (ACE): Announcement of a 
National Customs Automation Program Test of Automated Truck Manifest 
for Truck Carrier Accounts

AGENCY: Bureau of Customs and Border Protection.

ACTION: General notice.

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SUMMARY: This document announces that the Bureau of Customs and Border 
Protection (CBP), in conjunction with the Department of Transportation, 
Federal Motor Carrier Safety Administration (FMCSA), plans to conduct a 
National Customs Automation Program (NCAP) test concerning the 
transmission of automated truck manifest data. This notice provides a 
description of the test process, outlines the development and 
evaluation methodology to be used, sets forth eligibility requirements 
for participation, and invites public comment on any aspect of the 
planned test.

DATES: The test will commence no earlier than November 29, 2004. 
Comments concerning this notice and all aspects of the announced test 
may be submitted at any time during the test period.

ADDRESSES: Written comments concerning program, policy and technical 
issues should be submitted to Mr. Thomas Fitzpatrick via e-mail at 
Thomas.Fitzpatrick@dhs.gov.


FOR FURTHER INFORMATION CONTACT: Mr. Thomas Fitzpatrick via e-mail at 
Thomas.Fitzpatrick@dhs.gov.


SUPPLEMENTARY INFORMATION:

Background

    The CBP Modernization Program has been created to improve 
efficiency and security, increase effectiveness, and reduce costs for 
the Bureau of Customs and Border Protection (CBP) and all of its 
communities of interest. The ability to meet these objectives depends 
heavily on successfully modernizing CBP business functions and the 
information technology that supports those functions.
    The initial thrust of the Customs and Border Protection 
Modernization Program (see North American Free Trade Agreement 
Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2170 (December 8, 
1993)) focuses on Trade Compliance and the development of the Automated 
Commercial Environment (ACE) through the National Customs Automation 
Program (NCAP). The purposes of ACE, successor to the Automated 
Commercial System (ACS), are to streamline business processes, to 
facilitate growth in trade, to ensure cargo security, and to foster 
participation in global commerce, while ensuring compliance with U.S. 
laws and regulations. Development of ACE will consist of many releases. 
Each release, while individually achieving critical business needs, 
will also set forth the foundation for the subsequent releases.
    The component for which this document is announcing a test involves 
allowing participating Truck Carrier Accounts to transmit electronic 
manifest data in ACE (including advance cargo information as required 
by section 343 of the Trade Act of 2002, as amended by the Maritime 
Transportation Act of 2002 (see 68 FR 68140, December 5, 2003)). Truck 
Carrier Accounts who participate in this test will have the ability to 
electronically transmit the truck manifest data and obtain release of 
their cargo, crew, conveyances, and equipment via the ACE Portal or 
electronic data interchange (EDI) messaging. The Federal Motor Carrier 
Safety Administration (FMCSA) will participate in this test.

Authorization for the Test

    The Customs Modernization provisions in the North American Free 
Trade Agreement Implementation Act provide the Commissioner of CBP with 
authority to conduct limited test programs or procedures designed to 
evaluate planned components of the NCAP. This test is authorized 
pursuant to Sec.  101.9(b) of the CBP Regulations (19 CFR 101.9(b)) 
which provides for the testing of NCAP programs or procedures. See T.D. 
95-21. See also 67 FR 77128, dated December 16, 2002, which re-
designated the NCAP program test of the account-based declaration 
prototype as the Free and Secure Trade (FAST) prototype and modified 
and expanded the prototype; and 68 FR 55405, dated September 25, 2003, 
which further modified the FAST prototype.

Implementation of the Test

    This test of the Automated Truck Manifest will be conducted in a 
phased approach, with primary deployment scheduled for no earlier than 
November 29, 2004. At the initial stages of the test, truck manifest 
data will be transmitted for conveyances crossing at the ports of 
Blaine, Washington, and Buffalo, New York. Subsequent deployment will 
occur at Champlain, New York; Detroit, Michigan; Laredo, Texas; Otay 
Mesa, California; and Port Huron, Michigan, on dates to be announced. 
Implementation of the automated truck manifest functionality will not 
be immediate at all of the above referenced ports. CBP will announce 
the implementation and sequencing of truck manifest functionality at 
these ports as they occur. The test will eventually be expanded to 
include ACE Truck Carrier Account participants at all land border 
ports, and subsequent releases of ACE will include all modes of 
transportation. Additional participants and ports will be selected 
throughout the duration of the test. CBP will process additional Truck 
Carrier Account applications as

[[Page 55168]]

CBP expands the universe of participation for this test.

