Post-Summary Corrections to Entry Summaries Filed in ACE Pursuant to the ESAR IV Test, 37136-37139 [2011-15834]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• U.S. Customs and Border Protection

[Federal Register Volume 76, Number 122 (Friday, June 24, 2011)]
[Notices]
[Pages 37136-37139]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-15834]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Post-Summary Corrections to Entry Summaries Filed in ACE Pursuant 
to the ESAR IV Test

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: This document announces U.S. Custom and Border Protection's 
(CBP's) plan to conduct a National Customs Automation Program test 
concerning new Automated Commercial Environment (ACE) Entry Summary, 
Accounts and Revenue (ESAR IV) capabilities. Specifically, importers 
will be allowed to use the Automated Broker Interface (ABI) to file 
post-summary corrections (PSCs) of certain pre-liquidation ACE entry 
summaries. As the PSC procedure replaces the existing Post-Entry 
Amendment (PEA) hard copy process for entry summaries filed under ACE, 
PEA procedures will no longer be accepted for entry summaries filed in 
ACE effective September 22, 2011. This notice also describes ESAR IV 
Portal enhancements and announces test particulars including 
commencement date, eligibility, procedural and documentation 
requirements, and test development and evaluation methods.

DATES: The ESAR IV test will commence July 25, 2011, and will continue 
until concluded by way of announcement in the Federal Register. 
Effective September 22, 2011, PEA procedures will no longer be accepted 
for entry summaries filed in ACE. Comments

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concerning this notice and any aspect of the test may be submitted at 
any time during the test period to the address set forth below.

ADDRESSES: Comments concerning this notice should be submitted via e-
mail to Monica Crockett at ESARinfoinbox@dhs.gov. Please indicate 
``ESAR IV (Post Summary Corrections Processing)'' in the subject line 
of your e-mail.

FOR FURTHER INFORMATION CONTACT: For policy-related questions, contact 
Cynthia Whittenburg at cynthia.whittenburg@dhs.gov. For technical 
questions related to ABI transmissions, contact your assigned client 
representative. Interested parties without an assigned client 
representative should direct their questions to the Client 
Representative Branch at (703) 650-3500.

SUPPLEMENTARY INFORMATION:

Background

I. Automated Commercial Environment (ACE) Test Programs

    Automated Commercial Environment (ACE) prototypes are tested in 
accordance with Sec.  101.9(b) of title 19 of the Code of Federal 
Regulations (19 CFR 101.9(b)), which provides for the testing of 
National Customs Automation Program (NCAP) components. A chronological 
listing of Federal Register publications detailing ACE test 
developments is set forth below in section VII of this document. The 
procedures and criteria related to participation in the prior ACE tests 
remain in effect unless otherwise explicitly changed by this or 
subsequent notices published in the Federal Register.

II. ACE Entry Summary, Accounts and Revenue (ESAR IV) Capabilities 
Relating to the Automated Broker Interface (ABI) Processing of Post-
Summary Corrections (PSCs) for ACE Entry Summaries

