[Federal Register: March 31, 2005 (Volume 70, Number 61)]
[Notices]               
[Page 16510-16511]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31mr05-78]                         

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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

 
Announcement of Change to Merchandise Eligibility Requirements 
for Participation in Remote Location Filing Prototype Two

AGENCY: Customs and Border Protection, Homeland Security.

ACTION: General notice.

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SUMMARY: This notice announces a change to the merchandise eligibility 
requirements for participation in Remote Location Filing (RLF) 
Prototype Two. RLF will now be permitted for cargo that will be moved 
using immediate transportation (IT) and transportation and export (T & 
E) in-bond procedures. CBP has determined that the security risks 
previously associated with in-bond transactions have been greatly 
reduced due to the significant security and cargo-processing gains 
accomplished by the advance cargo information regulations set forth in 
CBP Dec. 03-32, published in the Federal Register (68 FR 68140) on 
December 5, 2003. CBP also realizes that as in-bond transactions are a 
mainstay of international transactions, permitting RLF in an in-bond 
context will enhance the Prototype's usefulness to the trade while 
simultaneously furthering CBP's modernization objectives.

DATES: The change to Remote Location Filing (RLF) Prototype Two will go 
into effect March 31, 2005.

ADDRESSES: Written comments and applications to participate in the 
Prototype should be addressed to the Remote Filing Team, Office of 
Field Operations, Customs and Border Protection, 1300 Pennsylvania 
Avenue, NW., Room 5.2-B, Washington, DC 20229. Comments may also be 
submitted to Sherri Braxton via e-mail at remote.filing@dhs.gov.

FOR FURTHER INFORMATION CONTACT: For systems or automation issues: 
Steve Linnemann (202) 344-1975 or Jennifer Engelbach (562) 366-5593. 
For operational or policy issues: Sherri Braxton via e-mail at 
remote.filing@dhs.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 and Border Protection (CBP) 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 CBP Regulations (19 CFR 
101.9(b)), CBP has developed and tested two RLF prototypes. A 
chronological listing of Federal Register publications detailing 
developments in the RLF prototypes follows:
     On April 6, 1995, CBP announced in the Federal Register 
(60 FR 17605) its plan to conduct the first of at least two RLF test 
prototypes. The first RLF test, designated Prototype One, began on June 
19, 1995.
     On February 27, 1996, CBP announced in the Federal 
Register (61 FR 7300) the expansion of Prototype One and its extension 
until the implementation of RLF Prototype Two.
     RLF Prototype Two commenced on January 1, 1997. See 
document published in the Federal Register (61 FR 60749) on November 
29, 1996.
     CBP announced in the Federal Register (62 FR 64043), on 
December 3, 1997, the extension of RLF Prototype Two until December 31, 
1998.
     On December 7, 1998, CBP announced in the Federal Register 
(63 FR 67511) that Prototype Two would remain in effect until concluded 
by notice in the Federal Register.
     On July 6, 2001, CBP announced in the Federal Register (66 
FR 35693) changes to the RLF Prototype Two eligibility requirements.
     On November 16, 2001, CBP announced in the Federal 
Register (66 FR 57774) a deadline extension for customs brokers 
participating in RLF to submit their national broker permit numbers to 
CBP.
     On February 25, 2003, CBP announced in the Federal 
Register (68 FR 8812) that line release entries would no longer be 
permitted for purposes of RLF Prototype Two, and set forth a 
comprehensive and updated list of current RLF eligibility requirements 
and a description of a new simplified application process.

Change to RLF Prototype Two Merchandise Eligibility Criteria

    This notice announces a change to the merchandise eligibility 
requirements for participation in RLF Prototype Two, whereby RLF will 
now be permitted for cargo that will be moved using immediate 
transportation (IT) or transportation and export (T & E) in-bond 
procedures. This was not allowed under the original terms of RLF 
Prototype Two because CBP was

[[Page 16511]]

concerned with the general lack of security associated with in-bond 
transactions.
    Upon further review, CBP has determined that permitting RLF for 
cargo that has already been moved using immediate transportation in-
bond procedures, or any other transportation entry in-bond, is 
acceptable as the risks previously associated with in-bond transactions 
have been greatly reduced due to the significant security and cargo-
processing gains accomplished by the advance cargo information 
regulations set forth in CBP Dec. 03-32, published in the Federal 
Register (68 FR 68140) on December 5, 2003. CBP also realizes that in-
bond transactions are a mainstay of international transactions. For 
this reason, CBP views permitting RLF in an in-bond context as a means 
of broadening the scope of RLF and thereby enhancing the program's 
usefulness to the trade while simultaneously furthering the Bureau's 
modernization objectives.
    It is noted that with the exception of the change to the RLF 
Prototype Two merchandise eligibility criteria involving in-bond 
transportation procedures, discussed above, all other Prototype 
eligibility requirements, procedures, terms and conditions, as set 
forth in the document published on February 25, 2003, in the Federal 
Register (68 FR 8812), remain in effect.

    Dated: March 25, 2005.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 05-6397 Filed 3-30-05; 8:45 am]

BILLING CODE 4820-02-P