Modification of the National Customs Automation Program (NCAP) Test Regarding Reconciliation for Filing Post-Importation Claims Arising Under the Agreement Between the United States of America, the United Mexican States, and Canada (USMCA), 39576-39579 [2020-14200]
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Federal Register / Vol. 85, No. 127 / Wednesday, July 1, 2020 / Notices
be collected; and (4) suggestions to
minimize the burden of the collection of
information on those who are to
respond, including through the use of
appropriate automated, electronic,
mechanical, or other technological
collection techniques or other forms of
information technology, e.g., permitting
electronic submission of responses. The
comments that are submitted will be
summarized and included in the request
for approval. All comments will become
a matter of public record.
Overview of This Information
Collection
Title: Bonded Warehouse Proprietor’s
Submission.
OMB Number: 1651–0033.
Form number: CBP Form 300.
Current Actions: CBP proposes to
extend the expiration date of this
information collection with an increase
in the burden hours. There is no change
to the information collected or CBP
Form 300.
Type of Review: Extension (without
change).
Affected Public: Businesses.
Abstract: CBP Form 300, The Bonded
Warehouse Proprietor’s Submission, is
prepared annually by each warehouse
proprietor, as mandated under 19 CFR
19.12 (g). The information on CBP Form
300 is used by CBP to evaluate
warehouse activity for the year. This
form must be completed within 45 days
from the end of his business year,
pursuant to the provisions of the Tariff
Act of 1930, as amended, 19 U.S.C. 66,
1311, 1555, 1556, 1557, 1623 and 19
CFR 19.12. The information collected on
this form helps CBP determine all
bonded merchandise that was entered,
released, and manipulated in the
warehouse. CBP Form 300 is accessible
at https://www.cbp.gov/document/
forms/form-300-bonded-warehouseproprietors-submission.
Estimated Number of Respondents:
1,980.
Estimated Number of Annual
Responses per Respondent: 1.
Estimated Number of Total Annual
Responses: 1,980.
Estimated Time per Response: 10
hours.
Estimated Total Annual Burden
Hours: 19,800.
Dated: June 26, 2020.
Seth D. Renkema,
Branch Chief, Economic Impact Analysis
Branch, U.S. Customs and Border Protection.
[FR Doc. 2020–14158 Filed 6–30–20; 8:45 am]
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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 for Filing
Post-Importation Claims Arising Under
the Agreement Between the United
States of America, the United Mexican
States, and Canada (USMCA)
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: General notice.
AGENCY:
This document announces a
modification to the Automated
Commercial Environment (ACE)
National Customs Automation Program
(NCAP) reconciliation prototype test to
include the flagging for filing of postimportation preferential treatment
claims arising under the Agreement
Between the United States of America,
the United Mexican States, and Canada
(the USMCA) as implemented pursuant
to the United States-Mexico-Canada
Agreement Implementation Act (the
USMCA Act). Importers may file
USMCA post-importation claims for
refunds of certain duties assessed on
merchandise that both qualifies for
preferential tariff treatment under the
USMCA and was entered for
consumption, or withdrawn from
warehouse for consumption, on or after
July 1, 2020. Unless and until the
USMCA Act is subsequently amended,
refunds for merchandise processing fees
(MPF) are excluded from USMCA postimportation claims. Except to the extent
expressly announced or modified by
this document, all aspects, rules, terms
and conditions announced in previously
published Federal Register notices
regarding the test remain in effect.
DATES: The test is modified to allow
reconciliation of post-importation
preferential tariff treatment claims to be
filed on or after July 1, 2020, for refunds
of certain duties assessed on
merchandise that both qualifies for
preferential tariff treatment under the
USMCA and was entered for
consumption, or withdrawn from
warehouse for consumption, on or after
July 1, 2020.
ADDRESSES: Comments concerning the
reconciliation prototype test may be
submitted via email to Randy Mitchell,
Director, Commercial Operations,
Revenue & Entry (CORE) Division,
Office of Trade, U.S. Customs and
Border Protection at OT-Reconfolder@
cbp.dhs.gov, with a subject line
SUMMARY:
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identifier reading, ‘‘Modification of
Reconciliation Test-USMCA’’.
FOR FURTHER INFORMATION CONTACT: For
policy-related questions, contact Randy
Mitchell, Director, Commercial
Operations, Revenue & Entry (CORE)
Division, Office of Trade, U.S. Customs
and Border Protection, at (202) 325–
6532 or via email at OTReconFolder@
cbp.dhs.gov, with a subject line
identifier reading ‘‘Modification of
Reconciliation Test-USMCA’’. For
technical questions related to ACE or
Automated Broker Interface (ABI)
transmissions, contact your assigned
client representative. Interested parties
without an assigned client
representative should direct their
questions to Tonya Perez, Director,
Client Services Division, Office of
Trade, U.S. Customs and Border
Protection, at (571) 421–7477 or via
email at gmb.clientrepoutreach@
cbp.dhs.gov.
