Modifications to the Section 321 Data Pilot, 67279-67281 [2019-26445]
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Federal Register / Vol. 84, No. 236 / Monday, December 9, 2019 / Notices
Kootenai Tribe of Idaho, 77 FR 4822
(January 31, 2012); the Seneca Nation of
Indians, 80 FR 40076 (July 13, 2015); the
Hydaburg Cooperative Association of
Alaska, 81 FR 33686 (May 27, 2016);
and the Pokagon Band of Potawatomi
Indians, 82 FR 42351 (September 7,
2017).
Puyallup Tribe of Indians WHTICompliant Native American Tribal Card
Program
khammond on DSKJM1Z7X2PROD with NOTICES
The Puyallup Tribe of Indians
(Puyallup Tribe) has voluntarily
established a program to develop a
WHTI-compliant Native American tribal
card that denotes identity and U.S. or
Canadian citizenship. On July 10, 2015,
CBP and the Puyallup Tribe entered into
a Memorandum of Agreement (MOA) to
develop, issue, test, and evaluate tribal
cards to be used for border crossing
purposes. Pursuant to this MOA, the
cards are issued to members of the
Puyallup Tribe who can establish
identity, tribal membership, and U.S. or
Canadian citizenship. The cards
incorporate physical security features
acceptable to CBP as well as facilitative
technology allowing for electronic
validation of identity, citizenship, and
tribal membership by CBP.4
CBP has tested the cards developed by
the Puyallup Tribe pursuant to the
above MOA and related agreements, and
has performed an audit of the tribe’s
card program. On the basis of these tests
and audit, CBP has determined that the
Native American tribal cards meet the
requirements of section 7209 of the
IRTPA and are acceptable documents to
denote identity and citizenship for
purposes of entering the United States at
land and sea ports of entry from
contiguous territory or adjacent
islands.5 CBP’s continued acceptance of
4 In 2017, CBP and the Puyallup Tribe entered
into additional agreements related to the MOA. CBP
and the Puyallup Tribe entered into a Service Level
Agreement (SLA) on May 4, 2017, concerning
technical requirements and support for the
production, issuance, and verification of the Native
American Tribal Cards. CBP and the Puyallup Tribe
also entered into an Interconnection Security
Agreement on July 28, 2017, with respect to
individual and organizational security
responsibilities for the protection and handling of
unclassified information.
5 The Native American tribal card issued by the
Puyallup Tribe may not, by itself, be used by
Canadian citizen tribal members to establish that
they meet the requirements of section 289 of the
Immigration and Nationality Act (INA) [8 U.S.C.
1359]. INA § 289 provides that nothing in this title
shall be construed to affect the right of American
Indians born in Canada to pass the borders of the
United States, but such right shall extend only to
persons who possess at least 50 per centum of blood
of the American Indian race. While the tribal card
may be used to establish a card holder’s identity for
purposes of INA § 289, it cannot, by itself, serve as
evidence of the card holder’s Canadian birth or that
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the Native American tribal cards as a
WHTI-compliant document is
conditional on compliance with the
MOA and related agreements.
Acceptance and use of the WHTIcompliant Native American tribal cards
is voluntary for tribe members. If an
individual is denied a WHTI-compliant
Native American tribal card, he or she
may still apply for a passport or other
WHTI-compliant document.
Designation
This notice announces that the
Commissioner of CBP designates the
Native American tribal card issued by
the Puyallup Tribe in accordance with
the MOA and all related agreements
between the tribe and CBP as an
acceptable WHTI-compliant document
pursuant to section 7209 of the IRTPA
and 8 CFR 235.1(e). In accordance with
these provisions, the approved card, if
valid and lawfully obtained, may be
used to denote identity and U.S. or
Canadian citizenship of Puyallup Tribe
members for the purposes of entering
the United States from contiguous
territory or adjacent islands at land and
sea ports of entry.
Dated: December 2, 2019.
Mark A. Morgan,
Acting Commissioner, U.S. Customs and
Border Protection.
[FR Doc. 2019–26444 Filed 12–6–19; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs & Border Protection
Modifications to the Section 321 Data
Pilot
U.S. Customs and Border
Protection, DHS.
ACTION: General notice.