A. In General
    This notice announces CBP's plan to conduct a test concerning new 
ACE Entry Summary, Accounts and Revenue (ESAR IV) functionalities that 
permit importers to file post-summary corrections (PSCs) of certain ACE 
entry summaries using the Automated Broker Interface (ABI). Under ESAR 
IV, importers will be allowed to use ABI to file PSCs to those pre-
liquidation ACE entry summaries that have been accepted by CBP and are 
fully paid and under CBP control.
    A PSC/ABI transaction contains all of the data elements in the 
original entry summary and constitutes a complete replacement of that 
entry summary, as well as a replacement of any prior PSCs that may have 
been made to the original entry summary.
    CBP requests that participants not use submissions made under this 
test as a means of submitting a prior disclosure under 19 U.S.C. 1592. 
If a participant wishes to file a prior disclosure for an entry summary 
corrected under this test, the rules and procedures set forth in 19 CFR 
162.74 should be followed. For more information on prior disclosures 
see CBP's Informed Compliance Publication entitled ``The ABC's of Prior 
Disclosure,'' available on https://www.cbp.gov/xp/cgov/trade/legal/informed_compliance_pubs/.
B. Portal Capability
    ACE Portal Account owners who have the ability to select ``portal'' 
as their mode of communication will now be able to respond to CBP Forms 
28, 29 and 4647 via the ACE Portal for both ACS and ACE entry 
summaries. ACE Portal Reports will be enhanced to include improvements 
to the current list of entry summary data elements. The enhanced entry 
summary list will be easier to use and will provide additional 
flexibility when the user is creating and modifying entry summary 
reports. PSC data elements will also be available for further 
customization of existing entry summary reports. Additional PSC data 
elements include a PSC indicator, PSC filer, PSC reason codes at both 
the header and the line level, and an accelerated liquidation request 
indicator.
C. Electronic Data Interface (EDI) Capability
    Trade participants will be able to submit a PSC for existing ACE 
formal (type 01) entries and Antidumping/Countervailing (type 03) 
entries. Informal entries (type 11) are not eligible for PSC. An 
authorized ACE entry summary filer may submit a PSC for an ACE entry 
summary originally submitted by another ACE entry summary filer if 
authorized by the same importer of record.
    As noted above, a PSC transaction contains all of the data elements 
in the original entry summary. It is a complete replacement of the 
entry summary originally filed with CBP (including any previously filed 
PSCs) and will be processed through all existing validations including 
Census warnings. Accordingly, the act of filing a PSC will constitute 
``customs business'' as defined in 19 CFR 111.1.
D. Criteria and Rules for Filing a Post-Summary Correction (PSC)
    To file a PSC on an existing ACE entry type 01 or 03, the original 
entry summary or previously filed PSC must satisfy the following 
requirements:
     The entry summary or previously filed PSC cannot be 
liquidated.
     The entry summary must be fully paid or revenue free.
     When a PSC results in a type 01 entry being changed/
corrected to indicate it is a type 03 entry, or if a PSC for a change/
correction to a type 03 entry results in additional AD/CVD duties due, 
the importer of record must deposit the associated AD/CVD duties (or 
bond, if allowed) at the same time the PSC is filed. The failure to 
make the deposit (or bond, if allowed) may result in a claim for 
liquidated damages.
     The entry summary or previously filed PSC must be in 
``accepted'' status. ``Accepted'' status is defined as an entry summary 
or previously filed PSC that has passed through all technical edits and 
validations.
     The entry summary or previously filed PSC must be in ``CBP 
control,'' accepted and fully paid, and not in ``trade control.'' The 
entry summary or previously filed PSC is in ``trade control'' when it 
is successfully accepted in the system and not on a statement. The 
entry summary or previously filed PSC is in ``CBP control'' when it is 
placed on a statement.
     The PSC filing must be transmitted within 270 days of the 
date of entry.
     The entry summary or previously filed PSC cannot be filed 
within 20 calendar days of the scheduled liquidation date.
     The entry summary or previously filed PSC cannot be under 
CBP review. The filer will receive a message indicating ``PSC not 
allowed under CBP Review'' if a PSC is submitted where the entry 
summary or previously filed PSC is in CBP review.
     An entry summary or previously filed PSC that has been 
flagged for reconciliation may only be corrected by a PSC that does not 
affect the flagged issue.
     A text explanation and at least one reason code (both to 
be submitted electronically with the PSC entry summary) are required 
for each PSC submission.
     There are no limitations to the number of PSCs that can be 
submitted for any one entry so long as the PSC is not within the 
disallowed timeframe and all other requirements are met.

[[Page 37138]]