SUPPLEMENTARY INFORMATION:
Background
This document announces a
modification to U.S. Customs and
Border Protection’s (CBP’s) Automated
Commercial Environment (ACE)
reconciliation prototype test (hereinafter
‘‘reconciliation test’’) by adding the
processing of post-importation claims
arising under the United States-MexicoCanada Agreement Implementation Act
(the USMCA Act), Public Law 116–113,
134 Stat. 11 (January 29, 2020) (19
U.S.C. chapter 29), to permit an
importer, who did not claim preferential
tariff treatment at the time of
importation, to file a claim, at any time
within one year after the date of
importation of qualifying merchandise,
to receive a refund of certain excess
duties paid on that merchandise at the
time of importation. As is further
explained below, although the USMCA
eliminates the assessment of the
merchandise processing fee (MPF) on
qualifying goods from Canada and
Mexico, the USMCA Act excluded the
refund of MPF under 19 U.S.C. 1520(d)
post-importation claims for USMCA
preferential treatment.
Purpose of the Reconciliation Test
Reconciliation, a planned component
of the National Customs Automation
Program (NCAP), is provided for in Title
VI (Subtitle B) of the North American
Free Trade Agreement Implementation
Act (the NAFTA Implementation Act;
Pub. L. 103–182, 107 Stat. 2057
(December 8, 1993)) (19 U.S.C. 1411).
Section 637 of the Customs
Modernization Act amended section 484
of the Tariff Act of 1930 to establish a
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new section (b), entitled
‘‘Reconciliation’’, and a planned
component of the NCAP. (19 U.S.C.
1484(b)). 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 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 of the
applicable estimated duties is
deposited.
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 NCAP
reconciliation test was announced in a
general notice document 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); and 71 FR 37596 (June 30,
2006). On September 13, 2000, CBP
extended the test indefinitely in a notice
published in the Federal Register (65
FR 55326). On July 23, 2016, the NCAP
test regarding reconciliation
transitioned from the Automated
Commercial System (ACS) to ACE. (83
FR 2645). This document announces a
modification to the reconciliation test to
expand reconciliation to include postimportation preferential tariff treatment
claims arising under the USMCA Act,
which is permitted under 19 U.S.C.
1520(d). Aside from this modification,
the test remains as set forth in the
previously published Federal Register
notices.
Reconciliation Generally
Reconciliation is the process that
allows an importer, at the time an entry
summary is filed, to identify
undeterminable information (other than
that affecting admissibility) to 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 of the
applicable estimated duties is
deposited.
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The flagged entry summary (the
underlying entry summary) is liquidated
by CBP for all aspects of the entry
except those issues that were flagged.
Upon liquidation of an underlying entry
summary, any decision by CBP entering
into that liquidation, e.g., classification,
may be protested pursuant to 19 U.S.C.
1514. The means of providing the
outstanding information flagged on the
underlying entry summary to be
reconciled is through the filing of a
reconciliation entry. A reconciliation
entry is treated as an entry for purposes
of liquidation, reliquidation, and
protest.
When the outstanding information,
e.g., value as determined by the actual
costs, is later furnished in the
reconciliation entry, CBP will liquidate
the reconciliation entry as to the flagged
issues. Any adjustments in duties owed
will be made at that time. (See February
6, 1998 Federal Register notice (63 FR
6257) for a more detailed presentation of
the basic reconciliation process.) The
liquidation of the reconciliation entry
will be posted in the same manner and
place as the notices of liquidation of
other entries. Liquidation of a
reconciliation entry may be protested
pursuant to 19 U.S.C. 1514, but the
protest may only pertain to the issue(s)
flagged for and contained in the
reconciliation entry (i.e., the protest
may not address issues previously
liquidated on the underlying entry
summary).
Previously published Federal Register
notices have set forth that the issues for
which an entry summary may be
‘‘flagged’’ (for the purpose of later
reconciliation) are limited and relate to:
(1) Value issues other than claims based
on latent manufacturing defects; (2)
classification issues, on a limited basis;
(3) issues concerning value aspects of
entries filed under heading 9802,
Harmonized Tariff Schedule of the
United States (HTSUS) (9802 issues);
and (4) issues concerning postimportation claims, under 19 U.S.C.
1520(d), for preferential tariff treatment
for merchandise entered under the acts
implementing the North American Free
Trade Agreement (NAFTA), the United
States-Chile Free Trade Agreement, the
Dominican Republic-Central AmericaUnited States Free Trade Agreement, the
United States-Oman Free Trade
Agreement, the United States-Peru
Trade Promotion Agreement, the United
States-Korea Free Trade Agreement, the
United States-Colombia Trade
Promotion Agreement, and the United
States-Panama Trade Promotion
Agreement.
The filing of a reconciliation entry,
like the filing of a regular consumption
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entry, is governed by 19 U.S.C. 1484 and
can be done only by an importer of
record, who is required to exercise
reasonable care in filing the underlying
entry summary, flagging issues for later
reconciliation, and filing the
reconciliation entry. Importers are also
reminded of the distinction between
prior disclosure and reconciliation. A
prior disclosure exists when a person
discloses the circumstances of a
violation of 19 U.S.C. 1592 pursuant to
CBP regulations. The person disclosing
this information must do so before, or
without knowledge of, the
commencement of a formal
investigation of that violation. Under
reconciliation, the importer is not
disclosing a violation, but rather
identifying information which is
indeterminable and will be provided at
a later time when the reconciliation
entry is filed.
