[Federal Register Volume 63, Number 106 (Wednesday, June 3, 1998)]
[Notices]
[Pages 30288-30293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14648]
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DEPARTMENT OF THE TREASURY
Customs Service
Announcement of a General Test Regarding the International Trade
Prototype
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: General Notice.
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SUMMARY: This notice announces Customs' plan to conduct what is
expected to be a series of prototypes collectively called the
International Trade Prototype (ITP). This notice invites public
comments concerning any aspect of the planned prototype, informs
interested members of the public of the eligibility requirements for
voluntary participation in the first phase of the first prototype
called International Trade Prototype 1 (ITP1) and outlines the
development and evaluation methodology to be used in the test. To
participate in the first phase of ITP1, the necessary information, as
outlined in this notice, must be filed with Customs and approval
granted. It is important to note that resources expended by the trade
and Customs on these prototypes may not carry forward to the final
program.
This notice supersedes the information on the International Trade
Prototype published by the International Trade Data System Project
Office of the Treasury Department in the Federal Register on December
31, 1997.
DATES: The first phase of ITP1 will commence no earlier than June 8,
1998 and will run for approximately six months with evaluations of the
prototype occurring periodically. Comments concerning any aspect of
this phase must be received on or before July 6, 1998. Future phases,
prototypes, or participant expansion of this prototype will be
announced in a Federal Register notice.
ADDRESSES: Written comments regarding this notice, and information
submitted to be considered for voluntary participation in this first
phase of ITP1 should be addressed to the U.S. Customs Service,
International Trade Prototype Team, Attn: Linda LeBaron Grasley, 4455
Genesee Street, Bldg. 10, Room #342, Buffalo, New York 14225. Note that
all comments received by U.S. Customs will be part of the public
record.
FOR FURTHER INFORMATION CONTACT: For any prototype or participation
questions please contact Daniel Buchanan, U.S. Customs Service at (617)
565-6236, or Linda LeBaron Grasley, U.S. Customs Service at (716) 626-
0400 x 204, or Kevin Franklin, United Kingdom, Her Majesty's Custom and
Excise at 011 44 171 865 4728 in London, England.
SUPPLEMENTARY INFORMATION:
Background
The ITP has evolved from an international drive to streamline
global trade. In both business and government, around the world,
processes are being automated and reengineered. Trade and information
are moving faster and more effectively all the time. Many international
companies share critical data with business and trading partners around
the world, and they expect government to maintain the leadership
position it has taken in developing domestic electronic trade systems
by moving into the global arena.
The ITP concept has been under consideration by both the U.S.
Customs Service (USCS) and Her Majesty's Custom and Excise (HMCE) since
1996. The nucleus of this program is an extension of ideas developed in
partnership with the trade community by various members of the Trans-
Atlantic Team, which is primarily comprised of USCS and HMCE officers.
The ITP concept also addresses issues raised by international traders,
the World Customs Organization (WCO), the United Nations Conference on
Trade and Development (UNCTAD), G-7 and other international
organizations. The concept is intended to simplify and standardize
customs processes and procedures in order to facilitate trade while
maintaining effective and efficient control. Information on an ITP
prototype contained in an information collection notice published in
the Federal Register (63 FR 68353 on December 31, 1997) is superseded
by this notice.
In the United States Customs Service Annual Plan for Fiscal Year
1998, USCS states a number of objectives associated with increased
cooperation and support of international trade automation. The plan's
objectives include increased cooperation with other customs
administrations at the multilateral, regional and bilateral levels. The
plan further states that USCS will work to promote standardized customs
processing through implementation of ``Customs Guidelines'' and
establishment of best practices. This is to be accomplished by working
with the WCO and the international trade community to promote the
development of international instruments to reduce customs procedural
barriers to trade and to secure greater standardization, transparency,
simplification and automation worldwide.
