Automated Commercial Environment (ACE); Announcement of National Customs Automation Program Test of the In-Transit Manifest Pilot Program, 24837-24839 [2016-09858]

Download as PDF Federal Register / Vol. 81, No. 81 / Wednesday, April 27, 2016 / Notices asabaliauskas on DSK3SPTVN1PROD with NOTICES amended (5 U.S.C. App.), notice is hereby given of the following meetings. The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy. Name of Committee: Center for Scientific Review Special Emphasis Panel; PAR Panel: Mammalian Models for Translational Research. Date: May 19, 2016. Time: 12:30 p.m. to 6:00 p.m. Agenda: To review and evaluate grant applications. Place: National Institutes of Health, 6701 Rockledge Drive, Bethesda, MD 20892 (Virtual Meeting). Contact Person: Lambratu Rahman Sesay, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 6214, MSC 7804, Bethesda, MD 20892, 301–451– 3493, rahmanl@csr.nih.gov. Name of Committee: Center for Scientific Review Special Emphasis Panel; RFA–PM– 16–003: Precision Medicine Initiative Cohort Program Participant Technologies Center (U24). Date: May 23, 2016. Time: 8:30 a.m. to 5:00 p.m. Agenda: To review and evaluate grant applications. Place: Embassy Suites at the Chevy Chase Pavilion, 4300 Military Road NW., Washington, DC 20015. Contact Person: Wenchi Liang, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 3150, MSC 7770, Bethesda, MD 20892, 301–435– 0681, liangw3@csr.nih.gov. Name of Committee: Emerging Technologies and Training Neurosciences Integrated Review Group; Bioengineering of Neuroscience, Vision and Low Vision Technologies Study Section. Date: May 24–25, 2016. 8:00 a.m. to 5:00 p.m. Agenda: To review and evaluate grant applications. Place: Washington Marriott Georgetown, 1221 22nd Street NW., Washington, DC 20037. Contact Person: Robert C Elliott, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 5190, MSC 7846, Bethesda, MD 20892, 301–435– 3009, elliotro@csr.nih.gov. Name of Committee: Center for Scientific Review Special Emphasis Panel; PAR Panel: Animal Models and Stem Cell-based Therapies for Regenerative Medicine. Date: May 25, 2016. VerDate Sep<11>2014 17:29 Apr 26, 2016 Jkt 238001 Time: 10:00 a.m. to 2:00 p.m. Agenda: To review and evaluate grant applications. Place: National Institutes of Health, 6701 Rockledge Drive, Bethesda, MD 20892 (Virtual Meeting). Contact Person: Jonathan Arias, Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 5170, MSC 7840, Bethesda, MD 20892, 301–435– 2406, ariasj@csr.nih.gov. (Catalogue of Federal Domestic Assistance Program Nos. 93.306, Comparative Medicine; 93.333, Clinical Research, 93.306, 93.333, 93.337, 93.393–93.396, 93.837–93.844, 93.846–93.878, 93.892, 93.893, National Institutes of Health, HHS) Dated: April 21, 2016. David Clary, Program Analyst, Office of Federal Advisory Committee Policy. [FR Doc. 2016–09737 Filed 4–26–16; 8:45 am] BILLING CODE 4140–01–P DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection Automated Commercial Environment (ACE); Announcement of National Customs Automation Program Test of the In-Transit Manifest Pilot Program U.S. Customs and Border Protection, Department of Homeland Security. ACTION: General notice. AGENCY: This document announces that U.S. Customs and Border Protection (CBP) plans to conduct a National Customs Automation Program (NCAP) test relating to truck shipments of commercial goods that transit from a point of origination in Canada through the United States to a point of destination in Canada. Under the NCAP test, CBP will use a new filing code to identify shipments as being part of the In-Transit Manifest Pilot Program in CBP’s Automated Commercial Environmental (ACE) Truck Manifest System. Test participants will submit electronically an in-transit manifest with a relaxed validation for the value data element and they will not have to provide the Harmonized Tariff Schedule (HTS) number. This notice provides a description of the NCAP test and specifies the duration and locations of the test. It also invites public comment on any aspect of the test. DATES: The test will commence no earlier than May 27, 2016 and will run for approximately six months at the following ports: Port Huron, Michigan; Pembina, North Dakota; and Blaine, SUMMARY: PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 24837 Washington. Comments concerning this notice and all aspects of the announced test may be submitted at any time during the test period. ADDRESSES: Written comments concerning program, policy and technical issues should be submitted to Manuel Garza, Director, Manifest and Conveyance Security Division, U.S. Customs and Border Protection, via email at manuel.a.garza@cbp.dhs.gov. SUPPLEMENTARY INFORMATION: I. Background A. CBP Regulations Under CBP regulations, a truck with merchandise that transits the United States during a trip that originates and terminates in Canada must present a paper manifest form, the United StatesCanada Transit Manifest, known as Customs Form 7512–B Canada 81⁄2, to CBP when it crosses the border at the U.S. ports of arrival and exit. The procedures for these in-transit shipments are addressed in 19 CFR 123.42 (Truck shipments transiting the United States). Among other things, the regulation provides that trucks transiting the United States must be sealed at the U.S. port of arrival. The regulation also provides