Announcement of eBond Test, 70881-70886 [2014-28146]
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Federal Register / Vol. 79, No. 229 / Friday, November 28, 2014 / Notices
This notice is being published less than 15
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(Catalogue of Federal Domestic Assistance
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Dated: November 21, 2014.
Anna Snouffer,
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[FR Doc. 2014–28073 Filed 11–26–14; 8:45 am]
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DEPARTMENT OF HOMELAND
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Federal Emergency Management
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[FR Doc. 2014–28129 Filed 11–26–14; 8:45 am]
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70881
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
Announcement of eBond Test
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: General notice.
AGENCY:
This notice announces U.S.
Customs and Border Protection’s (CBP’s)
plan to conduct a voluntary National
Customs Automation Program test
concerning automation of CBP’s bond
program (eBond test). The eBond test
utilizes an automated system (eBond
system) that provides for the
transmission of electronic bond
contracts (eBonds) between principals
and sureties, with CBP as third-party
beneficiary, in the Automated
Commercial Environment (ACE) for the
purpose of linking those eBonds to the
transactions they are intended to secure.
All eBonds transmitted pursuant to this
test must be transmitted to ACE
electronically, either via the CBPapproved Electronic Data Interchange
(EDI) or emailed to CBP for manual
input into ACE. The transmission of
eBonds to CBP must be made by a
surety or surety agent. The eBond
system works with ACE to ensure that
transactions secured by an eBond have
the proper bond coverage to protect the
revenue and secure legal compliance.
The eBond system is intended to
establish a single repository for the
centralization of all eBonds within the
Office of Administration’s Revenue
Division, to harmonize and enhance
CBP’s bond processes, and to eliminate
flaws in the execution of customs
bonds, which may lead to increased
legal risk for CBP. It is anticipated that
the eBond test will reduce paper
processing, expedite cargo release, allow
for bonds to be transmitted beyond
regular CBP business hours, and
enhance traceability for audit purposes.
The eBond test is intended to evaluate
the automation of CBP’s bond program,
its impact on trade, and CBP’s ability to
enforce applicable laws and protect the
revenue. This notice invites public
comment concerning any aspect of the
test, describes the eligibility, procedural
and documentation requirements for
voluntary participation in the test, and
outlines the development and
evaluation methodology to be used in
the test.
DATES: The eBond test will commence
on January 3, 2015, and will run for
approximately two years, subject to any
extension, modification, or early
SUMMARY:
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termination as announced by way of
notice in the Federal Register. CBP’s
evaluation of the test will be ongoing
during the test period. Requests to
participate and comments on any aspect
of the test may be submitted to CBP for
the duration of the test. CBP will notify
an interested surety via email of its test
participation status upon receipt and
review of the surety’s eBond test
participation request.
ADDRESSES: Comments and/or questions
concerning this notice or any aspect of
the test may be submitted to CBP via
email to eBondTest@cbp.dhs.gov, with
the subject line identifier reading
‘‘Comment/Questions on eBond test.’’
Requests for a surety filer code, and
surety requests to participate in the
eBond test should be sent to
Conrad.l.henry@cbp.dhs.gov, with a
subject line identifier specifying either
‘‘Surety filer code request’’ or ‘‘Surety
request to participate in eBond test.’’
eBonds transmitted to CBP for manual
input into ACE by the Office of
Administration’s Revenue Division
should be sent to cbp.bondquestions@
dhs.gov, with the specific email header
information set forth in CBP’s ‘‘eBond
Policies and Procedures’’ Web page
located at https://www.cbp.gov/trade/
trade-community/programsadministration/bonds/ebond.
FOR FURTHER INFORMATION CONTACT: For
policy related questions, contact Kara
Welty, Chief, Debt Management Branch,
Revenue Division, Office of
Administration, at kara.welty@dhs.gov.
For technical questions, contact John
Everett, Entry Summary, Accounts, and
Revenue Branch, ACE Business Office,
Office of International Trade, at
john.everett@dhs.gov.
SUPPLEMENTARY INFORMATION:
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Background
National Customs Automation Program:
Electronic Bonds as Planned
Component
Title VI of the North American Free
Trade Agreement Implementation Act
(the Act), Public Law 103–182, 107 Stat.
2057 (Dec. 8, 1993), contains provisions
pertaining to Customs Modernization
(107 Stat. 2170). Subtitle B of title VI
establishes the National Customs
Automation Program (NCAP), an
automated and electronic system for the
processing of commercial importations.
Section 631 in Subtitle B of the Act
creates section 411 through 414 of the
Tariff Act of 1930 (19 U.S.C. 1411–
1414). These sections define and list the
existing and planned components of the
NCAP (section 411), promulgate
program goals (section 412), provide for
the implementation and evaluation of
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the program (section 413), and provide
for Remote Location Filing (section
414). Section 411(a)(2)(D) lists the
electronic filing of bonds as a planned
NCAP component.
A primary objective of the NCAP is
customs modernization through trade
compliance and the development of the
Automated Commercial Environment
(ACE), the planned successor to the
Automated Commercial System (ACS).
ACE is an automated and electronic
system for commercial trade processing,
which is intended to streamline
business processes, facilitate growth in
trade, ensure cargo security, and foster
participation in global commerce, while
ensuring compliance with U.S. laws and
regulations and reducing costs for CBP
and stakeholders. The ability to meet
these objectives depends on
successfully modernizing CBP’s
business functions and the information
technology that supports those
functions.
Development of the Electronic Bond
Concept
CBP’s bond program has been the
subject of several evaluations, including
a CBP-commissioned 2003 independent
report that examined the efficacy of the
agency’s continuous bond program. See
‘‘Grant Thornton Review of Customs
Continuous Transaction (Entry) Bonds’’
dated April 3, 2003. That report
recommended that CBP centralize its
continuous bond program to increase
efficiency and uniformity. In 2011, the
Department of Homeland Security’s
Office of the Inspector General
conducted an audit of CBP’s single
transaction bond (STB) program, and
found deficiencies in bond retention,
accuracy and completion, valuation, as
well as problems with cargo being
released prior to execution of bonds. See
‘‘Efficacy of Customs and Border
Protection’s Bonding Process,’’ OIG 11–
92, dated June 27, 2011, available for
viewing at https://www.oig.dhs.gov/
assets/Mgmt/OIG_11-92_Jun11.pdf. The
OIG recommended centralization and
automation of the STB program and this
objective was adopted as a CBP mission
priority.
A Notice of Proposed Rulemaking
(NPRM) entitled ‘‘Customs and Border
Protection’s Bond Program’’ was
published in the Federal Register (75
FR 266) on January 5, 2010. The
document proposed amendments to the
CBP regulations in title 19 of the Code
of Federal Regulations (CFR) to
modernize CBP’s bond program by
centralizing the filing, review and
approval of continuous bonds at CBP’s
Revenue Division (RD) within the Office
of Administration in Indianapolis, and
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by removing or amending certain bond
requirements. It is anticipated that a
final rule adopting the proposed
amendments that pertain to
centralization of the continuous bond
program at the RD and permitting the
electronic transmission of both
continuous bonds and STBs to CBP via
the Electronic Data Interchange (EDI)
will be published in the Federal
Register in the near future.