AGENCY:
On July 23, 2019, U.S.
Customs and Border Protection (CBP)
published a general notice in the
Federal Register (84 FR 35405)
announcing the Section 321 Data Pilot,
a voluntary pilot in which participants
agree to electronically transmit certain
advance data elements related to de
minimis value shipments potentially
eligible for release under section 321 of
the Tariff Act of 1930, as amended. The
purpose of the pilot is to improve CBP’s
ability to effectively and efficiently
identify and target high-risk shipments,
including for narcotics, counterproliferation, and health and safety
risks, in the e-commerce environment.
SUMMARY:
he or she possesses at least 50% American Indian
blood, as required by INA § 289.
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67279
This notice announces that CBP is
modifying the Section 321 Data Pilot to
include shipments arriving by ocean
and to include international mail
shipments. This notice also modifies the
provisions governing misconduct under
the pilot and extends the duration of the
pilot an additional twelve months
(through August 2021).
DATES: The voluntary pilot began on
August 22, 2019, and will run for a total
of approximately 24 months, through
August 2021. CBP will accept
applications from prospective pilot
participants at any time until CBP has
identified a sufficient number of eligible
participants. At this time, the pilot is
limited to a maximum of nine
participants.
ADDRESSES: Prospective pilot
participants should submit an email to
e-commercesmallbusinessbranch@
cbp.dhs.gov. In the subject line of your
email please indicate ‘‘Application for
Section 321 Data Pilot.’’ For information
on what to include in the email, see
section II.D (Application Process and
Acceptance) of the notice published in
the Federal Register on July 23, 2019
(84 FR 35405).
FOR FURTHER INFORMATION CONTACT:
Laurie Dempsey, Director, IPR & ECommerce Division at
laurie.b.dempsey@cbp.dhs.gov or 202–
615–0514 and Daniel Randall, Branch
Chief, Manifest & Conveyance Security
at 202–344–3282.
SUPPLEMENTARY INFORMATION:
I. Section 321 Data Pilot
On July 23, 2019, CBP published a
general notice in the Federal Register
(84 FR 35405) (hereafter referred to as
the July 2019 notice) announcing the
voluntary Section 321 Data Pilot.
Participants in the Section 321 Data
Pilot agree to electronically transmit
certain data elements related to de
minimis value shipments potentially
eligible for release under section 321 of
the Tariff Act of 1930, as amended
(‘‘section 321 shipments’’). Section 321
provides for an administrative
exemption from duty and taxes for
shipments of merchandise imported by
one person on one day having an
aggregate fair retail value in the country
of shipment of an amount specified by
the Secretary by regulation, but not less
than $800. The July 2019 notice
provided a description of the Section
321 Data Pilot, the eligibility
requirements, and the application
process for participation.
The Section 321 Data Pilot is intended
to improve CBP’s ability to effectively
and efficiently assess the security risks
of shipments potentially eligible for
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67280
Federal Register / Vol. 84, No. 236 / Monday, December 9, 2019 / Notices
release under section 321 of the Tariff
Act of 1930, as amended (19 U.S.C.
1321(a)(2)(C)). The Section 321 Data
Pilot tests the feasibility of collecting
data elements, beyond those currently
required by regulations, and of
collecting data from non-traditional
entities, such as online marketplaces.
The July 2019 notice stated that the
pilot would initially be limited to 9
participants and invited participation
from all stakeholders in the e-commerce
environment, including carriers,
brokers, freight forwarders, and online
marketplaces. Pilot participants agree to
electronically transmit certain advance
data elements to CBP regarding section
321 shipments arriving by air, truck, or
rail. CBP excluded from the scope of the
pilot shipments arriving by ocean, mail
shipments covered by 19 CFR part 145,
and shipments destined for a Foreign
Trade Zone. CBP uses the advance
information transmitted through the
pilot to identify and target high-risk
shipments, including for narcotics,
counter-proliferation, and health and
safety risks. The results of the Section
321 Data Pilot will help CBP determine
whether additional mandatory advance
reporting requirements are necessary in
the e-commerce environment.
khammond on DSKJM1Z7X2PROD with NOTICES
II. Modifications to the Section 321
Data Pilot
This notice announces that CBP is
modifying the Section 321 Data Pilot to
include shipments arriving by ocean
and international mail shipments. This
document also modifies the provisions
governing misconduct under the pilot
and extends the duration of the pilot an
additional twelve months.