that merchandise transported in trucks shall be forwarded in accordance with the general provisions for transportation inbond (19 CFR 18.1–18.8). In addition to the requirement to present a paper manifest when a truck crosses the border, CBP also requires electronic filing of certain information regarding the cargo carried by a truck in advance of the truck’s arrival at the border. Under 19 CFR 123.92(a), with a few exceptions, for any inbound truck required to report its arrival under 19 CFR 123.1(b) that will have commercial cargo aboard, CBP must electronically receive certain information regarding the cargo to a CBP-approved EDI system 1 no later than either 30 minutes 2 or one hour prior to the 1 In a notice published in the Federal Register on October 27, 2006 (71 FR 62922), CBP designated the ACE Truck Manifest System as the approved EDI for the transmission of required data and announced that the requirement to transmit advance electronic cargo information through ACE would be phased in by groups of ports-of-entry. Through a series of Federal Register notices published from the October 27, 2006 notice and concluding with a November 13, 2007 notice (72 FR 63805), CBP mandated the use of ACE for the transmission of advance electronic truck cargo information at all land border ports-of-entry. 2 As explained in the preamble of the final rule implementing section 123.92, published in the Federal Register on December 5, 2003 (68 FR 68140), the 30 minute timeframe applies to truck carriers arriving with shipments qualified for E:\FR\FM\27APN1.SGM Continued 27APN1 24838 Federal Register / Vol. 81, No. 81 / Wednesday, April 27, 2016 / Notices carrier’s reaching the first port of arrival in the United States. This includes cargo arriving by truck for transportation through the United States from one point to another in the same foreign country. Truck carriers have been providing up to 69 data elements (including 1 optional data element) as part of their eManifest in the ACE Truck Manifest System, as a result of prior NCAP tests performed in conjunction with the Federal Motor Carrier Safety Administration. See 69 FR 55167 (September 13, 2004) and 70 FR 13514 (March 21, 2005) and related test notices identified therein. For the purposes of this test, the same data elements will be required, except as otherwise provided for in this notice. The ACE Truck Manifest System enables truck carriers with merchandise transiting the United States from point to point in Canada to file an e-Manifest and enter the merchandise as a Transportation & Exportation (T&E) in-bond entry. asabaliauskas on DSK3SPTVN1PROD with NOTICES B. Beyond the Border Initiative On February 4, 2011, President Obama and Prime Minister Harper announced the United States-Canada joint declaration, Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness (‘‘Beyond the Border’’). Beyond the Border articulates a shared approach to security in which both countries work together to address threats within, at, and away from the U.S.-Canada border, while expediting lawful trade and travel. On December 7, 2011, President Obama and Prime Minister Harper released the Beyond the Border Action Plan, which sets out joint priorities and specific initiatives for achieving this vision. The Beyond the Border Action Plan proposed a number of pilot projects to test new approaches to facilitating the secure movement of goods, including a U.S. pilot that would involve ‘‘the testing of a new in-bond module for processing in-transit/inbond (Canada-United States-Canada) cargo traveling by truck.’’ See Beyond the Border Action Plan (December 7, 2011). CBP is conducting this NCAP test to assess a new automated process for in-transit shipments in the ACE Truck Manifest System. clearance under the FAST (Free and Secure Trade) Program. The FAST program is a cooperative effort between CBP and the governments of Canada and Mexico which provides expedited border processing for known, low-risk commercial drivers at the U.S.-Canada and U.S.-Mexico borders. VerDate Sep<11>2014 17:29 Apr 26, 2016 Jkt 238001 II. Authorization for the NCAP Test The National Customs Automation Program (NCAP) was established in Subtitle B of Title VI—Customs Modernization, in the North American Free Trade Agreement Implementation Act (Pub. L. 103–182, 107 Stat. 2057, 2170, December 8, 1993) (Customs Modernization Act). See 19 U.S.C. 1411. The Customs Modernization Act provides the Commissioner of CBP with authority to conduct limited test programs or procedures designed to evaluate planned components of the NCAP. The NCAP test of In-Transit Manifest Pilot Program (referred to hereafter as ‘‘the NCAP test’’ or ‘‘the test’’) is authorized pursuant to 19 CFR 101.9(b) which provides for the testing of NCAP programs or procedures. See T.D. 95–21. III. In-Transit Manifest Pilot Program This notice announces CBP’s InTransit Manifest Pilot Program to test a new electronic in-transit manifest in the ACE Truck Manifest System. The details are provided below. A. Description of Test The NCAP test applies to the transportation of commercial cargo from a point of origination in Canada through the United States to a point of destination in Canada (CAN-US-CAN in-transit shipments). These shipments are essentially domestic Canadian shipments that transit through the United States. Under the