[Federal Register: January 20, 2006 (Volume 71, Number 13)]
[Notices]
[Page 3315-3316]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20ja06-77]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
[USCBP-2006-0017]
Automated Commercial Environment (ACE): National Customs
Automation Program Test of Periodic Monthly Payment Statement Process
AGENCY: Customs and Border Protection; Department of Homeland Security.
ACTION: General notice.
-----------------------------------------------------------------------
SUMMARY: This document announces a modification 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. CBP will no longer require Automated Clearing House
(ACH) credit participants to initiate payment earlier than the 15th
working day of the month as was required by a Federal Register notice
published on August 8, 2005. CBP, however, 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.
DATES: The changes announced in this Notice are effective immediately.
FOR FURTHER INFORMATION CONTACT: For questions regarding periodic
monthly statement payments: Mr. Michael Maricich via e-mail at
Michael.Maricich@dhs.gov, or by telephone at (703) 921-7520.
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. 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.
On August 8, 2005, CBP published a General Notice in the Federal
Register (70 FR 45736) changing the time period allowed for the
periodic monthly deposit of 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. That change was 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. The document also advised that entries containing Census
errors will be eligible to be placed on a Periodic Daily Statement and
designated for monthly payment. Finally, the document announced that a
participant would be subject to a claim for liquidated damages if the
participant removed an entry from a Periodic Daily Statement after
expiration of a 10-working-day period after release.
On September 22, 2005, CBP published a General Notice in the
Federal Register (70 FR 55623) eliminating the requirement that
participants in the Periodic Monthly Statement test provide a bond
rider covering the periodic payment of estimated duties and fees. The
Notice indicated that nonpayment or untimely payment of estimated
duties and fees, however, may result in action by CBP to impose
sanctions on the delinquent importer of record or to allow the surety
to terminate its basic importation bond. If the bond principal is a
participant in the Periodic Monthly Statement test, sureties will now
be allowed, under certain conditions, to terminate bonds with 3
business days notice to the bond principal and CBP.
Modification of the Monthly Payment Statement Process
This Notice modifies the payment procedure set forth in the August
8, 2005 Notice (70 FR 45736) by specifically eliminating the
requirement that ``ACH credit participants must initiate payment no
later than the 14th working day of the month.'' CBP did not intend to
dictate the time in which
[[Page 3316]]
payment must be initiated. 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 August 8, 2005 Notice (70 FR 45736) established monthly payment
processing procedures that incorporated 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.
The process for entries scheduled for monthly payment, as of this
date including the modifications made by this Notice, is 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;
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 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. CBP must receive the settlement for the credit by the 15th
working day of the month 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 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: January 12, 2006.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 06-529 Filed 1-19-06; 8:45 am]
BILLING CODE 9111-14-P