[Federal Register: August 8, 2005 (Volume 70, Number 151)]
[Notices]
[Page 45736-45738]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08au05-103]
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DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
Automated Commercial Environment (ACE): National Customs
Automation Program Test of Periodic Monthly Payment Statement Process
AGENCY: Bureau of Customs and Border Protection; Department of Homeland
Security.
ACTION: General notice.
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SUMMARY: This document announces changes in the Bureau of Customs and
Border Protection's (CBP) National Customs Automation Program (NCAP)
test concerning periodic monthly deposit of estimated duties and fees.
A change to the time period allowed for the deposit of the duties and
fees is being made in order to comply with the provisions of section
2004 of the Miscellaneous Trade and Technical Corrections Act of 2004,
Public Law 108-429, which extended the time of deposit of those
estimated duties and fees from the 15th calendar day to the 15th
working day of the month following the month in which the goods are
either entered or released. Another change being made concerns whether
CBP will establish a claim for liquidated damages when a participant
removes an entry from a Periodic Daily Statement or a Preliminary
Monthly Statement after expiration of a 10-working-day period after
release. This document also advises that entries containing Census
errors will be eligible to be placed on a Periodic Daily Statement and
designated for monthly payment. The latter two changes are being made
in order to increase the efficiencies of the Automated Commercial
Environment (ACE) and to encourage participation in the Periodic
Monthly Statement process.
DATES: The changes announced in this notice concerning the time of
payment of duties and fees and the assessment of liquidated damages
will take effect on August 8, 2005. The change announced concerning the
placement of Census errors on the Periodic Daily Statement will take
effect on August 1, 2005.
FOR FURTHER INFORMATION CONTACT: For questions regarding periodic
monthly statement payments: Ms. Sherri Hoffman via email at
Sherri.hoffman@dhs.gov, and Mr. Robert Hamilton via email at
Robert.b.hamilton@dhs.gov, or by telephone at (317) 298-1107.
SUPPLEMENTARY INFORMATION:
Background
On February 4, 2004, the Bureau of Customs and Border Protection
(CBP) published a General Notice in the Federal Register (69 FR 5362)
announcing the National Customs Automation Program (NCAP) test for
Periodic Monthly Payment Statement Process. The test, which is part of
CBP's Automated Commercial Environment (ACE), benefits participants by
giving them access to operational data through the ACE Secured Data
Portal (``ACE Portal''), which provides them the capability to interact
electronically with CBP, and by allowing them to deposit estimated
duties and fees on a monthly basis based on a Periodic Monthly
Statement issued by CBP.
When the test started, only importers were eligible to apply for
the test.
[[Page 45737]]
Eligibility was later expanded to allow brokers to apply if they were
specifically designated by an ACE importer.
On September 8, 2004, CBP published a General Notice in the Federal
Register (69 FR 54302) which invited customs brokers, regardless of
whether they were designated by participating importers to make
Periodic Monthly Statement payments on their behalf, to apply to
participate in the test. That notice set forth eligibility requirements
for both importers and brokers.
On February 1, 2005, CBP published a General Notice in the Federal
Register (70 FR 5199) announcing that applicants seeking to establish
importer or broker accounts so as to access the ACE Portal, or to
participate in any ACE test (including the test for Periodic Monthly
Payment Statement Process), are no longer required to provide a
statement certifying participation in the Customs Trade Partnership
Against Terrorism (C-TPAT).
As provided in the February 4, 2004 General Notice announcing the
test, participants in the Periodic Monthly Statement test are required
to schedule entries for monthly payment. A Periodic Monthly Statement
will list Periodic Daily Statements that have been designated for
monthly payment. The Periodic Monthly Statement can be created on a
port basis by the importer or broker, as was the case with existing
daily statements in the Automated Commercial System (ACS) (ACE is the
successor to ACS). The Periodic Monthly Statement can be created on a
national basis by an Automated Broker Interface (ABI) filer. If an
importer chooses to file the Periodic Monthly Statement on a national
basis, he must use his filer code and schedule and pay the monthly
statements. The Periodic Monthly Statement will be routed under
existing CBP procedures. Brokers will only view/receive information
that they have filed on an importer's behalf. ACE will not route a
Periodic Monthly Statement to a broker through ABI if that statement
lists information filed by another broker.
Description of the Changes
1. Payment of Duties and Fees
Under statutory authority in place at the time of initiation of the
Periodic Monthly Statement Process test, estimated duties and fees were
to be paid on a monthly basis by the 15th calendar day in the month
following the month in which the goods are either entered or released.