Modification of the Reconciliation Test
The Agreement Between the United
States of America, the United Mexican
States, and Canada (the USMCA) was
entered into by the governments of the
United States of America (United
States), the United Mexican States
(Mexico), and Canada on November 30,
2018. The USMCA was signed on
December 10, 2019, and ratified by all
three countries, with final ratification
on April 24, 2020. The USMCA covers
all merchandise entered for
consumption, or withdrawn from
warehouse for consumption, on or after
July 1, 2020.
Section 103 of the USMCA Act
authorizes the President to proclaim the
tariff modifications and to promulgate
the regulations for preferential tariff
treatment and other customs related
provisions of the USMCA. This notice
announces that a post-importation claim
under 19 U.S.C. 1520(d) for preferential
tariff treatment pursuant to the USMCA
may be made under the reconciliation
test, but without a refund of
merchandise processing fees (MPF) at
this time.
1. Use of Current FTA Flag for USMCA
Post-Importation Claims
Importers that file an entry for
USMCA preferential treatment under
the reconciliation test must use the
existing Free Trade Agreement (FTA)
flag, as authorized in this notice.
Section 205(a) of the USMCA Act
provides for the reliquidation of entries.
The USMCA Act repealed the NAFTA
Implementation Act. Section 205(a) of
the USMCA Act amends section 520(d)
of the Tariff Act of 1930 (19 U.S.C.
1520(d)) by removing the reference to
‘‘section 202 North American Free
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Trade Agreement Implementation Act’’
and replacing it with ‘‘section 202 of the
United States-Mexico-Canada
Agreement Implementation Act (except
with respect to any merchandise
processing fees)’’. Additionally, Section
205(a) amends the certification of origin
requirement in 19 U.S.C. 1520(d) by
removing ‘‘(2) copies of all applicable
NAFTA Certificates of Origin (as
defined in section 1508(b)(1) of this
title), or other certificates or
certifications of origin, as the case may
be; and’’ and replacing it with ‘‘(2)
copies of all applicable certificates or
certifications of origin; and’’.
Accordingly, Section 205 of the USMCA
Act effectively replaces reliquidation of
entries under NAFTA with the
reliquidation of entries under the
USMCA, eliminates the refund of MPF
under USMCA post-importation
preferential treatment claims, and
replaces the requirement to submit a
NAFTA certificate of origin with the
requirement to submit any applicable
certificate or certification of origin as
part of a post-importation preferential
treatment claim (as discussed in Section
204 of the USMCA Act). Consistent with
Section 205 of the USMCA Act, the
importer must make a post-importation
preference claim pursuant to 19 U.S.C.
1520(d), within one year from the date
of importation. Post-importation claims
for reconciliation are made
electronically in ACE and must include
the following:
(1) A declaration stating that the good
qualified as an originating good at the
time of importation and the number and
date of the entry or entries covering the
good (this is provided as part of the
electronic submission of the claim
containing the special program indicator
for the USMCA);
(2) A statement indicating whether
the entry summary or equivalent
documentation was provided to any
other person; and
(3) A statement indicating whether a
protest, petition, or request for reliquidation has been filed relating to the
good and identification of such filing(s).
Claims for preferential treatment
under the USMCA may be made as of
July 1, 2020. CBP is publishing an
interim final rule (IFR) in the Federal
Register (CBP Dec. 20–11) amending
part 181 and adding a new part 182
containing several USMCA provisions,
including an appendix that contains the
trilaterally negotiated and agreed upon
Uniform Regulations Regarding the
Interpretation, Application, and
Administration of Chapter 4 (Rules of
Origin) and Related Provisions in
Chapter 6 (Textile and Apparel Goods)
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(Uniform Regulations regarding rules of
origin) (Appendix A to part 182).
In addition to the IFR, persons
intending to make USMCA preference
claims as of July 1, 2020, may refer to
the CBP website at https://www.cbp.gov/
trade/priority-issues/trade-agreements/
free-trade-agreements/USMCA for
further guidance (including the U.S.
USMCA Implementing Instructions).
The United States International Trade
Commission has also modified the
HTSUS to add a new General Note 11,
incorporating the USMCA rules of
origin for claiming preferential
treatment and providing for the special
program indicators ‘‘S or S+’’ for the
USMCA in the HTSUS ‘‘special’’ rate of
duty subcolumn.1 For ACE, please note
that CBP will update the information on
USMCA post-importation claims
submitted via reconciliation in the
Reconciliation Entry Summary Create/
Update chapter of the CBP and Trade
Automated Interface Requirements
(CATAIR) posted on https://
www.cbp.gov/trade/ace/catair.