The developing relationship between the USCS and HMCE leads us to
prototype this concept. The USCS and HMCE have agreed that the ITP will
be delivered in a series of prototypes. Each prototype will be
evaluated against predetermined success criteria. Subsequent ITP
prototypes will build on lessons learned in ITP1 and the need for
enabling legislation will be evaluated.
It is expected that ITP1 will be rolled out in three phases. USCS
and HMCE agree that the first phase of ITP1 will commence no earlier
than June 8, 1998. Additional phases are being planned and future
prototypes are also under consideration.
The USCS will be testing the ITP in accordance with Section 101.9
of the Customs Regulations (19 CFR 101.9), which provides for the
testing to
[[Page 30289]]
evaluate the planned components of the National Customs Automation
Program (NCAP). By virtue of 19 CFR 101.9, USCS may impose requirements
different than those specified in the Customs Regulations; but only to
the extent that such different requirements do not affect the
collection of revenue, public health, safety, or law enforcement.
Description of Proposed International Trade Prototype
The Mission/Vision of the International Trade Prototype is a
standard customs regime that will facilitate the movement of goods
internationally. This regime will operate within an electronic
environment in which there will be automated systems using data which
conform to internationally agreed standards. The amount of information
supplied by business to customs will be minimized to the extent
possible, consistent with the customs administrations' performance of
their missions.
The goal of the project is to allow trade participants to supply
their information only once (seamless transaction, i.e., exports equals
imports) and will be restricted to the information that is essential to
allow customs to effect shipment and clearance of the goods.
More specifically, our Mission/Vision is to deliver an automated
system that utilizes internationally-accepted standard message formats
and codes, streamlines data transmission, simplifies and facilitates
global trade, and assists governments world-wide in enforcing their
laws.
I. Goals, Principles and Scope of ITP1
The following goals, principles and scope support USCS and HMCE
mission and strategic plans and will guide development of the first ITP
prototype.
Customs Administration Cooperation. The ITP will improve
international trade practices that are best addressed through
cooperative efforts between customs administrations, international
traders, and international trade organizations.
International Trade Transactions. This prototype will work toward
the development of harmonized and simplified messages and procedures,
based upon business practices, for transactions that support import,
export, and transportation without the need for redundant entry or
transmission of data.
Commercial and Enforcement Compliance Focus. Each country will
continue to use its own targeting and compliance measurement approaches
and procedures to ensure that the legal requirements of all
participating countries are met.
Account-Based Approach. Both countries will work with prototype
accounts, primarily importers and exporters, to better understand their
systems, procedures, and levels of compliance, with mutual assistance
between designated Customs Account Managers.
Automation and Information Sharing. Automation will allow the
sharing of information to enable the collection and exchange of
standardized information mutually agreed to by both governments in a
secured electronic environment.
Reduce the Burden on the Trade. This prototype will work toward
streamlining government reporting requirements placed upon the trade
community.
The scope of ITP1 will include:
--Air and sea cargo shipments.
--Cargo release, statistical and fiscal reporting, and supporting
information.
--Merchandise restrictions and limitations agreed between customs
administrations.
--Sharing of agreed standard data using various technological means
accepted by both administrations.
--UN/EDIFACT message syntax between governments.
--Unique Consignment Reference Numbers (UCRN) to be used by the USCS
and HMCE in separate formats.
--The HMCE conducting ITP1 in an operational environment.
--The USCS phasing ITP1 into an operational environment.
--Both one-step and two-step export reporting being implemented.
--A two-step import process in which data provided to the export
customs administration is forwarded to the import customs
administration and used to effect import cargo release.
--Acceptance of all participating traders being subject to compliance
review.
--Risk assessment, anti-smuggling, and commercial compliance checks
continuing to be applied to goods being moved under these simplified
procedures.
--Development of agreed joint operational procedures to manage traders'
accounts.