A. Expansions of the Section 321 Data
Pilot To Include Shipments Arriving by
Ocean
In the July 2019 notice, CBP stated
that the pilot applied to section 321
shipments arriving in the United States
by air, truck, or rail. CBP is now
expanding the pilot to include
shipments arriving by ocean.
As described in detail in the July 2019
notice, CBP receives certain advance
electronic data for shipments arriving in
the United States by ocean. For
example, regulations promulgated
pursuant to the Trade Act of 2002 (Pub.
L. 107–210, 116 Stat. 933 (Aug. 6, 2002))
require ocean carriers to transmit for
each shipment the shipper’s name and
address, the consignee name and
address, a description of the cargo,
including the cargo’s quantity and
weight, and information regarding the
vessel’s voyage, including carrier code,
date of arrival, and point of origin. See
19 CFR 4.7a. Additionally, regulations
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17:22 Dec 06, 2019
Jkt 250001
promulgated pursuant to the Security
and Accountability for Every Port Act of
2006 (Pub. L. 109–347, 120 Stat. 1884,
October 13, 2006 (SAFE Port Act))
require importers and carriers to submit
additional data before the cargo is
brought to the United States. See 19 CFR
part 149 (Importer Security Filing or ISF
regulations). The data required by the
ISF regulations include name and
address of the seller, buyer, and
manufacturer or supplier, the consignee
identifying number, the ship to party
(the first deliver-to-party scheduled to
receive goods after the goods have been
released from custody), country of
origin, Harmonized Tariff Schedule of
the United States (HTSUS) number,
container stuffing location, and the
name and address of the consolidator.
19 CFR 149.3(a).
These existing regulatory
requirements do not provide CBP with
the information necessary to effectively
and efficiently assess the security risks
of section 321 shipments arriving by
ocean. This is because they generally
apply to carriers and importers, who
may not possess all of the relevant
information relating to an e-commerce
shipment’s supply chain. In addition,
the required information does not
always adequately identify the entity
causing the shipment to cross the
border, the final recipient, or the
contents of the package. For instance,
under the ISF regulations, an importer
may list a domestic deconsolidator as
the ‘‘ship to party’’. There is no specific
requirement to identify the final
recipient of the shipment in the United
States. This hinders CBP’s ability to
effectively target or identify high-risk
shipments and CBP officers must use
additional time and resources to inspect
section 321 shipments. Expansion of the
Section 321 Data Pilot to include
shipments arriving by ocean will enable
CBP to more effectively target or
identify high-risk shipments by
requiring additional data elements
related to such shipments.
Such expansion will also enable CBP
to test the feasibility of collecting
advance data from typically nonregulated entities utilizing ocean
transportation. It will also enable CBP to
collect data regarding additional
relevant shipments. Based on the initial
operation of the pilot, CBP has learned
that many e-commerce entities utilize
all modes of transportation and that
excluding ocean shipments from the
pilot would exclude a substantial
number of relevant shipments of
potential participants. By expanding the
scope of the pilot to include all modes
of shipment (air, rail, truck, and ocean),
the results of the pilot will be more
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relevant to possible future regulatory
effects, trade facilitation benefits, or
other initiatives in the e-commerce
environment as a whole. For these
reasons, CBP is expanding the Section
321 Data Pilot to include shipments
arriving in the United States by ocean.
B. Expansion of the Section 321 Data
Pilot To Include International Mail
Shipments
The July 2019 notice stated that the
Section 321 Data Pilot would not apply
to mail shipments covered by 19 CFR
part 145. Part 145 applies to mail
importations that are subject to Customs
examination. CBP has determined that
excluding these mail shipments from
the pilot decreases CBP’s ability to
develop strategies for section 321
shipments as a whole because it is
common in the e-commerce
environment for entities to use
international mail to ship section 321
shipments. CBP has also learned
through the initial operation of the pilot
that excluding international mail
shipments may impose an additional
burden on pilot participants because
they would need to separate data
relating to mail shipments from data
relating to other section 321 shipments.
