Privacy Act of 1974; U.S. Customs and Border Protection-010 Persons Engaged in International Trade in Customs and Border Protection Licensed/Regulated Activities System of Records, 77753-77757 [E8-29799]

Agencies

• Office of the Secretary
• DEPARTMENT OF HOMELAND SECURITY

[Federal Register Volume 73, Number 245 (Friday, December 19, 2008)]
[Notices]
[Pages 77753-77757]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-29799]


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DEPARTMENT OF HOMELAND SECURITY

Office of the Secretary

[Docket No. DHS-2008-0155]


Privacy Act of 1974; U.S. Customs and Border Protection--010 
Persons Engaged in International Trade in Customs and Border Protection 
Licensed/Regulated Activities System of Records

AGENCY: Privacy Office; DHS.

ACTION: Notice of Privacy Act system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, the Department of 
Homeland Security is giving notice that it proposes to consolidate 
eight legacy record systems into a U.S. Customs and Border Protection 
system of records notice titled, U.S. Customs and Border Protection 
Persons Engaged in International Trade in Customs and Border Protection 
Licensed/Regulated Activities: Treasury/CS.040 Carrier File, October 
18, 2001; Treasury/CS.041 Cartmen or Lightermen, October 18, 2001; 
Treasury/CS.057 Container Station Operator Files, October 18, 2001; 
Treasury/CS.069 Customs Brokers File, October 18, 2001; Treasury/CS.137 
List of Vessel Agents Employees, October 18, 2001; Treasury/CS.260 
Warehouse Proprietor Files, October 18, 2001; Treasury/CS.271 Cargo 
Security Record System, October 18, 2001; and Treasury/CS.274 
Importers, Brokers, Carriers, Individuals and Sureties Master Files, 
October 18, 2001. Categories of individuals, categories of records, and 
the routine uses have been consolidated and updated to better reflect 
the U.S. Customs and Border Protection record systems that collect and 
maintain information on persons engaged in international trade in 
Customs and Border Protection licensed/regulated activities. The 
Department of Homeland Security is

[[Page 77754]]

issuing a Notice of Proposed Rulemaking concurrent with this SORN in 
the Federal Register. The exemptions for the legacy system of records 
notices will continue to be applicable until the final rule for this 
system of records notice is completed. This system will be included in 
the Department's inventory of record systems.

DATES: Written comments must be submitted on or before January 20, 
2009. This new system will be effective January 20, 2009.

ADDRESSES: You may submit comments, identified by docket number DHS-
2008-0155 by one of the following methods:
     Federal e-Rulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Fax: 1-866-466-5370.
     Mail: Hugo Teufel III, Chief Privacy Officer, Privacy 
Office, Department of Homeland Security, Washington, DC 20528.
     Instructions: All submissions received must include the 
agency name and docket number for this rulemaking. All comments 
received will be posted without change and may be read at https://
www.regulations.gov, including any personal information provided.
     Docket: For access to the docket to read background 
documents or comments received, go to https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For general questions please contact: 
Laurence E. Castelli (202-325-0280), Chief, Privacy Act Policy and 
Procedures Branch, U.S. Customs and Border Protection, Office of 
International Trade, Regulations & Rulings, Mint Annex, 1300 
Pennsylvania Ave., NW., Washington, DC 20229. For privacy issues 
contact: Hugo Teufel III (703-235-0780), Chief Privacy Officer, Privacy 
Office, U.S. Department of Homeland Security, Washington, DC 20528.