test, participating truck carriers transporting cargo in CAN-US-CAN in-transit shipments will be required to submit an e-Manifest in the ACE Truck Manifest System no later than 30 minutes 3 prior to arrival in the United States under a new filing type code for these in-transit shipments. Participating carriers must submit an e-Manifest to CBP using the ANSI X12 format or the ACE Secure Data Portal. Participating carriers will not be required to submit the paper manifest form, Customs Form 7512–B Canada 81⁄2, that is required under 19 CFR 123.42. Participating carriers are still required to submit the paper manifest form required under Canadian law to Canadian ports of entry. Currently, CAN-US-CAN in-transit shipments are filed under shipment release type 62 as Transportation & Exportation (T&E) in-bond entries, which includes a complete ANSI X12 3 Thirty minutes is the time-frame specified in 19 CFR 123.92(a) that applies to truck carriers using FAST commercial drivers. This is the applicable time-frame for participating truck carriers because as a condition of participation in this test, each carrier must use commercial drivers cleared under the FAST program. See part III.B of this notice. PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 manifest (referred to as a 309 manifest) with the following information: Trip, shipment (including the value of the merchandise and the Harmonized Tariff Schedule (HTS) number), conveyance, equipment, crew and passenger data. Under the test, a new shipment release type 70 for CAN-US-CAN in-transit shipments will be used by participating carriers. Under shipment release type 70, participating carriers will be required to submit the same set of data elements as a 309 manifest but with a relaxed validation for the value data element. They will not be required to provide the HTS number. For the value data element, CBP will accept a value amount of $2 per pound when the actual value is not available. With regard to the HTS number, an eManifest filed under shipment release type 62 requires an HTS number to the 6-digit level under which the cargo will be classified and a description of the cargo. For an e-Manifest filed by test participants under shipment release type 70, only a precise description of the cargo will be required. Trade associations for Canadian trucking companies have identified these two data elements—value and the HTS number—as being the most problematic for CAN-US-CAN in-transit shipments. Canadian truck carriers rarely know the value and/or the exact HTS classification number for such intransit cargo and in practice often file incorrect data when filing an e-Manifest under shipment release type 62. By relaxing the validation for the value data and removing the HTS number requirement, CBP intends to reduce the reporting burden on the industry and improve trade efficiencies between Canada and the United States. The in-transit manifest will be processed and retained in ACE in the same manner as a type 62 manifest. Upon arrival in the United States, CBP will generate a ‘‘transit movement authorized’’ message (referred to as a 350 message) that will be sent to the carrier. The shipment will then be able to transit the United States and proceed to the United States port of export as an in-transit entry. When the shipment arrives at the United States port of export, the carrier will report the arrival of the shipment to CBP via an EDI message or through the carrier’s ACE portal account. CBP will issue another 350 message to the carrier notifying the carrier that the shipment has entered Canada and that the in-transit entry is closed. Requiring participating carriers to file an in-transit manifest electronically under new shipment release type 70, along with relaxing the validation for E:\FR\FM\27APN1.SGM 27APN1 Federal Register / Vol. 81, No. 81 / Wednesday, April 27, 2016 / Notices the value data element and eliminating the HTS number requirement, will facilitate the in-transit manifest process for both the trade and CBP. Canadian carriers will be able to route certain domestic shipments through the United States with greater efficiency and CBP will benefit from an entirely electronic in-transit manifest. B. Test Participants and Conditions of Participation Participation in the In-Transit Manifest Pilot Program is currently limited to nine Canadian truck carriers that have been selected by CBP in consultation with the Canadian Border Services Agency (CBSA). Each participating carrier is a bonded carrier and a certified member of the CustomsTrade Partnership Against Terrorism (C–TPAT), a voluntary supply chain security program led by CBP that is focused on improving the security of private companies’ supply chains with respect to terrorism. As a condition of participation, each carrier must use commercial drivers cleared under the FAST program. FAST driver identification provides CBP with a full set of identifying information regarding the driver, including the driver’s name, date of birth, gender, citizenship, and address. Another condition of participation in this NCAP test is that no passengers are permitted on the Canadian trucks transiting the United States, with the exception of additional drivers also cleared under the FAST program. As provided in Section VI, participants are also required to take part in an evaluation of the