Privacy Act of 1974; Department of Homeland Security, U.S. Customs and Border Protection, DHS/CBP-014 Regulatory Audit Archive System (RAAS) System of Records, 19985-19988 [2016-07893]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• Office of the Secretary

[Federal Register Volume 81, Number 66 (Wednesday, April 6, 2016)]
[Notices]
[Pages 19985-19988]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07893]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Office of the Secretary

[Docket No. DHS-2016-0027]


Privacy Act of 1974; Department of Homeland Security, U.S. 
Customs and Border Protection, DHS/CBP-014 Regulatory Audit Archive 
System (RAAS) System of Records

AGENCY: Privacy Office, Department of Homeland Security.

ACTION: Notice of Privacy Act System of Records.

-----------------------------------------------------------------------

SUMMARY: In accordance with the Privacy Act of 1974, the Department of 
Homeland Security (DHS) proposes to update and reissue a current DHS 
system of records titled, ``DHS/U.S. Customs and Border Protection 
(CBP)-014 Regulatory Audit Archive System (RAAS) System of Records'' 
(73 FR 77807, December 19, 2008). This system of records allows DHS/CBP 
to collect and maintain records on individuals subject to regulatory 
audits of customs brokers, importers, and other parties involved in 
international trade activities. CBP is updating this system of records 
notice to reflect changes to its authorities, category of records, and 
routine uses. Specifically, these changes include expanding the 
category of records to permit the collection of Employer Identification 
Numbers (EINs) or Social Security numbers (SSNs), also known as a 
Federal Taxpayer Identifying Number, and business records associated 
with the audit from customs brokers, importers, and other parties via 
merchandise entry documentation. CBP is clarifying the authorities 
section to include updated and more narrowly tailored authorities to 
permit the collection of EIN or SSN. CBP is making non-substantive 
edits to the Routine Uses A-G to align with previously published 
Departmental Systems of Records Notices (SORNs). Lastly, this notice 
includes non-substantive changes to simplify the formatting and text of 
the previously published notice.
    Additionally, DHS is issuing a Notice of Proposed Rulemaking to 
reduce the current exemptions for this system of records from certain 
provisions of the Privacy Act elsewhere in the Federal Register. The 
previously issued Final Rule for DHS/CBP-014 RAAS (Aug. 31, 2009, 74 FR 
45076) remains in effect until a new Final Rule is issued. This updated 
system will be included in the DHS inventory of record systems.

DATES: Submit comments on or before May 6, 2016. This updated system 
will be effective May 6, 2016.

ADDRESSES: You may submit comments, identified by docket number DHS-
2016-0027 by one of the following methods:
     Federal e-Rulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Fax: 202-343-4010.
     Mail: Karen L. Neuman, Chief Privacy Officer, Privacy 
Office, Department of Homeland Security, Washington, DC 20528.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to https://www.regulations.gov, including any 
personal information provided.
    Docket: For access to the docket to read background documents or 
comments received, please visit https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For general questions, please contact: 
John Connors, (202) 344-1610, Privacy Officer, U.S. Customs and Border 
Protection, Privacy and Diversity Office, 1300 Pennsylvania Ave. NW., 
Washington, DC 20229. For privacy questions, please contact: Karen L. 
Neuman, (202) 343-1717, Chief Privacy Officer, Privacy Office, 
Department of Homeland Security, Washington, DC 20528.

SUPPLEMENTARY INFORMATION: 

I. Background

    In accordance with the Privacy Act of 1974, 5 U.S.C. 552a, the 
Department of Homeland Security (DHS)/U.S. Customs and Border 
Protection (CBP) proposes to update and reissue a current DHS system of 
records titled, ``DHS/CBP-014 Regulatory Audit Archive System (RAAS) 
System of Records.''
    DHS/CBP conducts regulatory audits in support of its oversight of 
customs brokers licensed by DHS/CBP pursuant to 19 U.S.C. 1641 to act 
as agents for importers in the entry of merchandise and payment of 
duties and fees. This system of records covers records about importers 
and other parties engaged in international trade activities that are 
the subject of a regulatory audit or are identified in and related to 
the scope of an audit report.
    As a result of a biennial review of this SORN, DHS/CBP is updating 
the categories of records to include the collection of EINs or SSNs, 
also known as Federal Taxpayer Identifying Number, pursuant to 19 CFR 
24.5, 19 CFR 149.3, and E.O. 9397, as amended by E.O. 13478. DHS/CBP 
collects this additional data to align RAAS with information provided 
by importers through the DHS/CBP Automated Commercial Environment 
System (ACE) data-source. DHS/CBP is also clarifying the category of 
records to include business and audit records collected or created as 
part of the audit process.
    DHS/CBP is clarifying the authorities section to include updated 
and more narrowly tailored authorities to permit the collection of EIN 
or SSN. 19 CFR 24.5 and 19 CFR 149.3 require that DHS/CBP collect 
Federal Taxpayer Identifying Numbers in association with services 
resulting in issuance of a bill or refund check upon adjustment of a 
cash collection or to document entities that are liable for payment of 
all duties and

