Modification of the National Customs Automation Program (NCAP) Test Regarding Reconciliation and Transition of the Test From the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE), 2645-2646 [2018-00802]

Download as PDF Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices III. ACE as the Sole CBP-Authorized EDI System for the Processing of Electronic Filings of NAFTA Drawback and Non-TFTEA-Drawback This notice announces that, beginning February 24, 2018, ACE will become the sole CBP-authorized EDI system for electronic filings of NAFTA drawback (19 CFR part 181) and non-TFTEA drawback (19 CFR part 191), and ACS will no longer be a CBP-authorized EDI system for purposes of processing these electronic filings. A separate Federal Register document will be published containing proposed regulations regarding TFTEA-Drawback claims, which are those claims filed under 19 U.S.C. 1313, as amended by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) (Pub. L. 114–125, 130 Stat. 122, February 24, 2016). The electronic filings referred to in this document, i.e., non-TFTEA drawback claims, are limited to drawback claims filed in compliance with the regulations in parts 181 and 191 and under 19 U.S.C. 1313, as it was in effect prior to the TFTEA amendments. IV. Deployment of New Filing Code for Drawback in ACE CBP announces the deployment of a new ACE filing code 47 for drawback as of February 24, 2018, which will replace the following six drawback codes previously filed in ACS: • 41—Direct Identification Manufacturing Drawback • 42—Direct Identification Unused Merchandise Drawback • 43—Rejected Merchandise Drawback • 44—Substitution Manufacturing Drawback • 45—Substitution Unused Merchandise Drawback • 46—Other Drawback V. Entry Types With Low Shipment Volume sradovich on DSK3GMQ082PROD with NOTICES This notice announces that the following entry types will not be automated in either ACS or ACE due to low shipment volume: • • • • • • • • • 04—Appraisement 05—Vessel—Repair 24—Trade Fair 25—Permanent Exhibition 26—Warehouse—Foreign Trade Zone (FTZ) (Admission) 33—Aircraft and Vessel Supply (For Immediate Exportation) 64—Barge Movement 65—Permit To Proceed 66—Baggage VerDate Sep<11>2014 18:27 Jan 17, 2018 Jkt 244001 Dated: January 12, 2018. Kevin K. McAleenan, Acting Commissioner, U.S. Customs and Border Protection. [FR Doc. 2018–00803 Filed 1–17–18; 8:45 am] BILLING CODE 9111–14–P DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection Modification of the National Customs Automation Program (NCAP) Test Regarding Reconciliation and Transition of the Test From the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE) U.S. Customs and Border Protection, Department of Homeland Security. ACTION: General notice. AGENCY: This document announces that certain previously announced modifications to the National Customs Automation Program (NCAP) test regarding reconciliation will become operational, and that the test program will transition from the Automated Commercial System (ACS) to the Automated Commercial Environment (ACE). DATES: As of February 24, 2018, the modifications to the reconciliation test will become operational. As of the same date, the test will transition into ACE, and ACS will be decommissioned for the filing of reconciliation entries. ADDRESSES: Comments concerning this test program may be submitted via email, with a subject line identifier reading, ‘‘Comment on Reconciliation test’’ to OFO-RECONFOLDER@ cbp.dhs.gov. FOR FURTHER INFORMATION CONTACT: Randy Mitchell, Commercial Operations and Entry Division, Trade Policy and Programs, Office of Trade at (202) 863– 6532 or RANDY.MITCHELL@ CBP.DHS.GOV. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background A. Reconciliation Test Program Title VI of the North American Free Trade Agreement (NAFTA) Implementation Act (Pub. L. 103–182, 107 Stat. 2057, 2170, December 8, 1993), commonly known as the Customs Modernization Act or Mod Act, amended the Tariff Act of 1930 and related laws, in part, to increase voluntary compliance with customs laws and improvements to customs PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 2645 enforcement. Subtitle B of Title VI established the National Customs Automation Program (NCAP) which is an automated and electronic system for processing commercial importations, and includes the testing of existing and planned components. (19 U.S.C. 1411). Section 637 of the Mod Act amended Section 484 of the Tariff Act of 1930 to establish a new section (b), entitled ‘‘Reconciliation’’, a planned component of the NCAP. (19 U.S.C. 