test. asabaliauskas on DSK3SPTVN1PROD with NOTICES C. Test Duration and Locations The NCAP test will be conducted for approximately six months from its start at the following ports of entry: Port Huron, Michigan; Pembina, North Dakota; and Blaine, Washington. Any future expansion of this NCAP test to additional ports and/or extension of the time period will be announced on CBP’s Web site at www.cbp.gov. Participants will also be notified of any expansion. IV. Regulatory Provisions Affected Regulations in 19 CFR parts 18 and 123 that conflict with the terms and conditions of the NCAP test are suspended and overridden to the extent of the conflict for the duration of the test for test participants and only to the extent of their participation in this test. V. Misconduct If a test participant fails to abide by the rules, procedures, or term and conditions of this and all other applicable Federal Register notices, VerDate Sep<11>2014 17:29 Apr 26, 2016 Jkt 238001 fails to exercise reasonable care in the execution of participant obligations, or otherwise fails to comply with all applicable laws and regulations, then the participant may be suspended from participation in this test and/or subjected to penalties, liquidated damages, and/or other administrative or judicial sanction. Additionally, CBP has the right to suspend a test participant based on a determination that an unacceptable compliance risk exists. Any decision proposing suspension may be appealed in writing to the Assistant Commissioner (Office of Field Operations) within 15 days of the decision date. Such proposed suspension will apprise the participant of the facts or conduct warranting suspension. Should the participant appeal the notice of proposed suspension, the participant should address the facts or conduct charges contained in the notice and state how he has or will achieve compliance. However, in the case of willfulness or where public health interests are concerned, the suspension may be effective immediately. VI. Test Evaluation Criteria All interested parties are invited to comment on any aspect of this test at any time. To ensure adequate feedback, participants are required to take part in an evaluation of this test. CBP needs comments and feedback on all aspects of this test, including the design, conduct and implementation of the test in order to determine whether to modify, alter, expand, limit, continue, end or implement this program by regulation. The final results of the evaluation will be published in the Federal Register and the Customs Bulletin as required by 19 CFR 101.9. VII. Paperwork Reduction Act As noted above, CBP is accepting only nine participants in the NCAP test. This means that fewer than ten persons will be subject to any information collections under the NCAP test. Accordingly, collections of information encompassed within this notice are exempted from the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3502 and 3507). Dated: April 22, 2016. Todd Owen, Assistant Commissioner, Office of Field Operations. [FR Doc. 2016–09858 Filed 4–26–16; 8:45 am] BILLING CODE 9111–14–P PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 24839 DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection DEPARTMENT OF AGRICULTURE Forest Service Notice of intent to prepare a Joint Environmental Impact Statement and To Conduct Public Scoping U.S. Customs and Border Protection, Department of Homeland Security and Forest Service, USDA. ACTION: Notice of intent to prepare a Joint Environmental Impact Statement concerning the repair and maintenance of Bog Creek Road and closure of certain roads within the Blue-Grass Bear Management Unit in the Selkirk Mountains in Boundary County, Idaho; request for comments; and notice of public scoping. AGENCY: This notice announces that U.S. Customs and Border Protection (CBP) and the U.S. Forest Service (Forest Service) Idaho Panhandle National Forests (IPNF) (collectively the ‘‘Agencies’’) intend to prepare a joint Environmental Impact Statement (EIS) to identify and assess potential impacts upon the environment of: Repairing and maintaining an approximately 5.6-mile section of the existing Bog Creek Road, which is located in the Selkirk Mountains in Boundary County, Idaho, within approximately two miles of the Canadian border, on land within the Blue-Grass Bear Management Unit (BMU) that is managed by the IPNF; and closing for motorized use additional roads within the Blue-Grass BMU to comply with the IPNF Forest Plan Amendments for Motorized Access Management within the Selkirk and Cabinet-Yaak Grizzly Bear Recovery Zones (Access Amendment) and reduce road density in the Blue-Grass BMU. This notice initiates the public scoping process for the preparation of the EIS. The purpose of the public scoping process is to solicit public comments regarding the potential environmental impacts that may be addressed. This notice commences the public scoping period for which CBP and IPNF are requesting written comments. This process is being conducted pursuant to the National Environmental Policy Act (NEPA), the Council on Environmental Quality Regulations for Implementing the NEPA (40 CFR parts 1500–1508), and CBP and Forest Service NEPA guidelines. Additionally, pursuant to Section 106 of the National Historic Preservation Act, the public scoping SUMMARY: E:\FR\FM\27APN1.SGM 27APN1