Accordingly, CBP is expanding the
pilot to include section 321 shipments
covered by 19 CFR part 145.1
(Shipments destined for a Foreign Trade
Zone continue to be excluded from the
scope of the pilot.)
C. New Misconduct Section
The July 2019 notice included a
section VI, entitled ‘‘Misconduct Under
the Pilot’’, which described the
penalties CBP may impose on pilot
participants for misconduct and the
applicable procedures. CBP is revising
the section VI language to clarify that
those pilot participants who are unable
to provide data elements contemplated
by this test will not be subject to civil
or criminal penalties, administrative
sanctions, or liquidated damages solely
for such inability. However, the revised
language clarifies that test participants
who repeatedly provide false, inaccurate
or misleading data will be subject, at
CBP’s discretion, to civil and criminal
penalties, administrative sanctions,
liquidated damages or removal from
participation. Additionally, the revised
1 Under current regulations, there is no
requirement to submit advance electronic data to
CBP for mail shipments. However, section 8003 of
the Synthetics Trafficking and Overdose Prevention
Act of 2018 (Pub. L. 115–271, 123 Stat. 4073) (STOP
Act of 2018), requires CBP to issue regulations
requiring the U.S. Postal Service to transmit certain
advance electronic data to CBP for international
mail shipments. CBP is in the process of drafting
those regulations.
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Federal Register / Vol. 84, No. 236 / Monday, December 9, 2019 / Notices
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language clarifies that CBP may
immediately remove a participant from
the pilot for the repeated failure to
provide data or the repeated submission
of false, inaccurate or misleading data.
CBP is also replacing the phrase
‘‘discontinuance from participation’’
with ‘‘removal from participation’’ for
clarity. The language below replaces in
full the misconduct section in the July
2019 notice and reads as follows:
VI. Misconduct Under the Pilot
A pilot participant may be subject to
civil and criminal penalties,
administrative sanctions, liquidated
damages, or removal from participation
in the Section 321 Data Pilot for any of
the following:
(1) Failure to follow the rules, terms,
and conditions of this pilot;
(2) Failure to exercise reasonable care
in the execution of participant
obligations; or
(3) Failure to abide by applicable laws
and regulations.
Test participants who are unable to
provide data elements contemplated by
this test will not be subject to civil and
criminal penalties, administrative
sanctions, or liquidated damages solely
for such inability. Test participants who
repeatedly provide false, inaccurate or
misleading data will be subject, at CBP’s
discretion, to civil and criminal
penalties, administrative sanctions,
liquidated damages or removal from
participation.
If the Director, Intellectual Property
Rights and E-Commerce Division, Office
of Trade, finds that there is a basis for
removal of pilot participation privileges,
the pilot participant will be provided a
written notice proposing the removal
with a description of the facts or
conduct warranting the action. The pilot
participant will be offered the
opportunity to appeal the decision in
writing within 10 calendar days of
receipt of the written notice. The appeal
of this determination must be submitted
to the Executive Director, Trade Policy
and Programs, Office of Trade, by
emailing
e-commercesmallbusinessbranch@
cbp.dhs.gov.
The Executive Director, Trade Policy
and Programs, Office of Trade, will
issue a decision in writing on the
proposed action within 30 working days
after receiving a timely filed appeal
from the pilot participant. If no timely
appeal is received, the proposed notice
becomes the final decision of the
Agency as of the date that the appeal
period expires. A proposed removal of
a pilot participant’s privileges will not
take effect unless the appeal process
under this paragraph has been
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17:22 Dec 06, 2019
Jkt 250001
concluded with a written decision
adverse to the pilot participant.
In cases of willfulness, the repeated
failure to provide data, the repeated
submission of false, inaccurate or
misleading data, or those in which
public health, interest, or safety so
requires, the Director, Intellectual
Property Rights and E-Commerce
Division, Office of Trade, may
immediately remove the pilot
participant’s privileges upon written
notice to the pilot participant. The
notice will contain a description of the
facts or conduct warranting the
immediate action. The pilot participant
will be offered the opportunity to appeal
the decision within 10 calendar days of
receipt of the written notice providing
for immediate removal from
participation. The appeal of this
determination must be submitted to the
Executive Director, Trade Policy and
Programs, Office of Trade, by emailing
ecommercesmallbusinessbranch@
cbp.dhs.gov.