1484(b), 19 U.S.C. 1411(a)(2)(C)). Reconciliation is the process that allows an importer, at the time an entry summary is filed, to identify indeterminable information (other than that affecting admissibility) to U.S. Customs and Border Protection (CBP) and to provide that outstanding information at a later date. The importer identifies the outstanding information by means of an electronic ‘‘flag’’ which is placed on the entry summary at the time the entry summary is filed and payment (applicable duty, taxes, and fees) is made. Section 101.9(b) of Title 19 of the Code of Federal Regulations (19 CFR 101.9(b)) provides for the testing of NCAP components. See T.D. 95–21, 60 FR 14211 (March 16, 1995). The reconciliation test was established pursuant to this regulation, and is currently being tested in the Automated Commercial System (ACS). CBP announced and explained the test in a general notice published in the Federal Register (63 FR 6257) on February 6, 1998. Clarifications and operational changes were announced in subsequent Federal Register notices: 63 FR 44303 (August 18, 1998); 64 FR 39187 (July 21, 1999); 64 FR 73121 (December 29, 1999); 66 FR 14619 (March 13, 2001); 67 FR 61200 (September 27, 2002) (with a correction document published at 67 FR 68238 (November 8, 2002)); 69 FR 53730 (September 2, 2004); 70 FR 1730 (January 10, 2005); 70 FR 46882 (August 11, 2005); 71 FR 37596 (June 30, 2006); 78 FR 27984 (May 13, 2013); and 79 FR 34334 (June 16, 2014). On September 13, 2000, CBP extended the test indefinitely in a notice published in the Federal Register (65 FR 55326). B. Transition to the Automated Commercial Environment The Security and Accountability for Every (SAFE) Port Act of 2006 (Pub. L. 109–347, 120 Stat. 1884) modified the Mod Act and added subsection (d) to 19 U.S.C. 1411. This subsection established the International Trade Data System (ITDS) which allows for the collection and distribution of standard import and export data required by CBP through a single portal system. The Automated E:\FR\FM\18JAN1.SGM 18JAN1 2646 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices sradovich on DSK3GMQ082PROD with NOTICES Commercial Environment (ACE), the ‘‘single window,’’ 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 all of its communities of interest. The ability to meet these objectives depends on successfully modernizing CBP’s business functions and the information technology that supports those functions. Over the last several years, CBP has tested ACE and provided significant public outreach to ensure that the trade community is fully aware of the transition from ACS to ACE. On October 13, 2015, CBP published an Interim Final Rule in the Federal Register (80 FR 61278) that designated ACE as a CBP-authorized EDI system, to be effective November 1, 2015. In the Interim Final Rule, CBP stated that ACS would be phased out and anticipated that ACS would no longer be supported for entry and entry summary filing. Filers were encouraged to adjust their business practices so that they would be prepared when ACS was decommissioned. CBP has developed a staggered transition strategy for decommissioning ACS to give the trade additional time to adjust their business practices. The phases of the transition were announced in several Federal Register notices. See 81 FR 10264 (February 29, 2016); 81 FR 30320 (May 16, 2016); 81 FR 32339 (May 23, 2016); 82 FR 38924 (August 16, 2017); and 82 FR 51852 (November 8, 2017). This notice announces a further transition as CBP is transitioning the reconciliation test from ACS to ACE. C. Modifications of the Reconciliation Test On December 12, 2016, CBP published a notice in the Federal Register (81 FR 89486) announcing modifications to the reconciliation test and the transition of the test from ACS to ACE, effective January 14, 2017. On January 17, 2017, CBP published a notice in the Federal Register (82 FR 4901) announcing that the effective date for the test modifications and transition would be delayed indefinitely. Then, on June 8, 2017, CBP published a notice in the Federal Register (82 FR 26699) announcing that the modifications to the test and the transition would be effective on July 8, 2017. Subsequently, on June 30, 2017, CBP published a notice in the Federal Register (82 FR 29910) announcing that the effective VerDate Sep<11>2014 18:27 Jan 17, 2018 Jkt 244001 date for the modifications to the reconciliation test and for mandatory filing of reconciliation entries in ACE had been delayed until further notice. II. Announcement of Reconciliation Test Transitioning Into