In preparation for the development
and deployment of an automated bond
program, CBP engaged in regular
outreach with stakeholders, including
sureties, surety agents, customs brokers,
trade groups and other government
agencies with a view to obtaining
meaningful feedback on existing
systems and operations in order to build
a mutually beneficial automated bond
system. In early 2014, CBP began
building the eBond system. CBP
developed the eBond system with
ongoing feedback from the trade and
subject matter experts. The eBond
system serves to harmonize and
enhance CBP bond processes pertaining
to transmission, validation,
maintenance, retention, and periodic
review of all customs bonds, and
establishes a single electronic repository
for the centralization of those bonds
within the RD. The eBond system
benefits both CBP and the trade by
reducing paper processing, expediting
cargo release, expanding bond
transmission capabilities beyond regular
CBP business hours, and enhancing
traceability for audit purposes.
In June 2014, CBP released a Customs
and Trade Automated Interface
Requirements (CATAIR) document
providing updated conventional trade
interface information for the future
deployment of electronic bond data
functionality in ACE. The CATAIR
update provides input and output EDI
record formation for the electronic
transmission of bonds to CBP. The
document presents both the bond input
transaction proprietary records used by
sureties and surety agents to file and
maintain an eBond as well as the output
transaction proprietary records returned
in response. The input record layouts
describe the data elements required by
the automated EDI interface. The output
record layouts describe a response to
filing as generated and returned by the
automated EDI interface. CBP has
posted these technical specifications on
the CBP Web site at the following link:
https://www.cbp.gov/document/
guidance/customs-ebond-createupdatecatair-chapter.
As additional functionality is released
in ACE, CBP will continue to integrate
these new capabilities with eBonds and
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their associated transactions. Any
updates to the technical formats will be
posted at the above link. The trade
community is encouraged to subscribe
to the Cargo Systems Messaging Service
(CSMS) at https://apps.cbp.gov/csms/
csms.asp?display_page=1 to receive
timely notifications on ACE as well as
to receive any future changes or updates
to these technical specifications.
Description of the eBond Test
Pursuant to 19 U.S.C. 1623(b), bonds
may be transmitted electronically to
CBP pursuant to an authorized EDI
system. As stated in 19 U.S.C. 1623(d),
any bond transmitted to CBP through an
authorized EDI system shall have the
same force and effect and be binding
upon the parties (e.g., the principal(s)
and surety(ies)) as if the bond were
manually executed, signed, and filed.
CBP’s eBond system is an automated
environment that provides for the
transmission of electronic bond
contracts (eBonds) between principals
and sureties, with CBP as third-party
beneficiary, in ACE through an
authorized EDI system for the purpose
of linking those eBonds to the
transactions they are intended to secure.
CBP’s eBond system is available for all
bond requirements set out in Chapter 1
of title 19 of the CFR, including but not
limited to bonds under 19 CFR 141.20
and 19 CFR 142.4, with the exceptions
noted below.
This notice announces CBP’s plan to
conduct a voluntary NCAP test of the
eBond system. The test is intended to
evaluate CBP’s eBond system, its impact
on trade, and CBP’s ability to enforce
applicable laws and protect the revenue.
The eBond test will commence on
January 3, 2015, and will run for
approximately two years, subject to any
extension or early termination as
announced by way of notice in the
Federal Register.
For purposes of the eBond test, the
following definitions, conditions and
criteria apply:
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Definitions
Method and Content of eBond and
eBond Rider Transmission
The transmission of all eBonds and
eBond riders in ACE for purposes of this
eBond test must be made by a surety or
surety agent pursuant to one of the two
methods described below.
(1) EDI: eBonds and eBond riders may
be transmitted in ACE electronically via
EDI, and must contain the required data
elements set forth in the CATAIR which
comprise a reduced subset of the OMBapproved information collected on the
CBP Form 301. The complete list of data
elements for purposes of the eBond test
can be found in the ACE ABI CATAIR—
Customs eBond Create/Update Chapter
at https://www.cbp.gov/trade/ace/catair.
EDI is only available for the
transmission of single transaction
eBonds with the following Activity
Codes:
SINGLE TRANSACTION BONDS
Activity
code
Activity name
1 ...........
1A .........
3 ...........
6 ...........
7 ...........
8 ...........
10 .........
Importer or Broker.
Drawback Payments Refunds.
International Carrier.
Wool & Fur Products.
Bill of Lading.
Detention of Copyrighted Material.
Court Costs for Condemned
Goods.
Importer Security Filing (ISF).
16 .........
• eBond. The term ‘‘eBond’’ means an
electronic bond contract between principal(s)
and surety(ies), with CBP as third-party
beneficiary, that is comprised of data
elements required by the eBond system and
that is transmitted by a surety or surety agent
to CBP under the eBond test. Pursuant to 19
U.S.C. 1623(d), an eBond has the same force
and effect and is binding upon the
principal(s) and surety(ies) thereto as if such
eBond had been manually executed, signed,
and filed in full compliance with 19 CFR part
113.
• eBond system. The term ‘‘eBond system’’
means CBP’s automated system for the
transmission of eBonds in ACE for the
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purpose of linking those eBonds to the
transactions they are intended to secure.
• eSTB. The term ‘‘eSTB’’ means a single
transaction eBond.
• eBond rider. The term ‘‘eBond rider’’
means an electronic bond rider between
principal(s) and surety(ies), with CBP as
third-party beneficiary, that is comprised of
data elements required by the eBond system
and that is transmitted by a surety or surety
agent to CBP under the eBond test. An eBond
rider modifies an eBond in the same way that
a bond rider modifies a customs bond.
Pursuant to 19 U.S.C. 1623(d), an eBond rider
has the same force and effect and is binding
upon the principal(s) and surety(ies) thereto
as if such eBond rider had been manually
executed, signed, and filed in full
compliance with 19 CFR part 113.
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EDI is only available for the
transmission of continuous eBonds and
continuous eBond riders with the
following Activity Codes:
CONTINUOUS BONDS
Activity
code
Activity name
1 ...........
1A .........
2 ...........
3 ...........
3A .........
Importer or Broker.
Drawback Payments Refunds.
Custodian of Bonded Merchandise.
International Carrier.
Instruments of International Traffic.
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CONTINUOUS BONDS—Continued
Activity
code
3A3 .......
4 ...........
5 ...........
11 .........
16 .........
Activity name
Carrier of International Traffic.
Foreign Trade Zone Operator.
Public Gauger.
Airport Security Bond.
Importer Security Filing (ISF).
(2) Email: eBonds and eBond riders
may be emailed to CBP at
cbp.bondquestions@dhs.gov for manual
input into ACE by the RD. eBonds
transmitted via email must be on a CBP
Form 301 signed by the principal(s) and
surety(ies). eSTBs must include
direction to CBP as to how the eSTB is
to be used and the entry type the eSTB
will secure. Email transmission is
available for eBonds and eBond riders
with any Activity Code. eBonds and
eBond riders transmitted by this method
are subject to policies and procedures
issued by the Office of Administration
for the manual input of eBonds and
eBond riders.
Terms and Conditions for eBonds
As stated in 19 U.S.C. 1623(d), any
bond transmitted to CBP through an
authorized EDI system shall have the
same force and effect and be binding
upon the parties (e.g., the principal(s)
and surety(ies)) as if the bond were
manually executed, signed, and filed.
In order to secure payment of any
duty, tax or charge and compliance with
law or regulation as a result of activity
covered by any condition identified in
an eBond, the principal(s) and
surety(ies) identified on the eBond bind
themselves (jointly and severally) to the
United States in the amount or amounts
set forth in the eBond.
A continuous eBond remains in force
for one year beginning with the effective
date and for each succeeding annual
period, or until terminated. This
continuous eBond constitutes a separate
bond for each annual period in the
amount(s) listed on the eBond for
liabilities that accrue in each annual
period. The intention to terminate this
continuous eBond must be conveyed
within the annual period and in the
manner prescribed in this test notice.