The immediate removal will remain
in effect during the appeal period. The
Executive Director, Trade Policy and
Programs, Office of Trade, will issue a
decision in writing on the removal
within 15 working days after receiving
a timely filed appeal from the pilot
participant. If no timely appeal is
received, the notice becomes the final
decision of the Agency as of the date
that the appeal period expires.
D. Twelve Month Extension
The Section 321 Data Pilot was
originally intended to run for
approximately one year. CBP is
extending the pilot to run an additional
twelve months, through August 2021.
The additional time is necessary in
order for pilot participants to modify
their communication systems in order to
execute the provisions of the pilot and
for CBP to collect a sufficient amount of
data from the participants.
Subject to the amendments herein, all
other provisions of the July 2019 notice,
except for section ‘‘VI. Misconduct
Under the Pilot,’’ remain applicable to
the Section 321 Data Pilot. CBP
reiterates that it is not waiving any
regulations for purposes of the pilot. All
of the existing regulations, including the
Trade Act of 2002 requirements and the
ISF regulations described above,
continue to apply to pilot participants.
Dated: December 4, 2019.
Robert E. Perez,
Deputy Commissioner, U.S. Customs and
Border Protection.
[FR Doc. 2019–26445 Filed 12–6–19; 8:45 am]
BILLING CODE 9111–14–P
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67281
DEPARTMENT OF HOMELAND
SECURITY
Federal Emergency Management
Agency
[Docket ID FEMA–2019–0002]
Changes in Flood Hazard
Determinations
Federal Emergency
Management Agency, DHS.
ACTION: Notice.
AGENCY:
New or modified Base (1percent annual chance) Flood
Elevations (BFEs), base flood depths,
Special Flood Hazard Area (SFHA)
boundaries or zone designations, and/or
regulatory floodways (hereinafter
referred to as flood hazard
determinations) as shown on the
indicated Letter of Map Revision
(LOMR) for each of the communities
listed in the table below are finalized.
Each LOMR revises the Flood Insurance
Rate Maps (FIRMs), and in some cases
the Flood Insurance Study (FIS) reports,
currently in effect for the listed
communities. The flood hazard
determinations modified by each LOMR
will be used to calculate flood insurance
premium rates for new buildings and
their contents.
DATES: Each LOMR was finalized as in
the table below.
ADDRESSES: Each LOMR is available for
inspection at both the respective
Community Map Repository address
listed in the table below and online
through the FEMA Map Service Center
at https://msc.fema.gov.
FOR FURTHER INFORMATION CONTACT: Rick
Sacbibit, Chief, Engineering Services
Branch, Federal Insurance and
Mitigation Administration, FEMA, 400
C Street SW, Washington, DC 20472,
(202) 646–7659, or (email)
patrick.sacbibit@fema.dhs.gov; or visit
the FEMA Map Information eXchange
(FMIX) online at https://
www.floodmaps.fema.gov/fhm/fmx_
main.html.
SUPPLEMENTARY INFORMATION: The
Federal Emergency Management Agency
(FEMA) makes the final flood hazard
determinations as shown in the LOMRs
for each community listed in the table
below. Notice of these modified flood
hazard determinations has been
published in newspapers of local
circulation and 90 days have elapsed
since that publication. The Deputy
Associate Administrator for Insurance
and Mitigation has resolved any appeals
resulting from this notification.
The modified flood hazard
determinations are made pursuant to
SUMMARY:
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]]>Agencies
- DEPARTMENT OF HOMELAND SECURITY
- U.S. Customs & Border Protection
[Federal Register Volume 84, Number 236 (Monday, December 9, 2019)]
[Notices]
[Pages 67279-67281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26445]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs & Border Protection
Modifications to the Section 321 Data Pilot
AGENCY: U.S. Customs and Border Protection, DHS.
ACTION: General notice.