Eligibility and Acceptance

    Eligibility criteria for truck carrier participation was set forth 
in the Federal Register notice published February 4, 2004 (69 FR 5360). 
All Truck Carrier Account applications meeting the eligibility criteria 
were accepted. To be eligible for participation in this test, a carrier 
must have:
    1. Submitted an application (i.e., statement of intent to establish 
an ACE Account and to participate in the testing of electronic truck 
manifest functionality) as set forth in the February 4, 2004, Federal 
Register notice (69 FR 5360);
    2. Provided a Standard Carrier Alpha Code(s) (SCAC);
    3. Provided the name, address, and e-mail of a point of contact to 
receive further information.
    In addition, participants intending to use the ACE Secure Data 
Portal as the means to file the manifest must submit a statement of the 
ability to connect to the Internet. Participants intending to use an 
EDI interface will be required to first test their ability to send and 
receive electronic messages in either American National Standards 
Institute (ANSI) X12 or United Nations/Directories for Electronic Data 
Interchange for Administration, Commerce and Transport (UN/EDIFACT) 
format with CBP.
    It is anticipated that future applications meeting the eligibility 
criteria will be accepted. Acceptance into this test does not guarantee 
eligibility for, or acceptance into, future technical tests.

Expansion of Participation

    Participation in the automated truck manifest test will be expanded 
in the future as funding allows; however the eligibility criteria may 
differ from the criteria listed in this notice. Additionally, expansion 
of this test to allow future applicants to participate may be delayed 
due to funding or technological constraints. CBP will accept, hold, or 
reject additional Truck Carrier Account applications throughout the 
duration of the test. New applicants interested in participating in 
this test must submit an application, per the Account Application 
Process section of the February 4, 2004, Federal Register notice (69 FR 
5360), to CBP, and will be notified of the status of their application 
(i.e., whether CBP has accepted their application for participation 
upon an initial expansion, or, is holding their application pending a 
further expansion of the test). CBP will notify any applicant not 
meeting the eligibility criteria or providing an incomplete 
application, and allow such applicant an opportunity to resubmit its 
application.
    Eligible Truck Carrier Accounts are further reminded that 
participation in the automated electronic truck manifest functionality 
is not confidential. Lists of approved participants will be made 
available to the public.

Method of Transmission

    For purposes of this test, an interface to the trade will be 
established that will support both manual Internet filing via the ACE 
Secure Data Portal and EDI filing via either ANSI X12 or UN/EDIFACT 
messaging. CBP supports multiple communication interfaces for accessing 
ACE through EDI. Each potential ACE participant must evaluate the 
options and select the most appropriate interface based upon 
participant performance and business requirements. The list of options 
includes:
     CBP Internet Protocol (IP) Virtual Private Network (VPN)/
Message Queuing (MQ) Series over the Internet (new option)
     CBP Frame Relay/MQ Series Network
     Value Added Networks (VANS)
     Service Centers.

Description of the Test

Transmission of Data Prior to Arrival

    Participants in the test of automated truck manifest functionality 
(Release 4 of ACE) are required to submit truck manifest data including 
advance cargo information at least one hour in advance of the arrival 
of the conveyance at the first U.S. port of crossing. If, however, a 
participant is filing data via the FAST prototype, information must be 
submitted at least 30 minutes prior to the arrival of the conveyance at 
the first U.S. port of crossing. This 30-minute or one-hour period will 
be measured from the time that CBP receives the final manifest 
submission. Use of the ACE truck manifest system in this test will 
satisfy required electronic presentation of cargo information for truck 
carriers as mandated by section 343(a) of the Trade Act of 2002, as 
amended.

Manifest Data

    For purposes of this notice, a standard manifest consists of all of 
the CBP required data (listed below in a later section of this notice) 
for the establishment of a truck manifest. This data includes advance 
cargo information as required by the Trade Act of 2002, as amended by 
the Maritime Transportation Act of 2002. The data must be submitted 
either with each manifest submission or portions of this data can be 
drawn from data stored in the carrier's ACE account. Shipment 
information can be established in the ACE truck manifest system prior 
to its association with a specific trip, conveyance, equipment and 
crew. Conversely, information consisting of trip, conveyance, crew and 
equipment details can be submitted to ACE truck manifest prior to the 
submission of shipment details. In all cases, it is required that 
shipments match the trip to which they are associated.
    A truck carrier will transmit manifest/cargo information and is 
responsible for the accuracy and completeness of the data filed on the 
electronic manifest. An electronic truck manifest will list the 
applicable combination of trip, conveyance, equipment and shipment 
details. The Truck Carrier Account owner will also have the option of 
delegating the right to transmit the manifest data to a Portal User on 
its Account.
    For purposes of the initial stages of the test, the ACE truck 
manifest system will accept information regarding the splitting of 
shipments covered by house bills or master bills. It will not support 
the splitting of shipments when part is covered by a house bill and 
part by a master bill. Also, if a transmitting party uses the ACE truck 
manifest for a conveyance arrival, it must be used for all shipments 
arriving on that conveyance.