[[Page 19986]]

responsible for meeting all statutory or regulatory requirements 
incurred as a result of importation. Individuals or entities that do 
not have a SSN may submit an EIN in lieu of the SSN for merchandise 
entry purposes.
    DHS/CBP is making non-substantive edits to the Routine Uses A-G to 
align with previously published Departmental SORNs. This notice also 
includes non-substantive changes to simplify the formatting and texts 
of the previously published notice.
    Consistent with DHS's information sharing mission, information 
stored in DHS/CBP-014 RAAS may be shared with other DHS Components that 
have a need to know the information to carry out their national 
security, law enforcement, immigration, intelligence, or other homeland 
security functions. In addition, DHS/CBP may share information with 
appropriate Federal, State, local, tribal, territorial, foreign, or 
international government agencies consistent with the routine uses set 
forth in this system of records notice.
    Additionally, DHS is issuing a Notice of Proposed Rulemaking to 
reduce the current exemptions for this system of records from certain 
provisions of the Privacy Act elsewhere in the Federal Register. The 
previously issued Final Rule for DHS/CBP-014 RAAS (Aug. 31, 2009; 74 FR 
45076) remains in effect until a new Final Rule is issued. This updated 
system will be included in the DHS inventory of record systems.

II. Privacy Act

    The Privacy Act embodies fair information practice principles in a 
statutory framework governing the means by which Federal Government 
agencies collect, maintain, use, and disseminate individuals' records. 
The Privacy Act applies to information that is maintained in a ``system 
of records.'' A ``system of records'' is a group of any records under 
the control of an agency from which information is retrieved by the 
name of an individual or by some identifying number, symbol, or other 
identifying particular assigned to the individual. In the Privacy Act, 
an individual is defined to encompass U.S. citizens and lawful 
permanent residents. As a matter of policy, DHS extends administrative 
Privacy Act protections to all individuals when systems of records 
maintain information on U.S. citizens, lawful permanent residents, and 
visitors.
    Below is the description of the DHS/CBP-014 Regulatory Audit 
Archive System (RAAS) System of Records.
    In accordance with 5 U.S.C. 552a(r), DHS has provided a report of 
this system of records to the Office of Management and Budget and to 
Congress.


SYSTEM OF RECORDS:
    Department of Homeland Security (DHS)/U.S. Customs and Border 
Protection (CBP)-014.

SYSTEM NAME:
    DHS/CBP-014 Regulatory Audit Archive System (RAAS).

Security classification:
    Unclassified.

SYSTEM LOCATION:
    Records are maintained in the Regulatory Audit Management 
Information System (RAMIS) located at the U.S. Customs and Border 
Protection Headquarters in Washington, DC and field offices.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Categories of individuals covered by this system include importers 
and other parties engaged in international trade activities that are 
the subject of a regulatory audit or are identified in and related to 
the scope of an audit report.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Categories of individuals covered by this system include:
     Individual's name, including names of officers of customs 
broker firms or other business entities engaged in international trade 
and identified as a subject of an audit or related to the scope of an 
audit;
     Importer of Record (IR) Number;
     Dun and Bradstreet, Inc. DUN numbers;
     Business records associated with the audit;
     Email address;
     Phone number;
     Employer Identification Number (EIN) or Social Security 
number (SSN), also known as Federal Taxpayer Identifying Number;
     Audit reports of subject accounts and records;
     Correspondence with the subject of the audits and related 
parties:
     Congressional inquiries concerning customs brokers or 
other audit subjects and disposition made of such inquiries; and
     License and permit numbers and dates issued and district 
or port covered.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    6 U.S.C. 115(a)(1) and 213(b)(2); 19 U.S.C. ch. 4; 19 U.S.C. 1508, 
1509, 1592, and 1641; 19 CFR parts 24.5, 111, 143, 149.3, 163; 31 
U.S.C. 3729; and E.O. 9397, as amended by E.O. 13478.