The principal(s) and surety(ies) agree
that any charge against the eBond under
any of the listed names is as though it
was made by the principal(s). The
principal(s) and surety(ies) agree that
they are bound to the same extent as if
they executed a separate eBond covering
each set of conditions incorporated by
reference to the CBP regulations into
this eBond. If the surety(ies) fails to
appoint an agent under Title 31, United
States Code, Section 9306, the
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surety(ies) consents to service on the
Clerk of any United States District Court
or the U.S. Court of International Trade,
where suit is brought on this bond.
Additional terms and conditions for
each eBond are identified by the
Activity Code for the eBond selected by
the transmitting surety/surety agent.
The additional terms and conditions for
each Activity Code mirror the
correlating terms and conditions found
on the CBP Form 301. Selection of an
Activity Code constitutes the agreement
of the surety(ies) and principal(s) to be
bound by the terms and conditions in
the corresponding regulation:
CBP Regulations in
which conditions are
codified
Activity code
Activity name
1 ...................
1A ................
2 ...................
3 ...................
3A ................
3A3 ..............
4 ...................
5 ...................
6 ...................
7 ...................
8 ...................
9 ...................
10 .................
11 .................
16 .................
Importer or broker ......................................................................................................................................
Drawback Payments Refunds ...................................................................................................................
Custodian of Bonded Merchandise (continuous bond only) .....................................................................
International Carrier ...................................................................................................................................
Instruments of International Traffic; (continuous bond only) .....................................................................
Carrier of International Traffic ....................................................................................................................
Foreign Trade Zone; (continuous bond only) ............................................................................................
Public Gauger ............................................................................................................................................
Wool & Fur Products Labeling Acts Importation (single transaction only) ................................................
Bill of Lading (single transaction only) .......................................................................................................
Detention of Copyrighted Material (single transaction only) .....................................................................
Neutrality (single transaction only) ............................................................................................................
Court Costs for Condemned Goods (single transaction only) ..................................................................
Airport Security Bond .................................................................................................................................
Importer Security Filing (ISF) .....................................................................................................................
eBonds associated with the Activity
Codes listed below contain additional
unique terms and conditions; as such,
12
14
15
17
.................
.................
.................
.................
they can only be emailed to the RD. CBP
cannot accept eBonds associated with
113.62.
113.65.
113.63.
113.64.
113.66.
113.64, 113.66.
113.73.
113.67.
113.68.
113.69.
113.70.
113.71.
113.72.
Part 113 App A.
Part 113 App
these Activity Codes via EDI at this
time.
International Trade Commission (ITC) Exclusion Bond ............................................................................
In-Bond Export Consolidation Bond.
Intellectual Property Rights (IPR).
Marine Terminal Operator (continuous bond only).
Bond Requirements for Entry/Entry
Summary Filing
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
19 CFR
D.
19 CFR Part 113 App B.
the only parties able to transmit
required bond coverage (in the form of
eBonds) for the following entry/entry
summary scenarios:
Beginning on January 3, 2015,
participants in the eBond test will be
ACE entry
(simplified entry)
followed by ACE
entry summary
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Single Transaction
Bond.
Continuous Bond ...
ACE entry
summary certified
for ACE cargo
release
ACS entry
followed by ACE
entry summary
ACE entry
summary certified
for ACS cargo
release
ACS entry
followed by ACS
entry summary
YES .....................
YES .....................
NO .......................
NO .......................
NO .......................
NO.
YES .....................
YES .....................
YES .....................
YES .....................
YES .....................
YES.
For the scenarios in which the word
‘‘yes’’ appears, the entry/entry summary
must be matched (validated) to an
existing eBond that was previously
transmitted in ACE for the purpose of
securing that transaction. If an
appropriate eBond is not on file in ACE
for that transaction, the entry/entry
summary will be rejected. For the
scenarios in which the word ‘‘no’’
appears, CBP will not permit bond
coverage to be transmitted under the
eBond test and a CBP Form 301 subject
to 19 CFR part 113 will be required
instead. On November 1, 2015, CBP
expects to retire ACS for most electronic
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17:31 Nov 26, 2014
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entry/entry summary transactions, and
at that time, the eBond test is expected
to expand to all scenarios set forth in
the chart above.
Terms and Conditions for eBond Riders
The surety/surety agent transmitting
an eBond rider must identify the eBond
being amended and the type of eBond
rider selected, as well as other data
elements required by the eBond system.
The principal(s) and surety(ies) of the
identified eBond agree to be bound
(jointly and severally) by amendments
to the eBond corresponding to the type
of eBond rider the surety/surety agent
has selected. Except for the amendments
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ACS entry
summary certified
for cargo release
described below for the selected eBond
rider, the principal(s) and surety(ies)
agree that all other terms and conditions
of the identified eBond remain
unchanged.
(1) Addition eBond rider. The
principal(s) and surety(ies) agree that
the names transmitted with this eBond
rider are unincorporated units of the
identified principal or are trade or
business names used by the identified
principal in its business, that the
identified eBond covers its business,
and that the identified eBond covers any
act done in those names to the same
extent as though done in the name of
the identified principal. The principal(s)
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and surety(ies) agree that any such act
shall be considered to be the act of the
identified principal.
(2) Deletion eBond rider. The
principal(s) and surety(ies) agree that
the names transmitted with this eBond
rider of unincorporated units of the
identified principal or trade or business
names used by the identified principal
in its business are deleted from the
identified eBond effective upon the date
of approval of this eBond rider by the
appropriate CBP bond approval official.
(3) Reconciliation eBond rider. The
principal(s) and surety(ies) agree that
the identified eBond covers all
Reconciliations pursuant to 19 U.S.C.
1484(b) that are elected on any entries
secured by the identified eBond, and
that all conditions set out in 19 CFR
113.62 are applicable to the identified
eBond. See also, 63 FR 6257 (Feb. 6,
1998); 63 FR 44303 (Aug. 18, 1998); and
67 FR 61200 (Sept. 27, 2002). The
principal(s) and surety(ies) also agree
that, when an Aggregate Reconciliation
under this eBond rider lists entries
occurring in more than one bond period,
any liabilities to CBP reflected in that
Aggregate Reconciliation will be
attributable (up to the full available
bond amount) to any or all of those
bond periods.
(4) U.S. Virgin Islands eBond rider.
The principal(s) and surety(ies) agree
that the words ‘‘United States,’’
whenever used in the terms and
conditions of the identified eBond,
include the U.S. Virgin Islands.
eBond and eBond Rider Transmission as
Binding Representation to CBP of
Authority To Bind Both Surety and
Principal to eBond or eBond Rider
In accordance with 19 U.S.C. 1623(d),
and consistent with the Electronic
Signatures in Global and National
Commerce Act, 15 U.S.C. 7001 et seq.,
in place of signatures memorializing the
parties’ intent to be bound, the
principals and sureties who execute
eBonds under this test certify that the
surety’s/surety agent’s act of
transmitting an eBond or eBond rider to
CBP in ACE to secure a transaction
constitutes a binding representation to
CBP that:
(1) The transmitting surety/surety
agent has the authority to bind both the
surety(ies) and the principal(s)
identified in the eBond or eBond rider;
and
(2) Pursuant to the surety/surety
agent’s authority, both the surety(ies)
and the principal(s) intend to be bound
by the transmitted eBond or eBond
rider, under the terms and conditions
set forth in this notice. Furthermore, any
transaction that identifies or uses an
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16:58 Nov 26, 2014
Jkt 235001
eBond as security constitutes the reaffirmation of the principal responsible
for the transaction that it intends to be
bound by the terms and conditions of
the identified or used eBond.