Test Processes Supported

    The test will support the following processes: Free And Secure 
Trade (FAST), Pre-Arrival Processing System (PAPS), Border Release 
Advance Screening and Selectivity (BRASS), Section 321, and In-bond. 
Automated release processes include transponder and proximity card 
technology that are utilized in conjunction with the automated truck 
manifest to facilitate timely releases while maintaining a high level 
of border security. Transponder and proximity cards must be used in the 
FAST process and are recommended, but not required, for all other 
processes (i.e., PAPS, BRASS, Section 321, and In-bond).
    The test processes are as follows:
PAPS
    PAPS is the process for the electronic transmission of immediate 
delivery, entry, and entry summary data to CBP prior to conveyance 
arrival through ACS, using the Automated Broker Interface (ABI) module 
as indicated in 19 CFR 143.32(b). The PAPS system

[[Page 55169]]

requires the designated entry filer to transmit the entry information 
via ABI to CBP for validation and risk assessment prior to arrival. For 
PAPS, the carrier will provide a Shipment Control Number (SCN), which 
is the Master Bill of Lading, Airway Bill or ProBill Number. If the 
carrier is transporting consolidated cargo it will provide both the SCN 
and its associated Bill Control Number (BCN), which is the House Bill 
of Lading, Airway Bill or ProBill Number issued by a transportation 
intermediary (e.g., freight forwarder, Non-Vessel Operating Common 
Carrier (NVOCC), or freight consolidator). The SCN number provided by 
the carrier must match the number supplied by the entry filer on the 
entry. A bar code used to report the Bill number will no longer be 
needed.
BRASS
    BRASS provides for the tracking and releasing of highly repetitive 
shipments at land border locations. Parties currently on BRASS received 
a unique alphanumeric identifier known as a C-4 code when the BRASS 
application was received and approved by CBP. The C-4 code will be 
entered by the carrier into the manifest shipment records. In addition, 
the shipment records must contain the information set forth below (see 
Data Elements Required To Be Reported on the Electronic Manifest). It 
should be noted that new BRASS applications will not be entertained; 
only current BRASS users may use BRASS for the Automated Truck Manifest 
test.
Section 321
    The Section 321 process provides for an electronic method to 
manifest and enter merchandise not exceeding $200 in value (which meets 
the regulatory requirements defined in 19 CFR 10.151 and 10.152) 
pursuant to 19 U.S.C. 1321. In order to file a Section 321 entry, in 
addition to the required shipment details listed below (see Data 
Elements Required To Be Reported on the Electronic Manifest), the 
following information is required: country of origin of the merchandise 
and value.
In-bond
    In-bond transmissions may be made by the carrier when it knows that 
the shipment being transported is not to be released for consumption at 
the port of arrival and is destined for a port beyond that initial 
port. The in-bond process will support entries for Immediate 
Transportation (IT), Transportation and Exportation (T&E), and 
Immediate Exportation (IE). A declaration can be made on the manifest 
transmission to provide the necessary in-bond data for the shipment 
destined for another port. Alternatively, the in-bond request can be 
made via the ACS electronic in-bond transaction QP/WP or presentation 
of Customs Automated Forms Entry System (CAFES) bar code. Export of in-
bond shipments may be reported via ABI (QP/WP).

FAST

    Participants choosing to use FAST may use only FAST with regard to 
any particular trip. FAST transmissions will remain unchanged in the 
initial stages of the test. Truck carriers must submit advance 
electronic cargo information at least one half hour prior to the 
arrival of the conveyance at the first U.S. port following the 
requirements for FAST. The driver must be a registered FAST participant 
with a proximity card. The truck must be equipped with a transponder. 
The carrier and importer must be Customs Trade Partnership Against 
Terrorism (C-TPAT) participants. For participation on the southern 
border, the manufacturer also must be a C-TPAT participant and the 
equipment must be sealed.