-----------------------------------------------------------------------
SUMMARY: On July 23, 2019, U.S. Customs and Border Protection (CBP)
published a general notice in the Federal Register (84 FR 35405)
announcing the Section 321 Data Pilot, a voluntary pilot in which
participants agree to electronically transmit certain advance data
elements related to de minimis value shipments potentially eligible for
release under section 321 of the Tariff Act of 1930, as amended. The
purpose of the pilot is to improve CBP's ability to effectively and
efficiently identify and target high-risk shipments, including for
narcotics, counter-proliferation, and health and safety risks, in the
e-commerce environment. This notice announces that CBP is modifying the
Section 321 Data Pilot to include shipments arriving by ocean and to
include international mail shipments. This notice also modifies the
provisions governing misconduct under the pilot and extends the
duration of the pilot an additional twelve months (through August
2021).
DATES: The voluntary pilot began on August 22, 2019, and will run for a
total of approximately 24 months, through August 2021. CBP will accept
applications from prospective pilot participants at any time until CBP
has identified a sufficient number of eligible participants. At this
time, the pilot is limited to a maximum of nine participants.
ADDRESSES: Prospective pilot participants should submit an email to [email protected]. In the subject line of your
email please indicate ``Application for Section 321 Data Pilot.'' For
information on what to include in the email, see section II.D
(Application Process and Acceptance) of the notice published in the
Federal Register on July 23, 2019 (84 FR 35405).
FOR FURTHER INFORMATION CONTACT: Laurie Dempsey, Director, IPR & E-
Commerce Division at [email protected] or 202-615-0514 and
Daniel Randall, Branch Chief, Manifest & Conveyance Security at 202-
344-3282.
SUPPLEMENTARY INFORMATION:
I. Section 321 Data Pilot
On July 23, 2019, CBP published a general notice in the Federal
Register (84 FR 35405) (hereafter referred to as the July 2019 notice)
announcing the voluntary Section 321 Data Pilot. Participants in the
Section 321 Data Pilot agree to electronically transmit certain data
elements related to de minimis value shipments potentially eligible for
release under section 321 of the Tariff Act of 1930, as amended
(``section 321 shipments''). Section 321 provides for an administrative
exemption from duty and taxes for shipments of merchandise imported by
one person on one day having an aggregate fair retail value in the
country of shipment of an amount specified by the Secretary by
regulation, but not less than $800. The July 2019 notice provided a
description of the Section 321 Data Pilot, the eligibility
requirements, and the application process for participation.
The Section 321 Data Pilot is intended to improve CBP's ability to
effectively and efficiently assess the security risks of shipments
potentially eligible for
[[Page 67280]]
release under section 321 of the Tariff Act of 1930, as amended (19
U.S.C. 1321(a)(2)(C)). The Section 321 Data Pilot tests the feasibility
of collecting data elements, beyond those currently required by
regulations, and of collecting data from non-traditional entities, such
as online marketplaces. The July 2019 notice stated that the pilot
would initially be limited to 9 participants and invited participation
from all stakeholders in the e-commerce environment, including
carriers, brokers, freight forwarders, and online marketplaces. Pilot
participants agree to electronically transmit certain advance data
elements to CBP regarding section 321 shipments arriving by air, truck,
or rail. CBP excluded from the scope of the pilot shipments arriving by
ocean, mail shipments covered by 19 CFR part 145, and shipments
destined for a Foreign Trade Zone. CBP uses the advance information
transmitted through the pilot to identify and target high-risk
shipments, including for narcotics, counter-proliferation, and health
and safety risks. The results of the Section 321 Data Pilot will help
CBP determine whether additional mandatory advance reporting
requirements are necessary in the e-commerce environment.
II. Modifications to the Section 321 Data Pilot
This notice announces that CBP is modifying the Section 321 Data
Pilot to include shipments arriving by ocean and international mail
shipments. This document also modifies the provisions governing
misconduct under the pilot and extends the duration of the pilot an
additional twelve months.
A. Expansions of the Section 321 Data Pilot To Include Shipments
Arriving by Ocean
In the July 2019 notice, CBP stated that the pilot applied to
section 321 shipments arriving in the United States by air, truck, or
rail. CBP is now expanding the pilot to include shipments arriving by
ocean.