Name and Address Change Bond Riders
Not Supported in eBond
For purposes of the eBond test, CBP
will not be collecting information
regarding the name and address of the
principal or surety on the eBond as this
data will be available to CBP via other
components of ACE. For this reason,
bond riders pertaining to a principal’s
name or address change (see 19 CFR
113.24(a)(1)(2)) are not supported in
ACE as this information is not
transmitted on the eBond.
Continuous Bonds Executed Prior to
eBond Test Will Be Accessible in eBond
System
Continuous bonds executed on CBP
Form 301 prior to the eBond test
deployment date of January 3, 2015, will
be accessible in the eBond system for
ease of CBP’s administration of all
continuous bonds. However, continuous
bonds executed on CBP Form 301 prior
to January 3, 2015, will not be subject
to the rules set forth in this notice but
will remain subject to the CBP bond
regulations in 19 CFR part 113.
Therefore, bond riders for these preJanuary 3, 2015 continuous bonds must
still be submitted to the RD in the
format and manner detailed in 19 CFR
part 113. Effective January 3, 2015, CBP
will no longer accept name/address
change bond riders for these pre-January
3, 2015 continuous bonds. The importer
identification number and surety
number will continue to be the primary
identification markers used by CBP
when verifying adequate bond coverage
for activities that require it. Principals
or sureties who wish to change the
name or address on a pre-January 3,
2015 continuous bond must terminate
the bond and provide a new bond
(depending on the entry/entry summary
scenario, this may be an eBond or a STB
on CBP Form 301).
Termination of an eBond
A surety may, with or without the
consent of the principal, electronically
terminate an eBond on which it is
obligated. The effective date of the
termination must be stated in the
electronic notice of termination and
must be at least 15 calendar days after
the date of the electronic notice of
termination. If an eBond is terminated,
no new customs transactions may be
charged against the eBond. The surety,
as well as the principal, remains liable
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Frm 00042
Fmt 4703
Sfmt 4703
70885
on a terminated eBond for obligations
incurred prior to termination.
eBond Status Updates
eBond status updates will be provided
electronically to the surety/surety agent
and any party identified on the eBond
as a ‘‘Secondary Notify Party’’.
Authorization for the eBond Test
CBP’s eBond test is authorized under
§ 101.9(b) of title 19 of the Code of
Federal Regulations (19 CFR 101.9(b)),
which provides for the testing of NCAP
programs or procedures.
eBond Test Participant Eligibility
Participation in the eBond test is
voluntary and may include surety(ies)/
surety agents as well as principals who
authorize a surety/surety agent to
transmit an eBond. In order for a surety/
surety agent to be eligible to participate
in eBond, the surety/surety agent must
obtain a filer code from CBP. A request
for a filer code should be submitted to
Conrad.l.henry@cbp.dhs.gov. Once the
filer code is issued by CBP, it will be
associated with the surety code which
will be maintained by CBP. Principals
and/or importers may participate in the
eBond test by contacting a participating
surety and obtaining an eBond.
eBond Test Selection Criteria
Participation in the eBond test is open
to all sureties/surety agents who have a
surety filer code and who have
requested permission to participate in
the test and received CBP approval, as
well as any principal who authorizes a
surety/surety agent to transmit an
eBond. A surety or surety agent
interested in voluntary participation in
the eBond test must submit an email
request to Conrad.l.henry@cbp.dhs.gov
with the subject line identifier ‘‘Request
to participate in eBond test.’’ CBP will
notify interested sureties of their test
participation status upon receipt of the
email requesting participation in the
test. A principal who authorizes a
surety/surety agent to transmit an eBond
during this test is considered an eBond
test participant and is bound by the
terms and conditions of this notice.
eBond Test Dates
The eBond test will commence on
January 3, 2015, and will run
approximately two years, subject to any
extension, modification or early
termination as announced by way of
notice in the Federal Register.
Regulatory Provisions Suspended
The regulatory provisions set forth in
Chapter 1 of title 19 of the CFR will be
suspended to the extent that they
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conflict with the terms of the eBond
test. The regulatory suspensions will
remain in effect for the duration of this
test and will only apply to eBond test
participants; the regulatory provisions
remain in effect for all non-test
participants.
Test Evaluation
The eBond test is intended to evaluate
the automation of CBP’s bond program
pursuant to the processes described in
this notice, its impact on trade, and
CBP’s ability to enforce applicable laws
and protect the revenue. CBP’s
evaluation of the test, including the
review of any comments submitted to
CBP for the duration of the test, will be
ongoing with a view to possible
extension or expansion of the test.
Notice of any extension, modification or
expansion of the test will be published
in the Federal Register.
Test Evaluation Criteria
The following is a non-exhaustive list
of evaluation factors that CBP may use
to assess the merits of the eBond test:
1. Workload impact;
2. Policy and procedure
accommodations;
3. Cost savings;
4. Trade compliance impact;
5. System efficiency;
6. Operational efficiency; or
7. Other issues raised by public
comment or by the test participants.
Results of the eBond test will be
formulated at the conclusion of the test
and will be made available to the public
upon request.
tkelley on DSK3SPTVN1PROD with NOTICES
Misconduct Under the Test
An eBond test participant may be
subject to civil and criminal penalties,
administrative sanctions, liquidated
damages, and/or discontinuance from
participation in 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 that have not been
waived.
• Failure to deposit duties or fees in
a timely manner.
If the Director, Business
Transformation, ACE Business Office
(ABO), Office of International Trade,
finds that there is a basis for
discontinuance of test participation
privileges, the test participant will be
provided a written notice proposing the
discontinuance with a description of the
facts or conduct supporting the
proposal. The test participant will be
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16:58 Nov 26, 2014
Jkt 235001
offered the opportunity to respond to
the Director’s proposal in writing within
10 calendar days of the date of the
written notice. The response must be
submitted to the Executive Director,
ACE Business Office, Office of
International Trade. The Executive
Director will issue a decision in writing
on the proposed action within 30
business days after receiving a timely
filed response from the test participant.
If no timely response is received, the
proposed notice becomes the final
decision of the Agency as of the date
that the response period expires. A
proposed discontinuance of a test
participant’s privileges will not take
effect unless the response process under
this paragraph has been concluded with
a written decision adverse to the test
participant.
Where the public health, interest, or
safety so requires, or to protect the
revenue, the Director, Business
Transformation, ACE Business Office
(ABO), Office of International Trade,
may immediately discontinue the test
participant’s privileges upon written
notice to the test participant. The notice
will contain a description of the facts or
conduct warranting the Director’s
decision. The test participant will be
offered the opportunity to appeal the
Director’s decision within 10 calendar
days of the date of the written notice
providing for immediate
discontinuance. The appeal must be
submitted to the Executive Director,
ACE Business Office, Office of
International Trade. The immediate
discontinuance will remain in effect
during the appeal period. The Executive
Director will issue a decision in writing
on the appeal within 15 business days
after receiving a timely filed appeal
from the test participant. If no timely
appeal is received, the notice becomes
the final decision of CBP as of the date
that the appeal period expires.
Dated: November 24, 2014.
Brenda Smith,
Assistant Commissioner, Office of
International Trade.
[FR Doc. 2014–28146 Filed 11–26–14; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5760–N–03]
60-Day Notice of Proposed Information
Collection: Community Challenge
Planning Grant Program
Office of Economic Resilience
(OER), HUD.
AGENCY:
PO 00000
Frm 00043
Fmt 4703
Sfmt 4703
ACTION:
Notice.
