[Federal Register: August 19, 2005 (Volume 70, Number 160)]
[Notices]
[Page 48774-48777]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19au05-70]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
Announcement of Test Program Regarding Electronic Foreign Trade
Zone Admission Applications
AGENCY: Customs and Border Protection, Homeland Security.
ACTION: General notice.
-----------------------------------------------------------------------
SUMMARY: This notice announces the Bureau of Customs and Border
Protection's (CBP) plan to conduct a voluntary test program to allow
the submission of electronic Foreign Trade Zone (FTZ) admission
applications. Pursuant to the terms of the test, an application for FTZ
admission (CBP Form 214--``FTZ Admission and/or Status Designation'')
may be filed electronically with CBP via the Automated Broker Interface
(ABI). Parties not participating in the test may continue to file the
CBP Form 214 in a paper format pursuant to existing FTZ procedures. The
test program is limited to electronic FTZ admission applications for
merchandise reported to CBP via air, sea, and rail manifest. CBP
intends to implement a future phase of this test that will allow
electronic FTZ admission applications for merchandise reported to CBP
via truck manifest as soon as a CBP-approved electronic data
interchange system exists for these transmissions. This notice informs
interested members of the public of the eligibility and procedural
requirements for participation in the test, outlines the evaluation
methodology to be used, and invites public comment concerning any
aspect of the planned prototype test.
DATES: The Electronic FTZ Admission Application test program will
commence no earlier than September 30, 2005, and will run for
approximately 6 months with a final evaluation to take place at the end
of that period. CBP may extend the test period by way of announcement
in the Federal Register.
[[Page 48775]]
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 should be addressed
to Customs and Border Protection, Cargo Control Branch, 1300
Pennsylvania Avenue, NW., Room 5.2A, Washington, DC 20229.
FOR FURTHER INFORMATION CONTACT: Gary Rosenthal, Customs and Border
Protection, Office of Field Operations, via e-mail at
gary.rosenthal@dhs.gov.
SUPPLEMENTARY INFORMATION:
Background
Electronic Foreign Trade Zone Admission Application Prototype: Planned
Component of the National Customs Automation Program
Title VI of the North American Free Trade Agreement Implementation
Act (the 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 importations. Within subpart B, section 631 of the Act added
section 411 to the Tariff Act of 1930 (19 U.S.C. 1411-1414), which
defines the NCAP, provides for the establishment of and participation
in the NCAP, and includes a list of existing and planned components.
Section 411(a)(2)(G) identifies any program initiated by CBP to carry
out the automation goals of this subpart as a planned NCAP component.
The planned test program described in this document falls within this
category of planned NCAP component.
Section 101.9(b) of Title 19 of the Code of Federal Regulations (19
CFR 101.9(b)) provides for the testing of NCAP planned components. The
Electronic Foreign Trade Zone (FTZ) Admissions Application prototype is
being tested in accordance with this provision.
Description of the Test Program
The Electronic FTZ Admission Application test program permits a
participant to submit an electronic version of the CBP Form 214 (``FTZ
Admission and/or Status Designation'') to CBP via the Automated Broker
Interface (ABI) of Customs Automated Commercial System (ACS). Any
person not participating in the prototype will be required to submit a
paper CBP Form 214 pursuant to existing FTZ admission procedures.
The test program is limited to electronic FTZ admission
applications for merchandise reported to CBP via air, sea, and rail
manifest. It is noted that CBP intends to implement a future phase of
this test that will allow electronic FTZ admission applications for
merchandise reported to CBP via truck manifest as soon as a CBP-
approved electronic data interchange system exists for these
transmissions.
Regulatory Provisions Suspended
Subpart C to part 146 of the CFR prescribes the conditions
applicable to admission of merchandise into a foreign trade zone. To
the extent that certain provisions within subpart C to part 146 may be
incompatible with the terms of this test program, the affected
regulatory provisions will be suspended for the duration of the
prototype test.
Test Commencement Date
The test program will commence no earlier than September 30, 2005,
and will run for a 6-month period with a final evaluation to take place
at the end of the test period. CBP may extend the prototype and any
such extension will be announced in the Federal Register.
Participant Eligibility
Eligible participants in the Electronic FTZ Admissions Application
test program include:
FTZ operators
FTZ Admission Applicants
Agents of FTZ Admission Applicants
Participation in the test is voluntary and there are no application
procedures.
Prototype Procedures
Submission of Electronic CBP Form 214 and Related Data
Test participants must request permission to admit merchandise into
a FTZ by electronically transmitting the CBP Form 214 data elements to
CBP via ABI. The data transmission may cover a single shipment of
merchandise or be a consolidated transmission that covers multiple
shipments to a single zone. CBP must receive the CBP Form 214 before
the merchandise can be released for admission into the FTZ. An
exception to this requirement exists for test participants who are
authorized to use the FTZ direct delivery procedures, as discussed
below.