PURPOSE(s):
    The purpose of this system is to collect and maintain records on 
the regulatory audits of customs brokers, licensed by CBP pursuant to 
19 U.S.C. 1641, to act as agents for importers in the entry of 
merchandise and payment of duties and fees, and other persons or 
business entities engaged in international trade.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, all or a portion of the records or 
information contained in this system may be disclosed outside DHS as a 
routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
    A. To the Department of Justice (DOJ), including Offices of the 
U.S. Attorneys, or other Federal agency conducting litigation or in 
proceedings before any court, adjudicative, or administrative body, 
when it is relevant or necessary to the litigation and one of the 
following is a party to the litigation or has an interest in such 
litigation:
    1. DHS or any Component thereof;
    2. Any employee or former employee of DHS in his/her official 
capacity;
    3. Any employee or former employee of DHS in his/her individual 
capacity when DOJ or DHS has agreed to represent the employee; or
    4. The United States or any agency thereof.
    B. To a congressional office from the record of an individual in 
response to an inquiry from that congressional office made at the 
request of the individual to whom the record pertains.
    C. To the National Archives and Records Administration (NARA) or 
General Services Administration pursuant to records management 
inspections being conducted under the authority of 44 U.S.C. 2904 and 
2906.
    D. To an agency or organization for the purpose of performing audit 
or oversight operations as authorized by law, but only such information 
as is necessary and relevant to such audit or oversight function.
    E. To appropriate agencies, entities, and persons when:
    1. DHS suspects or has confirmed that the security or 
confidentiality of information in the system of records has been 
compromised;
    2. DHS has determined that as a result of the suspected or 
confirmed compromise, there is a risk of identity theft or fraud, harm 
to economic or property interests, harm to an individual, or harm to 
the security or

[[Page 19987]]

integrity of this system or other systems or programs (whether 
maintained by DHS or another agency or entity) that rely upon the 
compromised information; and
    3. The disclosure made to such agencies, entities, and persons is 
reasonably necessary to assist in connection with DHS's efforts to 
respond to the suspected or confirmed compromise and prevent, minimize, 
or remedy such harm.
    F. To contractors and their agents, grantees, experts, consultants, 
and others performing or working on a contract, service, grant, 
cooperative agreement, or other assignment for DHS, when necessary to 
accomplish an agency function related to this system of records. 
Individuals provided information under this routine use are subject to 
the same Privacy Act requirements and limitations on disclosure as are 
applicable to DHS officers and employees.
    G. To an appropriate Federal, State, tribal, local, international, 
or foreign law enforcement agency or other appropriate authority 
charged with investigating or prosecuting a violation or enforcing or 
implementing a law, rule, regulation, or order, when a record, either 
on its face or in conjunction with other information, indicates a 
violation or potential violation of law, which includes criminal, 
civil, or regulatory violations and such disclosure is proper and 
consistent with the official duties of the person making the 
disclosure.
    H. To an appropriate Federal, State, local, tribal, foreign, or 
international agency, if the information is relevant and necessary to a 
requesting agency's decision concerning the hiring or retention of an 
individual, or issuance of a security clearance, license, contract, 
grant, or other benefit, or if the information is relevant and 
necessary to a DHS decision concerning the hiring or retention of an 
employee, the issuance of a security clearance, the reporting of an 
investigation of an employee, the letting of a contract, or the 
issuance of a license, grant or other benefit and disclosure is 
appropriate to the proper performance of the official duties of the 
person making the request.
    I. To a court, magistrate, or administrative tribunal in the course 
of presenting evidence, including disclosures to opposing counsel or 
witnesses in the course of civil discovery, litigation, or settlement 
negotiations or in connection with criminal law proceedings or in 
response to a subpoena from a court of competent jurisdiction.
    J. To the news media and the public, with the approval of the Chief 
Privacy Officer in consultation with counsel, when there exists a 
legitimate public interest in the disclosure of the information, when 
disclosure is necessary to preserve confidence in the integrity of DHS, 
or when disclosure is necessary to demonstrate the accountability of 
DHS's officers, employees, or individuals covered by the system, except 
to the extent the Chief Privacy Officer determines that release of the 
specific information in the context of a particular case would 
constitute an unwarranted invasion of personal privacy.
Disclosure to consumer reporting agencies:
    None.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    DHS/CBP stores records in this system electronically or on paper in 
secure facilities in a locked drawer behind a locked door. The records 
may be stored on magnetic disc, tape, and digital media.

RETRIEVABILITY:
    DHS/CBP may retrieve records by name or other (alphanumeric) 
personal identifier.