SUPPLEMENTARY INFORMATION:

I. Background

    Pursuant to the savings clause in the Homeland Security Act of 
2002, Public Law 107-296, Section 1512, 116 Stat. 2310 (November 25, 
2002), the Department of Homeland Security (DHS)/U.S. Customs and 
Border Protection (CBP) have relied on preexisting Privacy Act systems 
of records notices for the collection and maintenance of records 
pertaining to persons engaged in international trade in CBP licensed/
regulated activities.
    As part of its efforts to streamline and consolidate its record 
systems, DHS is establishing a component system of records under the 
Privacy Act (5 U.S.C. 552a) for DHS/CBP that deals with persons engaged 
in international trade in CBP licensed/regulated activities. This 
record system is titled, U.S. Customs and Border Protection Persons 
Engaged in International Trade in CBP Licensed/Regulated Activities. 
This system will be used by DHS/CBP to collect and maintain records on 
persons engaged in international trade in CBP licensed/regulated 
activities.
    In accordance with the Privacy Act of 1974, DHS is giving notice 
that it proposes to consolidate eight legacy record systems into a DHS/
CBP system of records notice titled, U.S. Customs and Border Protection 
Persons Engaged in International Trade in Customs and Border Protection 
Licensed/Regulated Activities: Treasury/CS.040 Carrier File (66 FR 
52984 October 18, 2001); Treasury/CS.041 Cartmen or Lightermen (66 FR 
52984 October 18, 2001); Treasury/CS.057 Container Station Operator 
Files (66 FR 52984 October 18, 2001); Treasury/CS.069 Customs Brokers 
File (66 FR 52984 October 18, 2001); Treasury/CS.137 List of Vessel 
Agents Employees (66 FR 52984 October 18, 2001); Treasury/CS.260 
Warehouse Proprietor Files (66 FR 52984 October 18, 2001); Treasury/
CS.271 Cargo Security Record System (66 FR 52984 October 18, 2001); and 
Treasury/CS.274 Importers, Brokers, Carriers, Individuals and Sureties 
Master Files (66 FR 52984 October 18, 2001). Categories of individuals, 
categories of records, and the routine uses have been consolidated and 
updated to better reflect DHS/CBP record systems that collect and 
maintain information on persons engaged in international trade in CBP 
licensed/regulated activities. Additionally, DHS is issuing a Notice of 
Proposed Rulemaking (NPRM) concurrent with this system of records 
notice (SORN) in the Federal Register. The exemptions for the legacy 
system of records notices will continue to be applicable until the 
final rule for this SORN is completed. This system will be included in 
the Department's inventory of record systems.

II. Privacy Act

    The Privacy Act embodies fair information principles in a statutory 
framework governing the means by which the U.S. Government collects, 
maintains, uses, and disseminates individuals' records. The Privacy Act 
applies to information that is maintained in a ``system of records.'' A 
``system of records'' is a group of any records under the control of an 
agency for which information is retrieved by the name of an individual 
or by some identifying number, symbol, or other identifying particular 
assigned to the individual. In the Privacy Act, an individual is 
defined to encompass U.S. citizens and lawful permanent residents. As a 
matter of policy, DHS extends administrative Privacy Act protections to 
all individuals where systems of records maintain information on U.S. 
citizens, lawful permanent residents, and visitors. Individuals may 
request access to their own records that are maintained in a system of 
records in the possession or under the control of DHS by complying with 
DHS Privacy Act regulations, 6 CFR part 5.
    The Privacy Act requires each agency to publish in the Federal 
Register a description denoting the type and character of each system 
of records that the agency maintains, and the routine uses that are 
contained in each system in order to make agency record keeping 
practices transparent, to notify individuals regarding the uses of 
their records, and to assist individuals to more easily find such files 
within the agency. Below is the description of the DHS/CBP Persons 
Engaged in International Trade in CBP Licensed/Regulated Activities 
System of Records.
    In accordance with 5 U.S.C. 552a(r), DHS has provided a report of 
this system of records to the Office of Management and Budget (OMB) and 
to Congress.
System of Records: DHS/CBP-010

System name:
    U.S. Customs and Border Protection Persons Engaged in International 
Trade in Customs and Border Protection Licensed/Regulated Activities.

Security classification:
    Unclassified.

System location:
    Records are maintained at the U.S. Customs and Border Protection 
Headquarters in Washington, DC and in field offices.