II. Development Methodology
ITP will be monitored by a Joint Prototype Team consisting of trade
participants, the USCS Offices of Field Operations, Strategic Trade,
Information and Technology, International Affairs and other interested
government agencies. This team will meet regularly throughout the
prototype period in appropriate locations to set development
milestones, monitor progress, resolve issues and evaluate program
effectiveness. The development effort will be coordinated with other
on-going National Customs Automation Program (NCAP) prototype programs
such as the NCAP Prototype, Remote Location Filing and Reconciliation,
and will be as consistent as possible with the overall direction of
USCS development of the Automated Commercial Environment (ACE).
Potential participants should recognize that this is a prototype
test of new processes. Data definitions, values and formats for
electronic transmission of data will differ from those currently used
in the Automated Export System (AES) and the Automated Commercial
System (ACS). It is also important to note that development efforts
undertaken for ITP may not meet the eventual requirements for programs
as they are finally implemented.
The public is invited to comment on any aspect of the ITP test as
described by this notice. Public comments received concerning the
methodology of the test program or procedures will be reviewed by USCS
and HMCE.
III. Account-Based Export/Import Declaration Process
In the United States, ITP1 will become operational under a three-
phase implementation.
The general scope of each phase is as follows:
(1) ITP1.1 will be a parallel (non-operational) test of pre-
departure export notification;
(2) ITP1.2 will be operational for pre-departure export
notification and import cargo release; and
(3) ITP1.3 will be the full implementation of ITP1 and will be
operational for full export declaration and import entry summary
acceptance and processing.
The full implementation of ITP1 will test an account-based
declaration process that integrates preliminary export and preliminary
import reporting. For shipments processed under ITP1 procedures, export
notification and import cargo examination decisions will be based
primarily on pre-established account/entry information, minimizing the
transaction data that needs to be transmitted to customs authorities
prior to release of cargo. Cargo examinations will also be performed on
the basis of selectivity criteria and for random compliance measurement
sampling. Complete export declaration data may be transmitted following
exportation. Detailed import entry summary data will be reported on a
monthly cycle, and
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payment of duties, taxes and fees will be based on a monthly statement
cycle employing semi-monthly estimated payments. The full developed
account-based declaration process will be a fully electronic process;
no paper documents will be required or accepted at that time.
When ITP1 is fully implemented, export reporting, import cargo
release and assessment of duties, taxes and fees will be based on data
transmitted to the ITP1 system. For shipments processed in the fully
implemented ITP1 system, participants will not be required to provide
parallel filing of ACS or AES data or of paper documents.
In order for a shipment to be eligible for processing under ITP1
procedures, both the exporter and the importer of the shipment must be
ITP1 participants in their respective countries. While various
automatic notifications and back-up procedures will also be supported,
the basic declaration flow for U.S. exports in the full implementation
of ITP1 will be as follows:
1. The exporter's application, including any amendments, will be
used to assess the suitability of proposed export shipments for ITP
processing.
2. The exporter or an authorized agent will transmit a pre-
departure export notification message to USCS for each ITP shipment
exported from the U.S. The data elements of the pre-departure export
notification message are listed under ``DESCRIPTION OF PROPOSED FIRST
PHASE OF ITP1,'' below.
3. ITP1 shipments exported from the U.S. will be subject to
physical inspections and compliance reviews by various federal
agencies.
4. Upon departure of the exporting conveyance, USCS will forward
the data from the pre-departure export notification message to HMCE.
5. HMCE will use the forwarded data from the pre-departure export
notification message to effect import cargo release in the United
Kingdom (U.K.)
6. The U.S. exporter or an authorized agent will transmit a
complete export declaration to USCS prior to a specified periodic
filing deadline. These data may be transmitted at any time following
the pre-departure export notification and may be transmitted following
departure of the exporting conveyance. Data from the complete export
declaration will not be forwarded to HMCE.
The basic declaration flow for U.S. imports in the full
implementation of ITP1 will be as follows. Note that no data
transmitted by participants to USCS with regard to importations into
the U.S. will be forwarded to HMCE.