2. Entry Into Force of USMCA and
Import Eligibility for Reconciliation
Section 205(a) of the USMCA Act
further provides that these amendments
(replacement of NAFTA preference from
19 U.S.C. 1520(d) with USMCA
preference) will take place on the date
on which the USMCA enters into force
on July 1, 2020. Therefore, importers
may file USMCA post-importation
claims for refunds of certain duties
assessed on merchandise that both
qualifies for preferential tariff treatment
under the USMCA and was entered for
consumption, or withdrawn from
warehouse for consumption, on or after
July 1, 2020.
This notice does not modify the
current reconciliation test, which waive
the requirement to file a certification of
origin for post-importation claims,
under 19 U.S.C. 1520(d), for preferential
tariff treatment for merchandise
qualifying under the other agreements
covered by the FTA flag. For
reconciliation entries making a postimportation claim, under 19 U.S.C.
1520(d), for preferential tariff treatment
for qualifying merchandise entered
under the USMCA, a certification of
origin is not required to be presented at
the time of filing the reconciliation
entry, but must be in the importer’s
possession at that time and must be
presented if requested by CBP. The
failure to present the certification of
origin when requested by CBP may
result in the denial of the post1 The S+ indicator is used for certain agricultural
goods and textile tariff preference levels (TPLs).
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importation claim for preferential tariff
treatment under the USMCA, the
reliquidation of the reconciliation entry,
and/or administrative and judicial
sanctions including, but not limited to,
liquidated damages and recordkeeping
or other penalties and may be
considered misconduct under the rules,
terms and conditions of this test.
Importers filing a reconciliation entry
making a USMCA post-importation
claim for preferential tariff treatment for
a covered vehicle, as defined in the
Appendix to Annex 4–B of Chapter 4 of
the USMCA, are reminded that the
following certifications must be filed
with CBP in order to receive preferential
tariff treatment: (1) A certification
providing that the labor value content
requirements are met; and, (2) a
certification that the steel and
aluminum content requirements are
met. These certifications are not filed
with the reconciliation entry, but would
be separately submitted; and, this notice
does not waive any requirements related
to these certifications for purposes of
the reconciliation test.
3. Transition From NAFTA TreatmentReliquidation
Section 205 provides for a transition
from NAFTA treatment. Consistent with
this section, the amendments to 19
U.S.C. 1520(d), as discussed above, do
not apply in the case of a good entered
for consumption, or withdrawn from
warehouse for consumption, before the
date in which the USMCA enters into
force, which is July 1, 2020. This section
further provides that the section
1520(d), as it is in effect (on June 30,
2020) will apply, and shall continue to
apply on or after that date with respect
to the good. Therefore, importers may
submit post-importation claims for
NAFTA preference only for those goods
entered for consumption, or withdrawn
from warehouse for consumption, prior
to July 1, 2020. Since importers may file
post-importation claims at any time
within one year after the date of
importation, no post-importation claims
for NAFTA preference will be accepted
after June 30, 2021.
4. Ineligibility for Post-Importation
Refunds of Merchandise Processing Fees
Section 203 of the USMCA Act, which
amends Section 13031(b)(10) of the
Omnibus Budget Reconciliation Act of
1985 (19 U.S.C. 58c(b)(10)), eliminates
the refund of merchandise processing
fees (MPF) for USMCA post-importation
claims. That section also disallows the
use of the Customs User Fee Account to
refund MPF. Accordingly, not only are
refunds of MPF not allowed, but there
is also no mechanism available for CBP
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to refund MPF for goods that qualify for
preferential treatment under the
USMCA. Importers may, however, wish
to flag USMCA entries for the possibility
of MPF refunds for a post-importation
USMCA claim, as CBP will provide for
refunds consistent with any legislative
changes to 19 U.S.C. 1520(d). Importers
are reminded that FTA reconciliation
entries must be filed within 12 months
of the earliest import date and that the
FTA flag expires after 12 months.
Remove HCP permit number
TE34898D for the Pueblo of Santa Clara;
no permit has been issued.
Remove permits with numbers
TE33765D (VALERO PARTNERS
WYNNEWOOD, LLC) and TE113500
(BASTROP COUNTY; MR. PAUL PAPE)
from the table. Both are duplicate
entries of other issued permits.
All other items in the original notice
(April 30, 2020; 85 FR 23992) are correct
as printed.
Dated: June 26, 2020.
Brenda B. Smith,
Executive Assistant Commissioner, Office of
Trade.
Gary Frazer,
Assistant Director for Ecological Services.
[FR Doc. 2020–14200 Filed 6–30–20; 8:45 am]
[FR Doc. 2020–14188 Filed 6–30–20; 8:45 am]
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BILLING CODE 9111–14–P
DEPARTMENT OF THE INTERIOR
DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
Fish and Wildlife Service
[201A2100DD/AAKC001030/
A0A501010.999900 253G; OMB Control
Number 1076–0017]
[FWS–HQ–ES–2020–N085; FF09E42000 189
FXES11130900000]
Endangered and Threatened Species;
Issuance of Enhancement of Survival
and Incidental Take Permits for Safe
Harbor Agreements, Candidate
Conservation Agreements, Habitat
Conservation Plans, and Recovery
Activities, January 1, 2019, Through
December 31, 2019; Correction
Fish and Wildlife Service,
Interior.
ACTION: Notice; correction.