The test program will also incorporate transmissions of data on
merchandise that is transported to a FTZ or from a FTZ if the data
transmission is made via CBP Form 7512 in-bond transaction or its
electronic equivalent.
Prior Notice Reporting Requirements
Test participants, including those approved to participate under
direct delivery procedures, must comply with the prior notice reporting
requirements stipulated in the Public Health Security and Bioterrorism
Preparedness and Responsive Act of 2002 (``the Bioterrorism Act''),
Public Law 107-188. Title III of the Bioterrorism Act contains
provisions relating to providing the Department of Health and Human
Services with prior notice regarding certain information about foods
that are imported or offered for import into the United States.
Direct Delivery Procedures
As a general rule, a test participant who is also authorized to use
the direct delivery procedures prescribed in Sec. 146.39 (19 CFR
146.39) to admit merchandise into a FTZ may transmit the required data
to CBP on an electronic CBP Form 214 no later than the close of
business on the business day following receipt of the merchandise into
the FTZ inventory control and recordkeeping system.
With regard to the applicability of direct delivery procedures in
the context of the test program, two exceptions to the above rule are
noted. First, as stated above, direct delivery participants are subject
to any applicable prior notice reporting requirements set forth in the
Bioterrorism Act. Second, in the absence of a CBP Form 7512 in-bond
transaction authorizing direct delivery to the FTZ, or its electronic
equivalent, a permit to transfer request must be electronically
transmitted to CBP before the merchandise can be released for
admission.
FTZ Operators as Test Participants
Under the test program, a FTZ operator will be able to accept or
reject the merchandise, assume custodial responsibility for the
accepted merchandise and report discrepancies between the documents
covering the merchandise and the merchandise itself, admit zone status
merchandise transferred from another zone, change zone status, admit
domestic status merchandise, and transmit post admission inventory
adjustment transactions via ABI.
Transmittal of Statistical Data to the Bureau of Census
After permission to transfer merchandise into a FTZ is granted, CBP
will transmit statistical data to the Bureau of the Census through an
automated link.
[[Page 48776]]
CBP Form 214 Required Data Elements
Participants in the test must provide CBP with the following data
elements:
A code representing the action to be taken (i.e., add,
delete, replace).
A line item number.
The zone number designated in the foreign trade zone
grant.
The port code where the FTZ is located as shown in
Schedule D, Harmonized Tariff Schedule of the United States (HTSUS).
An indicator specifying whether the merchandise is being
admitted into the FTZ under direct delivery procedures.
The Automated Broker Interface (ABI) filer code.
The ABI routing code and optional office extension for one
additional ABI participant who will receive a copy of the electronic
CBP Form 214 and subsequent electronic notifications.
The IRS number, Importer of Record Number or EIN of the
applicant.
An indicator specifying the admission type.
The mode of transportation code. Valid codes are listed in
Appendix B of the CATAIR (CBP Publication 552, Customs and Trade
Automated Interface Requirements).
The name of the conveyance (if not a vessel, the name of
the transportation company).
The vessel voyage, truck or rail trip, or aircraft flight
number.
The country of export.
The export date. For merchandise arriving in the U.S. by
vessel: the month, day and year on which the vessel departed the last
port of the country of exportation. For merchandise exported by air:
the month, day and year on which the aircraft departed the last airport
of the country of exportation. For merchandise exported by truck or
rail: the month, day and year in which the carrier crossed the border
of the country of exportation.
The import date. For merchandise arriving in the U.S. by
vessel: the month, day and year on which the vessel transporting the
merchandise from the foreign country arrived within the limits of the
U.S. port at which the merchandise was unladen. For merchandise
arriving in the U.S. other than by vessel: the month, day and year in
which the merchandise arrived within the territory of the U.S.
The zone admission number (zone number, calendar year, and
control number).
The U.S. port of unlading (the port at which the
merchandise was unladen whether or not the port is a CBP port of
entry). Valid codes are listed in Schedule D issued by the Bureau of
the Census.
The foreign port of lading.
The bill of lading or airway bill number.
The house bill number.
The Standard Carrier Alpha Code (SCAC) identifier of the
importing carrier.
The immediate transportation (IT) number assigned to in-
bond shipments and the date the CBP Form 7512 was prepared.