HUD is seeking approval from
the Office of Management and Budget
(OMB) for the information collection
described below. In accordance with the
Paperwork Reduction Act, HUD is
requesting comment from all interested
parties on the proposed collection of
information. The purpose of this notice
is to allow for 60 days of public
comment.
The Department of Defense and FullYear Continuing Appropriations Act,
2011 (Pub. L. 112–10, approved April
15, 2011) (Appropriations Act),
provided a total of $100,000,000 to HUD
for a Sustainable Communities Initiative
to improve regional planning efforts that
integrate housing and transportation
decisions, and increase the capacity to
improve land use and zoning. Of that
total, $70,000,000 is available for the
Sustainable Communities Regional
Planning Grant Program, and
$30,000,000 is available for the
Community Challenge Planning Grant
Program.
The Consolidated Appropriations Act,
2010 (Pub. L. 111–117, December 16,
2009), provided a total of $150 million
in fiscal year 2010 to HUD for a
Sustainable Communities Initiative to
improve regional planning efforts that
integrate housing and transportation
decisions, and increase the capacity to
improve land use and zoning.
HUD is seeking renewal of its
Community Challenge Planning Grant
Program. The changes of this renewal
from its original approval will be a
reduction in burden hours. This
reduction is due to no new award funds
for the program; thus, form HUD–96011
and form HUD–2880 are no longer
needed. Those two forms were utilized
during the awarding process of the
program. With no new award funds
expected, these forms will be no longer
needed for this program. Only form
HUD–424–CBW will continue to be
needed as this form is used to record
and manage detailed budgetary
expenditures and projections of HUD
award funds and match funds spent
toward grant activities.
DATES: Comments Due Date: January 27,
2015.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
Control Number and should be sent to:
Colette Pollard, Reports Management
Officer, QDAM, Department of Housing
and Urban Development, 451 7th Street
SW., Room 4176, Washington, DC
20410–5000; telephone 202–402–3400
(this is not a toll-free number) or email
SUMMARY:
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]]>Agencies
[Federal Register Volume 79, Number 229 (Friday, November 28, 2014)]
[Notices]
[Pages 70881-70886]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-28146]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Announcement of eBond Test
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: General notice.
-----------------------------------------------------------------------
SUMMARY: This notice announces U.S. Customs and Border Protection's
(CBP's) plan to conduct a voluntary National Customs Automation Program
test concerning automation of CBP's bond program (eBond test). The
eBond test utilizes an automated system (eBond system) that provides
for the transmission of electronic bond contracts (eBonds) between
principals and sureties, with CBP as third-party beneficiary, in the
Automated Commercial Environment (ACE) for the purpose of linking those
eBonds to the transactions they are intended to secure. All eBonds
transmitted pursuant to this test must be transmitted to ACE
electronically, either via the CBP-approved Electronic Data Interchange
(EDI) or emailed to CBP for manual input into ACE. The transmission of
eBonds to CBP must be made by a surety or surety agent. The eBond
system works with ACE to ensure that transactions secured by an eBond
have the proper bond coverage to protect the revenue and secure legal
compliance. The eBond system is intended to establish a single
repository for the centralization of all eBonds within the Office of
Administration's Revenue Division, to harmonize and enhance CBP's bond
processes, and to eliminate flaws in the execution of customs bonds,
which may lead to increased legal risk for CBP. It is anticipated that
the eBond test will reduce paper processing, expedite cargo release,
allow for bonds to be transmitted beyond regular CBP business hours,
and enhance traceability for audit purposes. The eBond test is intended
to evaluate the automation of CBP's bond program, its impact on trade,
and CBP's ability to enforce applicable laws and protect the revenue.
This notice invites public comment concerning any aspect of the test,
describes the eligibility, procedural and documentation requirements
for voluntary participation in the test, and outlines the development
and evaluation methodology to be used in the test.
DATES: The eBond test will commence on January 3, 2015, and will run
for approximately two years, subject to any extension, modification, or
early
[[Page 70882]]
termination as announced by way of notice in the Federal Register.
CBP's evaluation of the test will be ongoing during the test period.
Requests to participate and comments on any aspect of the test may be
submitted to CBP for the duration of the test. CBP will notify an
interested surety via email of its test participation status upon
receipt and review of the surety's eBond test participation request.
ADDRESSES: Comments and/or questions concerning this notice or any
aspect of the test may be submitted to CBP via email to
eBondTest@cbp.dhs.gov, with the subject line identifier reading
``Comment/Questions on eBond test.'' Requests for a surety filer code,
and surety requests to participate in the eBond test should be sent to
Conrad.l.henry@cbp.dhs.gov, with a subject line identifier specifying
either ``Surety filer code request'' or ``Surety request to participate
in eBond test.'' eBonds transmitted to CBP for manual input into ACE by
the Office of Administration's Revenue Division should be sent to
cbp.bondquestions@dhs.gov, with the specific email header information
set forth in CBP's ``eBond Policies and Procedures'' Web page located
at https://www.cbp.gov/trade/trade-community/programs-administration/bonds/ebond.
FOR FURTHER INFORMATION CONTACT: For policy related questions, contact
Kara Welty, Chief, Debt Management Branch, Revenue Division, Office of
Administration, at kara.welty@dhs.gov. For technical questions, contact
John Everett, Entry Summary, Accounts, and Revenue Branch, ACE Business
Office, Office of International Trade, at john.everett@dhs.gov.
SUPPLEMENTARY INFORMATION:
Background
National Customs Automation Program: Electronic Bonds as Planned
Component
Title VI of the North American Free Trade Agreement Implementation
Act (the Act), Public Law 103-182, 107 Stat. 2057 (Dec. 8, 1993),
contains provisions pertaining to Customs Modernization (107 Stat.
2170). Subtitle B of title VI establishes the National Customs
Automation Program (NCAP), an automated and electronic system for the
processing of commercial importations. Section 631 in Subtitle B of the
Act creates section 411 through 414 of the Tariff Act of 1930 (19
U.S.C. 1411-1414). These sections define and list the existing and
planned components of the NCAP (section 411), promulgate program goals
(section 412), provide for the implementation and evaluation of the
program (section 413), and provide for Remote Location Filing (section
414). Section 411(a)(2)(D) lists the electronic filing of bonds as a
planned NCAP component.
A primary objective of the NCAP is customs modernization through
trade compliance and the development of the Automated Commercial
Environment (ACE), the planned successor to the Automated Commercial
System (ACS). ACE is an automated and electronic system for commercial
trade processing, which is intended to streamline business processes,
facilitate growth in trade, ensure cargo security, and foster
participation in global commerce, while ensuring compliance with U.S.
laws and regulations and reducing costs for CBP and stakeholders. The
ability to meet these objectives depends on successfully modernizing
CBP's business functions and the information technology that supports
those functions.
Development of the Electronic Bond Concept
CBP's bond program has been the subject of several evaluations,
including a CBP-commissioned 2003 independent report that examined the
efficacy of the agency's continuous bond program. See ``Grant Thornton
Review of Customs Continuous Transaction (Entry) Bonds'' dated April 3,
2003. That report recommended that CBP centralize its continuous bond
program to increase efficiency and uniformity. In 2011, the Department
of Homeland Security's Office of the Inspector General conducted an
audit of CBP's single transaction bond (STB) program, and found
deficiencies in bond retention, accuracy and completion, valuation, as
well as problems with cargo being released prior to execution of bonds.
See ``Efficacy of Customs and Border Protection's Bonding Process,''
OIG 11-92, dated June 27, 2011, available for viewing at https://www.oig.dhs.gov/assets/Mgmt/OIG_11-92_Jun11.pdf. The OIG recommended
centralization and automation of the STB program and this objective was
adopted as a CBP mission priority.