E. Data Elements That Cannot Be Changed Via Post Summary Correction 
(PSC)
    Certain data elements cannot be changed using PSC procedures and 
CBP will reject any PSC submission containing prohibited data elements. 
The following is a list of data elements that cannot be changed via 
PSC:
     A type 03 entry cannot be changed to a type 01 entry.
     Importer of record.
     Consolidated summary indicator.
     District/port of entry.
     Cargo release certification request indicator (this 
includes Department of Transportation (DOT) grouping; Food and Drug 
Administration (FDA) grouping; and Participating Government Agency 
(PGA) grouping).
     Live entry indicator.
     NAFTA indicator.
     Reconciliation issue code.
     Preliminary statement print date.
     Periodic statement month.
     Statement client branch identifier.
     Location of goods code.
     Any release detail (release entry filer code, release 
entry number).
    Where applicable, a test participant may file a prior disclosure to 
reflect a change to these data elements pursuant to 19 CFR 162.74.
F. Liquidation Notices
    For non-type 03 entries, when a filer changes the entry summary 
data via PSC, and CBP makes no further changes to that data, the entry 
will liquidate ``no change'' as entered. A status of ``no change'' on 
the bulletin notice of liquidation will signify that CBP did not change 
the data submitted on the last accepted PSC. A type 03 entry will not 
be liquidated until the Department of Commerce issues liquidation 
instructions to CBP covering that entry.
G. ACE ABI CATAIR
    To reflect the new ESAR IV capabilities, CBP has revised the 
following ACE ABI CATAIR chapters:
     Entry Summary Create/Update
     Entry Summary Query
     Entry Summary Status Notification
     Appendix G--ACE Condition Codes and Narrative Text
    Documentation specifying the details of electronic submissions of 
PSCs may be found in the ACE ABI CATAIR on the CBP Web site located at 
https://www.cbp.gov/xp/cgov/trade/automated/modernization/ace_edi_messages/catair_main/abi_catair. Operational documentation addressing 
PSC may be found in the ACE Entry Summary ``Business Rules and Process 
Document'' located at https://www.cbp.gov/linkhandler/cgov/trade/trade_programs/entry_summary/ace/ace_es_business.ctt/ace_es_business.pdf. Both the CATAIR and the ``Business Rules and Process 
Document'' will continue to be updated to reflect future deployments of 
ACE functionality.
H. Access by Filers to Entry and Post Summary Correction (PSC) Data
    Entry summary data is confidential commercial information. With 
regard to visibility to the information, the full content of the 
original entry summary will be provided only to the filer of that entry 
summary. As stated above, once a PSC is filed it fully replaces the 
original entry summary. Accordingly, full information with respect to 
the PSC is only available to the filer of the PSC. The filer of the 
original entry summary will be notified that the entry summary has been 
fully replaced by a PSC, but will not have visibility to the new 
filing. Similarly, if a subsequent PSC is filed, it fully replaces the 
previously filed PSC (which had fully replaced the original entry 
summary) and full information is visible only to the filer of the 
subsequent PSC. The filer of the original entry summary or the filer of 
the previously filed PSC will be notified that a new replacement entry 
summary has been filed by a PSC, but will not have visibility to the 
new filing. For example, if filer A files the original entry summary 
and then filer B submits a PSC, filer A will receive notification that 
a PSC has been filed. If filer A then submits a subsequent PSC, filer B 
will receive notification of the PSC filing but filer A will not have 
visibility to what filer B submitted. Conversely, filer B will not have 
visibility to what filer A submitted. Only the filer of the latest PSC 
will be able to get the latest full entry summary replacement data in 
response to a query.
    As the information in the entry summary, including any PSC, is the 
property of the importer, full access to the original entry summary and 
all PSCs may be provided by the importer of record to filers through 
normal business communication channels. In the alternative, if the 
importer of record has a portal account, the importer of record may 
elect to grant user access to his portal account.
    In situations where an earlier filer does not have access to 
information provided by a subsequent PSC filer, CBP notes that each 
entry filer and PSC filer is individually responsible and accountable 
for the accuracy, completeness, and content of the information 
contained in their separate submissions. Each filer has recordkeeping 
obligations for the records on which their filing is based; therefore 
entry filers and PSC filers are not responsible or accountable for any 
submission not made by them and they do not incur recordkeeping 
obligations related to such submissions.
I. Post-Entry Amendments (PEAs) To Be Phased Out for Entry Summaries 
Filed in ACE
    The Post-Entry Amendment (PEA) test allows importers to amend entry 
summaries (excluding informal entries) prior to liquidation by filing 
with CBP either an individual amendment letter upon discovery of an 
error or a quarterly tracking report covering any errors that occurred 
during the quarter. General guidelines and other applicable criteria 
for filing post-entry amendments were published in the following series 
of Federal Register notices: 65 FR 70872 (November 8, 2000); 67 FR 768 
(January 7, 2002); 68 FR 8329 (February 20, 2003); 69 FR 5860 (February 
6, 2004); and 72 FR 46654 (August 21, 2007).
    This notice announces that, for purposes of ESAR IV, a PSC 
transaction will replace the existing Post-Entry Amendment (PEA) 
hardcopy process for entry summaries filed under ACE. For this reason, 
effective September 22, 2011, PEA procedures will no longer be accepted 
for entry summaries filed in ACE. Prior to this date, test participants 
may file either a PSC or a PEA to correct an entry summary filed in 
ACE. It is noted, however, that a filer should not use both methods to 
correct the same data element in the same entry summary. A related 
notice announcing this change to the PEA test is published in this 
edition of the Federal Register.