Categories of individuals covered by the system:
    Categories of individuals covered by this system include importers, 
brokers, carriers, sureties; officers/owners, employees, associates of 
customs bonded carriers, drivers of motor vehicles, licensed cartmen, 
licensed lightermen, individuals and firms who have applied for or hold 
a license as a bonded cartman or lighterman, individuals employed by 
cartmen or lightermen, present and past container station operators and 
warehouse proprietors and their employees, including those who require 
an

[[Page 77755]]

investigation, licensed customs brokers, employees of customs brokers, 
individuals or firms who have applied for a broker's license, airport 
and airline employees with access to the CBP controlled area of a 
terminal, and employees of vessel agents.

Categories of records in the system:
    Categories of records in this system may include:
     Individual's name;
     Social security number;
     Date and place of birth;
     Addresses and notification of change of address;
     Personal characteristics;
     Photograph or other biometrics;
     History of past employment;
     Previous five years residences,
     Alias;
     Citizenship;
     Military records;
     Criminal record other than traffic violations;
     Use of narcotic drugs;
     Organization's name;
     Copies of bonds, entries, bills, and data center listings;
     Location of business records;
     Status reports of individuals' application including 
issuance, denial or renewal;
     Copies of incoming and outgoing correspondence relating to 
persons engaged in international trade in CBP licensed/regulated 
activities;
     Requests for written approval to employ persons who have 
been convicted of a felony;
     Applications for cartmen/lightermen licenses and 
identification cards;
     Applications and approvals/denials of bonds to act as 
container station operator or warehouse proprietor;
     Reports of investigations;
     Fingerprint cards;
     Information regarding proposed administrative disciplinary 
action against customs brokers for violation of the regulations 
governing the conduct of their business; and
     Determinations as to whether CBP issued or did not issue a 
particular license or permit and the type of license or permit.
    Authority for maintenance of the system:
    5 U.S.C. 301; the Federal Records Act, 44 U.S.C. 3101; Executive 
Order 9373; 19 U.S.C. 1484, 1485, 1498, 1499, 1509, 1551, 1551a, 1555, 
1556, 1565, 1624, and 1641; 19 CFR parts 19, 111, 112, 113, 141, 142, 
148, and 163..

Purpose(s):
    The purpose of this system is to collect and maintain records on 
persons engaged in international trade in CBP licensed/regulated 
activities. These records include identifying information as well as 
the results of background checks or official vetting performed to 
ensure that CBP's approval of the individuals' right to perform the 
licensed or regulated activity is appropriate.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, all or a portion of the records of 
information contained in this system may be disclosed outside DHS as a 
routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
    A. To the Department of Justice or other Federal agency conducting 
litigation or in proceedings before any court, adjudicative or 
administrative body, when it is necessary to the litigation and one of 
the following is a party to the litigation or has an interest in such 
litigation:
    1. DHS or any component thereof;
    2. Any employee of DHS or any component in his/her official 
capacity;
    3. Any employee of DHS or any component in his/her individual 
capacity where DOJ or DHS has agreed to represent the employee; or
    4. The U.S. or any agency thereof, is a party to the litigation or 
has an interest in such litigation, and DHS or CBP determines that the 
records are both relevant and necessary to the litigation and the use 
of such records is compatible with the purpose for which DHS or CBP 
collected the records.
    B. To a congressional office in response to an inquiry from that 
congressional office made at the request of the individual to whom the 
record pertains.
    C. To the National Archives and Records Administration or other 
Federal government agencies pursuant to records management inspections 
being conducted under the authority of 44 U.S.C. 2904 and 2906.
    D. To an agency, organization, or individual for the purpose of 
performing audit or oversight operations as authorized by law, but only 
such information as is necessary and relevant to such audit or 
oversight function.
    E. To appropriate agencies, entities, and persons when:
    1. DHS or CBP suspects or has confirmed that the security or 
confidentiality of information in the system of records has been 
compromised;
    2. DHS or CBP has determined that as a result of the suspected or 
confirmed compromise there is a risk of harm to economic or property 
interests, identity theft or fraud, or harm to the security or 
integrity of this system or other systems or programs (whether 
maintained by DHS, CBP, or another agency or entity) or harm to the 
individual who relies upon the compromised information; and
    3. The disclosure made to such agencies, entities, and persons is 
reasonably necessary to assist in connection with DHS or CBP's efforts 
to respond to the suspected or confirmed compromise and prevent, 
minimize, or remedy such harm.
    F. To contractors and their agents, grantees, experts, consultants, 
and others performing or working on a contract, service, grant, 
cooperative agreement, or other assignment for DHS or CBP, when 
necessary to accomplish an agency function related to this system of 
records. Individuals provided information under this routine use are 
subject to the same Privacy Act requirements and limitations on 
disclosure as are applicable to DHS/CBP officers and employees.
    G. To appropriate Federal, State, local, tribal, or foreign 
governmental agencies or multilateral governmental organizations 
responsible for investigating or prosecuting the violations of, or for 
enforcing or implementing, a statute, rule, regulation, order, license, 
or treaty where DHS determines that the information would assist in the 
enforcement of civil or criminal laws.
    H. To an appropriate Federal, State, local, tribal, foreign, or 
international agency, if the information is relevant and necessary to a 
requesting agency's decision concerning the hiring or retention of an 
individual, or issuance of a security clearance, license, contract, 
grant, or other benefit, or if the information is relevant and 
necessary to a DHS decision concerning the hiring or retention of an 
employee, the issuance of a security clearance, the reporting of an 
investigation of an employee, the letting of a contract, or the 
issuance of a license, grant or other benefit and disclosure is 
appropriate to the proper performance of the official duties of the 
person making the request.
    I. To a court, magistrate, or administrative tribunal in the course 
of presenting evidence, including disclosures to opposing counsel or 
witnesses in the course of civil discovery, litigation, or settlement 
negotiations or in connection with criminal law proceedings or in 
response to a subpoena form a court of competent jurisdiction.
    J. To third parties during the course of a law enforcement 
investigation or