As described in detail in the July 2019 notice, CBP receives
certain advance electronic data for shipments arriving in the United
States by ocean. For example, regulations promulgated pursuant to the
Trade Act of 2002 (Pub. L. 107-210, 116 Stat. 933 (Aug. 6, 2002))
require ocean carriers to transmit for each shipment the shipper's name
and address, the consignee name and address, a description of the
cargo, including the cargo's quantity and weight, and information
regarding the vessel's voyage, including carrier code, date of arrival,
and point of origin. See 19 CFR 4.7a. Additionally, regulations
promulgated pursuant to the Security and Accountability for Every Port
Act of 2006 (Pub. L. 109-347, 120 Stat. 1884, October 13, 2006 (SAFE
Port Act)) require importers and carriers to submit additional data
before the cargo is brought to the United States. See 19 CFR part 149
(Importer Security Filing or ISF regulations). The data required by the
ISF regulations include name and address of the seller, buyer, and
manufacturer or supplier, the consignee identifying number, the ship to
party (the first deliver-to-party scheduled to receive goods after the
goods have been released from custody), country of origin, Harmonized
Tariff Schedule of the United States (HTSUS) number, container stuffing
location, and the name and address of the consolidator. 19 CFR
149.3(a).
These existing regulatory requirements do not provide CBP with the
information necessary to effectively and efficiently assess the
security risks of section 321 shipments arriving by ocean. This is
because they generally apply to carriers and importers, who may not
possess all of the relevant information relating to an e-commerce
shipment's supply chain. In addition, the required information does not
always adequately identify the entity causing the shipment to cross the
border, the final recipient, or the contents of the package. For
instance, under the ISF regulations, an importer may list a domestic
deconsolidator as the ``ship to party''. There is no specific
requirement to identify the final recipient of the shipment in the
United States. This hinders CBP's ability to effectively target or
identify high-risk shipments and CBP officers must use additional time
and resources to inspect section 321 shipments. Expansion of the
Section 321 Data Pilot to include shipments arriving by ocean will
enable CBP to more effectively target or identify high-risk shipments
by requiring additional data elements related to such shipments.
Such expansion will also enable CBP to test the feasibility of
collecting advance data from typically non-regulated entities utilizing
ocean transportation. It will also enable CBP to collect data regarding
additional relevant shipments. Based on the initial operation of the
pilot, CBP has learned that many e-commerce entities utilize all modes
of transportation and that excluding ocean shipments from the pilot
would exclude a substantial number of relevant shipments of potential
participants. By expanding the scope of the pilot to include all modes
of shipment (air, rail, truck, and ocean), the results of the pilot
will be more relevant to possible future regulatory effects, trade
facilitation benefits, or other initiatives in the e-commerce
environment as a whole. For these reasons, CBP is expanding the Section
321 Data Pilot to include shipments arriving in the United States by
ocean.
B. Expansion of the Section 321 Data Pilot To Include International
Mail Shipments
The July 2019 notice stated that the Section 321 Data Pilot would
not apply to mail shipments covered by 19 CFR part 145. Part 145
applies to mail importations that are subject to Customs examination.
CBP has determined that excluding these mail shipments from the pilot
decreases CBP's ability to develop strategies for section 321 shipments
as a whole because it is common in the e-commerce environment for
entities to use international mail to ship section 321 shipments. CBP
has also learned through the initial operation of the pilot that
excluding international mail shipments may impose an additional burden
on pilot participants because they would need to separate data relating
to mail shipments from data relating to other section 321 shipments.
Accordingly, CBP is expanding the pilot to include section 321
shipments covered by 19 CFR part 145.\1\ (Shipments destined for a
Foreign Trade Zone continue to be excluded from the scope of the
pilot.)
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\1\ Under current regulations, there is no requirement to submit
advance electronic data to CBP for mail shipments. However, section
8003 of the Synthetics Trafficking and Overdose Prevention Act of
2018 (Pub. L. 115-271, 123 Stat. 4073) (STOP Act of 2018), requires
CBP to issue regulations requiring the U.S. Postal Service to
transmit certain advance electronic data to CBP for international
mail shipments. CBP is in the process of drafting those regulations.