AGENCY:
We, the U.S. Fish and
Wildlife Service, published a document
in the April 30, 2020, Federal Register
that provided a list of permits issued
under the Endangered Species Act. We
inadvertently made unsubstantive
errors, which we correct via this notice.
FOR FURTHER INFORMATION CONTACT:
Amanda Murnane, via phone at 703–
358–2469,viaemailatAmanda_
Murnane@fws.gov,or via the Federal
Relay Service at 800–877–8339.
SUPPLEMENTARY INFORMATION: We, the
U.S. Fish and Wildlife Service,
published a document in the April 30,
2020, Federal Register that provided a
list of permits we issued under the
Endangered Species Act for Candidate
Conservation Agreements with
Assurances, Safe Harbor Agreements,
Habitat Conservation Plans (HCPs), and
Recovery Permits for calendar year
2019. We inadvertently made an error,
which we correct via this notice.
Corrections
In FR Doc. 2020–09176, appearing at
85 FR 23992 in the issue of Thursday,
April 30, 2020, make the following three
corrections in the table on page 23994:
01:53 Jul 01, 2020
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Bureau of Indian Affairs,
Interior.
ACTION: Notice of information collection;
request for comment.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995, we,
the Bureau of Indian Affairs (BIA) are
proposing to renew an information
collection with revisions.
DATES: Interested persons are invited to
submit comments on or before July 31,
2020.
ADDRESSES: Send written comments on
this information collection request (ICR)
to the Office of Management and
Budget’s Desk Officer for the
Department of the Interior by email at
OIRA_Submission@omb.eop.gov; or via
facsimile to (202) 395–5806. Please
provide a copy of your comments to Ms.
Evangeline Campbell, Chief, Division of
Human Services, Office of Indian
Services, Bureau of Indian Affairs, 1849
C Street NW, MS–4513–MIB,
Washington, DC 20240; facsimile: (202)
208–5113; email: Evangline.Campbell@
bia.gov. Please reference OMB Control
Number 1076–0017 in the subject line of
your comments.
FOR FURTHER INFORMATION CONTACT: To
request additional information about
this ICR, contact Ms. Evangeline M.
Campbell by telephone at (202) 513–
7621.
You may also view the ICR at https://
www.reginfo.gov/public/do/PRAMain.
SUMMARY:
SUMMARY:
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Agency Information Collection
Activities; Submission to the Office of
Management and Budget for Review
and Approval; Financial Assistance
and Social Services
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In
accordance with the Paperwork
Reduction Act of 1995, we provide the
general public and other Federal
agencies with an opportunity to
comment on new, proposed, revised,
and continuing collections of
information. This helps us assess the
impact of our information collection
requirements and minimize the public’s
reporting burden. It also helps the
public understand our information
collection requirements and provide the
requested data in the desired format.
A Federal Register notice with a 60day public comment period soliciting
comments on this collection of
information was published on March
24, 2020 (85 FR 16651). No comments
were received.
We are soliciting comments on the
proposed ICR that is described below.
We are especially interested in public
comment addressing the following
issues: (1) Is the collection necessary to
the proper functions of the BIA; (2) will
this information be processed and used
in a timely manner; (3) is the estimate
of burden accurate; (4) how might the
BIA enhance the quality, utility, and
clarity of the information to be
collected; and (5) how might the BIA
minimize the burden of this collection
on the respondents, including through
the use of information technology.
Comments that you submit in
response to this notice are a matter of
public record. Before including your
address, phone number, email address,
or other personal identifying
information in your comment, you
should be aware that your entire
comment—including your personal
identifying information—may be made
publicly available at any time. While
you can ask us in your comment to
withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
Abstract: The BIA is seeking to renew
the information collection it conducts to
provide assistance under 25 CFR part 20
to eligible Indians when comparable
financial assistance or social services
either are not available or not provided
by State, Tribal, county, local, or other
Federal agencies. The information
collection allows BIA to determine
whether an individual is eligible for
assistance and services. No third party
notification or public disclosure burden
is associated with this collection.
Title of Collection: Financial
Assistance and Social Services Program.
OMB Control Number: 1076–0017.
Form Number: N/A.
Type of Review: Revision of a
currently approved collection.
SUPPLEMENTARY INFORMATION:
E:\FR\FM\01JYN1.SGM
01JYN1
]]>Agencies
[Federal Register Volume 85, Number 127 (Wednesday, July 1, 2020)]
[Notices]
[Pages 39576-39579]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14200]
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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 for Filing Post-Importation Claims
Arising Under the Agreement Between the United States of America, the
United Mexican States, and Canada (USMCA)
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: General notice.
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SUMMARY: This document announces a modification to the Automated
Commercial Environment (ACE) National Customs Automation Program (NCAP)
reconciliation prototype test to include the flagging for filing of
post-importation preferential treatment claims arising under the
Agreement Between the United States of America, the United Mexican
States, and Canada (the USMCA) as implemented pursuant to the United
States-Mexico-Canada Agreement Implementation Act (the USMCA Act).