Agencies

[Federal Register Volume 81, Number 81 (Wednesday, April 27, 2016)]
[Notices]
[Pages 24837-24839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09858]


=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Automated Commercial Environment (ACE); Announcement of National 
Customs Automation Program Test of the In-Transit Manifest Pilot 
Program

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

ACTION: General notice.

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

SUMMARY: This document announces that U.S. Customs and Border 
Protection (CBP) plans to conduct a National Customs Automation Program 
(NCAP) test relating to truck shipments of commercial goods that 
transit from a point of origination in Canada through the United States 
to a point of destination in Canada. Under the NCAP test, CBP will use 
a new filing code to identify shipments as being part of the In-Transit 
Manifest Pilot Program in CBP's Automated Commercial Environmental 
(ACE) Truck Manifest System. Test participants will submit 
electronically an in-transit manifest with a relaxed validation for the 
value data element and they will not have to provide the Harmonized 
Tariff Schedule (HTS) number. This notice provides a description of the 
NCAP test and specifies the duration and locations of the test. It also 
invites public comment on any aspect of the test.

DATES: The test will commence no earlier than May 27, 2016 and will run 
for approximately six months at the following ports: Port Huron, 
Michigan; Pembina, North Dakota; and Blaine, Washington. Comments 
concerning this notice and all aspects of the announced test may be 
submitted at any time during the test period.