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C. New Misconduct Section
The July 2019 notice included a section VI, entitled ``Misconduct
Under the Pilot'', which described the penalties CBP may impose on
pilot participants for misconduct and the applicable procedures. CBP is
revising the section VI language to clarify that those pilot
participants who are unable to provide data elements contemplated by
this test will not be subject to civil or criminal penalties,
administrative sanctions, or liquidated damages solely for such
inability. However, the revised language clarifies that test
participants who repeatedly provide false, inaccurate or misleading
data will be subject, at CBP's discretion, to civil and criminal
penalties, administrative sanctions, liquidated damages or removal from
participation. Additionally, the revised
[[Page 67281]]
language clarifies that CBP may immediately remove a participant from
the pilot for the repeated failure to provide data or the repeated
submission of false, inaccurate or misleading data. CBP is also
replacing the phrase ``discontinuance from participation'' with
``removal from participation'' for clarity. The language below replaces
in full the misconduct section in the July 2019 notice and reads as
follows:
VI. Misconduct Under the Pilot
A pilot participant may be subject to civil and criminal penalties,
administrative sanctions, liquidated damages, or removal from
participation in the Section 321 Data Pilot for any of the following:
(1) Failure to follow the rules, terms, and conditions of this
pilot;
(2) Failure to exercise reasonable care in the execution of
participant obligations; or
(3) Failure to abide by applicable laws and regulations.
Test participants who are unable to provide data elements
contemplated by this test will not be subject to civil and criminal
penalties, administrative sanctions, or liquidated damages solely for
such inability. Test participants who repeatedly provide false,
inaccurate or misleading data will be subject, at CBP's discretion, to
civil and criminal penalties, administrative sanctions, liquidated
damages or removal from participation.
If the Director, Intellectual Property Rights and E-Commerce
Division, Office of Trade, finds that there is a basis for removal of
pilot participation privileges, the pilot participant will be provided
a written notice proposing the removal with a description of the facts
or conduct warranting the action. The pilot participant will be offered
the opportunity to appeal the decision in writing within 10 calendar
days of receipt of the written notice. The appeal of this determination
must be submitted to the Executive Director, Trade Policy and Programs,
Office of Trade, by emailing [email protected].
The Executive Director, Trade Policy and Programs, Office of Trade,
will issue a decision in writing on the proposed action within 30
working days after receiving a timely filed appeal from the pilot
participant. If no timely appeal is received, the proposed notice
becomes the final decision of the Agency as of the date that the appeal
period expires. A proposed removal of a pilot participant's privileges
will not take effect unless the appeal process under this paragraph has
been concluded with a written decision adverse to the pilot
participant.
In cases of willfulness, the repeated failure to provide data, the
repeated submission of false, inaccurate or misleading data, or those
in which public health, interest, or safety so requires, the Director,
Intellectual Property Rights and E-Commerce Division, Office of Trade,
may immediately remove the pilot participant's privileges upon written
notice to the pilot participant. The notice will contain a description
of the facts or conduct warranting the immediate action. The pilot
participant will be offered the opportunity to appeal the decision
within 10 calendar days of receipt of the written notice providing for
immediate removal from participation. The appeal of this determination
must be submitted to the Executive Director, Trade Policy and Programs,
Office of Trade, by emailing [email protected].
The immediate removal will remain in effect during the appeal
period. The Executive Director, Trade Policy and Programs, Office of
Trade, will issue a decision in writing on the removal within 15
working days after receiving a timely filed appeal from the pilot
participant. If no timely appeal is received, the notice becomes the
final decision of the Agency as of the date that the appeal period
expires.
D. Twelve Month Extension
The Section 321 Data Pilot was originally intended to run for
approximately one year. CBP is extending the pilot to run an additional
twelve months, through August 2021. The additional time is necessary in
order for pilot participants to modify their communication systems in
order to execute the provisions of the pilot and for CBP to collect a
sufficient amount of data from the participants.
Subject to the amendments herein, all other provisions of the July
2019 notice, except for section ``VI. Misconduct Under the Pilot,''
remain applicable to the Section 321 Data Pilot. CBP reiterates that it
is not waiving any regulations for purposes of the pilot. All of the
existing regulations, including the Trade Act of 2002 requirements and
the ISF regulations described above, continue to apply to pilot
participants.
Dated: December 4, 2019.
Robert E. Perez,
Deputy Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2019-26445 Filed 12-6-19; 8:45 am]
BILLING CODE 9111-14-P