1. The U.K. exporter or an authorized agent will transmit a pre-
departure export notification message to HMCE for each ITP shipment
exported from the U.K. These data will consist of the same data
elements as a U.S. pre-departure export notification message. These
data elements are listed under ``DESCRIPTION OF PROPOSED FIRST PHASE OF
ITP1,'' below.
2. Upon departure of the exporting conveyance, HMCE will forward
the data from the pre-departure export notification message to USCS.
3. The importer's application, including any amendments, will serve
as a pre-filed entry for each ITP1 shipment. USCS will assign an ITP
Authorization Code to each participant who imports into the U.S.A.
participating importer or an authorized broker will electronically
transmit data to USCS to provide timely and accurate identification of
any changes to the original application, e.g., changes in a
participant's ITP business partners and merchandise imported under the
prototype.
4. USCS will assign a filer and entry number to each shipment. The
entry filer, i.e., importer or authorized agents (brokers) designated
by the importer, for ITP shipments at the port of unloading will be
assigned to the entry. The entry number will be assigned from the range
of entry numbers provided in advance by each designated entry filer for
that purpose. When an importing conveyance arrives, ITP shipments for
which no physical examination of cargo is required will be released
without additional data or documentation. For any shipment selected by
USCS for physical examination of cargo, USCS will issue an electronic
request for additional information to the entry filer. This request may
be satisfied by transmission of partial entry summary and commercial
data, as defined by USCS, plus packing data. The commercial data
required for cargo examination will be at the detailed item level.
Cargo will not be examined until these data are received by USCS.
5. The date of entry will be the date, after the merchandise
arrives, the merchandise is released into the commerce of the United
States. The release will obligate a continuous bond identified for that
purpose by the participant importer whose ITP Authorization Code is
present in the pre-departure export notification data forwarded to USCS
by HMCE.
6. For each shipment released during a calendar month, the entry
filer must electronically transmit complete entry summary data to USCS
on or before the filing deadline for that month. The filing deadline
for each month will be the 10th calendar day of the following month,
or, if the 10th falls on a weekend or holiday, the next business day.
Entry summary data transmitted prior to this deadline will be
considered provisional and may be replaced by the entry filer anytime
before the deadline. All summaries filed on or before the deadline will
be considered as filed on the deadline date.
7. For any entry summary selected by USCS for data review, USCS
will issue an electronic request for complete commercial data to the
entry filer. This request must be satisfied by electronic transmission
of a complete set of commercial data, as defined by USCS, plus packing
data if specifically requested.
8. In order to permit a different procedure to test the periodic
deposit of estimated duties without adversely affecting the collection
of revenue, participants who import into the U.S. must abide by the
following procedures. Each participating importer will make semi-
monthly preliminary estimated payments through an electronic medium.
Preliminary estimated payments will be initiated electronically using
ACH credit on the 15th and the last day of the month. If the 15th or
the last day of the month falls on a weekend or holiday, the payment
must be initiated the next business day. Under the prototype, special
electronic payment procedures will be utilized. The preliminary
estimated payments will be based upon the following percentages: (a)
the payment initiated on the 15th will be 75% of the estimated amount
due on all releases for the 1-15th of the month, and (b) the payment
initiated on the last day of the month will be 57% of the estimated
amount due on all releases from the 16th to the last day of the month.
These percentages will be reviewed and may have to be adjusted to
maintain revenue neutrality. Payment for the remaining balance will be
initiated electronically on the 15th of the following month, and it is
this date which USCS and the participants agree will serve as the date
of actual deposit of estimated duties and fees for purposes of
assessing interest under 19 U.S.C. 1505. USCS will issue two statements
each month, one before and one after the monthly filing deadline. Each
statement will list each importer's ITP activity at all locations for
the reporting month, and will indicate whether entry summary data has
been filed and, if it has, estimated duties and fees.
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IV. Remote Location Filing
Remote location filing allows participants to electronically file
data for the entry of merchandise with USCS from any location in the
United States other than the port designated in the entry for
examination.