ADDRESSES: Written comments concerning program, policy and technical 
issues should be submitted to Manuel Garza, Director, Manifest and 
Conveyance Security Division, U.S. Customs and Border Protection, via 
email at manuel.a.garza@cbp.dhs.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

A. CBP Regulations

    Under CBP regulations, a truck with merchandise that transits the 
United States during a trip that originates and terminates in Canada 
must present a paper manifest form, the United States-Canada Transit 
Manifest, known as Customs Form 7512-B Canada 8\1/2\, to CBP when it 
crosses the border at the U.S. ports of arrival and exit. The 
procedures for these in-transit shipments are addressed in 19 CFR 
123.42 (Truck shipments transiting the United States). Among other 
things, the regulation provides that trucks transiting the United 
States must be sealed at the U.S. port of arrival. The regulation also 
provides that merchandise transported in trucks shall be forwarded in 
accordance with the general provisions for transportation in-bond (19 
CFR 18.1-18.8).
    In addition to the requirement to present a paper manifest when a 
truck crosses the border, CBP also requires electronic filing of 
certain information regarding the cargo carried by a truck in advance 
of the truck's arrival at the border. Under 19 CFR 123.92(a), with a 
few exceptions, for any inbound truck required to report its arrival 
under 19 CFR 123.1(b) that will have commercial cargo aboard, CBP must 
electronically receive certain information regarding the cargo to a 
CBP-approved EDI system \1\ no later than either 30 minutes \2\ or one 
hour prior to the

[[Page 24838]]

carrier's reaching the first port of arrival in the United States. This 
includes cargo arriving by truck for transportation through the United 
States from one point to another in the same foreign country.
---------------------------------------------------------------------------

    \1\ In a notice published in the Federal Register on October 27, 
2006 (71 FR 62922), CBP designated the ACE Truck Manifest System as 
the approved EDI for the transmission of required data and announced 
that the requirement to transmit advance electronic cargo 
information through ACE would be phased in by groups of ports-of-
entry. Through a series of Federal Register notices published from 
the October 27, 2006 notice and concluding with a November 13, 2007 
notice (72 FR 63805), CBP mandated the use of ACE for the 
transmission of advance electronic truck cargo information at all 
land border ports-of-entry.
    \2\ As explained in the preamble of the final rule implementing 
section 123.92, published in the Federal Register on December 5, 
2003 (68 FR 68140), the 30 minute timeframe applies to truck 
carriers arriving with shipments qualified for clearance under the 
FAST (Free and Secure Trade) Program. The FAST program is a 
cooperative effort between CBP and the governments of Canada and 
Mexico which provides expedited border processing for known, low-
risk commercial drivers at the U.S.-Canada and U.S.-Mexico borders.
---------------------------------------------------------------------------

    Truck carriers have been providing up to 69 data elements 
(including 1 optional data element) as part of their e-Manifest in the 
ACE Truck Manifest System, as a result of prior NCAP tests performed in 
conjunction with the Federal Motor Carrier Safety Administration. See 
69 FR 55167 (September 13, 2004) and 70 FR 13514 (March 21, 2005) and 
related test notices identified therein. For the purposes of this test, 
the same data elements will be required, except as otherwise provided 
for in this notice. The ACE Truck Manifest System enables truck 
carriers with merchandise transiting the United States from point to 
point in Canada to file an e-Manifest and enter the merchandise as a 
Transportation & Exportation (T&E) in-bond entry.

B. Beyond the Border Initiative

    On February 4, 2011, President Obama and Prime Minister Harper 
announced the United States-Canada joint declaration, Beyond the 
Border: A Shared Vision for Perimeter Security and Economic 
Competitiveness (``Beyond the Border''). Beyond the Border articulates 
a shared approach to security in which both countries work together to 
address threats within, at, and away from the U.S.-Canada border, while 
expediting lawful trade and travel.
    On December 7, 2011, President Obama and Prime Minister Harper 
released the Beyond the Border Action Plan, which sets out joint 
priorities and specific initiatives for achieving this vision. The 
Beyond the Border Action Plan proposed a number of pilot projects to 
test new approaches to facilitating the secure movement of goods, 
including a U.S. pilot that would involve ``the testing of a new in-
bond module for processing in-transit/in-bond (Canada-United States-
Canada) cargo traveling by truck.'' See Beyond the Border Action Plan 
(December 7, 2011). CBP is conducting this NCAP test to assess a new 
automated process for in-transit shipments in the ACE Truck Manifest 
System.