[[Page 77756]]

background check to the extent necessary to obtain information 
pertinent to the investigation, provided disclosure is appropriate to 
the proper performance of the official duties of the officer making the 
disclosure.
    K. To the news media and the public, with the approval of the Chief 
Privacy Officer in consultation with counsel, when there exists a 
legitimate public interest in the disclosure of the information or when 
disclosure is necessary to preserve confidence in the integrity of DHS 
or is necessary to demonstrate the accountability of DHS's officers, 
employees, or individuals covered by the system, except to the extent 
it is determined that release of the specific information in the 
context of a particular case would constitute an unwarranted invasion 
of personal privacy.

Disclosure to consumer reporting agencies:
    None.

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Records in this system are stored electronically or on paper in 
secure facilities in a locked drawer behind a locked door. The records 
are stored on magnetic disc, tape, digital media, and CD-ROM.

Retrievability:
    Records are retrieved by individual's name or organization's name.

Safeguards:
    Records in this system are safeguarded in accordance with 
applicable rules and policies, including all applicable DHS automated 
system security access policies. Strict controls have been imposed to 
minimize the risk of compromising the information that is being stored. 
Access to the computer system containing the records in this system is 
limited to those individuals who have a need to know the information 
for the performance of their official duties and who have appropriate 
clearances or permissions.

Retention and disposal:
     Carrier records are retained by CBP for six years after 
the death of the licensee or revocation in accordance with the CBP, 
Records Control Manual, Schedule 6, Custody of Merchandise, Item 2.
     Broker files and records of broker's employees are 
retained by CBP for six years after the death of the licensee or 
revocation in accordance with the CBP, Records Control Manual, Schedule 
6, Custody of Merchandise, Item 2. These files are periodically updated 
and removed to an inactive file, as necessary.
     Cartmen and lightermen files are reviewed annually at 
which time cancelled identification cards are removed. Closed CBP Form 
3078s (Application for Identification Card) may also be removed, but 
normally are held for approximately three years incase a new 
application is received from the same company or transferred to another 
company after investigation.
     Container station operator files are disposed of in 
accordance with the CBP Records Control Manual, Schedule 6, Custody of 
Merchandise Records, Item 10.
     Records on warehouse proprietor and vessel agent employees 
are maintained by the organization for the duration of the individual's 
employment and retained by CBP for six years after the death of the 
licensee or revocation in accordance with the CBP, Records Control 
Manual, Schedule 6, Custody of Merchandise, Item 2.
     Records on drivers are maintained in an active file until 
revoked or cancelled. After revocation or cancellation, the information 
folder is placed in an inactive file for five years, and then disposed 
of in accordance with the General Services Administration Disposal 
Manual.
     Information on proprietor bonded warehouse operators and 
employees is retained on file until Customs bonded operations cease and 
are discontinued, and then maintained in an inactive file for three 
years. Final disposition is in accordance with the General Services 
Administration Disposal Manual.
     Files on brokers, carriers, and sureties are maintained 
for six years after death of licensee or revocation in accordance with 
the CBP Records Control Manual. In accordance with the Records Control 
Manual, Schedule 9 Entry Processing, files on importers are maintained 
in connection with the respective entry of merchandise for eight years 
after liquidation of the entry, which is the final determination of 
classification and duty relating to the imported merchandise by CBP.