CBP Return Messages

    CBP trip, conveyance, crew, and shipment status messages will be 
generated and sent to the carrier, after the conveyance has arrived and 
is processed at the first U.S. port of arrival.

Data Elements Required To Be Reported on the Electronic Manifest

    On December 5, 2003, CBP published in the Federal Register (68 FR 
68140) the Final Rule regarding the Required Advance Electronic 
Presentation of Cargo Information. The following cargo information is 
required for all processes in the initial stage of the test (except 
FAST), with some noted modifications:
    (1) Conveyance number, and (if applicable) equipment number (the 
number of the conveyance is its Vehicle Identification Number (VIN) or 
its license plate number and State of issuance; the equipment number, 
if applicable, refers to the identification number of any trailing 
equipment or container attached to the power unit. For purposes of this 
test, both the VIN and the license plate number are required);
    (2) Carrier identification (i.e., the truck carrier identification 
SCAC code (the unique Standard Carrier Alpha Code) assigned for each 
carrier by the National Motor Freight Traffic Association);
    (3) Trip number and, if applicable, the transportation reference 
number for each shipment (The transportation reference number is the 
freight bill number, or Pro Number, if such a number has been generated 
by the carrier. For purposes of this test the SCN and, if applicable, 
the associated BCNs are required);
    (4) Container number(s) (for any containerized shipment, if 
different from the equipment number), and the seal numbers for all 
seals affixed to the equipment or container(s) (For purposes of this 
test, seal numbers will be enforced in FAST on the southern border);
    (5) The foreign location where the truck carrier takes possession 
of the cargo destined for the U.S.;
    (6) The scheduled date and time of arrival of the truck at the 
first port of entry in the U.S.;
    (7) The numbers and quantities for the cargo laden aboard the truck 
as contained in the bill(s) of lading (this means the quantity of the 
lowest external packaging unit; numbers referencing only containers and 
pallets do not constitute acceptable information; for example, a 
container holding 10 pallets with 200 cartons should be described as 
200 cartons);
    (8) The weight of the cargo, or, for a sealed container, the 
shipper's declared weight of the cargo;
    (9) A precise description of the cargo and/or the Harmonized Tariff 
Schedule (HTS) numbers to the 6-digit level under which the cargo will 
be classified. (Generic descriptions, specifically those such as 
freight of all kinds (FAK), general cargo, and cargo said to contain 
(STC) are not acceptable.);
    (10) Internationally recognized hazardous material code when such 
cargo is being shipped by truck;
    (11) The shipper's complete name and address, or identification 
number. (The identity of the foreign vendor, supplier, manufacturer, or 
other similar party is acceptable and the address of the foreign 
vendor, etc., must be a foreign address. By contrast, the identity of 
the carrier, freight forwarder, consolidator, or broker, is not 
acceptable. The identification number will be a unique number to be 
assigned by CBP upon the implementation of the Automated Commercial 
Environment; and
    (12) The complete name and address of the consignee, or 
identification number. (The consignee is the party to whom the cargo 
will be delivered in the U.S., with the exception of Foreign Cargo 
Remaining on Board (FROB).) The identification number will be a unique 
number assigned by CBP upon implementation of the Automated Commercial 
Environment.
    Additionally, for purposes of this test, the following information 
is requested

[[Page 55170]]