ACE and Modifications to Test Becoming Operational This notice announces that, beginning February 24, 2018, all reconciliation entries must be filed in ACE regardless of whether the underlying entry was filed in ACS or ACE and regardless of whether it is a replacement, substitution or follow-up to a reconciliation entry originally filed in ACS, and ACS is decommissioned for the filing of such entries. In addition, as of February 24, 2018, the test modifications announced in the December 12, 2016 notice will become operational. Dated: January 12, 2018. Brenda B. Smith, Executive Assistant Commissioner, Office of Trade. [FR Doc. 2018–00802 Filed 1–17–18; 8:45 am] BILLING CODE 9111–14–P DEPARTMENT OF HOMELAND SECURITY [Docket No. DHS–2011–0108] RIN 1601–ZA11 Identification of Foreign Countries Whose Nationals Are Eligible To Participate in the H–2A and H–2B Nonimmigrant Worker Programs Office of the Secretary, DHS. Notice. AGENCY: ACTION: Under Department of Homeland Security (DHS) regulations, U.S. Citizenship and Immigration Services (USCIS) may generally only approve petitions for H–2A and H–2B nonimmigrant status for nationals of countries that the Secretary of Homeland Security, with the concurrence of the Secretary of State, has designated by notice published in the Federal Register. That notice must be renewed each year. This notice announces that the Secretary of Homeland Security, in consultation with the Secretary of State, is identifying 83 countries whose nationals are eligible to participate in the H–2A program and 82 countries whose nationals are eligible to participate in the H–2B program for the coming year. DATES: Effective Date: This notice is effective January 18, 2018, and shall be without effect after January 18, 2019. SUMMARY: PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 Eric B. Johnson, Office of Policy, Department of Homeland Security, Washington, DC 20528, (202) 282–8652. SUPPLEMENTARY INFORMATION: FOR FURTHER INFORMATION CONTACT: Background Generally, USCIS may approve H–2A and H–2B petitions for nationals of only those countries 1 that the Secretary of Homeland Security, with the concurrence of the Secretary of State, has designated as participating countries. Such designation must be published as a notice in the Federal Register and expires after one year. USCIS, however, may allow a national from a country not on the list to be named as a beneficiary of an H–2A or H–2B petition based on a determination that such participation is in the U.S. interest. See 8 CFR 214.2(h)(5)(i)(F) and 8 CFR 214.2(h)(6)(i)(E). In designating countries to include on the list, the Secretary of Homeland Security, with the concurrence of the Secretary of State, will take into account factors including, but not limited to: (1) The country’s cooperation with respect to issuance of travel documents for citizens, subjects, nationals, and residents of that country who are subject to a final order of removal; (2) the number of final and unexecuted orders of removal against citizens, subjects, nationals, and residents of that country; (3) the number of orders of removal executed against citizens, subjects, nationals, and residents of that country; and (4) such other factors as may serve the U.S. interest. See 8 CFR 214.2(h)(5)(i)(F)(1)(i) and 8 CFR 214.2(h)(6)(i)(E)(1). Examples of factors serving the U.S. interest that could result in the non-inclusion of a country or the removal of a country from the list include, but are not limited to, fraud, abuse, overstay rates, and noncompliance with the terms and conditions of the H–2 visa programs by nationals of that country. In December 2008, DHS published in the Federal Register two notices, ‘‘Identification of Foreign Countries 1 With respect to all references to ‘‘country’’ or ‘‘countries’’ in this document, it should be noted that the Taiwan Relations Act of 1979, Public Law 96–8, Section 4(b)(1), provides that ‘‘[w]henever the laws of the United States refer or relate to foreign countries, nations, states, governments, or similar entities, such terms shall include and such laws shall apply with respect to Taiwan.’’ 22 U.S.C. 3303(b)(1). Accordingly, all references to ‘‘country’’ or ‘‘countries’’ in the regulations governing whether nationals of a country are eligible for H–2 program participation, 8 CFR 214.2(h)(5)(i)(F)(1)(i) and 8 CFR 214.2(h)(6)(i)(E)(1), are read to include Taiwan. This is consistent with the United States’ one-China policy, under which the United States has maintained unofficial relations with Taiwan since 1979. E:\FR\FM\18JAN1.SGM 18JAN1