SAFEGUARDS:
    DHS/CBP safeguards records in this system according in accordance 
with applicable rules and policies, including all applicable DHS 
automated systems security and access policies. DHS/CBP has imposed 
strict controls to minimize the risk of compromising the information 
that is being stored. Access to the computer system containing the 
records in this system is limited to those individuals who have a need 
to know the information for the performance of their official duties 
and who have appropriate clearances or permissions.

RETENTION AND DISPOSAL:
    DHS/CBP maintains regulatory audit records in accordance with N1-
36-86-1 approved by NARA on November 9, 1989. CBP maintains regulatory 
reports and company findings on-site for one year and then transfers 
the records to the Federal Records Center (FRC), which destroys the 
records after ten (10) years. CBP maintains regulatory audit subject 
records on-site for one year and transfers the files to the FRC, which 
destroys the records after three years.

SYSTEM MANAGER AND ADDRESS:
    Executive Director, Regulatory Audit, U.S. Customs and Border 
Protection, 1717 H Street--6th Floor, Washington, DC 20229.

NOTIFICATION PROCEDURE:
    Individuals seeking notification of and access to any record 
contained in this system of records, or seeking to contest its content, 
may submit a request in writing to the DHS Chief Freedom of Information 
Act (FOIA) Officer or CBP's FOIA Officer, whose contact information can 
be found at https://www.dhs.gov/foia under ``Contacts.'' If an 
individual believes more than one Component maintains Privacy Act 
records concerning him or her, the individual may submit the request to 
the Chief Privacy Officer and Chief Freedom of Information Act Officer, 
Department of Homeland Security, 245 Murray Drive SW., Building 410, 
STOP-0655, Washington, DC 20528.
    When seeking records about yourself from this system of records or 
any other Departmental system of records, your request must conform 
with the Privacy Act regulations set forth in 6 CFR part 5. You must 
first verify your identity, meaning that you must provide your full 
name, current address, and date and place of birth. You must sign your 
request, and your signature must either be notarized or submitted under 
28 U.S.C. 1746, a law that permits statements to be made under penalty 
of perjury as a substitute for notarization. While no specific form is 
required, you may obtain forms for this purpose from the Chief Privacy 
Officer and Chief Freedom of Information Act Office at https://www.dhs.gov/foia or 1-866-431-0486. In addition, you should:
     Explain why you believe the Department would have 
information on you;
     Identify which Component(s) of the Department you believe 
may have the information about you;
     Specify when you believe the records would have been 
created; and
     Provide any other information that will help the FOIA 
staff determine which DHS Component agency may have responsive records.
    If your request is seeking records pertaining to another living 
individual, you must include a statement from that individual 
certifying his/her agreement for you to access his or her records.
    Without the above information, the Component(s) may not be able to 
conduct an effective search, and your request may be denied due to lack 
of specificity or lack of compliance with applicable regulations.

RECORD ACCESS PROCEDURES:
    See ``Notification procedure'' above.

[[Page 19988]]

CONTESTING RECORD PROCEDURES:
    See ``Notification procedure'' above.

RECORD SOURCE CATEGORIES:
    The information contained in this system of records originates in 
connection with customs broker audits and audits of other persons 
engaged in international commerce conducted by the regulatory audit 
staffs. The audits may be supplemented with information furnished by 
the Office of the Chief Counsel or its field offices, Office of 
International Trade--Regulations and Rulings, and the Office of 
Investigations, U.S. Immigration and Customs Enforcement. These audits 
include examination of records pertaining to brokers and importers 
(including their clients), and other persons engaged in international 
trade activities.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    DHS/CBP is not requesting an exemption with respect to information 
maintained in the system as it relates to data submitted by or on 
behalf of a subject of an audit. Information in the system may be 
shared pursuant to the exceptions under the Privacy Act (5 U.S.C. 
552a(b)) and the above routine uses. The Privacy Act requires DHS to 
maintain an accounting of the disclosures made pursuant to all routines 
uses. Disclosing the fact that a law enforcement or intelligence agency 
has sought particular records may affect ongoing law enforcement 
activity. Therefore, pursuant to 5 U.S.C. 552a(k)(2), DHS will claim 
exemption from sec. (c)(3) of the Privacy Act of 1974, as amended, as 
is necessary and appropriate to protect this information.

    Dated: March 22, 2016.
Karen L. Neuman,
Chief Privacy Officer, Department of Homeland Security.
[FR Doc. 2016-07893 Filed 4-5-16; 8:45 am]
 BILLING CODE 9111-14-P