One aspect of remote location filing will be supported in ITP1 and
use of this aspect is voluntary, but the same electronic data
transmission requirements will apply for all prototype participants. A
U.S. ITP1 participant who will be filing remotely must meet the
criteria for remote filing established in 19 U.S.C. 1414.
An ITP1 participant will be voluntarily utilizing remote filing if
the electronic transmission of an entry, entry summary, invoice data
(when required by USCS) and payment of duties, fees, and taxes is
received from a participant not located in the port of arrival, which
for purposes of this prototype will also be the port of examination as
designated in the entry information.
The designation of alternative locations for cargo examination will
not be supported in ITP1. All cargo examinations will be conducted at
the port where the cargo first arrives in the United States.
V. Description of Proposed First Phase of ITP1
USCS and HMCE agreed that the first phase of ITP1 (ITP1.1) will
commence on June 8, 1998. The number of U.S. participants will be
limited. In order for a shipment to be eligible for processing under
ITP1.1 procedures, both the exporter and the importer of the shipment
must be ITP1 participants in their respective countries. No more than
six U.S. ports will be included in ITP1.1. Port selections will be
based on applicants' requests. While ITP1.1 will be a parallel test in
the U.S., it will have operational status in the U.K. As a result, pre-
departure export notifications transmitted by participating U.S.
exporters or their authorized agents will be used to effect operational
release of the cargo upon importation into the U.K. Applicants should
note that participants must agree to the transmission of these data
between governments.
For U.S. exports in ITP1.1:
1. The exporter or an authorized agent will transmit a pre-
departure export notification message to USCS for each ITP shipment
exported from the U.S. The proposed data elements for pre-departure
export notifications in ITP1.1 are:
--Universal Consignment Reference Number (to identify transactions)
--Country of Export
--Mode of Transportation
--Port of Loading
--Shipping Reference (identification of Bill of Lading or Air Waybill)
--Shipping Quantity
--Exporter
--Importer
In the U.S. the ITP1.1 pre-departure export notification will be
tested in parallel. All U.S. export reporting requirements for ITP1.1
shipments must be satisfied through existing export reporting
procedures and systems.
2. USCS will forward the data from the pre-departure export
notification message to HMCE.
3. HMCE will use the forwarded data from the pre-departure export
notification message to effect operational import cargo release in the
U.K.
For U.S. imports in ITP1.1:
1. The U.K. exporter or an authorized agent will transmit a pre-
departure export notification message to HMCE for each ITP shipment
exported from the U.K. These data will consist of the same data
elements as a U.S. pre-departure export notification message. U.K.
filers of pre-departure export notifications will transmit the U.S.
importer's ITP Authorization Code to identify the importer. The pre-
departure export notification will have operational status for U.K.
export reporting.
2. Upon departure of the exporting conveyance, HMCE will forward
the data from the pre-departure export notification message to USCS.
3. In the U.S., the ITP1.1 pre-departure export notification will
be tested in parallel. All U.S. import reporting requirements for
ITP1.1 shipments must be satisfied through existing import reporting
procedures and systems.
Note that no ITP1.1 data is transmitted by participants to USCS
with regard to importations into the U.S.
VI. Eligibility Requirements
Customs will select a limited number of participants for ITP1.1. In
order to be eligible for participation in ITP1.1, a company operating
in the United States must:
1. Have the ability to provide electronically, on an entry-by-entry
basis, the following: entry, entry summary, invoice information; and
payment of duties, fees, and taxes through the Automated Clearing House
(ACH);
2. Be scheduled for, participating in, or, in the application,
agree to undergo and cooperate fully with a Customs Compliance
Assessment. At the time the application is filed, if any Customs audit
is in progress, the importer must be fully cooperating in all aspects
of the Customs Compliance Assessment and any related audit, providing
timely and accurate information and adequate resources necessary for
USCS to conduct a Customs Compliance Assessment or audit; and be in
full compliance with the terms of any associated Compliance Improvement
Plan.