Importers may file USMCA post-importation claims for refunds of certain
duties assessed on merchandise that both qualifies for preferential
tariff treatment under the USMCA and was entered for consumption, or
withdrawn from warehouse for consumption, on or after July 1, 2020.
Unless and until the USMCA Act is subsequently amended, refunds for
merchandise processing fees (MPF) are excluded from USMCA post-
importation claims. Except to the extent expressly announced or
modified by this document, all aspects, rules, terms and conditions
announced in previously published Federal Register notices regarding
the test remain in effect.
DATES: The test is modified to allow reconciliation of post-importation
preferential tariff treatment claims to be filed on or after July 1,
2020, for refunds of certain duties assessed on merchandise that both
qualifies for preferential tariff treatment under the USMCA and was
entered for consumption, or withdrawn from warehouse for consumption,
on or after July 1, 2020.
ADDRESSES: Comments concerning the reconciliation prototype test may be
submitted via email to Randy Mitchell, Director, Commercial Operations,
Revenue & Entry (CORE) Division, Office of Trade, U.S. Customs and
Border Protection at [email protected]hs.gov, with a subject line
identifier reading, ``Modification of Reconciliation Test-USMCA''.
FOR FURTHER INFORMATION CONTACT: For policy-related questions, contact
Randy Mitchell, Director, Commercial Operations, Revenue & Entry (CORE)
Division, Office of Trade, U.S. Customs and Border Protection, at (202)
325-6532 or via email at [email protected], with a subject line
identifier reading ``Modification of Reconciliation Test-USMCA''. For
technical questions related to ACE or Automated Broker Interface (ABI)
transmissions, contact your assigned client representative. Interested
parties without an assigned client representative should direct their
questions to Tonya Perez, Director, Client Services Division, Office of
Trade, U.S. Customs and Border Protection, at (571) 421-7477 or via
email at [email protected].
SUPPLEMENTARY INFORMATION:
Background
This document announces a modification to U.S. Customs and Border
Protection's (CBP's) Automated Commercial Environment (ACE)
reconciliation prototype test (hereinafter ``reconciliation test'') by
adding the processing of post-importation claims arising under the
United States-Mexico-Canada Agreement Implementation Act (the USMCA
Act), Public Law 116-113, 134 Stat. 11 (January 29, 2020) (19 U.S.C.
chapter 29), to permit an importer, who did not claim preferential
tariff treatment at the time of importation, to file a claim, at any
time within one year after the date of importation of qualifying
merchandise, to receive a refund of certain excess duties paid on that
merchandise at the time of importation. As is further explained below,
although the USMCA eliminates the assessment of the merchandise
processing fee (MPF) on qualifying goods from Canada and Mexico, the
USMCA Act excluded the refund of MPF under 19 U.S.C. 1520(d) post-
importation claims for USMCA preferential treatment.
Purpose of the Reconciliation Test
Reconciliation, a planned component of the National Customs
Automation Program (NCAP), is provided for in Title VI (Subtitle B) of
the North American Free Trade Agreement Implementation Act (the NAFTA
Implementation Act; Pub. L. 103-182, 107 Stat. 2057 (December 8, 1993))
(19 U.S.C. 1411).
Section 637 of the Customs Modernization Act amended section 484 of
the Tariff Act of 1930 to establish a
[[Page 39577]]
new section (b), entitled ``Reconciliation'', and a planned component
of the NCAP. (19 U.S.C. 1484(b)). 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
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 of the applicable estimated
duties is deposited.
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 NCAP reconciliation test was
announced in a general notice document 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); and 71 FR 37596
(June 30, 2006). On September 13, 2000, CBP extended the test
indefinitely in a notice published in the Federal Register (65 FR
55326). On July 23, 2016, the NCAP test regarding reconciliation
transitioned from the Automated Commercial System (ACS) to ACE. (83 FR
2645). This document announces a modification to the reconciliation
test to expand reconciliation to include post-importation preferential
tariff treatment claims arising under the USMCA Act, which is permitted
under 19 U.S.C. 1520(d). Aside from this modification, the test remains
as set forth in the previously published Federal Register notices.
Reconciliation Generally
Reconciliation is the process that allows an importer, at the time
an entry summary is filed, to identify undeterminable information
(other than that affecting admissibility) to 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 of the applicable estimated duties is deposited.
The flagged entry summary (the underlying entry summary) is
liquidated by CBP for all aspects of the entry except those issues that
were flagged. Upon liquidation of an underlying entry summary, any
decision by CBP entering into that liquidation, e.g., classification,
may be protested pursuant to 19 U.S.C. 1514. The means of providing the
outstanding information flagged on the underlying entry summary to be
reconciled is through the filing of a reconciliation entry. A
reconciliation entry is treated as an entry for purposes of
liquidation, reliquidation, and protest.
When the outstanding information, e.g., value as determined by the
actual costs, is later furnished in the reconciliation entry, CBP will
liquidate the reconciliation entry as to the flagged issues. Any
adjustments in duties owed will be made at that time. (See February 6,
1998 Federal Register notice (63 FR 6257) for a more detailed
presentation of the basic reconciliation process.) The liquidation of
the reconciliation entry will be posted in the same manner and place as
the notices of liquidation of other entries. Liquidation of a
reconciliation entry may be protested pursuant to 19 U.S.C. 1514, but
the protest may only pertain to the issue(s) flagged for and contained
in the reconciliation entry (i.e., the protest may not address issues
previously liquidated on the underlying entry summary).