A Notice of Proposed Rulemaking (NPRM) entitled ``Customs and
Border Protection's Bond Program'' was published in the Federal
Register (75 FR 266) on January 5, 2010. The document proposed
amendments to the CBP regulations in title 19 of the Code of Federal
Regulations (CFR) to modernize CBP's bond program by centralizing the
filing, review and approval of continuous bonds at CBP's Revenue
Division (RD) within the Office of Administration in Indianapolis, and
by removing or amending certain bond requirements. It is anticipated
that a final rule adopting the proposed amendments that pertain to
centralization of the continuous bond program at the RD and permitting
the electronic transmission of both continuous bonds and STBs to CBP
via the Electronic Data Interchange (EDI) will be published in the
Federal Register in the near future.
In preparation for the development and deployment of an automated
bond program, CBP engaged in regular outreach with stakeholders,
including sureties, surety agents, customs brokers, trade groups and
other government agencies with a view to obtaining meaningful feedback
on existing systems and operations in order to build a mutually
beneficial automated bond system. In early 2014, CBP began building the
eBond system. CBP developed the eBond system with ongoing feedback from
the trade and subject matter experts. The eBond system serves to
harmonize and enhance CBP bond processes pertaining to transmission,
validation, maintenance, retention, and periodic review of all customs
bonds, and establishes a single electronic repository for the
centralization of those bonds within the RD. The eBond system benefits
both CBP and the trade by reducing paper processing, expediting cargo
release, expanding bond transmission capabilities beyond regular CBP
business hours, and enhancing traceability for audit purposes.
In June 2014, CBP released a Customs and Trade Automated Interface
Requirements (CATAIR) document providing updated conventional trade
interface information for the future deployment of electronic bond data
functionality in ACE. The CATAIR update provides input and output EDI
record formation for the electronic transmission of bonds to CBP. The
document presents both the bond input transaction proprietary records
used by sureties and surety agents to file and maintain an eBond as
well as the output transaction proprietary records returned in
response. The input record layouts describe the data elements required
by the automated EDI interface. The output record layouts describe a
response to filing as generated and returned by the automated EDI
interface. CBP has posted these technical specifications on the CBP Web
site at the following link: https://www.cbp.gov/document/guidance/customs-ebond-createupdate-catair-chapter.
As additional functionality is released in ACE, CBP will continue
to integrate these new capabilities with eBonds and
[[Page 70883]]
their associated transactions. Any updates to the technical formats
will be posted at the above link. The trade community is encouraged to
subscribe to the Cargo Systems Messaging Service (CSMS) at https://apps.cbp.gov/csms/csms.asp?display_page=1 to receive timely
notifications on ACE as well as to receive any future changes or
updates to these technical specifications.
Description of the eBond Test
Pursuant to 19 U.S.C. 1623(b), bonds may be transmitted
electronically to CBP pursuant to an authorized EDI system. As stated
in 19 U.S.C. 1623(d), any bond transmitted to CBP through an authorized
EDI system shall have the same force and effect and be binding upon the
parties (e.g., the principal(s) and surety(ies)) as if the bond were
manually executed, signed, and filed. CBP's eBond system is an
automated environment that provides for the transmission of electronic
bond contracts (eBonds) between principals and sureties, with CBP as
third-party beneficiary, in ACE through an authorized EDI system for
the purpose of linking those eBonds to the transactions they are
intended to secure. CBP's eBond system is available for all bond
requirements set out in Chapter 1 of title 19 of the CFR, including but
not limited to bonds under 19 CFR 141.20 and 19 CFR 142.4, with the
exceptions noted below.
This notice announces CBP's plan to conduct a voluntary NCAP test
of the eBond system. The test is intended to evaluate CBP's eBond
system, its impact on trade, and CBP's ability to enforce applicable
laws and protect the revenue. The eBond test will commence on January
3, 2015, and will run for approximately two years, subject to any
extension or early termination as announced by way of notice in the
Federal Register.
For purposes of the eBond test, the following definitions,
conditions and criteria apply:
Definitions
eBond. The term ``eBond'' means an electronic bond
contract between principal(s) and surety(ies), with CBP as third-
party beneficiary, that is comprised of data elements required by
the eBond system and that is transmitted by a surety or surety agent
to CBP under the eBond test. Pursuant to 19 U.S.C. 1623(d), an eBond
has the same force and effect and is binding upon the principal(s)
and surety(ies) thereto as if such eBond had been manually executed,
signed, and filed in full compliance with 19 CFR part 113.
eBond system. The term ``eBond system'' means CBP's
automated system for the transmission of eBonds in ACE for the
purpose of linking those eBonds to the transactions they are
intended to secure.
eSTB. The term ``eSTB'' means a single transaction
eBond.
eBond rider. The term ``eBond rider'' means an
electronic bond rider between principal(s) and surety(ies), with CBP
as third-party beneficiary, that is comprised of data elements
required by the eBond system and that is transmitted by a surety or
surety agent to CBP under the eBond test. An eBond rider modifies an
eBond in the same way that a bond rider modifies a customs bond.
Pursuant to 19 U.S.C. 1623(d), an eBond rider has the same force and
effect and is binding upon the principal(s) and surety(ies) thereto
as if such eBond rider had been manually executed, signed, and filed
in full compliance with 19 CFR part 113.
Method and Content of eBond and eBond Rider Transmission
The transmission of all eBonds and eBond riders in ACE for purposes
of this eBond test must be made by a surety or surety agent pursuant to
one of the two methods described below.
(1) EDI: eBonds and eBond riders may be transmitted in ACE
electronically via EDI, and must contain the required data elements set
forth in the CATAIR which comprise a reduced subset of the OMB-approved
information collected on the CBP Form 301. The complete list of data
elements for purposes of the eBond test can be found in the ACE ABI
CATAIR--Customs eBond Create/Update Chapter at https://www.cbp.gov/trade/ace/catair.
EDI is only available for the transmission of single transaction
eBonds with the following Activity Codes:
Single Transaction Bonds
------------------------------------------------------------------------
Activity code Activity name
------------------------------------------------------------------------
1................................ Importer or Broker.
1A............................... Drawback Payments Refunds.
3................................ International Carrier.
6................................ Wool & Fur Products.
7................................ Bill of Lading.
8................................ Detention of Copyrighted Material.
10............................... Court Costs for Condemned Goods.
16............................... Importer Security Filing (ISF).
------------------------------------------------------------------------
EDI is only available for the transmission of continuous eBonds and
continuous eBond riders with the following Activity Codes:
Continuous Bonds
------------------------------------------------------------------------
Activity code Activity name
------------------------------------------------------------------------
1................................ Importer or Broker.
1A............................... Drawback Payments Refunds.
2................................ Custodian of Bonded Merchandise.
3................................ International Carrier.
3A............................... Instruments of International Traffic.
3A3.............................. Carrier of International Traffic.
4................................ Foreign Trade Zone Operator.
5................................ Public Gauger.
11............................... Airport Security Bond.
16............................... Importer Security Filing (ISF).
------------------------------------------------------------------------
(2) Email: eBonds and eBond riders may be emailed to CBP at
cbp.bondquestions@dhs.gov for manual input into ACE by the RD. eBonds
transmitted via email must be on a CBP Form 301 signed by the
principal(s) and surety(ies). eSTBs must include direction to CBP as to
how the eSTB is to be used and the entry type the eSTB will secure.
Email transmission is available for eBonds and eBond riders with any
Activity Code. eBonds and eBond riders transmitted by this method are
subject to policies and procedures issued by the Office of
Administration for the manual input of eBonds and eBond riders.