III. Confidentiality

    All data submitted and entered into the ACE Portal is subject to 
the Trade Secrets Act (18 U.S.C. 1905) and is considered confidential, 
except to the extent as otherwise provided by law (see 19 U.S.C. 
1431(c)). As stated in previous notices, participation in this or any 
of the previous ACE tests is not confidential and upon a written 
Freedom of Information Act request, a name(s) of an approved 
participant(s) will be disclosed by CBP in accordance with 5 U.S.C. 
552. If necessary, CBP will reserve the right to limit the number of 
participants and locations during the initial stages of the test.

IV. Waiver of Affected Regulations

    Any provision in 19 CFR including, but not limited to, provisions 
found in parts 141, 142, 143 and 151 thereof relating to entry/entry 
summary processing that are inconsistent with the

[[Page 37139]]

requirements set forth in this notice are waived for the duration of 
the test. See 19 CFR 101.9(a). Additionally, any previous practice 
pertaining to party definitions, including but not limited to 
``ultimate consignee,'' that are inconsistent with the requirements set 
forth in this notice are waived for the duration of the test. The 
CATAIR should be consulted for appropriate terms and definitions for 
purposes of this test.

V. Misconduct Under the Test

    An ACE 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:
     Failure to follow the terms and conditions of this test.
     Failure to exercise reasonable care in the execution of 
participant obligations.
     Failure to abide by applicable laws and regulations.
     Failure to timely deposit duties or fees, including any 
applicable AD/CVD cash deposits (or bond, if allowed).
     Misuse of the ACE Portal.
     Engagement in any unauthorized disclosure or access to the 
ACE Portal.
     Engagement in any activity that with the successful 
evaluation of the new technology.
    Suspensions for misconduct will be administered by the Executive 
Director, Commercial Targeting and Enforcement, Office of International 
Trade, CBP Headquarters. A written notice proposing suspension will be 
issued to the participant that apprises the participant of the facts or 
conduct warranting suspension and informs the participant of the date 
the suspension will begin. Any decision proposing suspension of a 
participant may be appealed in writing to the Assistant Commissioner, 
Office of International Trade within 15 calendar days of the 
notification date. An appeal of a decision of proposed suspension must 
address the facts or conduct charges contained in the notice and state 
how compliance will be achieved. In cases of non-payment, late payment, 
willful misconduct or where public health interests or safety is 
concerned, a suspension may be effective immediately.

VI. 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, implementation and conduct 
of the test at any time during the test period. CBP will publish the 
final results in the Federal Register and the Customs Bulletin as 
required by 19 CFR 101.9(b). 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 (staff, interest, reduction in mailing costs, 
etc.).
     Policy and procedure accommodation.
     Trade compliance impact.
     Problem resolution.
     System efficiency.
     Operational efficiency.
     Other issues identified by the participant group.

VII. Development of ACE Prototypes

    A chronological listing of Federal Register publications detailing 
ACE test developments is set forth below.
     ACE Portal Accounts and Subsequent Revision Notices: 67 FR 
21800 (May 1, 2002); 70 FR 5199 (February 1, 2005); 69 FR 5360 and 69 
FR 5362 (February 4, 2004); 69 FR 54302 (September 8, 2004).
     ACE System of Records Notice: 71 FR 3109 (January 19, 
2006).
     Terms/Conditions for Access to the ACE Portal and 
Subsequent Revisions: 72 FR 27632 (May 16, 2007); 73 FR 38464 (July 7, 
2008).
     ACE Non-Portal Accounts and Related Notice: 70 FR 61466 
(October 24, 2005); 71 FR 15756 (March 29, 2006).
     ACE Entry Summary, Accounts and Revenue (ESAR I) 
Capabilities: 72 FR 59105 (October 18, 2007).
     ACE Entry, Summary, Accounts and Revenue (ESAR II) 
Capabilities: 73 FR 50337 (August 26, 2008); 74 FR 9826 (March 6, 
2009).
     ACE Entry, Summary, Accounts and Revenue (ESAR III) 
Capabilities: 74 FR 69129 (December 30, 2009).

    Dated: May 23, 2011.
Allen Gina,
Assistant Commissioner, Office of International Trade.
[FR Doc. 2011-15834 Filed 6-23-11; 8:45 am]
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