System Manager and address:
    Executive Director, Commercial Targeting and Enforcement, Office of 
International Trade, U.S. Customs and Border Protection, Customs and 
Border Protection Headquarters, 1300 Pennsylvania Avenue, NW., Mint 
Annex, Washington, DC 20229.

Notification procedure:
    The Secretary of Homeland Security has exempted this system from 
certain aspects of the notification, access, and amendment requirements 
of the Privacy Act. CBP will review each request to determine whether 
or not notification, access, or amendment should be provided. 
Individuals seeking notification of and access to any record contained 
in this system of records, or seeking to contest its content, may 
submit a request in writing to CBP's FOIA Officer, 1300 Pennsylvania 
Avenue, NW., Mint Annex, Washington, DC 20229.
    When seeking records about yourself from this system of records or 
any other CBP system of records your request must conform with the 
Privacy Act regulations set forth in 6 CFR part 5. You must first 
verify your identity, meaning that you must provide your full name, 
current address and date and place of birth. You must sign your 
request, and your signature must either be notarized or submitted under 
28 U.S.C. 1746, a law that permits statements to be made under penalty 
of perjury as a substitute for notarization. While no specific form is 
required, you may obtain forms for this purpose from the Director, 
Disclosure and FOIA, https://www.dhs.gov or 1-866-431-0486. In addition 
you should provide the following:
     An explanation of why you believe the Department would 
have information on you,
     Specify when you believe the records would have been 
created,
     If your request is seeking records pertaining to another 
living individual, you must include a statement from that individual 
certifying his/her agreement for you to access his/her records.
    Without this bulleted information CBP may not be able to conduct an 
effective search, and your request may be denied due to lack of 
specificity or lack of compliance with applicable regulations.

Record access procedures:
    See ``Notification procedure'' above.

Contesting record procedures:
    See ``Notification procedure'' above.

Record source categories:
    Records are obtained by authorized Customs forms or electronic 
formats from individuals and/or companies incidental to the conduct of 
foreign trade and required by the Customs Service in administering the 
tariff laws and regulations of the United States. Individuals; 
organizations; DHS/CBP; correspondence; investigation reports

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and supporting materials; applications for bonds and licenses, and 
other DHS/CBP memoranda.

Exemptions claimed for the system:
    The Secretary of Homeland Security has exempted this system 
pursuant to exemption 5 U.S.C. 552a(j)(2) of the Privacy Act, portions 
of this system are exempt from 5 U.S.C. 552a(c)(3) and (4); (d); 
(e)(1), (e)(2), (e)(3), (e)(4)(G), (e)(4)(H), (e)(4)(I), (e)(5) and 
(e)(8); (f), and (g). Additionally, the Secretary has exempted this 
system pursuant to 5 U.S.C. 552a(k)(2) of the Privacy Act from 
subsections (c)(3), (d), (e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(I), and 
(f).

    Dated: December 10, 2008.
Hugo Teufel III,
Chief Privacy Officer, Department of Homeland Security.
[FR Doc. E8-29799 Filed 12-18-08; 8:45 am]
BILLING CODE 4410-10-P