Previously published Federal Register notices have set forth that
the issues for which an entry summary may be ``flagged'' (for the
purpose of later reconciliation) are limited and relate to: (1) Value
issues other than claims based on latent manufacturing defects; (2)
classification issues, on a limited basis; (3) issues concerning value
aspects of entries filed under heading 9802, Harmonized Tariff Schedule
of the United States (HTSUS) (9802 issues); and (4) issues concerning
post-importation claims, under 19 U.S.C. 1520(d), for preferential
tariff treatment for merchandise entered under the acts implementing
the North American Free Trade Agreement (NAFTA), the United States-
Chile Free Trade Agreement, the Dominican Republic-Central America-
United States Free Trade Agreement, the United States-Oman Free Trade
Agreement, the United States-Peru Trade Promotion Agreement, the United
States-Korea Free Trade Agreement, the United States-Colombia Trade
Promotion Agreement, and the United States-Panama Trade Promotion
Agreement.
The filing of a reconciliation entry, like the filing of a regular
consumption entry, is governed by 19 U.S.C. 1484 and can be done only
by an importer of record, who is required to exercise reasonable care
in filing the underlying entry summary, flagging issues for later
reconciliation, and filing the reconciliation entry. Importers are also
reminded of the distinction between prior disclosure and
reconciliation. A prior disclosure exists when a person discloses the
circumstances of a violation of 19 U.S.C. 1592 pursuant to CBP
regulations. The person disclosing this information must do so before,
or without knowledge of, the commencement of a formal investigation of
that violation. Under reconciliation, the importer is not disclosing a
violation, but rather identifying information which is indeterminable
and will be provided at a later time when the reconciliation entry is
filed.
Modification of the Reconciliation Test
The Agreement Between the United States of America, the United
Mexican States, and Canada (the USMCA) was entered into by the
governments of the United States of America (United States), the United
Mexican States (Mexico), and Canada on November 30, 2018. The USMCA was
signed on December 10, 2019, and ratified by all three countries, with
final ratification on April 24, 2020. The USMCA covers all merchandise
entered for consumption, or withdrawn from warehouse for consumption,
on or after July 1, 2020.
Section 103 of the USMCA Act authorizes the President to proclaim
the tariff modifications and to promulgate the regulations for
preferential tariff treatment and other customs related provisions of
the USMCA. This notice announces that a post-importation claim under 19
U.S.C. 1520(d) for preferential tariff treatment pursuant to the USMCA
may be made under the reconciliation test, but without a refund of
merchandise processing fees (MPF) at this time.
1. Use of Current FTA Flag for USMCA Post-Importation Claims
Importers that file an entry for USMCA preferential treatment under
the reconciliation test must use the existing Free Trade Agreement
(FTA) flag, as authorized in this notice.
Section 205(a) of the USMCA Act provides for the reliquidation of
entries. The USMCA Act repealed the NAFTA Implementation Act. Section
205(a) of the USMCA Act amends section 520(d) of the Tariff Act of 1930
(19 U.S.C. 1520(d)) by removing the reference to ``section 202 North
American Free
[[Page 39578]]
Trade Agreement Implementation Act'' and replacing it with ``section
202 of the United States-Mexico-Canada Agreement Implementation Act
(except with respect to any merchandise processing fees)''.
Additionally, Section 205(a) amends the certification of origin
requirement in 19 U.S.C. 1520(d) by removing ``(2) copies of all
applicable NAFTA Certificates of Origin (as defined in section
1508(b)(1) of this title), or other certificates or certifications of
origin, as the case may be; and'' and replacing it with ``(2) copies of
all applicable certificates or certifications of origin; and''.
Accordingly, Section 205 of the USMCA Act effectively replaces
reliquidation of entries under NAFTA with the reliquidation of entries
under the USMCA, eliminates the refund of MPF under USMCA post-
importation preferential treatment claims, and replaces the requirement
to submit a NAFTA certificate of origin with the requirement to submit
any applicable certificate or certification of origin as part of a
post-importation preferential treatment claim (as discussed in Section
204 of the USMCA Act). Consistent with Section 205 of the USMCA Act,
the importer must make a post-importation preference claim pursuant to
19 U.S.C. 1520(d), within one year from the date of importation. Post-
importation claims for reconciliation are made electronically in ACE
and must include the following:
(1) A declaration stating that the good qualified as an originating
good at the time of importation and the number and date of the entry or
entries covering the good (this is provided as part of the electronic
submission of the claim containing the special program indicator for
the USMCA);
(2) A statement indicating whether the entry summary or equivalent
documentation was provided to any other person; and
(3) A statement indicating whether a protest, petition, or request
for re-liquidation has been filed relating to the good and
identification of such filing(s).