II. Authorization for the NCAP Test

    The National Customs Automation Program (NCAP) was established in 
Subtitle B of Title VI--Customs Modernization, in the North American 
Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 
2057, 2170, December 8, 1993) (Customs Modernization Act). See 19 
U.S.C. 1411. The Customs Modernization Act provides the Commissioner of 
CBP with authority to conduct limited test programs or procedures 
designed to evaluate planned components of the NCAP. The NCAP test of 
In-Transit Manifest Pilot Program (referred to hereafter as ``the NCAP 
test'' or ``the test'') is authorized pursuant to 19 CFR 101.9(b) which 
provides for the testing of NCAP programs or procedures. See T.D. 95-
21.

III. In-Transit Manifest Pilot Program

    This notice announces CBP's In-Transit Manifest Pilot Program to 
test a new electronic in-transit manifest in the ACE Truck Manifest 
System. The details are provided below.

A. Description of Test

    The NCAP test applies to the transportation of commercial cargo 
from a point of origination in Canada through the United States to a 
point of destination in Canada (CAN-US-CAN in-transit shipments). These 
shipments are essentially domestic Canadian shipments that transit 
through the United States. Under the test, participating truck carriers 
transporting cargo in CAN-US-CAN in-transit shipments will be required 
to submit an e-Manifest in the ACE Truck Manifest System no later than 
30 minutes \3\ prior to arrival in the United States under a new filing 
type code for these in-transit shipments. Participating carriers must 
submit an e-Manifest to CBP using the ANSI X12 format or the ACE Secure 
Data Portal. Participating carriers will not be required to submit the 
paper manifest form, Customs Form 7512-B Canada 8\1/2\, that is 
required under 19 CFR 123.42. Participating carriers are still required 
to submit the paper manifest form required under Canadian law to 
Canadian ports of entry.
---------------------------------------------------------------------------

    \3\ Thirty minutes is the time-frame specified in 19 CFR 
123.92(a) that applies to truck carriers using FAST commercial 
drivers. This is the applicable time-frame for participating truck 
carriers because as a condition of participation in this test, each 
carrier must use commercial drivers cleared under the FAST program. 
See part III.B of this notice.
---------------------------------------------------------------------------

    Currently, CAN-US-CAN in-transit shipments are filed under shipment 
release type 62 as Transportation & Exportation (T&E) in-bond entries, 
which includes a complete ANSI X12 manifest (referred to as a 309 
manifest) with the following information: Trip, shipment (including the 
value of the merchandise and the Harmonized Tariff Schedule (HTS) 
number), conveyance, equipment, crew and passenger data. Under the 
test, a new shipment release type 70 for CAN-US-CAN in-transit 
shipments will be used by participating carriers. Under shipment 
release type 70, participating carriers will be required to submit the 
same set of data elements as a 309 manifest but with a relaxed 
validation for the value data element. They will not be required to 
provide the HTS number.
    For the value data element, CBP will accept a value amount of $2 
per pound when the actual value is not available. With regard to the 
HTS number, an e-Manifest filed under shipment release type 62 requires 
an HTS number to the 6-digit level under which the cargo will be 
classified and a description of the cargo. For an e-Manifest filed by 
test participants under shipment release type 70, only a precise 
description of the cargo will be required.
    Trade associations for Canadian trucking companies have identified 
these two data elements--value and the HTS number--as being the most 
problematic for CAN-US-CAN in-transit shipments. Canadian truck 
carriers rarely know the value and/or the exact HTS classification 
number for such in-transit cargo and in practice often file incorrect 
data when filing an e-Manifest under shipment release type 62. By 
relaxing the validation for the value data and removing the HTS number 
requirement, CBP intends to reduce the reporting burden on the industry 
and improve trade efficiencies between Canada and the United States.
    The in-transit manifest will be processed and retained in ACE in 
the same manner as a type 62 manifest. Upon arrival in the United 
States, CBP will generate a ``transit movement authorized'' message 
(referred to as a 350 message) that will be sent to the carrier. The 
shipment will then be able to transit the United States and proceed to 
the United States port of export as an in-transit entry. When the 
shipment arrives at the United States port of export, the carrier will 
report the arrival of the shipment to CBP via an EDI message or through 
the carrier's ACE portal account. CBP will issue another 350 message to 
the carrier notifying the carrier that the shipment has entered Canada 
and that the in-transit entry is closed.
    Requiring participating carriers to file an in-transit manifest 
electronically under new shipment release type 70, along with relaxing 
the validation for