3. Export merchandise from the U.S. for importation into the U.K.
and/or import into the U.S. merchandise exported from the U.K. Note
that in order for a shipment to be eligible for processing under ITP1
procedures, both the exporter and the importer of the shipment must be
ITP1 participants in their respective countries. It is therefore
important that potential U.S. participants coordinate their
participation with that of their U.K. trading partners; and
4. For participants who wish to include U.S. export shipments in
the ITP1.1 test, provide or arrange for provision of timely and
accurate electronic transmission to USCS of pre-departure export
notification data for all included U.S. export shipments. If a
participant does not transmit electronic data for a particular export
shipment, USCS may exclude that shipment from ITP processing.
Applications will be accepted from all volunteers; however,
priority consideration will be given to:
1. Companies within the top 379 U.S. importers ranked by entered
value (the top 379 represent approximately 50 percent of all imports by
value);
2. Companies within the top 250 U.S. importers within any of the
USCS Primary Focus Industry (PFI) categories, which are:
a. Advanced Displays;
b. Agriculture;
c. Auto/Truck Parts;
d. Automobiles;
e. Bearings;
f. Circuit Boards;
g. Fasteners;
h. Footwear;
i. Manufacturing Equipment;
j. Steel Products;
k. Telecommunications;
l. Textiles and Flatgoods; and
m. Wearing Apparel;
3. Companies at least 50 percent of whose imports are in PFI
categories; and
4. Companies that indicate they plan to maintain an average of at
least 10 entries per month throughout the prototype period.
ITP1.1 participants who wish to continue to participate in
subsequent
[[Page 30292]]
operational phases of ITP1 will further be required to file or maintain
a continuous bond with sufficient liability coverage. They will also be
required to provide or arrange for provision of timely and accurate
electronic transmission to USCS of data required to pre-identify
parties and commodities involved in ITP transactions, and of all data
required in prototype declaration processes as they are phased into
ITP1.
VII. General Requirements
For ITP1, the following restrictions will be placed upon
participants.
Participants who will include shipments exported from the U.S.:
A. Must export merchandise identified in the application as being
from their typical commodities in their established lines of business
to pre-identified U.K. importers;
B. Must export only the merchandise identified in the application
as being within a range of pre-identified commodities (classified at
the 6-digit HTS level);
C. Must export merchandise using carriers pre-identified in the
application;
D. Must export merchandise from a port selected by USCS for
inclusion in the current phase of ITP1;
E. May not include export shipments of used vehicles or of DEA
essential and precursor chemicals for the manufacture of narcotics,
shipments subject to State Department licensing or shipments destined
to an embargoed nation;
F. Must not export any merchandise subject to export prohibitions
or restrictions;
G. May not export ITP1 merchandise under a transportation and
exportation (T&E) entry;
H. Are responsible for ensuring that ineligible merchandise is not
included in ITP1 shipments. Customs will exclude ineligible shipments
from ITP1 processing.
Participants who will include shipments imported into the U.S.:
A. Must provide electronically, on an entry-by-entry basis, the
following: entry, entry summary, invoice information; and payment of
duties, fees, and taxes through the Automated Clearing House (ACH);
B. Must enter merchandise identified in the application as being
from their typical commodities in their established lines of business
from pre-identified U.K. exporters;
C. Must enter only the merchandise identified in the application as
being within a range of pre-identified commodities (classified at the
6-digit HTS level);
D. Must enter merchandise transported by carriers pre-identified in
the application;
E. Must enter merchandise for release into the commerce under a
consumption entry at the port of unloading, i.e., may not enter ITP1
merchandise into a warehouse or Foreign Trade Zone, or as an in-bond
entry;
F. Must enter merchandise at a port selected by USCS for inclusion
in the current phase of ITP1;
G. May not enter merchandise in ITP1 if it is subject to
antidumping or countervailing duty, quota, trade preference level or
visa requirements, or pre-release reporting requirements imposed by
other federal agencies;
H. Must not import prohibited merchandise in prototype shipments;
and,
I. Are responsible for ensuring that ineligible merchandise is not
included in ITP1 shipments, and that all shipments aboard a conveyance
are eligible for ITP1 processing. Customs will exclude ineligible
shipments from ITP1 processing.