Terms and Conditions for eBonds
As stated in 19 U.S.C. 1623(d), any bond transmitted to CBP through
an authorized EDI system shall have the same force and effect and be
binding upon the parties (e.g., the principal(s) and surety(ies)) as if
the bond were manually executed, signed, and filed.
In order to secure payment of any duty, tax or charge and
compliance with law or regulation as a result of activity covered by
any condition identified in an eBond, the principal(s) and surety(ies)
identified on the eBond bind themselves (jointly and severally) to the
United States in the amount or amounts set forth in the eBond.
A continuous eBond remains in force for one year beginning with the
effective date and for each succeeding annual period, or until
terminated. This continuous eBond constitutes a separate bond for each
annual period in the amount(s) listed on the eBond for liabilities that
accrue in each annual period. The intention to terminate this
continuous eBond must be conveyed within the annual period and in the
manner prescribed in this test notice.
The principal(s) and surety(ies) agree that any charge against the
eBond under any of the listed names is as though it was made by the
principal(s). The principal(s) and surety(ies) agree that they are
bound to the same extent as if they executed a separate eBond covering
each set of conditions incorporated by reference to the CBP regulations
into this eBond. If the surety(ies) fails to appoint an agent under
Title 31, United States Code, Section 9306, the
[[Page 70884]]
surety(ies) consents to service on the Clerk of any United States
District Court or the U.S. Court of International Trade, where suit is
brought on this bond.
Additional terms and conditions for each eBond are identified by
the Activity Code for the eBond selected by the transmitting surety/
surety agent. The additional terms and conditions for each Activity
Code mirror the correlating terms and conditions found on the CBP Form
301. Selection of an Activity Code constitutes the agreement of the
surety(ies) and principal(s) to be bound by the terms and conditions in
the corresponding regulation:
------------------------------------------------------------------------
CBP Regulations in which
Activity code Activity name conditions are codified
------------------------------------------------------------------------
1................ Importer or broker... 19 CFR 113.62.
1A............... Drawback Payments 19 CFR 113.65.
Refunds.
2................ Custodian of Bonded 19 CFR 113.63.
Merchandise
(continuous bond
only).
3................ International Carrier 19 CFR 113.64.
3A............... Instruments of 19 CFR 113.66.
International
Traffic; (continuous
bond only).
3A3.............. Carrier of 19 CFR 113.64, 113.66.
International
Traffic.
4................ Foreign Trade Zone; 19 CFR 113.73.
(continuous bond
only).
5................ Public Gauger........ 19 CFR 113.67.
6................ Wool & Fur Products 19 CFR 113.68.
Labeling Acts
Importation (single
transaction only).
7................ Bill of Lading 19 CFR 113.69.
(single transaction
only).
8................ Detention of 19 CFR 113.70.
Copyrighted Material
(single transaction
only).
9................ Neutrality (single 19 CFR 113.71.
transaction only).
10............... Court Costs for 19 CFR 113.72.
Condemned Goods
(single transaction
only).
11............... Airport Security Bond 19 CFR Part 113 App A.
16............... Importer Security 19 CFR Part 113 App D.
Filing (ISF).
------------------------------------------------------------------------
eBonds associated with the Activity Codes listed below contain
additional unique terms and conditions; as such, they can only be
emailed to the RD. CBP cannot accept eBonds associated with these
Activity Codes via EDI at this time.
------------------------------------------------------------------------
------------------------------------------------------------------------
12............... International Trade 19 CFR Part 113 App B.
Commission (ITC)
Exclusion Bond.
14............... In-Bond Export
Consolidation Bond.
15............... Intellectual Property
Rights (IPR).
17............... Marine Terminal
Operator (continuous
bond only).
------------------------------------------------------------------------
Bond Requirements for Entry/Entry Summary Filing
Beginning on January 3, 2015, participants in the eBond test will
be the only parties able to transmit required bond coverage (in the
form of eBonds) for the following entry/entry summary scenarios:
--------------------------------------------------------------------------------------------------------------------------------------------------------
ACE entry
(simplified entry) ACE entry summary ACS entry followed ACE entry summary ACS entry followed ACS entry summary
followed by ACE certified for ACE by ACE entry certified for ACS by ACS entry certified for
entry summary cargo release summary cargo release summary cargo release
--------------------------------------------------------------------------------------------------------------------------------------------------------
Single Transaction Bond......... YES............... YES............... NO................ NO................ NO................ NO.
Continuous Bond................. YES............... YES............... YES............... YES............... YES............... YES.
--------------------------------------------------------------------------------------------------------------------------------------------------------
For the scenarios in which the word ``yes'' appears, the entry/
entry summary must be matched (validated) to an existing eBond that was
previously transmitted in ACE for the purpose of securing that
transaction. If an appropriate eBond is not on file in ACE for that
transaction, the entry/entry summary will be rejected. For the
scenarios in which the word ``no'' appears, CBP will not permit bond
coverage to be transmitted under the eBond test and a CBP Form 301
subject to 19 CFR part 113 will be required instead. On November 1,
2015, CBP expects to retire ACS for most electronic entry/entry summary
transactions, and at that time, the eBond test is expected to expand to
all scenarios set forth in the chart above.
Terms and Conditions for eBond Riders
The surety/surety agent transmitting an eBond rider must identify
the eBond being amended and the type of eBond rider selected, as well
as other data elements required by the eBond system. The principal(s)
and surety(ies) of the identified eBond agree to be bound (jointly and
severally) by amendments to the eBond corresponding to the type of
eBond rider the surety/surety agent has selected. Except for the
amendments described below for the selected eBond rider, the
principal(s) and surety(ies) agree that all other terms and conditions
of the identified eBond remain unchanged.
(1) Addition eBond rider. The principal(s) and surety(ies) agree
that the names transmitted with this eBond rider are unincorporated
units of the identified principal or are trade or business names used
by the identified principal in its business, that the identified eBond
covers its business, and that the identified eBond covers any act done
in those names to the same extent as though done in the name of the
identified principal. The principal(s)
[[Page 70885]]
and surety(ies) agree that any such act shall be considered to be the
act of the identified principal.
(2) Deletion eBond rider. The principal(s) and surety(ies) agree
that the names transmitted with this eBond rider of unincorporated
units of the identified principal or trade or business names used by
the identified principal in its business are deleted from the
identified eBond effective upon the date of approval of this eBond
rider by the appropriate CBP bond approval official.
(3) Reconciliation eBond rider. The principal(s) and surety(ies)
agree that the identified eBond covers all Reconciliations pursuant to
19 U.S.C. 1484(b) that are elected on any entries secured by the
identified eBond, and that all conditions set out in 19 CFR 113.62 are
applicable to the identified eBond. See also, 63 FR 6257 (Feb. 6,
1998); 63 FR 44303 (Aug. 18, 1998); and 67 FR 61200 (Sept. 27, 2002).
The principal(s) and surety(ies) also agree that, when an Aggregate
Reconciliation under this eBond rider lists entries occurring in more
than one bond period, any liabilities to CBP reflected in that
Aggregate Reconciliation will be attributable (up to the full available
bond amount) to any or all of those bond periods.
(4) U.S. Virgin Islands eBond rider. The principal(s) and
surety(ies) agree that the words ``United States,'' whenever used in
the terms and conditions of the identified eBond, include the U.S.
Virgin Islands.
eBond and eBond Rider Transmission as Binding Representation to CBP of
Authority To Bind Both Surety and Principal to eBond or eBond Rider
In accordance with 19 U.S.C. 1623(d), and consistent with the
Electronic Signatures in Global and National Commerce Act, 15 U.S.C.