Agencies

[Federal Register Volume 83, Number 12 (Thursday, January 18, 2018)]
[Notices]
[Pages 2645-2646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00802]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Modification of the National Customs Automation Program (NCAP) 
Test Regarding Reconciliation and Transition of the Test From the 
Automated Commercial System (ACS) to the Automated Commercial 
Environment (ACE)

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

ACTION: General notice.

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

SUMMARY: This document announces that certain previously announced 
modifications to the National Customs Automation Program (NCAP) test 
regarding reconciliation will become operational, and that the test 
program will transition from the Automated Commercial System (ACS) to 
the Automated Commercial Environment (ACE).

DATES: As of February 24, 2018, the modifications to the reconciliation 
test will become operational. As of the same date, the test will 
transition into ACE, and ACS will be decommissioned for the filing of 
reconciliation entries.

ADDRESSES: Comments concerning this test program may be submitted via 
email, with a subject line identifier reading, ``Comment on 
Reconciliation test'' to [email protected].

FOR FURTHER INFORMATION CONTACT: Randy Mitchell, Commercial Operations 
and Entry Division, Trade Policy and Programs, Office of Trade at (202) 
863-6532 or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

A. Reconciliation Test Program

    Title VI of the North American Free Trade Agreement (NAFTA) 
Implementation Act (Pub. L. 103-182, 107 Stat. 2057, 2170, December 8, 
1993), commonly known as the Customs Modernization Act or Mod Act, 
amended the Tariff Act of 1930 and related laws, in part, to increase 
voluntary compliance with customs laws and improvements to customs 
enforcement. Subtitle B of Title VI established the National Customs 
Automation Program (NCAP) which is an automated and electronic system 
for processing commercial importations, and includes the testing of 
existing and planned components. (19 U.S.C. 1411). Section 637 of the 
Mod Act amended Section 484 of the Tariff Act of 1930 to establish a 
new section (b), entitled ``Reconciliation'', a planned component of 
the NCAP. (19 U.S.C. 1484(b), 19 U.S.C. 1411(a)(2)(C)).
    Reconciliation is the process that allows an importer, at the time 
an entry summary is filed, to identify indeterminable information 
(other than that affecting admissibility) to U.S. Customs and Border 
Protection (CBP) and to provide that outstanding information at a later 
date. The importer identifies the outstanding information by means of 
an electronic ``flag'' which is placed on the entry summary at the time 
the entry summary is filed and payment (applicable duty, taxes, and 
fees) is made.
    Section 101.9(b) of Title 19 of the Code of Federal Regulations (19 
CFR 101.9(b)) provides for the testing of NCAP components. See T.D. 95-
21, 60 FR 14211 (March 16, 1995). The reconciliation test was 
established pursuant to this regulation, and is currently being tested 
in the Automated Commercial System (ACS). CBP announced and explained 
the test in a general notice published in the Federal Register (63 FR 
6257) on February 6, 1998. Clarifications and operational changes were 
announced in subsequent Federal Register notices: 63 FR 44303 (August 
18, 1998); 64 FR 39187 (July 21, 1999); 64 FR 73121 (December 29, 
1999); 66 FR 14619 (March 13, 2001); 67 FR 61200 (September 27, 2002) 
(with a correction document published at 67 FR 68238 (November 8, 
2002)); 69 FR 53730 (September 2, 2004); 70 FR 1730 (January 10, 2005); 
70 FR 46882 (August 11, 2005); 71 FR 37596 (June 30, 2006); 78 FR 27984 
(May 13, 2013); and 79 FR 34334 (June 16, 2014). On September 13, 2000, 
CBP extended the test indefinitely in a notice published in the Federal 
Register (65 FR 55326).