VIII. Application
Importers and exporters who wish to participate in ITP1.1 must
submit a written application within 30 days of this notice including
the following information:
1. Participant name, address and designated contact person.
2. For all exported cargo proposed for inclusion in the ITP1.1
test:
--Names and addresses of all U.K. importers;
--For each U.K. importer, a listing of all the 6-digit HTS numbers in
which the commodities to be exported are classified;
--Detailed explanation of any licenses or permits required for export
of the listed commodities;
--Lists of all air and ocean freight carriers to be used;
--For each carrier, a listing of the U.S. ports of loading at which the
carrier will be used; and
--An estimate of the total number of export shipments per month the
participant expects to include in the ITP1.1 test for each mode of
transportation at each U.S. port of loading.
3. For all imported cargo proposed for inclusion in the ITP1.1
test:
--Names and addresses of all U.K. exporters;
--For each U.K. exporter, a listing of all the 6-digit HTS numbers in
which the commodities to be imported are classified
--Lists of all air and ocean freight carriers to be used;
--For each carrier, a listing of the U.S. ports of unloading they
prefer to us; and,
--An estimate of the total number of import shipments per month the
participant expects to include in the ITP1.1 test for each mode of
transportation at each U.S. port of unloading.
4. For applicants not already scheduled for or participating in a
Customs Compliance Assessment, a statement in which the applicant
indicates agreement to undergo and cooperate fully with a Customs
Compliance Assessment.
5. A statement indicating that the participant will comply with the
procedures and restrictions of the prototype.
6. A statement indicating that the applicant agrees to the sharing
of pre-departure export notification data and other information between
the HMCE and USCS. This includes information in regard to imported/
exported commodities, value determination, and company structure and
finance. This information will be shared between UK and US Account
Managers to better understand importer and exporter systems,
procedures, and levels of compliance.
USCS will make import admissibility determinations on ITP shipments
imported into the U.S. based on any cargo examinations and the
information supplied with the application, which shall serve as a pre-
filed entry for ITP purposes. Applications may be referred to other
government agencies for review. All ITP1.1 applicants will be notified
in writing of their acceptance or rejection. USCS will assign an ITP
Authorization Code to each accepted participant whose application
indicates intent to include imports into the U.S. in the ITP1.1 test.
The USCS, with the HMCE, will schedule meetings with each accepted
participant to review the current prototype proposal, data elements,
technologies, and evaluation criteria.
If an applicant is denied participation, the notification letter
will include the reasons for that denial. The applicant may appeal such
decision in writing within 10 days to the Trade Compliance Process
Owner. Applicants who are denied participation in ITP1.1 may re-apply
if USCS subsequently opens participation to additional participants.
USCS will publish a notice in the Federal Register if an expansion of
participation is planned.
Applicants should note that participation is not confidential, and
that lists of participants will be made
[[Page 30293]]
available to the public. Additionally, all comments provided to U.S.
Customs will be part of the public record.
IX. Maintenance of Account Information
Throughout the prototype period, participants must provide USCS
with advance notification of any changes in the information provided in
the application. This notification must be provided to USCS at least
seven days before the effective date of a change and will be considered
an amendment to the application. By notification of the participant,
USCS may reject such an amendment or prohibit the participant's use of
a particular carrier, U.K. importer or exporter, or the export or
import of particular merchandise under this prototype.
ITP1.1 participants who wish to include imported cargo in
subsequent operational phases of ITP1 will be required to provide
additional information, including but not limited to the issuer and
number of the continuous surety bond which will cover all cargo
imported under ITP1 procedures and designation of a single entry filer
for each port at which imported cargo will be unloaded. Each entry
filer designated by one or more participant importers must provide USCS
with a range of entry numbers to be reserved for assignment by USCS to
ITP1 shipments. Entry filers may not assign these numbers to
transactions other than ITP transactions.