[[Page 24839]]

the value data element and eliminating the HTS number requirement, will 
facilitate the in-transit manifest process for both the trade and CBP. 
Canadian carriers will be able to route certain domestic shipments 
through the United States with greater efficiency and CBP will benefit 
from an entirely electronic in-transit manifest.

B. Test Participants and Conditions of Participation

    Participation in the In-Transit Manifest Pilot Program is currently 
limited to nine Canadian truck carriers that have been selected by CBP 
in consultation with the Canadian Border Services Agency (CBSA). Each 
participating carrier is a bonded carrier and a certified member of the 
Customs-Trade Partnership Against Terrorism (C-TPAT), a voluntary 
supply chain security program led by CBP that is focused on improving 
the security of private companies' supply chains with respect to 
terrorism. As a condition of participation, each carrier must use 
commercial drivers cleared under the FAST program. FAST driver 
identification provides CBP with a full set of identifying information 
regarding the driver, including the driver's name, date of birth, 
gender, citizenship, and address. Another condition of participation in 
this NCAP test is that no passengers are permitted on the Canadian 
trucks transiting the United States, with the exception of additional 
drivers also cleared under the FAST program. As provided in Section VI, 
participants are also required to take part in an evaluation of the 
test.

C. Test Duration and Locations

    The NCAP test will be conducted for approximately six months from 
its start at the following ports of entry: Port Huron, Michigan; 
Pembina, North Dakota; and Blaine, Washington. Any future expansion of 
this NCAP test to additional ports and/or extension of the time period 
will be announced on CBP's Web site at www.cbp.gov. Participants will 
also be notified of any expansion.

IV. Regulatory Provisions Affected

    Regulations in 19 CFR parts 18 and 123 that conflict with the terms 
and conditions of the NCAP test are suspended and overridden to the 
extent of the conflict for the duration of the test for test 
participants and only to the extent of their participation in this 
test.

V. Misconduct

    If a test participant fails to abide by the rules, procedures, or 
term and conditions of this and all other applicable Federal Register 
notices, fails to exercise reasonable care in the execution of 
participant obligations, or otherwise fails to comply with all 
applicable laws and regulations, then the participant may be suspended 
from participation in this test and/or subjected to penalties, 
liquidated damages, and/or other administrative or judicial sanction. 
Additionally, CBP has the right to suspend a test participant based on 
a determination that an unacceptable compliance risk exists. Any 
decision proposing suspension may be appealed in writing to the 
Assistant Commissioner (Office of Field Operations) within 15 days of 
the decision date. Such proposed suspension will apprise the 
participant of the facts or conduct warranting suspension. Should the 
participant appeal the notice of proposed suspension, the participant 
should address the facts or conduct charges contained in the notice and 
state how he has or will achieve compliance. However, in the case of 
willfulness or where public health interests are concerned, the 
suspension may be effective immediately.

VI. Test Evaluation Criteria

    All interested parties are invited to comment on any aspect of this 
test at any time. To ensure adequate feedback, participants are 
required to take part in an evaluation of this test. CBP needs comments 
and feedback on all aspects of this test, including the design, conduct 
and implementation of the test in order to determine whether to modify, 
alter, expand, limit, continue, end or implement this program by 
regulation. The final results of the evaluation will be published in 
the Federal Register and the Customs Bulletin as required by 19 CFR 
101.9.

VII. Paperwork Reduction Act

    As noted above, CBP is accepting only nine participants in the NCAP 
test. This means that fewer than ten persons will be subject to any 
information collections under the NCAP test. Accordingly, collections 
of information encompassed within this notice are exempted from the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3502 and 
3507).

    Dated: April 22, 2016.
Todd Owen,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 2016-09858 Filed 4-26-16; 8:45 am]
 BILLING CODE 9111-14-P