Claims for preferential treatment under the USMCA may be made as of
July 1, 2020. CBP is publishing an interim final rule (IFR) in the
Federal Register (CBP Dec. 20-11) amending part 181 and adding a new
part 182 containing several USMCA provisions, including an appendix
that contains the trilaterally negotiated and agreed upon Uniform
Regulations Regarding the Interpretation, Application, and
Administration of Chapter 4 (Rules of Origin) and Related Provisions in
Chapter 6 (Textile and Apparel Goods) (Uniform Regulations regarding
rules of origin) (Appendix A to part 182).
In addition to the IFR, persons intending to make USMCA preference
claims as of July 1, 2020, may refer to the CBP website at https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA for further guidance (including the U.S. USMCA
Implementing Instructions). The United States International Trade
Commission has also modified the HTSUS to add a new General Note 11,
incorporating the USMCA rules of origin for claiming preferential
treatment and providing for the special program indicators ``S or S+''
for the USMCA in the HTSUS ``special'' rate of duty subcolumn.\1\ For
ACE, please note that CBP will update the information on USMCA post-
importation claims submitted via reconciliation in the Reconciliation
Entry Summary Create/Update chapter of the CBP and Trade Automated
Interface Requirements (CATAIR) posted on https://www.cbp.gov/trade/ace/catair.
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\1\ The S+ indicator is used for certain agricultural goods and
textile tariff preference levels (TPLs).
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2. Entry Into Force of USMCA and Import Eligibility for Reconciliation
Section 205(a) of the USMCA Act further provides that these
amendments (replacement of NAFTA preference from 19 U.S.C. 1520(d) with
USMCA preference) will take place on the date on which the USMCA enters
into force on July 1, 2020. Therefore, importers may file USMCA post-
importation claims for refunds of certain duties assessed on
merchandise that both qualifies for preferential tariff treatment under
the USMCA and was entered for consumption, or withdrawn from warehouse
for consumption, on or after July 1, 2020.
This notice does not modify the current reconciliation test, which
waive the requirement to file a certification of origin for post-
importation claims, under 19 U.S.C. 1520(d), for preferential tariff
treatment for merchandise qualifying under the other agreements covered
by the FTA flag. For reconciliation entries making a post-importation
claim, under 19 U.S.C. 1520(d), for preferential tariff treatment for
qualifying merchandise entered under the USMCA, a certification of
origin is not required to be presented at the time of filing the
reconciliation entry, but must be in the importer's possession at that
time and must be presented if requested by CBP. The failure to present
the certification of origin when requested by CBP may result in the
denial of the post-importation claim for preferential tariff treatment
under the USMCA, the reliquidation of the reconciliation entry, and/or
administrative and judicial sanctions including, but not limited to,
liquidated damages and recordkeeping or other penalties and may be
considered misconduct under the rules, terms and conditions of this
test.
Importers filing a reconciliation entry making a USMCA post-
importation claim for preferential tariff treatment for a covered
vehicle, as defined in the Appendix to Annex 4-B of Chapter 4 of the
USMCA, are reminded that the following certifications must be filed
with CBP in order to receive preferential tariff treatment: (1) A
certification providing that the labor value content requirements are
met; and, (2) a certification that the steel and aluminum content
requirements are met. These certifications are not filed with the
reconciliation entry, but would be separately submitted; and, this
notice does not waive any requirements related to these certifications
for purposes of the reconciliation test.
3. Transition From NAFTA Treatment-Reliquidation
Section 205 provides for a transition from NAFTA treatment.
Consistent with this section, the amendments to 19 U.S.C. 1520(d), as
discussed above, do not apply in the case of a good entered for
consumption, or withdrawn from warehouse for consumption, before the
date in which the USMCA enters into force, which is July 1, 2020. This
section further provides that the section 1520(d), as it is in effect
(on June 30, 2020) will apply, and shall continue to apply on or after
that date with respect to the good. Therefore, importers may submit
post-importation claims for NAFTA preference only for those goods
entered for consumption, or withdrawn from warehouse for consumption,
prior to July 1, 2020. Since importers may file post-importation claims
at any time within one year after the date of importation, no post-
importation claims for NAFTA preference will be accepted after June 30,
2021.
4. Ineligibility for Post-Importation Refunds of Merchandise Processing
Fees
Section 203 of the USMCA Act, which amends Section 13031(b)(10) of
the Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)),
eliminates the refund of merchandise processing fees (MPF) for USMCA
post-importation claims. That section also disallows the use of the
Customs User Fee Account to refund MPF. Accordingly, not only are
refunds of MPF not allowed, but there is also no mechanism available
for CBP
[[Page 39579]]
to refund MPF for goods that qualify for preferential treatment under
the USMCA. Importers may, however, wish to flag USMCA entries for the
possibility of MPF refunds for a post-importation USMCA claim, as CBP
will provide for refunds consistent with any legislative changes to 19
U.S.C. 1520(d). Importers are reminded that FTA reconciliation entries
must be filed within 12 months of the earliest import date and that the
FTA flag expires after 12 months.
Dated: June 26, 2020.
Brenda B. Smith,
Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2020-14200 Filed 6-30-20; 8:45 am]
BILLING CODE 9111-14-P