X. Misconduct Under Prototype
All participants in ITP1 are required to abide by the terms and
conditions of this notice.
A participant may be suspended from the prototype, subject to
liquidated damages, penalties, and/or other administrative sanctions,
and/or prevented from participation in future prototypes if a
participant fails to cooperate fully in a Compliance Assessment or
audit, provide timely and accurate data and adequate resources in
support of a Customs Compliance Assessment or audit, or comply fully
with the terms of a Compliance Improvement plan; participant exports or
attempts to export goods to U.K. importers or conveyed by carriers not
approved by USCS; exports or attempts to export goods classified in
commodity ranges not approved by USCS; exports or attempts to export or
submits data relating to prohibited merchandise or other non-eligible
merchandise; enters or attempts to enter goods from U.K. exporters or
conveyed by carriers not approved by USCS; enters or attempts to enter
goods classified in commodity ranges not approved by USCS; participant
files non-consumption import entries; enters or attempts to enter or
submits data relating to prohibited merchandise, merchandise subject to
quota or antidumping or countervailing duties, or other non-eligible
merchandise; fails to maintain sufficient continuous bond coverage;
files erroneous or untimely data; makes late or inadequate payments;
fails to supply USCS with requested invoice data; fails to maintain a
sufficient level of compliance; fails to exercise reasonable care in
the execution of participant obligations; or otherwise fails to follow
the procedures outlined herein, and applicable laws and regulations.
USCS has the discretion to suspend a prototype participant based on the
determination that an unacceptable compliance risk exists. This
suspension may be invoked at any time after acceptance in the
prototype.
Any decision proposing suspension of a participant may be appealed
in writing to the Director, Trade Compliance, within 15 days of the
decision date. Such proposed suspension will apprise the participant of
the facts or conduct warranting suspension. Should the participant
appeal the notice of proposed suspension, the participant should
address the facts or conduct charges contained in the notice and state
how he does or will achieve compliance. However, in the case of
willfulness or where public health interests or safety are concerned,
the suspension may be effective immediately.
Regulatory Provisions Suspended
Certain provisions of Parts 24, 111, 113, 141, 142, 143, and 159 of
the Customs Regulations (19 CFR Parts 24, 111, 113, 141, 142, 143, and
159) will be suspended during operational phases of the ITP1 test to
allow for monthly filing of entry summary data, periodic payment of
duties, taxes and fees, liquidation, billing and remote filing by
Customs brokers in ports where they currently do not hold permits.
Absent any specified alternate procedure, the current regulations
apply.
Prototype Evaluation
Once the participants are selected for ITP1.1, the Joint Prototype
Team will, during the initial six months of the test period, evaluate
the effectiveness of the automation involved. Subsequent reviews will
additionally consist of evaluating the data received from the
participants, along with the internal and external process operations
of the ITP. The intention of the evaluations is to enhance operational
procedures and to develop the detailed data requirements that are
needed for ITP.
Note that the fact of participation in the ITP is not confidential
information. Lists of participants, comments provided to U.S. Customs,
and evaluation results may be made available to the public by means of
the Customs Electronic Bulletin Board and the Customs Administrative
Message System, and upon written request. The G-7 countries will
participate in evaluation development and review. We stress that all
interested parties are invited to comment on the design, conduct, and
evaluation of ITP at any time during prototype.
Upon conclusion of the prototype the final results will be
published in the Federal Register and the Customs Bulletin as required
by Sec. 101.9(b), Customs Regulations and reported to Congress.
Dated: May 29, 1998.
Samuel H. Banks,
Acting Commissioner of Customs.
[FR Doc. 98-14648 Filed 6-2-98; 8:45 am]
BILLING CODE 4820-02-P