B. Transition to the Automated Commercial Environment

    The Security and Accountability for Every (SAFE) Port Act of 2006 
(Pub. L. 109-347, 120 Stat. 1884) modified the Mod Act and added 
subsection (d) to 19 U.S.C. 1411. This subsection established the 
International Trade Data System (ITDS) which allows for the collection 
and distribution of standard import and export data required by CBP 
through a single portal system. The Automated

[[Page 2646]]

Commercial Environment (ACE), the ``single window,'' 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 all of its communities of interest. The ability to meet 
these objectives depends on successfully modernizing CBP's business 
functions and the information technology that supports those functions.
    Over the last several years, CBP has tested ACE and provided 
significant public outreach to ensure that the trade community is fully 
aware of the transition from ACS to ACE. On October 13, 2015, CBP 
published an Interim Final Rule in the Federal Register (80 FR 61278) 
that designated ACE as a CBP-authorized EDI system, to be effective 
November 1, 2015. In the Interim Final Rule, CBP stated that ACS would 
be phased out and anticipated that ACS would no longer be supported for 
entry and entry summary filing. Filers were encouraged to adjust their 
business practices so that they would be prepared when ACS was 
decommissioned.
    CBP has developed a staggered transition strategy for 
decommissioning ACS to give the trade additional time to adjust their 
business practices. The phases of the transition were announced in 
several Federal Register notices. See 81 FR 10264 (February 29, 2016); 
81 FR 30320 (May 16, 2016); 81 FR 32339 (May 23, 2016); 82 FR 38924 
(August 16, 2017); and 82 FR 51852 (November 8, 2017). This notice 
announces a further transition as CBP is transitioning the 
reconciliation test from ACS to ACE.

C. Modifications of the Reconciliation Test

    On December 12, 2016, CBP published a notice in the Federal 
Register (81 FR 89486) announcing modifications to the reconciliation 
test and the transition of the test from ACS to ACE, effective January 
14, 2017. On January 17, 2017, CBP published a notice in the Federal 
Register (82 FR 4901) announcing that the effective date for the test 
modifications and transition would be delayed indefinitely. Then, on 
June 8, 2017, CBP published a notice in the Federal Register (82 FR 
26699) announcing that the modifications to the test and the transition 
would be effective on July 8, 2017. Subsequently, on June 30, 2017, CBP 
published a notice in the Federal Register (82 FR 29910) announcing 
that the effective date for the modifications to the reconciliation 
test and for mandatory filing of reconciliation entries in ACE had been 
delayed until further notice.

II. Announcement of Reconciliation Test Transitioning Into ACE and 
Modifications to Test Becoming Operational

    This notice announces that, beginning February 24, 2018, all 
reconciliation entries must be filed in ACE regardless of whether the 
underlying entry was filed in ACS or ACE and regardless of whether it 
is a replacement, substitution or follow-up to a reconciliation entry 
originally filed in ACS, and ACS is decommissioned for the filing of 
such entries. In addition, as of February 24, 2018, the test 
modifications announced in the December 12, 2016 notice will become 
operational.

    Dated: January 12, 2018.
Brenda B. Smith,
Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2018-00802 Filed 1-17-18; 8:45 am]
 BILLING CODE 9111-14-P