7001 et seq., in place of signatures memorializing the parties' intent
to be bound, the principals and sureties who execute eBonds under this
test certify that the surety's/surety agent's act of transmitting an
eBond or eBond rider to CBP in ACE to secure a transaction constitutes
a binding representation to CBP that:
(1) The transmitting surety/surety agent has the authority to bind
both the surety(ies) and the principal(s) identified in the eBond or
eBond rider; and
(2) Pursuant to the surety/surety agent's authority, both the
surety(ies) and the principal(s) intend to be bound by the transmitted
eBond or eBond rider, under the terms and conditions set forth in this
notice. Furthermore, any transaction that identifies or uses an eBond
as security constitutes the re-affirmation of the principal responsible
for the transaction that it intends to be bound by the terms and
conditions of the identified or used eBond.
Name and Address Change Bond Riders Not Supported in eBond
For purposes of the eBond test, CBP will not be collecting
information regarding the name and address of the principal or surety
on the eBond as this data will be available to CBP via other components
of ACE. For this reason, bond riders pertaining to a principal's name
or address change (see 19 CFR 113.24(a)(1)(2)) are not supported in ACE
as this information is not transmitted on the eBond.
Continuous Bonds Executed Prior to eBond Test Will Be Accessible in
eBond System
Continuous bonds executed on CBP Form 301 prior to the eBond test
deployment date of January 3, 2015, will be accessible in the eBond
system for ease of CBP's administration of all continuous bonds.
However, continuous bonds executed on CBP Form 301 prior to January 3,
2015, will not be subject to the rules set forth in this notice but
will remain subject to the CBP bond regulations in 19 CFR part 113.
Therefore, bond riders for these pre-January 3, 2015 continuous bonds
must still be submitted to the RD in the format and manner detailed in
19 CFR part 113. Effective January 3, 2015, CBP will no longer accept
name/address change bond riders for these pre-January 3, 2015
continuous bonds. The importer identification number and surety number
will continue to be the primary identification markers used by CBP when
verifying adequate bond coverage for activities that require it.
Principals or sureties who wish to change the name or address on a pre-
January 3, 2015 continuous bond must terminate the bond and provide a
new bond (depending on the entry/entry summary scenario, this may be an
eBond or a STB on CBP Form 301).
Termination of an eBond
A surety may, with or without the consent of the principal,
electronically terminate an eBond on which it is obligated. The
effective date of the termination must be stated in the electronic
notice of termination and must be at least 15 calendar days after the
date of the electronic notice of termination. If an eBond is
terminated, no new customs transactions may be charged against the
eBond. The surety, as well as the principal, remains liable on a
terminated eBond for obligations incurred prior to termination.
eBond Status Updates
eBond status updates will be provided electronically to the surety/
surety agent and any party identified on the eBond as a ``Secondary
Notify Party''.
Authorization for the eBond Test
CBP's eBond test is authorized under Sec. 101.9(b) of title 19 of
the Code of Federal Regulations (19 CFR 101.9(b)), which provides for
the testing of NCAP programs or procedures.
eBond Test Participant Eligibility
Participation in the eBond test is voluntary and may include
surety(ies)/surety agents as well as principals who authorize a surety/
surety agent to transmit an eBond. In order for a surety/surety agent
to be eligible to participate in eBond, the surety/surety agent must
obtain a filer code from CBP. A request for a filer code should be
submitted to Conrad.l.henry@cbp.dhs.gov. Once the filer code is issued
by CBP, it will be associated with the surety code which will be
maintained by CBP. Principals and/or importers may participate in the
eBond test by contacting a participating surety and obtaining an eBond.
eBond Test Selection Criteria
Participation in the eBond test is open to all sureties/surety
agents who have a surety filer code and who have requested permission
to participate in the test and received CBP approval, as well as any
principal who authorizes a surety/surety agent to transmit an eBond. A
surety or surety agent interested in voluntary participation in the
eBond test must submit an email request to Conrad.l.henry@cbp.dhs.gov
with the subject line identifier ``Request to participate in eBond
test.'' CBP will notify interested sureties of their test participation
status upon receipt of the email requesting participation in the test.
A principal who authorizes a surety/surety agent to transmit an eBond
during this test is considered an eBond test participant and is bound
by the terms and conditions of this notice.
eBond Test Dates
The eBond test will commence on January 3, 2015, and will run
approximately two years, subject to any extension, modification or
early termination as announced by way of notice in the Federal
Register.
Regulatory Provisions Suspended
The regulatory provisions set forth in Chapter 1 of title 19 of the
CFR will be suspended to the extent that they
[[Page 70886]]
conflict with the terms of the eBond test. The regulatory suspensions
will remain in effect for the duration of this test and will only apply
to eBond test participants; the regulatory provisions remain in effect
for all non-test participants.
Test Evaluation
The eBond test is intended to evaluate the automation of CBP's bond
program pursuant to the processes described in this notice, its impact
on trade, and CBP's ability to enforce applicable laws and protect the
revenue. CBP's evaluation of the test, including the review of any
comments submitted to CBP for the duration of the test, will be ongoing
with a view to possible extension or expansion of the test. Notice of
any extension, modification or expansion of the test will be published
in the Federal Register.
Test Evaluation Criteria
The following is a non-exhaustive list of evaluation factors that
CBP may use to assess the merits of the eBond test:
1. Workload impact;
2. Policy and procedure accommodations;
3. Cost savings;
4. Trade compliance impact;
5. System efficiency;
6. Operational efficiency; or
7. Other issues raised by public comment or by the test
participants.
Results of the eBond test will be formulated at the conclusion of
the test and will be made available to the public upon request.
Misconduct Under the Test
An eBond test participant may be subject to civil and criminal
penalties, administrative sanctions, liquidated damages, and/or
discontinuance from participation in 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 that
have not been waived.
Failure to deposit duties or fees in a timely manner.
If the Director, Business Transformation, ACE Business Office
(ABO), Office of International Trade, finds that there is a basis for
discontinuance of test participation privileges, the test participant
will be provided a written notice proposing the discontinuance with a
description of the facts or conduct supporting the proposal. The test
participant will be offered the opportunity to respond to the
Director's proposal in writing within 10 calendar days of the date of
the written notice. The response must be submitted to the Executive
Director, ACE Business Office, Office of International Trade. The
Executive Director will issue a decision in writing on the proposed
action within 30 business days after receiving a timely filed response
from the test participant. If no timely response is received, the
proposed notice becomes the final decision of the Agency as of the date
that the response period expires. A proposed discontinuance of a test
participant's privileges will not take effect unless the response
process under this paragraph has been concluded with a written decision
adverse to the test participant.
Where the public health, interest, or safety so requires, or to
protect the revenue, the Director, Business Transformation, ACE
Business Office (ABO), Office of International Trade, may immediately
discontinue the test participant's privileges upon written notice to
the test participant. The notice will contain a description of the
facts or conduct warranting the Director's decision. The test
participant will be offered the opportunity to appeal the Director's
decision within 10 calendar days of the date of the written notice
providing for immediate discontinuance. The appeal must be submitted to
the Executive Director, ACE Business Office, Office of International
Trade. The immediate discontinuance will remain in effect during the
appeal period. The Executive Director will issue a decision in writing
on the appeal within 15 business days after receiving a timely filed
appeal from the test participant. If no timely appeal is received, the
notice becomes the final decision of CBP as of the date that the appeal
period expires.
Dated: November 24, 2014.
Brenda Smith,
Assistant Commissioner, Office of International Trade.
[FR Doc. 2014-28146 Filed 11-26-14; 8:45 am]
BILLING CODE 9111-14-P