The number of packages and the country of origin. An
indication of the quantity and unit of measure (cartons, cases,
bundles, etc.) in the shipment as stated in the Customs Automated
Manifest Interface Requirements (CAMIR). For containerized merchandise,
an indication of the number of packages within the container(s) and the
container number(s). For bulk shipments, show ``1 Bulk.'' Enter the
country of origin code, provided in Annex B, ISO code, Harmonized
Tariff Schedule (HTS), which represents the country of origin in which
the product was manufactured, mined, or grown. If the merchandise is
from more than one country of origin, the country of origin will be
indicated separately against each HTS subheading or group of
subheadings.
A detailed description of the merchandise at the line item
level.
The Manufacturer Identification (MID) number (as required
for type 01 entries).
The applicable HTS number(s).
The quantity of the merchandise for each HTS number.
The quota category (if applicable).
The gross weight in kilograms of the merchandise. Supply
separate gross weight information for each HTS subheading.
The separate value and aggregate charges: For each HTS,
enter the purchase price (in U.S. dollars) or, if the merchandise was
not acquired by purchase, the equivalent of such price. Also, report
the aggregate cost (in U.S. dollars) of freight, insurance, and all
other costs, charges and expenses incurred in bringing the merchandise
from alongside the carrier at the foreign port of exportation in the
country of exportation in addition to unlading the merchandise at the
first U.S. port of entry.
The indicator designating a special program and country
affecting duty payments (if applicable).
If applicable, a qualifier code and reference identifier
associated with the shipment. Valid qualifiers are listed in the
CATAIR. Code ``IM'' will be added to indicate importer.
The Harbor Maintenance Fee incurred for loading or
unloading the commercial cargo from a commercial vessel.
The FTZ status designation of the merchandise.
The container number if a permit to transfer is requested.
Concurrence/discrepancy data relating to the admission
application/permit to transfer.
The IRS number of the carrier responsible for the movement
of merchandise into the FTZ following issuance of a permit to transfer.
The Facilities Information and Resources Management
Systems (FIRMS) code identifying the location that the merchandise
(moving on a permit to transfer) is being delivered to.
The three position airport code if the bill of lading is
Air AMS.
An indicator if the merchandise is subject to Bioterrorism
Act of 2002 requirements.
Test participants are responsible for the accuracy and completeness
of all data transmitted under the prototype.
Processing of Electronic FTZ Admission Applications
Upon approval of an electronic FTZ admission application, CBP will
transmit electronic notice to the FTZ operator authorizing admission of
the merchandise into the FTZ. As noted above, this approval process
does not apply to merchandise admitted to a FTZ under direct delivery
procedures.
After CBP receives notice of the FTZ operator's decision to grant
or deny admission, CBP will electronically transmit approval/denial to
transfer the merchandise into the FTZ electronically to the test
applicant or the applicant's agent, and to the carrier of the
merchandise. CBP will also provide electronic notice to these parties
as to whether the merchandise is subject to CBP examination. In
addition, test program participants and carriers will be able to
receive electronic notification concerning the status of an admission
request.
A test participant whose FTZ admission application is rejected by
CBP will be provided with an opportunity to correct the reported error.
A complete re-transmission of the entire admission application through
ABI is required by CBP.
Misconduct Under the Test
A test participant may be subject to civil and criminal penalties,
administrative sanctions, liquidated damages, and/or suspension from
this test for any of the following:
[[Page 48777]]
Failure to abide by the terms and conditions of this test,
and any applicable laws and regulations.
Failure to exercise reasonable care in the execution of
participant obligations.
Misuse of the automated CBP Form 214 (i.e., engaging in
unauthorized disclosure or any activity which interferes with the
successful evaluation of the new technology).
The Executive Director, Trade Compliance and Facilitation, will
administer suspensions for misconduct. A written notice proposing
suspension will be provided to the participant. Such notice will
apprise the participant of the alleged 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, 1300 Pennsylvania Ave., NW., Washington, DC
20229, within 15 calendar days of the notification date. An appeal must
address the alleged facts or conduct charges contained in the notice
and state how compliance has been or will be achieved. In cases of non-
payment, late payment, willful misconduct or where public health
interests or safety is concerned, the suspension may be effective
immediately. The same appeal procedures apply in cases of immediate
suspension.
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 Title 19 of the CFR.
The following evaluation methods and criteria have been suggested:
1. Baseline measurements to be established through data analysis;
2. Questionnaires from both trade participants and CBP addressing
such issues as:
Workload impact (workload shifts/volume, cycle times,
etc.)
Cost savings
Policy and procedure accommodation
Trade compliance impact
Problem resolution
System efficiency
Operational efficiency
Other issues identified by the participant group
Dated: August 12, 2005.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 05-16427 Filed 8-18-05; 8:45 am]
BILLING CODE 9110-06-P