(although not required pursuant to the December 5, 2003 final rule):
    (13) DOT number;
    (14) Person on arriving conveyance who is in charge;
    (15) Names of all crew members;
    (16) Date of birth of each crew member;
    (17) Commercial driver's license (CDL)/drivers license number for 
each crew member;
    (18) CDL/driver's license State/province of issuance for each crew 
member;
    (19) CDL country of issuance for each crew member;
    (20) Travel document number for each crew member;
    (21) Travel document country of issuance for each crew member;
    (22) Travel document State/province of issuance for each crew 
member;
    (23) Travel document type for each crew member;
    (24) Address for each crew member. (For purposes of this test, this 
is defined as the physical location, in the U.S., where a crew member 
will actually be on this particular trip. This could include a 
consignee's location, a hotel, a truck stop, or a family or friend's 
location. Those individuals possessing a FAST ID are exempt from the 
U.S. address requirement.);
    (25) Gender of each crew member;
    (26) Nationality/citizenship of each crew member;
    (27) Method of transport (defined as the mode by which the 
merchandise crosses the international border);
    (28) Conveyance type;
    (29) Conveyance State/province of registration; and
    (30) Equipment State/province of registration.
    The submission of the following information is considered 
conditional and must be submitted only where applicable:
    (31) Hazmat endorsement for each crew member;
    (32) Names of all passengers;
    (33) Date of birth of each passenger;
    (34) Travel document number for each passenger;
    (35) Travel document country of issuance for each passenger;
    (36) Travel document State/province of issuance for each passenger;
    (37) Travel document type for each passenger;
    (38) Gender of each passenger;
    (39) Nationality of each passenger;
    (40) Import/export/in-transit indicator;
    (41) Conveyance country of registration;
    (42) Conveyance insurance company name;
    (43) Conveyance insurance policy number;
    (44) Year of issuance;
    (45) Insurance amount;
    (46) Transponder number;
    (47) Shipment release type;
    (48) Equipment type;
    (49) Equipment country of registration;
    (50) Conveyance or equipment instrument of international traffic 
indicator;
    (51) Estimated date of U.S. departure (for use with T&E or IE);
    (52) In-bond destination;
    (53) Onward carrier (the SCAC code of the carrier to whom the In-
bond goods are being transferred);
    (54) Foreign port of unloading;
    (55) Place of receipt;
    (56) Service type (the type of shipping contract);
    (57) Party, ID number, and type (for any other party to the 
transaction listed on the trucker's bill of lading);
    (58) C-4 code;
    (59) Shipment identifier (any number that the carrier may wish to 
pass on to the broker, i.e., purchase order, commercial invoice, etc.);
    (60) Paperless in-bond number;
    (61) In-bond CF-7512 number;
    (62) Bonded carrier ID number;
    (63) Transfer carrier (intended to be the cartman, local carrier);
    (64) Transfer destination firms code;
    (65) Hazmat contact;
    (66) FDA freight indicator (identifies FDA jurisdiction over the 
shipment; this is not the prior notice requirement as set forth in the 
Bio-Terrorism Act);
    (67) Country of origin of the cargo;
    (68) Value; and
    (69) Entry type code.
    The submission of the following information is considered optional 
upon the discretion of the submitting party:
    (70) Marks and numbers (on packaging to be distinguished from 
numbers required by advance cargo information).

Misconduct Under the Test

    If a test participant fails to follow the terms and conditions of 
this test, fails to exercise reasonable care in the execution of 
participant obligations, fails to abide by applicable laws and 
regulations, misuses the ACE Portal, engages in any unauthorized 
disclosure or access to the ACE Portal, or engages in any activity 
which interferes with the successful evaluation of the new technology, 
the participant may be subject to civil and criminal penalties, 
administrative sanctions, liquidated damages, and/or suspension from 
this test.
    Suspensions for misconduct will be administered by the Executive 
Director, Trade Compliance and Facilitation. A notice proposing 
suspension will be provided in writing to the participant. Such notice 
will apprise the participant of the facts or conduct warranting 
suspension and will inform the participant of the date that the 
suspension will begin. Any decision proposing suspension of a 
participant may be appealed in writing to the Assistant Commissioner, 
Office of Field Operations, within 15 calendar days of the notification 
date. Should the participant appeal the notice of proposed suspension, 
the participant must address the facts or conduct charges contained in 
the notice and state how compliance will be achieved. However, in the 
case of willful misconduct, or where public health, interest or safety 
is concerned, the suspension may be effective immediately.

Test Evaluation Criteria

    To ensure adequate feedback, participants are required to 
participate in an evaluation of this test. CBP also invites all 
interested parties to comment on the design, conduct and implementation 
of the test at any time during the test period. CBP will publish the 
final results in the Federal Register and the CBP Bulletin as required 
by section 101.9(b) of the CBP Regulations (19 CFR 101.9(b)).
    The following evaluation methods and criteria have been suggested:
    1. Baseline measurements to be established through data analysis;
    2. Questionnaire from both trade participants and CBP addressing 
such issues as:
     Workload impact (workload shifts/volume, cycle times, 
etc.);
     Cost savings (staff, interest, reduction in mailing costs, 
etc.);
     Policy and procedure accommodation;
     Trade compliance impact;
     Problem resolution;
     System efficiency;
     Operational efficiency;
     Other issues identified by the participant group.

    Dated: September 8, 2004.
William S. Heffelfinger III,
Acting Assistant Commissioner, Office of Field Operations.
[FR Doc. 04-20585 Filed 9-10-04; 8:45 am]

BILLING CODE 4820-02-P