Modifications to the Section 321 Data Pilot, 67279-67281 [2019-26445]

Download as PDF 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 VerDate Sep<11>2014 17:22 Dec 06, 2019 Jkt 250001 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. PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 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 E:\FR\FM\09DEN1.SGM 09DEN1 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 VerDate Sep<11>2014 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 PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 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. E:\FR\FM\09DEN1.SGM 09DEN1 Federal Register / Vol. 84, No. 236 / Monday, December 9, 2019 / Notices khammond on DSKJM1Z7X2PROD with NOTICES 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 VerDate Sep<11>2014 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 PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 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: E:\FR\FM\09DEN1.SGM 09DEN1

Agencies

[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.)
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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