Under a statutory change promulgated to section 505(a) of the Tariff
Act of 1930, as amended, (19 U.S.C. 1505(a)), by Section 2004 of the
Miscellaneous Trade and Technical Corrections Act of 2004, Public Law
108-429, estimated duties and fees are to be paid by the 15th working
day in the month following the month in which the goods are either
entered or released. For the purposes of this test, the term ``working
day'' is synonymous with the term ``business day,'' which is defined at
sections 101.1 and 101.6(a) of the CBP Regulations (title 19 Code of
Federal Regulations, sections 101.1 and 101.6(a)). This notice brings
the NCAP test into compliance with the statutory change.
2. Removal of an Entry From a Periodic Daily Statement After Expiration
of the 10-Working-Day Period After Release of the Entry
In the February 4, 2004 General Notice, CBP provided that if
participants remove an entry from a Periodic Daily Statement or a
Preliminary Monthly Statement after expiration of a 10-working-day
period after release, that entry must be paid individually and would be
automatically subject to a claim for liquidated damages for late
payment of estimated duties. This notice announces that entries
removed, from the Periodic Daily Statement only, may be subject to a
claim for liquidated damages. CBP will exercise its discretion whether
to establish a claim for liquidated damages and will consider the
timeliness of the submission of the entry information to CBP in making
its decision. The purpose of this change is to encourage filers to use
Periodic Monthly Statement and to submit their entry changes as soon as
possible. This change does not apply to the removal of an entry from a
Periodic Monthly Statement after expiration of a 10-working-day period
after release, which will still be subject to an automatic claim for
liquidated damages for late payment of estimated duties.
3. Entries With Census Errors
CBP will allow all entries currently eligible for placement on a
daily statement to be placed on a Periodic Daily Statement, with the
exception of reconciliation entries, NAFTA duty deferral entries, and
entries requiring the payment of excise taxes. Entries containing
Census errors, originally disallowed for inclusion on the Periodic
Daily Statement, will now be eligible for placement on a Periodic Daily
Statement.
Monthly Payment Procedures
Incorporating the changes regarding the extended time for payment
of duties and fees, and the removal of entries from the Periodic Daily
Statement after expiration of the 10-working-day period after release,
as announced in this notice, entries for monthly payment will be
processed as follows:
a. As entries are filed with CBP, the importer or its designated
broker schedules them for monthly payment;
b. Those entries scheduled for monthly payment will appear on the
Preliminary Periodic Daily Statement;
c. The Importer or its designated broker processes entry summary
presentation transactions for Periodic Daily Statements within 10
working days of the date of entry (this is not changed from the
previous notice);
d. After summary information has been filed, the scheduled entries
will appear on the Final Periodic Daily Statement;
e. Periodic Daily Statements scheduled for monthly payment will
appear on the Preliminary Periodic Monthly Statement; CBP will generate
the Preliminary Periodic Monthly Statement on the 11th working day of
the month (changed from 11th ``calendar day'') following the month in
which the merchandise is either entered or released, whichever comes
first, unless the importer or designated broker selects an earlier
date;
f. On the 15th working day of the month, for Automated Clearing
House (ACH) debit participants, CBP will transmit the debit
authorizations for the periodic daily statements to the financial
institution and the periodic monthly statement will be marked paid. The
Final Periodic Monthly Statement will be generated by CBP and be
transmitted to the importer or his designated broker. ACH Debit
participants must ensure that the money amount identified on the
Preliminary Monthly Statement is, in fact, available in their bank
account by the 15th working day of the month.
g. ACH credit participants must initiate payment no later than the
14th working day of the month. CBP must receive the settlement for the
credit by the 15th working day in order to have the periodic monthly
statement marked paid and treated as a timely payment. The Final
Periodic Monthly Statement will be generated by CBP and be transmitted
to the importer or his designated broker.
For both ACH Credit and ACH Debit participants, CBP will generate
the Final Periodic Monthly Statement on the night that payment is
processed.
Participants should note that if they voluntarily remove an entry
from a Periodic Daily Statement before expiration of the 10-working-day
period
[[Page 45738]]
after release, that entry may be placed on another Periodic Daily
Statement falling within the same 10-working-day period. If, however,
participants remove an entry from a Periodic Daily Statement after
expiration of the 10-working-day period after release, the entry may be
the subject of a claim for liquidated damages for late payment of
estimated duties.
Suspension of Regulations
During the testing of the Periodic Monthly Statement process, CBP
is suspending provisions in Parts 24, 141, 142, and 143 of the CBP
Regulations (Title 19 Code of Federal Regulations) pertaining to
financial, accounting, entry procedures, and deposit of estimated
duties and fees. Absent any specified alternate procedure, the current
regulations apply. All of the terms of the test and criteria for
participation therein, as announced in the previous notices identified
above, continue to be applicable unless changed by this notice.
Dated: August 1, 2005.
Todd C. Owen,
Acting Assistant Commissioner, Office of Field Operations.
[FR Doc. 05-15571 Filed 8-5-05; 8:45 am]
BILLING CODE 4820-02-P